THE MOST DEFINITIVE RANKING OF INDIA’S TOP LISTED COMPANIES AS THEY MAKE THEIR WAY THROUGH AN UNCERTAIN ENVIRONMENT TO REALISE THE $5-TRILLION ECONOMY DREAM BW REAL KNOWLEDGE PARTNER www.businessworld.in I RNI NO. 39847/81 I 09 MARCH 2024 Rs 200
CM YOGI LAUNCHES MONUMENTAL INVESTMENT DRIVE I n a landmark development, Uttar Pradesh, under the stewardship of Chief Minister Yogi Adityanath, has embarked on a monumental investment initiative exceeding Rs 10 lakh crore, encompassing over 14,000 projects, heralding a new era of economic prosperity and job creation for the state. Chief Minister Yogi Adityanath’s relentless pursuit of eradicating crime and corruption has transformed the state’s landscape, fostering an environment conducive to business and investment. His unwavering commitment to upholding the rule of law has instilled confidence among investors, both domestic and international. Central to this transformative journey has been the state government’s focus on enhancing infrastructure and streamlining administrative procedures to facilitate ease of doing business. The implementation of projects aimed at bolstering connectivity through an extensive network of highways, expressways, and link roads has further augmented Uttar Pradesh’s appeal as an investment destination. The culmination of these efforts was evident during the Global Investors Summit held last year, where Uttar Pradesh received investment pledges amounting to approximately Rs 40 lakh crore. The commencement of these projects marks a significant milestone in the state’s economic trajectory, exemplifying its emergence as a preferred hub for business and investment. Addressing the budget session, Chief Minister Yogi Adityanath underscored Uttar Pradesh’s newfound status as a beacon of economic growth, attributing it to the robust law and order framework, streamlined administrative processes, and transparent policies instituted by his government. He emphasized that a conducive environment for investment, coupled with a clear government vision, has propelled Uttar Pradesh to the forefront of India’s economic landscape.
Under Chief Minister Yogi Adityanath’s leadership, Uttar Pradesh has made remarkable strides in infrastructure development, exemplified by the ongoing construction of 21 airports, the inauguration of the Purvanchal and Bundelkhand Expressways, and the imminent opening of the Gorakhpur Link Expressway. Additionally, ambitious projects such as the Ballia and Chitrakoot Link Expressways are set to further enhance connectivity and spur economic growth across the state. Furthermore, Uttar Pradesh’s economic resurgence under Chief Minister Yogi Adityanath’s leadership is underscored by its transition from a BIMARU state to the second-largest economy in the country. With a contribution of 9.2 percent to the national economy, a doubled per capita income, and the attainment of revenue surplus status, Uttar Pradesh is poised to realize its goal of achieving a one trillion-dollar economy. The success of the [email protected] initiative, which has kickstarted investment projects worth Rs 10 lakh crore, reaffirms Chief Minister Yogi Adityanath’s commitment to positioning Uttar Pradesh as the engine of India’s growth story. The inclusive nature of the initiative ensures equitable distribution of investments across all districts, aligning with the government’s vision of fostering balanced regional development. In a comparative analysis, Chief Minister Yogi Adityanath underscored the shortcomings of previous regimes, emphasizing their failure to deliver on investment promises. Despite ambitious claims made during past investor summits, actual investments were minimal, hindered by concerns over lawlessness, extortion rackets, and communal unrest. In contrast, the present administration has ushered in a transformative era for Uttar Pradesh, marked by tangible investments that fuel unprecedented economic growth and job opportunities.” The surge in investor confidence and the ground breaking investments signify a new dawn for Uttar Pradesh, under the visionary leadership of Chief Minister Yogi Adityanath, as it marches steadfastly towards realizing its full economic potential. l UP is the first state to implement the skill development policy l Skill development of 16.50 lakh youths l First in the e-tendering system in the country l First rank in the country to establish micro and small industries, 96 lakh MSME units operational. l Gold Medal Trophy for ‘Best State in Skill Development’ given to Uttar Pradesh by ASSOCHAM. l UP awarded first prize for the best state for inland fisheries. l The largest railway network of 16000 km in the country l The largest road network of 4 lakh km in the country. l State with the highest number of medical colleges, 65 operational, 22 under construction. l North India’s first hyper scale data center established in Greater Noida Uttar Pradesh No. 1 State
T he Yogi government has transformed Uttar Pradesh into the nation’s economic powerhouse with the launch of the Ground Breaking Ceremony (GBC@4), introducing an impressive array of 14,000 projects valued at over Rs 10 lakh crore. This monumental initiative not only fortified the state’s infrastructure and economy but also endeavored to stem the tide of youth migration by providing abundant job opportunities within Uttar Pradesh itself. With a commitment to empowering its youth, the Yogi government envisages creating employment for more than 34 lakh individuals across various sectors, catering to a diverse range of skills and expertise. From the eastern region of Purvanchal to the western frontier of Paschimanchal, and from the central zone of Madhyanchal to the historic region of Bundelkhand, employment prospects will abound, promising a brighter future for Uttar Pradesh’s burgeoning workforce. Key Highlights of [email protected] Projects: Geographical Distribution: Out of the 14,000 projects, 52 percent are earmarked for Paschimanchal, 29 percent for Purvanchal, 14 percent for Madhyanchal, and 5 percent for Bundelkhand, ensuring equitable distribution of employment opportunities across the state. Investment Spectrum: A diverse range of projects were unfolded, with 23 percent valued at over Rs 10,000 crores, 12 percent between Rs 5,000 to 10,000 crores, and varying scales down to projects less than Rs 20 crores, reflecting a comprehensive approach towards economic development. Sectoral Allocation: Industries such as manufacturing, renewable energy, IT and electronics, power, food processing, real estate, MSME, hospitality, entertainment, waste management, and education were benefitted with each sector playing a pivotal role in job creation and economic growth. Notable Employment Opportunities Several flagship projects injected vitality into Uttar Pradesh’s job market: Torrent Power Limited: Rs 22,800 crores investment in Sonbhadra, facilitating employment for 4,800 individuals. M3M India Private Ltd.: Rs 7,500 crores investment in Gautam Buddh Nagar, generating jobs for 14,000 individuals. Fun Zoo Toys: Rs 1,052 crores investment in Gautam Buddh Nagar, providing employment for a staggering 20,000 youth. Other Major Contributors Addverb Technologies: Rs 500 crore investment in Gautam Buddha Nagar, creating employment for 2000 people. Greenko Group: Investing Rs 17,181 crores in Sonbhadra, generating jobs for 300 individuals. IKEA Group: Investment of Rs 4,300 crores in Gautam Buddh Nagar, providing employment for 500 people. Lodha Group: Investing Rs 3,000 crores in Ayodhya, creating jobs for 100 people. Sarraf Group: Investment of Rs 1,250 crores in Moradabad, providing employment for 1,250 people. Ashok Leyland, JSW Energy, Tata Technology, Varun Beverages, Century Group, and Dalmia Cement: Each making significant investments across various regions of Uttar Pradesh, contributing to the state’s employment and economic growth agenda. The ambitious scale and diversity of these projects underscore Uttar Pradesh’s commitment to becoming a beacon of progress and prosperity, heralding a new era of development and opportunity for its citizens. UTTAR PRADESH’S AMBITIOUS GROWTH PLANS UNVEILED
l Largest consumer and workforce in the country l 6 expressways operational, 7 expressways under construction l Highest number of airports in the country, 10 operational (including 4 international), 11 under construction l The country’s first rapid rail service from Meerut to Delhi l Metro rail services in 6 cities - Noida, Greater Noida, Ghaziabad, Lucknow, Kanpur and Agra l Uttar Pradesh Defence Industrial Corridor - 6 nodes; Aligarh, Agra, Lucknow, Kanpur, Chitrakoot and Jhansi construction in progress l 65 percent contribution to the mobile manufacturing of the country l India’s first freight village developed on 100 acres in Varanasi l Development of the country’s first inland waterway l Moving towards becoming the state with the highest number of safe cities in the country encompassing 17 municipal corporations and Gautam Buddh Nagar l India’s first public transport rope-way system is being developed in Varanasi. l Infrastructure development is in full swing at 1000 acre International Film City, Noida l 8.5% of the Western Dedicated Freight Corridor and 57% of the Eastern Dedicated Freight Corridor lie in UP, junction of both freight corridors is in Dadri l Recognized as a food basket of India, the leading state in the country to produce milk, sugarcane, sugar, potato, mango, amla and ethanol l 56 percent population of the state is in the working age group l State with 67 universities, 5,842 colleges, 370 polytechnics and 3,268 ITI/ITC. l Development of 94 routes along the international/interstate borders l Home to international-level educational institutions like IIM Lucknow, IIT Kanpur, IIT BHU Varanasi and IIIT Prayagraj, NIT Allahabad A JOURNEY OF CHANGE TRANSFORMING UTTAR PRADESH:
UP’S VAST LAND RESOURCES POSITION STATE AS TOP INVESTMENT HUB T o bolster industrial growth and attract investors, Uttar Pradesh has strategically leveraged its extensive land bank, solidifying its position as a prime destination for businesses. With a plethora of available land spanning across various industrial authorities, including GIDA, NOIDA, GNIDA, and others, the state has paved the way for seamless investment opportunities. Uttar Pradesh State Industrial Development Authority (UPSIDA) stands at the forefront with a staggering 17,05,365.33 sq. mt of vacant land, while the Uttar Pradesh Defence Industrial Corridor offers an additional 80,47,200 sq. mt for allocation. Moreover, Greater Noida Industrial Development Authority and Noida Industrial Development Authority have allocated thousands of plots to industries, with significant land parcels available for further allotment. Similarly, other industrial development authorities such as Gorakhpur and Yamuna Expressway have also contributed to this abundant supply of land for industrial purposes. Nivesh Sarathi Portal Under the visionary leadership of Chief Minister Yogi Adityanath, the state has embraced transparency and accessibility by meticulously cataloguing comprehensive data on vacant plots through the Nivesh Sarathi portal. This initiative ensures that potential investors have unhindered access to crucial information, facilitating informed decisionmaking. Furthermore, various industrial development portals have augmented this transparency by disseminating details regarding available plots on their platforms. The Yogi government has implemented a series of incentives to catalyze investment, including the provision of land from sick units to new investors, exemption of stamp duty for eligible investors, and a range of land subsidies under the ‘Investment Promotion Policy 2023 for Uttar Pradesh FDI, Fortune Global 500, and Fortune India 500 Companies’. These measures underscore the government’s commitment to fostering a conducive business environment and fueling economic growth in the state. With its proactive approach towards land allocation, coupled with investor-friendly policies, Uttar Pradesh has emerged as a beacon for both domestic and international investors seeking lucrative opportunities. The abundance of available land, coupled with streamlined processes and attractive incentives, positions the state as a frontrunner in the realm of industrial development and investment. “Uttar Pradesh has recognised its talent and unlimited potential to become a state known for security, good governance and development. The state has assimilated respected Prime Minister’s instructions on value addition and framed its policies. Transformation with speed is the new identity of UP” -Yogi Adityanath, Chief Minister, Uttar Pradesh
Uttar Pradesh State Industrial Development Authority (UPSIDA) has garnered attention during the Ground Breaking Ceremony with the inauguration of over 3,500 industrial units, collectively valued at Rs 1.5 lakh crore, across 45 districts. The authority’s concerted efforts have resulted in the preparation of Memoranda of Understanding (MoUs) worth Rs 1.5 lakh crore for the Government of India’s “Gati Shakti” initiative in more than 45 districts of the state. In a major stride for industrial development, Mathura has taken a lead with a total investment of Rs 6,660 crore. Bulandshahar also garnered investments worth Rs 3,915 crore, with Amethi, Meerut, Gautam Buddh Nagar, and Aligarh attracting Rs 1,693 crore, Rs 1,455 crore, Rs 1,129 crore, and Rs 213 crore, respectively. This initiative not only promises to generate new employment opportunities but also bolsters the state’s economic framework. With increased industrial activity, it is anticipated that Uttar Pradesh’s contribution to India’s Gross Domestic Product (GDP) will experience a notable upsurge, further consolidating its position as a key contributor to the nation’s economic growth. Key Projects in [email protected] The event showcased key projects earmarked for development, spanning various sectors: Data Centers: NIDP (Hiranandani Group), Sify Technologies, STT Global, and Jackson Limited are slated to establish data centers in UP. Automobile and EV Projects: Ashok Leyland and Yamaha will pioneer automobile and electric vehicle projects. Power Projects: NTPC, Greenko Group, Torrent Power, and others will invest in thermal, hydro, and solar power projects. Residential and Retail Properties: M3M India, INGKA, and The House of Abhinandan Lodha are set to construct residential and retail properties. ITI Upgrades: Tata Technologies will upgrade 150 Government ITIs. Infrastructure: Air India SATS Airport Services and the Sharaf Group will establish an air cargo terminal, cold storages, and logistics park. Electronics Manufacturing: Tarq Semiconductors, Dixon Technologies, and others will manufacture electronics products. Healthcare: Sharda Group of Institutions, Yashoda Hospitals, and Apollo Hospitals will establish super specialty hospitals. Food Processing: AB Mauri & Varun Beverages will set up food processing plants. Defence and Weapons Manufacturing: Adani Defence Systems, Ancor Research Labs, and others will invest in defence and weapons manufacturing. Dairy Industry: Banas Dairy and CP Milk and Food Products will invest in the dairy industry. Manufacturing Units: Century Pulp and Paper, Dalmia Cement Bharat, and others will set up various manufacturing units. UPSIDA LAUNCHES 3,500 UNITS, FUELS INDUSTRIAL GROWTH IN UP
Uttar Pradesh is poised to become a frontrunner in renewable energy with the Chief Minister Yogi Adityanath-led government unveiling eight groundbreaking projects worth Rs 67,000 crore during the recent Ground Breaking [email protected] ([email protected]). These projects, primarily based on Pumped Storage Projects (PSP), are set to catalyze a green energy revolution, firmly establishing Uttar Pradesh as a leader in renewable energy innovation. The strategic move aims to propel Uttar Pradesh towards self-reliance in power generation, transforming it into a power surplus state. As expected, the [email protected] witnessed the implementation of projects valued at an impressive Rs 10 lakh crore across various sectors. With a combined capacity of 13,250 MW, these projects represent a significant stride towards ensuring robust power generation in the state. Leading industry players such as Greenko Group, Torrent Power Group, JSW Neo Energy Limited, ACME Cleantech Solutions, Amunra InfraTech and Agritech Pvt. Ltd., and Avaada Water Battery Private Ltd. made substantial investments, demonstrating their confidence in Uttar Pradesh’s renewable energy potential. Six of these projects are located in Sonbhadra, while two are situated in Mirzapur and Chandauli districts. The concentration of these pioneering projects in Sonbhadra district underscores its emergence as the epicenter of renewable energy advancement in the state. Pumped storage projects, renowned for their environmental sustainability, are poised to reshape the energy landscape. Of particular note is Greenko’s ambitious 3600 MW Gurar plant, slated to harness the resources of the Son River. This transformative project holds the promise of uplifting surrounding villages within Obra tehsil, heralding a new era of prosperity and progress. Similarly, Torrent Power’s 1750 MW pumped storage plant on the Son River upholds the principles of environmental conservation, without altering the riverine ecosystem. Projects in GBC l Greenko Energies Pvt. Ltd. Location: Sonbhadra Capacity (Megawatts): 3660 Investment: Rs 17,180.79 crore l Torrent Power Ltd. (2 projects) Location: Sonbhadra Capacity (Megawatts): 4150 Investment: Rs 24,200 crore l JSW Neo Energy Ltd. Location: Sonbhadra Capacity (Megawatts): 1200 Investment: Rs 5,530 crore l ACME Cleantech Solutions (2 projects) Locations: Chandauli and Mirzapur Capacity (Megawatts): 1500 Investment: Rs 6,561 crore l Avaada Water Battery Private Ltd. Location: Sonbhadra Capacity (Megawatts): 1120 Investment: Rs 6119 crore l Amunra Infratech and Agritech Pvt. Ltd. Location: Sonbhadra Capacity (Megawatts): 1620 Investment: Rs 7374.57 crore UP PIONEERS’ RENEWABLE ENERGY REVOLUTION
F oreign entrepreneurs have commended the investment-friendly environment fostered by Chief Minister Yogi Adityanath in Uttar Pradesh (UP), citing visionary leadership, abundant resources, robust infrastructure, and streamlined business processes as key factors. M.A Yusuf Ali, Chairman and MD of Lulu Group, highlighted the immense investment potential across various sectors, particularly emphasizing the food processing industry. “Investors seek assurance in visionary leadership, resources, infrastructure, and ease of doing business, all of which are readily available in India and Uttar Pradesh,” he affirmed. Major General (Retd) Sharafuddin Sharaf, Vice Chairman of Sharaf Group, underscored the importance of confidence in returns for investment decisions. “Our partnership with India and UP will be transformative. We view each other as family,” he emphasized. Benoit Renard, MD of Air Liquide, praised the supportive environment provided by India and UP for their investment endeavors. “Air Liquide Group remains firmly committed to advancing investments in India in the forthcoming years,” Renard asserted. Carmelo Espeleta, CEO of Dorna, lauded the UP government’s initiative in hosting significant events like MotoGP India, which generated 12,000 job opportunities and drew international participation. “MotoGP’s success in UP signifies a pivotal moment in 2023,” Espeleta remarked. The representative of Greenko Group celebrated Uttar Pradesh’s expeditious approval process, noting that while other states typically take two to two and a half years for initial approvals, UP accomplished this within six months. This feat, coupled with investments in green energy projects, is poised to propel India towards energy self-sufficiency, with UP emerging as a frontrunner in the sector. FOREIGN INVESTORS LAUD UTTAR PRADESH’S INVESTMENT CLIMATE H.E. Major General (Retd.) Sharafuddin Sharaf, Vice Chairman of Sharaf Group Benoit Renard, Managing Director, Air Liquide India Carmelo Ezpeleta, CEO, Dorna Sports,
C hief Minister Yogi Adityanath revealed Uttar Pradesh’s ambition to position itself as a central hub for Artificial Intelligence (AI), with Lucknow taking the lead, during the ‘Destination UP-Emerging Hub for AI in India’ conclave hosted at the Indira Gandhi Pratishthan. Stressing the state’s swift progress across various sectors, Chief Minister Yogi Adityanath underscored AI’s potential for transformation in areas like agriculture, healthcare, and education, highlighting its adaptability to meet specific user needs. Announcing intentions to establish an AI center at Gautam Buddha Nagar University in Greater Noida, aimed at fostering job opportunities for millions of youths within their local districts, the Chief Minister outlined plans for future growth. At the [email protected], CM Adityanath inaugurated the ‘Destination UP Opportunities AI’ publication and witnessed the signing of three MoUs with industry leaders Microsoft Corporation, HCL Software, and Wadhwani AI, marking significant progress towards realizing the state’s AI objectives. Government’s forward looking approach is evident in its proactive stance on technology, including the introduction of a dedicated AI policy in 2022 and initiatives like the Direct Benefit Transfer (DBT) scheme, which has streamlined welfare distribution systems. The Yogi government has plans to distribute tablets and smartphones to two crore young individuals through the Swami Vivekananda Yuva Sashaktikaran Yojana, furthering the state’s efforts towards digital empowerment. UTTAR PRADESH AIMS TO LEAD IN AI DEVELOPMENT Uttar Pradesh’s potential as a strategic hub for Corporate Social Responsibility (CSR) initiatives has gained traction, driven by its vast workforce of 8.39 crore registered workers. This sentiment echoed prominently during the Corporate Social Responsibility Conclave, held as part of the Ground Breaking Ceremony (GBC 4.0), where companies exhibited a strong commitment to directing their CSR funds towards societal welfare. Minister of State Aseem Arun emphasized CSR’s pivotal role as a guiding beacon for fostering inclusive development, resonating with Chief Secretary Durga Shankar Mishra’s acclaim for the state’s progressive strides under government stewardship. Mishra further spotlighted the collaborative essence of CSR, urging companies to embark on innovative CSR ventures in line with collective responsibility. The conclave also heralded significant milestones with the inauguration of a dedicated CSR portal and the introduction of the ‘Samuday’ CSR manual. Noteworthy was the acknowledgment bestowed upon corporations such as Vedanta Group and HCL for their substantial CSR endeavors in Uttar Pradesh, underscoring a shared dedication to advancing social causes and sustainable growth. UP EMERGES AS PRIME DESTINATION FOR EFFECTIVE CSR FUND UTILIZATION “Today, investment worth lakh of crores of rupees are pouring into Uttar Pradesh. Work is starting on thousands of projects in the state. These industries are going to change the face of UP. In the last 7 years, a red carpet culture has replaced the red tape culture. I have full faith in the power of UP and the hard work of the double engine government” -Prime Minister Narendra Modi
P rime Minister Narendra Modi, visiting the exhibition at the Ground Breaking Ceremony ([email protected]) in Lucknow, praised Chief Minister Yogi Adityanath’s ambitious project, the International Film City. Boney Kapoor, renowned Bollywood director and producer, presented the Prime Minister with project details, highlighting its unique features. Planned for construction in the Yamuna Expressway Industrial Development Authority (YEIDA) area, the Film City aims to be a global filmmaking hub. Kapoor’s company, in collaboration with the Bhutani Group, is overseeing the project. The Film City will offer comprehensive facilities for filmmakers, including permanent sets, theme parks, and replicas of iconic religious and international locations. Rajeev Arora, GM of Kapoor’s company, shared that visitors to the exhibition stall could experience the future vision of the Film City through artistic representations and immersive displays. The project aims to facilitate the simultaneous shooting of over 30 films, contributing to the state’s cultural and economic growth. MODI HAILS YOGI’S VISION FOR FILM CITY
4 | BW BUSINESSWORLD | 09 March 2024 “Success is not about how high you can climb, but how well you bounce back from the fall.” — Virgin Group Founder, Richard Branson DEAR READER, Fiscal 2022-23 was a challenging year for the world and for India because of uncertainties that arose from heightened geopolitical tensions and the impact they had on trade relations and investment flows. Even so, India Inc. powered through – showing great resilience. We map the India growth story in our annual BW Real 500 rankings, in partnership with TechSci Research, that has selected only listed organisations based on their total income generated in the 2022-2023 fiscal. Some findings of this study stand out. First, the top 15 companies account for nearly 71 per cent of the cumulative income generated by the top 50 companies and almost 50 per cent of the total income generated by all 500 companies in the list. Secondly, the top 50 companies accounted for over 70 per cent of the total income generated by all the 500 companies. However, the top five companies in the BW Real 500 list could generate a combined total income of Rs 38.7 lakh crore, a significant drop from the FY2022 numbers of Rs 100.34 lakh crore, clearly reflecting the global headwinds. Reliance Industries (RIL) continued its great run, emerging as India’s largest and most profitable private sector company once more. In FY2023, RIL was not just India’s largest company by market capitalisation (Rs 17,72,456 crore), it was also the largest by revenue (Rs 9,74,864 crore). Tata Motors also gave a good account of itself in a challenging environment, showing a 24 per cent jump in revenue amid rising input costs. Central public-sector entities (CPSEs) in the oil and gas sector too demonstrated their resilience in FY2023, led by Indian Oil Corporation, ONGC, BPCL, among others. The total dividend receipts from the CPSEs in FY2023 stood at Rs 59,533 crore, overtaking budgetary estimates. Compared to FY2022 though, the aggregate net profits of the CPSEs declined by 15 per cent to Rs 2.12 lakh crore, owing mainly to the decline in the earnings of oil-marketing companies and the vulnerability of steel companies to global commodity price cycles. Over the years, the BW Real 500 list has come to be known as the most definitive indicator of Corporate India’s health and India Inc.’s aspirations. I am sure businesses and industry, policymakers, and our readers in general, will find the study engrossing. The Aditya Birla Group has recently entered the paint industry and we give ‘The Last Word’ to Kumar Mangalam Birla, as he spells out the vision for the brand. Of course, we also bring to you all our regular features and columns. Happy reading! ANNURAG BATRA [email protected] INDIA INC. SHINES THROUGH TRAVAILS EDITOR-IN-CHIEF’S NOTE
6 | B W BUSINESSWORLD | 09 March 2024 BW Businessworld does not accept responsibility for returning unsolicited manuscripts and photographs. All unsolicited material should be accompanied by self-addressed envelopes and sufficient postage. Published and printed by Annurag Batra for and on behalf of the owners, BW Businessworld Media Private Limited. Published at 74-75, Scindia House, Connaught Place, New Delhi-110001, and printed at Thompson Press India Limited. Editor : Annurag Batra. © Reproduction in whole or in part without written permission of the publisher is prohibited. All rights reserved. R.N.I.No. 39847/81 BW Businessworld Media Private Limited EDITORIAL OFFICES BW Businessworld Media Pvt. Ltd. 74-75, Scindia House, Connaught Place, New Delhi-110001 Phone: 9818063325 ADVERTISEMENT / CIRCULATION / SUBSCRIPTION ENQUIRIES BW Businessworld Media Pvt. Ltd. 74-75, Scindia House, Connaught Place, New Delhi-110001 Phone: 9818063325 SUBSCRIPTION SERVICE Vinod Kumar +91 9810961195, [email protected], [email protected] Subscription rates: ONE YEAR - Rs 3,499 TWO YEARS - Rs 6,499 THREE YEARS - Rs 9,499 HUMAN RESOURCES: Namrata Tripathi ([email protected]) LEGAL ADVISOR: Sudhir Mishra (Trust Legal) GROUP CHAIRMAN & EDITOR-IN-CHIEF: Dr. ANNURAG BATRA CEO, BW COMMUNITIES Bhuvanesh Khanna CEO & CHIEF INNOVATION OFFICER Hoshie Ghaswalla (CEO-BW Engage) GROUP EDITORIAL DIRECTOR Noor Fathima Warsia MANAGING EDITOR: Palak Shah EDITORIAL TEAM Sr. Associate Editors: Ashish Sinha, Jyotsna Sharma, Meha Mathur Associate Editor: Ojasvi Nath Assistant Editor:Tarannum Manjul, Priyanka Singh, Lalit Narayan Sr. Correspondents: Arjun Yadav, Deep Majumdar Regional Editor (Technology & South): Rohit Chintapali Principal Correspondent: Neeraj Nayyar Special Correspondent: Rajany Pradhan, Abhishek Sharma Correspondents: Barkha Rawat Jr. Correspondent: Nitesh Kumar, Himanshu Kumar Ojha, Shruti Tripathi, Sangeet Kumar Sanu DESK TEAM Deputy Editor: Mukul Rai Associate Editors: Madhumita Chakraborty; Smita Kulshreshth ART TEAM Art Directors: Dinesh Banduni, Shiv Kumar, Shivaji Sengupta Assistant Art Director: Rajinder Kumar Infographics & Data Visualiser: Arun Kumar, Rahul Roy Assistant Images Editor: Sanjay Jakhmola PHOTO TEAM Sr. Photo Researcher: Kamal Kumar, Photographer: Naval Kishore BW ONLINE: Assistant Editor: Poonam Singh VIDEO EDITORIAL TEAM Video Team: Pappu Kumar Singh, Sunny Kumar Paswan Sr. Cameraperson: Ratneshwar Kumar Singh BW APPLAUSE & EVERYTHING EXPERIENTIAL: Ruhail Amin, Neha Kalra, Pratyaksh Dutta BW AUTO WORLD: Utkarsh Agarwal BW DISRUPT: Resham Suhail BW EDUCATION: Upasana BW HEALTHCARE WORLD & BW WELLBEING WORLD: Kavi Bhandari, Sanjana Deb BW HOTELIER: Editor: Saurabh Tankha, Operations Controller: Ajith Kumar LR BW MARKETING WORLD: Soumya Sehgal, Reema Bhaduri BW PEOPLE: Sugandh Bahl, Savi Khanna BW LEGAL WORLD: Krishnendra Joshi, Kaustubh Mehta BW SECURITY WORLD: Shilpa Chandel BW POLICE WORLD: Ujjawala Nayudu BW ENGAGE/BW CIO: Musharrat Shareen BW RETAIL: Amisha Sharma DIRECTOR: Prasar Sharma GROUP DIRECTOR – REVENUE: Aparna Sengupta GROUP SR. VICE PRESIDENT - STRATEGY, OPERATIONS & MARKETING Tanvie Ahuja ([email protected]) CEO, BW HEALTHCARE WORLD & BW WELLBEING WORLD: Harbinder Narula DIRECTOR, PROJECTS & COMMUNITIES: Talees Rizvi VICE PRESIDENT: Mohit Chopra SALES TEAM NORTH: Ravi Khatri, Anjeet Trivedi, Rajeev Chauhan, Amit Bhasin, Nitin Pawar, Somyajit Sengupta, Sajjad Mohammad, Agrata Nigam, WEST: Kiran Dedhia, Santosh B. Singh, Nilesh Argekar, Deepak Bhatt SOUTH: C S Rajaraman MARKETING & DESIGN TEAM: Kartikay Koomar, Mohd. Salman Ali, Moksha Khimasiya, Shweta Boyal, Alka Rawat, Mudit Tyagi, Arti Chhipa, Gazal Gupta, Himanshu Khulbe Asst. Manager - Design: Kuldeep Kumar EVENTS TEAM Tarun Ahuja, Devika Kundu Sengupta, Akash Kumar Pandey, Mohd. Arshad Reza, Ashish Kumar, Atul, Nandni Sharma, Savi Chauhan, 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, Saloni Jain, Aditi Rawat, Deepshikha Singh, Shailesh Pal BW COMMUNITIES BUSINESS LEADS Priya Saraf (BW Education), Chetan Mehra (BW Disrupt), Shruti Arora (BW Marketing World), Awantika Mohan, Priyanshi Khandelwal (BW Sustainability) CIRCULATION TEAM General Manager - Circulation, Subscription & Sales: Vinod Kumar ([email protected]) NORTH: Vijay Kumar Mishra, Sanjay Kumar, Mukhtadir Malik, Kamlesh Prasad WEST: Gorakshanath Sanap SOUTH: Sarvothama Nayak K Senior Manager (Production & Printing): Shiv Singh FINANCE TEAM Ankit Kumar, Ishwar Sharma, Shrikant Sharma, Vijay Jangra IT SUPPORT: Brijender Wahal ADMIN SUPPORT: Executive Assistant to MD: Himani Saxena ([email protected]) Assistant to Chairman & Editor-in-Chief: Aman Mishra ([email protected]) VOL. 43, ISSUE 10 09 MARCH 2024
8 | B W BUSINESSWORLD | 09 March 2024 MAILBOX YOUR COMMENTS TALK BACK INSIDE: INTERIM BUDGET 2024 RNI NO. 39847/81 I 24 FEBRUARY 2024 www.businessworld.in Noise founders Amit Khatri (L) and Gaurav Khatri Rs 200 IN FOCUS: QX LAB AI FOUNDERS Tilakraj Parmar, Tathagat Prakash, Arjun Prasad THE WEARABLES ISSUE DIALLING UP THE DECIBELS After DOMINATING India’s wearables & smartwatch category, NOISE eyes the fast growing true wireless AUDIO space with BOSE as strategic investor ENOUGH HEADROOM FOR ALL This refers to the editorial (“ Small But Not Invisible,” BW, February 24). The growing Indian wearable tech market is a testament to the potential of sub-niche categories in the country. An interesting factor that makes it unique is its non-dependence on investor money. Most brands in this segment focus on increasing the EBITDA margin rather than relying on heavy discounts to lure customers. This approach leads to increased revenue while avoiding the common pitfall of failing to turn profitable. Like wearable tech, other emerging categories can leverage this strategy to create a robust playbook and achieve the larger goal of building profitable business and increasing sales concurrently. As highlighted in the article, understanding the marketplaces and building strategies around them will be key steps to claim a significant share of the Indian market, which is rapidly evolving from a sea into an ocean. VIKRAM PRASAD, EMAIL WOMEN TAKING THE CENTRE STAGE This refers to the editorial (“ Silent Power Of Women In Politics And Economics”, BW, February 24). Women in India have been steadily making progress and gaining more influence in the country. The recent government budget reflects this positive trend by focusing on promoting women’s participation in the workforce, a longstanding challenge. The article highlights that women are now taking center stage in various aspects of life, a change that didn’t happen overnight. Continuous efforts by the government since independence have made this progress possible. It’s crucial to appreciate that the increase in the female literacy rate has compelled not only governments but also corporations to evaluate everyone with the same criteria. An empowered woman contributes to building an empowered nation. NEHA RAWAT, 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
As a professional, a well-informed mind is necessary to you but it's a well-formed mind that difierentiates you. At Amrita, this is what you get equipped with- a mind that's capable of original and critical thinking. This is how you become an active learner, not just a passive recipient of information. This is how you become capable of synthesizing new facts and new ideas in out-of-classroom environments. This is how you become skilled in providing creative solutions to any problem in any field you choose. Most importantly, this is how you find your place in the world, how you become noticed by employers, and how you become consistently valuable to them. We create well-formed minds. Not just well-informed minds. KNOW MORE *Upcoming Campus
10 | BW BUSINESSWORLD | 09 March 2024 Cover design by DINESH S. BANDUNI Pushing Ahead How India’s economic juggernaut continued to roll on powered by a resilient India Inc. that navigated an uncertain world with courage and conviction 44 12 Jottings The Bitcoin bulls are riding back; A cry for peace; SUVs are the flavour of the season; Smart rings and more 14Columns Vikas Singh (p. 14); Minhaz Merchant (p. 16); Srinath Sridharan (p. 18); Amit Kapoor & Aman Sharma (p. 20); Srinath Sridharan & Steve Correa (p. 22); Prakash Iyer (p. 26); Kiran Karnik (p. 27); Krishan Kalra (p. 28) 40 In Conversation MeitY Secretary S. Krishnan on the government’s vision for semiconductor manufacturing, the legal framework expected around AI-generated content and boosting India’s export competitiveness BW REAL 500 PROFILES NON-FINANCIAL COMPANIES 48 Indian Oil Corporation 50 Reliance Industries 52 Life Insurance Corporation of India 54 Oil and Natural Gas Corporation 56 Bharat Petroleum Corporation 58 Hindustan Petroleum Corporation 60 Tata Motors BW REAL CONTENTS VOLUME 43, ISSUE 10 09 MARCH 2024
09 March 2024 | B W BUSINESSWORLD | 11 The pages in BW Businessworld that are labelled BWi or Promotions contain sponsored content. They are entirely generated by an advertiser or the marketing department of BW Businessworld. Also, the inserts being distributed along with some copies of the magazine are advertorials /advertisements. These pages should not be confused with BW Businessworld’s editorial content. TOTAL NO. OF PAGES INCLUDING COVER 124 62 Rajesh Exports 64 Tata Steel 66 Tata Consultancy Services 68 Hindalco Industries 70 Larsen & Toubro 72 NTPC 74 JSW Steel 76 Vedanta FINANCIAL COMPANIES 77 State Bank of India 78 HDFC Bank 79 ICICI Bank 80 Canara Bank 81 Axis Bank 82 Ranking Tables 108 Master Strokes Goutam Datta, Chief Information and Digital Officer at Bajaj Allianz Life Insurance and Rachit Sahai, Client Partner-Insurance, IBM Consulting discuss how modern technologies are critical for insurers to achieve differentiation and better business outcomes 112 BW Event Snapshots from the first edition of the BW Security World 40 Under 40 Awards that felicitated young professionals under the age of 40 for their significant contributions to the field of security 118 Bookmark A review of Hersh Haladker & Raghunath Mashelkar’s book Exprovement – Exponential Improvement Through Converging Parallels by Srinath Sridharan 34 WIRETAP CASE BW Businessworld delves deep into the NSE phone tapping case to unveil the truth about what really happened at the exchange between 2009 and 2017. Read the story to know the verdict 121 Last Word Kumar Mangalam Birla, Chairman, Aditya Birla Group, on the conglomerate’s entry into the paints industry and more Photograph courtesy: National Stock Exchange of India Ltd. 106 In Conversation Roopwant Singh, Managing Director, GMDC, on the mining giant’s recent capital outlay, its business performance, diversification of its portfolio, and more
12 | BW BUSINESSWORLD | 09 March 2024 JOTTINGS The Bitcoin Bulls are Riding Back T HE RESURGENCE of Bitcoin above the $57,000 mark (its highest price level since late 2 0 2 1 ) h e r a l d s a p o t e n t i a l c o m e b a c k f o r t h e w o r l d ’s l a r g e s t cryptocurrency. This resurgence does not seem merely like a fleeting uptick but is rather emblematic of a broader trend of renewed confidence in the cryptocurrency market. Several factors underpin Bitcoin’s climb. Firstly, the advent of exchange-traded funds (ETFs) has democratised access to Bitcoins, attracting a wave of institutional and retail investors alike. Such an influx of capital speaks volumes of the expanding appeal of Bitcoin beyond its niche enthusiast base.Moreover, stalwart investors like MicroStrategy Inc. continue to show unwavering faith in Bitcoins, steadily accumulating holdings despite market volatility. MicroStrategy’s recent purchase of an additional 3,000 Bitcoin tokens indicates the company’s bullish outlook on the digital asset and serves as a vote of confidence for others considering entry into the market. The impending reduction in Bitcoin’s supply growth, known as the halving, adds to the optimism surrounding the cryptocurrency. This anticipated event has historically been associated with bullish price movements, fuelling anticipation among market participants. Bitcoin’s resurgence also reflects its resilience in the face of broader economic trends. Despite rising US Treasury yields and expectations of a tighter monetary policy, cryptocurrencies have maintained their upward trajectory, possibly highlighting their status as a distinct asset class with unique investment appeal. Moreover, Bitcoin’s outperformance relative to traditional assets like stocks and gold still shows its growing stature as a store of value and hedge against inflation. — Rohit Chintapali A CRY FOR PEACE THE PORT WORKERS’ union in India recentl y r e f u s e d t o l o a d s h i p s carrying weapons for Israel. The rather bold protest was against massive civilian casualties in the Israeli attacks in Gaza. “We, the port workers, part of labour unions, would always stand against the war and killing of innocent people like women and children,” a statement by the union said. “Women and children have been blown to pieces in the war. Parents were unable to recognise their children killed in bombings that were exploding everywhere,” it added. The stance of the port union demonstrates the ethical concerns of the workers and their solidarity with global humanitarian causes, even in the face of a possible backlash f ro m b usi n e s s i n te r e s t s vested in the arms trade. The port workers’ decision raises questions about the rights of unions and whether these rights could override national security concerns. But at the end of the day, it shows the extent to which televised reports from Gaza have moved the world. — Abhishek Sharma Photograph by BiancoBlue Photograph by Cavan
09 March 2024 | B W BUSINESSWORLD | 13 HERE’S A DICHOTOMY, while sales of traditional cars decline, the demand for sports utility vehicles (SUVs) surge. The SUVs now command 60 per cent share of the domestic car market, more than doubling from 28 per cent in the pre-pandemic years. Paradoxically, the demand for traditional cars has been dwindling, owing to a sustained weakness in the rural market. Affordability of cars is also a major challenge owing to rising commodity prices and regulatory compliance, all together burdening the end-consumer. To make matters trickier for car manufacturers, car export numbers have also been sliding. Exports dropped to 14 per cent in this fiscal from 17 per cent in 2019 and are being attributed to inflation and forex limitations in key markets such as Latin America, Southeast Asia, and Africa over the past two years. D e s p i t e t h e o v e r w h e l m i n g dominance of SU Vs, the cost of vehicles has persistently escalated over the past four years. Rather than absorb the increased costs themselves, manufacturers have chosen to pass them on to consumers, citing higher commodity prices and the need to comply with increasingly stringent regulations on safety and emissions as justification for their decision. While this trend is expected to persist, manufacturers see operating margins rise to 11 per cent, fuelled by the popularity of SUVs and price hikes. With SUVs projected to further dominate sales, margins could reach 12.5 per cent for car makers in FY2024- 25. Is your next car an SUV then? — Ashish Sinha SUVs are the Flavour of the Season AT A TIME WHEN wearable tech seems to be reaching a saturation point, the emergence of the smart ring category has breathed new life into the industry. The smart ring is more than a fitness tracker, for in their evolved forms, these rings can montior a host of bodily functions, including blood pressure and glucose. In the versions that are in the market now, a touch of a human hand can command a ring to perform functions like opening a smart door or switching on the light. With global giants like Samsung stepping into the ring with its Galaxy Ring and Apple contemplating an entry, it’s evident that the smart ring phenomenon is poised to disrupt the wearable tech industry. Indian leaders like BoAt and Noise have already made their mark in the smart ring SMART RINGS arena, signalling that the trend is not confined to global players. Ultrahuman is currently rocking the smart ring scene, grabbing a whopping three-fourths of market share. Counterpoint predicts a smart ring explosion in 2024 with sales volumes doubling and cash registers ringing to the tune of Rs 207 crore. What started as a shy contender in 2023 is now the rock star ready to steal the wearables show. Contrary to the doom and gloom of single-digit growth in wearables for 2024, the smart ring category is gearing up for a significant surge. However, as the industry anticipates a full-blown revolution, the question that arises is: is it premature to declare that the smart ring phenomenon isn’t just a ripple but a tidal wave transforming the wearable tech scene? While major players throw their rings into the ring, can the wearable tech industry truly move past saturation? — Ojasvi Nath Photograph by Maruti Suzuki India Photograph courtesy: Noise
14 | B W BUSINESSWORLD | 09 March 2024 COLUMN By Vikas Singh I NDIA, A CAPTIVATING blend of ancient whispers and contemporary rhythms, is poised to ascend as a global tourism hub. Within the diverse tapestry of global travel, India stands out as a jewel, attracting visitors with its rich cultural heritage, natural splendour, and historic landmarks. The allure of India lies in its seamless blend of heritage and modernity. From the sacred echoes of Varanasi to the pulsating energy of Mumbai and Delhi, India offers a diverse and enchanting experience. Ancient cities resonate with the echoes of bygone empires, their majestic temples and timeless traditions transporting visitors to another era. Meanwhile, bustling metropolises offer a glimpse into India’s dynamic future. This enchanting confluence forms the bedrock of India’s magnetic pull, making it an unrivalled destination for travellers. Beyond being a cultural exchange, tourism contributes a significant seven per cent to India’s GDP. The World Travel & Tourism Council projects a sustained GDP contribution of seven per cent over the next decade, to reach an impressive Rs 36.8 lakh crores. The sector is expected to employ over 5.8 crores individuals, highlighting its pivotal role in the nation’s economic fabric. Shifting Sands of Travel: Travel trends are evolving, with both Indian and interThe author is an economist and columnist national travellers venturing beyond popular hotspots. Hidden gems like Varkala in Kerala, the serene Northeast, Mandarmani in West Bengal are increasingly capturing attention. This presents a crucial opportunity for destination diversification, relieving pressure on iconic destinations. Revitalising iconic locations, such as Agra, Pondicherry, Kashmir, remains crucial, requiring strategic investments in infrastructure upgrades and immersive experiences. The government’s policy initiatives, institutional framework and the enabling ecosystem as a result is the linchpin for transforming the tourism sector into an economic engine. Infrastructure upgrades, coupled with technological advancements, can elevate the travel experience, making it more memorable and seamless. While investments in highways and high-speed railways are commendable, attention to rural and last-mile connectivity is paramount. Similarly regional airports and bolstering public transportation networks can enhance accessibility, particularly for remote destinations. The government has moved well. Recognising 17 iconic tourism sites and elevating them to global standards has not only enhanced the visitor experience but also attracted a surge in both domestic and international tourism. Additionally, encouraging the development of niche infrastructure, such as adventure tourism. Similarly promoting, eco-friendly accommodations like homestays and community-run lodges, and adopting clean energy solutions are key to ensuring long-term growth and preserving the beauty that attracts visitors in the first place. The synergy between the Centre and state governments is critical for the sector’s growth. Collaborative infrastructure development, marketing initiatives, and destination management can accelerate progress. Similarly, the partnerships can leverage regional strengths in promoting lesser-known destinations. Initiatives like ‘Dekho Apna Desh’ and ‘Swadesh Darshan’ demonstrate this collective effort. It’s a promising step. Cohesive engagement with local communities ensures reTOURISM: UNVEILING THE UNTAPPED POTENTIAL
09 March 2024 | B W BUSINESSWORLD | 15 secure environment for travellers. This will warrant a comprehensive strategy to ensure a secure and inviting environment for tourists. Similarly, the government needs to empower and support the local administration to create the enabling tourism ecosystem. A True Multiplier: Fostering Development: Tourism is a true multiplier, and the impact stretches beyond metropolitan hubs, providing vital income and entrepreneurial opportunities in rural communities. It extends beyond direct employment in hotels and travel agencies, fuelling jobs in transportation, retail, food and beverages, and handicrafts, leading to income diversification and upward mobility for rural communities and youth. Similarly, the exponential growth of the tourism sector acts as a potent economic multiplier, catalysing development in less affluent regions of the country. By attracting visitors to these untapped areas, tourism injects capital, creating job opportunities and fostering local businesses. This influx of economic activity enhances infrastructure, education, and healthcare, thereby elevating the overall standard of living. Moreover, tourism acts as a catalyst for socio-mobility, empowering communities by exposing them to diverse cultures and fostering a spirit of entrepreneurship. As locals actively participate in the industry, it not only augments income but also promotes cultural exchange, contributing to a more inclusive and dynamic societal fabric. Envisioning the Future: In the grand symphony of global tourism, India’s melody is resonant and captivating. As the journey unfolds, the nation’s cultural richness, historical splendour, and commitment to innovation promise a tapestry of experiences that will enthral the global traveller for years to come. The transformative power of tourism, when harnessed strategically, can indeed position India as a beacon in the global tourism landscape. sources and expertise are efficiently utilised, amplifying the impact. Similarly, as the world becomes more interconnected, collaboration with other nations becomes crucial. Partnerships for marketing, joint initiatives, and knowledge exchange can create a global tourism network that benefits all parties involved. Shared best practices, cultural exchanges, and collaborative events can foster international goodwill and attract a diverse range of visitors to India. India’s tourism narrative must be woven with threads of sustainability. Protecting its natural heritage, from endangered flora in the Sundarbans to majestic tigers in Ranthambore, is not just an environmental imperative but also crucial for attracting eco-conscious travellers. At the heart of the industry’s transformation lies the seamless integration of technology. From AI-powered travel assistants providing personalised recommendations to immersive virtual reality experiences capturing the essence of India’s vibrant festivals, technology is the catalyst propelling the evolution of tourism. It extends further into the realm of personalised travel, where online bookings and dynamic pricing models craft bespoke journeys for each traveller. Significant challenge looms on the horizon: Despite the positive trajectory, the sector faces challenges, including a skills gap among graduates. Additionally, safety and security concerns pose challenges, demanding proactive measures to ensure a India’s tourism narrative must be woven with threads of sustainability ... protecting its natural heritage, from endangered flora in the Sundarbans to majestic tigers in Ranthambore Photograph by Sabirmallick/CANVA
16 | B W BUSINESSWORLD | 09 March 2024 ARE AND CRITICAL MINERALS hold the key to a raft of new technologies: AI-powered devices, electric vehicles (EVs), automation, lithium batteries, chips, robotics, telecom and space satellites. India has an estimated six per cent of global rare earth element (REE) deposits. China accounts for 90 per cent of REEs, complicating India’s strategy going forward. There are 17 rare earth minerals, most with exotic names but important technology uses: cerium, erbium, europium, etc. According to the US Geological Survey, “Rare-earth elements (REE) are necessary components of more than 200 products across a wide range of applications, especially high-tech consumer products, such as cellular telephones, computer hard drives, electric and hybrid vehicles, and flat-screen monitors and televisions. Significant defense applications include electronic displays, guidance systems, lasers, and radar and sonar systems.” India is accelerating its search for REEs. Last year the National Geophysical Research Institute (NGRI), based in Hyderabad, discovered 15 of the 17 known REEs at a site in the Anantapur district of Andhra Pradesh. Apart from rare earth minerals, India has focused on critical minerals which have widespread use across technologies. Critical minerals include lithium, cobalt, graphite and nickel. China leads in processing these minerals but India is redoubling efforts to mine, process and produce them. Lithium is a mineral of special interest for its use in batteries for EVs. Chile with 9.2 per cent of global lithium reserves, Australia (3.8 per cent) and Argentina (2.2 per cent) are countries India can tap. China accounts for only 1.5 per cent of global lithium reserves. However, it leads, along with Chile, in processing lithium. India is considering a policy for critical mineral refinancing. As Mint reported, “Under the policy, the government may come up with an incentive scheme on the lines of the production linked incentive (PLI) scheme. The mines ministry has prepared the policy draft after finalising a list of 30 critical minerals that are required in a number of key sectors including battery storage, telecom and defence among others.” In an interview with Mint, Western Australia’s deputy premier Rita Saffioti pointed out: “There is much interest in greater investments and collaborations between Indian and Australian firms in rare earths. The reforms are aimed at supporting projects that assist with decarbonisation. Western Australia has been in focus for its supply of key critical minRare Minerals Race R 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
09 March 2024 | B W BUSINESSWORLD | 17 lithium, the critical minerals on offer are titanium, bauxite (aluminous laterite), glauconite, nickel, chromium, potash, copper, graphite, manganese ore, molybdenum ore, phosphorite, platinum group elements (PGE), and rare earth elements (REE). These are used in sectors like renewable energy, defence, and agriculture. Through an amendment to the Mines and Minerals (Development and Regulation) Act, 24 minerals were notified as critical and strategic, and the central government was given the power to grant mineral concessions for these through auction. The high demand for critical and strategic minerals is usually met by imports. The import bill is Rs 24,000 crore for lithium alone. Besides domestic firms, including battery manufacturers, international mining and other companies from South Korea and Japan have expressed interest in these blocks. The last date for bid submissions was January 22, 2024.” Tapping Africa Geopolitics could play an important role in how countries access and process critical minerals. For example, the Democratic Republic of Congo (DRC) accounts for 70 per cent of global production of cobalt. It is part of the African Union (AU) whose membership of the G20 was facilitated by India. China, however, has a vice-like grip on processing, loosening only in recent months. It still processes and refines over 50 per cent of lithium and cobalt. A paper released by the Confederation of Indian Industry (CII) charts out India’s strategy: “As with many challenges due to the unavailability of raw minerals and fierce global competition, particularly between China and the US to dominate the global raw material supply and battery value chain, India soon needs to build up a robust and continuous supply chain of minerals to achieve its domestic demand for advance chemistry batteries and to reduce its import-based dependency. Only a collaborative approach between the government and industry will allow India to conquer these challenges. “Improved access to raw minerals can be provided in multiple ways, including reduction of import duties on raw minerals, improving bilateral ties with countries rich in the raw minerals, and encouraging Indian companies to acquire those resources. Providing incentives to local players to build refining capabilities, promoting sustainable domestic graphite mining with the relaxation of stringent regulatory restrictions, increasing import duties on cells and batteries, and incentivising the recycling of batteries can provide further impetus to localise cell manufacturing.” India’s proactive moves to secure a regular supply of both rare earth and critical minerals is vital to the success of its green energy strategy in renewables, batteries, EVs and related technologies. In order to increase India’s annual economic growth rate from seven per cent to eight per cent, these technologies will play a critical role. erals including lithium, nickel and cobalt, as well as rare earth metals, which are used in smartphones, computers, batteries and electronics.” Australia accounts for around 50 per cent of global lithium and cobalt production and is among the top four producers in the world of rare earth minerals. Importing lithium from Australia will reduce India’s dependence on imports from China. Meanwhile, the discovery of 5.9 million tonnes of lithium reserves in Jammu and Kashmir (J&K) could be a gamechanger. The government has put 20 blocks of critical minerals up for auction. These include the lithium reserves found in J&K. Reporting on the auction, Business Standard noted: “India initiated the process to auction 20 blocks of critical minerals, including the 5.9 million tonne lithium reserves discovered in Jammu & Kashmir’s Reasi district. Besides India’s proactive moves to secure a regular supply of both rare earth and critical minerals is vital to the success of its green energy strategy in renewables, batteries, EVs and related technologies Photographs by Indiapicturebudget
18 | B W BUSINESSWORLD | 09 March 2024 N TODAY’S LANDSCAPE, where integrity and honesty often yield to the allure of popularity and attention, a troubling trend has emerged, jeopardising the principles of fairness and genuine achievement. Central to this trend is the brazen conduct of individuals driven by an unquenchable thirst for recognition. These individuals shamelessly seek undeserved credit by leveraging the accomplishments of others. This scenario may sound familiar, as many of us encounter such fame-seeking individuals within our social and professional circles. Their audacious behaviour knows no bounds, as they unabashedly seize credit that rightfully belongs to others. This phenomenon transcends hierarchies, spanning across social, economic, and educational spheres. Claiming undeserved credit directly contradicts the principles of integrity, collaboration, and respect. These individuals actively seek opportunities to exploit the hard work, talent, and dedication of others to enhance their own image, distorting the reality of genuine accomplishments and undermining trust and meritocracy in society. The appropriation of ideas, innovations, and achievements originating from others has become increasingly common. These individuals adeptly manipulate narratives to position themselves as the rightful owners of triumphs they played no part in creating. To them, recognition is merely a commodity, disregarding the damage inflicted on the credibility of those who have genuinely earned their accolades through hard work and skill. This culture of self-promotion takes various forms, permeated with deceit and undermining the principles of fairness and authenticity. The pervasive influence of social media exacerbates this issue, providing a platform for self-proclaimed champions of success to fabricate an illusion of accomplishment. This phenomenon of fame-seeking individuals extends across various aspects of life, including leadership roles where individuals wield significant influence and power. Unfortunately, some leaders are drawn to solely basking in the glory of their team’s accomplishments, neglecting to recognise the indispensable contributions of those pivotal to their successes. By withholding acknowledgment, these leaders not only diminish the morale and motivation of their team members but also undermine trust and fairness within their organisations. Instances of individuals seeking undeserved credit and recognition are alarmingly common across different fields. In I Stealing Fame: The Dark Side of Recognition Culture (A)muse & Musings By Srinath Sridharan
09 March 2024 | B W BUSINESSWORLD | 19 popularity, misleading their audience and overshadowing the genuine content creators who have built their following organically. These examples illustrate the pervasive nature of selfserving behaviour, which undermines collaboration, fairness, and integrity across different domains. The consequences of this troubling trend extend beyond individual instances of credit misappropriation. It corrodes the foundation of trust within our communities, stifling collaboration and innovation. When hard work and genuine talent are overshadowed by hollow claims of achievement, the motivation for others to pursue excellence diminishes. After all, why invest in originality and excellence when deceit and self-promotion offer shortcuts to recognition? Claiming credit for success without genuine contribution is not only dishonest but also morally reprehensible. It breaches trust and undermines fairness and integrity. Such behaviour not only distorts the truth but also deprives deserving individuals of rightful recognition. Moreover, it perpetuates a culture of deception and undermines the value of hard work and meritocracy. Ultimately, individuals who engage in this deceit prioritise personal ego and ambition over the well-being and reputation of others, perpetuating harm and eroding trust within society. The dark side of recognition culture unveils a troubling trend where the thirst for acclaim outweighs integrity and genuine achievement. As individuals clamour for recognition, they resort to deceitful tactics, appropriating credit for accomplishments they had no hand in creating. This undermines the very fabric of trust and fairness within society, eroding the incentive for authentic collaboration and innovation. Moreover, as these deceptive practices become more prevalent and accepted, they risk reshaping societal norms and morality. With shortcuts to recognition readily available, individuals may prioritise personal gain over ethical conduct, perpetuating a cycle of deceit and eroding the values of honesty and integrity. As a result, recognition culture not only accelerates poor behaviour but also redefines the moral compass of the modern age, posing significant challenges to the fabric of society. As individuals clamour for recognition, they resort to deceitful tactics, appropriating credit for accomplishments they had no hand in creating. This undermines the very fabric of trust and fairness within society, eroding the incentive for authentic collaboration and innovation the entertainment industry, for example, we frequently encounter cases of artistes plagiarising songs or scripts, passing them off as original creations. Similarly, in academia, instances of academic misconduct like plagiarism or falsification of research findings tarnish the integrity of scholarly pursuits. Additionally, in the corporate world, ambitious executives may take credit for successful projects or innovations initiated by their subordinates or peers, failing to acknowledge the collective effort of the team. These examples underscore the widespread nature of this behaviour, crossing professional boundaries and highlighting the urgent need to reassess societal values concerning integrity and recognition. Leaders who exhibit such behaviour demonstrate a fundamental disregard for the principles of collaboration. Their failure to acknowledge the collective efforts of their team perpetuates a toxic culture of selfaggrandisement, ultimately diluting the essence of true leadership. Conversely, authentic leaders understand the importance of recognising deserving contributions, fostering a positive and inclusive work environment, and inspiring loyalty, commitment, and a shared sense of purpose among team members. Instances of such behaviour are unfortunately not uncommon in various contexts. For example, in the workplace, a manager might take credit for a successful project that was primarily executed by their team, failing to acknowledge the contributions of individual team members. Similarly, with social media influencers, individuals may buy followers or engagement to artificially inflate their The author is a policy researcher & corporate advisor Photograph by Vasilveya
20 | B W BUSINESSWORLD | 09 March 2024 NDIA’S HEALTHCARE sector is one of the fastest-growing in the world. Already the world’s leader in pharmaceutical manufacturing, India’s massive talent pool and cost advantage position it to become a global leader in healthcare innovation. The question remains: exactly what part of healthcare should India double down on? Especially in the wake of the Covid-19 pandemic, everyone from common workers to industry leaders to national public health officials received a crash course in the hugely complex and diverse landscape that is healthcare. While bedside treatment is certainly a part of it (the part that most are naturally familiar with), there’s therapeutics development, diagnostics, data management, insurance, and so much more. As India rises to become one of the most important members of the global community, socially, economically, and geopolitically, a comprehensive strategy for developing a unique edge in healthcare must be defined. Oftentimes, healthcare innovation is construed as the development of new therapeutic technologies or devices. Therapy is increasingly shifting toward a biologic-oriented model where new drug paradigms, such as CAR-T therapy, cell therapy, and gene therapy are capturing the attention of researchers, governments, and new companies worldwide. India is no exception. From 1994-2016, Indian researchers pursued the development of hundreds of compounds (most of which were licensed to and later shelved by United States-based pharmaceutical companies). India’s recent National Research Foundation (NRF) Bill, which represents a monumental shift to prioritising and accelerating fundamental R&D, explicitly highlights the importance of developing new therapeutics. PROCESS INNOVATION: India’s Key to Global Healthcare Transformation While India contributes minimally to the development of new therapeutics globally, as per McKinsey & Company insights, the United States of America (USA) is responsible for 78 per cent and European countries are responsible for 13 per cent of it. The success of the USA and Europe in developing new therapeutics is due to the research environment they have cultivated over decades. The USA spends 3.4 per cent of its GDP on fundamental R&D, whereas India’s expenditure stands at 0.64 per cent and is declining. Additionally, 9-10 per cent of USA undergraduates pursue PhDs, a percentage notably higher than the 0.4 per cent of Indian undergraduates. A peer-review-driven, sustainably funded, aligned-incentives research environment in the USA and Europe has driven their dominance in therapeutics innovation. However, India’s recent push to implement best practices like peer review in grant approval and escalation of funding is an encouraging step. India has a considerable journey ahead to match the innovation prowess of the USA or Europe in the field of therapeutics. ARTHSASTRA by Amit Kapoor & Arman Sharma Clockwise from left : Amit Kapoor & I Arman Sharma
09 March 2024 | B W BUSINESSWORLD | 21 India should be looking at those areas where the USA and Europe come up short. While the USA and Europe stand at the forefront of innovation in developing ground-breaking therapeutics and medical advancements, both regions, broadly speaking, persistently struggle in the cost-effective delivery of healthcare. Despite having the best treatments available to some, the challenge lies in ensuring equitable access and affordability for all patients. High and rising costs of basic products and services, complex reimbursement systems, fragmented care delivery models, and antiquated data and protocol management processes are among the factors contributing to inefficiencies in these regions. These challenges are not solved by fundamental technological innovations (like a new gene therapy for congenital heart disease). They’re solved by process innovation: the novel combination and/ or application of existing technologies, which is exactly what India needs to focus on for healthcare. As the world’s pharmacy, India has already created that niche for itself. The world turns to India for generic pharmaceuticals because of its ability to manufacture an impressively diverse array of generics at an unmatched cost and scale. The factors that allow this to happen, a large talent pool, decades of government support for manufacturing, and a flexible regulatory environment, are conducive to process innovation in many other sectors beyond pharmaceuticals, but most importantly, in care delivery. The greatest challenge in healthcare is always last-mile delivery. Developing a new therapy is difficult, but it can largely be done within a single entity. Delivering high-quality treatment at scale requires an extreme degree of operational excellence and coordination between independently acting stakeholders in the care delivery pipeline, including developers, insurers, providers, provider systems, and of course, patients. The unprecedented speed with which India adopts new technologies for healthcare, as evidenced by the Ayushman Bharat Digital Mission (the largest national programme for digital health in the world) and some of the highest rates of adoption for digital health during the pandemic, puts it on a path to solve many of the Electronic Medical Record and remote care problems that are particularly pressing in the USA. The explicit prioritisation and substantial support from the central government in providing last-mile delivery to every Indian via the Ayushman Bharat scheme creates a paradigm of grand challenges; innovators and corporations are incentivised to work directly on care delivery problems. Perhaps most importantly, India’s unparalleled diversity of healthcare needs – triple-bypass surgeries in major metropolitan hospitals and basic malaria prevention in the rural heartland – gives it a unique perspective on healthcare delivery that is relevant not only domestically, but also globally. Facing such a wide range of challenges, India is well-positioned to design processes and systems that take everyone’s health into account. The US shows us what healthcare is: complex, expensive, and bureaucratic. India can show the world what healthcare could be. The government, capital allocators, industry leaders, and most importantly, ground-level innovators must direct their healthcare efforts to solidify this niche, which is critical to making India a true Vishwaguru in healthcare. Amit Kapoor is Chair, Institute for Competitiveness and lecturer, USATMC, Stanford. Arman Sharma is Dr Kapoor’s student at Stanford India should be looking at those areas where the USA and Europe come up short. While the USA and Europe stand at the forefront of innovation in developing ground-breaking therapeutics and medical advancements, both regions, broadly speaking, persistently struggle in the cost-effective delivery of healthcare Photograph by Indiapicturebudget
22 | B W BUSINESSWORLD | 09 March 2024 UR PRESENT WORLD is driven by innovation and progress, and ideas are the currency of change. These ‘imagined ideas’ fuel our ambitions and shape our societies, paving the way for a brighter future. Yet, amidst the relentless pursuit of fresh concepts and groundbreaking solutions, we often overlook a powerful force that can enhance and refine our ideas – the force of UnIdeas! UnIdeas, a neologism coined to represent oppositional or contrasting ideas, are often dismissed or relegated to the shadows of creativity. However, they possess a unique and intrinsic ability to amplify the strength and resilience of our original ideas. UnIdeas can take various forms, representing unconventional or overlooked perspectives that have the potential to refine and enhance existing ideas. In this editorial, we explore the profound impact of UnIdeas and how they can be harnessed to unlock even greater innovation. Ideas are the seeds of progress, but UnIdeas are the nutrients that allow them to grow into towering achievements. In the dynamic landscape of creativity and innovation, where groundbreaking ideas constantly emerge and evolve, the concept of UnIdeas stands out as the newest idea. While ideas have long been hailed as the driving force behind progress, UnIdeas, with their potential to disrupt, challenge, and elevate conventional thinking, represent a paradigm shift in our approach to problem-solving and innovation. These oppositional notions, often seen as antagonists to traditional ideas, have emerged as powerful allies, forming a dynamic partnership that propels us into uncharted realms of possibility. First and foremost, UnIdeas serve as a reality check for our aspirations. They force us to question our assumptions, challenge our biases, and consider alternative perspectives. When we embrace oppositional thinking, we become more attuned to potential pitfalls and unintended consequences that our initial ideas might entail. In doing so, we fortify our ideas, making them more robust and adaptable in adversity. UnIdeas also foster creative tension, driving us to explore uncharted territory. We are motivated to dig deeper, research more extensively, and refine our arguments when confronted with opposing viewpoints. This process of intellectual friction often leads to discovering novel insights and breakthroughs that would have otherwise remained concealed. For instance, let us take the example of reverse innovation. Instead of following a traditional top-down approach, where innovations originate in developed countries and then spread globally, consider the concept of “reverse innovation.” This UnIdea suggests that valuable insights and solutions can emerge from unexpected sources, such as developing nations, and be applied in developed contexts to address unique challenges. Moreover, UnIdeas stimulate dialogue and collaboration. Collaboration is critical to solving complex challenges. Inviting opposing viewpoints into our creative processes encourages diverse voices to contribute to the conversation. O UNIDEAS: Nurturing Creativity Through Opposition PEOPLE TALK By Srinath Sridharan & Steve Correa
09 March 2024 | B W BUSINESSWORLD | 23 disagreement. In a world where echo chambers and confirmation bias often prevail, cultivating an environment that welcomes UnIdeas can be transformative. For instance, while the dominant narrative in business usually focuses on growth and expansion, UnIdea might challenge this by proposing an “eco-disruption” model. This perspective suggests that businesses could find sustainable success by disrupting traditional growth models and embracing ecological principles, contributing to environmental and social well-being. In contrast to the emphasis on success, an UnIdea could be the celebration of failure as a valuable learning experience. This perspective challenges the fear of failure by suggesting that setbacks and mistakes are essential to innovation, offering opportunities for growth, adaptation, and improved solutions. So, when Moon Space Mission Chandrayaan failed to land on the moon in its first attempt, it only spurred ISRO to continue its efforts. UnIdeas serve as a compass in the competitive business arena, guiding enterprises through turbulent waters. Companies that recognise the power of oppositional thinking are better equipped to navigate complex markets. Contradictory viewpoints, often from diverse teams, force an organisation to refine its strategies, question established norms, and anticipate shifts in consumer behaviour. For instance, an UnIdea might advocate for a “slow innovation” movement in a world obsessed with rapid technological advancements. This perspective suggests that taking the time to deeply understand societal needs, considering ethical implications, and ensuring inclusive development can result in more meaningful and sustainable innovations. In 1991, we opened up the Indian economy selectively with liberation but watched it meaningfully, avoiding the Asian Financial Crisis. For instance, in India’s tech startup ecosystem, the clash between traditional business models and disruptive innovations has created UnIdeas that challenge conventional wisdom. The most promising solutions are born in this crucible of conflicting visions. The fusion of traditional and modern approaches has paved the way for unique business models, like ‘phygital’ retail experiences, which combine online and offline elements to cater to a diverse customer base. This diversity enriches the pool of knowledge and experiences, ultimately resulting in more holistic and effective solutions. In political and governance contexts, an UnIdea could involve recognising and leveraging “community wisdom.” Rather than relying solely on top-down decision-making, this emphasises the importance of involving local communities in the decision-making process, tapping into their knowledge, traditions, and unique perspectives. Innovation thrives on synthesising ideas, and UnIdeas play a pivotal role in this synthesis. By bringing together seemingly contradictory notions, we can create hybrid concepts that incorporate the strengths of multiple perspectives. Fusing opposing ideas can lead to groundbreaking inventions and paradigm shifts that reshape industries and societies. An UnIdea might advocate for restorative justice practices over punitive measures within the criminal justice system. This perspective challenges the conventional punitive approach by emphasising rehabilitation, restitution, and community involvement as more effective means of addressing crime and promoting societal healing. However, harnessing the power of UnIdeas is not without its challenges. It requires an open-minded approach and a willingness to embrace discomfort. It necessitates a culture that values dissent and encourages respectful Srinath Sridharan is a policy researcher & corporate advisor Steve Correa is an executive coach, OD consultant & author While ideas have long been hailed as the driving force behind progress, UnIdeas, with their potential to disrupt, challenge, and elevate conventional thinking, represent a paradigm shift in our approach to problem-solving and innovation. These oppositional notions, often seen as antagonists to traditional ideas, have emerged as powerful allies, forming a dynamic partnership that propels us into uncharted realms of possibility Photograph by Zagandesign
24 | B W BUSINESSWORLD | 09 March 2024 S A LITTLE KID GROWING UP in America, Danny Meyer loved the tomato sauce his grandmother made. One day after devouring the ketchup, he asked her for the recipe. She gave it to him and then said something which stayed with him. For a long, long time. “Remember this,” she said to the little boy. “The tomato sauce you make will only be as good as the tomatoes you put into it. So get the very best tomatoes you can find. And that’s not all. Take good care of the tomatoes. Once you’ve got the best tomatoes, if you just let them lie in a heap, they could get bruised – and lose their flavour. Take care of them so they retain their goodness.” Danny didn’t think too much about what his grandma said then, but the message stayed with him. Maybe it was the grandma’s sauce that got Danny interested in all things food. He went on to study cooking in France and Italy. He worked in restaurants. And at age 27, he opened his first restaurant in New York city – the Union Square Café. It was an instant hit and redefined casual dining in the United States. Union Square Café has been voted New York’s most popular restaurant a record nine times over the last four decades. That’s solid testimony to their unwavering commitment to delivering great food, great service. Danny went on to set up an array of restaurant chains – including the wildly successful Shake Shack – and is widely regarded as a pioneer in the restaurant business. But there’s something else that’s special about Danny Meyer and the hospitality chain he founded. It has been the birthplace of many of the most successful chefs and restauranters of our times. Several new cafes and restaurants too were conceived while their founders were working in Danny’s chain of restaurants. Union Square Café has become a chef-and-CEO factory for the restaurant business. Many, many industry leaders started their careers here, and attribute their success to the early lessons learnt at Union Square Café. And Danny says he owes his success to the lessons learnt from his grandma and her tomato sauce. Her advice that ‘the tomato sauce will only be as good as the tomatoes’ and ‘take good care of the tomatoes’ have been the cornerstones on which he has built his business. Danny figured quite early that people and businesses are no different from tomatoes and tomato sauce. A business is only as good as the people inside it. And businesses that don’t take care of their people seldom grow to their full potential. As he’s gone about building his business, Danny’s mantra for success has remained the same. Hire the best people you can. And take good care of them. That is such good advice for us all. Whether you are an entrepreneur looking to start up, or a leader in a large organisation, remember the tomato sauce principle. First, hire the best people you can. Hire people better than yourself. As David Ogilvy would tell his agency chiefs “If each of us hires people bigger than ourselves, we will become a company of giants.” And second, take good care of your people. Look after them. Show them you care. It’s worked for Danny Meyer and the Union Square Hospitality group. Could work for you and me too, I reckon. The Tomato Sauce Principle A COLUMN Prakash Iyer : The author is a speaker and leadership coach and former MD of Kimberly Clark Lever PI TALKIES BY PRAK A SH IYER UNION SQUARE CAFÉ HAS BECOME A CHEF-ANDCEO FACTORY FOR THE RESTAURANT BUSINESS. MANY, MANY INDUSTRY LEADERS STARTED THEIR CAREERS HERE
26 | B W BUSINESSWORLD | 09 March 2024 NNOVATION IS, of course, the flavour of the times. As are startups and entrepreneurship. Add a dash of imagination to fuel these and you have a potent mix. Here, then, are some suggestions for off-beat investment avenues and innovative new ventures (equity acceptable as royalty for the ideas!). Tourism is booming, with the post-Covid revengetravel bug proving more powerful and longer-lasting than Sars-Cov-2 beta. It creates many jobs and could bring in substantial forex: both good for the country. But tourism is highly competitive, and success calls for disruptive innovation. Here are a few that are unique, high-potential possibilities. Start a resort – or re-position an existing one – not with the traditional lure of “free wi-fi” but of “free signal jamming” and assure zero connectivity for all electronic devices. Detoxing is no longer limited to cleaning up the results of the junk you ate; it is now more fashionable to do an e-detox and take a break from all electronic gadgets. Highpower corporate executives and CEOs beI ing amongst the biggest sufferers (and complainers), this is a highvalue, high-profitability proposition. A high-intensity ad campaign focussed only on no-connectivity would do wonders. The sceptics who want to also tom-tom the great location and scenic views of their resort may note that automobiles advertise the superb sound system, not the quality of their engine, and mobile phones sell because of their photographic capabilities rather than connectivity or voice-fidelity features. URBAN SAFARIS Urban safaris are another sure winner. Loads of foreigners, unwilling to brave the difficulties of forest living, could be attracted by promoting assured sighting of an assortment of animals right in the urban areas. Not in a zoo or enclosed park, but roaming freely. Delhi roads, for example, offer dogs, cats, donkeys, cows, horses, monkeys, pigs; if you are lucky, you might even see a camel or elephant. Other cities may have more or different animals to offer. In addition, the Delhi urban safari could advertise adventure motoring – the excitement of being driven by a wannabe F1 driver imagining he is in a “Fast and Furious” car chase amidst the heavy city traffic. Those with no heart problems could be offered similar experiences in an autorickshaw. The lucky might even see a (road rage) shoot-out. Adventure tourism at its best! For the techies, here’s an idea that will use their skills: create an app which, based on a photograph of a signboard, can immediately tell you whether a specified language is 60 per cent of the total signage of the business’ signboard. To start with, this could be only for Kannada. However, knowing how good practices are quickly replicated, the entrepreneur should plan to make this available for all Indian languages. The more ambitious could link this with a social media app that will immediately send out the Google pin or GPS location of any deviating establishment to select groups, enabling prompt vigilante action. The more devious could make more money by charging a fee to simultaneously inform TV channels, allowing their crew to be on the spot to record the ransacking of the deviant establishment. Any qualms of conscience could be assuaged by informing the police too (of course, after an appropriate delay). Aspiring entrepreneurs, these ideas should whet your appetite! Imagine, Innovate, and Invest 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. Among his books is Decisive Decade: India 2030 Gazelle or Hippo (Rupa, 2021) n KIRAN’S KONTRARIAN KORNER n By KIRAN KARNIK
Since 1995
28 | B W BUSINESSWORLD | 09 March 2024 Y FIRST ARTICLE in BW (19 November 2022) was titled ‘India Continues to March Ahead’, in which I wrote about ‘share in Global Market Cap, 5G launch, flattering endorsements by Global Biggies, increasing GST collection, surging auto sales and mobile phones production, push on infrastructure and green energy etc. – all indicators of robust economic growth. Since then I have been writing mostly on Sustainability and Inclusivity. For the 13 January 2024 issue I did revert to the India Story but with a twist – focus on the ‘soft aspects’ like sports and life values, sports making inroads into small towns and villages and PwDs taking big leaps in the same, in short, progress at societal level which is equally important for any nation’s holistic growth. This time, after 16 months, I am reverting to hard facts about industry and business; how India is taking centre stage on the global high table and becoming increasingly relevant to all. Towards Holistic Growth The interim Union Budget 2024-25 clearly shows the direction in which we are moving. Most of the announcements point to continuing efforts towards empowerment of all sections of society. Emphasis on infrastructure boost in smaller cities is a great step for ‘widely distributing’ growth that should also help slow down the regular migration from villages to metros and deflect some of it to smaller cities. The scheme for setting up a Rs 1 lakh crore (LC) corpus for pushing entrepreneurship in new-age technologies – including AI, 5G, Quantum computing, Health and Agri-tech – would be a big leap towards holistic growth. Steps like the 10,000 crore allocation for rooftop solar installation for one crore families will boost our decarbonisation agenda and also improve the lives of the underprivileged. The decision to withdraw petty tax demands is also good to help the lower middle class and allow taxation departments to focus on the big evaders. Increasing PLI amount should give a fillip to more industry sectors. Increased Capex plan is of course, a vital move with cascading effect on industry as a whole and creation of new jobs. India at Davos Let me start with the recent World Economic Forum at Davos – the ‘go to place’ for the biggest industrialists, professionals and trade ministers who make this annual pilgrimage to the scenic and freezing town in Switzerland for networking and initiating eye popping deals for investment and joint M India Continues Its Steady March Towards Holistic Growth India-Shining By Krishan Kalra Column
09 March 2024 | B W BUSINESSWORLD | 29 say when questioned about how ‘India was the flavour of the forum’, “It is no more about ‘selling’ the India Story, it is all about listening to us about the opportunities we have to offer”. Similar sentiments were expressed by the Colgate-Palmolive Chairman Noel Wallace during an ‘earnings call’ – his focus being on the spurt in rural demand. Opportunity for Global Investment Starbucks CEO Laxman Narasimhan, told newspapers at his ancestral home in Pune, “Returning to India, after taking over as CEO of Starbucks, has allowed me a ring-side experience of the rapid transformation India has undergone. The infra development here, booming consumer base and widespread adaptation of technology translate to a prime opportunity for bolstering our business here”. Chairman of the big US PE firm, Advent, told the Press in Mumbai on 7 February, “Recent geo-political issues have made India more attractive as an opportunity for global investment”; His co-chair added, “your country has a very talented workforce from a technology point of view”. French company Teleperformance’s CEO Julien made an even more flattering comment, “India is a cornerstone of our global expansion”; this BPM biggie plans to add 60,000 employees to their rolls in India over the next three years. Perhaps the most interesting comment came from Prem Watsa, Chairman Fairfax – the $84 billion Canada-based investment giant, “India’s big advantage lies in the fact that it’s two-thirds economy is consumer oriented”; Fairfax plans to double its present investment in India ($7 billion) within the next five years. Government sources expect almost $100 billion FDI annually over the next few years. Despite all criticism by the Opposition, our newly renovated ‘Religious Hotspots’ – Ayodhya, Golden Temple, Hardwar, Jagannath Puri, MathuraBrindaban, Rishikesh, Tirupati, Ujjain, Vaishno Devi and Varanasi – may well attract lots of tourists – both domestic and international – perhaps surpassing the traditional Delhi-AgraJaipur triangle ventures. The Indian Squad midJanuary included Chandrashekharan, Sunil Mittal, Gautam Adani, Sajjan Jindal, Rishad Premji, Sanjiv Bajaj, Union minister for Railways Ashwini Vaishnaw and the Reserve Bank of India (RBI) Governor Shaktikanta Das. Global big ones – whom they would’ve interacted with – Nadella, Altman, Krishna of IBM, Ruth Porat, CFO Alphabet and many others. And, here are some comments: KKR chief Henry Kravis “the world is astounded about how India is supremely confident and growing at 7%+”; he also shared his immediate plans “from 2009 to 2014, our total investment in India was only $10B whereas we are looking at the next 10B coming in very fast”. Klaus Schwab, Founder and Executive Chairman of WEF added (to Kravis’s point) in a recent article “while rest of the world is struggling with pessimism due to geo-political hostilities, sluggish economies and crisis management”. In the same tone as the KKR chief, Bain Capital’s Asia Head chipped in with a more precise time frame “we will invest $10B over the next 3-5 years”. Let me quote what our own indomitable telecom czar Sunil Mittal had to Photographs courtesy: PIB
30 | B W BUSINESSWORLD | 09 March 2024 India-Shining By Krishan Kalra Column FDI Flows and Investment Back home, regular flow of commitments for investment and tie ups with global majors continues. Let me first touch semiconductor chips – that need enormous sums of FDI and where I see light at the end of the tunnel! Micron’s Sanjay Mehrotra mentioned early in January that their $2.75 billion memory chips plant at Sanand Gujarat, in partnership with the Tatas, is expected to start production early in 2025. In December, Tower of Israel – the world’s seventh largest chip maker – submitted a revised proposal to set up a 65 nm and 40 nm chip fabrication unit in India. There are plans to modernise – at a cost of $2 billion – our own old SCL plant at Mohali. Currently it can make only 180 nm chips whereas the world has moved to 10nm. Incidentally SCL started manufacturing chips way back in 1984 – three years before the world’s number one TSMC, with an eye popping annual revenue of $17 billion. (Incidentally, Samsung, the second biggest, does a distant 3.5 billion). Global revenue of chip makers is about 28 billion, so TSMC is clearly the king. Following the Tatas, HCL is reported to be tying up with Foxconn for chip manufacture; they plan to invest $37 million to set up a chip packaging and testing factory. One keeps getting good news about Apple’s phone production plants moving from China to India in small tranches. Foxconn – their largest contract manufacturer – with their present mobile phones revenue in India nudging $10 billion is likely to jack it up significantly. Wistron has made a deal to sell their Karnataka plant to Tata Electronics – making the Tatas the first Indian company to make iPhones. On another front, we are set to kick off three mega defence production projects worth Rs 1.4 lakh crore. Major Hub for Civil Aviation The projects include an aircraft carrier, Tejas jets and Prachand choppers. Good news continues to pour in on the travel front. With the big boom in the numbers that travel by air, Akasa – our youngest airline – has placed orders for 150 Boeings. Air India and Indigo already have gigantic orders for 700 new aircraft from Airbus. To make India a major hub for civil aviation, Tata and Airbus are teaming up to make helicopters for civilian use and Thales of France will set up an MRO (Maintenance, Repair and Overhaul) unit. There’s robust progress on the agro and horticulture front too. Food grains production rose four per cent over the 2021-22 figure of about 350 million tonnes. Horticulture produce increased by one per cent (five million tonnes). A notable item was the big jump in Kashmir saffron price to Rs 3.25 lakh/kg, making it a hot market for buyers from the US, Canada and Europe. This saffron which
09 March 2024 | B W BUSINESSWORLD | 31 Israel- Hamas conflict, Houthis’ attacks in the Red Sea affecting transit of oil tankers. Disasters caused by Climate Change and lack of inclusivity. Considering that our per capita GDP is just $2,300 (under Rs 2 lakh) CEO compensations touching Rs 100 crores or more are an avoidable provocation and a sore thumb in society. It hurts to read that our rank on the per capita income index is a shameful 139 in the world. Yet, Miles to Go A well-known economist recently said that ‘post covid high end goods have seen faster growth whereas there’s dip in case of lower end ones’. Notwithstanding many forward steps in the area of chip manufacture – and the Indian chip market expected to be around $100 billion (Rs 8.25 lakh crore) as well as availability of Rs 2.3 lakh crore worth of incentives to position India as the global hub for electronics manufacturing, our progress is just not fast enough in this very complex, very long gestation, very high cost sector monopolised by TSMC and just a few others. In the case of the automobile industry – our pride – let’s not forget that imported cars attract 125 per cent customs duty and so our indigenous production has huge protection and, as Arvind Panagariya recently wrote, “it is not standing on its own four wheels”! Latest ASER (annual status of education) report shows a poor picture of education in rural areas. There is unabated rise in road deaths; student suicides and serious crimes like rape and murder. A large proportion of our society is yet to mature in any significant manner and that can happen only with a thorough overhaul of a holistic education system. Of course, our public health infrastructure too needs major upgradation. Back home, regular flow of commitments for investment and tie ups with global majors continues. Let me first touch semiconductor chips – that need enormous sums of FDI and where I see light at the end of the tunnel! infrastructure upgradation is already happening in all these cities and more, including hotel proposals by big chains that are in the pipeline. Having mentioned many signs of hope, inevitably there are huge challenges too. First, there are the geopolitical issues – Russia-Ukraine war, is the only one to get a GI tag, should pose a challenge to the products from tradional sources like Spain, Iran and Afghanistan. Religious Hotspots There are several other hopeful signs too. Goods and Services Tax (GST) collections continue to be on the rise. As per the CBIC chairman FY2024-25 should see an average monthly inflow of Rs 1.7 lakh crore. News about the proposed sale of Brookfield’s 1.6 GW clean energy assets in India (out of their total inventory of 20 GW) at an enterprise value of $1-1.2 billion translates to a pricing @ 70 cents per peak watt which is lower than the current fossil energy figure of over one dollar. Granted that these are old assets, it is nevertheless a very attractive cost for anyone looking at setting up solar farms. Despite all criticism by the Opposition, our newly renovated ‘Religious Hotspots’ – Ayodhya, Golden Temple, Hardwar, Jagannath Puri, Mathura-Brindaban, Rishikesh, Tirupati, Ujjain, Vaishno Devi and Varanasi – may well attract lots of tourists – both domestic and international – perhaps surpassing the traditional Delhi-Agra-Jaipur golden triangle. People visit these pilgrimage centres for both happy and sad occasions, so demand is constant. Lot of The author is member, national advisory board Sarthak, president NAAI and trustee, Climate Project Foundation. He is past president of AIMA and member BOG, IIMC Photograph courtesy: Sansad TV Photograph by PixelB
32 | B W BUSINESSWORLD | 09 March 2024 NMDC’s Chairman and MD, AMITAVA MUKHERJEE, discusses the company’s exceptional performance in FY24, driven by solid financial growth and record iron ore volumes and more By Tarannum Manjul What are the key drivers behind NMDC’s exceptional third-quarter performance in FY24, marking its strongest period to date? A solid financial performance with a growth of 25 per cent in turnover and 29 per cent in PBT coupled with the company’s highest ever iron ore volumes in Q3 has set the stage for new milestones in FY24. We have already crossed the 40 million tonne mark and are geared up to achieve the best ever iron ore production in the history of NMDC and India, as we conclude this financial year. A rapid surge in domestic steel demand in tune with the country’s overall GDP growth trajectory is a key driver of our performance. THE BW REAL 500 IN CONVERSATION “RECORD TURNOVER, SUSTAINABLE MINING, TECH-DRIVEN EFFICIENCY FUEL NMDC’s PROGRESS”
09 March 2024 | B W BUSINESSWORLD | 33 We are strategically positioning ourselves to meet the demand for raw material by ramping up production capacities and enhancing supply chain reliability. It was in FY24, that we operationalised the Kumar Marenga stockyard, built responsibility centres within the organisation to exclusively focus on production and capacity building verticals, and rearranged certain operational practices to become more efficient. We are taking advance action to cover long lead equipment upto two years, so machinery that has to be replaced in 2026 will be ordered now to stay ahead of the cycle time. One of our major iron ore mines, Deposit 14 in Bailadila that was mining in two shifts earlier is now working in three shifts with an additional dumper fleet. Our team is starting to think, plan and operate in a way that a 100 million tonne company would! In the pursuit of sustainable mining practices, how is NMDC integrating environmental considerations into its operations and ensuring responsible mining? As a state-owned company, we aim to contribute meaningfully to climate change mitigation and meeting the Sustainable Development Goals set for the industry and the country at large. In our endeavours towards responsible mining, technology has played a defining role in making NMDC ecoconscious and energy efficient. Small measures such as using dust-suppression solutions, enclosure of transfer houses and replanting the slopes have gone a long way in building mines that are sustainable and 5-Star rated. We take pride in being an energy conscious mining company. Our greenhouse gas (GHG) inventories to monitor energy consumption have ushered positive results with NMDC reducing its average total per tonne GHG emission intensity by 24 per cent in the last decade. And, it is also encouraging our transition to greener and cleaner sources of energy. Towards the national goal of creating carbon sinks, NMDC conducts afforestation drives, ecological monitoring and is a key participant of the Green Action Plan guided by the State Forest Departments. Efficient use of resources, minimising waste, and ensuring biodiversity conservation have been serving our commitment to responsible mining for decades. Our motto is to mine in harmony with nature. With technology playing a crucial role in the mining industry, how are technology-driven initiatives and innovations enhancing efficiency and safety at NMDC? In early 2021, NMDC was the first public sector company in India to go live on the SAP S4-HANA platform for resource planning. Progressing on our digital roadmap, technology indeed has revolutionised the way we do operate. A seamless integration from mine exploration stage to data analysis and interpretation, development and operation, to mine closure with information travelling from the Pit to Boardroom in real-time is how we are able to make timely and effective decisions. Automation in mine planning, plant and machinery maintenance, capturing of production and dispatch data are definite means to enhance efficiency. While data collection at source for statutory compliances and an easy retrieval of history of events to develop AI/ML models for predicting vulnerable location, equipment and personnel reinforced our commitment to - Safety First. A groundbreaking outcome of building a digital architecture at NMDC is that we have access to the big picture at all points of time. This visibility of the company’s overall performance inspires our future expansion plans while the experiences and learnings that have come our way gives us the confidence to take the leap of faith towards ambitious projects and new ventures. Intelligent equipment like the Fleet Management System, Rapid Wagon Loading System and Drones for exploration are building a more efficient and responsible industry and we are happy to be holding the digital baton for the domestic iron and steel sector. How is NMDC engaging with local communities in the regions where it operates, and what initiatives are in place for social development and welfare in these areas? Over the decades, NMDC has built a meaningful relationship with its host communities. Our engagement with the people of Bastar in Chhattisgarh and Bellary in Karnataka goes beyond the call of duty. What makes the social initiatives of NMDC unique is that we identify the needs and concerns of people, deliberate with them and then come up with CSR interventions. Recognised as a model Public Sector Enterprise in CSR, our Stakeholder Consultation Mechanism has been endorsed by the Department of Public Enterprises, Government of India for emulation by other CPSEs. [email protected]
34 | B W BUSINESSWORLD | 09 March 2024 INVESTIGATION CORPORATE NSE PHONE TAPPING CASE REVISITED
09 March 2024 | B W BUSINESSWORLD | 35 Was Sanjay Pandey, the former Mumbai police commissioner, a fall guy in the alleged NSE phone tapping matter? Piercing the veil, court documents reveal the inherent fallacy of a case that is going nowhere By Palak Shah Stock Exchange of India Ltd. Photograph courtesy: National
36 | B W BUSINESSWORLD | 09 March 2024 EARLY FOUR YEARS HAD passed after the Central Bureau of Investigation (CBI) registered its first information report in 2018 in the co-location trading scandal at the National Stock Exchange (NSE). The premier investigative agency had failed to make any headway in the co-location matter due to lack of sincere efforts. But the sleuths were forced into action as the case gathered steam on the back of outlandish confession by NSE’s former MD and CEO Chitra Ramkrishna, who when caught passing crucial exchange information to an outsider, said she was giving it to a mystic Himalayan Yogi since he was helping her run the exchange. Following Ramkrishna’s clumsy slip-up during her interrogations by market regulator SEBI, when the CBI officials landed at the NSE premises in Mumbai for a search, they found records of the exchange having disposed of an automatic voice recording machine in 2019 as e-waste. This fuelled the narrative of illegal phone tapping at NSE. The machine was supplied to NSE by ISEC, a company promoted by IPS officer and former Mumbai police commissioner Sanjay Pandey, a techie. The CBI came across details of payments by NSE to ISEC, for transcribing telephone calls located within the exchange premises. Pandey had started this company when he was out of public service. As a digression from the co-location scandal and unmasking the real face behind Ramkrishna’s mysterious Yogi, the CBI in July 2022 booked Pandey for illegally tapping phone lines inside NSE premises since 2009. Next came the Enforcement Directorate (ED). Moving in swiftly and wielding the law with an iron fist, the ED arrested Pandey on money laundering charges for benefiting from ISEC’s professional fees, which two of India’s prime investigative agencies presumed was through the alleged act of illegal phone tapping at India’s largest stock exchange. But was it a conspiracy as big as was made out? A meticulous research and study of the court documents, in possession of BW, reveal that NSE was in the habit of recording internal phone lines at its BKC headquarters since 1997, more than a decade before Pandey’s company ISEC came into the picture. The Documents Trail Documents show that NSE had first given a contract to install a digital voice recorder (DVR) system inside its premises in 1997 to a M/s ComTel (the name of the company itself is a testimony that it was involved in telecom equipment related work) with a view to record phone conversations. Original copy of the initial approval by NSE for the installation of a 16-port DVR set-up at a cost of Rs 4,08,500 was signed by Ramkrishna and her subordinates Bhupesh Mistry, Mahesh Haldipur and S.B. Thosar. Not only NSE, ComTel had even supplied DVR equipment in 1998 for the National Securities and Clearing Corporation (NSCCL), the trade clearing and settlement arm of the NSE. The approval for the same had signatures of NSE’s then MD Ravi Narain along with Mistry, Haldipur and Thosar. Later, ComTel had also installed AVR systems to tap NSE phone lines. From 1997 up to 2009, ComTel won several such contracts from the NSE for installation of systems, some of which could record the phone lines and for which huge money was paid to the company. Yet, the CBI and ED’s suspicion fell only on ISEC and Pandey and he was made a kingpin of the phone tapping scandal at NSE, shortly after he retired as city police chief in 2022. The agencies alleged that ISEC illegally intercepted the MTNL lines at the NSE between 2009 and 2017 and recorded calls of various NSE officials. CBI alleged that ISEC was monitoring and analysing such calls and sending CHITRA RAMKRISHNA, Former MD & CEO, NSE Ramkrishna and her subordinates at NSE had signed the initial approval for the installation of a 16-port DVR set-up at the exchange INVESTIGATION CORPORATE Photograph by Sanjay Sakaria
09 March 2024 | B W BUSINESSWORLD | 37 out (by the agencies). As per a circular by market regulator SEBI, even stock brokers are required to record all their phones where conservation happens with clients and the same has to be preserved. Further, the court observed that for an offence of cheating to establish, there must be a dishonest intent to cause a wrongful loss or wrongful gain or an intention to defraud. “In the present case, there was a business arrangement between ISEC and NSE by virtue of a contract under which the entire work was being executed. NSE has been involved in callrecording since 1997 through other vendors such as M/s Comtel, prior to ISEC being brought into the picture to analyse recorded calls. Since call recording was being done prior to the arrival of ISEC, there is no criminal conspiracy entered into between ISEC periodic reports to the NSE, which was an offence. Although ISEC was providing cyber security related services, the ED termed the revenue of Rs 4.54 crore generated by ISEC through its legitimate contract as the proceeds of crime and made out a case of money laundering. This was in stark contrast where the investigative agencies have failed to act in the co-location case against researchers who were extracting data from the NSE on ‘fake contract papers’ that had no date, sign or stamp. What The Court Observed In the bail order of Pandey in the ED case, Justice Jasmeet Singh of the Delhi High Court said, “I am of the view that in the present case, no scheduled offence is prima facie made out, concomitantly there cannot be proceeds of crime having been generated as there is no criminal activity relating to a scheduled offence. Until 2012, such call-recording took place via a system installed by one M/s Comtel.” The CBI alleged that ISEC illegally intercepted MTNL lines at NSE between 2009 and 2017. Previously, the Supreme Court judgement had held that phone-tapping or wiretapping is an invasion of privacy under Article 21 of the Constitution. The Indian Telegraph Act and Indian Wireless Telegraphy Act deal with tapping and recording phone calls without consent. But ISEC was recording phone lines owned by NSE inside its premises under a contractual agreement with the exchange. A diagram attached by the CBI in its charge sheet showed that phone lines were being recorded at NSE’s private set-up known as EPABX room and not the room with MTNL connections. The court observed that invocation of Sec. 72 of the IT Act is only limited to breach of confidentiality and privacy, which offence was not made What The Judge Said Observations of Justice Jasmeet Singh of Delhi High Court in Sanjay Pandey's bail order “The entire prosecution is silent on the identity of the victim who has suffered a wrongful loss. There is nobody named in the prosecution complaint who has been deceived or cheated. Nobody has been named to whom a wrongful loss has been caused and as to what is the wrongful loss. Except for a bald averment that various customers have been cheated, the complaint is totally silent on the name of the customers, the way and manner that they have been cheated. “The primary ingredient for Section 420 IPC (which is a PMLA Scheduled Offence) is the dishonest inducement or deception to deliver any property. Cheating under Sec. 415 IPC lays emphasis on the phrase ‘dishonestly or fraudulently’ thereby meaning that for an offence of cheating to establish, there must be a dishonest intent to cause a wrongful loss or wrongful gain or an intention to defraud. In the present case, there was a business arrangement between ISEC and NSE by virtue of a contract under which the entire work was being executed. “The prosecution case fails to satisfy the ingredients of criminal breach of trust as defined in Section 405 of IPC, since there is not even a whisper therein of any ‘misappropriation of property’. Further, the prosecution case is also completely silent on there being any wilful loss caused to any person either by ISEC or Sanjay Pandey.” RAVI NARAIN, Former MD & CEO, NSE Narain, as MD of NSE, had in 1998 given approval to ComTel for supply of DVR equipment for NSCCL
38 | B W BUSINESSWORLD | 09 March 2024 and NSE with the intention of committing an illegal act, namely, call recording,” the court said. Moreover, the court also observed that ISEC duly showed amounts in tax returns and paid income tax on said income. “Therefore, I find merit in submission that contractual compensation of Rs 4.54 crore for services rendered cannot amount to a ‘pecuniary advantage’ in terms of the PC Act (Prevention of Corruption Act). No call recordings were ever entrusted to Pandey on account of his capacity as a public servant,” Justice Singh observed. How Pandey Made Powerful Foes A 1986 batch Indian Police Service (IPS) officer, Pandey graduated from IIT Kanpur (1979-1983) where he completed his Bachelor of Technology in Computer Science. When the stock markets were rocked by the multi-crore fake demat accounts scam in 2006 at the National Securities Depository (NSDL), the then SEBI chief M. Damodaran roped in Pandey to investigate the technology lapses at India’s largest share depository. Pandey was meticulous in detailing the procedural and technology lapses at NSDL. His report, which was crucial evidence of NSDL’s hollow and mediocre standards, was so incriminating against the depository that it got suppressed with the brutal force of politico-bureaucratic nexus. A few privy to the NSDL investigations say that Pandey was stonewalled in his probe by those in the upper echelons of power amidst absolute lack of cooperation by NSDL’s top management that enjoyed a strong backing from then finance minister P. Chidambaram. As a DCP in Mumbai in 1997, Pandey took on his political bosses, when entrusted with investigations into the Shoe Scam or the Cobbler Scam, where hundreds of crores of rupees meant for cobblers was siphoned off by politicians, bureaucrats and shoe manufacturers. While he was still probing the scandal and getting close to the key culprits, Pandey was transferred outside of Mumbai city. When on central deputation, Pandey served in PM Atal Bihari Vajpyee’s Special Protection Group (SPG) tasked with the PM’s security. Pandey launched ISEC when he remained shunted out of police force and returned to job when the courts granted him relief, post a long battle against the Maharashtra state government. Pandey’s long list of enemies only grew after he was appointed the Mumbai police commissioner in 2022, as he was the seniormost IPS officer in Maharashtra. He was tasked with investigating a high-profile case involving another powerful IPS officer, who had levelled charges of corruption against former Maharashtra Home Minister Anil Deshmukh. Pandey was instrumental in filing FIRs and conducting enquiries against his predecessor, who was the Mumbai police commissioner during the bomb scare incident outside billionaire Mukesh Ambani’s multistorey home. Under Pandey’s tenure in 2022, before he was arrested in the NSE phone taping case, the Mumbai police also registered a slew of FIRs against powerful politicians for misappropriation of public funds and alleged bank frauds. “June 1 is your time, July 1 will be ours,” a powerful Mumbai politician had told Pandey, just a month before his retirement from the police force and subsequent arrest in the NSE phone taping case. Pandey got bail from the Delhi High Court but his case has lingered in the higher courts. [email protected] The About-turn How the CBI in its charge sheet filed on 22/12/2022 has dropped major sections and completely changed the story of illegal telegraph which was made out in the FIR a. Illegal telegraph (Section 20, 21, 26 have been dropped) to Interception (added Section 25) b. Dropped wireless telegraphy as they realised no wireless telegraph was used c. Section 420 IPC has been dropped as there was no complaint by any one d. Added Section 201 of IPC (destruction of evidence) e. Dropped Section 72 and added Section 72 A of Information Technology Act f. Added Section 13(1)C of PC Act INVESTIGATION CORPORATE
09 March 2024 | B W BUSINESSWORLD | 39 S ri City epitomises a world-class Business City built on principles that solidify its position as one of India’s most coveted business destinations. Located at the southern end of Andhra Pradesh, just 55 kilometres from Chennai, this city has attracted some of the biggest multinational household names from across the globe such as Cadbury (Mondelez), Kellogg’s, Alstom, Colgate, Isuzu, Pepsico, Foxconn, Daikin, Tata, among others. The success of any business hub is entrenched in a web of many factors. Factors that must cohere to bring forth accomplishments. Location Is Paramount Sri City’s strategic location seamlessly connects it to National Highway-16, two airports with cargo terminals, four deep-water ports, and the national railway, playing a significant role in benefitting the business ecosystem of the city. Integrated Business Model The success of Sri City lies in its integrated model of development. Specialised zones including a Special Economic Zone (SEZ), Domestic Tariff Zone (DTZ), Free Trade Warehousing Zone (FTWZ), and Electronics Manufacturing Cluster (EMC) along with a robust Social Infrastructure Zone, make the concept of Work-Live-Learn-Play effortless in its development. Infrastructure Excellent internal road networks along with round-theclock power and water supply, sewage treatment plants, efficient stormwater drainage, logistics bays, ready-built and built-to-suit factory options, plug-and-play facilities are at par with global standards. A Diverse Industrial Landscape 220 companies representing 29 nationalities call Sri City home and employ over 60,000 people, most of them women. Sri City is the second-largest Japanese Industrial Township with over 30 companies from Japan. Companies in Sri City produce an array of products ranging from chocolates to metro train sets, from electronic goods to cars, among many others. Noteworthy is the existence of 14 Fortune 500 companies and 85 international brands. Fortyeight of the 220 companies have set up greenfield operations in Sri City. The presence of six major Air Conditioner OEMs and their suppliers makes Sri City the ‘Cool Capital’ of India, poised to contribute 50 per cent of the ACs manufactured in India. Sri City weaves an intricate fabric of business development and sustainability, credit for which lies in the leadership and vision of its Founding Managing Director, Dr. Ravindra Sannareddy. He has led the city’s development from conception, incorporated state-of-the-art water and waste management practices, and promoted the usage of renewable energy, driving Sri City into a direction which has made it a case study for urban planners, government bodies, and diplomats. The city is IGBC Gold rated and is ISO 9001 and 14001 certified for its quality as well as Environmental Management Systems. Dr. Sannareddy has played a pivotal role in transforming this once backward region of Andhra Pradesh into a thriving hub of socio-economic prosperity and environmental stability. nemployment. One of the chief thrusts of MEs is to regulate and provide a platform to e vulnerable groups of the society as the main ivers and empower the women and the youth start their enterprises. mall enterprise promotion has continued to main an important and integral part of Indian evelopment strategy well before the First Fiveear Plan. However, the sec tors faces nforeseen challenges. Some of the most ersisting constraints facing the sector, ominated by smaller units in the informal ctor, include poor or non-availability of loan nance, low levels of technology, inadequate hysical and economic infrastructure and sources to invest in quality search and adopt ew technology, and a policy of product servation for small scale industries. Poor onitoring of implementation and e�ect of rious small �rm policies has been an issue of oncern. The larger enterprises o�er a sti� ompetition to the small scale units in the sale fo u t p u t. Ap a r t fr o m t h e s e m a j o r mpediments, the sector faces a number of her problems like ine�cient management, on-availability of cheap power, burden of local xes, shortage of working capital and lack of emand for the products. The list is endless. MEshaveemergedasavibranttieroftheeconomy as they have already taken over as key contributors to country's GDP. The new shout out is the Make in India Campaign. Owing to the launch of �agship Make In India Campaign, Prime Minister Narender Modi has given way to a new national program designed to facilitate investment, cultivate innovation , augment pro�ciency in skill development, protect intellectual property and build Best-in-Class manufacturing infrastructure, there has never been a better time to make in India. India's small and medium-sized industries can play a big role in making the country take the next big leap in manufacturing. India should be more focused towards novelty and innovation for these sectors. The government has to chart out plans to give special sops and privileges to these sectors. As clearly seen, the hindsight and the future vision of SME's cannot be simply considered a smaller version of their larger counterparts as they have di�erent managerial styles, scale of operations, levels of independence and decision making characteristics. However these di�erences do not eliminate the opportunities of SME's to internationalize and gain �ight in the global market. SME sector development will continue to spread its wings and be an integral part of the development thrust and promotetheentrepreneurialcultureSRI CITY, Where Businesses Converge And Thrive Located at the southern end of Andhra Pradesh, just 55 kilometres from Chennai, this city has attracted some of the biggest multinational household names from across the globe Dr. Ravindra Sannareddy, Founder Managing Director, Sri City
40 | B W BUSINESSWORLD | 09 March 2024 “RECENT TARIFF RATIONALISATION WILL FUEL EXPORTS OF ELECTRONICS” At a recent IESA summit, you brought up the topic of India-based IP for semiconductor companies. If you could elaborate on your vision for this? If you look at the whole semiconductor manufacturing ecosystem in the Indian context, an important chunk of it relates to design. We have large human resources working on design. We have both design engineers and startups, and both of them work for some other large company or brand that takes the product IP. Then, this workforce, either as employees or under an outsourcing agreement, designs it. There are a lot of reasons for it - building a brand has a cost, there is a risk of it failing, and so on. Hence, it is much easier to manufacture for somebody else. So my point is that why don’t we create some products and make them available for others? Most of our IT companies offer software services, they don’t create a product. This will facturing has been taking place and you need materials, facilities etc. So, even if you are going to move across national borders, you have to ensure that there is movement to the jurisdictions that are trusted. It has to be a very nuanced approach; in the process of transition, we will need to collaborate with a wide range of stakeholders. How is MeitY looking at the regulatory and ethical aspects of technologies such as AI and Quantum Computing? Deepfakes seem to be an immediate problem to address. Can we expect substantial steps from the government to curb it? The AI debate has brought the realisation that misrepresentation is real, especially for democratic societies. My personal opinion is that the law as it stands today can be used to curb some of these things. Deep fakes are also nothing but misrepresentation. The only difference is that it is much more sophisticated and more difficult to detect as better technology is used. What we really need to be equipped for is to find ways of taking down such content much faster. In such situations, it is critical to address them quickly. Currently, we don’t have the provision of labelling content, and we may have to look at the law to bring it in. Labelling makes it easy for people to identify what is real and what is artificially created. At present, a lot of content is going without labelling, and one cannot tell the difference. This actually results in people ultimately not trusting anything, even if it is genuine. The government recently expressed concern about big tech monopolies with respect to revenue sharing with news publishers. What is the ministry’s take on this? Yes, this issue has been brought up by associations of digital news players who have expressed concerns over IN CONVERSATION MeitY Secretary S. KRISHNAN speaks to BW Businessworld’s Arjun Yadav on the government’s vision for semiconductor manufacturing, the legal framework expected around AI-generated content and boosting India’s export competitiveness not happen overnight, but a start is needed. Best selling author Chris Miller recently talked about how taking China head-on isn’t the best strategy when it comes to chip manufacturing. How do you read this statement? Again, it has to be seen in context. If we are relocating an industry into India and if India is one part of this diversification of the value chain, then how much of it can be done by completely cutting out China? Even a Taiwanese company, a Korean company or an American company that has a manufacturing base in China, when they have to diversify away from China, what they will do is uproot from there and come and establish somewhere else in India or Vietnam. But again you would need people from China to reestablish at the new location because that is where the manu-