4 MAY 2024 E Book

Mark Read (L) & CVL Srinivas,  WPP CREATIVITY AND MARKETING BEHEMOTH, WPP IS HONING ITS INDIA STRATEGY TO FORMULATE A TECH-FOCUSSED PROPOSITION THAT IS BOOSTING ITS GLOBAL GROWTH fifffflffiflfflfififfiffififflflffffiffififfiffl CRACKING THE INDIA-FIRST CODE SCAN TO WATCH WPP's CVL Srinivas in mixed reality like experience Just point your camera at the QR code fflflfflffififflffl ffffifflffifl Rs 200 www.businessworld.in RNI NO. 39847/81 I 04 MAY 2024 WPP’s CVL Srinivas in mixed reality like experience

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fifffflffiflfflfififfiffififflflffffiffififfiffl Mark Read & CVL Srinivas, WPP John Wren, CEO, Omnicom Anupriya Acharya, South Asia CEO, Publicis Groupe Shashi Sinha, CEO, IPG Mediabrands India Rana Barua, Group CEO, Havas India, SEA, North Asia (Japan and South Korea) Sam Balsara, Chairman, Madison Vikram Sakhuja, Group CEO, Madison Media & OOH Prasanth Kumar, CEO – South Asia, GroupM Kartik Sharma, CEO, Omnicom Media Group India Hephzibah Pathak, Executive Chairperson, Ogilvy India Harsha Razdan, CEO, dentsu South Asia Gunjan Khetan, Director Marketing, Perfetti Van Melle India Gunjit Jain, Executive Vice President - Marketing, Colgate-Palmolive India Pragya Bijalwan, Chief Marketing Offcer, Crompton Greaves Consumer Electricals Rahul Talwar, Chief Marketing Offcer, Max Life Insurance Ranjani Krishnaswamy, CMO - Mainline Analog Watches, Titan Company Shubhranshu Singh, Vice President - Marketing - Domestic and IB - CVBU, Tata Motors Shuvadip Banerjee, Chief Digital Marketing Offcer, ITC Sukhleen Aneja, CEO, Good Brands Co, Good Glamm Group Tushar Malhotra, Director of Sales & Marketing, Bisleri Zoher Kapuswala, Marketing Head (Ferrero Rocher, Nutella & Tic Tac), Ferrero India FEATURING MARKETING & BRANDING GURUS INSIGHTS FROM MODERN MARKETING IS PLAYING A LARGER ROLE IN FINDING NEW GROWTH AVENUES FOR BUSINESSES & BRANDS ARE GOING ALL OUT TO BRING SOLUTIONS CLOSER TO CONSUMERS INSIDE THE RS 1.11 LAKH CRORE INDIAN MARKETING & AD SECTOR Anisha Motwani Harish Bijoor Karthi Marshan Ambi Parameswaran www.businessworld.in I RNI NO. 39847/81 I 04 MAY 2024

04 May 2024 | BW BUSINESSWORLD | 5 MARKETING, COMMUNICATION, media and creativity are subjects that are very close to my heart, for I have not only seen this sector first-hand for more than two-and-a-half decades but am also an intrinsic part of it. This issue, therefore holds a special meaning for me. In this edition, where we continue to delve into the transformative effects of technology across various sectors, we spotlight the dynamic world of marketing and advertising that is pivotal in shaping consumer perceptions. This sector is undergoing a rapid evolution with the integration of generative AI. The past year has been particularly insightful. Despite a slowdown in several sectors, including among Indian startups, companies like boAt and Noise have boldly increased their advertising expenditures. This trend underscores the broader realisation among marketers that robust investment in brand building is critical, especially in times marked by global challenges and uncertainties. It’s a strategic move that aims to solidify market presence and ensure long-term business success. India continues to stand out on the global stage, quickly becoming one of the fastest-growing advertising markets too. This growth is occurring in a context where other major markets, notably China, are experiencing shifts that have redirected global attention towards India. According to the Pitch Madison Ad Report, the Indian advertising market reached a remarkable size of Rs 99,038 crore in 2023 and is expected to grow by 12 per cent next year to an estimated Rs 1.11 lakh crore. Meanwhile, GroupM is optimistic that the market will expand from Rs 1.41 lakh crore in 2023 to Rs 1.55 lakh crore in 2024, growing at a rate of 10.23 per cent. At the heart of this burgeoning market is WPP, the world’s and India’s largest advertising and marketing conglomerate, which continues to set trends. In our cover interview, WPP’s global CEO Mark Read remains bullish on India’s growth prospects and views India as a central hub in driving the company’s global solutions. This strategic emphasis on India highlights the country’s increasing importance and influence in the global advertising and marketing landscape – a sentiment that is echoed in an exclusive interview with Omnicom CEO John Wren, another marketing and advertising legend who is impacting the sector globally. We dive deep into how WPP and other industry leaders are leveraging technology, particularly generative AI, to foster creativity and drive innovation in advertising. We explore how these technologies are not merely tools for efficiency but are becoming central to crafting personalised, compelling marketing narratives that resonate with diverse audiences across the globe. Join us on this exploration of technology’s impact on marketing and advertising. We hope these perspectives will inform and inspire you. ANNURAG BATRA [email protected] MARKETING IS BIG BUSINESS EDITOR-IN-CHIEF’S NOTE

6 | B W BUSINESSWORLD | 04 May 2024 BW Businessworld does not accept responsibility for returning unsolicited manuscripts and photographs. All unsolicited material should be accompanied by self-addressed envelopes and sufficient postage. Published and printed by Annurag Batra for and on behalf of the owners, BW Businessworld Media Private Limited. Published at 74-75, Scindia House, Connaught Place, New Delhi-110001, and printed at Thompson Press India Limited. Editor : Annurag Batra. © Reproduction in whole or in part without written permission of the publisher is prohibited. All rights reserved. R.N.I.No. 39847/81 BW Businessworld Media Private Limited EDITORIAL OFFICES BW Businessworld Media Pvt. Ltd. 74-75, Scindia House, Connaught Place, New Delhi-110001 Phone: 9818063325 ADVERTISEMENT / CIRCULATION / SUBSCRIPTION ENQUIRIES BW Businessworld Media Pvt. Ltd. 74-75, Scindia House, Connaught Place, New Delhi-110001 Phone: 9818063325 SUBSCRIPTION SERVICE Vinod Kumar +91 9810961195, [email protected], [email protected] Subscription rates: ONE YEAR - Rs 3,499 TWO YEARS - Rs 6,499 THREE YEARS - Rs 9,499 HUMAN RESOURCES: Namrata Tripathi ([email protected]) LEGAL ADVISOR: Sudhir Mishra (Trust Legal) GROUP CHAIRMAN & EDITOR-IN-CHIEF: Dr. ANNURAG BATRA CEO, BW COMMUNITIES Bhuvanesh Khanna CEO & CHIEF INNOVATION OFFICER Hoshie Ghaswalla (CEO-BW Engage) GROUP EDITORIAL DIRECTOR Noor Fathima Warsia MANAGING EDITOR: Palak Shah EDITORIAL TEAM Sr. Associate Editors: Ashish Sinha, Jyotsna Sharma, Meha Mathur Associate Editor: Ojasvi Nath Assistant Editor:Tarannum Manjul, Priyanka Singh Sr. Correspondents:Arjun Yadav, Deep Majumdar Regional Editor (Technology & South): Rohit Chintapali Special Correspondent: Rajany Pradhan, Abhishek Sharma Correspondent: Barkha Rawat Jr. Correspondent: Nitesh Kumar, Himanshu Kumar Ojha, Shruti Tripathi, Sangeet Kumar Sanu DESK TEAM Deputy Editor: Mukul Rai Associate Editors: Madhumita Chakraborty; Smita Kulshreshth ART TEAM Art Directors: Dinesh Banduni, Shiv Kumar, Shivaji Sengupta Assistant Art Director: Rajinder Kumar Infographics & Data Visualiser: Arun Kumar, Rahul Roy Assistant Images Editor: Sanjay Jakhmola PHOTO TEAM Sr. Photo Researcher: Kamal Kumar, Photographer: Naval Kishore BW ONLINE: Assistant Editor: Poonam Singh VIDEO EDITORIAL TEAM Video Team: Pappu Kumar Singh, Sunny Kumar Paswan Sr. Cameraperson: Ratneshwar Kumar Singh BW APPLAUSE & EVERYTHING EXPERIENTIAL: Ruhail Amin, Neha Kalra, Pratyaksh Dutta BW AUTO WORLD: Utkarsh Agarwal BW DISRUPT: Resham Suhail BW EDUCATION: Upasana BW HEALTHCARE WORLD & BW WELLBEING WORLD: Kavi Bhandari, Sanjana Deb BW HOTELIER: Editor: Saurabh Tankha, Operations Controller: Ajith Kumar LR BW MARKETING WORLD: Soumya Sehgal, Reema Bhaduri BW PEOPLE: Sugandh Bahl, Savi Khanna BW LEGAL WORLD: Krishnendra Joshi, Kaustubh Mehta BW SECURITY WORLD: Shilpa Chandel BW POLICE WORLD: Ujjawala Nayudu BW ENGAGE/BW CIO: Musharrat Shareen BW RETAIL: Amisha Sharma BW HINDI: Assistant Editor: Lalit Narayan Principal Correspondent: Neeraj Nayyar Senior Correspondent: Ritu Rana, Correspondent: Dheeraj Chand Belwal DIRECTOR: Prasar Sharma GROUP DIRECTOR – REVENUE: Aparna Sengupta GROUP SR. VICE PRESIDENT - STRATEGY, OPERATIONS & MARKETING Tanvie Ahuja ([email protected]) CEO, BW HEALTHCARE WORLD & BW WELLBEING WORLD: Harbinder Narula DIRECTOR, PROJECTS & COMMUNITIES: Talees Rizvi VICE PRESIDENT: Mohit Chopra SALES TEAM NORTH: Ravi Khatri, Anjeet Trivedi, Rajeev Chauhan, Amit Bhasin, Nitin Pawar, Somyajit Sengupta, Sajjad Mohammad, Agrata Nigam, WEST: Kiran Dedhia, Santosh B. Singh, Nilesh Argekar, Deepak Bhatt SOUTH: C S Rajaraman MARKETING & DESIGN TEAM: Kartikay Koomar, Mohd. Salman Ali, Moksha Khimasiya, Shweta Boyal, Alka Rawat, Mudit Tyagi, Arti Chhipa, Gazal Gupta, Himanshu Khulbe Asst. Manager - Design: Kuldeep Kumar EVENTS TEAM Tarun Ahuja, Devika Kundu Sengupta, Akash Kumar Pandey, Mohd. Arshad Reza, Ashish Kumar, Nandni Sharma, Savi Chauhan, Mahek Surti, Reeti Gupta, Atul Joshi, Biren Singho, Sahil Tiwari, Neeraj Verma, Anupama Agrawal, Sushmita Kumari, Vaishali Vij, Anmol Kaur, Baani Chauhan, Shivam Popli, Prashant Kumar, Shweta Srivastava, Kuldeep Prajapati, Saloni Jain, Aditi Rawat, Deepshikha Singh, Shailesh Pal BW COMMUNITIES BUSINESS LEADS Priya Saraf (BW Education), Chetan Mehra (BW Disrupt), Shruti Arora (BW Marketing World), Priyanshi Khandelwal (BW Sustainability) CIRCULATION TEAM General Manager - Circulation, Subscription & Sales: Vinod Kumar ([email protected]) NORTH: Vijay Kumar Mishra, Sanjay Kumar, Mukhtadir Malik, Kamlesh Prasad WEST: Gorakshanath Sanap SOUTH: Sarvothama Nayak K Senior Manager (Production & Printing): Shiv Singh FINANCE TEAM Ankit Kumar, Ishwar Sharma, Shrikant Sharma, Vijay Jangra IT SUPPORT: Brijender Wahal ADMIN SUPPORT: Executive Assistant to MD: Himani Saxena ([email protected]) Assistant to Chairman & Editor-in-Chief: Aman Mishra ([email protected]) VOL. 43, ISSUE 14 04 MAY 2024

Invest in India’s biggest* companies ICICI Prudential Bluechip Fund ICICI Prudential Bluechip Fund (An open ended equity scheme predominantly investing in large cap stocks) is suitable for investors who are seeking*: • Long term wealth creation • An open ended equity scheme predominantly investing in large cap stocks *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Investors understand that their principal will be at Very High risk SCHEME RISKOMETER Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Some of the portfolio holdings as on March 31, 2024. To view the current portfolio, please refer the latest factsheet. Past performance may or may not be sustained in the future. The stock(s)/sector(s) mentioned do not constitute any recommendation and ICICI Prudential Mutual Fund may or may not have any future position in them. The asset allocation and investment strategy will be as per the Scheme Information Document. The Risk-o-meters specified above will be evaluated and updated on a monthly basis. To invest, Visit: www.iciciprumf.com | Download IPRUTOUCH App Contact your Mutual Fund Distributor *Top 100 Companies in terms of full market capitalization.

8 | B W BUSINESSWORLD | 04 May 2024 MAILBOX YOUR COMMENTS TALK BACK Foretelling A F8 Lakh Crore Opportunity BACKED BY TECHNOLOGY AND INNOVATION, THE HIGHLY FRAGMENTED SPIRITUAL ECONOMY OF INDIA IS GETTING FORMALISED, ATTRACTING STARTUPS AND INVESTORS fifffflffiflffffiflffiffffi ffiff ffiffi ffifflfflffffi
ffiffiffiffi ffi ffi ­ffi€fflffff ffiffff‚ffiffiƒffl ffiff ffiffffffiflffffiflffiffi„ ffiff‚ffiffi…ffi…„ ffi…ffi†ffffifflfflffi­ffi ffi ffi„ffi€ ffi‡ff fifffflffiflfiffififflffffiffl www.businessworld.in RNI NO. 39847/81 I 20 APRIL 2024 Rs 200 INNOVATION IS THE KEY This refers to the editorial (“A Heavenly Opportunity Worth $100 Billion”, BW, April 20). Across the country, accessible and handy technology has fuelled the growth of niche segments like astrology and temple tourism, democratising the entire sector. Scheduling visits and incurring high costs are no longer barriers to religious experiences and darshan. New startups are likely to enter this space with never-seen-before innovative offerings. This massive market is ripe for disruption by enterprising entrepreneurs. However, the sector remains largely unorganised, requiring users to navigate multiple sources for information and services. This lack of organisation presents a significant opportunity for new ventures to streamline the user experience. AMANDEEP SINGH, EMAIL HEALTH NEEDS TO BE A TOP PRIORITY This refers to the editorial (“Why Are Our Tertiary Care Hospitals Always Crowded?”, BW, April 20). Despite certain improvements, India’s public healthcare system is dreadfully insufficient. We lack adequate rural facilities, physicians and beds. Even though programmes like Ayushman Bharat provide promise, spending overall is still modest. The onus is placed on expensive private hospitals that are unaffordable for many. Massive funding is desperately needed for public healthcare, particularly at the primary and secondary levels. This will free up overcrowded tertiary facilities and increase access to high-quality care. Equipping individuals with digital health tools should be a top priority, but we should not rely just on market forces; we also need to develop a strong public system. VANSHIKA VERMA, EMAIL BLIPP THIS PAGE TO GIVE US YOUR FEEDBACK INSTANTLY Submissions to BW |Businessworld should include the writer’s name and address and be sent by email to the editor at [email protected] or by mail to 74-75, Scindia House, Connaught Place, New Delhi-110001

THE PINNACLE OF INDIAN RACING

10 | BW BUSINESSWORLD | 04 May 2024 CONTENTS VOLUME 43, ISSUE 14 04 MAY 2024 Covers design by SHIV KUMAR Leading from the front WPP’s five-year long journey of creative transformation, backed by an India-first strategy, has put it on the path of global growth 44 12 Jottings Shrapnel from War Zones Puncture Growth Prospects for the Whole World; Indian Workers in Israel; India’s Tryst with Tesla & Monsoon Predictions 16 Columns Minhaz Merchant; (p. 18) Vikas Singh; (p. 20) Srinath Sridharan; (p. 22) Krishan Kalra; (p. 24) Kiran Karnik; (p. 26) Prakash Iyer; (p.30)Srinath Sridharan & Steve Correa 32 Small Is Risky? Sebi’s observation on the heightened susceptibility of small entities to price manipulation brings up the urgent need for greater vigilance and regulatory measures along with investor education 36 Making Sense Of Data The rate of growth of India’s GDP varies across different agencies. How can the average taxpayer decode the implications of varying data points? THE CREATIVISTS 48 Mark Read, WPP 52 CVL Srinivas, WPP 54 Prasanth Kumar, GroupM 56 Hephzibah Pathak, Ogilvy 58 Babita Baruah, VML 60 Lulu Raghavan, Landor 61 Anusha Shetty, Grey 70 Shashi Sinha, Vaishali Verma & Aditi Mishra, IPG Mediabrands 72 Anupriya Acharya, Publicis Groupe CREATIVITY + TECH + INNOVATION fifffflffiflfflfififfiffififflflffffiffififfiffl Mark Read & CVL Srinivas, WPP John Wren, CEO, Omnicom Anupriya Acharya, South Asia CEO, Publicis Groupe Shashi Sinha, CEO, IPG Mediabrands India Rana Barua, Group CEO, Havas India, SEA, North Asia (Japan and South Korea) Sam Balsara, Chairman, Madison Vikram Sakhuja, Group CEO, Madison Media & OOH Prasanth Kumar, CEO – South Asia, GroupM Kartik Sharma, CEO, Omnicom Media Group India Hephzibah Pathak, Executive Chairperson, Ogilvy India Harsha Razdan, CEO, dentsu South Asia Gunjan Khetan, Director Marketing, Perfetti Van Melle India Gunjit Jain, Executive Vice President - Marketing, Colgate-Palmolive India Pragya Bijalwan, Chief Marketing Offcer, Crompton Greaves Consumer Electricals Rahul Talwar, Chief Marketing Offcer, Max Life Insurance Ranjani Krishnaswamy, CMO - Mainline Analog Watches, Titan Company Shubhranshu Singh, Vice President - Marketing - Domestic and IB - CVBU, Tata Motors Shuvadip Banerjee, Chief Digital Marketing Offcer, ITC Sukhleen Aneja, CEO, Good Brands Co, Good Glamm Group Tushar Malhotra, Director of Sales & Marketing, Bisleri Zoher Kapuswala, Marketing Head (Ferrero Rocher, Nutella & Tic Tac), Ferrero India FEATURING MARKETING & BRANDING GURUS INSIGHTS FROM MODERN MARKETING IS PLAYING A LARGER ROLE IN FINDING NEW GROWTH AVENUES FOR BUSINESSES & BRANDS ARE GOING ALL OUT TO BRING SOLUTIONS CLOSER TO CONSUMERS INSIDE THE RS 1.11 LAKH CRORE INDIAN MARKETING & AD SECTOR Anisha Motwani Harish Bijoor Karthi Marshan Ambi Parameswaran www.businessworld.in I RNI NO. 39847/81 I 04 MAY 2024

04 May 2024 | B W BUSINESSWORLD | 11 The pages in BW Businessworld that are labelled BWi or Promotions contain sponsored content. They are entirely generated by an advertiser or the marketing department of BW Businessworld. Also, the inserts being distributed along with some copies of the magazine are advertorials /advertisements. These pages should not be confused with BW Businessworld’s editorial content. TOTAL NO. OF PAGES INCLUDING COVER 148 74 Rajdeepak Das, Leo Burnett 76 John Wren, Omnicom 78 Kartik Sharma, Omnicom India 80 Rana Barua, Havas 82 Harsha Razdan & Anita Kotwani, Dentsu 84 Sam Balsara, Vikram Sakhuja & Lara Balsara, Madison 88 Deepak Hiremath, Vermmillion Communication 92 Uma Shankar Bhardwaj, iAvatarz Digital 98 Atul Hegde, YAAP 40 The India Imperative Poised to grow anywhere between 10-12%, the Indian advertising sector is driving the global market 62 Widening Horizons Brands in India are doubling down on how to identify and create new markets 68 Sustainability Unmasked An authentic green approach 100 Experts Speak Chintamani Rao; (p. 102) Sunil Gupta; (p. 128) Ambi Parameswaran 104 Symbiotic Synthesis Importance of cross-functional collaboration 114 Bold Is Beautiful Moonshot Founder discusses the talent hurdle in the creative ad biz 115 The Tech Play Womb Founder on the increasingly central role of tech 116 Early Adopters Independent agency Talented discusses the requirements for top-notch creativity 118 Disruption Creativeland Asia’s Founder warns against misuse of AI in creativity 123 Branding Big Business & brand-strategy specialist Harish Bijoor on niche vs big brands 124 Growing Ad Spends Storm the Norm Ventures’ Anisha Motwani on the upsurge of ad spends, digital marketing & more 126 No Going Back For Ads Marketing veteran Karthi Marshan on brand’s struggle to tell exhilarating stories 140 Photo Feature Moments from BW Retail World Summit 110 India: Talent Goldmine Brands are harnessing Indian talent to pull off the toughest tasks within their organisations 113 Full Brained Thinking Tilt Brand Solutions on a future shaped by tech & brand experiences 94 Upendra Rai In conversation with the CMD & Editor-in-Chief of Bharat Express News Network 76 OMNICOM’S BIG MOVE CEO John Wren discusses Omnicom’s investment in and commitment to India as it pursues the path of bringing the holding company’s collective & individual agency strengths to the market

12 | BW BUSINESSWORLD | 04 May 2024 JOTTINGS Shrapnel from War Zones Puncture Growth Prospects for the Whole World ANNOUNCING ITS World Economic Outlook on 16 April, the International Monetary Fund (IMF) said the “forecast for global growth five years from now – at 3.1 percent – is at its lowest in decades.” The IMF anticipates a slight acceleration in growth in the developed world, but sees dimmer prospects for China and the emerging market economies. “The baseline forecast is for the world economy to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023,” the IMF forecasts, anticipating “a modest slowdown” in emerging market and developing economies from 4.3 per cent in 2023 to 4.2 per cent in 2024 and again in 2025. New “price spikes stemming from geopolitical tensions, including those from the war in Ukraine and the conflict in Gaza and Israel, could, along with persistent core inflation where labor markets are still tight, raise interest rate expectations,” cautions the IMF. The World Trade Organization (WTO) which released its forecasts for global trade earlier in April had sounded more optimistic. It predicted a 2.4 per cent rise in merchandise trade volume in 2024, after a 1.2 per cent drop in 2023, with a rider that geopolitical tensions were a risk to the forecast. “Conflict in the Middle East has diverted sea shipments between Europe and Asia while tensions elsewhere could lead to trade fragmentation. Rising protectionism is another risk,” warned the WTO. Wonder why the actors on the world stage do not realise that bomb blasts and missile attacks on one part of the world reverberate all around it. — Madhumita Chakraborty SAFETY FIRST THE UNION MINISTRY of External Affairs has issued an advisory discouraging Indians from travelling to Iran or Israel “till further notice”, as war escalates in West Asia. In its advisory, the Centre has urged Indians to observe utmost precautions about their safety and restrict their movements to the minimum. Ironically, no such advisory has been issued for Indian construction workers on their way to the zone of strife. Already, over the last few months several hundred Indian workers have moved to Israel lured by attractive salaries offered by private sector employers there. Newspaper reports have said that many Indians chose to travel to Israel in search of jobs and took the risk despite the volatile situation in West Asia in view of the limited opportunities at home. An International Labour Organization (ILO) report had earlier revealed that about 80 per cent of unemployed in the country are youth and that their numbers had risen from 5.6 per cent in 2000 to 6.2 per cent in 2012, increasing threefold from then on to nearly 18 per cent in 2018, to reach around 15.1 per cent in 2020. As the war in Gaza escalates, one wonders whether the Indian government should perhaps, call these desperate youths back home? — Abhishek Sharma Photograph by Cavan Photograph by Twixx

04 May 2024 | B W BUSINESSWORLD | 13 INDIA’S ELECTRIC VEHICLE (EV) market is about to change with the advent of Tesla. Af ter years of anticipation, the United States headquartered EV giant is about to make its debut in India with its first major batch of vehicles being shipped in from Germany. The move comes on the heels of a new EV policy approved by the Indian government in March, significant milestone in Tesla’s Indian venture. Tesla is already in talks with potential local partners, including Mukesh Ambani’s Reliance Industries, to facilitate its market entry. This venture could set the stage for a broader acceptance of EVs in India, driving innovation, reducing prices, and shifting consumer attitudes towards sustainable transportation options. Tesla’s plans include a production capacity of 500,000 units annually and possibly a dedicated battery plant to support its manufacturing. Tesla’s focus on building a robust charging infrastructure, adaptable for a market dominated by smaller vehicles, will be crucial. Tesla’s success in India will depend on its strategic decisions on pricing, local partnerships, and investment in manufacturing and infrastructure. Tesla’s entry could stimulate growth and innovation across the entire Indian EV ecosystem, provided the infrastructure and policy environment keep pace with market developments. — Utkarsh Agarwal India’s Tryst with Tesla IN ITS 2024 FORECAST for the southwest monsoon, the India Meteorological Department (IMD) anticipates above-normal rainfall from June to September. It projects precipitation levels to reach 106 per cent of the long period average (LPA), with a margin of error of plus or minus fi ve per cent. Skymet, a private weather forecasting agency, offered a similar view a few weeks ago, suggesting a ‘normal’ monsoon for the same period, estimating it to be around 102 per cent of the LPA. These forecasts underscore the uncertainty surrounding the upcoming monsoon season, the implications of which are far-reaching for an agrarian economy like India’s. Previous experiences of uneven rainfall distribution a c r o s s r e g i o n s a n d timeframes, compounded MONSOON PREDICTIONS by other meteorological disturbances, have inflicted considerable damage to agricultural output and livelihoods. This has invariably led to persistent food inflation, which, in fiscal 2024, surged to 7.5 per cent from an already elevated 6.6 per cent. Given the pivotal role of agriculture in India’s economy, the stakes are high. A second consecutive year of sub-par monsoon performance could exacerbate the existing challenges, disproportionately affecting certain regions and crops. While a positive monsoon forecast offers a glimmer of hope, it’s essential to approach it with caution, considering the complex interplay of factors such as El Niño and La Niña conditions, as well as the Indian Ocean Dipole phenomenon. —Ashish Sinha which includes incentives for global manufacturers like Tesla to set up local production facilities. Under the policy, companies investing at least Rs 4,150 crore can benefit from reduced import duties, provided they meet escalating local component sourcing targets. This policy allows for the import of 8,000 EVs annually at a reduced 15 per cent import duty, marking a Photograph by Swisshippo Photograph by Mitch.zul

14 | B W BUSINESSWORLD | 04 May 2024 S THE INDIAN STOCK MARKET over-heated? The price-earnings (P/E) ratio of the BSE Sensex in April 2024 was 25.23. In February 2021 it was 36.21. So stocks have corrected, evening out post-pandemic anomalies. A country’s stock market valuation depends on three key factors. First, the growth rate of the economy. Second, the profit trajectory of listed companies. And third, political stability. India’s long-term GDP annual growth rate at eight per cent is likely to be at least twice the average growth rate of global GDP. Can India sustain this growth rate over the next several years? Services account for nearly 60 per cent of India’s overall GDP. If the services sector grows at 10 per cent a year, that would straightaway contribute six per cent to overall economic growth. On that strong base, if industry (with around 25 per cent weightage in GDP) and agriculture (15 per cent) grow even at a modest average of five per cent annually, they would contribute another two per cent to GDP growth. This would enable the economy to expand at a sustainable eight per cent per year well into the next decade. What about corporate profit growth? The Indian corporate sector’s net profit has risen at over 10 per cent a year after the Covid pandemic, taking both the Gaza and Russia-Ukraine conflicts in its stride. Despite trade disruptions and elevated crude oil prices, the pharmaceutical, banking, capital goods and infrastructure sectors are posting healthy returns. The slowdown in FMCG spends is gradually easing while the infotech services industry is set to enjoy a better FY25 than FY24. Three rate cuts by the US Federal Reserve beginning June 2024 are likely this calendar year. That will boost US companies’ appetite for larger tech budgets. The third factor influencing stock prices is political stability. The Sensex and Nifty have priced-in an NDA victory in the 2024 Lok Sabha election. The scale of the win will determine how the market reacts. No one in the Narendra Modi government is likely to forget the BJP’s “India Shining” slogan before the party plunged to defeat in the 2004 Lok Sabha poll. So confidant was the party’s think tank led by the late Pramod Mahajan that it convinced Prime Minister Atal Bihari Vajpayee to advance the election from September 2004 to March 2004. Sure of victory, the BJP instead saw its seat tally fall from 182 to 138. The Congress with just seven more seats at 145, stitched together the UPA-I government with the help of the Left’s 59 MPs and other allies. Modi isn’t Vajpayee. If the NDA does win a convincing majority in June 2024, the stock market will continue its four-year-old bull run. It knows that Modi’s first term (2014-19) was spent fixing the broken economy he inherited from UPA-2. His second term (2019-24) was disrupted by a once-in-a-century pandemic and two wars. A likely third term will focus on turbocharging growth. The priority will be big-ticket economic reforms. The establishment of Tesla’s electric vehicle (EV) manufacturIndia’s Equity Revolution I Minhaz Merchant COLUMN MINHAZ MERCHANT The writer is the biographer of Rajiv Gandhi and Aditya Birla and author of The New Clash of Civilizations (Rupa 2014). He is founder of Sterling Newspapers Pvt Ltd., which was acquired by the Indian Express Group

04 May 2024 | B W BUSINESSWORLD | 15 (FIIs) know that the current account deficit (CAD) in 2023-24 will be below one per cent (as predicted in this column several months ago). With the balance of payments (BoP) likely to show a surplus of $40-50 billion following India’s inclusion in the JP Morgan and Bloomberg EM bond indices, the rupee will remain relatively stable. US treasury rates will meanwhile begin their downward cycle, drawing investment towards high-growth, stable equity markets like India. Historically, Indian stock markets have recorded an average annual growth rate of 12-15 per cent over the last decade. What could go wrong? Barring unforeseen global events, not much can disrupt the Indian stock market’s steady rise. Sabharwal and Agarwal relate an anecdote: “Twenty years ago, an investor told one of us, ‘India is a Mickey Mouse market, my single holding in China Mobile is worth more than my 25-stock Indian portfolio.’ “China’s 22 per cent MSCI weight is today only marginally higher than India’s 18 per cent. India’s qualitative market, combined with demography and democracy, positions us to overtake China in index weightage, market cap and foreign investment in about a decade.” That’s as positive a forecast as you can get. ing facility in India, Apple’s ramped-up production of i-Phones, the new plants for semiconductor chips being set up by Tata and US-based Micron, and India’s inclusion from June 2024 in JP Morgan’s emerging markets (EM) bond index are all positive factors. On a micro basis, the surge in retail demat accounts suggests strong demand for equity and bonds. On a macro level, the three factors of GDP growth, corporate sector buoyancy and political stability point to the demand being sustainable. Manish Sabharwal of Teamlease Services and Dhiraj Agarwal of Ambit Investment Managers pointed out in a Mint op-ed that India’s market is more complex and diverse compared to others: “India has companies in many sectors (rather than a few selected for competitive advantage), diverse consumer markets (mass production with localisation) and a large services sector (with higher employment elasticity than manufacturing). We have less concentration than Korea (where two big electronics companies are more than 20 per cent of its market cap), Taiwan (TSMC alone is 25 per cent) and Saudi Arabia (where 80 per cent of its $2.7 trillion market cap is on account of Aramco). Our biggest company Reliance equals only about six per cent of India’s market cap. Our sectors are widely distributed across financial services (at 33 per cent), technology (14 per cent), oil and gas (14 per cent), consumer goods (nine per cent), automobiles (seven per cent) and pharma (four per cent).” India’s 150 million demat accounts are a cushion in the event of foreign institutional investors (FIIs) hedging their bets and returning to a resurgent and cheaper Chinese market with lower P/E multiples. In fact, the opposite is likely to happen. Foreign Institutional Investors Historically, Indian stock markets have recorded an average annual growth rate of 12-15 per cent over the last decade. What could go wrong? Barring unforeseen global events, not much can disrupt the Indian stock market’s steady rise Photograph by Movinglines

16 | B W BUSINESSWORLD | 04 May 2024 upward mobility, now sits atop a vertiginous escalator. Its price tag rockets skyward, leaving young adults saddled with crippling debt before they even step into the job market. Soaring educational expenses create insurmountable debt for young adults entering the workforce, exacerbating socioeconomic divides. Most households break the bank or mortgage to pay for professional courses. The exorbitant price tag renders higher education unattainable for most working families, resulting in the ‘exclusion’ of youth from the system. This crisis resonates across campuses and cities, spotlighting the transformation of education into a debt trap rather than a pathway to prosperity. Education is a costly pursuit. This underlines a very disturbing trend. Education and health expenses impose an unbearable burden on most families. Parents are compelled to make agonising choices, often sacrificing savings or taking on debt to secure their children’s academic success. The Job Market Maze: Where Security is a Mirage: Gone are the days of predictable, high-paying jobs. The landscape has morphed into a labyrinth of gig economies, precarity, and automation. While skills remain crucial, job security feels ever more elusive, making long-term financial planning as precarious as balancing on a tightrope. The Crux study unveils a harsh reality for Indian millennials, witnessing a median wealth decline of 15 per cent compared to their parents. The vision of a secure future diminishes as the widening gap between costs and earnings takes centre stage. Despite investing in higher education, millennials struggle to match their parents’ wealth accumulation. For instance, engineers pay Rs 20 lakhs for graduation from a top private institution, taking three years to realise the investment. Those from lower-tier colleges pay Rs 9 lakhs, but only a quarter secure COLUMN By Vikas Singh BENEATH the dazzling fireworks of India’s economic boom, a flicker of doubt dances in the shadows. Will the generation propelling this vibrant surge inherit a diminished echo of prosperity? This isn’t an alarmist’s cry, but a sobering reality painted by shifting landscapes, rising burdens, and the silent erosion of a oncecertain upward mobility. Imagine a tapestry woven with the golden threads of India’s growth: soaring stock markets, bustling IT hubs, layers and expansive infrastructure and the entrepreneurial spirit igniting new ventures. Yet, embedded within this fabric are darker strands – the spiralling cost of education and healthcare, the shifting employment landscape, and the everescalating price tags on life’s necessities like housing, food, utilities, and communication etc. These strands threaten to unravel the promise of a brighter future for the very youth driving this progress. The Indian Dream that once beckoned – owning a home, securing a comfortable retirement – seems a distant mirage. Education: The Escalator Ascending – and Then Vanishing: Education, once the great equaliser, and passport to The author is an economist and columnist TODAY’S YOUTH MAY BE FINANCIALLY WORSE OFF

17 | B W BUSINESSWORLD | 04 May 2024 World Bank indicates that India’s household saving rate has slipped below 20 per cent, reflecting the ease with which credit is available and the pressure from a consumer-driven culture. The temptation to splurge on the latest gadgets or trendy clothes overshadows the wisdom of building a financial cushion for the future. But this isn’t a preordained script. Encouraging innovation and nurturing startups can unlock new avenues for wealth creation and job opportunities. Policy changes can be our shield against rising costs. Subsidised education, affordable and holistic healthcare, economical housing, and accessible credit solutions can ease the financial burden on young adults. Picture a world where student loans are manageable, home ownership achievable, and healthcare less daunting. Similarly, a robust social security system and flexible retirement options can offer financial security for future generations. Retirement should not be a cliff edge but a gentle slope, allowing individuals to age gracefully without economic anxieties. The future isn’t set in stone. By acknowledging the challenges, embracing responsible economic practices, and investing in policies that empower the youth, India can rewrite the script of the inheritance gap. ‘regular’ jobs, a third work in the unorganised sector with no security or benefits, earning below the per capita income. The ‘payback’ time for investment recovery is five years, leaving the rest unemployed, resulting in a negative rate of return (ROI) and numerous intangible costs for the ‘educated but unemployed.’ The Cost-of-Living Conundrum: A Mountain Out of a Molehill: Housing, education, and healthcare – the very pillars of a secure life – are inflating faster than incomes. This leaves even diligent savers gasping for air as they strive to reach key milestones. Owning a home, once a rite of passage, transforms into a monumental feat. According to the Crux study median housing prices have trebled in the past decade, outpacing income growth by a factor of two. Only double-income families can afford to buy a dwelling in India’s top eight cities. The Home Purchase Affordability Index (HPAI), a measure of a household’s ability to qualify for a housing loan, paints a grim picture: the EMI to income ratio has risen from 40 per cent to a staggering 65 per cent, leaving even double-income families struggling to keep pace. Similarly, the cost of healthcare is galloping and is perhaps the most insidious threat to middle-class stability. The Crux study highlights the alarming trend: a majority of middle-class households are left debt-ridden, their saving wiped out in the aftermath of a family member’s hospitalisation. The relentless rise in living costs looms over every aspect of life, from groceries to transportation to utilities. Even those with stable careers find their purchasing power diminishing year after year. The dream of a secure future, once within reach, now feels like a distant mirage, as the gap between aspirations and reality widens. The Savings Shortfall: Delayed Gratification in a World of Instant Wants: With instant gratification woven into the fabric of modern life, the allure of easy credit and tempting consumer choices often eclipses the discipline of delayed gratification. The culture of “buy now, pay later” eats into saving rates, jeopardising the long-term wealth-building process. Data from the Encouraging innovation and nurturing startups can unlock new avenues for wealth creation and job opportunities. Policy changes can be our shield against rising costs Photograph by Rawpixel

18 | B W BUSINESSWORLD | 04 May 2024 ECENTLY A CHANCE usage of the word – alacrity – in a conversation got me reflecting on the past. In the hustle and bustle of modern life, it’s all too easy to get caught up in our own pursuits, our own ambitions, and our own struggles. But amidst the cacophony of self-interest, have we lost sight of two virtues that once defined our humanity: alacrity and altruism? Alacrity, Cheerful Readiness Alacrity, the cheerful readiness to engage in tasks with energy and enthusiasm, seems to have been replaced by a sense of lethargy and apathy. We rush through our days, checking off to-do lists with robotic efficiency, but do we do so with genuine joy and passion? How often do we stop to appreciate the beauty around us, or to savour the simple pleasures of life? And what of altruism, the selfless concern for the wellbeing of others? Altruism, the Selfless Concern In a world that often seems consumed by greed and individualism, acts of true altruism can feel few and far between. We may donate to charity or volunteer occasionally, but do we truly empathise with the struggles of those less fortunate than us? Do we actively seek out opportunities to alleviate the suffering of others, or do we simply turn a blind eye and carry on with our lives? It’s time for us to pause and reflect on these questions, to consider the role that alacrity and altruism play in our lives, and to rekindle the spirit of compassion and generosity that lies within each of us. Imagine a world where every task was approached with genuine enthusiasm, where every interaction was infused with kindness and empathy. It may seem like an impossible dream, but it’s a dream worth striving for. In today’s world, challenges with altruism and alacrity arise from a variety of societal and cultural shifts. The emphasis on individualism often leads to a prioritisation of personal success over collective well-being, hindering altruistic impulses. Additionally, the pervasive influence of technology and digital distractions can undermine our ability to fully R Rediscovering Alacrity and Altruism (A)muse & Musings By Srinath Sridharan

04 May 2024 | B W BUSINESSWORLD | 19 comes from acts of selflessness and compassion. As we navigate the complexities of our lives, it is crucial to pause and reflect on the path we have chosen, and to ponder on whether or not the sacrifices we make in the name of online validation are worth the erosion of our humanity. We can start by cultivating a mindset of gratitude and mindfulness, by slowing down and appreciating the present moment. We can make an effort to connect with those around us, to listen with open hearts and offer support without expecting anything in return. Small acts of kindness, done with sincerity and intention, have the power to ripple outwards and create positive change in the world. Whether it’s lending a helping hand to a neighbour in need, or simply offering a smile to a stranger, each gesture has the potential to spark a chain reaction of compassion and goodwill. Let’s Reclaim Virtues So let us not lament the loss of alacrity and altruism, but rather let us rise to the challenge of reclaiming these virtues in our own lives. Let us strive to be beacons of light in a world that can sometimes feel dark and uncertain. And let us never forget the profound impact that a single act of kindness can have on the lives of others. In the end, it is not our wealth or our achievements that define us, but rather the depth of our humanity and the sincerity of our compassion. Let us choose to live with alacrity and act with altruism, for in doing so, we not only enrich our own lives, but the lives of those around us as well. The pursuit of happiness lies within our minds and hands. It is not merely a destination to be found externally, but a state of being that emanates from within. These virtues remind us that true fulfillment stems from genuine connections, acts of kindness, and a profound understanding of our interconnectedness with the world around us. In a world that often seems consumed by greed and individualism, acts of true altruism can feel few and far between. We may donate to charity or volunteer occasionally, but do we truly empathise with the struggles of those less fortunate than us? Do we actively seek out opportunities to alleviate the suffering of others, or do we simply turn a blind eye and carry on with our lives? engage in tasks or interactions, diminishing our sense of alacrity. Pursuit of Wealth & Possessions Meanwhile, consumerism and materialism encourage a relentless pursuit of wealth and possessions, diverting attention away from acts of generosity. Social media further exacerbates these challenges by promoting comparison and superficial metrics of success, which can overshadow genuine acts of altruism. Moreover, the demands of modern work often leave individuals feeling overburdened and stressed, leaving little time or energy for selfless deeds or moments of genuine enthusiasm. Overcoming these obstacles requires a concerted effort to prioritise meaningful connections, cultivate gratitude, and seek opportunities for authentic engagement with our communities, thereby reigniting the virtues of altruism and alacrity in our daily lives. Authentic Engagement Our fixation on curated personas and virtual approval has erected barriers to genuine connection and authentic engagement with the world around us. We rush from one online interaction to the next, tethered to our screens and consumed by the pursuit of fleeting digital gratification. In this digital whirlwind of human creation, we have lost sight of the simple joys of existence and the profound fulfillment that The author is a policy researcher & corporate advisor Photograph by Photographee.eu

20 | B W BUSINESSWORLD | 04 May 2024 CAN NEVER FORGET an incident about 30 years ago when the son of a close friend in Punjab came back home after finishing his MD in diagnostics. His parents, who were already running a successful small factory, added a diagnostics wing in the same premises and ordered equipment for x-ray, ultrasound, cat scan etc. The family scion was to start professional life in style. As the parents already knew the medical fraternity in town, he was hoping to get good referrals. On the very first day, as the young man was doing an ultrasound, his assistant came and whispered that a highly reputed big doctor wanted to speak with him urgently. Reluctantly, he apologised to the patient and left midway to take the call. “Puttar, I have sent Roshan Lal (name changed) for an ultra sound, please confirm his gallstones”, “But uncle I don’t see any stones” responded the young doctor. Man at the other end was livid “you have started work today whereas I have been in practice for 60 years, will you now teach me these things, I know he has stones in the gall bladder and needs an urgent surgery; if you can’t ‘see’ any stones, just tell him your machine is out of order and send him to another lab. And, don’t expect any more referrals from me,” said the worthy and slammed the phone! Poor kid was in tears and literally ran to his parents’ office. When they heard the name of his caller, they were also scared and told him, “We can’t make the Doctor Sahib our enemy, we will call on him in a day or two and make amends. Right now please do his bidding”. Guy was aghast but had no choice. He was ruing the decision to get into diagnostics! Well, soon he understood the ‘system’; apparently there was a printed list circulated by the association of labs in the city. Rates for all tests were fixed – x-ray Rupees 10, u/s 30, CT 100 and so on which had to be sent in cash to the referring doctors religiously every week. ‘No payment, no referrals’ was the accepted norm. So, his lab prospered while his dad kept a meticulous account, prepared small white envelopes every Sunday that his peon would go and deliver at the doctors’ homes. There were no secrets and no bashfulness in this straight forward business. Once, at a party, our bright young man accosted another doctor and asked why he hadn’t sent any patients; the reply was quite frank “I haven’t received my envelope last Sunday”. Sure enough dad had slipped up! I tried raising this issue at several meetings of national industry associations and chambers but was patronisingly corrected by CMDs of large chains: “You must be talking about independent labs in small towns. Such things don’t happen in large corporate diagnostic outfits”. I hope and pray they were right and the malaise is confined to small places. Do I really need this surgery? Early in 2019 I started feeling pain in the calf behind my I The Mystery of Kickbacks and Unnecessary Surgeries PUBLIC HEALTH By Krishan Kalra Column

21 | B W BUSINESSWORLD | 04 May 2024 By now, I was ready to write a thesis on the ‘finer nuances of pain in the calf’ but decided to first meet my neighbourhood physiotherapist. His prognosis was truly heartwarming. “Sir, you are not likely to need a TKR for at least ten years. Just have a couple of sessions with me and God willing you should be fine”. Sure enough eight sessions of thermal, ultrasound, vibration, manipulation etc. did give me a lot of relief. Five years have passed and – touch wood – I am doing my usual walks, haven’t had to visit the physio more than perhaps five or six times, do some daily exercises at home and life is pretty much back to normal. Of course, I have no clue what is in store tomorrow. I would like to believe that the advice for an orthoscopic procedure and later TKR way back in 2019, was a case of ‘human error of judgement’ and not an attempt to force me into an unnecessary surgery. Need for Mindset Change As this is my last column, for now, on the Public Health theme, I want to add a few words about the Indian Mindset that ignores the need for preventive care – be it for cancer or heart or other NCDs – that ultimately leads to bigger problems and the unbearable load on our very busy and very expensive tertiary care hospitals (as discussed in my last fortnight’s column in BW). This load can be considerably reduced if the Health and Wellness Centres (as the PHCs are now called) are tasked with prentice care through regular screenings. ‘No payment, no referrals’ was the accepted norm. So, his lab prospered while his dad kept a meticulous account, prepared small white envelopes every Sunday that his peon would go and deliver at the doctors’ homes. There were no secrets and no bashfulness in this straight forward business right knee. This was odd as I am used to walking seven to eight kilometres every day. I sought an appointment with a doctor friend at one of the big hospitals. I was asked to lie face down on the examination table and the doctor first flexed my left leg – which was okay – then the right, may be with a little jerk, that made me almost shriek. I was advised to get knee x-rays and an MRI of the right one. A week later I was back at the doctor’s office with all the reports. He walked in, trailed by half a dozen juniors, had a good look at the reports, pointed out a ‘meniscus tear’ in the right knee and advised ‘orthoscopic medial meniscus balancing procedure’ “which might give you relief for anywhere between a few months to a couple of years”. I was told that this minor intervention is being suggested “in view of our friendship” as, with the degenerative changes, I was likely to need TKR (total knee replacement) pretty soon. I was shaken and decided to seek a second opinion. My quest took me first to another doctor friend at another big hospital who didn’t think a surgery was needed and advised an ultrasound of the right calf and also some digital x-rays of the spine; also some tablets. Thoroughly confused, I met yet another doc in the same hospital, who noticed ‘degenerative changes grade III’ and prescribed B-12 injections, ‘no brisk walks’ and also suggested that I meet someone for herbal potli treatment. My next visit was to an old school orthopaedic surgeon who too ruled out surgery, felt that the ‘meniscus tear’ was not a problem if I wasn’t jogging/running and advised a knee support while walking, a spray, good old ‘seven seas fish oil’ capsules and some more tablets. Even more confused, I wasn’t ready to give up and met yet another specialist who felt that my case was “far from a surgery” and the problem could possibly be resolved with some injections – either synthetic or protein rich part from my own blood or stem cells. The author is member, Managing Committee of the Indian Cancer Society, Delhi and was member of the Governing Council of the Rajiv Gandhi Cancer Institute and Research Centre. He is past president of AIMA and former member, Board of Governors, IIMC Photograph by Indiapicturebudget

22 | B W BUSINESSWORLD | 04 May 2024 How is Teachmint revolutionising the education infrastructure landscape? At Teachmint, we are committed to advancing education with top-notch technology. With a rising demand for educational tech, schools seek an all-inone solution. Our Integrated School Platform offers a cutting-edge ERP, modern LMS, and digital content in a unified package. Through our SaaS offering, schools can streamline fee management, exams, admissions, classroom engagement, and more in over 20 languages. Serving over 15 million users across 25+ countries, Teachmint empowers institutions worldwide. “We Are Empowering Education Globally Through Innovative Tech Solutions” Insightful analytics empower data-driven decisions for seamless operations and transparent communication. What partnerships has Teachmint forged to broaden its reach and influence within the education industry? Our aim is to enhance education’s impact by leveraging technology for efficiency, effectiveness, and information equality. We collaborated with leading edtech providers to establish the Association of Edtech Providers, shaping the future of education. Introducing TeachPay, a specialised fintech solution, offering schools efficient fee regulation. TeachPay provides comprehensive cash flow visibility, simplifying fee management with features like TeachPay Credit and TeachPay Auto. Seamless integrations with popular software make it a highly customisable SaaS solution for schools. How does Teachmint guarantee data privacy and security? Teachmint is an ISO/IEC 27001:2013-certified company that recognises the importance of cybersecurity and the protection of customer data. Our security policy requires us to consistently monitor the risk of any threats to the administrative, technical, and physical safeguards we have put in place. These safeguards are reviewed and adjusted periodically based on ongoing risk assessments. We are committed to complying with applicable data protection regulations and industry-specific standards. What are the upcoming trends to monitor in the edtech sector for the year 2024? In 2024, classroom technology integration will revolutionise education with AI-driven personalised learning, VR/AR experiences, and gamification. How does Teachmint ISP operate? Teachmint ISP, a tailored SaaS solution for modern schools, streamlines admin tasks, enhances communication, and boosts student outcomes. With a unified dashboard, it facilitates real-time communication among leaders, staff, students, and parents. The ISP automates admission, centralises student data, and streamlines inventory management. Teachers benefit from advanced automation, while students enjoy engaging assignments. Parents can make online fee payments, and enhanced security features ensure a safe campus environment. I n an exclusive interaction, Rahul Singh, Associate Vice President - Product Management at Teachmint discusses the innovative tech solutions, strategic partnerships, data security measures, and upcoming trends in the edtech sector IN CONVERSATION

04 May 2024 | B W BUSINESSWORLD | 23 Racing Promotions (RPPL) is dedicated to fostering a comprehensive motorsport ecosystem in India. By hosting FIA-calibre events and nurturing talent from the grassroots level, RPPL is creating opportunities for aspiring race drivers, engineers, and mechanics to pursue careers in motorsport. The company’s mission extends beyond competition to encompass education and awareness initiatives aimed at galvanising the nation’s interest in motorsport. At the core of RPPL’s philosophy is a commitment to gender equality and equal opportunities for all participants. The Indian Racing Festival, anchored by RPPL, features the world’s first gender-neutral racing championship-based series, allowing women to compete on equal footing with men. This groundbreaking approach not only promotes inclusivity but also sets a global benchmark for gender equality in motorsport. Exclusive Partnerships & Championships RPPL’s strategic partnership with the Federation of Motor Sports Clubs of India (FMSCI) grants it exclusive rights to organise FIA-certified championships in India, establishing a monopoly in the market. Under the banner of the Indian Racing Festival, RPPL hosts three premier championships. The Indian Racing League stands as India’s leading 4-wheel racing league, spearheading gender-neutral competition, while the Formula 4 Indian Championship serves as an FIA-certified series offering a gateway for young drivers to step into the world of single-seater racing. Soon to join this lineup is the Formula Regional Indian Championship, slated for introduction in 2026, aimed at bridging the gap between Formula 4 and FIA Formula 3. These championships form crucial platforms for various stakeholders, where young Indian drivers gain invaluable exposure and experience at a professional level, aspiring talents receive mentorship and guidance to hone their skills, and women athletes shatter barriers by competing alongside men, fostering inclusivity in motorsport. Furthermore, cities utilise street circuits to not only promote tourism and showcase local culture but also elevate India’s status as a motorsport powerhouse on the global stage. RPPL’s journey commenced with the construction of India’s inaugural street circuit in Hyderabad, laying the foundation for the successful debut of the Indian Racing League. The subsequent introduction of the Formula 4 Indian Championship in 2023 further solidified RPPL’s role as a catalyst for motorsport development in India. Future Plans Looking ahead, RPPL plans to expand its reach with the addition of two new circuits and the introduction of India’s first street circuit night race in Chennai, mirroring the electrifying atmosphere of Formula 1’s Singapore Grand Prix. RPPL is not just organising races; it is shaping the future of motorsport in India. With its commitment to inclusivity, innovation, and excellence, RPPL is poised to leave an indelible mark on the global motorsport landscape, inspiring generations of enthusiasts and athletes alike. nemployment. One of the chief thrusts of MEs is to regulate and provide a platform to e vulnerable groups of the society as the main ivers and empower the women and the youth start their enterprises. mall enterprise promotion has continued to main an important and integral part of Indian evelopment strategy well before the First Fiveear Plan. However, the sec tors faces nforeseen challenges. Some of the most ersisting constraints facing the sector, ominated by smaller units in the informal ctor, include poor or non-availability of loan nance, low levels of technology, inadequate hysical and economic infrastructure and sources to invest in quality search and adopt ew technology, and a policy of product servation for small scale industries. Poor onitoring of implementation and e�ect of rious small �rm policies has been an issue of oncern. The larger enterprises o�er a sti� ompetition to the small scale units in the sale fo u t p u t. Ap a r t fr o m t h e s e m a j o r mpediments, the sector faces a number of her problems like ine�cient management, on-availability of cheap power, burden of local xes, shortage of working capital and lack of emand for the products. The list is endless. MEshaveemergedasavibranttieroftheeconomy as they have already taken over as key contributors to country's GDP. The new shout out is the Make in India Campaign. Owing to the launch of �agship Make In India Campaign, Prime Minister Narender Modi has given way to a new national program designed to facilitate investment, cultivate innovation , augment pro�ciency in skill development, protect intellectual property and build Best-in-Class manufacturing infrastructure, there has never been a better time to make in India. India's small and medium-sized industries can play a big role in making the country take the next big leap in manufacturing. India should be more focused towards novelty and innovation for these sectors. The government has to chart out plans to give special sops and privileges to these sectors. As clearly seen, the hindsight and the future vision of SME's cannot be simply considered a smaller version of their larger counterparts as they have di�erent managerial styles, scale of operations, levels of independence and decision making characteristics. However these di�erences do not eliminate the opportunities of SME's to internationalize and gain �ight in the global market. SME sector development will continue to spread its wings and be an integral part of the development thrust and promotetheentrepreneurialcultureREVOLUTIONISING MOTORSPORTS WITH RPPL Racing Promotions (RPPL) is driving the transformation of India’s motorsport landscape, aiming to elevate the sport from grassroots to global prominence. Through a multifaceted approach encompassing event organisation, talent development, and media engagement, RPPL is revolutionising motorsport in India and beyond.

24 | B W BUSINESSWORLD | 04 May 2024 EADERS of businesses, government, and institutions all have a stake and a crucial role to play in the new economics of competition. Clusterlevel analyses reveal the mutual dependence and collective responsibility of all these entities for creating the conditions for productivity. In the same way, universities also have a stake in the competitiveness of local businesses. By revealing the process by which wealth is actually created in an economy, clusters open new public-private avenues for constructive action. Singapore is one of the leading clusters of innovation in Asia. The city-state boasts of many world class universities that serve as incubators of talent, research, and innovation, such as the National University of Singapore (NUS), Nanyang Technological University (NTU), Singapore Management University (SMU), Singapore University of Technology and Design (SUTD), and the Singapore Institute of Technology (SIT). Though these universities are publicly-funded higher education institutions corporatised with a “Board of Trustees” that is appointed by the government, they have the autonomy to decide on their strategies and directions. They are also referred to as Autonomous Universities (AU). Besides providing them with financial support, the government has extensively worked with the AUs and local corporations to create a robust cluster of innovation. It is pertinent to, therefore, look at how the government facilitates this collaborative relationship between the AUs and industry, and how these collaborations play out with respect to research and entrepreneurship. The Singapore government pursues a multi-agency effort to create an environment that is conducive to fostering stronger university-industry ties. In addition to the Ministry of Education (MOE), the Ministry of Trade and Industry (MTI) works closely with industry to understand their needs and concerns; while the Ministry of Manpower (MOM) also plays a supporting role in striving to develop a productive workforce and progressive workplaces. These ministries work in close consultation with each other to develop schemes that will improve the From University to Industry – Notes from Singapore quality and quantity of collaborations. The Corp Lab@University scheme supports the establishment of key laboratories by industries in our universities. The scheme aims to attract foreign and Singapore companies to collaborate with the AUs on industry-relevant research. Corp Labs enable faculty, researchers, PhD and Master’s students to work alongside companies on research that has direct relevance for the industry. Students gain industry experience, preparing them for employment in high value-add sectors. The National Research Foundation (NRF) runs this scheme and provides funding to the Corp Labs (NRF Singapore). The Singapore-Industry Scholarship (SGIS), which is offered by MOE, and other government agencies, aims to develop a strong core of Singaporeans to anchor strategic sectors critical to Singapore’s economic and social development. This forms a special partnership between the Singapore Government and Singapore enterprises. Awarded scholars can pursue their undergraduate degrees at any local AU, and after their graduation, they must work for a stipulated number of years at their sponsoring company. The Industrial Postgraduate ARTHSASTRA by Devansh Sharma & Amit Kapoor Clockwise fom left: Amit Kapoor L & Devansh Sharma

25 | B W BUSINESSWORLD | 04 May 2024 Programme (IPP) is an initiative by the Economic Development Board (EDB) of Singapore to develop a pool of postgraduate manpower with the essential and critical R&D skill-sets for roles in the industry. Industrial Postgraduate Programme trainees undergo training in a corporate R&D environment through EDB’s partnership with companies and locally-based universities. The AUs play an important role in bridging the needs of industry with the outcome of research. The NUS and General Electric set up the Singapore Water Technology Centre back in 2009 with a $100 million investment (General Electric). The NUS has also set up joint labs with the leading tech companies Cisco (Cisco-NUS Accelerated Digital Economy Corporate Laboratory) and Applied Materials (Applied Materials-NUS Advanced Materials Corporate Lab), both of which are funded by the NRF. The NTU has partnered with BMW to run an electromobility research programme, which started out by using the all-electric BMW i3 and plug-in hybrid sports car BMW i8 as research platforms (BMW Group). Similar to NUS, they set up a corporate laboratory with Rolls Royce (NTU Singapore). Going beyond the automobile sector, the NTU has also partnered with Lockheed Martin to research nanotechnology. Another crucial pillar in the partnership between academia, industry and government is entrepreneurship. Specifically, a stellar example of this deep collaboration in the field of entrepreneurship is the Lean Launchpad Program (LLP). Piloted by NUS Enterprise as the first entrepreneurial education programme for researchers, the programme was launched in 2013 to help research scientists and engineers turn their inventive technologies into commercially viable products and feasible business ventures. Modeled on the US National Science Foundation I-Corps programme and taught at Stanford, Berkeley, Columbia, the programme is adapted for the local context, designed as an evidence-based innovation platform for the commercialisation of deep technologies. With new funding from 2017-2022 by the NRF, the AUs are working together to create a national LLP platform combining educational efforts, entrepreneurial talents and technology to facilitate the commercialisation of technologies out of academic research. New LLP satellite nodes have been established in NTU, SUTD, and SMU. To access an overseas market, LLP graduating teams are eligible for a grant of up to SGD$10,000 to support further market validation work overseas related to their project. The grant will be administered by NUS, co-funded by the respective institutions, and NRF. Singapore has developed a model in which the government facilitates a deeply collaborative relationship between academia and industry, with both powering the other. Right from the SGIS at the undergraduate level to Corp Labs at the institutional level, the Singaporean government has ensured that no aspect of higher education is left unexposed to the industry. It is this interplay between the government, industry, and university that has led to multiple benefits: improving graduate outcomes in employment, increasing productivity in the workforce, and supporting economic growth. India and other countries in the developing world should incorporate lessons from this model in their own national plans. Amit Kapoor is Chair, Institute for Competitiveness and lecturer, USATMC, Stanford. Devansh Sharma is doing his MS and is a student of Dr Kapoor in his course on Competitiveness and Innovation at Stanford Another crucial pillar in the partnership between academia, industry and government is entrepreneurship. Specifically, a stellar example of this deep collaboration in the field of entrepreneurship is the Lean Launchpad Program (LLP) of the National University of Singapore Photograph by Ake1150sb

26 | B W BUSINESSWORLD | 04 May 2024 culture. Conformity can influence decision-making, workplace behaviour, and organisational culture. Conformity involves adhering to the beliefs, attitudes, and behaviours considered typical or acceptable within a particular social context. It can occur consciously or unconsciously and plays a significant role in social interactions, group dynamics, and cultural norms. In a corporate setting, employees might conform to the company culture by adopting certain dress codes and working late hours, even if they are not explicitly stated in company policies. The Milgram and Zimbardo’s Stanford Prison Experiment provide profound insights into conformity despite their potential for psychological harm. Participants faced escalating pressure to conform to actions conflicting with basic moral principles in both cases. This underscores the vital necessity for robust checks and balances within governmental systems globally to prevent the consolidation of power that could lead to authoritarianism and atrocities. The culture of compliance should not overshadow the essence of ethical leadership and individual autonomy. Compliance frameworks such as the Securities OMPLIANCE AND CONFORMITY are related concepts but differ, especially in business. Compliance refers to adhering to laws, regulations, standards, or guidelines set forth by external authorities, such as government bodies, industry regulators, or professional organisations. It involves meeting specific requirements or standards to ensure legality, safety, or ethical practices within a business or industry. It fosters trust among customers, investors, and the public by demonstrating a commitment to following rules and regulations. For example, a pharmaceutical company must comply with FDA regulations when developing, testing, and marketing new drugs. This includes conducting clinical trials, obtaining regulatory approvals, and labelling products accurately to ensure consumer safety and regulatory compliance. Indian businesses must comply with the government’s tax laws, such as filing accurate tax returns, paying taxes on time, and maintaining proper financial records. Failure to comply with tax regulations can lead to penalties, fines, or legal action by the tax authorities. They must adhere to various labour laws concerning minimum wages, working hours, safety standards, and employee benefits. This includes provisions such as the Payment of Wages Act, Minimum Wages Act, and Employees’ Provident Funds and Miscellaneous Provisions Act. Non-compliance can result in fines, legal disputes, or damage to the company’s reputation. Other examples include the need to comply with environmental regulations regarding pollution control, waste management, and conservation of natural resources. Conversely, conformity involves aligning one’s behaviour, beliefs, or actions with the prevailing norms, expectations, or standards within a social group, organisation, or society. It may not necessarily be mandated by external regulations but rather driven by social pressure, group dynamics, or organisational Compliance and Conformity: The Crucial Difference PEOPLE TALK By Srinath Sridharan & Steve Correa C

27 | B W BUSINESSWORLD | 04 May 2024 leading individuals and organisations to prioritise outward compliance over introspective analysis and independent judgment. Moreover, corporate discourse can further blur the distinction between compliance and conformity. Terms such as “alignment,” “adherence,” or “conformance” are often used interchangeably, inadvertently reinforcing the perception that compliance and conformity are synonymous concepts. This linguistic ambiguity can obscure the nuances between adhering to regulatory mandates and blindly conforming to established norms without questioning their validity or ethical implications. Furthermore, cognitive biases such as groupthink and social proof can exacerbate the tendency to prioritise conformity over independent thought and ethical discernment. In group settings, individuals may succumb to peer pressure or hierarchical authority, opting to conform to the prevailing consensus rather than voice dissenting opinions or challenge entrenched practices. This herd mentality can perpetuate a culture of compliance at the expense of ethical autonomy and innovation, stifling organisational resilience and adaptability in the face of change. To mitigate the dissonance between compliance and conformity, individuals and organisations must cultivate a deeper understanding of each concept’s underlying principles and implications. This entails fostering a culture of ethical leadership, critical thinking, and innovation that encourages employees to question prevailing norms, challenge assumptions, and embrace diversity of thought. By fostering an environment that values integrity, transparency, and independent judgment, organisations can transcend the confines of conformity and compliance, driving meaningful change and sustainable growth. To foster a culture of innovation and sustainable growth, Indian businesses must transcend the confines of conformity and embrace a proactive approach to compliance. This entails cultivating a corporate ethos that values integrity, diversity of thought, and ethical decision-making. The nuanced distinction between compliance and conformity is not merely semantic but holds profound implications for the ethical fabric and long-term viability of Indian businesses. Organisations can navigate complexities, seize opportunities, and emerge as trailblazers in the global marketplace by prioritising compliance to uphold ethical standards while eschewing conformity in favour of innovation and critical thinking. and Exchange Board of India (SEBI) guidelines ensure transparency, accountability, and shareholder protection in corporate governance. However, mere adherence to regulatory mandates without a deeper commitment to ethical conduct can inadvertently foster a culture of conformity, wherein employees refrain from voicing concerns or challenging unethical practices, risking long-term reputational damage and legal repercussions. Firstly, compliance and conformity entail a degree of adherence to external standards or norms. In the corporate context, this adherence often manifests through observable behaviours, such as following rules, procedures, or social conventions. Consequently, individuals may inadvertently equate the two concepts, failing to discern the nuanced differences in their underlying motivations and outcomes. Secondly, societal pressures and organisational culture significantly perpetuate the confusion between compliance and conformity. In a competitive business environment, there is often a strong emphasis on conformity to industry benchmarks, best practices, or prevailing trends. This pressure to conform can overshadow the importance of critical thinking, ethical decision-making, and innovation, Srinath Sridharan is a policy researcher & corporate advisor Steve Correa is an executive coach, OD consultant & author To foster a culture of innovation and sustainable growth, Indian businesses must transcend the confines of conformity and embrace a proactive approach to compliance. This entails cultivating a corporate ethos that values integrity, diversity of thought, and ethical decisionmaking. The nuanced distinction between compliance and conformity is not merely semantic but holds profound implications for the ethical fabric Photograph by PeopleImages.com

28 | B W BUSINESSWORLD | 04 May 2024 IN DEPTH MARKETS T HE IDES OF MARCHtypically falls on the 15th. But for the stocks in the small and medium enterprises (SME) segment, all hell broke loose on March 11. There was a bloodbath on the bourses as 41 SME stocks were hammered mercilessly causing the Bombay Stock Exchange (BSE) SME IPO index to plummet a massive 20 per cent from its peak. The index lost around eight per cent in the subsequent sessions. Notably, since last year, the BSE SME initial public offering (IPO) index had until then more than doubled in value and outpaced Sensex by a significant margin. What derailed the gravy train was a warning from the market regulator about potential manipulation within the segment in the stock market. “We do see signs of manipulation SMALL IS RISKY? Sebi’s observation on the heightened susceptibility of small entities to price manipulation brings up the urgent need for greater vigilance and regulatory measures along with investor education By Abhishek Sharma Photograph by Movinglines.studio

04 May 2024 | B W BUSINESSWORLD | 29 much before the March 11 mayhem. Since February, more than 80 per cent of stocks in the BSE small-cap index have reported negative returns while in the same period, Nifty has gained nearly one per cent. The SME segment, while offering several opportunities for smaller companies to raise capital and for investors to diversify their portfolios, is facing challenges related to fraudulent activities. Experts attribute these troubles to factors like lower free float, smaller IPO size and low liquidity contribute to the potential for manipulation. “One of the red flags indicating possible manipulation is the absence of regular trading activity in a stock. This lack of volume suggests limited genuine investor interest and may indicate artificial price movements. A sudden and substantial increase in the price of a security over a short period, especially when not supported by fundamental factors,” says Kresha Gupta, Founder, Chanakya Opportunities Fund. Gupta explains in their stock prices. Atmastco, which launched its public issue on 23 February, saw significant investor interest, with its IPO getting oversubscribed by more than 15 times. The stock debuted at a premium of over 18 per cent above its issue price. The turmoil in the stock markets led some experts to come down heavily on the regulator. “It is better to be proactive than reactive when it comes to regulation. It is the foremost duty of the regulator to ensure the right market condition for all participants in terms of information exchange, market accessibility and price discovery. Any isolated instances of wrongdoings can be catastrophic for the regulator as it would raise serious questions on the overall ecosystem of the securities market,” said Manish Chowdhury, Head of Research, StoxBox while talking about Buch’s statement. Signs of Weakness The party in the small-cap segment, in fact, began to wind down in the small and medium enterprises (SME) segment,” said Madhabi Puri Buch, Chairperson, Securities and Exchange Board of India (Sebi) on March 11, suggesting that suggest certain players may be engaging in unethical practices to manipulate prices and that the market regulator will likely intensify its scrutiny of the SME segment by deploying enhanced surveillance tools and stepping up enforcement actions against perpetrators of market abuse. Atmastco, Inflame Appliances, Srivasavi Adhesive Tapes and Goyal Salt were among the major casualties that took a hit of 16 to 20 per cent MANISH CHOWDHURY, Head of Research, StoxBox "It is better to be proactive than reactive when it comes to regulation. It is the foremost duty of the regulator to ensure the right market condition for all participants in terms of information exchange, market accessibility and price discovery” Madhabi Puri Buch, Chairperson, Sebi Photograph courtesy: SEBI

30 | B W BUSINESSWORLD | 04 May 2024 that an unusually high price-to-earnings (P/E) ratio, disproportionate to the company’s earnings growth and financial performance, dilution of the promoter or insider holdings, particularly through unexplained or irregular transactions, can raise suspicion of manipulation. Over the past year, SMEs have experienced significant interest from various investor groups, leading to a surge in demand and substantial listing gains. Some listings have seen gains far exceeding their fair valuations, raising concerns about long-term viability. Notably, some IPOs were oversubscribed by about 500 to 1,000 times and subsequently listed at 100 to 300 per cent premium suggesting irrational valuation. However, experts caution that this does not indicate that the market is booming only because of manipulation. “The primary victims of stock market manipulation are often individual investors, especially those who are less experienced and may not have the resources to thoroughly research their investments. They can suffer significant financial losses as a result of these manipulative schemes, which can deter them from future participation in the stock market,” says Vipin Maheshwari, Chief Financial Officer, Olyv. Sebi’s Challenges The simpler organisational structures and weaker internal controls within SMEs, while advantageous in some respects, can make it more challenging to detect malpractices within the companies themselves. The increasing number of SME listings poses a significant surveillance challenge, spreading SEBI’s resources thin and potentially allowing manipulative practices to slip through the cracks. “While smaller market cap and liquidity in SMEs may heighten manipulation risks, it’s a broader market issue, not exclusive to SMEs. Vigilance is crucial in both IPO and secondary markets to safeguard market integrity. Sebi’s efforts to monitor the SME segment are commendable, with its regulatory framework and vigilance matching, if not exceeding, global standards. However, the unique challenges of smaller markets demand continuous adaptation and innovation in regulatory practices,” says Manick Wadhwa, Director, SKI Capital. Despite advancements in technology and analytics, the allocation of sufficient resources for in-depth, company-specific investigations remains a challenge, particularly given the large and growing number of SMEs. “Sebi can enhance SME market oversight by collaborating with entities like the GSTN and ROC, leveraging their insights for more coherent and transparent market monitoring, thereby strengthening investor confidence,” adds Wadhwa. Experts note that Sebi’s observation regarding the heightened susceptibility of small entities to price manipulation holds merit. During IPOs, when companies first sell their shares to the public, because the offerings are small and 30||KRESHA GUPTA, Founder, Chanakya Opportunities Fund “One of the red flags indicating possible manipulation is the absence of regular trading activity in a stock. This lack of volume suggests limited genuine investor interest and may indicate artificial price movements” VIPIN MAHESHWARI, Chief Financial Officer (CFO), Olyv “The primary victims of stock market manipulation are often individual investors, especially those who are less experienced and may not have the resources to thoroughly research their investments” IN DEPTH MARKETS

04 May 2024 | B W BUSINESSWORLD | 31 ance in these companies,” cautions StoxBox’s Chowdhury. In India, SME IPOs represent a significant opportunity for smaller companies to access equity capital, a critical resource that was previously challenging to secure. These enterprises, despite their smaller IPO sizes, have shown resilience and potential, with several noteworthy companies making successful debuts on SME exchanges. “Recognising the importance of there aren’t many investors involved, it’s easier for a small group of people to work together to buy up a lot of shares and drive the prices up artificially. After the shares start trading on the market, if there aren’t many buyers and sellers and the trading happens less frequently, it becomes easier for people to manipulate the prices by trading amongst themselves. “However, it’s important to note that not all small entities are vulnerable to manipulation. Factors such as the quality of corporate governance, transparency in financial reporting, and regulatory oversight can significantly influence the risk profile of these entities,” says Gupta. SME IPOs While speaking at an industry event in Mumbai, Buch stated that apart from having the technology to detect patterns that suggest manipulation, the regulator has received feedback from stakeholders on how such fraudulent activity can be identified and how to deal with them. However, action is still pending because Sebi is trying to construct a case in a “robust manner”, she added. The Sebi’s observation of manipulation highlights the need for vigilance. While the size of SME IPOs may increase susceptibility to manipulation, it’s essential to focus on the opportunities and growth they offer. Enhanced disclosure norms are steps towards a transparent, secure market, encouraging investor confidence in quality SMEs. “It is important to evaluate the underlying potential of the SME company before considering it as a long-term bet. The oversubscription figures and listing gains are not the right parameters to decide the fate of the company in the long run as these factors may lead to irrational exubercating investors about the risks associated with investing in the SME segment and the signs of market manipulation can empower them to make more informed decisions and potentially avoid falling victim to manipulative schemes. “Strengthening the regulatory framework specifically for the SME segment, including stricter listing requirements, enhanced disclosure norms, and more severe penalties for manipulative practices, can help deter manipulation and promote a healthier market environment,” he says. According to experts, Sebi should collaborate with market participants, regulatory bodies, and other stakeholders to enhance surveillance and enforcement efforts in the SME segment by setting trading limits with market participants, implementing maximum bidding limits, introducing share lock a mechanism for significant shareholders and implementing circuit limit. “By addressing issues of manipulation and excessive valuation, Sebi’s interventions will ultimately create a more stable environment for all investors, particularly long-term investors. Investing with a long-term perspective and staying patient in the current market with resilience will ultimately lead to greater stability and growth in the market,” states Chanakya Opportunities Fund’s Gupta. Buch’s warning sheds light on the urgent need for heightened vigilance and regulatory measures within the SME segment, however, there is a need to include market participants in the scrutiny process to avoid any further jolts in the market and maintain the stability of the stock market ecosystem amid ongoing turbulence. [email protected] MANICK WADHWA,Director, SKI Capital “Sebi can enhance SME market oversight by collaborating with entities like the GSTN and ROC, leveraging their insights for more coherent and transparent market monitoring, thereby strengthening investor confidence” transparency and investor protection, the SME exchanges have proactively enhanced disclosure norms in their offer documents, which should reassure investors about the commitment to maintaining market integrity. Ultimately, the SME sector remains an attractive avenue for investors seeking to diversify their portfolios with good quality SMEs, offering a unique blend of growth potential and innovation,” states SKI Capital’s Wadhwa. Olyv’s Maheshwari believes that edu-

32 | B W BUSINESSWORLD | 04 May 2024 The rate of growth of India’s gross domestic product varies across different agencies. How can the average taxpayer decode the implications of varying data points? By Ashish Sinha IN DEPTH ECONOMY MAKING SENSE OF DATA Photograph by Tribhuwan Sharma

04 May 2024 | B W BUSINESSWORLD | 33 A MIDST THE PREVAILING narrative of India’s economic ascent, a contentious debate brews over its gross domestic product (GDP) figures, questioning the veracity of its growth trajectory. The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), paints a rosy picture, estimating India’s real GDP for 2023-24 to reach Rs 172.90 lakh crore, signalling a cause for jubilation with a 7.6 per cent growth rate. However, this optimism is swiftly rebutted by the International Monetary Fund (IMF), which foresees a more conservative 6.7 per cent growth for FY24 and a further dip to 6.5 per cent in FY25. Such projections, contrary to domestic expectations, find resonance with venerated institutions like CRISIL Ratings, whose forecast of 6.8 per cent GDP growth for FY25 echoes the IMF’s cautionary stance. The Reserve Bank of India (RBI), in its first monetary policy review for FY25, has projected the GDP to grow 7 per cent. So, the IMF projects India’s GDP to grow at 90 basis points (bps) lower than GOI’s estimates for FY24 and 50 bps lower than what RBI estimates for FY25. “With rural demand catching up, consumption is expected to support economic growth in 2024-25. Urban consumption stayed buoyant as evident from various indicators. The resilience in cement production, together with strong growth in steel consumption and production and import of capital goods augur well for the investment cycle to gain further traction,” RBI Governor Shaktikanta Das said. For the first quarter of 2024-25, the RBI expects a growth rate of 7.1 per cent, against the previous estimate of 7.2 per cent made in February. Earlier, the RBI had estimated a growth rate of 6.7 per cent for Q1 FY25. The divergence in growth projections underscores the significance of global economic indicators in shaping India’s economic narrative. The IMF’s pivotal role is accentuated, not merely as a prognosticator of economic trends but as a bastion of financial stability and policy guidance during tumultuous times. The IMF projects India’s GDP to grow at 90 bps lower than the GOI’s estimates for FY24 and 50 bps lower than what RBI estimates for FY25. But IMF projections are also supported by other reputed ratings agencies. Take, for example, CRISIL Ratings. It also projects India’s GDP growth for FY25 at 6.8 per cent, 20 bps lower than RBI’s projections. But the Asian Development Bank (ADB) just upgraded India’s GDP growth forecast for FY25 to 7 per cent from 6.7 per cent made earlier, citing robust public and private investments and strong services sector. But from within IMF different growth projections came to the fore recently. On March 28. Krishnamurthy Subramanian, Executive Director at IMF said that the Indian economy could grow at 8 per cent till 2047, if the country redoubles the good policies that it has implemented over the last 10 years and accelerate reforms. Taking a different stand, Julie Kozack, IMF spokesperson, clarified thereafter: “The views conveyed by Subramanian were 04 May 2024 | B W BUSINESSWORLD | 33

in his role as India’s representative at the IMF.” Kozack was asked about IMF’s stand on India’s growth projection and why was it different from Subramanian’s numbers. The IMF spokesperson said, “We do have an Executive Board. That Executive Board is made up of executive directors who are representatives of countries or groups of countries, and they make up the Executive Board of the IMF. And that’s distinct, of course, from the work of the IMF staff.” Be that as it may, to put the India growth numbers in perspective, it is very clear that the Indian economy has grown at a healthier pace in the past decade. For example, as per the data from NSO and MoSPI, India’s real GDP or GDP at constant (2011-12) prices in the year 2013-14 stood at Rs 99.21 lakh crore. In FY24, it is estimated at Rs 172.90 lakh crore. Which means in value terms the Indian economy added Rs 73.69 lakh crore in the last 10 years. Is that a good data point reflecting all-round growth of the economy? Perhaps not. But it does reflect growth amidst global challenges including the slowdown SHAKTIKANTA DAS, Governor, RBI “With rural demand catching up, consumption is expected to support economic growth in 2024-25. Urban consumption stayed buoyant as evident from various indicators” after the global pandemic. Pressing Concerns Rajani Sinha, Chief Economist, CARE Ratings, directs the attention to more immediate concerns, particularly for the RBI. “The main concern of the central bank is the persistent high food inflation and the adverse impact of that on household inflationary expectations,” says Sinha. For FY25 outlook, Sinha says the expectations of normal monsoon bodes well for food inflation. But she warns that the continuation of geopolitical rifts and supply-side risks of the same on commodity prices requires monitoring. “Increased climate risks in the domestic and global economy have emerged as another big risks for food inflation in the last few years,” says Sinha. GURPREET CHHATWAL, MD, CRISIL Ratings “The three key pillars of India Inc.’s credit quality — deleveraged balance sheets, sustained domestic demand and government-led capex — kept the upgrade rate elevated in the second half of fiscal 2024 ” Photograph courtesy: PIB 34 | B W BUSINESSWORLD | 04 May 2024 IN DEPTH ECONOMY

sector at 8.2 per cent. This growth has been achieved despite a negative contribution by net exports to real GDP growth at (-)2.3 percentage points. The main driver for this growth, therefore, has been investment demand (gross fixed capital formation) which has shown a growth of 10.2 per cent in FY24, economists say. This has particularly been driven by government capex growth towards building infrastructure, as per Srivastava. “An unanticipated feature of the FY24 annual growth relates to the difference between the GDP growth of 7.6 per cent vis-à-vis GVA growth of only 6.9 per cent which is accounted for by growth in net indirect taxes (indirect taxes net of subsidies). GoI’s indirect tax growth remained low at 4.5 per cent during April-January FY24. It implies, therefore, that subsiBut circling back to the GDP growth data, how do economists explain the NSO data estimating India’s GDP growth for FY24 at 7.6 per cent beating the estimates of the World Bank and IMF projections? According to D.K. Srivastava, Chief Policy Advisor, EY India, most of the GDP growth has come about through robust non-agricultural growth on the supply side and substantial investment growth on the demand side. In terms of quarterly growth rates, the average GDP growth for the first three quarters of FY24 was 8.2 per cent implying the fourth quarter growth estimate at only 5.9 per cent. But economists are concerned on the demand side slowdown in consumption expenditure which shows a growth rate of only 3 per cent for both private and government final consumption expenditure. On the output side, agricultural growth is also limited only to 0.7 per cent in FY24. But the non-agricultural sectors show robust growth. In particular, construction has grown 10.7 per cent followed by manufacturing at 8.5 per cent and financial, real estate and professional services RAJANI SINHA, Chief Economist, CARE Ratings “The main concern of the central bank is the persistent high food inflation and the adverse impact of that on household inflationary expectations” DK SRIVASTAVA, Chief Policy Advisor, EY India “An unanticipated feature of the FY24 annual growth relates to the difference between the GDP growth of 7.6 per cent vis-à-vis GVA growth of only 6.9 per cent” dies were reduced substantially leading to a significant excess of GDP growth over GVA growth of 0.7 percentage points,” Srivastava points out. Credit Outlook for India Inc. According to the latest assessment by CRISIL Ratings for fiscal 2025, the credit quality outlook will remain positive. Upgrades will continue to outpace downgrades, driven by domestic demand, low corporate debt levels and tailwinds from the ongoing infrastructure buildout, says Gurpreet Chhatwal, Managing Director, CRISIL Ratings. For the fiscal year gone by (FY24), the CRISIL Ratings credit ratio (rating upgrades to downgrades) moderated in the second half of fiscal 2024 but remained elevated. In all, there were 409 upgrades and 228 downgrades in FY24. “The three key pillars of India Inc.’s credit quality — deleveraged balance sheets, sustained domestic demand and government-led capex — kept the upgrade rate elevated in the second half of fiscal 2024. That’s above the 10- year average for the sixth consecutive half year,” explains Chhatwal. So what is in store for India Inc. in FY25? As per Chhatwal, for fiscal 2025, as many as 21 of 26 corporate sectors have strong-to-favourable credit quality outlook, marked by robust balance sheets and healthy operating cash flows — expected to be as much, or higher, than in fiscal 2024. These include auto component manufacturers, hospitality and education sector companies where the credit quality is supported by healthy domestic demand. It also includes sectors benefiting from the government’s infrastructure spending, such as construction companies, steel, cement and capital goods manufacturers, Chhatwal adds. For banks, credit growth is expected to remain healthy in fiscal 2025, but grow a tad slower at ~14 per cent, compared with ~16 per cent estimated for fiscal 2024, given the likely moderation in economic growth. [email protected]

36 | B W BUSINESSWORLD | 04 May 2024 OOK-WRITING IN INDIA was once the preserve of academics and journalists, with an occasional interloper from elsewhere. New titles were few and authors even fewer. Recent years, though, have witnessed a virtual explosion in the number of books published and likewise in authors. Writers are now coming out of the woodwork and from all professions. Retired bureaucrats were once reticent, reluctant to reveal confidences, content to stroll into the sunset. A few, therefore, favoured fiction: an early best seller – later converted to a popular movie – flowed from the pen of a serving official. One then wondered whether IFS stood for Indian Fictionwriting Service! Of late, not only have retired bureaucrats (both, IFS and IAS – Indian Authors Service?) become prolific writers – many churning out multiple books – but the book-bug has spread to industry captains too. Chief Executive Officers (CEOs), especially retired ones, have taken to the pen as much as to upmarket cars. Autobiographies and reminiscences are flooding the market. B The “tell all” and gossip-sharing books – by both, bureaucrats and CEOs – are in demand. Curiosity ensures that tales of celebrities rarely fail to sell! Far lower is the demand for books that narrate work experiences distilled into knowledge, though these could be of value to younger professionals and students. Some use their long personal experience to write analytical tomes; a few use it as a base for historical fiction. The variety of subjects, themes, and work backgrounds of the new authors adds greatly to the richness of available material. What drives this urge to write? Making a living as an author is yet hardly possible in India, unless one is a Chetan Bhagat or writes mythological tales. In any case, neither retired bureaucrats nor industry CEOs look at writing as a means of livelihood. Does authoring a book cater to the ego, or satisfy some inner urge? Could it be peer emulation or FOMO: when everyone else is writing a book, you don’t want to be the one left out. Has it something to do with the rash of Book Festivals that has broken out in the last decade or so? After all, these have become like the Metro: every city worth its salt must now have its own. The Jaipur Lit Fest (JLF) is the unquestioned champion: its ability to attract famous authors approximates Jamnagar’s recent magnetism for business and show-business celebrities. Possibly, JLF has provided the glamour quotient to Indian authors: most – barring a rare Rushdie – long imagined as struggling, intellectual jholawallas. Or do CEOs – celebrities in the business world – now want recognition in a different arena? Yet, unlike JLF, other book fests don’t draw crowds, nor are they televised like the IPL. Another recent development is the proliferation of book clubs. Like security guards and Residents Welfare Associations, every Housing Society and every condominium must have one. Similarly, every club must have its annual book fest. Obviously, there seems to be a certain prestige associated with such activities centred around books. This, and the recognition accorded to authors in such fests, may well be contributing to the desire to be one. Here, then, is something for non-celebrity authors to note: for many, including top honchos and bureaucrats, being perceived as an “author” and, therefore, an “intellectual” has suddenly gained great value. Celebrity CEOs as Aspiring Authors The author loves to think in tongue-in-cheek ways, with no maliciousness or offence intended. At other times, he is a public policy analyst and author. His latest book is Decisive Decade: India 2030 Gazelle or Hippo (Rupa, 2021) COLUMN n KIRAN’S KONTRARIAN KORNER n By Kiran Karnik Photograph by Visual Generation

38 | B W BUSINESSWORLD | 04 May 2024 T WAS OUR FIRST MEETING, but we became friends right away. He was a successful CEO – and came across as one of those nice guys you want to get to know better. We got talking about our career journeys. The highs and the lows and all the memories in between. He then told me about a job interview that well, changed his thinking. And his life. Some years ago, he was interviewing for a senior position in finance. The interview with the CFO was going well. My friend was quite warming up to his likely future boss – who also made no secret of his liking for his future colleague. And then the CFO popped that rather predictable question. “Where do you see yourself in five years?” That’s a popular interview question, one I am guessing you too have had to answer in some interview, somewhere. It’s a question he was prepared for, but as would befit a senior finance professional, he thought for a moment before replying “Well, I’d like to be the CFO in five years.” “And where do you see yourself in ten years?” asked the CFO. My friend began to think about what successful CFOs hope to be after five years, and the answer presented itself. “I’d like to be the CEO!” he said. The CFO was back with his next question. Where do you see yourself in 30 years? “I am hoping I will still be alive”, he replied with a laugh. And the CFO nodded in agreement and then asked: “Where do you see yourself 200 years from now?” “I won’t be alive,” said my friend. And the CFO said, so what. There are people who are 2000 years old – they may not be alive, but they are 2000 years old. Like Ashoka and Alexander. And Buddha and Socrates. They are all more than 2000 years old. They are not alive. But we still remember them, don’t we? What a thought. You may not be alive when you are 200, but you will be 200 years old. The message from the CFO was clear, even if he didn’t spell it out. It got my friend thinking. And as he told me about that interview question from all those years ago, it got me thinking too. How will we be remembered when we are dead and gone? What are we doing today that will outlive us? What would our legacies be? Most of us have an answer to the question about where we would like to be in five years or ten years. But 200 years? I don’t think any of us thinks about that. Maybe we should. In our own small ways, each of us has an opportunity to make a difference. To the people we spend time with. And to the world we live in. Do something that people will remember. Leave an imprint that will outlive you. Thinking in a five or ten-year time frame makes us think incrementally. A promotion. A bigger title, maybe a bigger car too. But when you ask yourself the 200 -year question, it changes your perspective. Jobs and bank balances seem to fade into irrelevance. The 200-year question makes you strive for significance. Not success. So where do you see yourself 200 years from now? No matter what your answer is, remember this. Your time starts now. The 200 Year Question I COLUMN Prakash Iyer : The author is a speaker and leadership coach and former MD of Kimberly Clark Lever PI TALKIES By PRAKASH IYER How will we be remembered when we are dead and gone? What are we doing today that will outlive us? What would our legacies be? Most of us have an answer to the question about where we would like to be in five years or ten years. But 200 years? I don’t think any of us thinks about that. Maybe we should

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40 | B W BUSINESSWORLD | 04 May 2024 COVER STORY As the Indian ad and marketing sector continues to expand, driven by technology, enhanced digital infra and strategic collaborations, it remains a vibrant field ripe with opportunities By Noor Fathima Warsia CREATIVITY + TECH + INNOVATION Becoming A Global Ad, Marketing & Innovation Hub THE Indian advertising and marketing industry is on a significant growth trajectory, poised to capitalise on numerous emerging opportunities. Market analyses predict expansion across segments, reflecting a landscape that attracts both domestic and global attention. Depending on the study, the market size is pegged anywhere between Rs 1.11 lakh crore to Rs 1.55 lakh crore, growing at 10-12 per cent. Global industry leaders already look at India as the fastest-growing large advertising market that is taking the lead in contributing to global growth and innovation. The Growth Drivers A key trigger behind India’s marketing sector’s growth is the substantial improvement in digital infrastructure and a focused approach towards adopting advanced technologies. The ubiquity of digital access, bolstered by initiatives such as the Unified Payments Interface (UPI) and the Open Network for Digital Commerce (ONDC) has dramatically transformed the landscape, laying the perfect foundation for advertisers and marketers to build on. These platforms facilitate seamless digital transactions and interactions, allowing brands to craft more efficient marketing strategies for a new generation of consumers. The exponential growth in data availability and the integration of advanced technologies such as artificial intelligence (AI) and machine learning in marketing processes enable deeper insights into consumer behaviour and preferences. Brands and their agency partners are increasingly capable of delivering not just targeted advertisements but also creating personalised consumer experiences at scale. This tech-centric approach is critical in a market like India, where consumer dynamics can change dramatically across regions. Expansion To New Markets The ongoing expansion of businesses into new markets and the creation of new consumer cohorts are also among the growth engines. The opportunity multiplies further with India-born brands eyeing international markets. As companies venture into untapped or underserved regions, both domestically and globally, they encounter diverse consumer bases whose unique needs and preferences spur innovative marketing tactics. This expansion is not just geographical but also concepin association with

04 May 2024 | B W BUSINESSWORLD | 41 ability to innovate and adapt marketing strategies is enhanced by the diverse capabilities of this talent, which is becoming increasingly skilled in leveraging digital tools and data analytics to drive marketing success. The Multilayered Growth One of the biggest advantages for India is the growth of legacy sectors apart from digital. This highlights the diversification of marketing strategies and the evolution of consumer engagement platforms. Digital advertising continues to lead the growth in the sector, with projections from Pitch Madison Ad Report (PMAR) and Magna suggesting increases of 17 per cent and 14.2 per cent, respectively, in 2024. This surge is predominantly fuelled by the increasing penetration of internet services and mobile usage, coupled with innovative advertising technologies that allow for more precise targeting and measurement of campaign effectiveness. Legacy Sectors On The Rise Despite the digital surge, print advertising maintains a steady growth trajectory, with expected increases of 7 per cent (PMAR) and 6.7 per cent (Magna) in 2024. Television also shows healthy growth, with an expected increase of 8 per cent (PMAR) and 8.9 per cent (Magna) in 2024. Cinema advertising too is projected to experience the most significant growth, with PMAR forecasting a 35 per cent increase in 2024. Bright Road Ahead The Indian advertising and marketing sector is set to continue its rapid growth, driven by technological advancements, a culture of collaboration, a rich talent pool, a focus on sustainability and strategic expansion into new consumer markets. These factors combine to create a fertile ground for innovative and effective marketing strategies that resonate deeply with a diverse audience base. tual, with brands exploring personalised consumer engagement strategies. Focus On Sustainability Sustainability has become a crucial consideration in today’s global market and India is no exception. More consumers are drawn to brands that demonstrate a commitment to sustainable practices. This shift in consumer preferences is pushing companies to adopt greener and more sustainable advertising strategies, influencing everything from content creation to media placement, thereby opening new avenues for growth. A Culture Of Collaboration Another significant source of progress is the collaborative culture prevalent across Indian companies and industries. This collaborative environment fosters innovation and enables synergistic partnerships that combine diverse skills and resources to create more impactful solutions for consumers. Rich Talent Pool India’s vast pool of talented professionals in creative, technical and strategic domains continues to be a cornerstone for the advertising sector’s expansion. The India’s vast pool of talented professionals in creative, technical and strategic domains continues to be a cornerstone for the advertising sector’s expansion OPENING ESSAY Photographby Quarta

ON THE GROWTH TRAJECTORY The Indian advertising & marketing sector is poised to see growth despite some sectors experiencing a crunch and some seeing stability after the post-pandemic high. If market indicators are anything to go by, India will continue to be a global growth market and home to several innovations and clutter-breaking solutions. ESTIMATED MARKET SIZE & PROJECTED GROWTH SNAPSHOT 12% 10.23% 11.4% 9.86% Rs 99,038 crore Rs 1.11 lakh crore Rs 1.41 lakh crore Rs 1.55 lakh crore Rs 1.09 lakh crore Rs 1.22 lakh crore Rs 93,166 crore Rs 1.02 lakh crore Market Size 2023 Estimated Market Size 2024 Pitch Madison Ad Report GroupM TYNY Magna Ad Forecast Dentsu • Increasing infiuence of gen-alpha will drive distinctive marketing strategies • Sports to focus on immersive experience journeys • Brand marketing will become more accountable on performance, breaking silos • India’s general and modern trade getting digitised leading to rise of omnichannel commerce • AI and technology dominate the content landscape & creator economy • Importance of niche consumer segments will power the growth of micromarketing • With consent becoming critical, zero party data will empower various areas of marketing EVOLVING TRENDS IN 2024 42 | B W BUSINESSWORLD | 04 May 2024

SECTOR WISE TRENDS – GROWTH FOR ALL (percentage growth in 2024) Digital 17% 14.2% 7% 6.7% 8% Print TV Cinema AdEx PMAR Magna 9.9% 35% 19% Curated by Pratyaksh Dutta (Source: GroupM TYNY); Graphics by Rahul Roy 04 May 2024 | B W BUSINESSWORLD | 43

44 | B W BUSINESSWORLD | 04 May 2024 COVER STORY With creativity at its renewed core and technology as the engine, WPP has morphed into a simpler form that it believes positions its offer well for a new world order. India has taken a lead role in developing this growth narrative, contributing to the company’s overall transformation and creating solutions for global businesses & brands By Noor Fathima Warsia WPP REWIRING A CREATIVE POWERHOUSE CREATIVITY + TECH + INNOVATION I N THE bustling western suburbs of Mumbai, nestled within The Orb complex, lies Bay99—a WPP Campus. This locale, established over five years ago, has become more than just a workplace. It is home to some of the most advanced work that India is doing in the realm of creativity and innovation. For any marketing leader who works with WPP or its agencies, one must-visit spot in the Campus is the Technology Experience Centre, an outcome and indicator of the creative and tech transformation that WPP has focused on in the last five years. The WPP of 2024 is a very different marketing and communication company than what it was five years ago. Back in 2019, when WPP was battling challenges around sustaining its high growth pace and remaining relevant, BW Businessworld caught up with the company’s global CEO Mark Read and Country Manager for India CVL Srinivas. The company had just about begun the path of shedding its traditional form, responding to the fast-evolving marketing sector. Five years hence, WPP’s creative transformation is evident. A noteworthy aspect here is India’s role in not just growing the company globally but also taking the lead from a technological standpoint. Following the post-pandemic high of 2021, the late 2022 and 2023 were slower years for WPP. Muted growth in the tech sector has imposed restraints on the global numbers but India defied some of these trends. WPP reported its revenue in FY23 was £14.8 billion ($18.31 billion), a 2.9 per cent increase from the previous year. India grew by 7.7 per cent in 2023 and it helped WPP in reflecting a “strong double-digit growth in the second half”. Creative & Tech Transformation In its transformation journey, WPP has embraced and pioneered advancements in digital technologies. The establishment of the Tech Experience Centre at the WPP Campuses marks a significant milestone. 44 | B W BUSINESSWORLD | 04 May 2024 in association with

04 May 2024 | B W BUSINESSWORLD | 45 Collage by Dinesh Banduni WPP and its agencies are blending creativity, technology and purpose in the work being done for brands and businesses 04 May 2024 | B W BUSINESSWORLD | 45

46 | B W BUSINESSWORLD | 04 May 2024 COVER STORY WPP CREATIVITY + TECH + INNOVATION proprietary tools, technologies, data and services into one operating system, and is already being deployed across some of its largest global clients, with broad adoption by over 30,000 of WPP’s people. The India-first Strategy Underpinning WPP’s transformation is the strategic consolidation of its operations in India, making it a nexus for global service delivery. “India can play a very important role in WPP in several aspects. First, growing and solving for our clients in India and then growing and helping Indian companies as they increasingly globalise,” remarks Mark Read, CEO of WPP. WPP’s Global Delivery Centre (GDC), another marker of change driven from India, is evolving into a hub of technological innovation, leveraging artificial intelligence (AI) and machine learning to This initiative is dedicated to exploring uncharted territories of technology and addressing needs where solutions are scarce. It symbolises WPP’s commitment to staying at the forefront of innovation—serving both the under-connected markets in India and the global corporate giants with equal prowess. Some evidence that the strategy is working can be seen in the new business wins for the company. Globally, WPP added a net new business of $4.5 billion in 2023. Key wins included Adobe, Allianz, Estée Lauder, Ford, Hyatt, Krispy Kreme, Lenovo, Maruti Suzuki, Mondeléz, Nestlé, Pernod Ricard and SC Johnson among others. In India, WPP’s agencies remain in the top order. In the media investment space alone, for example, GroupM continued its dominance. The media holding company that is home to brands such as Mindshare, Wavemaker and EssenceMediacom surged ahead with new media business wins exceeding $654 million in 2023. This was followed by IPG Mediabrands with a new business value of over $200 million and Omnicom Media Group ($128 million). In line with its tech-focussed approach, WPP has also invested significantly in its client-facing technology including its AIdriven platform WPP Open, data products and technology unit Choreograph and other AI tools and services delivered through WPP Open. “WPP Open is powered by our own proprietary Al products, WPP Brains - each is trained on a variety of data sources and large language models to optimise the entire marketing process, and our first Brand Brain™ was built on Amazon Web Services in fact,” Read informs. WPP Open brings together all of WPP’s WPP’s Top Five Markets 1. Share of WPP revenue less pass-through costs 2. Like-for-like constant and growth at given constant currency rates for each year 3. GroupM TYNY 2023 Forecasts 4. Average of the five markets, global total CAGR 5.6% Global footprint across key markets WPP%1 WPP 2019-2023 4Y LFL CAGR2 Global Media Spend %3 USA UK Germany China India Subtotal 36% 14% 7% 4% 3% 64% Source: WPP 1.6% 4.1% 3.5% 7.9% 39% 6% 4% 16% 2% 67% Global Media Spend 2023-2028 5Y LFL CAGR 4.1% 4.3% 3.6% 4.7% 11.1% 4.4%4 Like for like Revenue Less INDIAPass-through Costs Growth 30% 20% 10% 0% -10% 8.5% Q4 2022 Q1 2023 -1.4% Q2 2023 2.5% Q3 2023 7.3% Q4 2023 22% in association with

04 May 2024 | B W BUSINESSWORLD | 47 terrific industry leader. He built a strong culture and leadership team, and with Hephzibah and VR Rajesh, Ogilvy will only go from strength to strength,” Srinivas says. The J. Walter Thompson brand was also completely phased out this year to strengthen VML with Babita Baruah at the helm. Saying that this was seen as a positive change, Srinivas adds, “India is playing an important role in WPP’s simplification and transformation.” The Road Ahead: India’s Growing Influence The outlook for 2024 is optimistic. The Indian economy is displaying robust growth post-Covid despite global headwinds. India’s economy will attain the size of $34.7 trillion by 2047 with a per capita income of $21,000, says industry body PHDCCI. “At a disaggregated level, each sector will bolster the economy on the path to Viksit Bharat by 2047. The sectoral value added will be 34 per cent of industry and 54 per cent of services, with a share of manufacturing in GDP at 25 per cent by 2047,” remarks Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry. India’s advertising market is expected to continue its double-digit growth trajectory, fueled by robust private sector and government initiatives and an array of large-scale events. “This year is looking better than last,” Srinivas comments, projecting a sustained pattern of growth that positions India as a leader among global markets. WPP’s transformation, led significantly by its strategic focus on India, exemplifies how localised strength can catalyse global success. As WPP continues to navigate the complexities of global ad and marketing, its India-centric approach remains a cornerstone of its growth strategy, ensuring that the company not only adapts to the changing dynamics of the global market but also sets the pace for the industry’s future. revolutionise marketing strategies globally. “Through our GDC strategy, India can be a technical capability for the rest of WPP, helping us innovate and deliver services more efficiently and effectively,” says Read. He highlights the extent of this transformation, noting, “In the last five years, we have significantly grown the number of people working in India for the rest of the world from 1000 to 5000, which is 50 per cent of our total employee base in the market.” This exponential growth is not just in numbers but also in capabilities. CVL Srinivas, credited with setting up and growing this mandate, emphasises, “We are looking to scale GDCs up and add a lot more value there.” If the GDC benchmarks India’s role in taking a lead globally, WPP’s Campus approach is around encouraging a culture of collaboration. Collaborative & Integrated Work Environment The Campus, WPP’s attempt to bring all its brands under the same roof is not something its peers have not done or are doing. Examples range from Havas Village and also what Omnicom is doing in markets such as India. In the case of WPP however, given the sheer legacy of the business in India being home to behemoths such as Ogilvy, VML (that brings the J. Walter Thompson heritage), Mindshare, Landor, Grey, a move such as this must bring incremental gains. And results show that it has. Despite the unforeseen delays caused by the pandemic, by the end of 2022 and into early 2023, the likes of Bay99 truly started to embody the vision WPP had for Campus—a place where ideas transcend boundaries and industries, appealing to businesses eager to forge deeper connections with their consumers. In India, the collaboration fostered by integrating physical spaces in Mumbai and Gurgaon is not only blending ideas and specialities—from media and consulting to data analytics and content creation—but also fostering a competitive yet cooperative atmosphere that breeds innovation. Leadership and Cultural Shifts The year 2024 can be seen as a milestone year for WPP’s creative businesses. January witnessed leadership changes at Ogilvy India, as advertising legend Piyush Pandey stepped down and Hephzibah Pathak became Ogilvy’s first woman Executive Chairperson. “Piyush has been a nIndia counts among the fastest-growing large markets for WPP nWPP is mirroring the global simplification strategy in India, a key step in its transformation nThe Global Delivery Centre strategy is not only making India a hub of technological innovation but also creating more opportunities for companies and developers in India to do global work nThe Campus approach is taken to foster collaboration & competitiveness Transforming Together: WPP’s India-led Global Renaissance WPP’s global CEO Mark Read & Country Manager for India CVL Srinivas

48 | B W BUSINESSWORLD | 04 May 2024 In an era defined by rapid technological advances and shifting market dynamics, WPP, under the leadership of CEO Mark Read, has undergone significant transformation. Now, over five years into this journey, WPP emerges as a leaner, more integrated and technologically savvy entity. In this exclusive interview with BW Businessworld’s Group Editorial Director, Noor Fathima Warsia,Mark Read delves into the intricate process of reshaping WPP, the pivotal role of AI in creative industries and the strategic manoeuvres positioning WPP to thrive amidst global uncertainties CREATIVITY + TECH + INNOVATION “WPP Today Is Much Simpler & Creatively Stronger” WPP has been on a transformative path for the past five years and we had the chance to speak with you back in 2019 when you first embarked on what was seen as the road of radical evolution. Would you say you have achieved what you had wanted and is WPP today what you envisioned back then? When we embarked on the journey of creative transformation, WPP was a conglomerate of various entities and worked in a structure that may or may not succeed in the digital age. We initiated our transformation by integrating the analogue and digital parts of our business. So, merging major agen- and technology-driven organisation. This structural simplicity has also enhanced our operational efficacy. India has always been an important growth market for WPP. How has it evolved for you in this time? Yes, India has always been a vital market for us. Over the past five years, we have aligned it closely with our global strategy, transitioning into a more streamlined operation. Despite global challenges such as the pandemic, geopolitical tensions and economic uncertainties, our operations in India have grown stronger. These adversities have highlighted the resilience and strategic importance of the Q&A cies such as J. Walter Thompson with Wunderman, and Y&R with VML. Financial restructuring was another early step. We had to address a stretched balance sheet and high net debt, leading to the Kantar transaction, which was a significant move towards financial health. WPP today is a much simpler company, and we are much stronger creatively. As a more integrated company, having streamlined our operations, we have improved interactions and creative output, which is reflected in the positive feedback from our clients and our enhanced market position. WPP today stands as a more cohesive, creative COVER STORY WPP Q&A in association with

04 May 2024 | B W BUSINESSWORLD | 49 Therefore, this structure not only enhances our agility but also allows us to deliver more integrated and technologically advanced solutions. For instance, VML has grown significantly, now employing 30,000 people worldwide and delivering powerful outcomes for both global and local clients. The six networks, that have some sub-brands like David within Ogilvy, make up for about 90 per cent of our business. We understand the need to be flexible but what we want is market-leading brands in each of the disciplines we operate in. This being said, we do believe in brands. The question here is what is the right number of Indian market. Our local teams have leveraged these challenges as opportunities to innovate and drive growth, reinforcing WPP’s leadership in one of the world’s most dynamic and fastestgrowing markets. In this period, and perhaps even due to these challenges, businesses have rediscovered the value of marketing, the importance of brand building, the role that reputation can play in business success and the need to bring strong purpose and culture within the organisation. They understand the importance of adapting to a more technology-driven future and taking advantage of the data they have that is available in the market. As a result, many of their biggest and marquee challenges are the ones that they come to WPP and our agencies to solve. The industry overall is in a better position than it was five years ago. WPP now follows a six-network strategy, a few markets like India being an exception of course. What does this entail, and how does it benefit your operations? Our six-network strategy is about making our company easier to navigate and more responsive. By consolidating our agencies into six powerful networks, we can offer comprehensive services that leverage global insights and local expertise to our clients. India is not just a market for us, it’s a hub of talent and innovation

50 | B W BUSINESSWORLD | 04 May 2024 COVER STORY WPP CREATIVITY + TECH + INNOVATION Q&A brands in an organisation? Someone once said to me that you should have as many brands as needed but as few as possible. That is an insightful way to think about it. The phasing out of the J. Walter Thompson brand was a significant move. What was the market feedback for this decision? Globally, J. Walter Thompson had not kept pace with market changes, diminishing its influence. I understand that was not the case in India but sadly, that was the case globally. The damage to the brand was done more than a decade and a half ago, and it had become a shadow of its former self. By merging it into a more dynamic brand, we aimed to rejuvenate its legacy and align it more closely with current and future market demands. Our judgement was that the combined business would do better work for clients, provide more opportunities to people, grow more strongly and be more profitable than what it would have been when the two businesses were apart, and that is the task we have to deliver on. So far, the integration has been beneficial, improving our service delivery and enhancing client satisfaction. Can you also discuss the strategic i m p o r t a n c e o f India in WPP’s global operations, and what you define as the Indiafirst strategy? India is not just a gic growth pillars, the biggest difference from the past is our commitment to invest in AI. For the first time, we can deploy technology in the creative parts of our business. We have used AI in our media business for many years to optimise media campaigns, devices, search, strategies and buy programmatic. We have also used it in our production business across several tools. The Generative AI explosion however is different. It is going to be impactful and transformational. It will set the scenario, where by bringing what we do together, WPP can lead the industry. It is going to bring the creative, production and media parts of our business much closer together. Unlike in the past, when there were several clear steps from writing a brief to delivery, in an AI-driven world these handoffs do not exist any more. The creative team has an idea and it can be produced instantaneously and taken to media, optimising the creative and media in real-time. This is already changing and it will change even more fundamentally. AI will not replace creativity or people but it will augment them and make them more efficient. One of the goals of our investment in WPP Open, which is our AI-powered marketing operating system, is to enable our people to collaborate across the organisation and we are seeing powerful results from that already. While you say that AI will not replace people, we did see some amount of unrest in the larger creative fraternity, with writers even going on strikes last year… There is no doubt AI is going to change many jobs. The problem is that it is much easier to identify the jobs it is going to disrupt than to identify the jobs it is going to create. If you look at WPP, most of the jobs we have in the company right now probably did not market for us, it’s a hub of talent and innovation. I am very proud of the work that Srini (CVL Srinivas) and the team have done. We have similar operations in Australia, Brazil and other bigger markets where we leverage the value of the group for the benefit of our clients and people. We were in India last year for our global board meeting, and one of the statistics that struck me was that one in four of the world’s workers is Indian. India is the workforce of the world in many ways. Through our Global Delivery Centres (GDCs), India can be a technical capability for the rest of WPP to help us innovate and deliver services more efficiently and effectively. India is instrumental in driving technological advancements across WPP. The scalability of our operations in this market allows us to support global projects efficiently, making it a critical component of our global strategy. Also, as Indian companies continue to grow, they find a familiar partner in WPP to navigate global markets. Yo u h a v e a l s o emphasised the importance of AI in WPP’s future strategy. How is AI transforming your operations? It has been very clear in the past year how fundamental AI will be to WPP’s future and how it will drive transformation in every industry, including marketing. Among our stratelLead through investment in AI, data & technology lUnlocking the power of creative transformation, bringing together creative, media, production & technology lAugment work across brands backed by organisational changes lEfficiently running the business to drive stronger financial returns FOUR PILLARS IN MARK READ’s WPP STRATEGY in association with