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Wednesday, February 12, 2020

economic news of india - world economic news - economics news for students - indian economy news

economic news of india - world economic news - economics news for students - indian economy news


A pending cheque had everyone in Assam at their wits' end

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NEW DELHI | GUWAHATI: A day after data of the final National Register of Citizens (NRC) list disappeared from its official website, IT major Wipro said the services were terminated over non-payment of dues while the Union home ministry clarified that NRC data in Assam is safe even though some technical issues were visible and that it would be resolved soon."The NRC data is safe. Some technical issues are in visibility on the cloud. These are being resolved soon," a home ministry spokesperson said.The data was not available for a couple of days and it created panic among the public, mostly those excluded from the list as the rejection certificates were yet to be issued.Wipro, responsible for IT services, said the authorities did not renew the services contract for the project after it expired in October 2019. 74107014 After a rigorous tender process, Wipro was appointed the system integrator for the NRC project in Assam in 2014, as per the company.In an e-mailed statement, the Bengaluru-based company said it had continued to pay the hosting service fee until January end "as a gesture of goodwill" and that it was willing to continue providing these services if the agreement is renewed by the authorities.However, Wipro did not comment on the quantum of dues or whether discussions were underway to resolve the issue.Meanwhile, a senior officer in NRC, who does not want to be named, told ET, "A case was filed against an NRC officer on Wednesday for not providing the password for the data records.The officer had left the NRC office without handing over the password. This comes under the purview of Official Secrets Act and other authorised officers have not been able to access the data." "Wipro is claiming dues of Rs 70 crore, while as per our estimate it is Rs 60 crore. However, we are in the process of reconciling this," he said.

Yes Bank may get the cash it wants by March

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JC Flowers & Co, a private equity fund specialising in the turnaround of financial firms around the world, is leading a consortium that plans to invest as much as $2 billion in Yes Bank.About half-a-dozen investors, including JC Flowers & Co, Tilden Park Capital Management, OHA (UK) (part of Oak Hill Advisors) and Silver Point Capital, have sent in 'non-binding' expressions of interest, and the investment could be in two stages."The bank and its financial advisors are currently in discussions with these investors on the commercial terms, including pricing, of their investments which…will be subject to certain conditions and receipt of requisite approvals, including regulatory approvals with respect to the size of the stake to be acquired, as well as necessary dispensations with regard to applicable pricing guidelines," the bank said in a late evening exchange filing after ET had earlier sent the lender a query on potential investors in the current round of capital raising.Industry executives told ET that the proposals include a preferential sale of shares to JC Flowers & Co and some investors followed by a rights share sale by Yes Bank. The firm, led by Christopher Flowers, has signed a non-–binding agreement subject to regulatory approval. There is no certainty that the agreement would translate into a successful transaction. The bank's board would meet before March 14 to consider the offers. 74109703 "There has been thorough due diligence of the books and it is only the details like pricing and the regulatory approval that are to be completed,'' said one of the persons cited above. "Of course, there could be many unanticipated issues that could pop up, but it is a lot more concrete than on previous occasions."Yes Bank's financials came under scrutiny last year due to surging bad loans and management uncertainty after the Reserve Bank of India declined to extend the term of founder Rana Kapoor as the chief executive in 2018. Under the new CEO Ravneet Gill, the bank managed to raise one round of funds through share sale to institutional investors, but that was not enough.It recently hired former Deutsche Bank veteran Anshu Jain, now president at boutique investment banking firm Cantor Fitzgerald, to help raise funds. Ambit Capital's Ashok Wadhwa has been working along with Jain in raising investments from JC Flowers, it is learnt.Successful completion of the transaction with JC Flowers would be a coup of sorts for Yes Bank, the shares of which have been pummelled in the past few months for failure to raise money.JC Flowers, the youngest partner at the storied Goldman Sachs Group who went on to lead its financial services business, made his name by investing in distressed financial institutions across the world. His investments in Japan's Shinsei Bank after its collapse in the 1997 Asian financial crisis, the first by a foreigner in Japan, vaulted him onto the global stage. Flowers successfully turned around the lender with a focus on retail lending, buttressed by technology.TECH EDGEFor a private equity investor of JC Flowers' stature who has held on investments for more than a decade, Yes Bank could be a good bet as its technology platform offers the potential to grow in an economy that's increasingly turning digital, a top industry executive said."Yes Bank does more UPI transactions than the top three private banks put together and more than double that of Paytm," said the person. "If other private transactions are any indication, its tech platform could be valued as high as $6-7 billion.'' Flowers had other investments in Europe too. He backed the UK's OneSavings Bank and the Dutch lender NIBC NV.At Yes Bank, Flowers' stake could go as high as 50% depending on the structure of the deal the regulator permits."If there's a market solution to the problem, there should be no issue,'' said one of the persons aware of the negotiations with the regulator. "It can cap the voting rights at 15% and permit a higher holding."Yes Bank shares are down 88% in the past year from their peak due to its weak financials. The bank rejected Canadian billionaire Erwin Singh Braich's offer to buy $1.2 billion worth of shares late last year.Raising capital is crucial because rising non-performing loans have increased provisions and eroded the bank's net worth. The bank posted a loss of Rs 600 crore in the September quarter due to a one-off tax hit of Rs 709 crore on account of the change in the corporate tax rate regime. Excluding this one-time hit, adjusted profit was Rs 109 crore. Gross bad loan ratio rose to 7.4% from 5% at the end of June.

Ikea's worried about a made-in-India mug

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NEW DELHI: A fact-finding team from Ikea last week visited India as part of an internal probe into the alleged presence of excessive chemicals in locally made mugs that prompted the Swedish furniture major to recall the products worldwide, two people familiar with the development told ET.The Ikea compliance team last week visited Vadodara-based Shaily Engineering, the company that had supplied the mugs, as part of the investigation, one of the persons said.In January, the Swedish furniture and home products giant said it was recalling Troligtvis-branded mugs — priced Rs 129 apiece in India — from more than 400 Ikea outlets worldwide, barely four months after Ikea started selling the product globally."IKEA works together with approximately 1,600 suppliers globally. Due to confidentiality and business reasons we do not share details about individual supplier relations," an Ikea spokesperson said in an email response to a query about its probe and the Ikea team's visit to Shaily.Sanjay Shah, chief strategy officer of Shaily, declined to comment.In an analyst call after the third quarter earnings, Amit Sanghvi, MD of Shaily, said the Vadodara-based company has not been immediately affected by the recall."At the moment, we don't have any liability on the product recall," he told investors on February 4.Ikea was prompted to recall the mugs after tests found excessive level of dibutyl phthalate (DBP), a substance that is used as plasticisers to enhance durability and flexibility of plastic products.Sanghvi told analysts that Shaily was 'not at fault' for the global recall of the travel mugs. "Is there a problem, yes there is a problem for which the product recall was initiated. Is the problem related (or) to because of Shaily's manufacturing. No," he said in the conference call.

Consumer durables’ sales growth best since DeMo

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KOLKATA: Sales growth of refrigerators, ACs and washing machines in 2019 was the best since demonetisation, signalling a revival in discretionary purchases and kindling hopes that the economy is on the mend.Volume sales in the overall consumer electronics and major domestic appliances market grew 9% year-on-year in 2019 against 1% in 2018 and 4% in 2017, as per data released by GfK India. Industry executives attributed the revival largely to pentup demand.Panasonic India CEO Manish Sharma said green shoots of consumption revival are visible now, with growth improving quarter-on-quarter. "Products such as ACs, refrigerators, washing machines and smartphones have become necessities," he said.Brian Bade, CEO at India's largest smartphone and electronics retailer Reliance Digital, said there is improvement in consumer sentiment. "Average billing size has gone up, as has same-store growth," he said.Sales Picking UpSmartphone sales growth in 2019 took a marginal beating over 2018, but it was still better than 2016 and 2017, GfK data showed. Industry executives attributed this to lack of compelling product innovation in smartphones.At the same time, television sales in 2019 declined 2% due to a shift towards audio-visual consumption over smartphones.Despite the pickup in overall electronics and durables sales last year, the growth rates in most categories are still way below the pre-demonetisation days when sales used to grow in double digits. This shows that it might take some more time before a wide spectrum of consumers, such as those in rural India, opened their purses, industry experts said.GfK India managing director Nikhil Mathur said the growth in 2019 was driven by both first-time buyers and those upgrading their products. As per GfK data, refrigerator sales went up by 9% in 2019, those of washing machines by 12%, and air-conditioners by 25%.Offline SalesSmartphone sales growth in offline stores declined marginally from 10.9% in 2018 to 8.7% last year. Sales growth was lower in 2017 and 2016 at 7.5% and 4.3%, respectively. In online, smartphone sales remained resilient last year, growing at 45% like in 2018, GfK reported.As per GfK's consumer life study, more than 60% of urban consumers aspire to spend on personal and home electronics followed by appliances (53%) and education (43%) in the next 12 months. "Thus, if other economic indicators and consumers' mood remain stable, the overall consumer electronics category may show a good momentum," Mathur said.He, however, warned that the supply chain of both smartphones and electronics may be impacted in the short term due to the Covid-19 outbreak in China, which could impact sales.GfK is the only agency in India that tracks real sales to consumers at retail points while other trackers release data based on product shipment, which could also include unsold inventory."Sales started picking up since April-June quarter when products like refrigerators and airconditioners reported brisk sales due to extreme summer," said Godrej Appliances business head Kamal Nandi.

Max Estates forms JV with New York Life for Noida realty project

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New Delhi: Max Estates, the wholly owned subsidiary of Max Ventures and Industries, has formed a 51:49 joint venture with New York Life Insurance, the largest mutual life Insurance company in the United States, to develop a commercial real estate project in Noida.The Rs 400 crore project, with a built-up area of 700,000 square feet, will be the second investment of New York Life Insurance in Max Ventures and Industries in the past two years. In 2017, it had invested nearly Rs 250 crore in a combination of preference and right issues of Max Ventures and picked up nearly 23% stake."This would be the third commercial project of Max Estates. We aim to scale up to among the top three commercial real estate developers in the region within the next three years," said Sahil Vachani, managing director, Max Ventures and Industries."Our business model going further is to develop the commercial projects in the partnership with such large foreign funds. Companies are preferring developer owned office to lease vs strata sold ones so we will own the assets and give them on long term leases," he said.Strata sold buildings are the ones which are pre-sold to investors in parts who then further lease them out to companies."Max Ventures will have continued stream of income from these projects. It will have project management fee during the construction phase of these projects and asset management fee after the completion of the projects," said Vachani.The company is also looking at acquiring some distressed assets that are coming up for resolution under the Insolvency and Bankruptcy Code.Max Estates has already developed the 600,000 sq ft Max Tower in Noida and is set to complete a second project of 300,000 sq ft, Max House, in the next quarter.New York Life had partnered with Max Group to form Max New York Life Insurance Company Limited with 26% ownership. The American insurance behemoth sold its stake to Mitsui Sumitomo Insurance Company Limited of Japan in 2012.According to Colliers International, a Canada-based global commercial real estate services organisation, leasing activity continued its strong momentum in 2019 across seven major cities in India with gross absorption at a new high of 58.6 million sq ft, 17% higher than in 2018.

Supertech to sell assets to fund completion of NCR homes

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Mumbai: Real estate firm Supertech is looking to sell its assets to raise fund for completing about 20,000 homes in New Delhi-NCR.Supertech chairman RK Arora told ET that the company has applied for the realty stress fund and as a backup plan, has identified several of its malls and hotels in tier II cities to raise Rs 700 crore."For the stress fund, we have given a list of 12 projects, where 30% of the work has been completed. It (still) requires last mile funding of about Rs 1,500 crore. We are hoping for a positive outcome and are committed to deliver 20,000 flats by 2022," said Arora.He said that due to a lack of funding, the pace of construction has slowed down, and only 50-60% of the flats are sold."We are in talks to sell malls and hotels in Meerut and Haridwar to generate about Rs 700 crore. Once the money flow starts, there won't be any issue as we have committed receivables of about Rs 4,000 crore," Arora added.The 12 projects that require funding are Hilltown Hill View, Hill Town Crest, Golf Country, ORB and Capetown, Ecovillage 2 and 3, Romano, Sports Village, Meerut Sports City and Green Village, Hues and Azalia.The chairman said Supertech will not launch any product till they complete and deliver existing projects.Supertech is however banking on the commercial return from Supernova, the tallest building of NCR at Sector 94, Noida.Supernova is India's largest mixed-use development spread across 7 million sq. ft. of area.The project has currently four towers – Spira, the Iconic Tower, which is India's tallest mixed use development of 80 floors standing at 300 meters, Nova East, Nova West and Astralis tower.Spira, the tallest tower consists of high-end luxurious branded residences, suites, serviced apartments, premium and luxury malls, futuristic offices and ultraluxurious condos.The 80-floor tower has 13 floors dedicated to residences.

Family businesses are doing better than rest of India Inc

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There is a reason why they call it family silver. The ET Intelligence Group's analysis of the publicly available data of 884 listed family-run enterprises reveals that they have earned slightly higher returns than the overall sample of India Inc as well as that of the professionally-run businesses.Family businesses have earned 14 per cent annualised returns between January 2017 and January 2020 on the stock exchanges. In the same period, the sample of 2,770 professionally-run companies and India Inc gained 12 per cent and 13 per cent, respectively.The aggregate market capitalisation of family businesses is at around Rs 65 lakh crore which is an average of the market cap for January 2020. This was 42 per cent of India Inc's total market cap of Rs 156 lakh crore. The Tata Group (market cap of Rs 11.8 lakh crore) and Mukesh Ambani-led Reliance Industries (Rs 9.4 lakh crore) were the second and the third largest business groups in the country after HDFC group (Rs 12.4 lakh crore), which has been professionally managed for over two decades. 74109418 The current composition of the benchmark indices includes a majority of family-run companies. The Nifty50 has 31 family-run companies and the S&P BSE Sensex has 16. They contribute 52 per cent and 49 per cent to the market cap of the Nifty and Sensex, respectively, thereby highlighting their pivotal roles in cultivating investor culture.One would wonder how these family-led businesses fared individually. To that effect, a further slicing of data shows that one out of nearly every three business families reported higher returns than Sensex's 15 per cent returns based on 3-year compounded annual growth rate (CAGR).On the financial front, the sample of family businesses clocked Rs 24 lakh crore in revenue and Rs 1.8 lakh crore in net profit in FY19.They contributed one-thirds and one-fourths to India Inc's total revenue and profit. Moreover, the annualised growth rate of sales and profit for the family-run companies at 10 per cent and 15 per cent was marginally higher than that of 9.5 per cent and 7 per cent for the larger sample in that order.In line with the findings of PwC India's Family Business Survey 2016, 76 per cent of Indian family businesses have shown growth in the last 12 months as well, which is higher than the global average of 69 per cent. Further, 58 per cent have achieved double-digit growth, which is significantly higher than the global number of 34 per cent, said PWC in their latest study from 2019."Family business leaders have told us they will fund this growth through bank lending and credit lines along with internal sources, namely cash flows, family funds and so on. More than half also said they will explore private equity/venture capital funds as an option or will look at listing on a stock exchange," said Ganesh Raju K, partner, PWC.The wariness to seek public or institutional capital is also changing and PE capital has acted as a catalyst to change perceptions among founders. "It is not surprising that 56 per cent of family businesses say that they will be looking at bringing in PE funding for the business.Moreover, 17 per cent of family businesses mention they will consider procuring funds from other families or through family offices. Usually, this signifies crossholdings between related families/friends; however, lately, a key emerging trend is procurement of funds through multifamily offices," adds Raju.

Many financial names won't survive in next 3 yrs: Srivastava

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When we spoke last it was on the budget day and the general view was that the markets will go lower. What we are staring at is a lot of strength, record highs and good market breadth. So if the budget was okay, why are markets looking great?One thing is clear that the RBI policy itself was very supportive. It was a great surprise because there were a lot of nice and refreshing aspects to the policy compared to the dogmas of the past. It may have its own risk and I acknowledge that but at least it is a path forward to doing something different. Number two alludes to the budget. Let us be honest, the budget had nothing great about it. Since the stock market and economy are so linked together, the market is being driven by global flows or at least local flows. Then thirdly, this whole thing about the value in midcaps has been built up to a crescendo at this point in time. As a result, more than institutional money, a lot of local money has gone into buying the same old stocks. If you look at Bajaj Finance, it has moved from Rs 4,000 to Rs 4,700 and so on. It is one of the times when the local money has been convinced that this is the right time to buy into the market and they have bought the same old themes. I do not think midcap has been such a great theme but rather has by and large been about the same old stocks. We are at a time where the absence of bad news is good news and there is so much money on the sidelines. Everybody has got so much money and what do they do with it? They go and buy a Nestle or a Bajaj Finance or a Hindustan Lever or a PVR or Apollo. We look at what will happen this year in terms of economy but investors are okay with the five-year horizon. They own Nestle or Apollo Hospital or PVR and are not looking at one-year horizon. It is a very different time frame that investors are looking at today compared to what the market participants typically believe in.So what is the bottom line here? Can I say the fabric of the market will remain the same because the budget has done nothing that will take us back to 7 per cent growth and if flows are strong the same 15, 20, 25 may be 35 stocks will keep on marching higher?If you even look at the phenomenal Delhi elections which just happened shows that economy does not seem to be an issue with anybody at this point of time and that is the scary part which has us worried. One would tend to believe that there is an urgency in the government or the system to address economic issues because those affect the electoral fortune. But that does not seem to be the case. Neither the winning party, which has astounding win, spoke about the economy nor the ruling party, which had nothing much to comment about. You are right in saying that we will trundle along as far as the economy is concerned. One day the piper will call you when they say the dichotomy between the economy and what is happening in terms of the stock market will come to bear. I would still say that in a struggling economy we are going to see more and more concentration of economic power with the top 100 or 200 companies. In a manner of speaking, the wish of the investors will come true. While the economy will struggle at 5 per cent or 6 per cent growth, some of these companies may produce good results. The lobby is strong. Let us not neglect the fact that the result of every company has tax benefit. This will not be the case next year; the base effect will catch up next year. It will be a troubled time for the economy but investors have nowhere to go. With the money in the bank, you are not going to buy midcap or a very small cap given what has happened, such as the decimation of Coffee Day or Eros Media. You will buy the same stocks at this point of time and we will trundle along. The worrisome part is lack of electoral response to the economy. It is not a good sign for us because that means the urgency to handle the economy is not there at this point of time.Should one invest in this low liquidity, low growth and abundant cash environment?One good part is that while this market is doing well at 12,000 and thereabouts, large pockets are at historic lows and one of the key standpoints is that the biggest destruction in value has happened in the PSU stocks. In the last five-six years, the sheer market cap reduction in PSU stocks could have financed all our fiscal deficit by that point of time. But on the other side, it gives a tremendous opportunity if you are getting your oil marketing companies, resource companies, oil pipeline companies closer to 1-1.25 book value. Look at GAIL, the stock was around Rs 121 and the dividend of Rs 6.5 was announced. That is an incredible situation out there. There is a need to be in some of the pockets which are monopolies. Yes, there are PSUs to that extent in that market and more value destruction can happen but at some point in time, you will not destroy more value than what you have done. And I believe we are reaching a point where the value is so down that can you destroy it more? Maybe not. You do not have to necessarily go to the larger pockets. One can be in some of the pockets giving good dividends and hopefully good returns and PSU block is one such investment area. Secondly, there are healthcare companies one can look at. All healthcare companies are now deleveraging at a frenzy which we had not seen before. In a year or so, all Indian pharma companies will have a leverage of 0.25 or below and at that number serious value will start to emerge. And then there are metal companies which are again at the bottom end of the cycle. The dilemma is not where you invest, it is rather how much more do you invest in the largecaps -- whether it is Bajaj Finance or HDFC Bank or HDFC. We are loading up on PSUs; healthcare companies will be countercyclical and there the alpha value will be significantly higher. It has not been proven true so far in the last 12 months, it has been on the negative side in fact but we are hoping it will turn around. Find some stable pockets of return rather than just piling up into the same shares. When we are looking out for multibaggers there is a sense that we might miss out if we do not get in at these levels because despite all the recent blips we have had markets have continued to bounce back. In that context, what about PSUs when it comes to some of those cyclical names? In infrastructure, some of those pockets still seem to be beaten down but could they provide manifold returns?PSU stocks represent very high risk and very high return because it's difficult to understand how one can destroy this kind of value in five or six years. I am a buyer and I have a large holding in PSU stocks and it runs across the spectrum. I have oil marketing companies, gas companies in my portfolio; you name the PSU on a dartboard and I think I will have it in the portfolio. But that is a very tough call but we have taken that call and we are enjoying the dividend to that extent. Let us be honest, we cannot blame the investors if they don't pick PSU stocks because when they look forward ahead three-four years, they need to find safety. If you just read the budget, it is a scary document, look at the write-offs sitting on it, the Food Corporation of India, the electricity distribution companies and now the government says they will not be able to compensate the states for the GST. So, growth will be really out of the window. If we look at the financial landscape, it looks scary. I do not think many will survive in the next three years time frame. The RBI has kicked the can down the road. There will be MSME restructure one-two years down the road and that is required perhaps but what will happen in two years' time when all become bad debt? Let us be honest about it. We are looking at the transmission companies' bad debt, production of electricity bad debts, Mudra loan bad debts, now the MSME bad debts. If you were to put your money in the bank where would you go? You will just go to an HDFC Bank, a Kotak Bank and put the money and sit tight. I cannot fault the investors and we must respect the wish of the investors to say that in an economy which is wobbly as ours we are not willing to take the risk with our money. We are willing to ride with Nestle or HDFC or Bajaj Finance but not willing to ride with Yes Bank or IDFC First. And that is a very sensible choice. I would still tell investors to extend their horizon of return longer and longer. We had a large holding in Nestle, we are just buying it thinking it is going to take five years but it gave a fantastic return in 12 months' time. So, the market can surprise you but this is a market for quality, not for risk. If you are buying value on risk basis on midcap and smallcap, you are going to come to serious grief as all of us have come in the last three years. There was a view that the markets are getting specifically focussed on earnings, performance. In midcaps and smallcaps we have seen that there have been select names that have shown steady performance. Would you stay away as a blank risk averse or would you actually also look for some quality names in the broader markets?Again it is the definition of midcaps. After Sebi formula, the midcap is a fairly large space. Would you qualify SRF to be midcap or largecap? I am not sure. It has done fantastically well in terms of performance. Therefore, we are talking of companies with a turnover of Rs 2,000 crore. When we talk of midcaps, we talk of companies sub Rs 500 crore and that is an extinct species. In the three-year time frame, very few such companies will survive. So, it does not matter if you may have an odd quarter. In an economy growing at 5 per cent, if the market leader grows at 10 per cent, that means everybody else will have to de-grow by almost 50 per cent in terms of their growth rate. The arithmetic is clear. It is against the small companies so a good result should not get you excited. There are lots of good names but again they are overvalued. If you look at Dr Lal PathLab, Metropolis, they are hugely overvalued in the context of their growth scenario. Growth is where the FIIs are going to buy at the end of the bottom line. Growth is not going to come where the local HNIs are going to buy because of a single jerk and the price cut could be 20-30-40 per cent. In this environment of low economy, draw the line unless you are willing, like us risk-takers, to say I want PSU, healthcare, etc. Your dividing line is if it is on the FII list or not. If it is not, it should not be on your list also.What are the lessons learnt from DMart?Retail as a sector we all thought was gone and out but DMart is an amazing story out there that surprised everybody. Not only DMart, the second one which has surprised us more than DMart is IRCTC. If you have missed out on the story, don't lose heart because there will always be such cases as DMart, etc. The lesson is that you will find such cases, enjoy the look of it, congratulate the guy who actually invested in it but stick to your investment thesis because while looking for DMart you may end up buying a Coffee Day as well.A great compounder can also be multibagger. Look at HDFC, it has been a multibagger but it has been compounder. Which is that great compounder, which looks like a compounder today boring, dull, ordinary business and gives you a 15 per cent return but at the end of the decade it may turn out to be a multibagger?Three-years back we were discussing a similar concept, saying not HDFC but what could be the next Maruti. We had volunteered to add, not that we recommend stocks, PVR. I still believe that is one story which is going to be the story of the decade. It is absolutely phenomenal. They have the expertise, the right model, and a passionate promoter. It is not even a stock that offers 10-15 per cent but it will be the story of the decade. All of us go and see movies, so we keep contributing to their earnings.

India has a distinctly different use for AI: N Chandrasekaran

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MUMBAI: Tata Sons chairman N Chandrasekaran said the current narrative around artificial intelligence and automation — of efficiency improvement and these replacing human jobs — stemmed from developed economies and that developing countries like India had distinctly different use cases for these technologies. "The narrative of AI taking jobs comes from advanced economies because of their challenges when it comes to ageing workforces, markets getting mature and lack of growth," Chandrasekaran said in his first keynote address at the Nasscom Technology Leadership forum.Listing out a few characteristics that would make future technology usage and adoption in India different from developed economies, he said technology would have to be leveraged here firstly to create markets, unlike in other markets where technology was making existing markets more efficient.India's demographics demanded a different approach to automation, he said. Chandrasekaran, who was previously the chief executive of the nation's largest IT services company, Tata Consultancy Services, said the Indian technology industry's vision for 2030 should not just include software professionals and white-collar workers, but must also include others in the economy."We have to remove this hallowed effect and aura about AI and the misconceived fact that AI is only for the elite or well-read," he said.In the coming decade in India, 90 million people would be joining the workforce which entailed that unlike developed economies, age or lack of resources would not be a problem for the economy, he said.

Average salary at record Rs 28 lakh in IIM Calcutta final placements

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IIM Calcutta has completed final placements for its MBA Class of 2020 with a record average salary of Rs 28 lakh and median salary of Rs 25.5 Lakh. The average salaries for the top 10% and the top quartile of the class were recorded at an all-time high of Rs 54.5 Lakh and Rs 41.8 Lakh per annum respectively, the institute said in a release.The institute offered "Dream" and "Wait and Hold" options to give its students more choices. Recruiters could also select from a larger pool and make offers to the most suitable candidates as per their choice. 439 students bagged 492 offers from 136 firms participating in the placements process.The Consulting sector was the largest recruiter with 31% offers. The Boston Consulting Group, McKinsey & Co., Bain & Co., Kearney, PricewaterhouseCoopers and Accenture were the top recruiters in the sector. Marquee Finance and Private Equity-Venture Capital (PE-VC) firms made 83 offers (17%). Bank of America Merrill Lynch, Barclays, Goldman Sachs, Arga Investment Management, Gaja Capital, JP Morgan Chase and others extended top roles to the 55th batch of IIM Calcutta.General Management and Sales and Marketing roles added up to 30% of the total offers. Major firms recruiting for such roles included TAS, Aditya Birla Group, Mahindra & Mahindra, Reliance, Vedanta, TrueNorth, Hindustan Unilever, Colgate-Palmolive, ITC, Mondelez, and FIITJEE. 22% of overall offers were rolled out in Product Management, IT/Analytics and Operations domains. Top recruiters included Microsoft, Google, Salesforce, Amazon, Flipkart, Udaan, EXL Service, American Express, HCL, UnitedHealth Group (Optum) and Mastercard.