05 NOVEMBER 2022 BW BUSINESSWORLD

www.businessworld.in STARTUPS@DEFENCE

RNI NO. 39847/81 I 05 NOVEMBER 2022

HAL TEJAS

MAKE IN INDIA

THE EARLY
TRAILBLAZERS

Rs 150 CUTTING-EDGESTARTUPSARETHE

BRIGHTSPARKSININDIA’SEMERGING

DEFENCEINDUSTRIALCOMPLEX

INSIDE M.K. RISHAD KAIRUS
STALIN, DADACHANJI, DADACHANJI,
CM, Tamil Chairman,
Nadu MD, Dadachanji
Dadachanji Group

Group









EDITOR-IN-CHIEF’S NOTE

THE BUSINESS OF DEFENCE

ANNURAG BATRA THE POLITICAL MANAGEMENT of defence is a high point for the Narendra
Modi government. It has shown the willingness to use the military as an
 [email protected] instrument of statecraft. The defence sector reforms undertaken by it have
been the most significant since India’s Independence. Of great salience is
the Aatmanirbhar Bharat agenda for defence production. Outcomes in the
defence and aerospace sector could well be the most visible indicators of the
success of the Make in India initiative.

Apart from aiming for strategic autonomy to be able to produce weapons
indigenously, India now also seeks to leverage the annual $70 billion spend on
defence for larger economic good by making the domestic economy the biggest
stakeholder in the programme, which is how defence spend through the Make
in India prism becomes a public issue. Earlier this year, India amended its
Defence Acquisition Procedure, barring routine military equipment imports.
The Union Defence Minister will now be required to approve exceptions to
this rule in case of critical operational necessity. The decision conveys the
seriousness of the government’s intent to finally walk the talk after the tepid
industry reponse to its earlier indigenisation efforts.

The Third Negative Import List signals that for the Union government,
there is no going back now. The list takes the tally of military equipment
barred for imports to 310. These lists aren’t symbolic. They include top-end
military platforms and weapon systems, providing a $27.7 billion push to the
domestic arms industry. To give momentum to the Make in India policy, the
government has announced funding for prototype development of 14 major
platforms and weapon systems under the Make 1 procurement category
that had been on the books since 2006, but were never acted upon. Defexpo
2022, India’s biggest biennial arms exhibition for land, naval and homeland
security systems, is being held in this backdrop of heavy policy intervention
in the Prime Minister’s home state of Gujarat from 18 – 22 October. The
event merits a moment of reflection on the progress made in India’s Military
Industrial Complex, and the way ahead.

In this special edition, we profile exceptional new players who have brought
cutting-edge capability in defence production. For this intrepid breed of
industrial warriors, success is determined not by the outcome of their
campaigns in the Indian market but on the global stage as exporters. They’re
not arms traders or rent seekers for global OEMs but developers of technology.
They are the harbingers of change in the arms bazaar. This congregation of the
global arms industry takes place in the shadow of the war in Ukraine. Read
our analysis of how India not only walks the diplomatic tightrope, but gets to
observe the performance of weaponry similar to that of the Russian military.

Lastly, the Modi government deserves credit for putting an end to a culture
of scandals in defence deals. For us in the media, at long last, coverage of
defence is no longer about reporting scams. That’s a good note to sign off on.
Happy reading!

6 | BW BUSINESSWORLD | 05 November 2022



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NOT FOR RESALE I
RNI NO. 39847/81 I
22 OCTOBER 2022

Festive LUThXoUugRhtYful BUILDING A LOYAL FAN BASE
Sparkle Spotlight: Beauty entrepreneur
Returns Katrina Kaifonthegrowthofher This refers to the editorial (“Customer
brand Kay Beauty and sectoral trends Understanding Of Luxury Retail Is Changing
Rs 150 And For The Better ”, BW, October 22). The
author rightly points out that luxury retail, often
TALKBACK BLIPP defined by lavish and elite consumption habits, has
THIS PAGE returned to pre pandemic levels with a considerable
Submissions to BW |Businessworld TO GIVE US shift to online platforms which has aided India’s
should include the writer’s name and YOUR FEEDBACK luxury e-commerce boom. This coupled with a surge
address and be sent by email to the INSTANTLY in consumption on account of the festive season
editor at [email protected] and mega sales announced by large e-commerce
or by mail to 74-75, Scindia House, platforms has helped augment growth for luxury
Connaught Place, New Delhi-110001 retail. It goes without saying that India being a
heterogeneous economy, there is a huge cross-
cultural impact on luxury purchases. Hence, it is
imperative for brands to understand all aspects
including income, buying patterns of urban and
semi-urban areas, as well as socio-psychographic
demographics as culture continues to dominate
several journeys. It is heartening to know that a
customer-centric approach with the right business
model will help luxury retail and online platforms to
stand out and build a loyal fan base.

SUSHMEET SIDDHU, EMAIL

SUSTAINABILITY AND LUXURY

This refers to the editorial (“The Indian Luxury
Market Is Heavily Driven By Gifting and Self-
Consumption ”, BW, October 22). The article
dwells on how the luxury market has changed over
the last few years. In the past, sustainability and
luxury were considered oxymorons, but with the ever
evolving market, there has been more discussion on
being socially and environmentally responsible. It
is good to know that brands have started studying
local markets and are offering creations inspired by
different cultures of the world.

SIDDHARTH ARYAN , EMAIL

10 | BW BUSINESSWORLD | 05 November 2022



CONTENTS

VOLUME 42, ISSUE 01 05 NOVEMBER 2022

INDIA READY FOR
AATMANIRBHAR TAKE-OFF

Photo courtesy: DVIDSHUB portfolio expansion to chart consistent- 52
growth
14 Jottings Self-reliance in
46 In Conversation Defence: Home-
Ex- IAF chief to pilot UP Defence Corridor; grown Heroes
Heavy sits the name; Men of the hour; Still a Tamil’s Nadu CM M. K. Stalin on the
distant dream, and more post-Covid scenario, focus on renewable How a handful of cutting-
energy and chip manufacturing, ease of edge startups are lighting
16 Columns doing business in the state, and much up the landscape as India
more seeks to reboot its military
Vikas Singh (p. 16); Kiran Karnik (p.18); industrial complex to achieve
Minhaz Merchant (p. 20); Srinath 58 Underwater Weapons self-reliance
Sridharan & Venkatesh Mahadevan (p.
21); Amit Kapoor & Akshay Bhambri (p. Commodore Anil Jai Singh (Retired) Cover design by DINESH S BANDUNI
26); K. A. Narayan & Sunandan Bhanja makes a case for replicating the BrahMos Cover photographs courtesy:
Chaudhury (p. 28); Raghav Chandra (p. model in developing capability in TEJAS: HAL/Ministry of Defence
30); Jayesh Shah (p. 32); Amit Tiwari (p. underwater weapons
34); Hardayal Singh (p. 36); Noor Fathima
Warsia (p. 38); Ravi Kawal (p. 44); Chaitra 62 Maritime Might
Harsha (p. 50); Kaushik Prasad (p. 94)
The commissioning of INS Vikrant
40 Crompton Course catapults India into the club of elite navies
even as it marks a major milestone in
A look at how Crompton Greaves Consumer self-reliance and indigenous manufac-
Electricals has followed a multi-pronged turing
strategy of acquisition, innovation and

12 | BW BUSINESSWORLD | 05 November 2022

74 US U-turn

The US has revived its
2019 offer to jointly
develop the AMCA
fighter jet engine with
India, overriding
‘export control
concerns

Photo courtesy: Ministry of Defence

66 Falling in Place 80 IAF as a Space Force 92 Big Bet on Biologics

The agenda for self-reliance in defence Air Chief Marshal Vivek Ram Chaudhuri makes Shreehas Tambe writes that with
production is being driven with purpose a compelling case for the IAF to evolve into an originator biologics worth over $70
and the ecosystem is rapidly falling in air and space force, as space assets will be billion scheduled to lose patent
place for the big leap ahead targeted by adversaries and military exclusivity over the next five years,
outcomes in space will determine victory in biosimilars present a large and
70 In Conversation future wars important opportunity for the global
pharma industry in general and India
Salil Gupte, President, Boeing India on 88 Bullish on Pharma in particular
Make in India, defence manufacturing,
what the Indian government and According to the Economic Survey 2021, 96 Gadget Review
Boeing expect from each other, the India’s pharmaceutical sector, which stood at
need for clarity on a business case for $42 billion in 2021, is set to touch $64 billion A head-to-head comparison
foreign OEMs, and more by 2024 and expectedly $130 billion by 2030 between three TWS products that
are judged for their design, comfort,
72 Saab’s Gambit 100 and performance

Make in India drive moves apace as Last Word 98 In Top Gear
Sweden’s Saab plans to create a
manufacturing facility for the latest M4 Former financial Anil Razdan writes there are all
variant of the iconic Carl-Gustaf advisor in MoD indications that the auto industry will
anti-tank weapon Amit Cowshish on be driving in the fast lane this festive
the Modi season
76 Lessons from Ukraine government
deserving credit TOTAL NO. OF PAGES
Lt Gen Raj Shukla (Retd ) writes that for putting a stop INCLUDING COVER 102
India must take lessons from the war in to a culture of
Ukraine and invest in the tools of scandals in
new-age warfare than rely on Russian defence deals,
weaponry whose performance has and more
been less than flattering

Photo courtesy: Indian Army

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13 | BW BUSINESSWORLD | 05 November 2022

JOTTINGS

EX- IAF Photo courtesy:IAF

CHIEF TO PILOT the Make in India agenda.

UP DEFENCE Bhadauria was also the lead negotiator in the 7.6 billion

CORRIDOR euro Rafale deal. French OEM Dassault acknowledged his

FORMER CHIEF OF AIR STAFF, Air Chief Marshal R. role in removing complex hurdles by putting Bhadauria’s
K. S. Bhadauria will be piloting the Uttar Pradesh
Defence Industrial Corridor as its Chief Nodal initials on the tail number (RB 008) of the first Rafale
Officer. Here’s why he’s such a catch.
He has unparalleled experience in the Indian Air Force’s fighter delivered to the IAF.
(IAF) interface with India’s Aerospace and Defence
complex. As chief experimental test pilot and project Now Uttar Pradesh wants him to play Pied Piper to
director of the National Flight Test Centre, he was a key
points person in the development of the Light Combat industry, so its Defence Corridor may have some solid
Aircraft.
afterburner thrust. — Vishal Thapar
Affectionately called ‘Chhotu Sir’ in Bengaluru’s
aeronautical development establishment, he is regarded
as a big supporter of indigenisation. As Deputy Chief of Air
Staff, he gained further insight into the industrial blueprint
to back military procurement programmes, particularly

Heavy Sits the Name

MANY OBSERVERS were Combat Aircraft, what
taken aback by the sheer
ferocity of the moniker the IAF had in mind were
given to the indigenous
Light Combat Helicopter more benign names like
(LCH) – Prachand (Fierce).
Abhay and Ojas, which
The Prachand is also
the world’s lightest attack while signified strength,
helicopter. The name
‘Prachand’ was announced but did not overly bristle
by Union Defence Minister
Rajnath Singh at the with aggression and
induction ceremony of the Photo courtesy:IAF
LCH at the IAF’s Jodhpur base on 3 October in what was certainly did not impose a
undoubtedly a big Make in India moment.
heavy name baggage that
Observers in-the-know felt that Prachand was perhaps
more suitable for a weapon of mass destruction than a overshot the agenda and
light helicopter gunship which is still work-in-progress.
capability of the platform.
On the lines of the name ‘Tejas’, given to the Light
The grapevine whisper

is that the name Prachand

was the suggestion of the Army Chief, General Manoj

Pande. And Prachand it was.

Well the Bard did say, “what’s in a name and a rose by

any other name smells as sweet”. So from that perspective

the buzz in the grapevine may seem like ‘Much Ado About

Nothing’. — Vishal Thapar

14 | BW BUSINESSWORLD | 05 November 2022

MEN OF Illustration courtesy: III. Niklas Elmehed © Nobel Prize Outreach
THE HOUR

THE ROYAL SWEDISH ACADEMY of Sciences chose to for having missed the “warning signals” of the subprime
award the Sveriges Riksbank Prize in Economic Sciences housing crisis during his tenure as US Federal Reserve
2022 to three US academics for their “research on banks Governor between 2002 and 2005.
and financial crisis,” in a year in which most central banks are
doing just that – battling a financial crisis. Bernanke, is now a Distinguished Senior Fellow at The
Brookings Institution, Washington DC. His fellow Nobel
According to the International Monetary Fund (IMF), the laureates, Douglas W. Diamond, is Merton H. Miller
world is witnessing the worst contraction in economic growth Distinguished Service Professor of Finance, University of
since 2001, not counting the global financial crisis of 2008 Chicago, Booth School of Business, and Philip H. Dybvig, is
and of course, “the worst of the pandemic”. Central banks, Boatmen’s Bancshares Professor of Banking and Finance,
like the United States Federal Reserve and our own Reserve Washington University.
Bank of India are fencing a creeping inflation, stoked by
rising fuel prices with interest rate hikes, while governments The Nobel citation says their research in the 1980s had
forego taxes, lest economies shrink further. “significantly improved our understanding of the role of
banks in the economy, particularly during financial crises”.
Ironically, among the three awardees of the prize in Well, now is the time to prove your mettle, gentlemen.
memory of Alfred Nobel, is Ben S. Bernanke, often chastised
— Madhumita Chakraborty

STILL A DISTANT DREAM

A LOT HAS BEEN SAID Huang said the focus
right now needs to be on
about the developments developing a pre-quantum
level computer. “The most
around quantum computing powerful computer today is
based on NVIDIA GPUs and
– so much so that one gets it is sensible that we create
a pre-quantum computer
the impression that the that researchers could use
to develop their science,”
quantum computing era is he said.
On the debate on ‘Classical Computing vs Quantum
almost here. But in truth, Computing’, Huang said when the quantum computer
arrives, all processors, including CPUs, GPUs and
the technology expected QPUs (Quantum Processing Units) would work in tandem
to ultimately solve problems that are impossible to
to put an end to the age of address today.

classical computing, still — Rohit Chintapali

needs a lot of work. Photo courtesy:NVIDIA

During the GTC Fall 2022, BW Businessworld asked

NVIDIA Founder and CEO Jensen Huang about the current

status of quantum computing. The tech pioneer said the

technology was realistically two to three decades away.

While quantum computing technology is being hotly

pursued for its potential ability to solve highly complex

problems that are beyond the reach of binary computing,

15 | BW BUSINESSWORLD | 05 November 2022

COLUMN By Vikas Singh

GDP Doesn’t
Measure What
Matters

OUR APPRECIATION OF EVENTS refines with time. Recent decadal stagnation of real wage for a
developments tend to reframe issues, prompt reassessment and majority of unorganised workers. Over
even skew our judgment. History has many authors and there are 80 per cent of the ‘employed’ earn less
multiple versions of the 1991 reforms. However, there is no denying than the per capita income. Dispari-
that it was truly transformational. ties between urban and rural areas is
It was a fait accompli, prodded, pushed compelled even, by several externalities. widening, even when ‘urbanites’ choke.
It was ‘baked’ for an ecosystem that was almost completely constricted by the rule Access to health, education and several
of licences, quotas, and discretion. Everything was in ‘short’ supply. The culture of other human-development indicators
paternity (mai-baap sarkar), and the role and power of the ‘insider’ had deprecated are low.
and denied growth.
At the macro level the gap between
The 1991 reforms worked because they were well defined, mutually supportive laggard states and developed ones is on
and structured around a core. The goal was to dismantle a dysfunctional system of the rise. The ‘Jobless’ growth phenom-
controls, free the private sector of myriad government bondage, and unleash en- enon is ‘hardening’, equally creeping
trepreneurial capability. The theme was to ‘deregulate’. The objective was to attract across other sectors. The Crux study
foreign capital in exchange for the Indian wallet. It would have been sufficient had highlights the need for policymakers
the Balance of Payments crisis been averted. The reforms did more. to go beyond the ‘growth’ narrative for
meaningful development.
A turning point that redefined the vocabulary of policymaking
The 1991 reforms transformed the ecosystem but even more importantly, set a The PM must start from home
precedent, changed the narrative, and exemplified the virtues of hard economic The government has a role in promot-
decisions, and defining ‘action’. Foreign direct investment (FDI), jobs and growth ing economic growth. However, this
are now the bedrock of every economic policy framework and determine every will mean setting up, strengthening
policy move. and empowering institutions, regula-
tory and standard-setting authorities
However, the decade after 1991, was lost. Most politicians lacked the political to coordinate, incentivise and support
capital. Some the will, others the intent. They could neither carry on that momen- growth.
tum, nor build upon the early success. We meandered.
The Prime Minister must remind
However early this century several well-meaning people both within and out his cabinet of ‘minimum government
of governments, persevered and coaxed incremental reforms and were rewarded maximum governance’ and ensure it.
with high growth and substantial poverty reduction (particularly destitution). Policymakers focus on economic issues
narrowly. The ecosystem is beset with
Everything has changed. Yet nothing is different government intervention. Courts are
A proper assessment of reforms must go beyond growth rates and GDP numbers. wading into the domain of the execu-
The situation for most Indians remains unchanged. A Crux study highlights our tives. Executiveslackcapacity,areoften
failure to generate sustainable livelihoods for most. We have equally failed to indifferent. The government must en-
provide employment opportunities for the educated young. There has been a

16 | BW BUSINESSWORLD | 05 November 2022

A proper assessment of reforms must go beyond impact has been sluggish.
We have challenges galore. India
growth rates and GDP numbers. The situation for
needs bold and structural reforms,
most Indians remains unchanged. A Crux study and a robust framework to substan-
tially scale and accelerate growth.
highlights our failure to generate sustainable India needs to follow this up by in-
jecting the appropriate catalyst and
livelihoods for most. We have equally failed to high-productivity models across dif-
ferent themes. We need to implement
provide employment opportunities for the educated well, to grow at 10 per cent for the next
10 years.
young. There has been a decadal stagnation of real
However, growth must be accompa-
wage for a majority of unorganised workers nied by a very intense focus on societal
mobility. Growth is wonderful, neces-
hance both administrative and technical competence across levels. sary, and important but the trajectory
The reforms must also focus on long-neglected social needs, particularly educa- and pattern more so. It’s not an end in
itself, but the means to enrich lives, ex-
tion, health and ‘ease of living’. A special resolve and action is needed to deliver ac- pand opportunities, jobs for every aspir-
cessible, efficient, and quality public services. This can be achieved by strengthening er, provide mobility and a life of dignity
the capacity and governance structure at the grassroots level. to every citizen. Growth must empower.
The benefit of growth concentrated
India needs reforms that enable the MSMEs to grow. Today they age. Close to at the top manifests into several ills.
80 per cent of the 50 million jobs providers (MSMEs) are minuscule and small.
We need an ecosystem that enhances competitiveness, and powers scale. The cor- The fact that growth and inclusion
porate landscape is highly fragmented. Only a handful of the ‘large’ organisations reinforce each other will not be lost
have global scale or competitiveness. There is no ‘middle’, primarily because the on the Prime Minister. Poverty and
ecosystem has failed to nurture ‘small to middle’ enterprises. inequality not only adversely impact
human development, but also stunt
Labour reforms, GST rejig, ease of doing business and, ‘nurturing’ the ecosys- the very growth we need. The Prime
tem are low hanging fruits, and will scale and strengthen MSMEs. They power Minister must ensure that the bottom
growth and create jobs. When more than 45 per cent of the population depends 300 million too rise. Equally, the mid-
on agriculture, growth will have to start there. Agriculture reforms will fail in the dle 300 million should expand. The
absence of land reforms. Barring a few state governments, most have not taken up upward mobility triggers a virtuous
market-facilitating reforms. Land, power, infrastructure, rural development, and growth cycle led by higher demand,
agriculture reforms are multipliers. investment, and jobs. He must address
the challenge of jobless growth and ris-
Reforms are a process, not an event. Not an end in themselves ing inequality
Economic reforms of the last 10 years have indeed delivered. However, in the ab-
sence of holistic measures, including administrative and judicial reforms, the larger Real leadership moment
The Crux research articulates that up
to 50 per cent of GDP growth in the
last three decades can be attributed to
inclusivity, and particularly to the con-
tribution of those millions who were
pulled out of the poverty trap.

Growth must provide upliftment and
freedom to make life choices. It must
measure other indicators of life particu-
larly leisure, wellbeing, and focus on
broader societal touchstones like equal-
ity, governance, participative democ-
racy, and societal connectedness.

The author is an economist and columnist

Photograph by Indiapicturebudget 17 | BW BUSINESSWORLD | 05 November 2022

KIRAN’S KONTRARIAN KORNER

By Kiran Karnik

PROMOTE
PEDESTRIAN
POWER

I N TODAY’S WORLD, speed is all. have given way to 140-character tweets or 15-second video clips.
Fast food, fast cars, fast (bullet) One major manifestation of the obsession with speed is the desire to
trains, fast (10-minute) grocery deliv- increase the pace at which vehicles move on city roads. This is a laud-
ery: everything is a race, and getting able but limited objective. In conjunction with economic inequity and
there quicker – importantly, before power asymmetry, it translates to a focus on cars to the exclusion of
others – seems vital to our lives. Yet, other forms of urban movement. Fortunately, the glamour of a “metro”
despite the speed, do we really get more (rail) system – as necessary and prestigious for a city as a national
time to do what we want to do? Respond- airline once was to most countries – has brought attention, even if
ing quickly to a message or mail hardly unintended, back to public transport.
ends the task; inevitably, fast replies trig-
ger an immediate response, calling for BUS RAPID TRANSPORT SYSTEM
another reply – and so the cycle goes on. The priority for cars is best exemplified by Delhi’s experience with a
“Fast” ends up as more work rather than “bus rapid transit” system. Experience around the world has shown
as free time. Generally, it also means off- that when well run, this is an optimal system. It is far cheaper than a
the-cuff, knee-jerk reactions, with little metro, can be rapidly scaled, and provides access closer to home and
thought or depth. Hurried, unthinking workplace. The lower fares (as compared to the high-cost metro)
mails or actions often create problems: act makes it affordable for the poor. Unlike the long lead times required
in haste, repent at leisure! for a metro, BRT can be expanded quickly wherever needed.

Speed is encouraged by the instantane- However, when Delhi embarked on a limited BRT, reserving two
ity of social media, of the need to be the lanes on a busy but broad road, the reaction from car-owners was so
first to post news, even if it is an unveri- strong that it had to be abandoned. Admittedly, it was poorly imple-
fied rumour (most recently, “President XI mented, with inadequate frequency and constant encroachments by
under house arrest”!) and to immediately cars on the BRT lanes. Of course, reserved BRT lanes meant that the
forward it. There is no time to observe, road was more congested, and cars travelled slower. But then, this is
reflect or introspect. Partly as a reaction, one way of pushing more people towards public transport, with huge
things like “slow food” are now becoming exogenous benefits: saving fuel, lower pollution, less stress (for car
popular. drivers), and more equitable. What stands out, though, is the power of
the car lobby and the government caving in to this vocal but minority
Yet, the love for “fast” dominates. The group. Little wonder that hundreds of crores are spent on fly-overs
leisurely pace of a cricket Test spread over and road-broadening, but there is no money to buy new buses (in
five days has been replaced in popularity most cities, the number of buses – the true mass public transport –
by the three-hour T20. In-depth articles

18 | BW BUSINESSWORLD | 05 November 2022

We need a more
responsive and
decentralised form of
urban governance, with
sufficient financial and
talent resources. Only
then might cities focus
attention, funds and effort
on improving walkability.
Well-paved footpaths,
with trees for shade, good
lighting, safe (controlled)
pedestrian crossings: these
are the minimal necessities

on the road is less than what it was some an alternative will walk even half a kilometre. Instead of seeking un-
years ago)! certain last-mile transportation, they end up using their own vehicle
for the full journey. The reasons are well-known: lack of footpaths, in
Today, we suffer the effects of climate most cases. Where they do exist, they are broken, dug up, or composed
change through extreme weather events of loose and uneven paving, and even these are encroached by shops,
– bursts of massive rainfall, droughts, hawkers and parked vehicles; further, the lighting varies between
heat waves – and there is a global push to non-existent and poor.
minimise carbon (therefore, of fossil fuels
like petrol, diesel, and coal). While electric ONE MORE TRAFFIC LANE
vehicles may, in due course, replace the In the rare case of a broad footpath, it becomes one more traffic lane
present ones, they have their own prob- for two-wheelers (even three-wheelers), often driving on the wrong
lems (including pollution). Accordingly, side. Inevitably, pedestrians have to use the road and navigate be-
in urban areas worldwide, non-vehicular tween speeding vehicles. Yet, many have no choice but to walk (even
movement and use of mass rapid trans- in the prosperous “millennium city” of Gurgaon, walking accounts for
port is being encouraged. as many as 33 per cent of all trips, compared with three per cent by
car). Meanwhile, “signal-free” roads mean that pedestrians have to
Cycling and walking are the ideal solu- scamper across busy roads, praying that no vehicle hits them. Given
tion (also, for better health!). This means these well-known facts and available data, it is shocking that priority
more thoughtful urban planning: for is given only to speeding up car travel.
example, integrated housing and office/
commercial areas to minimise commute We need a more responsive and decentralised form of urban gov-
distances; offices and commercial areas ernance, with sufficient financial and talent resources. Only then
(malls, restaurants, entertainment cen- might cities focus attention, funds and effort on improving walk-
tres) co-located with transport nodes like ability. Well-paved footpaths, with trees for shade, good lighting,
metro stations or bus terminals; neigh- safe (controlled) pedestrian crossings: these are the minimal neces-
bourhood schools; and universities with sities that city administrations must ensure. Complemented by wide-
student housing in or near the campus. spread, inexpensive, comfortable public mass transport systems and
sensible urban planning, this could transform our cities. Now is the
Amongst these, the single most impor- time for a pro-pedestrian revolution.
tant factor is the facilitation of pedestri-
ans. In most major global cities, tens of The writer loves to think in tongue-in-cheek ways, with no maliciousness or offence
thousands use public transport and then intended. At other times, he is a public policy analyst and author. His latest book is
walk from the node to their offices or Decisive Decade: India 2030 Gazelle or Hippo (Rupa, 2021).
homes. In India, no one who can afford

Photograph by Sudipta Bhowmick 19 | BW BUSINESSWORLD | 05 November 2022

COLUMN

Minhaz Merchant

China’s Reality
Check
C HINA’S AUTHORITARIANPresidentXiJinpingfacesacrucial
MINHAZ MERCHANT test on 16 October. The Chinese Communist Party (CCP) will hold
IS THE BIOGRAPHER its 20th National Congress in Beijing from 16 October 2022 to
hand Xi a precedent-breaking third consecutive term as China’s
OF RAJIV GANDHI AND president and the CCP’s general secretary.
ADITYA BIRLA AND The CCP’s National Congress is held once every five years. To
be attended by over 2,300 delegates of the CCP in the Great Hall
AUTHOR OF THE NEW of the People in Beijing, the 2022 National Congress comes at a
CLASH OF crucial time for both Xi and China.
Xi’s third successive term will put him in the company of Mao
CIVILIZATIONS (RUPA, Zedong. No other Chinese leader since Mao has wielded the absolute power Xi
2014). HE IS FOUNDER does today: not even Deng Xiaoping, the father of China’s economic revolution.
But the horizon beyond Beijing is darkening. Xi’s ascent has alienated powerful
OF STERLING groups within the establishment. Social media is tightly controlled in China but
NEWSPAPERS, WHICH some blogs critical of Xi have for brief periods escaped censorship.
The decision to hand suspended death sentences to two senior CCP leaders
WAS ACQUIRED BY (both ex-ministers) and put several others, including five former police chiefs,
THE INDIAN EXPRESS in jail has caused serious disquiet among CCP members. The rumours of a coup
against Xi were allowed to gain currency for nearly a week before the Chinese
GROUP president put them at rest by appearing on national television on 27 September
accompanied by Prime Minister Li Keqlang.
Xi knows that the immediate threat to China comes not from within but from
a rapidly decelerating economy. The real estate sector has collapsed. Half-built
buildings litter cities across China. Developers don’t have money to complete
them. The real estate industry led China’s economic boom from 2010. Along with
associated ancillary industries in the construction sector, realty accounts for over
30 per cent of China’s GDP. For a nation used to economic growth in double digits
for over a decade, likely three per cent GDP growth this year and possibly in 2024
comes as a reality check.
Underlining the seriousness with which Chinese authorities view the crisis in
real estate, Bloomberg reported: “China Construction Bank Corp will set up a 30
billion yuan ($4.2 billion) fund to buy properties from developers, as policy mak-
ers beef up efforts to contain a real estate crisis that’s weighing on the economy.
The fund will ‘invest in existing assets’ of real estate companies and renovate the
properties into rental housing, the lender said in a statement to the Shanghai stock
exchange. The fund lasts for 10 years, with a possible extension, according to CCB,
which is one of China’s big four state-owned lenders.”
Beyond the economy, China faces geopolitical tensions. Its support of Russia’s
war in Ukraine has isolated it globally. Indian business leaders are normally para-
gons of political correctness. They rarely criticise governments whether foreign or
their own. Gautam Adani is clearly different. The world’s third richest person was
his candid self at a conference in Singapore on 27 September 2022.
Bloomberg reported: “Billionaire Gautam Adani said China will feel increasing-

20 | BW BUSINESSWORLD | 05 November 2022

ly isolated as rising nationalism, shifts Beijing is also watching closely how India is bolstering
in supply chains and technology curbs
threaten the world’s second-biggest logistical infrastructure along the Line of Actual Control
economy. China’s Belt and Road Ini-
tiative has run into resistance in many (LAC). Equally worrying for the Chinese is India’s continu-
countries, challenging Beijing’s global
ambitions. The property market melt- ing military build-up along the LAC. Howitzers, advanced
down has drawn comparisons with
what happened to Japan during the rockets and missile-carrying drones have added to India’s
last decade of the 1990s.” Adani add-
ed: “While I expect all these economies 50,000 soldiers arrayed across the border. Strategically
will re-adjust over time – and bounce
back – the friction looks far harder this placed squadrons of Rafale fighter jets and the S-400 air
time.”
defence system have dispelled any thoughts Xi might have
Though still muted, dissent is
building up against Xi’s dictatorial had of India succumbing to Chinese military pressure in
leadership. Since he took office nearly
10 years ago, Xi has jailed, exiled or disputed territories
sidelined potential rivals. Mid-level
officials have been punished for cor- nese is India’s continuing military build-up along the LAC. Howitzers, advanced
ruption. rockets and missile-carrying drones have added to India’s 50,000 soldiers arrayed
across the border. Strategically placed squadrons of Rafale fighter jets and the
Xi’s stand on Taiwan has, however, S-400 air defence system have dispelled any thoughts Xi might have had of India
softened in recent weeks following succumbing to Chinese military pressure in disputed territories.
his hyperbolic reaction to the visit to
Taipei by United States House of Rep- India’s strategic global alliances have also given Beijing a wake-up call. China’s
resentatives Speaker Nancy Pelosi. favourite weapon to destablise India was Pakistan. But with Islamabad itself in
Chinese leaders are now talking more dire straits, that option has withered. Meanwhile, India’s alliances with the US,
emolliently about reunification with Israel and the United Arab Emirates (dubbed 12U2) and India-Brazil-South Africa
Taiwan. (IBSA) as well as trilaterals with France-UAE and France-Japan have signalled
that while India will lean West, it will also build multilateral relationships on se-
Why the change in tone? There are curity, trade and intelligence sharing.
three reasons. One, Beijing has noted
with consternation Russia’s military Turkey, a staunch Pakistan-China ally too has meanwhile modified its stand on
reverses in Ukraine. Invading and oc- Kashmir. At the United Nations General Assembly (UNGA) on 20 September,
cupying Taiwan, which has a 110-mile Turkey’s hawkish President Recep Erdogan simply said: “We hope and pray that
water buffer to protect it from China, fair and permanent peace and prosperity will be established in Kashmir.”
will be an even harder task for the Peo-
ple’s Liberation Army (PLA) and navy, China’s place in a rapidly changing world will be on the minds of CCP delegates
both of which are ill-equipped for an as they gather in Beijing on 16 October to give Xi a third successive term. Xi will be
amphibious military assault. 74 by the time his new term ends in 2027. For a man who aspired to be president-
for-life, the candid deliberations at the CCP’s National Congress on China’s falter-
The second reason for taking a step ing economy could prove a sobering experience.
back over Taiwan is China’s spluttering
economy. Till it is set right, military ad-
venturism is ruled out. Finally, Beijing
knows that the global isolation Adani
spoke of at the Singapore conference
could stall its stated bid to be the
world’s leading superpower by 2049,
the centenary of the founding of the
People’s Republic of China (PRC).

Beijing is also watching closely how
India is bolstering logistical infrastruc-
ture along the Line of Actual Control
(LAC). Equally worrying for the Chi-

Photograph by Angyee 21 | BW BUSINESSWORLD | 05 November 2022

LEADERSHIP LESSONS By Srinath Sridharan &
Venkatesh Mahadevan

Left to right: Srinath Sridharan & Venkatesh Mahadevan

Business TransForMaTioN
starts ‘IntheMind’

B USINESS transforma- usual, but about innovating or transforming.
tion’ is used as a broad Organisations embark on business transformations to
term for making funda-
mental changes in how create additional value, usually of a financial nature. It may
a business or organisa- mean harnessing and scaling the potential of employees,
tion runs. Some Big consulting play- developing robust IP and optimising resources for max-
ers define Transformation as “im- imising the overall sense of performance. The nature of
proving performance”. This includes any transformation is not a catwalk or a cakewalk. Most of
people, practices, processes, products the Transformation initiatives are a systemic shift for the
and technology. These transforma- stakeholders involved. Incrementalism is a tick-mark of
tions usually help organisations com- non-serious transformation initiatives.
pete more effectively, become more
efficient. In the era of the Fourth IR, Business transformations are bold, seismic shifts that
the transformation agenda is also a organisations make to accelerate change and growth be-
strategic pivot, for existential pur- yond typical incremental advancements. They might even
poses. necessitate shifting to newer business models and even
product lines.
Post-Covid, organisations world
over have entered a stage of “Thrive Business transformations, to be truthful to their ob-
to Survive” mode. It’s no longer about jective, are typically large-effort, multi-quarter initia-
keeping the lights on and business as tives, requiring core changes to fundamental aspects of
the transforming companies. This, as expected, would
be driven by the very top of the organisation; depending

22 | BW BUSINESSWORLD | 05 November 2022

on the nature of the project, either by
the CEO or the Board of Directors.
For example, in governance related
projects or culture related efforts, the
boards get involved actively.

It’s in the mind In a world of l The enterprise owner or founder or the CEO wants
unprecedented change, but does not want to leave the mantle to some-
Malcolm Gladwell defined it beauti- disruption one
fully when he said, “Transformation and market l We celebrate tech startups and the ease of living they
isn’t about improving, it’s about re- turbulence, add and yet the traditional businesses’ value age and ex-
thinking”. transformation perience versus impact and achievement of younger de-
today revolves mographics
The word “transformation” gets around the need l And more importantly, we hold onto our roles in some
used and also equally abused (as a to generate fashion or the other, even after retirement
fashionable lingo) at many instances. additional value
It is also a one-up behaviour in busi- – to unlock new Your mind plays an important part in your decision mak-
ness club circles to talk of running or opportunities, ing process. Staying rooted or calm is one of the ingredi-
championing various business trans- to drive new ents of a successful Leader. We all live in a stressful and
formation programmes. growth and ever changing world, and staying connected and being of
to deliver new a strong mind is a pre-requisite. As a leader, not only are
For any transformation pro- efficiencies. you responsible for making decisions, but you are also ac-
gramme to be successful, organisa- And a good countable for the large number of people who work in your
tions need to adopt a transformation- transformation team and their decisions.
al mind-set. The sooner your leaders will also make
internalise the lingo, the better and you agile, and One of the best examples is being Open to Change. Keep
smoother the journey is going to be. ready to face your antenna always switched on and make sure it stays
In a world of unprecedented disrup- uncertainties tuned into the right frequency.
tion and market turbulence, trans- So any transformation project has to start with ques-
formation today revolves around the tions:
need to generate additional value – to l What will you do eight hours of the work day when
unlock new opportunities, to drive someone else replaces you or does your current role? (We
new growth and to deliver new effi- will get awkward silences most of the time for this ques-
ciencies. And a good transformation tion!)
will also make you agile, and ready to l What will you do to communicate regularly with all the
face uncertainties. stakeholders?
l How do you rally up your stakeholders for any pain
In other words, all transformations caused during the change in management efforts?
require you to think audaciously. Be- l What all could go wrong if this project is abandoned
cause incremental improvement is midway?
not enough to win in the disrupted
business environment we live in. It’s We should further encourage the following questions:
not enough to win today. You have to l Why are we doing what we have just started as a
be able to continue to evolve in the
future. Transformation in any organi-
sation is more about mind-set. We get
carried away by most transformation
projects – be they HR, digital, busi-
ness, ESG etc. We get distracted by
the initial euphoria of announce-
ments (bluntly more of ‘song and
dance’).

The “why” we do is more important
than what the potential outcome is.
Let’s see the contradictions amongst
our midst:

Photograph by Tera Vector 23 | BW BUSINESSWORLD | 05 November 2022

LEADERSHIP LESSONS By Srinath Sridharan &
Venkatesh Mahadevan

project? Healthcare, or Retail, or Manufacturing, or Logistics, etc.
l What’s measure of creating posi- the possibilities are endless and Infinite!
tive impact?
l Have we communicated the pros A Leader’s ability to think with a straight mind and not
and cons and the candid chat about get ruffled, with so much happening all around is a key suc-
the change journey? cess criteria. Decision making gets more complex with the
l Have we spoken to all stakeholders action all around you.
and not just the board room ones?
For a successful transformation project in a VUCA envi-
VUCA world ronment, the leaders of today must wholeheartedly accept
The first quote that comes to mind is what they don’t know, and also accept that what they know
from Alvin Toffler, “The illiterate of today can be irrelevant tomorrow! If this first-principle can
the 21st century will not be those who be hard coded into the organisational planning ethos, the
cannot read and write, but those who
cannot learn, unlearn, and relearn”. For a successful transformation project in a VUCA
environment, the leaders of today must wholeheartedly accept
Whether you have heard of the
term “VUCA” or not, the fact is that we what they don’t know, and also accept that what they know
are living in a VUCA world. We are all todaycanbeirrelevanttomorrow!If thisfirst-principlecanbe
living in a world that is fast changing,
the future is not exactly clear, there hard coded into the organisational planning ethos, the
are limitless possibilities, quite a lot of journeyof transformationwouldbesmoother
risks etc. This is taken. The question
is, “What now?” journey of transformation would be smoother.
Focus on the Change, be courageous to ask the right
The idea of “five year plans” seems
irrelevant at times. It sure was a popu- questions, do not be scared to take a few steps back if you
lar B-school learning. It worked for have to, Pause and Reflect. Saying “I don’t know” is accept-
most of us, most of the time. In the able in today’s leadership roles; but as long as the leader
VUCA world we live in now, changes can also mention that she or he would use all the required
and disruptions across social, busi- resources to find the answer to the problem.
ness, financial and economic, techno-
logical, cultural, and educational as- After all, transformation is in the mind! Business Trans-
pects are so rapid. Yet the focus of any formation starts with and is in the mind! Purpose, after all
organisation has to be the consumers. is the key, for positive outcomes.
Everything else has to be used or lev-
ered to deliver value to the consum- Srinath Sridharan is a corporate advisor and independent markets
ers. That’s the purpose of existence of commentator @ssmumbai
the organisation.
Venkatesh Mahadevan is a Global Technology & Transformation Leader
The more complex and volatile an @venkimahadevan
industry is, the harder it will be to pre-
dict its future and the more uncer-
tain it is to plan for it. Innovation as
a process has to factor in these issues.
Expecting the entire organisation to
be ready for a VUCA life is a harsh
one. Working with all stakeholders
in setting the tone and narrative of
what’s expected and what cannot be
estimated, is critical.

This is the world of unlimited pos-
sibilities and time for leaders to “Re-
think the Impossibilities”. Whether it
is in the field of Financial Services, or

Photograph by Anton Lazovoy 24 | BW BUSINESSWORLD | 05 November 2022



ARTHSASTRA by Amit Kapoor & Akshay Bhambri

BROADCASTING INDUSTRY:

GOING BEYOND
THE DEPENDENCE

ON RATINGS
T ELEVISION audience
measuring (TAM) is a Amit Kapoor genre dominated ad volumes in 2020
technologically support- with a 31 per cent share, followed by
ed process; it is always dependence on the rating system. The the General Entertainment Channels
evolving as new technol- television market size in 2020 stood (GEC) genre with a 27 per cent share.
ogies are implemented. at Rs 68,500 crore ($9.71 billion) and Hindi news remained the second-best
The broadcasting ser- is estimated to reach Rs 84,700 crore language genre for advertising volumes
vices share similar technologically- ($ 12.01 billion) by 2023. In the same and increased its share of advertising
induced advances in the creation, stor- year, TV penetration in India stood at volumes to six per cent.
age, transmission, and distribution of 69 per cent driven by the DTH market.
content via the medium. These quick With such high television penetration When purchasing commercial time
changes generated new difficulties as and viewership, advertisement revenue on news channels, media agencies and
well as new options to study and update becomes an important aspect of the advertisers seek viewing data and broad
in order to enhance the TAM system’s broadcasting industry. patterns, making high viewership cru-
trustworthiness. cial for attracting more commercials.
Advertisements are an essential However, it has been suggested that
Stakeholders in the broadcasting component of the television news in- viewing data is not the determining
industry have raised concerns about dustry. With the recent expansion of element in ad revenue and that pricing
thestructure, neutrality,andreliability the media industry across the nation, depends on other criteria such as chan-
of the existing rating system, neces- attracting more expensive advertise- nel brand, quality, distributor demand,
sitating a review of the existing Tel- ments has been the sector’s top prior- and reputation created over the years.
evision Audience Measurement and ity. According to TAM AdEX, the news However, viewing metrics continue to
Rating system in India. There are also be a crucial factor in deciding the ad-
concerns regarding panel expansion vertisement.
and panel tampering, which require
prompt attention owing to the dam- Significantly, advertisement is
age they may make to the TAM and among the most important sources of
television channel ratings. In the light revenue for the broadcasting industry.
of the impact the television audience The television sector in India is ex-
measurement can have on advertising pected to expand from Rs 720 billion
revenue in the broadcasting industry, in 2019 to Rs 826 billion in 2024, with
there is a critical necessity to improve 60 per cent of revenue coming from dis-
the accuracy of the television audience tribution and 40 per cent from adver-
measurement system in India and re- tising. According to industry estimates,
solve all emerging issues regarding the broadcasters’ revenues climbed from
TAM data. Rs 41,300 crore to Rs 45,000 crore
in 2019, with advertising income ac-
One of the ways to decrease the im- counting for approximately 70 per cent
pact of the rating system on the televi- and subscription revenue accounting
sion industry revenue is by reducing the for approximately 30 per cent.

Television audience data is used to

26 | BW BUSINESSWORLD | 05 November 2022

In lieu of the increasing
scepticism regarding the
television rating system,
it has been argued that its
impact on advertisement
revenue can be
devastating for the
broadcasting industry in
the longer run,
Henceforth, there is an
urgent need to find
alternatives

answer many questions from broad- as inaccurate samples, panel tamper- Whereas news subscriptions – mainly
casters and advertisers in their daily ing, biased ratings, landing page and for exclusive and premium content –
work. Broadcasters need to know the non-transparency have been raised generated Rs 0.9 billion in 2021. Fur-
audience in order to offer the best con- against the television rating system. thermore, with the increasing digital
tent in the most appropriate schedule In lieu of the increasing scepticism re- consumption of content and prolifera-
so as to reach the most valuable audi- garding the television rating system, tion of individual consumption of tel-
ences. Advertisers need to know the it has been argued that its impact on evision content, the subscription model
television audience and how to com- advertisement revenue can be devas- can provide more accurate opportuni-
municate with their actual and poten- tating for the broadcasting industry in ties for the broadcasting industry in the
tial consumers. the longer run, Henceforth, there is an coming years.
urgent need to find alternatives to the
To answer all these questions, broad- interrelation between advertisement Besides, promoting the subscription
casters and advertisers need a quantita- and the rating system. model also provides an opportunity for
tive measurement of television audi- broadcasters to serve directly to con-
ences. This kind of audience research One of the already existing alterna- sumers and understand consumers
is also known as ‘ratings research’ and tive revenue models is the ‘subscription- in a better way, taking away the de-
‘audience information systems.’ Al- based revenue model’ in the television pendence on the rating agencies to
though this audience data can help in industry. Simply, a subscription-based understand the audience. However,
many media decisions, its main benefit pricing model is a payment structure it is difficult to completely shift to the
is that it facilitates the buying and sell- that allows a customer or organisation subscription model. Therefore, it be-
ing of advertising in commercial media to purchase or subscribe to a vendor’s comes important for the broadcasting
markets. It sets prices, so it serves as services for a specific period of time for industry to at least reduce its depend-
currency for the advertising market. a set price. In the year 2021, video sub- ency on the television rating agency and
Therefore, offering reliable audience scription revenues grew 27 per cent to advertisement revenue by concretising
data is fundamental for the commer- Rs 54 billion, an amount that is over 50 alternative revenue models.
cial television market. per cent of the broadcasters’ share of
TV subscription revenues. Amit Kapoor is Chair, Institute for Competitiveness
However, recent issues have been and Lecturer, Stanford University
raised by multiple conjunctures re- Moreover, paid video subscriptions
garding the accuracy and efficiency of scaled up to 80 million in 2021, across Akshay Bhambri is Research Manager, Institute
the television rating system. Issues such almost 40 million Indian households. for Competitiveness, India and Doctoral Fellow at

Harvard-Yenching Institute

Photograph by Sujono 27 | BW BUSINESSWORLD | 05 November 2022

‘IN THE CORNER’ with KAN and SU!

Blueberry
Yogurt, Hypnotist and

a VUCA World

By K. A. Narayan & Sunandan Bhanja Chaudhary

IN 1978, CHESS WORLD championship challenger Viktor Korchnoi’s In order to understand this qual-
entourage accused champion Anatoly Karpov’s team of cheating by send- ity in leaders, we thought it best to
ing their player a blueberry yoghurt. Team Korchnoi argued that it could quiz two industry stalwarts who
have been a signal to make a particular move. have worked in global organisa-
The match was notable for the hostility and paranoia between both tions and seen leaders across the
sides. Karpov’s team included a hypnotist seated in the front rows staring world.
at Korchnoi, who in turn wore mirrored sunglasses, apparently to protect
himself. We asked Pawan Goenka,
It was in this month of October 1978 that Anatoly Karpov retained his Former MD and CEO of Mahindra
crown! & Mahindra Ltd (Auto and Farm
Korchnoi did everything to unsettle Karpov! Equipment) and now Chairperson
A true leader is not daunted when faced with an eccentric opponent or the of INSPACe, Department of Space,
world at large! Grandmasters in Chess like Karpov, Kasparov, Fisher, Anand Government of India, what accord-
and Carlson have inspired a whole generation to take to chess and fight it out ing to him, is courage of conviction.
like great champions!
We find Great Leaders are differentiated by their “courage of conviction”! His way of looking at transfor-
mational leaders is someone who
believes in himself and takes

28 | BW BUSINESSWORLD | 05 November 2022

actions that reflect not only cour- A true leader is not daunted when faced with
age but also conviction. When we an eccentric opponent or the world at large!
tread on an unknown path, there is Grandmasters in Chess like Karpov, Kasparov,
no road map. It is then that our Fisher, Anand and Carlson have inspired a whole
own internal voice pops up by con- generation to take to chess and fight it out like
necting the dots from various data great champions! We find Great Leaders are
points. Most leaders know what to differentiated by their “courage of conviction”!
do but lack the courage to do it for
fear of failure. Leaders have to therefore, act with courage and not be afraid of making mis-
takes.
Mr Goenka says we need to work
on a superordinate goal which Hence the role of authenticity becomes most critical. Authentic leaders dem-
inspires the entire team to put their onstrate a passion for their dreams and purpose, and practice their values con-
best foot forward. sistently.

We then asked an accomplished Finally, “COC – Courage of Conviction” is the inner voice of leaders who
management leader and a profes- have learnt to act without fear of failure in uncertain and unpredictable times!
sional from the technology indus-
try, who has held many national That brings us to our next issue, where we will demolish some of the popular
and global leadership positions in myths about leadership!
some of the largest companies in
the world! In the meanwhile do write to us at kansucornergamil.com and we would love
to hear your point of view.
Here is how Bhaskar Pramanik,
Former Chairman, Microsoft India Until then …
and former Managing Director of
Oracle and Sun Microsystems, K. A. Narayan, President -HR, Raymond Ltd, is fondly known as KAN in
defines leadership and how leaders industry for his well-known ‘Can Do’ attitude.
handle the tough, unexpected
world of today! Sunandan Bhanja Chaudhury, Client Partner, Pedersen & Partners, is
known as SU by friends and family, both off and on the golf course!
According to Bhaskar Pramanik,
we now need to adapt to an era of
constant turbulence.

So what defines successful lead-
ers in these times?

EQ becomes more important.
EQ includes attributes like Self-
awareness, Self-discipline,
Empathy, Motivation, Social skills.

Courage of Conviction is driven
by EQ.

In turbulent times Purpose,
Values and Culture help leaders
successfully navigate through crisis
situations.

Leaders have to have high situa-
tional awareness and be adaptable
to constant change.

And great leaders will be good at
choosing the right balance between
contradictory goals, for example,
between managing quarterly prof-
its versus creating long-term
shareholder value. Customer satis-
faction versus gross margins.

Photograph by Iam-frukt 29 | BW BUSINESSWORLD | 05 November 2022

COLUMN Raghav Chandra

Big Infrastructure
Projects Merit Continuity

F ROM A PURELY admin- to Amrawati!
istrative point of view, To acquire the land is a relatively
abandoning of any infra-
structure project in the straightforward decision in which
middle, without solid substantial down payments have to be
reasons, has adverse made. As has been seen in the case of
economic and social road projects, there is usually litigation
consequences. Multiple stakeholders by those who are dissatisfied with the
– financing institutions, land own- quantum of compensation and there-
ers, prospective users, people living fore the physical taking over of land
around the project, contractors com- becomes cumbersome and expensive.
missioned for the project – all get af- When thousands of acres of land are
fected. When the project in question needed for a huge new town, it is defi-
happens to be something as important nitely prudent to get the participation
and as anticipated as a Capital city, and of thelandholdersthemselvesthrough
that too in a newly carved out state that a land pooling exercise. This manage-
is striving to establish itself, the impli- rial artifice prevents huge debts and
cations of any deviation are even more inducts those sacrificing their land as
significant and even ominous. partners in the infrastructure project.
There were about 30,000 owners of
To establish a new capital city takes agricultural land who agreed to sur-
decades of careful planning, execution and promotion. Putrajaya, in Malaysia, was render their land and place it with the
envisaged in the 1980s. Yet, despite $8 billion of investment and the then powerful state appointed Capital City authority
Prime Minister Mahathir Mohammed’s unquestioned drive, it has yet to find the to develop basic infrastructure under
envisioned stature – even after almost four decades – despite being merely an hour an irrevocable agreement. They would
away from the earlier capital Kuala Lampur. Similarly, Naya Raipur, despite being get a reconstituted and redeveloped
extremely well-planned as a modern city, and barely 17 kilometres from the historic piece of land (about one-third of the
city of Raipur (that was already like a capital city for the Chhattisgarh part of that original size of the surrendered plot)
region), is yet to achieve any notable traction. Thus, the Andhra Pradesh govern- that had been ‘bettered’ by putting in
ment’s volte face about their capital city, after five years of detailed planning, was place the infrastructure required for a
puzzling, shocking for the stakeholders and even damning for its own credibility. capital city.

The new state of AP was created vide the Andhra Pradesh Reorganization Act of Land pooling has been effectively
2014,enactedbytheParliamentunderArticle3of theConstitution.ThenewGov- deployed by the Gujarat government
ernment of AP had announced Amrawati as the capital city with great fanfare with earlier. Once a land-holder commits
the Mantralaya, the Vidhan Sabha and the High Court to be located there. After their land under land-pooling, their
five full years of planning and development, the new elected government decided interest in the land is locked in, and
to trifurcate the capital into three different cities: Amrawati, Vishakhapatnam and that land is no longer available in the
Kurnool. This ignored the fact that the Vidhan Sabha and the Mantralaya have a land market – it is only after all the de-
symbiotic relationship – as the legislature depends on the executive for servicing velopment has taken place that the full
and support. What a colossal waste of public money, time and energy it would be potential of the land is realised. To that
for officers to travel with files for hundreds of kilometres from Vishakhapatnam extent, land pooling is a public-private

30 | BW BUSINESSWORLD | 05 November 2022

partnership with huge obligations on If in other states too, Not surprisingly, the High Court of
both sides – the land owner is making governments begin to AP was petitioned by the farmers whose
a major contribution to the project be- land had been pooled and it stepped in.
cause they are not getting any upfront tinker around with critical Ithasinvokedthedoctrineofpromissory
monetary compensation for their land
and the authority is benefitting because projects whenever there estoppel and the doctrine of legitimate
it does not have to spend upfront on are changes of elected expectations to pass an order of manda-
land acquisition and has only to spend mus directing completion of the inte-
on infrastructure development – for
whichfundsareeasiertocomeby from government, there would grated capital city project of Amrawati
the central government and Finance
Commission devolutions than they are be infructuous and to honour its commitments to the
for land acquisition. While this may expenditure and land holders who had signed up for the
sound as an easy win-win situation for land pooling scheme. It is understood
all, the key element here, more than any
other facet of agreement between the erosion of central that the state of AP is aggrieved by that
land owners and the authority is – the
element of trust. Apart from hurting credibility. Therefore, order on the grounds that this is undue
the interest of the stakeholders in the the national government interference in the powers of the legis-
instant case, if such trust is broken, it lature.
will have adverse implications for land-
pooling in other places too, whenever should consider enacting It is possible that the Supreme Court
such a framework is sought to be in- a law to prevent may ultimately even weigh in favour of
voked. the state of AP. However, it is really for
centrally funded
In the instant case, the AP govern- the Government of India to look care-
ment had already requested and got
the National Highways Authority of infrastructure projects fully at the larger picture for now and for
India, as far back as in 2015, to com- from being derailed by the the future. If in other states too, govern-
mission a detailed project report for ments begin to tinker around with criti-
an eight-laned ring road around Am-
rawati. Land-pooling agreements with state governments cal projects whenever there are changes
irrevocable general powers of attorney
were already in place under the AP of elected government, there would be
Capital City Land Pooling Scheme of
2014. Special financial support for the infructuous expenditure and erosion
new capital city had already been se-
cured from the Central Government. of central credibility. Therefore, the na-
And then suddenly, the newly elected
government decided to trifurcate the tional government should consider enacting a law to prevent centrally funded in-
capital city project and thereby dimin-
ish the prospective value promised to frastructure projects from being derailed by the state governments on narrow local
those who had pooled their land. Of
course, the state has since pulled back considerations. That would ensure stability, confidence and all-round consistency
the concerned AP Capital Region De-
velopment Authority Repeal Bill 2020, in infrastructure development.
and the AP Decentralization and Inclu-
sive Development of All Regions Bill The author is a former Secretary, Government of India
that effected the trifurcation; but there
is as yet no firm decision to keep the ear-
lier capital project intact.

Photograph by Reality Imags 31 | BW BUSINESSWORLD | 05 November 2022

COLUMN

THE POTENCY
OF HUMANS
POWERED BY AI

By Jayesh Shah

G ARTNER DEFINES Augmented in his book, Introduction to Cybernetics and this probably is the earli-
Intelligence as a design pattern for est precursor to the term augmented intelligence. In the book, he
a human-centered partnership argues that just as sound, power and other such attributes can be
model of people and artificial amplified, so also intellectual power can be amplified, in other words
intelligence (AI), working – augmented. (For ease of readability, the term IA will be used in refer-
together to enhance cognitive per- ence to augmented intelligence in this article.)
formance, including learning, decision
making and new experiences. As the name USE CASES OF IA
suggests, augmented intelligence is the These days, cars are the perfect example of AI at work. In self-drive
use of machines to support humans and mode, the car takes full responsibility of staying in the lane and main-
not replace them. taining safe distance from the vehicle in front and going at the right
speed. In driver-assist mode, it provides lane change signal, collision
The idea is to use human cognitive fac- aversion alerts, etc. The former is artificial intelligence while the latter
ulties and the machine’s speed and accu- is augmented intelligence.
racy to improve outcomes. Gartner’s
Svetlana Sicular, a thought leader on the Political parties across the world could not be left behind and have
subject, believes that ‘human plus AI’ is jumped on to the augmented intelligence bandwagon. Using data
smarter than either by themselves. She from past elections, demographics and current affairs, politicians try
says “Augmented Intelligence is all about to influence and sway voting behaviour. It is believed that automated
people taking advantage of AI. As AI tech- social media bots were used in the 2016 US Presidential Elections to
nology evolves, the combined human and increase pro-Trump hashtags on Twitter. This is classical augmented
AI capabilities that augmented intelli- intelligence, wherein the target audience, in this case voters, is pre-
gence allows will deliver the greatest ben- sented with data patterns and the decision making is left to them.
efits to enterprises”. Alex Bates, author of
Augmented Mind: AI, Humans and the Augmented intelligence algorithms have application in healthcare,
Superhuman Revolution also believes by providing inputs based on various data parameters of patients to
that augmenting the capabilities of medical professionals, helping in accuracy of diagnosis, personalised
humans and not replacing them is where prognosis and line of treatment among others. The expected outcome
the real opportunity of AI lies. Clearly, the is reduction of human errors in diagnosis and improving clinical out-
focus of augmented intelligence is on sup- comes. It is also helping in early detection of life-threatening diseases
porting humans and not replacing them, like cancer, heart, liver, Parkinson’s, Alzheimer’s, etc.
which is essentially what artificial intelli-
gence aims for. In these times of a connected world, where our personal life is out
there in the cyber domain, security is a concern not only for individu-
Way back in 1956, William Ross Ashby als, but more so for governments around the world. Augmented intel-
used the term Intelligence Amplification

32 | BW BUSINESSWORLD | 05 November 2022

ligence systems provide humans
with information on possible vulner-
abilities, threats and what-if options
to help them make informed deci-
sions based on the context.

There is not much information in
the public domain for obvious rea-
sons, but these systems have exten-
sive usage in warfare and are in use
by armed forces of many countries.
Additionally, we can find many appli-
cations of augmented intelligence in
sectors like financial services, tele-
communications, manufacturing
and retail among others.

AI VS IA

While both these acronyms are used

interchangeably, there are obvious By2030,decisionsupport/augmentationwillsurpass

distinctions between the two and it is allothertypesofAIinitiativestoaccountfor44percent
important to highlight the key differ-
ence between the two AI streams. oftheglobalAI-derivedbusinessvalue

AI systems are expected to operate

independently and handle tasks that So, which is better, AI or IA? This is a question that does not have a

humans perform without inputs from binary answer. In their wonderful article in the Harvard Business

them whereas IA systems are primarily Review, David de Cremer and Gary Kasparov wrote: “People and AI

decision support applications that present both bring different abilities and strengths to the table. The real ques-

patterns based on analysis of humungous tion is, how can human intelligence work with artificial intelligence to

volumes of data and then let humans do produce augmented intelligence”. Grandmaster Kasparov lost to IBM’s

the decision making. Artificial Intelligence supercomputer named Deep Blue in 1997. This made him rethink the

focuses on the job of replacing humans game of chess, and after experimenting in different game situations, he

using fully automated systems. came up with this interesting insight – “Weak human + machine + bet-

Augmented Intelligence (IA) is focused ter process was superior to a strong computer alone and, more remark-

on supplementing and complementing ably, superior to a strong human + machine + inferior process.” Therein

human functions. The question to be lies the answer to the question; need we say anything more?

asked is why do we need IA when AI can An IBM report, Augmented Intelligence Requires Human Direction,

do things faster, eliminate human errors references a clinical study that offers another excellent example. In

and thereby create higher efficiency and the study, an AI system had a 7.5 per cent error rate when detecting

productivity? lymph node cancer cells, while human pathologists had a 3.5 per cent

To answer this question, let’s look at error rate. When input from both the AI system and pathologists was

things AI cannot do. First and foremost, combined, however, the error rate dropped to 0.5 per cent. Gartner’s

they cannot create or invent. They do not AI business value forecast highlights decision support/augmentation

understand morals or ethics. They are as the largest type of AI by business value-add with the fewest early

emotionless, have no feelings and cannot barriers to adoption. By 2030, decision support/augmentation will

handle tasks where human emotion plays surpass all other types of AI initiatives to account for 44 per cent of the

a decisive role. Interestingly, AI cannot global AI-derived business value.

write software. In his classic on software In conclusion, one can safely predict that AI will not, in the foresee-

engineering, The Mythical Man Month, able future, replace humans entirely.

Fredrick Brooks argues that the reason for (This is the concluding part of the article on the intriguing field of Artificial Intelligence)

this is that it doesn’t have the human capa-

bility of understanding and comprehen- The author is a digital transformation expert and currently Executive Director,
sion and converting it into rules. AutomataPi Solutions. He is a technology industry veteran with more than 35 years of

experience in the services and consulting space

Photograph by Lucifer Metal 33 | BW BUSINESSWORLD | 05 November 2022

AmitScope Amit Tiwari , Global Head
Marketing Demand Center, TCS

Leveraging lenging to predict when exactly one
Micro Moments will happen.

to Multiply The trick is to always be prepared.
Marketing Determine the times, locations, and
and Business methods that consumers use to look
ImpactT HAPPENED while you blinked – the days of the predictable, lin- for goods and brands similar to
yours. You must understand when
ear, clear-cut path of the customer journey are well and truly over. they are at the “want to buy” stage.
Customers today are chomping their way through a more evolved, Online information can be obtained
complex and instantaneous web of tiny, smartphone-enabled through a variety of campaign ana-
clicks towards the ‘buy now’ button in a matter of seconds. The lytics, and focus groups and surveys.
A thorough SEO research will also
I micro-moments, as Google defined them a few years ago, have aid a clear understanding of con-
irrevocably transformed marketing as we knew it. sumer intent.
Today, an average individual makes three to four Google searches
a day. That adds up to 8.5 billion searches on a daily basis. More Do the research. Know yourself
than half of all online traffic comes from mobile devices, such as phones, tab- AND your customer.
lets, and e-readers. Whatever you’re looking for and or whoever you want to
connect with – it’s all on your fingertips. So is the competition. OPTIMISE EVERYTHING
Though there are several implications of micro moments for marketers, one Micro-moments also require con-
of the most crucial ones is: if your brand is not present or not providing value to tent that gets to the point at once. Be
a customer at their moment of need, you have missed a significant opportunity as clear as possible and sound more
to meaningfully engage with the customer. Worse, if your page isn’t loading fast human, less bot. What else might
enough, or if your information isn’t clear enough or if your competitor stepped you improve? Users need to be able
up instead, you may never get another chance. to find their way around your web-
site quickly and intuitively, espe-
KNOWLEDGE IS POWER cially on mobile devices. So optimis-
No one knows your brand, your value proposition and what you’re offering bet- ing the loading speed of your web-
ter than you. Success means putting your brand out there in the most engaging, site/mobile site is a good start. Also
helpful and accessible manner in order to get noticed by potential customers. check the loading times of your ads.
If they are slow, customers have the
To achieve this, marketers need to constantly build and update their strate-
gies around triggering micro-moments using different channels. Keep in mind
that millennials and especially Gen Z are all about apps, social media, and
mobile devices. They thrive on videos, visuals, and other shorter, snappier
forms of content. The popularity of Tik Tok and Instagram over Facebook is a
case in point.
However as micro-moments happen all across the customer journey, it’s chal-

34 | BW BUSINESSWORLD | 05 November 2022

option of shopping around. example, personalise your next communication with your customer.

DATA MATTERS MARTECH MATTERS MORE

Today, not only are brands digging Micro-moments offer brands a slew of opportunities to boost reach, increase

deep into their customers, but cus- engagement, and drive conversions. However, while these moments may be

tomers in turn are also constantly incessant, they’re also momentary.

looking at reviews and conversa- Agility is mandatory to capture audience attention in order to fully leverage

tions their brands are involved in. micro-moments and this is where your martech stack becomes crucial. For

Does Brand A offer better deals? example, marketing automation could help with collection of data, managing

Do you have more repeat custom- campaigns, sending out promotions and offers. Landing pages that speak to

ers? Did people have a good expe- your customer’s needs are also essential here.

rience with your brand? Perhaps consider a chatbot to help new customers get answers quickly? Or a

Consumers today are aware of and CMS to create, track and distribute content that engages a customer and moves

care a lot more about a brand’s them further along the path to purchase?

reputation than ever before. Brands should also consider customer data platforms to help them gather

Thankfully, data is a two- data not just from external sources but also

way street. While your cus- Micro-moments may have organisation-wide internal data from sales,
tomer could potentially hit the limelight recently customer service, and other functions.
discover you in a micro- Connecting the dots from data from CRMs,

moment, you too have but they existed long before DMPs and other platforms can further help
gained access to a custom- Google stumbled upon in improving segmentation, targeting, ana-
er’s preferences in that them in 2015. Remember lytics and personalisation of your overall
micro-moment. You know marketing strategy.

the channels they found the Amul girl? The brand A MAJOR WIN
you on, the content they has been employing micro- Marketing for micro-moments has an all-
connected with, the offers
they responded to and per- moment marketing for the
important underlying benefit – it automati-

haps even gained insight last fifty years. The key cally leads to better results in lead genera-
into what their peers are question is: are you doing tion. Additionally, you can gather accurate
like. If you use the right data that will affect the next layer of market-

martech tools, and opti- enough to maximise your ing decisions as well as a means of evaluating
mise this data, you can fur- micro-moment marketing the effectiveness of your efforts. It’s a game
ther set up your channels to beat the competition? changer that no marketer in the age of smart-
for maximum success. For phones can afford to ignore.

Photograph by Rawpixel 35 | BW BUSINESSWORLD | 05 November 2022

Column / Hardayal Singh

Costly thy habit as thy purse can buy,
But not express’d in fancy; rich, not gaudy;
For the apparel oft proclaims the man

— Hamlet (Act I) by William Shakespeare

G
OVERNMENTS DELIVER subsidies at a heavy cost. The
Welfare central and state governments, the Election Commission
vs and the Supreme Court may keep this first principle in
mind when they try and distinguish between genuine
Revadis, welfare schemes and distribution of free revadis (Indian
Some candy made of sesame seeds).
Fresh
The central government and the Election Commission
Thoughts have recently rekindled the controversy on this subject. A
few days ago the Union Cabinet announced extension of
the Pradhan Mantri Garib Kalyan Aan Yojana (PMGKAY)
for three months at an additional cost of Rs 44, 762 crore.
This is over and above the budgeted expenditure of Rs
3.83 trillion provided for the period between April and
December in this financial year.

Now contrast this with Prime Minister Modi’s state-
ment on 16 July at the inauguration of the 296 kilome-
tres - long Bundelkhand Expressway at Jalaun in Uttar
Pradesh, at an outlay of Rs 14, 850 crore. The PM argued,
that a government that based its achievements on the
amounts of freebies it gave away to its people, would never
have funds for expressways, ports and railway lines . Was
he then justified in extending a food subsidy scheme ne-
cessitated by Covid that should have ceased when the
pandemic ended?

JUSTIFICATION FOR SUBSIDIES
Perhaps, yes. Although India is the fastest growing econo-
my in the world today, the pandemic has left behind a trail
of destruction by way of lost livelihoods. Too many people
have still to find employment and continue to depend
on this food subsidy. Currently, therefore, there is some
justification for continuing this scheme.

Different considerations would apply when there is
no such special reason. Providing subsidies is a form of
state intervention. In a market driven economy which we

36 | BW BUSINESSWORLD | 05 November 2022

All subsidies are financed by embraced after the reforms of the 1990s, this is justifiable
taxes. And all taxes involve only as a last resort, when markets cannot deliver desired
some sacrifice by taxpayers. outcomes and all other solutions fail.
There is a direct loss of income
for them, but even more than This is so for a number of reasons. There is first of all,
that, taxpayers also suffer many the question of costs. All subsidies are financed by taxes.
other hidden compliance costs And all taxes involve some sacrifice by taxpayers. There
of taxation – such as the time, is a direct loss of income for them, but even more than
money and energy in maintaining that, taxpayers also suffer many other hidden compliance
records, hiring accountants, costs of taxation – such as the time, money and energy in
etc. ... There is thus, always an maintaining records, hiring accountants, etc. These com-
obligation on the part of the pliance costs are often three to four times higher than the
government to put tax revenues administrative costs that the government incurs to collect
to optimum use taxes. There is thus, always an obligation on the part of the
government to put tax revenues to optimum use. This is
especially true in a resource strapped state like ours.

UNINTENDED COSTS
Both economic theory as well as past experience appear to
suggest that subsidy schemes typically have unintended
consequences. Witness, for example, the serious problem
of depletion of the water table in Punjab, resulting from
providing free water and electricity for cultivation of rice.

Even more importantly, subsidies tend to distort prices
and confuse both producers and consumers. The mini-
mum support price (MSP) for farmers, for example, has
often ended up confusing farmers, because at the begin-
ning of every production cycle they have no clue about the
actual state of demand and supply. As a result, in years of
over-production, the economy suffers a glut, with the Food
Corporation of India, often compelled to carry stocks far
in excess of its capacity and the country’s need. On the
other hand, when international demand is buoyant, as at
the moment, farmers cannot realise higher prices, because
the government is compelled to ban exports.

For all these reasons, Vijay Kelkar and Ajay Shah, two
eminent economists, have argued that subsidies are justi-
fied only when their benefits are at least three times their
costs.

To provide assistance to deserving people, it would
help if the government were only to transfer the subsidy
to the bank accounts of the beneficiaries as a direct benefit
transfer (DBT). This way it can ensure that the subsidy
remains within its budget. “Costly thy habit as thy purse
can buy,” said Shakespeare. This dictum applies as much
to nations as it does to individuals.

The writer was Chief Commissioner of Income-tax and is the

author of the Moral Compass – Finding Balance and Purpose

in an Imperfect World (Harper Collins India, 2022)

Photograph by F1 Digitals 37 | BW BUSINESSWORLD | 05 November 2022

Noorings [email protected]

THE GREAT stronger hit. Byju’s, White Hat
HIRE & FIRE Jr., Unacademy, Vedantu and
Lead among others are some ex-
As startups commence another round of layoffs, the amples of cost-cutting and re-
impact of this year’s challenges including investing structuring-led layoffs but edtech
winter is clearer. A company’s people strategies can startups such as Lido Learning
and Udayy have complete shut
change but long-term thinking should not shops. In all, more than 14 edtech
startups have had to take the
by Noor Fathima Warsia tough call this year. This is indic-
ative that the future of online
F OR THE STARTUP community, 2022 can barely be called a learning in India may not be as
good year. One of the most important challenges remains the bright or as simple as some may
investment winter or the freezing of even the expected funds have imagined.
due to global uncertainties. Recession, inflation, interest rate
hikes and several such terms played their role in upping the Talent in India, especially
difficulty level. among younger businesses and
If 2021 was the year of the startups, giving birth to great tal- tech-led skill sets, is closely con-
ent wars and hire cycles as India crossed the 100-unicorn mark to become nected. The changes in the startup
the third largest ecosystem for startups globally, 2022 has slowed down the sector as a pool of people become
pace. This would have been expected amid global uncertainties but headlines available, will have repercussions
such as Ola laying off 2100 employees, Byju’s about 2500, Blinkit over 1600, on the talent war itself.
Unacademy 1150, Vedantu laying off 724, 600 job cuts at Cars24 and many
more, have cast dark shadows on the ecosystem. The year began with leaders in
India pointing out the extra efforts
More than 44 startups have let go of people for reasons such as cost- being made in identifying and hir-
cutting, financial constraints, restructuring, change in work structure ing the kind of talent that can rise
such as return to office or automation, or complete shutdown. The overall to current demands and is future-
number cited for 2022 so far is more than 15,000 people that are left ready in a sense. As the great lay-
hunting for jobs. offs pick up, this situation has
changed. More than anything else,
While the concern was across domains, edtech has visibly seen a there is caution in the market as
well. Talent is still greatly valued
but the benchmark has become
higher in some cases and for some,
the hiring process has become
rigid.

Industry experts explain this is
all part of the parcel. Jobs and tal-
ent wars remain an area that
would see ups and downs even
without the external stimuli but
they advise against kneejerk reac-
tions and straying from strategies.

More than ever, it is imperative
now to think long-term. Like
other economies, India’s startup
ecosystem is fragile. The move-
ments from established startups,
where they let go of staff on one
hand but look to hire certain skill
sets on the other, are indicative of
change. The need of the hour is to
remain strategic even while think-
ing tactical.

38 | BW BUSINESSWORLD | 05 November 2022

EQUITY MARKET OUTLOOK
A S of early October 2022, the Indian equity markets
are in the middle of another round of volatility. After alone. For this purpose, investors can consider investing into
reaching a peak in October 2021, the benchmark hybrid funds.
Nifty 50 index has witnessed three rounds of
Here, one can consider dynamic asset allocation or
balanced advantage category of scheme if the allocation

corrections and advances of over 10%. This required is across equity and debt. If an investor is looking for

includes a steep correction of 15% in June, and then a sharp allocation to gold and other asset classes, along with equity

rise of 18% between June and August. When compared to and debt, then they may consider multi-asset category.

global markets, the performance of Indian equities paints a

better picture with the Nifty 50 correcting a modest 2.6% in EQUITY ALLOCATION

the last one year as compared to the US market (S&P 500) For equity allocation in a portfolio, if the investment horizon is

which was down 15%. In other words, the Indian market long-term in nature, then one may consider value investing

outperformed the US markets by a huge margin. through value fund, especially at a time when valuation is not

During the same period, the cheap any longer. Here, the fund

Indian economy has witnessed manager will opt for names which

a sharp revival from the effects are under-valued but is likely to

of the Covid-19 pandemic. The gain over time given their strong

Indian GDP for April-June 2022 fundamentals.

saw a growth of 13.5%, which Another option an investor can

even though below expectations, consider is that of a business cycle

was the highest among the G-20 fund. Here, basis the economic

economies. trend, the fund manager will invest

Other developments in recent in a set of sectors which are likely

past like the Russia-Ukraine to gain from at that stage of the

conflict, global inflationary cycle. As a result, the portfolio may

pressures and the resultant be concentrated in terms of sector

interest rate increase is now but will be well diversified within

taking a toll on the Indian a particular sector. On the other

economy as well. The Indian hand, if the investor is looking to take

Rupee has depreciated by over exposure to the just top companies,

10% in the current calendar then a focused fund can be an

year so far. India being heavily option. Here, the portfolio can hold a

reliant on fuel imports, the Rupee maximum of only 30 different stocks.

depreciation adds to the country’s Unlike the two aggressive equity

import bill. Further as the Foreign allocation mentioned above, if you

Institutional Investors reallocating By Rajesh Kumar, are an investor looking for a relatively
their funds outside India, in favour conservative equity exposure, then
of the US Dollar, is another factor Managing Partner, Truegain Advisory Services LLP dividend yield fund can be an option.

weighing on the Rupee. Owing In such a fund, the portfolio will

to all these, both the RBI and the World Bank have cut India’s consist of names which are known to declare high dividends in

GDP growth forecast for the ongoing financial year. a steady manner.

While it is clear that the Indian economy is in a much better All indicators like tax collections, demand for automobiles,

shape than global peers, volatility in the markets is a reality and investments in infrastructure, government’s push on economic

must be taken into account for investment decisions. reforms and a large share of young population point to a bright

economic future for the country. The launch of 5G telecom

BALANCED APPROACH IS KEY connectivity is also expected to unleash another wave of

Maintaining the right balance in investments has become internet-fuelled economic growth. Given the combination

more important than ever. The Indian equity markets have of current volatility and future promise of Indian economy,

commanded a higher valuation when compared to global investing via Systematic Investment Plans emerges as an

markets, and this is likely to continue. In such an environment, ideal choice. It helps in tackling some of the risks of greed and

it is important to spread one’s investments across asset fear trap by staying disciplined with one’s investments and

classes like debt, gold and not stay confined into equities accumulating assets in a staggered manner.

39 | BW BUSINESSWORLD | 05 November 2022

CORPORATE CROMPTON

Crompton Greaves
Consumer Electricals
has followed a multi-
pronged strategy of
acquisition, innovation
and portfolio expansion
to consistently grow,
earmarking an aggressive
play for the year ahead

By Chaitali Dixit

T he consumer electricals
industry is witnessing a
market share shift from the
unorganised to the organ-
ised sector, where the likes
of household appliances are seeing an up-
tick in demand. Over the last few years,
disruptions such as demonetisation, GST
implementation and the pandemic have
hastened this shift allowing for some
growth stories to come to the fore. One
such story is that of Crompton Greaves
Consumer Electricals (Crompton). In the
last couple of years, Crompton has been
very busy. Not only did it up its invest-
ment in setting up an innovation centre
and completing acquisitions but it also
doubled up its efforts to ensure it kept its
consumer at the centre of all its initiatives
including foraying into new categories.
The result was a steady growth streak.

A Growth Story
In 2015, after the business demerged from
Crompton Greaves to create the current
entity, one may argue it regained its mojo.

THE LEVERS OF

40 | BW BUSINESSWORLD | 05 November 2022

L-R: Shantanu Khosla, From the period FY16 to FY22, Crompton
MD, Crompton Greaves recorded a revenue CAGR of 8 per cent, an
Consumer Electricals, and EBITDA CAGR of 14 per cent and a PAT
Mathew Job, CEO & ED, CAGR of 17 per cent, recording 2.6 times
Crompton Greaves absolute growth. In 2022, the company
Consumer Electricals that is into fans, domestic pumps, water
heaters and lighting, entered the built-in
CROMPTON kitchen appliances segment in India. Its
product portfolio now includes a range of
chimneys, hobs, built-in ovens, built-in
microwaves and dishwashers. The But-
terfly Gandhimati Appliances’ acquisi-
tion strengthened its presence in this
segment and opens up a new gateway of
opportunities.

The Right Priorities
“In bad times, a brand needs to under-
stand consumers even better and innovate
to bring stronger value. In good times, it
should focus on being the lowest-cost pro-
ducer and ensuring a healthy cash cycle.
But if you wait for the bad times to come
before you start doing the right things, you
are going to be in trouble,” remarks Shant-
anu Khosla, Managing Director, Crompton
Greaves Consumer Electricals. He explains
that despite external challenges beginning
from the lockdown in 2020 to the Euro-
pean war in 2022, Crompton continued
to “outperform nearly everyone in terms
of margins” because it did the right things
during the good times and remained stra-
tegic during the bad times.

Crompton’s present-day game plan has
three core areas of focus that held it in good
stead – acquisition, research & develop-
ment (R&D) led innovation and portfolio
expansion. This includes one of its largest
investments in future growth, which was
Butterfly Gandhimathi Appliances val-
ued at Rs 2,076 crore. The company also
ramped up its innovation capabilities by
setting up a new research and development
(R&D) centre at this time and also made its
first significant entry into the new category
of hobs and chimneys. “We were able to do
all this and deliver the best-in-class mar-
gins because we have been focussing on the
consumer throughout the trajectory of the
company,” says Khosla.

Photograph by Vilas Kalgutkar 41 | BW BUSINESSWORLD | 05 November 2022

CORPORATE CROMPTON

Acquire & Innovate To Expand CGCEL market, valued at $5714.97 million in
With the Butterfly acquisition, Cromp- FY16 TO FY22 2021, is expected to grow with a CAGR
ton made a big move in the kitchen cat- GROWTH: of 6.66 per cent to reach a market value
egory and also the southern market. of $8310.45 million by 2027, as per a
The company is bullish on this cate- 8%REVENUE CAGR: ResearchAndMarkets report.
gory, identifying it as its next strategic
space of growth. “A category’s potential (absolute growth Consumer First, Always
is very important to us. Most catego- of 1.6x) Based on a deeper understanding of
ries’ value is created by the top players. consumer needs, Crompton explored
There is no value in being lower in the 14%EBITDA CAGR: new ways of managing its capabilities
order. We wanted to enter a category (absolute and bringing innovative products to
where we believed we would be among growth of 2x) the market. It discovered that com-
the top players and get at least a 10 per petition would not stay quiet, so it
cent share in the medium term. We 17%PAT CAGR: needed to be a step ahead. “The life-
don’t play niche,” states Khosla. (absolute line of products is becoming shorter
growth of 2.6x) as well. We need to accommodate the
After putting the filter of being rea- latest trends and demands according-
sonably sized, identifying unserved or ly,” adds Khosla. This was the reason
underserved consumer demands and why a significant amount of the com-
understanding whether Crompton pany’s time and effort was invested
can find solutions to these, ‘kitchen’ into R&D. Khosla believes that while
emerged as Crompton’s big oppor- that is an internal change, external
tunity. “This was the thought process changes too are underway that will
with which we got into the kitchen open new opportunities. He says more
category. We have put time and en- investments will take place in improv-
ergy into serving actual needs. Our ing the supply footprint over the next
chimneys, for example, are less noisy few years. All of this will result in the
and have a whole range of automation need to stay ahead of the curve. The
based on consumer needs. The most company’s answer to that is to develop
difficult and important thing where proprietary technologies and expand
value is created is ‘meaningful superi- its footprint. Manufacturing excel-
ority’. This is what makes a difference to lence, capacity building and the like
the consumer and this is what we need are already becoming important to its
to deliver,” Khosla asserts. plans, where it will up its investments
in the next five years.
The Opportunity Abounds
“Crompton is in the process of creat- The Way Ahead
ing a brand that will create value for- “Need-based consumer segmentation
ever,” says Mathew Job, CEO & Ex- is required. The long-term competitive
ecutive Director, Crompton Greaves advantage for the company is consum-
Consumer Electricals. Explaining the er understanding so that we can deliver
company’s long-term planning, he ex- those needs and innovate,” says Job.
plains why the kitchen segment was The company has also made digitisa-
an opportunity that “cannot be over- tion its top priority and it is only going
looked”. “We know there are clear and to move forward with that strategy.
long-term trends that have become Crompton sees all this as positive de-
self-evident. There is nuclearisation velopments for it as a brand. While the
of families, more and more adults company expanded into new markets,
work and we have identified that we it remained committed to providing
can improve the consumer’s life in high-quality, dependable products. It
this backdrop, creating a long-term revolves around the idea of innovation,
business opportunity,” Job says. The to remain more dynamic.
Indian electrical kitchen appliances

42 | BW BUSINESSWORLD | 05 November 2022

IN CONVERSATION

“BECOMING A As long as we are leading in the industry,
YOUNGER AND we believe we will build equity for the
MORE INNOVATIVE brands in younger and innovative
COMPANY” directions, says Shantanu Khosla, MD,
Crompton Greaves Consumer Electricals in
an interview with Noor Fathima Warsia

Tell us more about your way for- company. As long as we are leading in the industry, we
ward now, especially given your believe we will build equity for the brands in younger and
entry in the kitchen appliances innovative directions.
category. What are the specific
areas where we will see you in- On a broader note, how do you see the opportunity in
creased focus for example? India growing as we see goalposts such as a $5 trillion
Crompton recently began the economy for the country?
journey into kitchen appliances The execution of the growth levers in a country like India has
and we do not have the strength always been challenging, be it political or social. But at some
yet. There are many synergies point, there will be faster growth in manufacturing. You have
possible on both the revenue and to identify what the manufacturing competitive advantages
cost side. It’s going to call for in- are in India and go after them.
vestments that we are prepared
to make. We believe that the mar- You have to continue to make governance better and more
ket for kitchen appliances will efficient. You have to look at some of the old historical laws
explode. So, we have worked on a that are constraints to social and economic development.
self-sustaining model. I think there is not much debate about what those key pa-
rameters are. The reality is that there are many challenges.
The continued focus is going to However, the country will move forward. Poverty has been
be on product development be- reduced. We are already the fifth-largest economy in the
cause the products we buy in the world. In all, we are moving in the right direction.
market are based on our unique
insights and technologies that others don’t have. To con- [email protected]; @NFWarsia
tinue bringing amazing products to the market, we need to
be there and manage our capabilities. Demand and trends
are changing.

Of most of the products we sell, two-thirds, come from our
partners, and one-third are made in-house. Through R&D,
we are trying to develop proprietary technologies. It will
take a great deal of work to build manufacturing excellence,
capacity, and other aspects of the business where demand is
likely to come from.

As you make some of these moves, how are you also
changing the Crompton brand positioning?
When we started the Crompton journey seven years ago,
we did an equity mapping on the Crompton brand and
overall it came out strong. The key strengths were in the
area of trusted good quality products. As of seven years
ago, Crompton had an older user base than it does today.
As a result, everything now revolves around innovation
for the brand.

All the innovations and new segments are working to-
wards making Crompton a younger and more innovative

Photograph by Vilas Kalgutkar 43 | BW BUSINESSWORLD | 05 November 2022

COLUMN By Ravi Nawal

The
Metaverse
Opportunity
for India

I N OCTOBER 2021, when etised by companies in the United States. Only China, with
Facebook rechristened itself its choice to remain in total control and create its web 2.0
as Meta, the world sat up. It ecosystem insularly, provided some counterweight to the
took notice, for the first time technology ecosystem that the USA steered. The web 3.0 op-
in a big way, of the idea of a portunity provides nations that were hitherto on the periph-
metaverse promising an im- ery and primarily consumers to the web 2.0 ecosystem, yet
mersive virtual reality world full of am- again the chance at greater ownership and participation.
plified experiences. Two months later,
in December 2021, when Bloomberg Several cities and countries have taken heed. Dubai (UAE)
came out with its master analysis of the is fast moving to diversify itself into the web 3.0 economy by
metaverse opportunity, pegging it at a allowing blockchain and crypto businesses to flourish and
whopping $800 billion by 2024, the is creating its own metaverse plays. Similarly, Seoul (South
world hurried to make the opportunity Korea) is leading the pack regarding government-articulat-
its own. ed policies on the metaverse. Then there are countries like
Barbados that have notched it up by creating Governance
Since early this year, there has been capability through the metaverse. Also, Shanghai (China)
a frenzy to drive and participate in the has devised its plan to leverage the metaverse opportunity
meta ecosystem at its various nodes, to aid the nation’s economic recovery.
be it hardware, software, services,
and content through VR/AR, games, India has yet to announce either an official web 3.0 or a
simulations, experiences, NFTs, block- metaverse-related policy. For now, the articulation of the
chains, etc. In a world where econo- metaverse in the public domain here has been centered on
mies are slowing down and looking either exploring creation of digital twins to provide services
for the next big wave to ride on, private or manage issues for citizens or for helping with supporting
organisations and public institutions tourism-related activities. There is no clear policy stance on
are both trying their best to corner a how India wishes to exploit the opportunity presented by the
share of the metaverse ecosystem. metaverse and the web 3.0 ecosystems.

For most of the internet’s evolu- It is not that India is not conscious of the potential that
tion, a few countries dominated web web 3.0 offers. In December 2021, it came out with the
1.0 and web 2.0’s technology and pro-
vider scape. The rest of the world was
either a consumer or participated only
in the services layer of the ecosystem. A
large chunk of the ecosystem was ide-
ated, developed, managed, and mon-

44 | BW BUSINESSWORLD | 05 November 2022

National Strategy on Blockchain For now, the articulation of the metaverse in
document that identified resource the public domain here has been centered
centers for developing the National on either exploring creation of digital twins
Blockchain Framework. Budget 2022 to provide services or manage issues for
also announced the establishment of
a task force focused on employment citizens or for helping with supporting
opportunities in the Animation, tourism-related activities. There is no clear
Visual Effects, Gaming, and Comics policy stance on how India wishes to exploit
(AVGC) areas. Concretely owning the opportunity presented by the metaverse
the metaverse opportunity for India
should be centered on the following and the web 3.0 ecosystems
thought streams:
u Focus on making India’s metaverse ous nodes of the metaverse ecosystem. This implies that
foray IP dominant and services preva- there needs to be a concerted policy-level nudge to increase
lent: The US has way less number of the adoption of India-made technologies for the metaverse
people (in absolute terms) working in ecosystem. It also means driving talent and consumers to
the technology industry than India. India-based players in the ecosystem. This could be through
Yet, the contribution of approximately data localisation needs, local hardware sourcing, preferential
$1.8 trillion of the industry to the USA’s taxation, making public services exclusive to home-grown
GDP is way higher than the industry’s metaverses, etc.
roughly $227 billion contribution w Resolve ambiguity around metaverse issues: India needs
to India’s GDP. This implies that the to quickly rest all ambiguity around cryptos, digital assets,
US has IP-led businesses in technol- data storage, user privacy, IP rights, skillsets development,
ogy, primarily products – hardware etc. It must move beyond resolving ambiguity to extending
or software, while India has settled to new ideas and technological breakthroughs in these and
provide services. Given the immedi- other areas relevant to the metaverse ecosystem, such as
ate temptation of the massive employ- standardisation, interoperability, etc. The first step is to
ment generation potential attached articulate a lucid web 3.0 and, more specifically, a metaverse
to delivering services in the metaverse policy for the country.
ecosystem, India needs to ensure that
it effectively balances both ends –IP- These pointers can significantly ensure that India not
led products and services. Providing only pitches into but also owns the metaverse ecosystem
investment nudges for public and pri- meaningfully and successfully.
vate capital towards core technologies
and products that can be patented will The author is a tech entrepreneur and social innovation strategist
be critical.
v Utilise numbers to drive the growth
of home-grown businesses at all the
nodes of the metaverse ecosystem:
Just the way it put its foot down on the
import of drones in the country and
gave a fillip to the development of this
new and possibly critical industry in
the country to come up rapidly, India
needs to do a repeat with all nodes of
the metaverse – hardware, networks,
software, and content. Given its large
and willing population combined with
its superior technology infrastructure
and engineering talent, India can eas-
ily create the necessary momentum
for critical mass to support the vari-

Photograph by Lumerb 45 | BW BUSINESSWORLD | 05 November 2022

IN CONVERSATION

“Tamil Nadu to become a
1 trillion-dollar

economy by 2030”

IN an exclusive interaction with BW Businessworld, Tamil Nadu’s
ChiefMinisterM. K. Stalinspokeaboutthescenariopost-
Covid, putting renewable energy to good use, promoting chip
manufacturinginthestate,andmuchmore By Team BW

In September 2022, As India talks about economic recovery after Covid-19, what is your vision for Tamil
M.K. Stalin met J. S. Nadu?
Ndebele, South African Even during the Covid pandemic, the state registered growth. I have set a target for
Ambassador and Tamil Nadu to become a 1 trillion-dollar economy by 2030. Today, we are nearly a 300
Andrea Kuhn, Deputy billion-dollar economy. We will need to register double-digit growth every year until 2030
Ambassador in Tamil through a multi-pronged strategy if we are to grow three-fold. A team of experts is assisting
Nadu Secretariat the Government chart a roadmap. Some initiatives include:
a. World-class industrial and logistics infrastructure: Traditional industrial parks are

46 | BW BUSINESSWORLD | 05 November 2022

In April 2022, M. K. Stalin met Global Footwear Manufacturing Company, Hong Fu’s executives
for an agreement of Rs 1000 crore to provide 20,000 people with employment in the state

being upgraded as customised parks where investors will d.Focusing on sunrise sectors: Tamil Nadu is strong in
enjoy plug and play facilities and access to essential util- sectors such as automobiles, electronics, textiles, leath-
ities to set up their operations without any delay. We are er, and footwear, IT & ITeS. In addition to maintaining
also setting up sector-specific parks for electronics, e-mo- our strength in these sectors, we will focus on 11 sunrise
bility, food processing and textiles. We aim to improve the sectors such as PV, Renewable Energy, Green Hydrogen,
state’s infrastructure, to lower turnaround times and bring EVs, and so forth. To support the sunrise sectors, we will
down the cost of doing business. provide customised incentive packages. For example, in
b. Corridor development and exports: The Chennai Ban- 2021, we launched the Tamil Nadu FinTech Policy and
galore Industrial Corridor supported by JICA will cater the Tamil Nadu Export Promotion Strategy. This year, we
to industrial development between Chennai and Hosur. have launched the Tamil Nadu Life Sciences Promotion
The Chennai Kanyakumari Industrial Corridor (CKIC) Policy and the Tamil Nadu R&D Policy.
supported by the Asian Development Bank will promote e. Encouraging R&D, startups, and a future-ready work-
port-based economic development. Additionally, we have force: We plan to increase the skilled talent pool through
set a target to increase the volume of exports to 100 billion interventions by the Tamil Nadu Skill Development Cor-
dollars by 2030 through an enhanced focus on manufac- poration & ICT Academy, and “WorkLabs.” The state has
turing and new markets. consistently ranked first in human capital among major
c. Improving Ease of Doing Business (EODB): Currently states in the India Innovation Index. Our R&D Policy
132 online services are available on the Tamil Nadu Single encourages startups through the Emerging Sector Seed
Window Portal, and we expect to add another 100 by the Fund, Startup Seed Grant Fund, State Innovation Fund,
end of this year. We are removing archaic laws and pro- and so forth.
cesses to improve EODB in the state. 301 reforms have
been implemented under the Business Reforms Action The global energy sector is stressed due to the Ukraine
Plan (BRAP). In the last eight months, 124 companies war and climate change. What steps are you taking to
have committed to investing 9 billion dollars and provid- alleviate the situation in your state?
ing employment to nearly 2 million. The Ukraine war has disrupted energy supply and trig-

“Tamil Nadu has leapfrogged from being 15th in the Ease of Doing
Business rankings to being ranked third in India. We are renowned for

maintaining law and order and industrial harmony”

47 | BW BUSINESSWORLD | 05 November 2022

IN CONVERSATION

In March 2022, M.K. Stalin
visited the new plant of
global glass manufacturing
company, Saint Gobain in
Sriperumbudur

“The semiconductor
value chain requires
high-quality
infrastructure.
The state has the
necessary resources
and is well positioned
to exploit this
opportunity”

gered a huge rise in the price of coal, global crude oil and worth 2.2 billion dollars in 2021-22. Tamil Nadu sees
natural gas along with a sharp fall in electricity generation semiconductors as a 1 trillion-dollar market opportunity.
from different fuel sources. As a result, the prices in the The semiconductor value chain requires high-quality
Indian electricity market have reached unprecedented infrastructure. The state has the necessary resources and
levels. Yet, Tamil Nadu has been able to ensure 24*7 power is well positioned to exploit this opportunity. We recent-
supply throughout the state. ly signed an MoU of over Rs 25,000 crore with IGSS, a
Singaporean company to set up a fab manufacturing unit
TANGEDCO Grid achieved its maximum-ever day in the state.
consumption of 388.078 MU and managed to cater to
its highest ever instantaneous demand of 17,563 MW on How is the Government of Tamil Nadu contributing
29th April 2022. The present daily average consumption to the tech sector growth in the state?
of the state is around 320 MU. It is being met by gen- We aim to improve the availability of digital content
eration from existing power stations, including hydro
stations and thermal power plants, and through Central
Generating Stations share and power purchase.

The hydro generation is utilised judiciously to main-
tain adequate reservoir storage levels for the summer
months. For the past three months, renewable energy has
contributed about 26 per cent of the state’s total power
consumption.

As the chorus for domestic semiconductor production
grows in India, what are TN Government’s plans to
promote chip manufacturing in the state?
The future is digital. Increased usage of electronics across
multiple sectors has brought semiconductors to the fore
as a strategic sector. Tamil Nadu ranks second in India for
computer, electronics, and optical products manufactur-
ing accounting for 18 per cent of national production; it
ranks fourth in terms of electronic exports, which were

48 | BW BUSINESSWORLD | 05 November 2022

In July 2021, M.K. Stalin
in a meeting with VTC
Group of Companies’
shareholder Jurgen
Leuze, Administrator,
Baettr and Peter
Pallishoj, Head of India
Development in Tamil
Nadu Secretariat

“A holistic portal features predictive analysis and uses real-time data to help my office
monitor projects and help decision-making across critical areas”

and e-products, automate government processes and critical areas. Key real-time data include water levels in
inter-agency connectivity, bridge the gap between indus- key reservoirs, water availability, rainfall patterns, em-
try and academia and enhance the commercialisation of ployment trends, police reports of major crimes, and pric-
research and development. es of food and other essential commodities.

Additionally, my government is committed to building Do you think Tamil Nadu ranks higher in EODB rank-
a robust, ultra-high-speed, intelligent and trusted ICT ings than states like Karnataka, which are experienc-
infrastructure across the entire state, fostering business ing communal tensions?
process outsourcing (BPO) business activities and en- Over the last year, we have been able to provide over 130
couraging technological and digital innovation across online services across departments on the Single Window
industries. Portal. Tamil Nadu has leapfrogged from being 15th in the
EODB rankings to being ranked third in India. We are re-
The state boasts of 11 per cent of the total IT investments nowned for maintaining law and order and industrial har-
in the country and ranks third in software exports. The mony. I wish to make Tamil Nadu number one in EOBD
state is home to six Submarine Cables connected to the in India and be recognised globally. We will benchmark
world. The Government is launching the 25,000 sq. ft. against not only local but also global investment hubs.
i-tamilnadu Technology (iTNT) hub at the Anna Univer-
sity campus. What is your unfinished agenda as far as the economic
growth of Tamil Nadu is concerned?
The Tamil Nadu Telecom Infrastructure Policy grants I have not achieved everything in my first year, but we have
Right of Way (RoW) for laying OFC and installation of done more than what we thought was possible. A lot has
Base Tower Station (BTS) in the state. This provision will been planned towards realising an inclusive Dravidian
help in providing seamless coverage and connectivity to model of economic growth. I am confident that we are on
the people in rural and remote areas. the trajectory to becoming a 1 trillion-dollar economy by
2030.
Technology is being leveraged to provide quality servic-
es to the citizens and businesses. A holistic portal features
predictive analysis and uses real-time data to help my
office monitor projects and help decision-making across

49 | BW BUSINESSWORLD | 05 November 2022

ENTREPRENEURSHIP

Women
entrepreneurs
spurring India’s
economic
progress

Dr Chaitra Harsha, Managing Director of Vipragen
Biosciences, is making strides in the field of social
entrepreneurship and healthcare innovation with her
multiple skillsets and cross sectoral exposure

By BW Team ecosystem. Representing the growing tribe of women entrepre-
neurs in the country, Dr Chaitra Harsha, MD of Vipragen
T HE AsiaBerlin Summit which is Biosciences, was among the delegation from India. She is a
an event held by the German gov- renowned personality in the field of social entrepreneurship and
ernment to bring together all the healthcare innovation with her multiple skillsets and cross sectoral
stakeholders involved in the crea- exposure. Dr Chaitra is an alumnus of the prestigious Indian
tion of a favourable ecosystem for Institute of Science (IISc) and is a medical doctor by training but
startups was held from September instead of clinical practice, opted to pick a career in research. She
12-16 in Berlin, Germany. The summit also took up a course at the Indian Institute of Management (IIM)
was originally envisioned and initiated in Bengaluru designed to aid women entrepreneurs by teaching
in 1997 and has constantly worked to certain core business principles.
encourage startups and the startup eco-
system to develop across the world. This Dr Chaitra has been a key participant representing India in
year’s focus was to promote sustainable many events including the Global Economic Dialogue in Hamburg,
development goals within the startup Germany and had also attended the World Economic Forum
(WEF) where she literally rubbed shoulders with Ivanka Trump. In
addition to this, she is also a Charter Member of TiE Bangalore
Chapter, where she actively mentors budding women entrepre-
neurs. Dr Chaitra’s Vipragen, a team of dynamic individuals, is a
Contract Research Organisation (CRO) helping global organisa-
tions focus their resources on the research and development of
new drugs, treatments, vaccines etc. by outsourcing their pre-clin-
ical trials. The global CRO market size is projected to reach US$

50 | BW BUSINESSWORLD | 05 November 2022