Search Results for “vns finance & capital services ltd” – Finschool By 5paisa (2024)

Trading houses play a crucial role in the global economy by facilitating international trade and providing various services to businesses. This article will explore what trading houses are, their functions, advantages, and disadvantages, and provide examples of well-known trading houses.

Introduction

Trading houses, also known as trading companies or conglomerates, facilitate trade between countries. They act as intermediaries, connecting buyers and sellers worldwide, and provide a range of services to facilitate smooth transactions. These companies significantly impact global trade and contribute to the growth and development of economies.

What is a Trading House?

A trading house, also referred to as a trading company or a general trading concern, is an entity that specializes in facilitating international trade. It acts as an intermediary between buyers and sellers across different countries, connecting them and facilitating the exchange of goods and services. Trading houses typically have extensive knowledge of various markets, including local regulations, customs, and cultural nuances, enabling them to navigate international trade with expertise.

Understanding Trading Houses

Trading houses bridge manufacturers and consumers, playing a vital role in the global supply chain. These entities establish networks of suppliers and buyers, bringing them together to facilitate trade. They handle various tasks such as sourcing products, negotiating contracts, arranging logistics, and managing documentation. By leveraging their expertise and industry connections, trading houses streamline the trading process, saving businesses time, effort, and resources.

Additional Roles of Trading Houses

Apart from their core function of facilitating trade, trading houses often take on additional roles to provide comprehensive services to their clients. These roles may include:

• Market Research: Trading houses conduct extensive market research to identify emerging trends, consumer preferences, and potential business opportunities. They gather valuable insights that help businesses make informed decisions about entering new markets or diversifying their product offerings.
• Financing: In some cases, trading houses provide financing options to facilitate trade transactions. They may offer credit facilities or engage in trade finance to bridge the gap between the exporter and importer, minimizing financial risks and uncertainties.
• Quality Control: To ensure the satisfaction of both buyers and sellers, trading houses often perform quality control inspections. They verify the quality, quantity, and specifications of goods before they are shipped, reducing the likelihood of disputes or misunderstandings.

Trading Houses and Debt Security Markets

Trading houses also play a role in debt security markets. These markets involve the buying and selling of debt instruments such as bonds, treasury bills, and commercial paper. Trading houses act as intermediaries in these transactions, facilitating the transfer of debt securities between buyers and sellers. Their expertise in these markets enables them to provide liquidity and efficiency, contributing to the smooth functioning of the debt security market.

Types of Trading House

Trading houses can vary in structure, specialization, and geographical focus. Some common types of trading houses include:

• Commodity Trading Houses: These trading houses specialize in buying and selling commodities such as oil, gas, metals, agricultural products, and raw materials. They often have in-depth knowledge of specific commodity markets and engage in trading activities to capitalize on price fluctuations.
• Industrial Trading Houses: Industrial trading houses focus on specific industries and act as intermediaries between manufacturers and consumers. They may specialize in sectors such as automotive, electronics, chemicals, or machinery, providing value-added services tailored to the unique requirements of these industries.
• Multinational Trading Houses: Multinational trading houses operate globally, with a presence in multiple countries and regions. They leverage their extensive networks and resources to facilitate cross-border trade, offering comprehensive solutions for businesses looking to expand internationally.

Advantages of Trading Houses

Trading houses offer numerous advantages that can significantly benefit businesses engaged in international trade. Some key advantages include:

1. Economies of Scale

By consolidating the purchasing power of multiple buyers, trading houses can negotiate favorable terms with suppliers. This allows businesses to access goods and services at competitive prices, benefiting from economies of scale that would be challenging to achieve individually.

2. Management of Currency

In a global marketplace, currency exchange rate fluctuations can impact trade transactions’ profitability. Trading houses possess expertise in managing currency risks, employing strategies such as hedging or currency swaps to mitigate potential losses and ensure stable cash flows for their clients.

3. International Presence

Establishing a presence in foreign markets can be complex and costly for businesses. With their existing networks and knowledge of international markets, trading houses provide a ready-made infrastructure for firms to enter new markets and expand their global footprint.

4. Risk Absorption

Trading houses often assume a certain degree of risk associated with trade transactions. By acting as intermediaries, they absorb credit risk, market volatility, and logistical challenges, allowing businesses to focus on their core competencies without being burdened by these uncertainties.

5. Global Sales Opportunities

For businesses seeking to expand their sales channels, trading houses offer access to global markets and a diverse customer base. By leveraging the trading house’s network and market knowledge, businesses can tap into new sales opportunities that may have needed to be easier to access independently.

Disadvantages of Trading House

While trading houses offer significant advantages, there are also certain disadvantages to consider:

• Additional Costs: Engaging a trading house involves fees or commissions for their services. These costs must be carefully evaluated to ensure they are justified by the benefits received.
• Dependency: Relying heavily on a trading house for trade operations may create a sense of dependency. Businesses should assess the potential risks associated with such dependence and evaluate alternatives to mitigate these risks.

Example of Trading Houses

One notable example of a trading house is Mitsui & Co., Ltd., a Japanese trading company with a rich history and extensive global operations. Mitsui & Co., Ltd. operates in various sectors: energy, metals, machinery, chemicals, food, and finance. With its diverse portfolio and global reach, Mitsui & Co., Ltd. exemplifies the capabilities and expertise of a trading house.

Japan’s Sogo Shosha

When discussing trading houses, it’s impossible not to mention Japan’s Sogo Shosha. Sogo Shosha refers to a group of trading companies in Japan that play a vital role in the country’s economy. These trading houses, including Mitsubishi Corporation, Mitsui & Co., Ltd., and ITOCHU Corporation, have a rich history and diverse operations spanning multiple industries. With its vast networks, financial resources, and expertise, Sogo Shosha has become synonymous with trading houses.

Conclusion

In a globalized world, trading houses are invaluable facilitators of international trade. Their expertise, market knowledge, and extensive networks unlock opportunities for businesses, enabling them to navigate the complexities of global markets. Whether providing access to new markets, managing risks, or streamlining trade operations, trading houses play a pivotal role in the success of businesses engaged in international trade. By harnessing the services of trading houses, companies can expand their horizons, capitalize on global sales opportunities, and achieve sustainable growth in the dynamic landscape of international trade.

• “Paytm mat karo” says RBI as the Payment Bank has failed to follow important guidelines. As per the RBI’s licensing and operative guidelines for payments bank, aggregate customer balance limit for PPBL customer at the end of the day cannot exceed Rs 2 lakh. Neither PPBL norPaytmhas disclosed the deposit base of PPBL.
• A mail sent to One97 Communications Ltd did not elicit any response. The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.
• Paytm failed to identify beneficial owner in respect of entities on boarded by it for providing payout services, did not monitor payout transactions and carry out risk profiling of entities availing payout services, breached the regulatory ceiling of end-of-the-day balance in certain customer advance accounts, and even delayed reporting a cyber security incident. One97 Communications owns 49 per cent in PPBL and Paytm founder and Chairman Vijay Shekhar Sharma has 51 per cent stake.

What were the imposed restrictions?

• The restrictions imposed on the lending arm encompass a suspension of deposits, credit transactions, fund transfers, and top-ups. Services, like repaid instruments, wallets, FASTags, and National Common Mobility Cards, will also face a pause in operations. However, interest, cashback, and refunds will still be credited, with accounts remaining accessible solely for withdrawals or usage.
• Banking services like bill payments and UPI, will cease in the upcoming month. Nodal Accounts managed by the parent company, OCL, and Paytm Payments Services will be closed by February 29, with all pending transactions and nodal accounts settled by March 15.

What caused these regulatory woes?

• While the lending arm has been granted a one-month period to cease operational services, this isn’t the company’s first brush with regulatory concerns.
• Since the inception of PPBL in 2017, regulatory issues have plagued the company’s journey repeatedly. From failing to comply with KYC guidelines to suspending the creation of new accounts, Paytm has faced several regulatory hurdles. The recent RBI notice specifically mentioned non-compliance and supervisory concerns. Paytm indicated that it anticipates a potential worst-case impact of Rs 300 to Rs 500 crore on its annual EBITDA moving forward.

Can customers withdraw or deposit money??

• As per the RBI directive, customers will not be able to make deposits or add money to your Paytm Payments Bank savings, current account, debit card, NCMC, transit andFASTagafter February 29, 2024. However, there is no restriction on withdrawal of money from the existing balance even after February 29, 2024
• On the other hand, parent Paytm said the disruption of business will continue for a few weeks. There are some operational changes, which will take it a week or two to do before we can kick-start the new business back again, it said. And then the existing business is just about making sure that the people who had set up their mandates from PPBL bank account are able to switch to another bank account, which work has already started.
• One97 Communications, in a filing to exchanges on Sunday, denied any involvement in anti-money laundering activities. “Neither the Company nor its founder and CEO are being investigated by the Enforcement Directorate regarding inter alia money laundering. We have and continue to abide by Indian laws and take regulatory orders with utmost seriousness,” the company said.

PPBL has 3 crore bank accounts

• Paytm Payment Bank has over 30 crore wallets and 3 crore bank accounts, as per the information on the bank’s website. It has over 10 crore KYC customers, with 4 lakh users added every passing month.
• The bank is the largest issuer of FASTag with over 80 lakh FASTag units issued. A payment bank can raise deposit up to Rs two lakh but it can’t issue loans or credit cards.

What’s now for the company?

• PPBL has paused its primary services like deposits and credit transactions, fueling concerns about layoffs in the company. However Vijay Shekhar Sharma reassured the employees of the lending arm that there would be no job cuts.
• He further said that there are ongoing discussions with the RBI and other bank partnerships. As the company continues to encounter challenges, people may seek alternatives in the digital payment space, yet the debate over loosening regulations for fintech space remains a headline question.

Paytm Shares Drop After RBI Action

• Digital payments firm Paytm lost a fifth of its market value on Thursday after the RBI’s action against its associate Paytm Payments Bank. Paytm’s stockfell to a six-week low of ₹ 609, erasing around $1.2 billion in value from the company.
• The stock was down 20%, at the bottom of its exchange-imposed daily trading band. Paytm said it expects a “worst case impact” of₹300 crore to₹500 crore to its annual earnings fromRBI’s order. The company also said it is taking “immediate steps” to comply with the RBI’s directions and that it expects to “continue on its trajectory” to improve its profitability.

Paytm Money: Are your investments safe?

• Many Paytm Money customers are understandably worried about their investments in the wake of the RBI’s decision to suspend certain activities of Paytm Payments Bank owing to ongoing substantial supervisory concerns and continuous non-compliances, which require additional supervisory action.
• To ease the customers’ worries, Paytm Money, in a mail to its investors, said that the Paytm Payments Bank Ltd (PPBL) does not have any impact on the operations of Paytm Money Ltd (PML) and has no impact on your investments with PML in Equity, Mutual Funds or NPS.

Paytm Money has highlighted the below points for their investors

1. PML is regulated by SEBI and is fully compliant to all regulations and policies
2. Your equity, bonds, ETFs are all secured in your CDSL Demat Account and consequently are always safe and transactions as you are aware can only be done with your authorization
3. Your Mutual Fund/SIP investments are with respective AMCs and are also safe. You can continue to invest/redeem as usual
4. Funds that are transferred to PML’s trading account are up-streamed (transferred) to Indian Clearing Corporation Ltd (ICCL) of BSE as per SEBI regulations, and thus are also safe.

For investors whose default is Paytm Payments Bank

• According to the Paytm Money mail, “For investors who have set PPBL as their default account, you will need to change it before 29th February 2024 with a simple addition of an alternate bank. We shall communicate the specific process for the same separately and help you get this done.
• We appreciate your continued trust and support. If you have any questions, please do not hesitate to contact us at feedback@paytmmoney.com.” Paytm founder Vijay Shekhar Sharma took to X and stated: “To every Paytmer,” Sharma wrote, addressing the platform’s user base directly.
• “Your favourite app is working, will keep working beyond 29th February as usual.”

Paytm, pushed the system too far?

• SoftBank Group-backed Paytm has remained under RBI’s regulatory scanner for the last two years. Two years ago RBI asked Paytm to not acquire new customers, the primary issue being a lack of compliance with Know Your Customer (KYC) norms. Poor KYC adherence can lead to a surge in financial frauds, an additional headache for investigative agencies as it can lead to digital dead-ends.
• A case of one account linked to one PAN number operating over Following multiple warnings, the central bank asked the fintech company to stop its mobile wallet business citing persistent non-compliance and supervisory concerns.
• RBI’s technical audit into the functioning of the fintech found money and data traffic flows between Paytm Payments Bank and the rest of the Paytm universe that created accounting and supervisory problems. Furthermore, RBI was also reportedly uncomfortable with management overlap.

5G Spectrum Auction in India concluded on seventh day of the sale with the government netting a record over 1.5 lakh crore, government and industry officials said.

The evolution of mobile communication technologies has been nothing short of phenomenal. After introduction of the first generation network in the early 1980s, we are now knocking the doors of fifth generation communication systems that are designed to deliver ultra-fast internet and multimedia experience for customers.

Communication airwaves, also known as radio frequency spectrum are an important resource for mobile communication technologies

Before we get in to the topic lets discuss what Spectrum Auction is.

Spectrum

Spectrum is the intensity oflightas it varies with wavelength orfrequency. An instrument designed for visual observation of spectra is called aspectroscope, and an instrument that photographs or maps spectra is aspectrograph.

Auctions
An auction is usually a process of buying and selling goods or services by offering them up for bids, taking bids, and then selling the item to the highest bidder or buying the item from the lowest bidder.

India and Spectrum Auctions

• From mobile phones to police scanners, TV sets and radio, virtually every wireless device is dependent on access to wireless spectrum.
• However, radio spectrum is not uniformly applicable, physical and natural conditions can constrain its application to some technologies. To optimize its use radio spectrum is divided into bands of varying frequencies.
• Usually, low frequency spectrum is preferred for better propagation characteristics, while high frequency spectrum is deployed to push greater volumes of information in each frequency band.
• In India, the Department of Telecommunications (DoT) conducts auctions of licenses for electromagnetic spectrum. India was among the early adopters of spectrum auctions beginning auctions in 1994.
• A telecom company that wishes to offer services in any of the 22 telecom circles in India must purchase a Unified Access Services (UAS) license to operate that circle. Licenses are awarded by auctions.
• The UAS, introduced in November 2003, is valid for a period of 20 years, which can be extended by an additional 10 years once per license per circle.
• The first telecom spectrum auction in India was held in 1994.
• The government divided the country into 23 telecom circles and awarded licenses and spectrum to two operators per circle. In the four metro circles – Chennai, Delhi, Kolkata and Mumbai – the DoT fixed several prerequisites for potential bidders to meet in order to be eligible for the auction.
• The criteria included financial resources, reliability, and investment in research, as well as specific details such as rate of network rollout, pricing, quality, and competitiveness.
• In India allocating and managing spectrum has often been at the core of disputes between the operators and the state. India has, over time, moved away from the subjective administrative assignment to a market based auction mechanism to assign spectrum under what may be called a ‘quasi-property rights’ regime.
• This means that the operators’ rights to alienate the frequency are subject to various government-imposed limitations regarding trading, leasing and use.
• By 2016, the spectrum management regime in India had become much more flexible compared to the past. To a large extent these measures helped address the twin problems of transparency and scarcity in the market for spectrum in telecom.
• On the other hand, auctions created an unintended consequence. Spectrum acquisition increased costs to operators even in the face of significant competitive pressure from within the sector. It also triggered consolidation.
• The number of operators has declined from a peak of 12 operators per circle to an average of 5. In order to ease the pressure on operators the government is considering moderation of spectrum trading rules and regulatory charges.

Spectrum Allocation and Management

The advancement in new technologies and proliferation of wireless communications has made spectrum management and allocation a critical task.

Governments and regulators have to balance the twin objectives of resource mobilization and public welfare.

The three basic models for regulating spectrum are

• a command and control model
• a market-oriented model or
• a generic licensing or common use model

Types of Spectrum Auctions

• Since 1990s, auctions have become the preferred method of assignment in several countries. However, auction design is also at the center of academic debate.
• The choice of auction format is crucial since it can influence auction outcomes as well as the resulting competition.
• The popular auction formats include simultaneous multiple-round ascending auctions (SMRA), sealed bid auctions and combinatorial clock auctions (CCA).
• In SMRA, the most established auction format, related lots are auctioned simultaneously in a sequence of rounds. One of the primary drawbacks of SMRA is the existence of ‘aggregation risk’ i.e. a bidder may end up with certain superfluous blocks of spectrum.
• The CCA is a variation of SMRA in which bidders bid on packages. It is a complex design that addresses the risks of SMRA while building on its strength.
• The sealed bid auction permits regulators to include non-financial criteria in the selection process but it does not permit a bidder to see how spectrum is being valued by other auction participants.
• In fact in large markets with many bidders and regional licenses there may not be a single optimal auction design.
• It is imperative that auction design considers the local circ*mstances to achieve policy goals.

Challenges for Spectrum Auctions in India

Low fiberization:

• Currently, 34% of the mobile towers are fiberized and the government wants this number to increase to 70% by the end of the 2023-24 financial year.
• This is necessary to roll out 5G in an efficient manner and will also boost 4G services. But there are several challenges to achieving this, starting from the right of way (RoW) rules and approvals to lengthy and complicated bureaucratic procedures and lack of skilled manpower.

Bidding intensity:

• The base price reduction is positive news but not enough to give breathing space for an effective rollout and expansion of 5G services in the country.
• Considering the financial stress of the operators and their inability to raise tariffs to more profitable levels due to fierce competition, keeping a high base price will adversely impact participation.
• It may be noted here that Vodafone Idea is yet to attract noteworthy funding and is continuously losing subscribers to Airtel and Jio. This may result in muted bidding intensity and the auction process may become a battleground for only two operators — Jio and Airtel.

Trends in 5G Auctions

• With 24.5 million people expected to be subscribed to at least one 5G service by the end of 2021 and an astounding 1.1 billion by 2025, the next generation of mobile services is likely to transform consumer experiences and business utility across the world.
• The successful rollout of 5G services relies on timely access to the right amount and type of spectrum. Spectrum in the frequency range 3300 to 4200 MHz is likely to emerge as the primary band for 5G.
• A total of 45 countries are either formally considering introducing certain spectrum bands for terrestrial 5G services, holding consultations regarding suitable spectrum allocations for 5G, have reserved spectrum for 5G, have announced plans to auction frequencies or have already allocated spectrum for 5G use.
• Of these, sixteen countries have announced formal plans for allocating 5G suitable frequencies by the end of 2020 and thirteen countries have announced formal plans for allocating technology-neutral frequencies between now and the end 2020.

5G Auction in India

• Market leader Reliance Jio has emerged as the most aggressive bidder, followed by second ranked Bharti Airtel, with cash strapped
• Vodafone Idea bidding for 5G airwaves in its priority circles. New entrant Adani Data Networks is said to have bid for 5G airwaves in the 26 GHz band to be used for its captive private networks.
• The auctions over the last few days was driven by intense bidding for 1800 MHz airwaves in the key Uttar Pradesh (East) market.
• The per unit price of 1800 MHz spectrum in UP-East circle jumped to Rs 160.57 crore — almost 76.5% higher than its Rs. 91 crore per MHz base price. The current auction price for 1800 MHz in the circle is also well above the Rs. 153-crore per MHz base price of the March 2021 sale.
• Analysts estimated that Jio’s aggregate spectrum buys is upward of Rs. 84,500 crore, while Airtel’s were estimated above Rs. 46,500 crore. Vodafone Idea’s spends are pegged over Rs. 18,500 crore, while Adani is said to have spent Rs800-900 crore.
• The mop-up from the 5G spectrum, capable of offering ultra-high speed mobile internet connectivity, is almost double at Rs 77,815 crore worth 4G airwaves sold last year and triple of Rs 50,968.37 crore garnered from a 3G auction in 2010.
• Reliance Jio was the top bidder to the airwaves capable of offering speeds about 10 times faster than 4G, lag-free connectivity, and can enable billions of connected devices to share data in real-time. It was followed by Bharti Airtel and Vodafone Idea Ltd.

Conclusion

• Designing spectrum auctions are always fraught with risk. The over reliance on reserve prices may not necessarily yield successful market outcomes.
• There are several other factors that influence auction outcomes such as bidder turnouts, market conditions and choice of auctioning agent.
• The auction design is also crucial. India currently follows a Simultaneous Multi-Round Ascending Auction (SMRA) which, while providing the option of price discovery, also poses an aggregation risk.
• Many countries use a combination of formats for auction of spectrum. A cookie cutter approach may not always work.
• Spectrum auctions in India should try to balance transparency in allocation and revenue expectations for the government.
• Setting high reserve prices could actually reduce government revenue and stifle sector growth. Building trust between operators and government is crucial for the long run viability of the sector. This deficit needs to be bridged, now.

• India’s telecom industry needs an action plan that simultaneously sees the development of the entire ecosystem. Striking a balance between revenue generation through spectrum auction and long-term sustainability of the telecom sector is crucial.

• The potential of what 5G technology has to offer is unprecedented. The policymakers, operators, hardware vendors and enablers should solely focus on the advancement of the technology and the proliferation of one sector should not come at the expense of the other.

Karvy Demat Scam came under public glare in the second half of the year 2019. The regulatory authorities faced a tough time as the embarrassing shortfalls on the part of SEBI’s scope of supervision was the highlight news for the rest of the year. Karvy Stock Broking Ltd (KSBL) is a Hyderabad based stock broking firm who pledged securities lying in the Demat accounts of its clients, without their permission and raised money from multiple banks and financial institutions. This is not the first time that India has witnessed stock market scams. But the Stock broker himself doing the scam has shocked many investors.

To raise a loan from the bank, customers need to submit collateral as security. Higher the amount of loan higher would be the collateral value. This collateral can be stocks also. The investor can pledge the stocks in the bank and raise a loan against it. Just like individuals hold Demat account, brokers have a pool account. The pool account is known as Broker’s Demat Account.

When you buy or sell a share, shares get credited in to your account from the opposite seller or buyer. It first goes into the broker’s pool account and from there it comes to your Demat account. Now, suppose you want to get a loan against your shares. Then, those shares are transferred into the broker’s pool account, and brokers gives it to the banks. Banks issue loans to the broker against the shares submitted to them as collateral. The broker increases the interest rate and passes the money borrowed to the individual whose stocks are submitted. The difference between the two interest rates is the brokers’ profit. Now this is where Karvy Stock Broking Ltd swindled the investors.

Let us understand the Karvy Saga in detail…

Karvy Stock Broking Ltd- Incorporation and Services Provided

Karvy Group was established in the year 1983 and was headed by C. Parthasarathy as Chairman.[2][3] The group at one time had more than 30,000 employees, spanning 900 offices in about 400 cities and towns. Karvy Group was established in the year 1983and was headed by C. Parthasarathy as Chairman. The group at one time had more than 30,000 employees, spanning 900 offices in about 400 cities and towns. Karvy Stock Broking Limited is a Non-govt company, incorporated on 30 Mar, 1995. It’s a public unlisted company and is classified as company limited by shares. Company is registered in Hyderabad (Telangana) Registrar Office. Karvy Group is a financial services company in India. It was involved in providing financial services like equity, commodities trading, depository and wealth services and distribution of other financial products. Besides this it also has branches in Bahrain, Dubai, Malaysia, Philippines and the United States.

The Karvy Demat Scam

Karvy Stock Broking Ltd was one of the leading stock brokers in the country with millions of clients. The scam was done by taking advantage of the loopholes present in the system. The first question that comes to our mind is how investors stocks can be pledged in bank without their knowledge ?? The Power of Attorney gives the authority to the brokers. Shares are stored with NSDL and CDSL who are two depositories in India. They work to keep shares safe in the customer’s Demat Account in Electronic form. NSDL and CDSL gives weekly or monthly reports to the account holders about all the transactions done. Here Karvy Stock Broking identified those accounts which were not very active and some of the investors who buy shares do not bother to check the accounts for more than 2 years. Karvy transferred some of the dormant account shares to its own Demat Account named Karvy Stock Broking (BSE) and showed these stocks as its own securities to lenders as collaterals for taking loans.

The company had sold excess securities worth Rs 485 crore through nine related clients till 31 May 2019. They further transferred excess securities worth Rs 162 crore to six of the nine related clients until 31 May 2019. Later, it tried to repurchase the securities worth 228.07 crores to cover up for the shortfall between June – September 2019. An amount of 1096 crore was transferred to its group concern Karvy Realty Private Limited during the period of April 2016 – October 2019.

The Scam Exposed

On June 20, 2019 markets regulator SEBI came out with a circular on handling client securities which said that brokers could not pledge client securities to raise loans for themselves which till then was an established market practice. SEBI had set a deadline of September 30,2019, for brokers to segregate client funds and securities but when Karvy Stock Broking Limited failed to do so by the given deadline, investors complained to SEBI, which then asked NSE to investigate the matter.

The scam then came to light after a limited purpose inspection of KSBL conducted by the NSE in 2019 revealed that KSBL had not revealed a DP account and credited the funds raised by pledging of client securities to 6 of its own bank accounts instead of the stock broker client account. SEBI found out that Karvy had defaulted Rs. 2000 crore of investor funds by pledging the securities holdings of its customers.

Actions Taken By Regulatory Authority

On November 22, 2019, SEBI issued an order banning KSBL from broking services and said the firm had transferred Rs 1096 crore to group company Karvy Reality between April 2016 to October 2019. SEBI also asked NSE to conduct a detailed forensic audit and instructed to quickly transfer some of the illegally transferred securities back in to accounts of investors. In January 2020 the Union Corporate Affairs Ministry also ordered the Registrar of Companies (ROC) Hyderabad to probe Karvy Group Financial Fraud. The Enforcement Directorate attached fresh assets worth Rs 110 crore in connection with the money laundering probe against Karvy Stock Broking. Also the Enforcement Directorate arrested C Parthasarathy Chairman and MD and G Hari Krishna CFO of the Karvy Group for the Rs 2000 crore scam. The ED started money laundering investigation based on the FIR filed by HDFC Bank with CCS Hyderabad Police under various sections of IPC for defrauding HDFC Bank.

Investor Compensation

In December 2019 soon after the scam to light, SEBI worked with DPs and stock exchanges to transfer securities of nearly 83000 out of the over 95000 scam hit KSBL clients from Karvy’s Demat account back into their respective accounts. In November 2020, NSE said it had settled claims worth Rs 2300 crore to around 2.4 lakh KSBL Investors. SEBI then instructed to auction off KSBL Demat accounts to IIFL Securities and trading accounts were auctioned to Axis Securities in order to compensate the investors.

Nearly three-and-a-half years after the Karvy Stock Broking (KSBL) scam came to light SEBI ordered to ban the stock broking firm as well as its promoter C Parthasarathy from the stock market for seven years. The market regulators also slapped a penalty of Rs 21 Crore a fine of Rs 13 crore on KSBL and Rs 8 crore on Parthasarathy. SEBI has restrained Parthasarathy from holding the post of director, key managerial position or associating himself in any capacity with the listed public company for period of 10 years.

SEBI has also ordered Karvy Reality (India), or KRIL, and Karvy Capital(KCL) to return the nearly Rs 1,443cr. diverted to them to KSBL within a period of three months. If case of failure to return the money, the markets regulator has directed theNSEto take control of KRIL ..

Karvy Scam- Who Should Be Blamed??

The repercussions of the stock market scam is not felt immediately but the extent of damage to the stock market could adversely affect the Indian economy, already reeling a slowdown and also inflationary pressures. Investors are always suggested to invest through trusted brokers who are genuine and will guide to invest properly. But when the Brokers themselves do such fraud , will the investors ever trust the Indian Stock Market ?? Or the Regulators Need to be more vigilant enough to stop the scam happening at the beginning itself. Rs 2300 crore fraud done was hard earned money of the investors.

Banks who lend funds to the Stock brokers are also the funds of the investors who trusted banks for their funds. At the end it is the investor who suffer due to the Fraudsters. Here there are lot of questions which were unanswered as to how the entire scam happened and how the regulators became negligent. SEBI has fined NSE and BSE for their laxity in detecting the fraud and client securities misued by Karvy Brokers.

System will always have a loophole and there are number of fraudsters who have greed for money. The only way to protect the investors from such scams is to have strict laws and punishments for breaking the rules and instructions and a transparent system where audits are conducted on a regular basis to have a check on all the transactions that happen.

Points Investors Should Remember for Demat Accounts

• Ensure payouts for your funds are received within 1 working day of the payout date.
• Do not keep securities idle and dormant. Keep a track of the same frequently as possible.
• Exercise caution when lending the power of attorney to your broker. As per the latest SEBI rules, it is not mandatory to give the power of attorney to your broker.
• Keep changing or updating dematerialized account passwords regularly.
• If you sense something might be wrong, immediately inform the stockbroker and authorities so that quick action can be taken to ensure the safety of your mutual funds.
• Remember to keep your correct contact details like email address and phone number up to date.
• Keep track of SMSes, email newsletters and monthly statements sent by the broker or broking firm.

Sachin Bansal –The founder of “Flipkart” and “Navi Group” is a true entrepreneur who has a vision to find solutions to problems and also he has set an example that if one is determined to do something big nothing can stop them. But to do so he himself faced lot of problems and difficulties. As said Success may not be as excited as you thought. It is a package not just only shinning part. So is the story of Mr. Sanjay Bansal. Let us have a look at his Success Story in detail

Who is Mr. Sachin Bansal??

Sachin Bansal is an Indian Entrepreneur known as Flipkart Founder. He and his co-founder Binny Bansal started an online book store in the year 2007 named Flipkart with an initial capital of ₹4,00,000. They started their initial operation in Koramangala Bangalore. Sachin Bansal was born in Chandigarh on 5^th August 1981. His father is a businessman and mother is a homemaker.

Early Life and Education of Mr. Sanjay Bansal

• Sachin Bansal had completed his schooling from Saint Anne’s Convent School. He was a scholar and scored well in his exams. He was a propitious student and his family believed in providing good education. He worked very hard for JEE preparation and went on to stand 49 in All India JEE rankings. Later he got into Indian Institute of Technology, Delhi. At one point in time, he wanted to be a professional gamer. Sachin Bansal soon graduated from computer science engineering and became a software engineer.

Career

• After completing engineering from IIT, Delhi; Sachin started working for Techspan Company. Bansal served there for few months until he got an opportunity to work at Amazon India as a Senior Software Engineer.
• At Amazon, he learnt the dynamics of e-commerce. Later, his friend Binny Bansal also started working in the same team. Within the timespan of around 6 months, both of them decided to quit their job to discover the possibilities of e-commerce in India.

The Flipkart Story

• In 2007, Sachin and Binny first thought of creating a comparison search engine. At that time, they saw a huge gap in the e-commerce sector in India and quit their job at Amazon Web Services to establish their e-commerce site, Flipkart.
• Initially, they set up their venture with an investment of Rs 400,000 and Flipkart started its journey by selling books. Because at that time it was not easy to find vendors of electronics, fashion, or household items in India. Even book vendors could not completely put their trust in an Internet-based service like Flipkart in the beginning.
• At that time Sachin Bansal took charge as the CEO of the company. In 2008, the company started operating with an office in a two-room apartment in Bangalore and gained popularity among book readers.
• Flipkart’s popularity began to catch the eye of investors and in 2009, the company was able to secure a capital of $1 million capital investment from an investment firm, Accel Partners. At that time, the company had a staff of over 150, and a total of three offices across India.
• At the end of that year, they were able to sell books worth a total of Rs 40 million. Although Indian consumers at that time did not feel comfortable shopping online, Flipkart was able to gain the trust of customers by providing 24/7 customer support. In 2010, Tiger Global invested $10 million in Flipkart, and the company acquired the Bangalore-based social book discovery service “WeRead“. After the popularity of book sales picked up, Flipkart started selling mobiles under the electronics category.
• As the company did not achieve the desired success in it, they implemented cash on the delivery system for the first time in India. As a result, the company was able to gain the trust of consumers and Flipkart’s sales growth continued to grow.
• At the beginning of Fiscal Year 2011, their revenue stood at Rs 750 million, and in the same year, they acquired a digital content platform,Mime360. Flipkart, in the same year, officially registered their company since at that time the regulations did not allow 100% Foreign Direct Investment (FDI) to an online retail company providing multi-brand goods and services.

Walmart Enters as the New Owner

• Everything was going well for Flipkart, but in 2016, Sachin Bansal was forced out of the position of CEO by the investors because of some poor decisions made in the past, making Binny Bansal the new CEO. Sachin was not happy about this as he was also forced out of the operations.
• In 2018, Walmart offered Flipkart to buy their majority stake. Sachin felt that this deal would be good for them because it will help them grow Flipkart more.
• Sachin wanted to work in Flipkart, he had bigger plans. He felt he would be able to give an exit to some of his investors and would also be able to buy back some of his stakes in Flipkart so that he can take up the position of CEO again as Binny didn’t want to be the CEO. But the deal backfired.
• Investors were not happy with Sachin’s terms. At one point, Sachin even refused to sign the deal. But the deal happened, and as a part of it, only one co-founder could be working with Flipkart after the Walmart acquisition, so they chose Binny.
• Sachin had to quit Flipkart and sell all his shares to Walmart. Initially, Walmart was only going to acquire 55%, but after this, Walmart bought a 77% stake in Flipkart for $16 billion in 2018.
• Sachin exited Flipkart as a Billionaire but he wasn’t happy as his dream was to grow Flipkart and make it a $100 billion company.
• 6 months later, Binny Bansal also left the company after an allegation of serious personal misconduct was made against him, which he strongly denied.
• Sachin took a break for some time and bounced back in 2019. He founded BACQ acquisitions Pvt. Ltd. with one of his batch mates Ankit Agrawal from IIT Delhi. Ankit had the experience of working in the banking sector. He previously worked at Deutsche Bank and Bank of America. They invested in startups that they believed in through BACQ
• Sachin had big plans. They rebranded BACQ as Navi; the Hindi word for New. They wanted to make Navi a full-fledged fintech company, and instead of focusing on just one thing, they wished to provide a wide range of products and services.
• What was unique about them is that, unlike any other fintech startup, they focused on adding value to their customers through their offerings. They hoped customers would come of their own volition.

What does Navi Technologies Do??

• It offers a comprehensive suite of financial services solutions under the Navi brand including personal loans, home loans, general insurance and mutual funds in a digital-first manner.
• The personal loan business was launched in April 2020 and it extends instant personal loans of up to Rs 20 lakh with tenors of up to 84 months through an entirely digital Navi App-only process.
• Since its launch and up to December 31, 2021, the company disbursed 4.81 lakh personal loans totalling Rs 2,246.31 crore. As of December 31, 2021, its personal loans business had an AUM of Rs 1,418.7 crore.
• The home loan business was launched in February 2021 and as of December 31, 2021, the company had disbursed 604 home loans across eight cities in India with an average ticket size of Rs 38.6 lakh. The AUM of the home loan business was pegged at Rs 177.71 crore as on December 31, 2021.
• Navi Technologies launched its general insurance business through the acquisition of DHFL General Insurance in February 2020. During the nine months ended December 31, 2021, its gross written premium (GWP) was Rs 66.76 crore, of which Rs 6.33 crore was from the retail health insurance segment.
• It issued a total of 2.21 lakh insurance policies during that period of which 27,800 were retail health insurance policies. Share of retail health insurance policies rose to 15.70 per cent during the quarter ended December 31, 2021 from 4.14 per cent during the quarter ended June 30, 2021.
• Navi Technologies commenced its asset management business through the acquisition of Essel Asset Management Company in February 2021. Its first passive fund – Navi Nifty 50 Index Fund – launched in July 2021 had an AUM of Rs 167.32 crore as on December 31, 2021. Since the launch of the business, it has filed for 17 new passive funds with the Securities and Exchange Board of India (SEBI).
• Lastly, the company offers microfinance loans through its subsidiary, Chaitanya India Fin Credit Private Limited, which was acquired in March 2020. As on December 31, 2021, its microfinance business had a closing AUM of Rs 1,808.9 crore.
• Meanwhile, the company had also applied for a universal banking license with the RBI, which will enable it to offer a wider range of financial products and services.
• Navi Technologies currently operates as a holding company with 10 subsidiaries, but its flagship has been Navi Finserv since the group introduced digital personal loans in June 2020. While Navi Finserv primarily focuses on loan products such as personal, vehicle and home loans, CRIDS (rebranded as Chaitanya India Fin Credit) is also registered as an NBFC with the RBI and specializes in microfinance.

Disaster Hits Bansal Again

• Navi became a full-fledged NBFC and showed growth in revenue as well. From a revenue of ₹199 crores with a loss of ₹8.07 crore in FY20, their revenue went to ₹779 crores with a profit of ₹71.2 crores in FY21.
• They were profitable, and Navi was planning for itsIPO to raise capital. This time Sachin didn’t simply opt for raising funds through a VC instead, he chose to launch the IPO because he didn’t want to lose his company again.
• He had faced the consequences once, which is why he owns 99.77% of Navi. He has invested more than ₹4000 crores in Navi till now, that’s more than half of his net worth. He believes in what he is building. This could have been the ‘happy ending’ for him! But, no no.
• Everything was going well for Sachin and Navi. IPO was in the pipeline, but in July 2021, after years of quitting Flipkart, suddenly India’s financial crime agency; Enforcement Directorate, asked Flipkart, Binny Bansal, and Sachin Bansal to explain why they shouldn’t face a fine of $1.35 billion for alleged violations of foreign investment laws between 2008 and 2015. This issue was not new; it started back in 2012.
• Flipkart was accused of allegedly attracting foreign investment and running a subsidiary, WS Retail, which also sold goods on Flipkart and covered 30-40% of the total sales on Flipkart in 2016.
• Sachin and Binny founded WS Retail before Flipkart became a marketplace, so they were not breaking any rules at that time, but when they raised funds from investors while WS Retail was still in operation and made the majority of the sale on their platform, that’s where a line was allegedly crossed, and violation of the law happened. Flipkart cooperated completely when this investigation launched, but after years of Sachin exiting Flipkart, the issue came to light again.
• Sachin responded that he is no longer a part of Flipkart and, therefore, he’s not liable to pay any charges. The case is still going on, along with 6 other cases on Sachin across different cities.
• People from Delhi and a few other cities also started receiving messages from Navi that their loan is approved with their PAN no. written in the messages without any masking. The people receiving these messages had never used Navi in their lives. This issue became so big that theRBIstepped in.
• Many people also tweeted about it. On 17 May 2022, RBI declared Navi as not-suitable for Universal Banking License in a press release.

Lessons we can learn from Mr. Sachin Bansal

1. Craft Your Passion:

From Chandigarh, Sachin quit his job at Amazon to go for entrepreneurship, which nobody at the time of 2007 would dare to choose because it was a struggling time for internet-based spaces. Worse the global crisis hit just the year after. After early disagreement with parents, he started up in a two-bedroom apartment in Bangalore. What many called an impractical dream is a reality reality with a net worth of $1.3 billion. An example to learn from for those who started at the bottom. A true leader climbs up a staircase one step at a time and emerges top.

2. Find a Passionate Co-founder

Starting-up is arisky game. Find a co-founder who shares same passion as yours. Having diversity is necessary for a business. Take it from the Bansal founders who put together two different opinionated minds and created something this big.

3. Success Can Be Slow

Dream high but success is something that must be earned over time. If you are not ready to invest time, don’t even think about going forentrepreneurship. If Sachin Bansal were to set up an e-commerce platform and to think of scoring big immediately, then Flipkart would have never gone on to become the country’s first and the biggest? It took him 6 years to establish a brand.

4. Be Customer Reliable

Sachin knew only customers would decide their fortune. Instead of depending on third party logistics partners, they formed their – called e-kart, through which a lot of newly initiated services like cash on delivery, returns management, try-and-buy in fashion became easier to provide.

5. Experiments

When in growth, never fear to experiment. After the first three years of selling only books, it was time for Sachin to expand into other products too. Later in 2014, Flipkart acquired Myntra for clothing and fashion. Don’t stick to original plan if your calling grows your appetite.

6. Challenges As Lessons

Whenever he was in danger, he looked at thechallenges as opportunities. According to Sachin, this is the biggest trait any businessman should have, a quality that made him what he is today.

The Bottom Line

Sachin Bansal’s journey with Flipkart transformed the Indian e-commerce landscape. Their commitment to customer satisfaction, innovation, and strategic decision-making propelled Flipkart to unprecedented heights. The success story of Flipkart remains an inspiration for aspiring entrepreneurs and underscores the transformative power of e-commerce in emerging markets. The story of our Indian e-commerce poster boy is rewarding but extremely challenging. Every time he tries to do something great and things start going well, it seems like something stops him by placing roadblocks in his way.

SpiceJet promoter Ajay Singh has submitted a bid – with Busy Bee Airways Pvt Ltd – to acquire the troubled Go First carrier. Under the terms of the offer, SpiceJet will be the operating partner for the new airline, and will provide staff, services, and industry expertise. The airline will hope to leverage established infrastructure and operational capabilities to achieve significant revenue expansion.

About Spice Jet

• The SpiceJet brand was born in 2004, but its air operator’s certificate (AOC) dates back to 1993 when an air taxi company owned by SK Modi partnered with the German flag carrier Lufthansa, which was keen to capitalize on India’s recently liberalized aviation industry.
• Together, they created MG Express, which went on to operate passenger and cargo services under the name ModiLuft. ModiLuft took to the skies in May 1993, flying a Boeing 737-200 on lease from the German airline, and as India’s first major joint venture, expectations were high.
• However, rifts between the two owners over the airline’s finances ultimately caused ModiLuft to cease operations in 1996. The AOC, however, remained dormant.

SpiceJet’s early years

• In 2004, the entrepreneur Ajay Singh drew up plans to create SpiceJet, one of India’s first low-cost carriers. Instead of following the lengthy processes from scratch, Singh found a much quicker way to get his airline off the ground and purchased ModiLuft’s AOC, renaming the carrier SpiceJet.
• SpiceJet’s first flight departed from New Delhi (DEL) to Mumbai (BOM) on May 24th, 2005, using a leased Boeing 737-800. The airline’s choice of aircraft set it apart from its fellow low-cost competitors, IndiGo and GoAir (later known as Go First), both of which opted for the Airbus A320 family.
• SpiceJet operated its 737-800s with a maximum capacity of 189 passengers in an all-economy class configuration. This gave the airline a significant cost advantage over the likes of Air India and Jet Airways, and by 2008, SpiceJet had grown to become one of India’s five largest carriers.
• In 2010, SpiceJet ordered a further 30 737-800s and 15 DHC Q400s to support its ambitious expansion plans. However, as a result of operating in a highly competitive market while facing rising oil prices, the airline began to rack up losses in 2012. By 2014, SpiceJet was just days away from bankruptcy.
• Yet by 2015, SpiceJet’s recovery was well underway, boosted by the presence of Ajay Singh. As Managing Director, Singh helped to guide the airline through troubled times and back into profit. In 2017, SpiceJet sealed its commitment to the 737 MAX with an order for 100 examples of the type. However, only 13 were delivered before the aircraft was grounded in 2019.

On Going Recovery

• In a post-pandemic world, SpiceJet is rebuilding itself again, much like it did back in 2015. While its market share has decreased, it is performing much stronger financially and recentlyposted a $24.5 million profitfor Q1 2023, benefiting from increased passenger demand.
• Today, SpiceJet operates 58 aircraft, including eight Boeing 737-700s, 14 737-800s, nine 737 MAX 8s, three 737-900ERs, and 24 DHC 8-Q400s. Back in 2021, there were reports of the airline planning to take on two 777s from Boeing as compensation for the delays in the 737 MAX deliveries, although this did not come to fruition.
• SpiceJet has an outstanding order for 129 737 MAX 8s, which will help the airline reclaim its stake in the rapidly changing and highly competitive Indian aviation market.​​​​​​ The carrier has also expanded its international route network, which today includes Dubai (DXB), Bangkok (BKK), and Jeddah (JED).

About Go First

• The Go First budget airline`s owners — the Wadia Group — filed voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT) sending shockwaves through the entire airline industry.
• Go First was plagued by a peculiar problem — the purported failure of the jet engine manufacturer, Pratt & Whitney, USA, to supply engines/spares for its aircraft that grounded nearly 40 percent of the fleet for several months before it was compelled to totally suspend operations from the first week of May 2023.
• While the DGCA slapped a show-cause notice on the carrier for its abrupt actions that created havoc with thousands of flyers, Civil Aviation Minister Jyotiraditya Scindia seemed sympathetic to Go First grappling with the engine problems. While assuring that the government was helping out as best as possible, Scindia also called upon Go First to make alternative travel arrangements for its flyers to avoid inconveniencing them.
• According to Go First the application under the IBC came after the “ever-increasing number of failing engines supplied by PW” which led to the grounding of around 25 of its 61-strong Airbus A-320neo aircraft, or almost 40 percent of its fleet by April 30, 2023. Go First said in a statement that the groundings due to faulty PW engines increased from 7 percent of its fleet in December 2019 to 31 percent in December 2020 and 50 percent in December 2022, and blamed PW for giving assurances but failing to meet them.
• In view of this, the beleaguered carrier suffered a whopping loss of nearly Rs 10,800 crore and even demanded Rs 8000 crore as compensation from the PW which could help Go First to meet its financial commitments/obligations. Besides, Go First had also coughed up Rs 5,657 crore to its lessors in the past couple of years comprising Rs 1,600 crore as lease rent for the non-operational grounded aircraft.
• Go First was also hampered by the PW reportedly not honoring the March 2023 award of the Emergency Arbitrator in Singapore to immediately provide the airline with at least 10 serviceable spare leased engines by April 2023 and 10 more per month till December 2023 to enable the carrier to resume full operations, financial rehab and survival.
• An aviation official said that after the NCLT processes the Go First application, it could appoint an interim Resolution Professional to take over and re-start operations, adding that a similar exercise in 2019 with another grounded private carrier failed to take-off.
• Though Go First`s promoters have pumped in around Rs 3,200 crore in the past three years, coming to a total investment of nearly Rs 6,500 crore, plus support from the government`s emergency credit line guarantee, all this failed to help as the airline kept incurring 100 percent of its operational costs and with a total loss of Rs 10,800 crores, it `succumbed`.
• In the NCLT plea, the 17-year-old airline which operated over 32 flights to 29 domestic and 10 international destinations, has sought several interim directions including restraining the lessors from taking back their aircraft, any adverse action by the DGCA, suppliers of essential goods-services, etc.
• Since launching low key operations in November 2005 as `GoAir`, Go First gradually climbed up to become the fifth largest private carrier, consistently profitable and expanding till the PW `engine troubles` started from December 2020, hitting its operations and forcing it to ground in May 2023.

Joint offer By SpiceJet and Busy Bee Airways

• Bankrupt carrier Go First, which is undergoing the corporate insolvency resolution process (CIRP), has received two bids—a joint offer by SpiceJet’s chairman and managing director Ajay Singh and little-known entity Busy Bee Airways, and the other by United Arab Emirates-based aviation company Sky One.
• Singh submitted the bid with Busy Bee Airways in his personal capacity and SpiceJet’s role, if the bid is successful, would be that of an operating partner, which would entail providing essential staff, services, and industry expertise. According to Registrar of Companies records, Busy Bee Airways is a Delhi-based company that was incorporated in 2017. The records show that the company currently has two directors, both of whom were appointed on December 25, around a week after SpiceJet expressed interest in bidding for Go First.

Impact on the aviation sector

• If Ajay Singh buys Go First with its bidding partner, it will be good news for flyers. With the grounding of Go First, SpiceJet’s financial challenges and teething troubles of Akasa Air which started last year, India’s aviation was consolidating with two top groups InterGlobe Aviation, which owns IndiGo airline, and the Tata Group which owns Air India, AirAsia India and Air India Express in addition to a 51 percent stake in Vistara.
• As smaller airlines struggle to stay afloat, nearly 90% of market share is controlled by just two entities. IndiGo has close to 62% market share while the Tata Group’s share totals to nearly 25%. Akasa Air has a 4.2% share while SpiceJet has close to 5%. Go First, before it was grounded, had a market share of more than 6%.
• IndiGo, the country’s largest airline, was the biggest beneficiary of Go First’s bankruptcy last May, an ET Intelligence Group report had pointed out in January. Between April and September 2023, the market share of IndiGo increased to 63.4% from 57.5%, Since then, however, its share fell by 160 basis points in November to 61.8%, according to the latest data published by the Directorate General of Civil Aviation (DGCA). During the period, SpiceJet’s share increased to 6.2% from 4.4% while that of Tata Group’s airlines including Air India, Air Asia and Vistara remained more or less stable at 26.5%.
• The report said intense competition is expected to make it difficult for InterGlobe Aviation, the owner of IndiGo, to gain market share in the medium term. Factors such as fund crunch, delays in delivery of planes and relatively weak balance sheets of rivals contributed to InterGlobe’s performance.
• SpiceJet, which was in dire need of funds, infused ₹2,250 crore in the middle of December through the issuance of warrants on a preferential basis. Besides, Akasa Air has resolved the issue of the shortage of pilots. In addition, the domestic aviation sector is in expansion mode and may add 150 aircraft over the next 12 months. That will be the highest capacity addition in the past four years. If Ajay Singh of SpiceJet buys Go First and creates synergies between the two airlines, it will increase competitive intensity further, which is sorely needed as an emerging duopoly in India is seen to be unfavorable to flyers in terms of fares, services and punctuality, just as a growing number of flyers need more healthy airlines.

Stock Market Index is an Index that measures the stock market which helps the investors compare the current stock level with past prices and calculate market performance. It is basically a statistical tool which helps to reflect changes in the financial market. It is an indicator that reflects the performance of a certain segment of the market or the market as a whole.

A stock market index is created by selecting certain stocks of similar companies or those that meet a set of pre-determined criteria. These shares are already listed and traded on the stock exchanges. Performance of the stock market is proportional to the performance of the underlying stocks and that makes up the index. So if the prices of the stocks goes up the index also goes up. So what are the types of Stock Market Indices?

• S &P BSE SENSEX
• CNX NIFTY (NIFTY 50)
• FINNIFTY

Let us understand what each index mean

• S & P BSE SENSEX

S & P BSE SENSEX is a free float market weighted stock market index of 30 well established and also financially sound companies listed on Bombay Stock Exchange. It was published on 1^st January 1986, is considered as the pulse of domestic stock markets in India. The base value of the SENSEX was taken as 100 on 1^st April 1979 and its base year as 1978-79. It was on 25^th July 2001 BSE launched DOLLEX-30, a dollar linked version of the SENSEX.

• CNX NIFTY (NIFTY 50)

The CNX Nifty is a flagship index on the National Stock Exchange of India Ltd (NSE). The index tracks the behavior of a portfolio of blue chip companies, the largest and most liquid Indian Securities. It includes 50 of the approximately 1600 companies listed on the NSE captures 65% of its float adjusted market capitalization and is a correct reflection of Indian Stock Market. It covers the major sectors of the Indian Economy and offers investment manager’s exposure to the Indian Market.

• FINNIFTY

In January 2021, the National Stock Exchange (NSE) launched Nifty Financial Services which is called as FINNIFTY. This includes financial institutions like banks, insurance companies, housing finance and other companies who offer financial services. This index includes certain number of stocks in different weights.

In this Article we will discuss in detail about FINNIFTY

WHAT IS NIFTY FINANCIAL SERVICES INDEX?

The Nifty Financial Services Index commonly known as FINNIFTY tracks performance of Indian Financial Services. It includes index of 20 stocks and stock weights are based on free float market capitalization. Its base value is 1000.

Free Float Market Capitalization= Shares outstanding * Price * IWF

Where,

IWF= Investible Weight Factors

A higher IWF is indicative of more shares under public shareholding listed. Financial entities are very crucial for the success and survival of the economy especially in countries like India where the economy is continuously undergoing changes. Banks lend to borrowers from the surplus savings. FINNIFTY basically aims to reflect the behavior of the above mentioned sectors and sub sectors in the economy. So in short it can be said that FINNIFTY is the symbol of Nifty Financial Services. In order to be included in FINNIFTY companies should be included in NIFTY 500. The weight of each stock is based on free float market capitalization factor.

LIST OF FINNIFTY STOCKS ALONG WITH WEIGHTAGE

FINNIFTY Contract and Settlement Process

The Nifty Financial Services Index Derivatives are settled in cash with expiry day being the last Thursday of the expiry month for the monthly contracts and Thursday of the expiring week for weekly expiry contracts. NSE is offering futures and options in 7 serial weekly excluding the monthly expiry & 3 serial monthly contracts.

Sectors Involved In FINNIFTY

Banks represent a weightage of 63.1% of FINNIFTY, 20.3% of Nifty 500 Index, and 100% of Nifty Bank Index. Insurance Companies hold 8.0 % weight in FINNIFTY, 2.5% in Nifty 50 and Nifty 500. These subsectors have more exposure by this index as compared to broad market indices and FINNIFTY gives more targeted approach when it comes to investors on the lookout for certain sectors.

Eligibility Criteria For Getting Listed In FINNIFTY

Only those companies are included in the Fin Nifty index whose average free-float market capitalization is 1.5X of the average free-float market capitalization of the smallest constituent of the index. No stock is given a weightage of more than 33%. Also, the weightage of the top three stocks cumulatively should not exceed 62% at the time of rebalancing, which happens semi-annually

How to Invest In FinNifty Stocks

The first step to invest in Fin Nifty stocks is to open Demat Account. Also before investing all necessary advice should be taken in to consideration. Investors cannot directly invest in the index. They can do through mutual funds schemes that has higher weightage and in order to buy FINNIFTY stocks the investor needs to buy the entire 20 stocks for which corresponding weights are mentioned.

Why Should One Invest In FINNIFTY

The primary advantage of investing in FINNIFTY is it brings down the non-systematic growth. Unsystematic risks include financial and business risks. Nonsystematic risk includes events such as strikes, rise in financial cost, and reduction in profit, drop in sales or even natural disasters. Diversification can reduce these risks to some extent.

Conclusion

FIN NIFTY Index has performed well with its diversified exposure to various sectors in the economy. It has so far provided returns up to 18.64%. FINNIFTY Index has performed better on CAGR point to point basis. For any investor the key point to remember is portfolio diversification and research. Understanding the basics along with the experience and patience can bring good returns. So in short we can say that FIN NIFTY has been performing very well and many investors are nowadays investing in these stocks.

Lenders Join Hands With Fintechs For Expanding Business

Banks have become serious about how they collaborate with fintech companies and derive the maximum value out of these partnerships. Acquiring a stake in the new-age companies is one way of doing it and banks are looking to go big on this.

What Are Banks And Fintechs ?

Fintech is a term used todescribe new technology that automates and improves the delivery of financial services. On the other hand, banks refer to financial institutions that are licensed to accept deposits from its customers and make loans.

Banks V/S Fintechs Which Is Better?

• Fintech fill a specific gap in the market – one left open by how slowly traditional banking changes. The main goal of these disruptive companies, and their drive towards innovation, is leveraging technology in order to meet the financial needs of customers and deliver experiences that can’t be found elsewhere.

• Banks, on the other hand, need to cater to a wide audience to function – their offers can be varied, but not niche – and a major concern of theirs, due to the critical role of banking, is risk management.

• Historically, banks have lagged behind Fintech companies in terms of personalization, customer experience and innovation. They are highly regulated institutions which provide stable, trustworthy services via a resilient business model.

• They are necessary to economic growth and the proper functioning of many modern societies. The Fintech industry rarely chooses to compete with that, and instead shifts focus to other areas, such as mobile experience, accessibility, contextuality and convenience. Their rising popularity is pushing customers’ preferences towards mobile banking and personalized finance solutions.

Fintech And Bank Alliances Are Not Just About Profits

• Collaborations between fintechs and financial institutionsdo more than just boost the bottom line. They deliver new solutions, meet changing needs and safeguard customers from potential financial risks.

• Bank and fintech collaboration also benefits the tech companies. They can expand into new markets while benefiting from the regulatory status of traditional banks. Continued collaboration and partnerships between fintech companies and banks are essential for the future of the financial services industry and the technology sector.

• The evolution of the way people manage banking and financial services also highlights one of the reasons why fintechs and banks should work together.

An Overview

Over the years, the partnership between banks and fintech players has become stronger, thereby, accelerating financial inclusion, while cutting-edge technologies, such as Artificial Intelligence and Machine Learning, are helping out in quick digital adoption across the country. Small vendors, lacking their own bank accounts are able to seamlessly conduct digital transactions. Moreover, MSMEs in cash-dependent Tier-II and III markets, from grocery stores to neighbourhood hawkers, have been able to receive money digitally through UPI systems, QR codes, and payment apps.

In the bigger picture, the rise of innovative alternative lending platforms, brought by fintechs over the past years has enabled SMEs with no credit history or financial records to access much-deserved credit. With the advent of new-age technologies and digital tools apparatus such as AI, machine learning, and data analytics fintech companies now extend customised working capital solutions to the MSME sector, which currently faces a credit deficit of over Rs 16 lakh crore. Additionally, small businesses can now digitize their ledgers and cash flow management.

Examples

• In August 2021, HDFC Bank Ltd purchased a 5.2 percent stake in Mintoak Innovations, a digital payments platform, following up on the December investment of an undisclosed amount in small case technologies, another fintech start up.

• State Bank of India in June invested in payment gateway company Cash free Payments. ICICI Bank Ltd too has bought stakes in fintech start-ups, in February investing in digital payments firm City Cash and Thillais Analytical Solutions Pvt. Ltd.

• India’s largest public-sector lender State Bank of India (SBI) announced it was partnering with Adani Capital, a non-banking finance company (NBFC), to dole out loans to the farming community.

Conclusion

• Of late, banks have been actively exploring inorganic growth to widen their customer base through more offerings and solutions that would come from new-age fintech companies along with low-cost technology instead of building these solutions from scratch.

• Banks don’t want to end up being just a source of capital, they want to continuously evolve into an all-in-one hub of everything that a customer would want through such strategic bets.

• They might go ahead and acquire these fintechs in the future. For instance, Axis Bank’s acquisition of payments startup Free Charge in 2017 – the first acquisition of a digital payments company by a bank in India.

• Ayodhya Ram Mandir- The Temple of Justice through which 500 years of exile of Lord Shri Ram came to an end. The never ending Babri Masjid and Ayodhya Ram Mandir issues which led to Hindu Muslim riots was settled through Supreme Court and as per court verdict Ayodhya Ram Mandir got constructed on the disputed land of Ayodhya whereas it directed the State to grant the Sunni Waqf Board five acres in a “prominent” location in Ayodhya for the construction of a mosque.
• Every Hindu enjoyed the blissful moment when the Prime Minister Narendra Modi inaugurated the Temple on 22^nd January 2024 and did the consecration Ceremony. The amazing fact is that Ayodhya Ram Mandir is not just about emotions and justice but also revenue addition to the country at large as lakhs of tourists are predicted to visit the country for taking darshan of Lord Ram. Let us understand how this Beautiful Construction is going to Benefit Indian Economy.

Ayodhya Ram Mandir to Surge Tourism Industry in India

• As per the Foreign stock market research firm Jefferies, Ayodhya is likely to surpass Vatican City and Mecca in terms of the number of visitors. Notable, a day after consecration a massive crowd thronged the temple town and over five lakh devotees took darshan of Ram Lalla with an equal number waiting for their turn.
• Ayodhya is expected to attract around five crore devotees annually, making it a major tourism destination not only within UP but also in India. Over lakhs of devotees are expected to visit Ayodhya daily and the number could go up to three lakh a day as well. “If each person spends around Rs 2,500 during the visit, the economy of Ayodhya would be up by Rs 25,000 crore”, he said

Uttar Pradesh could see tax collections of Rs 5000 crore in 2024-25

• A day after consecration, the offerings to Ram Lalla was the tune of over Rs 3 crore owing to the massive influx of visitors to Ayodhya to have a glimpse of the deity.A recent paper by the SBI Research claimed that owing to the Ram temple and initiatives being taken by the state and central government in Ayodhya to catapult it into a major tourist destination, the state of Uttar Pradesh could see tax collections of as much as Rs 5,000 crore in 2024-25.
• A respectable leap taking the state nearer to the target of US$ 1 trillion economy. The report adds that Ayodhya will be the most important factor and with the anticipated growth in tourism, UP could become richer by about Rs 4 lakh crore this year
• An E-brochure by the Uttar Pradesh government, published in 2021 said that Besides constructing the grand Ram Janmabhoomi as a prominent pilgrimage destination, the government also plans to revamp Ayodhya Dham and Ayodhya. Approximately 178 projects worth up to ₹30,500 crore have been initiated to develop Ayodhya into a world-class city. Meanwhile, the state government aims to harness the potential of both foreign tourists and Indian nationals and “create a Ramayana circuit, with Ayodhya as the main hub”.
• The “majestic plan” to revamp Ayodhya includes the installation of 10 gates dedicated to Shree Ram, provision for underground cabling, and construction of a Rain Basera with an accommodation capacity of 10,000 people.
• Moreover, there’s a proposal to convert Ayodhya’s Raj Sadan into an upmarket heritage hotel. The government further plans to develop all major public spots and parks in the city to boost tourism. There are several reservoirs across the city, all of which hold special importance due to their connection with Shree Ram, and these will also be repaired and restored.
• The government also plans to connect the rest of the country with the thematic Ramayana circuit. $10 billion makeover of Ayodhya with a new airport, revamped railway station, township and improved road connectivity will likely drive a multiplier effect with new hotels and other economic activities.

Ayodhya has undergone a significant shift supported by infrastructure growth with the grand Ram temple inaugration

• The Ayodhya Development Authority (ADA) has initiated the installation process of 6-foot tall and 6-foot wide 3D and basic 4D illuminated laser-cut metal sculptures at various locations in the city. The installation of these artefacts will develop the streets of Ayodhya as an open gallery.
• Raja Dasharath Samadhi Sthal in Ayodhya has undergone a remarkable transformation in a bid to enhance the spiritual experience for tourists. There is also a plan to widen the road by 24 metres to reach the Raja Dashrath Samadhi Sthal. It will be connected to Navya Ayodhya. The construction work of about 13-kilometre-long ‘Rampath’ from Sahadatganj to Naya Ghat is in progress.
• Phase 1 of a new airport in Ayodhya has become operational and can handle 1 million passengers. Additional domestic capacity and an international terminal are expected by 2025 with a capacity to handle 6 million passengers. Moreover, chopper services will reportedly be started to Ayodhya from six districts – Gorakhpur, Varanasi, Lucknow, Prayagraj, Mathura and Agra
• The renovation of the Satsang Bhavan has been carried out, transforming it into a kirtan-bhajan venue at the Samadhi Sthal. Approximately 200 to 250 devotees can now immerse themselves in the ocean of devotional songs and hymns together at this place. The restoration work of more than 108 ponds has also started in Ayodhya.
• Battery-operated carts will be made available for devotees visiting Ayodhya to offer prayers at the Ram temple and the Hanuman Garhi temple. As many as 650 e-carts will be deployed till March in the first phase. They “will be available at the parking lots across the city.
• Uttar Pradesh Chief Minister Yogi Adityanath flagged off 50 electric buses and 25 green autos from the Ayodhya bus stand ahead of the Ram temple ceremony in January. The operation of electric buses will be initiated on the Dharma Path and Ram Path. Additionally, 100 electric buses will commence operations from January 15 onward. The convenience of golf carts and e-rickshaws will also be introduced.
• The UP government completed various restoration and development projects worth₹105.65 crore to enhance the beauty of Ram Ki Paidi, giving it a new and grand form. The UP government built the country’s largest floating screen at Chaudhary Charan Singh Ghat. It was to be installed at Aarti Ghat to show the Pran Pratishtha and related programmes.
• To facilitate the enjoyment of boating trips for tourists and devotees, the ‘Jatayu Cruise Service’ in the sacred Saryu river has been launched. The state government is also transforming the Ayodhya Dham railway station and it is being equipped with modern facilities.
• The widened Ram Path with uniform facades of buildings on both sides, ornamental lamp posts bearing a design representing the traditional ‘Ramanadi tilak’ and the 40 Surya Stambhs installed along Dharm Path and the Lata Mangeshkar Chowk are new tourist attractions in the city.
• There has been active participation of locals in providing homestay experiences to visitors. At present Ayodhya has around 17 hotels with 590 rooms. Up to 73 new hotels are in the pipeline, of which 40 are already under construction. While Indian Hotels, Marriott and Wyndham have already signed deals for hotels, ITC is exploring opportunities in Ayodhya. Oyo plans to add 1,000 hotel rooms in Ayodhya.

Ayodhya takes steps to become Solar City of India

• Ayodhya is being developed into a solar city to reduce its dependence on electricity. For the first time, a solar power-enabled e-boat was launched in a bid to make Ayodhya a “model solar city”. CM Adityanath had inaugurated the rooftop-mounted solar boat service at the Sarayu Ghat. The Uttar Pradesh New and Renewable Energy Agency (UPNEDA) has prepared the outline for the regular operation of this boat service in the Saryu river of Ayodhya.

The development of Ayodhya Nagri is based on 8 parameters

Following the directives of CM Adityanath, the development work is happening in Ayodhya based on eight concepts.

These eight concepts include making:

• Sanskritik Ayodhya:Ayodhya is to be developed as the cultural capital of India. As part of the plan, several activities are being carried out. These include establishing majestic monasteries, temples, and ashrams, constructing grand city gates, and undertaking projects like temple museums.
• Saksham Ayodhya:Ayodhya is being developed with an aim to create significant employment opportunities through daily jobs, tourism, religious, and cultural activities.
• Adhunik Ayodhya:This “holy town” of Ayodhya city is being transformed into a modern city with various amenities, with Initiatives like Smart City, Safe City, Solar City, and Greenfield Township.
• Sugmay Ayodhya:The Yogi government is making every effort to make Ayodhya easily accessible. Moreover, devotees can reach this sacred city conveniently through various routes. The plan includes the construction of Maryada Purushottam Shri Ram International Airport, the rejuvenation of Ayodhya Dham Railway Station or the work of connecting Saryu with the inland waterway.
• Surmay Ayodhya:The government aims to transform Ayodhya into an “enchanting city”. The initiatives include the beautification of various ponds, lakes, and ancient reservoirs in Ayodhya, the rejuvenation of old gardens, the construction of new ones, or even the enhancement of the city’s charm through heritage lighting systems that liberate the city from the entanglement of wires.
• Bhavnatmak Ayodhya:Every bit of Ayodhya should reflect the feeling of being connected to Shri Ram. Keeping this in mind, the city walls, roadsides and intersections are being culturally equipped.
• Swach Ayodhya:A clean Ayodhya is the top priority of the Yogi government. The initiatives to make the city clean range from cleanliness campaigns to the development of drainage and sewer systems.
• Ayusham Ayodhya:The health infrastructure of Ayodhya has already been strengthened to provide quality and convenience-based medical facilities to the patients.

Hotels in Ayodhya

• The hotel industry in and around Ayodhya is poised for significant growth following the opening of the temple to visitors. Anticipating an upsurge in tourism, the region is likely to experience a boom in the hotel sector as accommodations become increasingly sought after by tourists and pilgrims visiting the temple. Currently, the city has approximately 17 hotels with around 590 rooms. To meet the anticipated increase in tourist arrivals, 73 new hotels are in the pipeline, with 40 of them already under construction.
• Meanwhile, other luxury hotel chains likeIndian Hotels Co., ITC, Mariott, Lemon Tree, Trident, and Oberoi are also planning hotel openings in the area. ITC is opening a seven-star property, 12 km from the temple. Meanwhile, IHCL is building Vivanta and Ginger-branded hotels.

Railways

• The Ram temple city, Ayodhya, has witnessed enhanced connectivity through railways during the temple inauguration, with the operation of over 1,000 trains providing convenient access from major cities. Looking ahead, there are plans to introduce additional trains to further improve connectivity with Ayodhya, ensuring seamless transportation for visitors and pilgrims.

Tour operators

• Tour operators and travel agencies, including Thomas Cook (India) Ltd., EaseMyTrip, and RateGain Travel Technologies Ltd., are experiencing a notable uptick in inquiries and bookings from devotees interested in visiting the recently inaugurated temple.
• EaseMyTrip, in particular, is well-positioned to capitalize on the growing demand, as it anticipates a surge in bookings for various travel services such as air tickets, hotels, cabs, buses, and railway tickets in connection with the upcoming temple inauguration

Conclusion

• Travel and tourism have already generated more than 20,000 jobs in Ayodhya. Now, with increased tourism and a boost to the hospitality sector, the number is only expected to rise from here annually. Ayodhya will not be the only beneficiary city but neighbouring cities like Lucknow, Kanpur and Gorakhpur are also expected to witness a boom in local business.
• Not only the big business sectors like Hotel industries, tourism, restaurants,, construction’ transport, dairy and Agro products will be flourished but small traders who are selling varieties like flowers, fruits, drinks, Agarwood Alta ,Camphor, Ghee, etc. will be benefited. The creation of a new religious tourist centre as Ayodhya, with improved connectivity and infrastructure can create a meaningfully large economic impact.

Who doesn’t know the Ambani’s? Reliance one of the most profitable companies in India, is one of the largest companies in India in terms of revenue. Apart from this it is also the largest employer in India with more than 3, 00,000 employees.

But do you how the largest private sector company started its journey? Ambani brothers have set an example by one becoming the Asia’s richest Man while other going complete bankrupt. Today we will discuss about the Ambani brother which went bankrupt due to his poor decision making-Mr. Anil Dhirubhai Ambani.

Who is Mr. Anil Dhirubhai Ambani?

• Anil Ambani was born on June 4, 1959. He was born in Mumbai. His father is Mr. Dhirubhai Ambani and Mrs. Kokila Dhirubhai Ambani. Mr. Dhirubhai Ambani was an entrepreneur, Indian Businessman who founded Reliance Industries.
• He made Reliance Public company in the year 1977. He died in the year 2002. After his death the Reliance group was split among the two brothers i.e. Mukesh Dhirubhai Ambani and Anil Dhirubhai Ambani.

Anil Ambani Education and Early Life

• Anil Ambani completed his graduation in BSC from Kishinchand Chellaram College, Mumbai University and MBA at Wharton, University of Pennsylvania in the year 1983.
• He returned to India and joined his father in carrying out business as chief executive officer. After Mr. Dhirubhai Ambani suffered from stroke, Anil Ambani took in charge of day to day management of the company’s financial relationship under his father’s oversight.

Anil Ambani Family

• Anil Dhirubhai Ambani tied knot with Indian Actress Tina Munim in the year 1991 and they have two sons Jai Anmol Ambani and Jai Anshul Ambani. Anil Ambani has two sisters Nina Ambani Kothari and Dipti Ambani Salgaocar and one brother Mukesh Ambani.

Anil Ambani Biography

Business Career

• After the death of businesss tycoon Mr. Dhirubhai Ambani, there was will or plan about how the property will be divided among the sons.
• After the death of father, the two sons had lot of bickering and to solve this matter their mother Mrs. Kokila Dhirubhai Ambani decided to split the business between both of them.
• After the split, Anil Ambani received Reliance Group and also interests in entertainment, power, infrastructure, telecom and financial services. Also he was credited with the largest Reliance Power IPO in India.
• The IPO was subscribed to in less than a minute in the year 2008. It was the fastest ever subscription in the history of Indian Capital Market. It raised Rs 11,563 crores. The purpose was to set up 13 gas, coal and hydro power projects. But the projects required cheap gas which Mr. Mukesh Ambani was supposed to supply.
• Then Mr. Anil took special interest in entertainment industry and so he decided to make his debut with majority of stakes in Adlabs Films in the year 2005.
• This company worked in exhibition, production, film processing and digital marketing. After nearly four years in the year 2009, this company was renamed as Reliance Media works.
• Anil Ambani went forward with creating a joint venture between Ambani Media Works and DreamWorks which is a production company of Steen Spielberg. The aim was to make Ambani Media Works in to world platform.
• Ambani also did a production of some films produced by Steven Spielberg. One of the films it produced was Lincoln which won an Academy Award.
• In the year 2008, Anil Ambani was named by Forbes the sixth richest person in the world. His net worth at that time was estimated at US$42 billion. Subsequently Anil Acquired novel business such as power generation, financial services and telecom. Everything seemed to be like silver platter but later on Mr. Anil started facing hard times. Here life started giving Anil lemons without sugar and water.
• The power project never took a swing. The gas prices controlled by the Indian government used to sell it $ 4.2 per million British thermal units. Mr. Mukesh Ambani could not supply the gas at an agreed price of $ 2.34 per million mBtu as pledged to his family.
• This dispute went to the court where court stated that family agreements cannot be more important than the government policy for gas pricing. This way the power project experienced failure.
• Several projects for which debts were raised exceeded their stipulated time and this led to piling up of cost up to 1, 20,000 crores debt.

Reliance Communications Failed to honor financial obligations

• Reliance Communications in 2006 was second biggest telecom company in India. Anil Ambani had 66% stakes in it. Global System for Mobile Communications widely known as GSM, and Code Division Multiple Access (CDMA) are the two dominant technologies for mobile communications and among the two GSM is an advanced and flexible technology.
• Reliance Communications when entered in the communication business in 2002 opted for CDMA technology whereas the competitors used GSM and this where RCOM failed miserably. CDMA Technology was limited to 2G and 3G technology alone.
• Later RCOM got a big hit when Mukesh Ambani launched Jio 4G and after this RCOM got trapped in debts and two stuck in a price war. Ultimately Rcom in 2017 sold its wireless business to Aircel and in 2019 Rcom Cable filed for bankruptcy.

Reliance in Defence Sector

• Anil Ambani led Reliance infrastructure Limited had acquired Pipavav Defence and Offshore Engineering for Rs 2082 crore on 5^th March 2015.
• It was not aware of the fact that it was dealing with debt of 7000 crores. National Company Law Tribunal (NCLT) took legal action against Pipavav Defence by starting insolvency proceedings for its noncompliance to pay debt taken from Industrial Finance Corporation of India and Industrial Development Bank of India.

Dreadful Performance of Other Countries

• Reliance Capital showed dreadful performance. The financial debt of September 2019 was around 19,805 crores whereas Reliance Infrastructure had a debt of over Rs 5,960 crores for 2019. Reliance Capital has two subsidiaries namely Reliance Home Finance and Reliance Commercial Finance.

What Went Wrong for Anil Ambani?

1. Scandals

• CBI –Central Bureau of Investigation suspected Mr. Anil Ambani’s involvement in 2G Scandal. He was accused of setting up Swan Telecom to get 2G licenses. Anil Ambani had unpaid dues to be paid to Ericsson for services to Reliance Communications.
• Here Anil Ambani could have faced imprisonment for three months in case of non-compliance to pay dues of Rs 580 crore. Mr. Mukesh Ambani saved his brother by paying the money.
• The next was three Chinese Banks were Anil Ambani had dues. That included Industrial and Commercial bank of China Limited, China Development Bank and Exim Bank of China.
• He owes more than Rs 5,276 crores including legal costs following which the UK court filed an affidavit. This effected his reputation very badly.

2. Lacking Vision and Focus

• Reliance Power IPO which was oversubscribed 73 times and collected a huge amount, the per share price never returned back even near to the issue price. Roughly $ 9 billion of market capitalization went wiped out and billions of wealth of investors evaporated.
• Reliance Power was new to the market and the IPO was overpriced at Rs 450 which fell to Rs 372.50 and investors lost money in this deal.

3. No clarity for career

• Anil Ambani had craze for Bollywood and entertainment industry. And so he expanded his business in the entertainment domain by purchasing multiplex chains Adlabs from entrepreneur Manmohan Shetty in 2005 for Rs 350 crores.
• He later on became the largest multiplex owner with nearly 700 screens all over India. But as life showed lemons, Reliance Entertainment was piled up with debts and in consequence had to sell hundreds of screens.

4. Political Career

• In the political sphere, Anil Ambani was elected in 2004 to represent Uttar Pradeshstate in theRajya Sabha, the upper chamber of India’s legislature. He resigned in 2006 amid public controversy over members of parliament holding offices of profit.
• The controversy had forced the resignation ofSonia Gandhi, leader of theIndian National Congress, from the lower chamber only days earlier. Although Ambani was not accused of any wrongdoing amid the controversy, he cited his “firm view” that public servants should remain free from the possibility of controversy.

Anil Ambani Business today

• Anil owned business shrank and mergers happened. The merger was for reducing the piled up debt. The Reliance Power which was previously known as Reliance Energy Limited had a subsidiary, Vidharbha Industries Power which was later on taken over by Adani Group. It consequently received an overall rating of (ICRA) D, in issuer not cooperating category as of August 30, 2019.
• Reliance Natural Resources Limited (RNRL) was merged with Reliance Power. RNRL had a market cap of Rs 6883.64 as of 9th November 2010.
• Anil Ambani announced his resignation as director of Reliance Power and Reliance Infrastructure. He also had got seat in Rajya Sabha which later on he resigned.
• In the year 2020, Anil said in London Court “My net worth is zero after taking into account my liabilities. In summary, I do not hold any meaningful assets which can be liquidated for the purposes of these proceedings.”

Lessons We Can Learn from Mr. Anil Dhirubhai Ambani

Dhirubhai Ambani had a perfect rags to riches story whereas his son Anil Ambani had the exact opposite. Anil Ambani faced it all, struggling to pay off his debts. Here are few management lessons we should learn from his failure

1. Investment decision

• A good business man is the one who can take quick and correct decisions that too on time. Anil Ambani saw his downfall only because of his bad investment decisions. His investment in entertainment industry, choosing CDMA instead of GSM technology and criminal cases against him are all results of his bad investment decisions.

2. Cash Hungry Business

• Patience and Good relations is very important for an entrepreneur. Anil Ambani was prone to taking up capital guzzling projects immediately after the family split. But his decisions did not come out as per his strategy.
• His battle with his own brother Mukesh Ambani over the price of Gas landed him more in trouble. Anil Ambani’s habit of seeking legal recourse at the drop of a hat made him enemies outside his family too. He had several lawsuits for defamations and allegations against journalists.

3. Flashy Lifestyles

• Anil Ambani Loved Flashy lifestyles and he rarely managed his business at micro level. His brother took meetings for hours that too without any break. Anil Ambani had no clear vision of what exactly he wanted from his business.

Conclusion

• We can say if one has deep vision about business then even failures can be fought easily. You plan yourself and be ready with liquid funds enough to fight cash crunches.
• But Anil Ambani somewhere failed to understand his own business and he didn’t have any idea how to overcome the challenges.
• Today the companies under Mr. Anil Ambani may opt for insolvency. He has bought in his elder son Mr. Anmol as a director hoping to grab the opportunity that comes his way.

Indian Clearing Houses Rejected by Europe On October 31, European Union’s Financial Market Regulator European Securities and Markets Authority (ESMA) said it will withdraw recognition of six Indian Clearing Bodies or Central Counterparties.

These six Indian Clearing Bodies are

1. Clearing Corporation of India
2. Indian Clearing Corporation Ltd
3. NSE Clearing Ltd
4. Multi Commodity Exchange Clearing
5. India International Clearing Corporation (IFSC) Ltd
6. NSE IFSC Clearing Corporation Ltd

As per European Market Infrastructure Regulations Limited, a Central Counterparties in a third country can provide clearing services to European Banks only if it is recognized by ESMA.

So, Why Derecognition Drama by Europe?

• The decision to recognize came when there was no cooperation between ESMA and Indian Regulators which includes Reserve Bank of India, Securities Exchange Board of India and the International Financial Services Centers Authority (IFSCA).
• ESMA wants to supervise all Central Counterparties but Indian Regulators are not in favor of this decision.
• Well India is very much confident about its Management and have said clearly that these entities are robust and no foreign regulator has to inspect further.
• ESMA has said it will wait to defer the Withdrawal Application till April 30, 2023.
• This will give India and ESMA six months’ time to negotiate and come to a conclusion.
• SEBI seems to have reached a fair level of Understanding but RBI is still tough to deal with.

So here we all know the Reason behind the Tug of War.

But what we need to know is Why Clearing Houses are Important and what will be the impact of such DeRecognition.

Let’s understand the concept

Central Counterparties (CCPs)

• Central Counterparties has two main major Functions – Clearing and Settlement, – Guarantee the Terms of Trade.
• It facilitates Trading and works towards establishing efficiency and stability in the financial markets.
• It reduces Risk Related to the Counterparty and other risks like operational, settlement, market and Legal Risks.
• The Counterparty Clearing house or CCP is important in the trading world as it collects money from both the trading parties including the buyers and sellers which ensures that both parties will follow through the said agreement.
• The money collected is enough to cover the potential losses in case any party fails to follow through the contract.
• Therefore, Central Counterparty Clearing house or CCP is an important factor in the trading industry, which helps to determine and guarantee the terms of the trade even if one of the trading parties which includes the buyers and the sellers, fails to follow through with the initial contract or agreement made between them.
• A CCP is authorized by the RBI to operate in India under Payment and Settlement Systems Act, 2007.

So How Will this Decision Impact European Banks in India

• As per the decisions these TC-CCPs will not be able to provide services to the clearing members and trading venues established in European Union.
• Some of the Major Banks dealing in the domestic forex, forward, swap and equities and commodities markets include Societe Generale, Deutsche Bank and BNP Paribas.
• The DE recognition will impact these lenders as they will not be able to provide clearing and settlement facilities to their clients.
• They will also have to set aside additional capital to trade in the domestic market, reports suggest. Of the total foreign portfolio investors (FPI) registered in India, close to 20 per cent are from Europe,
• Banks would be able to continue doing business but would face increased capital costs as they would only be able to do bilateral trades and not go through the clearing houses.
• Well India has earlier also faced such controversies wherein Europe has tried to tighten its standards across all types of markets from carbon credit, green hydrogen , which has led to improvements in Indian standards .
• Here We can hope this controversy too would end on a positive note.

“Customers are King” is an old age mantra which highlights the importance of customers in every business. It is quite different scenario than traditional system which meant providing good products or services.

Today customers not only need good product or service but they also need Best value for the money they are investing, make their life easy and also they don’t want to be commanded. It all depends on how well they are treated.

Well there can no business if there is no customers. Brand , Convenience, Loyalty are certain business mantras which helped the business Tycoons success. But are the customers really the King?

Lets have a look at certain incidents which prove the other way

Incident 1 -Lack of Redress Mechanism for Customer

• A few months ago a customer named Mr. DS Ranga Rao suffered an injury inside the SBI Branch Locker Room due to shaky ladder. After which he went through surgery, months of physiotherapy and uses walker to move around.
• He addressed his grievances to SBI and RBI and after lot of struggle SBI offered him to compensate some portion and not the 100% amount.
• This happened due to lack of redress system and the customer was asked to get satisfied only with the medical reimbursem*nt and not the compensation for what he is suffering . So here the customer trauma still continues.

Incident 2 – Paying for Shopping Bags for Customers who forgets

• Between 2014 to 2018 , 127 countries enacted rules to discourage the use of plastic bags. The act was justified and supported by all the people who considered the decision to be right.
• Shopping Bags became expensive. Positive side was people started carrying their own bags for shopping.
• But malls, and top retailers charged customers even for the paper bags illegally. Even today even if you buy a dress worth Rs 5000, still retailers charge for the Bag. So was this rule for the benefit of the customer or for embarrassing those who forget to carry shopping bags.
• Well we all are humans and humans tend to forget things. So if you forget you need to pay. That’s the rule.
• Multiple Consumer Court Judgements were passed against charging for the bags and fined large retailers
• In 2019, the Chandigarh Consumer Commission set the ball rolling by fining Bata India Ltd Rs9,000 for charging Rs3 for a paper bag to carry a shoe box – Dinesh Prasad RaturivsBata (India) Ltd.
• On 19 February 2021, the Hyderabad District Consumer Disputes Redressal Commission ordered Megastore Retail to refund Rs3 with 12% interest charged to a customer and pay Rs15,000 as compensation.
• It ruled that selling a bag with the company logo on it was to use the consumer as a tool for advertisem*nt and amounted to a deceptive and unfair trade practice.
• Bags with logos, it said, should be provided free of cost to customers.- Baglekar Akash Kumarvs More Megastore Retail Ltd.
• Similar cases have been filed against Westside, Lifestyle ,Big Bazaar and many others. Providing free carry bags is part of the customer service and satisfaction.
• But as many of the consumers do not bother about such charges nor do they like to indulge in arguments, they forgo it blaming oneself that we should have carried the carry bags. Out of shyness for arguing for such small amount such charges are ignored.

Incident 3- Customers Paying Premium Rates To Call Bank or Retailer :

• So not anymore bank toll-free numbers are free. Many banks have shifted from 1800 toll free number to 1860 series of paid, premium numbers for customer helplines.
• The charges range from Rs 2 to Rs 3 per minute and are charged above and beyond even the unlimited payment plans.
• More companies continue to keep you on hold, force you to listen to advertising messages and, finally, leave your issue unresolved; but you could end up paying as much as Rs10 to Rs50 for the ‘experience’. A chatbot that is equally ineffective or an email that doesn’t get an adequate response is our alternative, but less effective.

Incident 4- Packing Charges by Restaurants

• National Consumer Helpline (1915) logged over 3,631 complaints about Swiggy and 2828 for Zomato, the department of consumer affairs called a meeting with top food business operators (FBOs) on 13th June.
• It has asked them to submit a plan for improving grievance redress in 15 days and to show a transparent break-up of packaging charges, delivery charges, surcharges and taxes to customers. In a separate action, the central consumer protection authority has served notices to cab aggregators about customer service and transparency in charges and grievance redress.
• Usurious ‘convenience fees’ charged for all online bookings without a cap on multiple bookings are increasing the list of complaints

Conclusion

• So when did Customer is king concept switched to Slavery for customers? Consumers being busy in the decade celebrating the online era and being lured by endless freebies and coupons has led to the path of ignorance among them.
• It is time to reclaim the space as customers by understanding the rights and demand a fair treatment from banks, retailers and the government which has the worst record of charging customers loading with costs and taxes without having a proper mechanism or structure to redress the complaints.
• The actions of the ministry of consumer affairs shows us that it is the need of the hour that each consumer raises their voice and registers their complaints with complete and clear details.
• Its high time that each and every consumer should depend on the few spirited individuals would act for and get the problems resolved.

The Indian Aviation Sector Rebounds despite of all Critical Challenges which includes the Pandemic, and the Industry gets its breakthrough from the turbulence of Pandemic Covid 19 after the successful Vaccine Roll out and the travel Restrictions are eased globally. Governments WINGS TO FLY Strategy will help India revive its Aviation Industry.

Before we discuss more about the topic its important to know –

What Makes Aviation Sector Important for Indian Economy

• Aviation Sector is linked with other sectors of the Economy and generates income.
• A rising proportion of middle-income households, healthy competition among the Low-Cost Carriers, Infrastructure Build up at Leading Airports and Supportive Policy Framework gives a positive push to the economy
• The rise in demand for Air Travel in India has necessitated the development of a robust ecosystem and supportive Government Policies.
• With the entry of the private operators in this sector and the huge cut in air prices, air travel in India were popularized
• The growth in the Indian economy has increased the Gross Domestic Product above 8% and this high growth rate will be sustained for a good number of years
• Air traffic has grown enormously and expected to have a growth which would be above 25% in the travel segment.
• The air transport sector in India directly contributes 3,90,000 jobs and indirectly supports over 5,70,000 jobs across different supply chains. Additionally, air transport facilitates tourism and investment into India.

• Foreign tourists arriving by air in India are estimated to support an additional 6.2 million jobs. Overall, the aviation industry contributes $72 billion annually to India’s GDP.

Lets Understand What Are Challenges For Aviation Industry In India

• Covid 19 Pandemic

The coronavirus pandemic of 2019 brought with it an avalanche of disasters, not just affecting human lives but negatively impacting the means that sustained them. Amid nationwide lockdowns, lack of necessities, and the immense loss of lives, the economic situation became pathetically dire within the first few months of the pandemic, impacting major industries the world over. One of the discernibly impacted domains among these was the aviation sector.

• Labour shortage

1. The lack of airport revenues already brought about considerable layoffs, but with COVID spreading more than ever, the airline industry had been unable to retain most of the important personnel.
2. Job losses amounted to a considerable percentage of the aviation workforce worldwide, leading to financial ramifications and economic instability.
3. Reduced capacity and increased travel restrictions led to labour shortfall. Ferrying passengers and managing airport traffic in the middle of a global pandemic, even with all precautions taken, seemed a task almost as risky as frontline personnel, which may have led to airline employees reducing in number.
4. Lack of workforce also gave rise to flight delays and cancellations – in a nutshell, labour shortage proved itself to be one of the most significant economic impacts of COVID-19 on the airline industry.

• Low International Air Travel

1. Reduction in overseas air travel was one of worst impacts of COVID-19 on the airline industry. Indeed, experts surmised that increasing number of travel restrictions in place, coupled with periodic lockdowns, will continue to affect the proportion of international air travel at least until 2023.
2. Several countries banned flights in and out, to reduce the spread of the virus; prominent airline companies shutdown operations subsequently – an indicator of how COVID-19 disrupted the airline industry.

• Impact on airport revenues

1. The fluctuating financial situation during the pandemic was undeniably one of the worst economic impacts of COVID-19 on the airline industry. Without air traffic and passenger-related charges, global airport revenues nearly ceased to exist, as was evident with many airline companies shutting shop.
2. The year 2020 hardly depicted any flexibility in operating expenditures. That, in tandem with massive capital costs, proved to be one of most unprecedented challenges of the aviation industry in 2020.

• Rising Oil Prices due to Russia Ukraine War

1. The Prices of Brent Crude Oil crossed $100 per barrel as Russian President Mr Vladimir Putin declared war against Ukraine.
2. According to market watchers, higher crude oil prices are major headwinds for a couple of sectors including aviation, paint, tyres and oil marketing companies.
3. Brent crude oil has jumped over 30 per cent to $101.40 on a year-to-date basis. The commodity was at $77.78 per barrel.
4. Following the rise in crude oil prices, the cost of aviation turbine fuel (ATF) has advanced 19 per cent to Rs 90,519 per kl from Rs 76,062 per kl.
5. The rise in ATF prices may hit the balance sheet of airline companies which accounts for more than 35 per cent of the cost of running an airline in India.
6. Strengthening crude oil prices will impact aviation sector and put pressure on currency also.

Breakthrough Despite the Turbulence

• Despite all the challenges in front of Indian Aviation Industry experts believe that the sector will rebound till the mid year 2022.
• Experts are bullish about the Air Line Market as the air traffic in India has grown by 9% in the last 20 years and will continue to grow.
• The passenger traffic in India is expected to grow by 6.2 % per annum by 2040, the fastest among the major economies.

Governments WINGS TO FLY initiative to Rebound Aviation Industry

W -With Modernization of Airports
I -Incentivization of MRO
N -New systems such as Unmanned Aircraft Sector-Drone
G -Growth of Aviation Industry through strategic Disinvestment
S -Scheme UDAN

T -To Roll out Vaccination Programme for all
O -Opportunity of Employment

F – Focus on Green Schemes
L – Leasing out Airports on PPP Model
Y – Year on Year Analysis

W- With Modernization of Airports

Government aims To Modernize Indian Airports so as to

• To improve the standard of services and facilities at these Airports.
• To facilitate infusion of private sector investments as also foreign direct investment in the airport sector.
• To improve managerial efficiency.
• To induct state of the art technologies.
• Delhi and Mumbai being gateway airports to the country and cater to a large number of tourist and other passengers, it is felt imperative to improve these airports to world-class standards and create positive impression of the country.

I -Incentivization of Maintenance, Repair and Overhaul(MRO)

• Union Civil Aviation Minister Jyotiraditya Scindia has urged Indian airlines to persuade their original equipment manufacturer (OEM) vendors to develop maintenance, repair and overhaul (MRO) facilities in the country.
• Besides, land allotment for entities setting up MRO facilities will be done for 30 years instead of the current short-term period of 3 to 5 years.
• Under the new policy, the rate of lease rental would be decided through bidding instead of the current practice of having pre-determined AAI (Airports Authority of India) rates.
• Also, the rate of escalation for lease rental would be 15 per cent after every 3 years. At present, the escalation rate is 7.5 per cent to 10 per cent per annum.
• The land will be allotted through open tenders instead of the current practice of allotment based on an entity’s request.
• According to the minister, there will also be changes in the renewal of the contract of existing leaseholders. On the expiry of existing contracts, the land given to these MROs would be allotted on the basis of a bidding process.

N-New systems such as Unmanned Aircraft Systems-Drone

• Unmanned Aircraft Systems (UAS), also known as drones, offer tremendous benefits to almost all sectors of the economy and can become an important propeller for growth due to their reach, versatility, and ease of use, especially in India’s remote and inaccessible areas.
• Thus, government has liberalized drone rules 2021 on August 2021 and released PLI scheme for drones on 15 September 2021.
  G- Growth of Aviation Industry through strategic Disinvestment-Air India
• The process for disinvestment of Air India and its subsidiaries commenced in June 2017with the ‘in-principle’ approval of Cabinet Committee on Economic Affairs.
• CCEA also approved creation of an Air India Specific Alternative Mechanism (AISAM) for the disinvestment process.
• The AISAM decided the strategic disinvestment of 100percent stake of Government of India in Air India along with 100percent stake in Air India Express Ltd and 50percent stake in Air India SATS (joint venture between Air India (AI) and Singapore Airport Terminal Services (SATS).
• Subsequently, M/s Talace Pvt Ltd, a wholly owned subsidiary of M/s Tata Sons Pvt. Ltd which was the highest bidder was awarded 100percent equity shareholding in Air India along with equity shareholding of Air India in Air India Express Ltd. (AIXL) and AISATS.
  S- Scheme UDAN
• UDAN is a regional connectivity scheme spearheaded by the Government of India (GoI). The full form of UDAN is ‘Ude Desh ka Aam Nagarik’ and aims to develop smaller regional airports to allow common citizens easier access to aviation services.
• The Civil Aviation Ministry has set a target of operationalizing as many as 100 unserved and underserved airports and starting at least 1,000 air routes.
• The GoI has acknowledged the contribution of the scheme and has identified 21st October as UDAN Day, the day on which the scheme document was first released.
• The Civil Aviation Ministry has approved 78 new routes under the 4th round of Regional Connectivity Scheme UDAN. So far, 766 routes have been sanctioned under the UDAN scheme.

T-To Roll out Vaccination Programme for all

• The risk of infection spreading on airplanes is lower if Covid-19 protocols, including vaccination, are adhered to be sure that airlines need to ensure that their staff, particularly pilots and cabin crew, are fully vaccinated, for their own protection as well as for the safety of passengers.
• So Government Of India Rolled Vaccine for all Programme so that increasing coronavirus vaccinations around the globe will allow to lower barriers to entry for visitors and re-entry for residents returning home

O-Opportunity of Employment
The domestic aviation sector is projected to employ nearly four million people in two decades, driven by improved economic activities and labour productivity, says a study instituted by the Civil Aviation Ministry. While emphasising the need for having skill development programmes across various levels in the sector, the study has suggested setting up of the National Civil Aviation Training Entity (NCATE).

F-Focus on Green Schemes

• Under Union Budget 2021-22, the Indian government expanded the scope for ‘Krishi Udaan’ in convergence with Operation Green Scheme, wherein air freight subsidy of 50% for Agri-perishables would be provided to North East states and 4 Himalayan states/UTs.
• The expansion of product-coverage will boost the ‘Krishi Udaan’ scheme and improve air cargo transportation from these states.
  L-Leasing out Airports on Public Private Partnership (PPP) Model
  6(six) Select airports – Varanasi, Amritsar, Bhubaneswar, Raipur, lndore and Trichy along with 7 (seven) smaller airports have been recommended by AAI Board for leasing out on PPP model.
• Public-private partnerships involve collaboration between a government agency and a private-sector company that can be used to finance, build, and operate projects, such as public transportation networks, parks, and convention centers

Y- Year on Year Analysis –
With Year-on-Year Analysis Government can track the growth of the Aviation Industry also adopt cost control steps which can revive the debt grown sector into profitable one

Conclusion
Thus with Market experts being Bullish on the Indian Aviation Market and the WINGS TO FLY approach of Government we India is expected to overtake UK and become the third largest air passenger market by 2024. The policy reforms will therefore catalyse super-normal growth in the sector. A resurgence of the sector is foreseen as a result of swift measures adopted by the government and industry.

Deepinder Goyal- The Zomato Guy has revolutionized the food industry with his Food Delivery App. The late night cravings and urgent home delivery are all managed by Zomato and that too with a few clicks. Food Industry has huge potential in India and despite this Zomato is one other brand which dominates this industry. Zomato provides a complete reference of the restaurants, its menus, reviews and almost everything related to the restaurant. It was founded by Deepinder Goyal and Pankaj Chhada. Let us understand Mr. Deepinder Goyal Success Journey in detail.

Deepinder Goyal – Biography

Deepinder Goyal Early Life and Education

• Deepinder Goyal was born on 26^th January 1983. He was born in Muktsar, Punjab and is 41 years of age. He is currently the Director and CEO of Zomato. Deepinder Goyal belonged to Middle Class Family. He completed his graduation from the prestigious Indian Institute of Technology, Delhi in the year 2005 in the field of Mathematics and Computing.
• He was always interested in food and this encouraged him to start up a venture that would help people have their lunch, breakfast and dinner conveniently.
• Despite his tech background, Zomato CEO Deepinder Goyal is a poetry lover and a bibliophile. He even published a book for an ideal workspace culture known as “Culture”.

Deepinder Goyal Net Worth and Investments

• The net worth of the Zomato co-founder is Rs 2570 crore. He holds a 5.5% stake in Zomato and has invested in various start-ups like Bira 91, HyperTrack, TerraDo, Squad Strack etc. He is the owner of 5-acre land in Delhi’s Dera Mandi village worth Rs 79 crore.
• Deepinder Goyal owns several high-end lavish cars including a Ferrari Roma worth Rs 4.76 crore, a Porsche 911 Turbo worth Rs 3.35 crore, a Lamborghini Urus worth Rs 4.18 crore Turbo worth Rs 2.31 crore.

Deepinder Goyal Family

• He married Kanchan Joshi, whom he met while he was a student at IIT Delhi. At that time, Goyal’s wife Joshi was getting her MSc in maths, and the two of them would meet in the labs. They have a child together named Siara. Deepinder Goyal got separated from his wife and then remarried Mexican Model Grecia Munoz.
• Mr. Goyal has shared a cosy picture with Ms Munoz on Instagram, leading to the buzz over his marriage. Ms Munoz had earlier tagged him in an Instagram story with a heart emoji, which he had re shared with two more heart emoji’s. Mr. Goyal and Ms Munoz tied the knot a couple of months back and returned from their honeymoon in February.

Deepinder Goyal – The idea of Zomato

• Deepinder Goyal observed that ordering food was never easy. People used to wait in long que in restaurants to buy food. Also online food ordering did not provide proper information about the restaurants and thus customers were ignorant about the food quality, discounts and ratings of the restaurant.
• Deepinder after graduation joined Bain and Company as a Senior Associate Consultant in 2006 during which he founded Foodie Bay.com which later on was renamed as Zomato.com at Bain and Company. This saved money and time while ordering food online.

The genesis of Zomato:

• In 2008, Goyal, in collaboration with Pankaj Chaddah, founded their food delivery company, initially named Foodiebay. A year later, rebranded as Zomato, the company expanded its footprint globally, reaching countries likeSouth Africa, Canada, UAE, andNew Zealand.

The growth of Zomato:

• Zomato kicked off essentially as a rebranded version of the food directory services Foodiebay. Goyal and Chaddah, both IIT graduates and both working as analysts at Bain and Company back then, had started Foodiebay in 2008. In a matter of just nine months, Foodiebay became the largest restaurant directory in Delhi NCR. After two successful years, the company was rebranded Zomato and since then there was no looking back.
• With support from its investors and multiple rounds of consecutive funding, Zomato built not only its valuation but also an interesting portfolio of investors which includes Info Edge India, Sequoia, Vy Capital, Singapore-based investment firm Temasek, and Alibaba’s Ant Financial. Ant Financial’s $200 Mn investment earlier this year led Zomato to cross the $1 Bn valuation.
• Zomato’s quick growth can also be attributed to its rapid expansion to countries other than India. Soon after its success in Delhi-NCR, the company started branching out to cities like Pune, Ahmedabad, Bengaluru, Chennai, and Hyderabad.
• By 2012, Zomato had started expanding overseas by extending its services to Sri Lanka, UAE, Qatar, South Africa, UK, and the Philippines. The year 2013 saw New Zealand, Turkey, and Brazil get added to its list.
• During this time, Zomato also kept working on its tech backbone to match the boom in the smartphone trend and launched its app. The company also started aggressively acquiring foreign competition to increase its foothold in other countries.
• In 2014, Zomato acquired Gastronauci, Poland’s restaurant search service, and Cubano, an Italian restaurant finder. The next year, Zomato made its biggest acquisition — US-based online table reservation platform NexTable. Soon after, it acquired another US-based restaurant directory, Urbanspoon, but had to shut the app within just five months.

Zomato goes public:

• On July 14, 2021, the Rs 9,375-crore initial public offering (IPO) of Zomato—the foodtech unicorn—opened for subscription at a price band of Rs 72-76 a share, against a face value of Rs 1 apiece. The much-hyped IPO from the Indian start-up ecosystem had closed on July 16 with an oversubscription of 35 times.
• Zomato got listed on July 23, at a valuation of over $13.3 billion, with an issue price of Rs 76 apiece. In the IPO, Zomato received an overwhelming response from investors. With the first start-up unicorn going public, investors got the first taste of an entirely new and emerging sector of India’s economy.
• On November 16, 2021, Zomato’s share price touched an all-time high of Rs 169.10 apiece on the Bombay Stock Exchange.

Earnings and net worth:

• During FY 2011-2012, Zomato Media Pvt. Ltd. reported revenues worth INR 2.04 crores, which ballooned to INR 11.38 crores during the financial year 2012-2013.
• Zomato had around 2.5 million visitors on its website in March 2012. This increased exponentially to 62.5 million during 2014. Their revenues surged too, INR 30.06 crore generated in 2012 as revenue increased to INR 96.7 crore in 2015. Zomato recorded a growth rate of 68.9% in its gross revenue, reachingINR 7,079 crores in FY23. During FY 2011-2012, Zomato Media Pvt. Ltd. reported revenues worth INR 2.04 crores, which ballooned to INR 11.38 crores during the financial year 2012-2013.
• Zomato had around 2.5 million visitors on its website in March 2012. This increased exponentially to 62.5 million during 2014. Their revenues surged too, INR 30.06 crore generated in 2012 as revenue increased to INR 96.7 crore in 2015. Zomato recorded a growth rate of 68.9% in its gross revenue, reachingINR 7,079 crores in FY23.

Deepinder Goyal Shark Tank India Season 3

• In Shark Tank India Season 3, Deepinder Goyal’s detailed feedback and approach have sparked discussions. Goyal emphasised the importance of precision, noting how small errors can influence judgments in professional settings like job applications.
• His approach to the show resonated with many viewers. Social media users shared their admiration for Goyal’s insights. He is particularly interested in businesses that are challenging the status quo and have the ability to make a significant difference in people’s lives. Goyal’s addition to the panel of sharks is sure to make the new season even more exciting and informative.

Deepinder Goyal Personal and Professional Achievements

• Zomato was also named the startup of the year in 2021. Starting small and becoming a global food delivery business shows how determined Deepinder Goyal is.
• Deepinder Goyal’s persistence and commitment helped in building a unicorn, and Zomato went from tough times to changing the food delivery industry. His story serves as an inspiration for young aspiring entrepreneurs.

Personal Achievements:

Zomato Milestones:

• 2008: Founded as Foodiebay, later rebranded as Zomato
• 2011: Launched online ordering platform
• 2014: Expanded internationally to UAE
• 2015: Acquired Runner, a food delivery startup
• 2017: Became India’s first unicorn startup (valuation over $1 billion)
• 2019: Launched grocery delivery service
• 2021: IPO (Initial Public Offering) on the Indian stock exchange
• 2023: Expanded to 23 countries worldwide

Deepinder Goyal – Investments besides Zomato

The below mentioned are the few list of investments which Deepinder Goyal did besides Zomato

Conclusion

Deepinder has shown how to grow a business by setting up examples for his co-workers. Working for 24 hours is never a cakewalk, especially when there’s pressure from parents upon leaving a well-settled job. Under his guidance, Zomato has received multiple awards, mostly user’s choice – which proves customer satisfaction

In the midst of Russia Ukraine Crisis MSCI (Morgan Stanley Capital International- Investment Research Firm that provides stock Indices, Portfolio Risk and Performance Analytics to Institutional Investors and Hedge Funds) and FTSE Russell (Subsidiary of London Stock Exchange Group that produces, maintains, licenses, and markets stock market indices) decided removal of Russian Equities from all the Index.

FTSE Russell decision will be effective from March 7^th, 2022, whereas MSCI decision will be effective from 9^th March 2022. The prodigious market participants see the Russian market as Uninvestable. FTSE Russell will delete Russia Constituents listed on the Moscow Exchange at a zero value. The decision was made as the market became Uninvestable after the Central Bank of Russia halted trading on the Moscow Exchange and blocked foreign investors from selling. The Central Bank also restricted its lenders from processing fund withdrawals in all currencies held by foreign clients in retaliation to Western Sanctions.

The Russia Ukraine Crisis

The Russian Invasion on Ukraine is unlike the many ongoing conflicts in various parts of the world. A military Superpower Russia invaded Ukraine which is backed by US and NATO. While the later have repeatedly stated they will not send troops to defend Ukraine , they are imposing tough Sanctions against Russia and its rulers. This war has many consequences for global trade, capital flows, financial markets and access to technology. Sanctions imposed on Russia by Rich countries will not stop the war and nothing much will change immediate but it will have real impact over period of time in political and economic relations in both sides. It is almost like a Cold war between Russia and China on one side and the Western powers and their allies on the other side. Since the world is more globalized the impact will be greater.

Impact of War in Short Run

• Global Trade will be immediately impacted by sanctions.
• Exports and Imports will be highly impacted and existing bottlenecks due to pandemic will aggravate.
• Western Nations can threat the Nations who are trading with Russia and force to discontinue Imports through Russia.
• US can increase supply of Petroleum Products and ask OPEC countries to do so to prevent prices shooting up and disrupting World Economy.
• Ukraine being major exporter of Agricultural products, their supply will get effected. Commodity prices will shoot up. Consequently, inflation will rise up.
• Global Capital flows will decline since many countries would want their capital to invested in home rather than abroad.

Impact of War in Long Run

• The current moves to freeze the assets of Russians in Western banks and to cut off credit to their companies, would force them to devise alternative international payments system independent of the dollar. Those companies like, the Chinese, which defy Western sanctions will also need such a payment system.
• So, two trading and financial blocs will emerge. The Chinese and the Russians have large foreign exchange reserves and the surplus in trade that they can successfully create a bloc. All this will have uncertain consequences.
• China and Russia will get pushed closer to each other and given the strength of the Chinese economy and the technology available with Russia, the cold war will not be between very unequal blocs as was the case in the 1950s.
• So, potentially it could be more dangerous. Globally, the rich nation’s bloc will not be seen as a reliable ally since recently, the US deserted its allies in Afghanistan and now it has left Ukraine to fend for itself.

Russian Stock Market and Indices after War.

• Russia was scrambling to prevent its financial meltdown after its economy was slammed by Western Sanctions imposed in the Weekend in response to invasion of Ukraine.
• The latest barrage of sanctions imposed by the United States, the European Union, the United Kingdom and Canada said they would expel some Russian banks from SWIFT, a global financial messaging service, and paralyze the assets of Russia’s central bank.
• The United States also banned US dollar transactions with the Russian central bank in a move designed to prevent it accessing its rainy day fund.
• President Vladimir Putin held crisis talks with his top economic advisers after the Ruble crashed to a record low against the US dollar, the Russian central bank more than doubled interest rates to 20%, and the Moscow stock exchange was shuttered.
• The European subsidiary of Russia’s biggest bank was on the brink of collapse as savers rushed to withdraw their deposits. Economists warned that the Russian economy could shrink by 5 %.
• Russia is a leading exporter of oil and gas, but many other sectors of its economy rely on imports. As the value of the ruble falls, they will become much more expensive to buy, pushing up inflation.

MSCI And FTSE Russell Decided Removal Of Russian Equities From All The Index.

• MSCI Inc and FTSE Russell have announced that they will be removing Uninvestable Russian equities at zero value from all the global and regional indices.MSCI will now call Russia a standalone market. MSCI Standalone Market Indexes are not included in any of the widely followed passive indices like the MSCI Emerging Markets Index or the MSCI Frontier Markets Index, missing out on foreign passive flows. For instance, in MSCI Emerging Markets Index, Russian equities weighed somewhere around 2 per cent and now the passive trackers will value the holding at zero in the books which effectively means despite weight reduction of Russian indices there won’t be any flow benefit in other countries of the EM Index.
• After the adjustments, Russia’s weight should get redistributed among all the countries in the indices. The possible weight increase for India will be very minuscule (~15-20 bps) thus, there will be no benefit in terms of flows. The top 4 heavyweights in MSCI EM Index are China, Taiwan, India (current weight is somewhere near to 12.29 per cent) and Korea.

Experts Opinion On Whether India Will Get Benefited By Removing Russian Stocks

• Removing Russian stocks from the MSCI index will lead to $600 million in foreign inflows into Indian equities,
• These inflows will get distributed in index heavyweights likeReliance Industries Ltd,Infosys Ltd,HDFC Ltd,ICICI Bank LtdandTCS.
• If MSCI finalizes to remove Russian stocks from EM Index and at the same time FIIs are not restricted to sell the constituents then it could lead to 25 basis points increase of India in MSCI Emerging Markets.
• The decision comes a day after rival British Petroleum (BP)abandoned its stake in Russian oil giant Rosneft. Norway’s Equinor also plans to exit Russia.
• The research, however, underlines that it would be difficult for Index providers to remove Russian stocks as media reports claim that Russia’s central bank has ordered brokers not to execute sell orders from foreign shareholders.

Reliance Industries Chairman Mukesh Ambani announced major decisions like launch of 5G telephony and succession plans for the industry in his 45^th AGM meet . There are about Ten major takeaways from the Meet. Lets understand each one of them.

Reliance Industries History

• Reliance Industries had diverse business including energy, petrochemicals, natural gas, retail, and telecommunications, mass media and textiles.
• Reliance is one of the most profitable companies in India and continues to export about 8% of the total exports of the country and has access to 100 countries.
• Reliance is also responsible for almost 5 % of the government of India’s total revenues from the customs and excise duty. Reliance also pays the highest income tax in India.
• The company was founded by Mr. Dhirubhai Ambani and Champaklal Damani in 1960’s as Reliance Commercial Corporation .The partnership ended in the year 1965 and Dhirubhai continued with the polyester business.
• Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. It was in 1957 when he returned to India after a stint with A.Besse& Co., Aden he started yarn trading business from a small 500 sq.ft. Office in Masjid Bunder, Mumbai. He set up his brand new mill in Naroda, Gujarat.

The Multinational Conglomerate Formation

• In 1996 Reliance went on to become the biggest textile brand ‘Only Vimal’. In 1977 the Reliance Textile Industries came with an IPO which was oversubscribed seven times.
• Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.
• Starting as a small textile company, Reliance has in its journey crossed several milestones to become a Fortune 500 company in less than 3 decades.
• Today, RIL has over30 lakh shareholders; the Ambani family holds nearly 52% of the total shares. Also, the company has over24,000 employees. It has158 subsidiary companiesand10 associate companiesin different fields.
• Thelargest retail store network of India, Reliance Retails holds several cutting edge brands like Reliance Fresh, Reliance Wellness, Reliance Time Out, Reliance iStore, Reliance Market, Reliance Trends, Reliance Jewel, and many more.
• It deals inmedical, plant and industrial biotechnologyopportunities. The specialty areas of this segment include making, marketing and branding the products of RIL inpharmaceuticals, clinical researches, molecular medicine, biofuels, industrial biotechnology,and few others.
• A great imitative by Reliance Industries, Relicord is working to bring advancement in thebiotechnological industry.It is licensed by theFood and Drug Administration, Governmentof India. Relicord is the first to have a registered cord blood bank and repository in the entire region of Southeast Asia.
• A famous educational institution, Reliance Institute of Life Science offers higher learning in different domains of life sciences and related technologies. It was established by theDhirubhai Ambani Foundationand now has become a pioneer in offering graduate, post-graduate, doctoral, research and many other education programs.
• Reliance Jio Infocomm Limited is an important part of Reliance Group; it is a broadband service provider. This is thesixth-largest mobile network operatorin the whole world withover 306 million subscribers. Earlier the company was known as Infotel Broadband.
• Reliance Logistics is an important win of Reliance Group; it is involved in the selling of products related todistribution, warehousing, supply chain, logistics, andtransportation. It is anasset-based companywith its infrastructure and fleet. It offers supply for logistics to the RIL and also other third party companies.
• Reliance Clinical Research is acontract research organizationand specialized in the clinical research services industry. This is a wholly-owned subsidiary of Reliance Life Sciences.
• Reliance Solar deals insolar energy; it produces and sells solar energy systems to remote and rural areas. It presents a wide variety of products likesolar lanterns, home lighting solutions, street light systems, water purifying systemand many other products based on solar energy.
• Reliance Industrial Infrastructure holds about45.43 percent shares of Reliance Group. It is mainly involved inestablishing and operating industrial infrastructure. RII also works for leashing and providing servicesin data processing and computer software.
• LYF is an Indian mobile handset company; it manufactures4G-enabled VoLTE smartphones. This is the subsidiary of Reliance Retails and runs with the parent company’s flagship venture, Jip.
• Reliance Group has touched all segments of business, and the film industry is not an exception.Reliance Eros Productionsis involved in producing file content in India. This is a jointed venture withEros International.
• A renowned mass media company, Network 18 is also the subsidiary of Reliance Group. It has diversified activities in different segments likedigital platforms, films, mobiles and also television.It has acquired theETV networkand also has some joint ventures namelyHistory TV18, Viacom 18.

45^Th Annual General Meeting-Ten Important Gist of the Meet

1. 5G Rollout in Metros by Diwali

• Ambani announced a Rs 2 lakh crore investment plan in deploying 5G telephony with a rollout in metro cities by Diwali.
• He said 5G services would be launched across multiple key cities including Mumbai, Delhi, Chennai & Kolkata by Diwali. Subsequently, the company aims to connect every town, taluka, and tehsil by December 2023.
• Reliance Jio, India’s largest telecom operator has deployed a standalone 5G stack rather than upgrading the existing 4G network to offer ultra high speed internet.

2. Leadership Transition Roadmap

• Ambani laid out a clear roadmap that gives an idea of how the conglomerate will be divided among two sons Akash and Anant, and daughter Isha.
• Talking about succession, the 65-year-old tycoon said that Akash and Isha have taken leadership roles at the telecom and retail businesses while younger son Anant has joined the new energy business and is being groomed for a leadership role.

3. Foray in to FMCG Business

• Isha Ambani director of Reliance Retail Ventures Ltd said that India’s conglomerate behemoth Reliance Industries will this year launch its fast-moving consumer goods business.

4. Rs 75000 crore Investment for Petrochem Expansion

• Ambani announced an investment for Rs 75,000 crore in the next five years in the petrochemical business.
• On the occasion of the 45th AGM, Ambani said that the new investments will be in setting up a PTA plant, expanding polyester capacity, tripling capacity of vinyl chain and a chemical unit in UAE.
• The announcement signifies the Reliance’s commitment to the O2C business at a time when the focus of the group has been on the diversification in telecom, retail and new energy.

5. JioAir Fiber Hotspot

• Reliance JIO chairman Akash Ambani announced JioAirfiber, a wifi hotspot that will allow consumers to access fiber-like speeds at homes and offices.
• With a single device, it will be real easy to quickly connect any home or office to Gigabit-speed internet without any wires .
• This will allow connecting of millions of homes and offices to ultra-high-speed broadband in a very short period. With it, India can rank among the Top-10 nations, even for fixed broadband.

6. Giga Factory for Power Electronics

• Mukesh Ambani announced the setting up of a new gigafactory for power electronics. One of the key components linking the entire valley of green energy is affordable and reliable power electronics.
• The company intends to build it through partnerships with global players to provide affordable solutions.

7. New Energy

• Reliance aims to progressively commence its transition from grey hydrogen to green hydrogen by 2025, after proving its cost and performance targets. It will deliver modular, at scale and the most affordable modern green energy manufacturing business based in India, for India and for the world.

8. Battery Packs

• Reliance also aims to start production of battery packs by 2023 and scale up to a fully integrated 5 GWh annual cell to pack manufacturing facility by 2024, and further scale up to 50 GWh annual capacity by 2027.
  

9. Shop From Reliance Jio Mart via Whatsapp

• Isha Ambani at the company’s 45th AGM announced that consumers will be able to browse and purchase groceries and other household products on Meta-owned WhatsApp.

10. India Beacon of Growth and stability

• India stands as a beacon of growth and stability amid widespread unpredictability in the world. Amidst this widespread unpredictability, India stands tall as a beacon of growth and stability. The Government’s skilful management of the pandemic, and pragmatic approach in dealing with the ensuing economic challenges, have helped India

Securities Exchange Board of India –SEBI has cancelled Certificate of Registration of Brickworks Ratings and asked them to wind up operations within six months. Well the decision has shocked many as SEBI has never asked any Credit Rating Company to wind up this way.

So What led SEBI take such a drastic step against the Credit Rating Agency?

To understand this lets first see what is the role of SEBI in India?

• The main objective of SEBI is for reducing speculations in the market so that retail investors do not end up incurring losses in volatile market.
• SEBI protects the interest of the investors in securities and promotes the development and regulates the security market.
• SEBI’s primary purpose is to take care of the interest of investors in the stock market.
• It encourages the development of the stock market and controls the market.
• It offers a platform for investment advisors, portfolio managers, sub-brokers, share transfer agents, merchant bankers, underwriters, bankers, trustees of trust deeds, registrars, and other associated participants.
• It regulates the working of depositories, custodians of securities, credit card rating participants, and foreign portfolio investors. It prevents insider trading and any unfair trade practices in the stock market. It prohibits price manipulation of stocks in the securities market.
• It updates investors about various cautions through media and investors can visit the SEBI office to get answers to their queries.
• They also educate investors by conducting online and offline classes to provide market insights. They regulate the merger and acquisitions of companies.

Role of Brickwork Ratings

• Brickwork Ratings is a SEBI registered Credit Rating Agency which is accredited by RBI, offers Rating services on Bank Loans , NCDS, Fixed Deposits, Securitised Products. Security Receipts etc. Brickworks has its corporate office in Bengaluru and country wide presence.
• Brickwork Rating was established in 2007 and is promoted by Canara Bank.
• Credit Rating Agencies access the Credit Worthiness of organization of different entities.
• These agencies analyses debtors ability to repay the debt and also check the credit risk.
• All the Credit Rating Agencies in India are regulated by SEBI Regulations, 1999 of the Securities and Exchange Board of India Act, 1992.
• There are total seven credit agencies in India i.e CRISIL, CARE, ICRA, SMREA, Brick Work Rating, India Rating and Research Pvt. Ltd and Infomerics Valuation and Rating Private Limited.

Why SEBI decided to Close Down Brickworks Ratings

• On October 6^th SEBI ordered Brickwork Ratings to close its shutters with a time limit of 6 months.
• The decision shocked many and even in the history SEBI has never shut down any Credit Rating Agency in such a way. The two reasons why SEBI took such a drastic step are

Failure to Perform its Duties

• Brickworks Have failed to Perform its Duties proactively especially towards Sintex Plastic Technology Ltd.
• Sintex had already declared to the stock exchanges on 14^th Augutst 2019 that it defaulted some of the borrowings. Sintex declared that they are cashless and haven’t been able to repay their lenders.They’re also saying that they have breached certain terms set out in the loan contract.
• This, they say happened on 31 March 2019. But BWR, a CRA of high standing actually declared that Sintex had defaulted, only on 21st August 2019.Here BWR took 7 days to declare that Sintex Plastic Technologies Ltd has defaulted.
• Despite its Failure, BWR tried to defend itself stating the delay did not exceed 7 days. But SEBI considered BWR’s behavior is complete disregard which is not expected from CRA’s.
• It was also mentioned that there were lapses in the case of Bhushan Steel and Gayathri Projects. SEBI began probing the credit rating agency in 2020 and undertook a joint inspection with the Reserve Bank of India.
• Credit rating agencies are institutions that rate the debt instruments of companies. These ratings are used by investors and companies to take business decisions on a particular corporate.
• Given the vital public functions performed by credit rating agencies, it becomes important to ensure that such agencies conform to the applicable regulatory framework and have high standards of diligence.
• SEBI regulations and circulars mandate credit rating agencies to give ‘true’, ‘fair’, ‘appropriate’, and ‘accurate’ ratings, and in order to fulfill such obligations the higher standards of due diligence, integrity, dignity, fairness, etc, are expected from CRAs,
• In January 2020, SEBI and the RBI undertook a joint inspection of the rating agency, where the two regulators found “several irregularities”.
• SEBI issued an administrative warning and directed it to rectify the discrepancies and take corrective measures.
• In July 2021, SEBI was served a notice by the Karnataka High Court, where Brickwork had challenged the recommendation of cancellation of its licence.

The second one is Conflict of Interest

• Companies pay Credit Rating Agencies for getting good ratings not the Investors. So if CRA wants to perform better they have to work in line with the Companies.
• If there is a situation where the head of ratings accompanies the business development head when courting new business, the company could sign-off on the deal in exchange for a better rating. So that’s what happened in case of IDFC First Bank.
• The contraventions /deficiencies observed in both the inspections led to initiation of separate adjudication proceedings against Brickwork, the order read.
• The regulator also imposed monetary penalties on the rating agency after both the inspections, the order stated.
• In the third inspection, several irregularities in violation of the provisions of the CRA Regulations and certain SEBI circulars were revealed.
• The order stated that CRAs play a critical role as gatekeepers to financial markets and are a source of information for investors. Given the vital public functions performed by credit rating agencies, it becomes important to ensure that such agencies conform to the applicable regulatory framework and have high standards of diligence
• The repeated lapses, noticed across multiple inspections conducted by SEBI, shows that governance changes recommended in earlier inspections, and monetary penalties imposed have not proved effective or deterred the notice in addressing very basic requirements of running a CRA.

Radhika Gupta is the Managing Director and CEO of Edelweiss Mutual Fund has proved that Disability is a matter of perception. Radhika Gupta is known as “the girl with the broken neck”. Let us take a look at her journey in detail

Radhika Gupta’s Early Life

• Gupta was born to a diplomat name Yogesh Gupta who was an Indian Foreign Service official. She has moved across continents along with her family. Radhika was born in Pakistan where she had complications at her birth and she ended up with broken neck.
• Radhika’s mothers name is Arti Gupta who is a school principal. Radhika got married to Nalin Moniz and the couple is blessed with a child Remy Gupta Moniz. Radhika Gupta owes the credit for her success to her father who inspired her to aim for the sky.
• She mentioned her father as her inspiration, who was born and brought up in a village in UP and ranked 7th in his civil service examinations. Her father’s piece of advice to her was that to come out of poverty, every generation has to make a quantum leap. He motivated her to study abroad and make that quantum leap so that she could enable future generations to accomplish further.

Educational Background

• Radhika Gupta is a graduate of the Jerome Fisher Program in Management and Technology from the University of Pennsylvania. She did her Bachelor of Science in Engineering in Computer Science from the University of Pennsylvania School of Engineering and Applied Science and Bachelor of Science degree in Economics from the University of Pennsylvania –The Wharton School in 2005.

Radhika Gupta Career Journey

• Radhika Gupta stated that at age of 22, she got rejected from her 7^th Job application and she decided to commit suicide due to which she was wheeled in to a psychiatric ward and diagnosed as depressed. After this incident she bagged a job at McKinsey and her life fell at track. At the age of 25 she moved to India and started her own Asset Management Firm with her husband and friend in the year 2009.
• The firm name was Forefront Capital Management which was later on acquired by Edelweiss Financial Services Limited in the year 2014. In 2016, Radhika Gupta assisted the acquisition of Ambit Alpha Fund and acquisition of the onshore business of JPMorgan Asset Management. Radhika Gupta headed Edelweiss Multi Strategy Funds Management Pvt Ltd. and was responsible for setting the strategic direction, overseeing investments, sales and distribution.
• Later in the year 2017, she replaced Vikaas Sachdeva and became CEO of Edelweiss Asset Management Co. She also has been influential figure on the board of the Association of Mutual Funds (AMFI) and served as Vice Chairperson for the two consecutive terms from 2021 to 2023. Her insights and leadership aided the industrial growth and innovation.
• In the year 2023, Radhika Gupta joined the Shark Tank India Season 03 series where she shared her passion for entrepreneurship and invested in emerging businesses. She tweeted that Shark Tank Show gave her excitement and commitment to support new ventures in a personal capacity. Her authenticity and storytelling made a profound impact online, as her video “The Girl with a broken Neck” which amassed over 301k views.

Leadership at Edelweiss Asset Management

• Radhika assumed the role of CEO at Edelweiss Asset Management when she was 34 years old. She launched Bharat Bond ETF in 2019 which is India’s first corporate Bond ETF. Edelweiss also achieved a notable growth in Assets Under Management (as of 31st March 2017) to over ₹ 1.20 lakh crore (as of 30th November 2023).
• Also in the year 2017, JP Morgan Mutual Fund integrated seamlessly to Edelweiss and she was instrumental in carving out the niche for Edelweiss as a robust retail financial brand.
• Radhika Gupta’s emphasis on creating innovative and customer centric solutions have not only resonated in the marketplace but also helped Edelweiss Mutual Fund’s place as a top tier performer, soaring to the 13^th position by September 2023 from the 30^th rank in March 2017.

Accepting Myself as Imperfect But Beautiful- Embracing the Disability

• In her new book,Limitless: The Power of Unlocking Your True Potentialpublished by Hachette, one of the most pertinent chapters is titled:TGIF: Thank God I’m Flawed. “You have to accept that you’re not unique in being flawed because it really makes you very normal,” “If you can use your flaws to your advantage, why not? Out of all the things I thought I’d get half well known for, a slightly crooked neck was the least. So, if you can make an edge out of your flaws, [do it] by all means.” These are the words said by Radhika Gupta when interviewed about her disability.
• Growing up, Gupta couldn’t participate in traditional hobbies that her classmates did – sports or otherwise. She found “identity and solace” in academia, particularly during her schooling years in Nigeria where she felt like a “gross misfit” studying alongside daughters of warlords in the late 1990s. Radhika Gupta was born with a permanent tilt to her neck due to certain birth complications. While it was not evident in the early years of her childhood, the tilt became prominent as she started to shed her baby fat.
• Radhika admitted in many of her interviews that she was extremely self-conscious about her ‘weird tilt’ and her self esteem took a beating. At one point in her life, she was afraid of losing weight as it would reveal the tilt prominently. But over time, she learned to embrace her flaws. Radhika saw her tilt from a different lens and realized it was one of the things that made her unique. It also inspired her for doing things differently.
• While in Nigeria, Radhika Gupta studied at the American International School. Her school classmates hailed from rich families who engaged in expensive hobbies such as horse riding etc. When she expressed her desire to inculcate a hobby, her parents insisted that she learn bridge. She described herself as a simple girl who studied very hard and played bridge since the age of 13.
• While applying to Ivy League colleges in America, she realized that her humble background may not be particularly helpful in fetching an admission. When she asked her mother what she would say, considering the fact that she wasn’t an Olympic medalist, a musical award winner or unlike any of the typical students admitted into Ivy Leagues, her mother advised her to stay true to herself. Her honesty and simplicity came off as a breath of fresh air and Radhika was offered admission into the prestigious Wharton Business school.
• In an interview, she revealed that when she was being interviewed for a job at Mckinsey by a senior partner that conversation lasted for 90 minutes during which she spoke about Bridge for 85 minutes. Turns out the senior partner Diane was herself a bridge champion who had participated in numerous tournaments. Fascinated by a young girl who played bridge since age 13, she was hired immediately. Radhika always insists on being true to oneself because there will always be some interested in our story.

Lessons We Can Learn From Radhika Gupta

Despite her disability Radhika Gupta has shown her capabilities and set an example. She used her weakness and accepted her flaws and this itself became her biggest strength. Truth and Honesty are the qualities which aided her for her growth. In her book named “ Limitless” in which she has thrown light on her hardships, how she braved multiple rejections and ignored the crushing comments. So instead of being depressed about disabilities follow your dreams and also learn from Real life examples of such great personalities. Here are six important messages She gave through her life

• Start taking no for an answer; it will probably do you good
• Embrace feedback and work towards improving yourself
• Begin taking risks, or else you’ll lose yourself to the everyday grind
• Kickstart conversations that you want to have; without doubting yourself
• Admit if you don’t know something and reach out for help
• Strive for work-life integration instead of making work-life ‘perfect’

Nikesh Arora has set a substantial remark as he entered the billionaires list even though being a non-founder tech executive. He worked with the biggest companies in the world and is one of the best paid executive. Mr. Nikesh Arora is an electrical engineer graduate from IIT-BHU and has created a special place for himself in the tech world with companies paying high packages to retain talent like him. Let us understand his journey in detail.

Who is Nikesh Arora??

Nikesh Arora is an Indian-American Business Executive. He was born to an Indian Air Force officer Mr. Jagdish Kumar Arora. He was born on 9^th February 1968.Nikesh Arora did his schooling from The Air Force School in Delhi. He graduated from IIT (Indian Institute of Technology) Varanasi with a bachelor’s degree in Electrical Engineering. This took place in 1989. After that he went to Boston College for MS degree and also went to Northeaster University to get a degree in MBA. He got a CFA designation after that.

Family Life

• Nikesh got married to Ayesha Thapar who is Delhi based girl and CEO of a company named Indian City Properties Ltd (ICPL), She has studied from Wellesly College with Economics as her subject.
• She moved back in India in 2008 and joined ICP.
• Ayesha is also a director of Integrated Realty Private Ltd and The Waterbase Ltd. Ayesha loves painting and also has a line of jewelry in her name.
• Before her stint in ICP she had launched her own business. She was previously the CEO of a Telecom VOIP company.
• This was in US for a period of 5 years. Ayesha is the great granddaughter of Karam Chand Thapar, who is the founder of Thapar Group. Ayesha is the daughter of Vikram Thapar, who is Managing Director and Chairman of KCT Group of Companies. Nikesh has a daughter from her previous marriage. Ayesha gave birth to Nikesh’s son in June 2, 2015. They named him Kiaan.

Career

• Arora’s career started with Fidelity Investments, Putnam Investments and Deutsche Telekom. He began his career in 1992. His entrepreneurial spirit led him to establish T-Motion in 2000, a subsidiary of Deutsche Telekom, which was eventually integrated into T-Mobile’s core services.
• As a testament to his versatility and leadership skills, he also served as the Chief Marketing Officer of the T-Mobile International Division of Deutsche Telekom AG. In 2004, Arora joined Google and rapidly climbed the corporate ladder, holding multiple senior leadership roles.
• He served as the Vice President of Europe operations, President of Europe, Middle East and Africa, and finally, the Senior Vice President and Chief Business Officer.
• He also worked for the Colgate-Palmolive Company as the Board of Directors from March 2012. He eventually resigned it in 2014. He had worked for Google for a period of 10 years. He left Google in the year 2014, resigning from the post of Chief Business Officer and Senior Vice President. Arora was paid an amount of $75 million to lead the Softbank operations.
• This kind of pay package made him the world’s 3rd richest executive. Softbank is a Japanese Internet Corporations and multinational telecommunications. On 21st June 2016, he announced his abrupt resignation from the company.

Google’s Highest Paid Executive in 2012

• Nikesh Arora became the highest-paid executive of Google in 2012 when the company hired him on a $51 million package. By the end of his time at theSilicon Valley-headquartered company, Nikesh Arora collected stock awards worth at least $200 million.
• In 2004, he joined Google. In Google, he served as Vice President, Europe Operation from 2004 to 2007, from 2007 to 2009 President Europe, Middle East, and Africa and President, Global Sales Operations, and Business Development from 2009 to 2010.
• From January 2011 to 2014, he was Senior Vice President and Chief Business Officer at Google Inc. In July 2014 he resign from the post of Senior Vice President and Chief Business Officer in July 2014.

Palo Alto Networks-

• After achieving one of the most dignified positions in SoftBank, Nikesh Arora chose to resign. He joined Palo Alto Networks in June 2018 and currently serves as the CEO and Chairman of the company. Palo Alto is a Santa Clara based company founded in 2005.
• The main products of the company are cybersecurity and cloud computing. After Arora joined the company, it made the biggest acquisitions in its history. In 2018,Palo Altoranked 8^thin Forbes Digital 100. The company acquired Demisto for $560 million,
• Twistlock for $410 million and recently Aporeto for $150 million in 2019. Nikesh Arora is a great leader. Under his leadership, Palo Alto is doing excellent. He has proved himself as a truly skilled individual.

Nikesh Arora-The Rising Star

• Palo Alto aspires to make $ 100 billion cybersecurity company under the leadership of Mr. Nikesh Arora. Under his direction the business saw a market capitalization increase of $ 27.8 billion over the course of three years returned $3.6 billion to shareholders and achieved record sales of $ 5.5 billion in FY 2022.
• During the Covid-19 pandemic, Arora oversaw Palo Alto and made the decision to forgo $ 1 million of his income. According to Palo Alto Networks’ financial report, Arora received pay totaling more than $33.5 million over the previous two years.
• According to the average USD-INR conversion rate for July 2021, Nikesh earned a total of $23.28 million in 2021, which is equivalent to roughly Rs 174 crores for the fiscal year that ended in July of that year.
• Nikesh made $10.40 million in 2022, which translates to Rs 82.7 crore using the same translation average for July 2022. Over the past two years, Nikesh has received compensation totaling more than Rs 256.1 crore, increasing his wealth by more than Rs 35 lakh every day.

Success Lessons Nikesh Arora Taught The World

• Arora, an alumnus of BHU, in his speech once, said, “It was the time of exponential revolution, where millions of information are generated within minutes, and in order to keep ourselves updated to the fast moving world, we need to adapt to innovative learning.” Also he added “To fulfil our dreams, one must have the will to take up challenges.
• Nikesh Arora is one of the rarest non-founder billionaire tech CEO. In his last three positions—starting at Google, moving on to SoftBank, and ending in Palo Alto—he became the most highly compensated executive on Wall Street, and one of the most highly compensated employees in the world.
• According to estimates, his personal fortune was estimated at half a billion dollars, receiving about $50 million in one successful year at Google, and according to a report in Reuters, making around $200 million in two years at SoftBank.
• In Palo Alto Networks, Arora received a salary package worth $130 million, most of which consisted of options and shares. The sharp jump in Palo Alto stock since he took office has also made his equity compensation extremely valuable, making him even richer.
• Nikesh Arora Believes that “ the key to the success of the method is identifying the right products, then retaining the employees of the acquired companies so that the product continues to develop”.
• In Palo Alto Networks they realized that the key to the success of the process is creating interest, providing independence, and money. A lot of money.
• Despite the rapid growth and high revenues, Palo Alto only turned a profit in the last quarter, because historically stock allocation expenses weighed on its reports. But these shares, which were generously distributed to the employees and also increased more than threefold in the last five years, greatly enriched the founders and employees of the acquired startups.

Yet again we have got another CEO who became a Billionaire without being the founder of the company! Yes his name is Navil Noronha who is the long serving CEO of Avenue Supermarts, the company behind the innovative supermarket chain DMart. The listed firm which is run by Noronha has a market cap of over Rs 2, 36,800 crore. DMart’s rise propelled by Noronha’s Strategy has made Damani the retail king of India and one of the country’s richest men and net worth of over Rs 1,34,200 crore. Let us understand Mr.Navil Noronha success story in detail.

Who is Mr. Navil Noronha??

• Ignatius Navil Noronha, hailing from Mumbai, was born and raised in a Christian household. Growing up in the vibrant city, he embraced his Christian upbringing and values, which have played a significant role in shaping his life and guiding his actions. Ignatius, is happily married to Kajal Noronha, and together, they form a loving and supportive couple.
• Their marriage is a testament to their strong bond and shared commitment to each other. As partners in life, they navigate the ups and downs together, offering mutual support and companionship. Kajal Noronha’s presence in Ignatius’ life is a source of joy and stability, creating a harmonious home environment. Their partnership is built on trust, love, and shared values, making them a formidable team both personally and professionally.

Education and Career

• Navil Noronha holds a science degree from SIES College of Arts, Science, and Commerce and a management degree from the Narsee Monjee Institute of Management Studies (NMIMS). His journey at DMart started when he was in his twenties. Hired by renowned investor Radhakishan Damani, Navil Noronha quickly proved his worth by contributing significantly to the retail giant’s strategy and operations.
• Before joining DMart’s parent company, Avenue Supermarts Limited, Navil Noronha spent eight years at Hindustan Unilever, where he worked as a sales executive and gained valuable experience in market research and modern trade. His experience and insights were instrumental in DMart’s growth trajectory.
• Currently serving as the CEO of DMart, Navil Noronha continues to propel Avenue Supermarts Limited to new heights. He is often referred to as the ‘Management GOAT (Greatest of All-Time)’ by the business community for his pioneering strategies that have reshaped the FMCG sector. Notably, his 48-hour supplier policy has been hailed as a game-changer.

A Humble Titan in the Business World

• In the bustling landscape of India’s business elite, where fortunes are made and empires rise, Ignatius Navil Noronha stands as a beacon of humility and success. With a net worth exceeding Rs 6500 crore and a luxurious Rs 70 crore home to his name, Ignatius defies convention as a self-made man who eschews the traditional trappings of corporate power.
• Despite his immense wealth and influence, Ignatius remains grounded, earning the respect and admiration of peers and colleagues alike for his intelligence, hard work, and unwavering humility. Despite his immense success, Ignatius remains refreshingly humble, shunning ostentatious displays of wealth and power. His office space, though undoubtedly sophisticated, is notably smaller than those of other CEOs of large corporations—a deliberate choice that reflects his unassuming nature and focus on substance over style. Instead of flaunting his riches, Ignatius channels his energies into driving innovation, fostering collaboration, and creating value for his organization and stakeholders.
• Within business circles, Ignatius is revered not only for his financial prowess but also for his integrity, ethics, and commitment to excellence. He leads by example, inspiring those around him to strive for greatness and embrace a culture of continuous improvement. Despite his busy schedule and myriad responsibilities, Ignatius remains accessible and approachable, embodying the ethos of servant leadership and fostering a culture of inclusivity and respect.
• Beyond his professional achievements, Ignatius is deeply committed to philanthropy and social responsibility. He recognizes the importance of giving back to society and is actively involved in various charitable initiatives aimed at empowering underprivileged communities, promoting education, and advancing environmental sustainability. Through his philanthropic endeavors, Ignatius seeks to create a lasting impact and leave behind a legacy of compassion and generosity.
• In a country teeming with successful businessmen, industrialists, and entrepreneurs, Ignatius Navil Noronha stands as a testament to the transformative power of humility, integrity, and hard work. His journey from humble beginnings to corporate titan serves as an inspiration to aspiring leaders everywhere, reminding us that true success is not measured by wealth alone but by the positive impact we make on the world and the lives of others. As Ignatius continues to chart new territories and inspire future generations, his legacy will endure as a shining example of leadership excellence and moral fortitude.

Lessons we can learn from Ignatius Navil Noronha

• Relentless focus on the company objectives.

Navil Noronha had the ability to focus on the right tasks and inevitably speed up the process of reaching any goal. He replaced every wasted minute in your day by focused action and this helped him to get where he wanted to in half the time.

• Relentless focus on execution and in making DMart – Avenue Supermarts Ltd loved by consumers.

The CEO of DMart, Ignatius Navil Noronha, stands out as one of India’s wealthiest individuals. Although he hasn’t founded a company or directly engaged in business activities, his leadership and strategic acumen have played a crucial role in DMart’s remarkable success.

• Clarity of Positioning and Value proposition.

A value proposition is a concise statement that outlines theunique benefitsand value that a product or service offers to its target audience. Itserves as a powerfultool to differentiate your brand from competitors andconvince customerstochoose your solutionover others. Due to clarity of position and value proposition DMart-Avenue Supermarts Ltd increased its conversion rate and improved the life of target audience. His

• Ensuring every individual and every process is motivated and designed to deliver on the Purpose and Vision.
• Relentless focus on making Profits.
• Apart from this Mr. Navil Noronha has never given any flashy claims, interviews….. Just rolling up their sleeves and executing day in and day out. Also he has always been committed during Good and not so good times.

Ronnie Screwvala – Biography

• Ronnie Screwvala full name Rohintan Soli Screwvala is an Indian Entrepreneur and film producer. He co-founded upGrad which is an online education in the higher education and specialization sector.
• Apart from this he Ronnie pioneered cable television, built a Media and Entertainment Conglomerate (UTV Software Communications) that partnered with News Corp, 20^th Century Fox, The Walt Disney Company and Bloomberg.
• From 2013 onwards, he and his wife scaled their Non-Profitthe Swades Foundationwhose goal is to work with a million people in rural India.
• He also built a Sports company (U Sports) spanningFootball/E SportsandKabaddi,re-entered the media content space to build a creative content company in Movies and Digital Content (RSVP), authored a Book titledDream with Your Eyes Openand through his investment companyUnilazer Ventureshe has been a significantprivate equityinvestor in Indian start-ups with early stage investment and significant minority stakes.

Early Life and Education of Ronnie Screwvala

• Ronnie Screwvala was born and brought up in Mumbai, India.He belongs to the Parsi family. His father worked as an executive in the firm of British J L Morrison and Smith& Nephew.
• Ronnie completed his schooling and then started college at Cathedral John Coonon School and Sydenham College in Mumbai.
• During his schooling life, Screwvala showed a keen interest in theatres. He also started playing in some professional plays conducted in the Bombay Theatre as a hobby. Some of the notable roles had been played by Ronnie Screwvala in Death of a Salesman and Othello by Shakespeare.

Ronnie Screwvala Struggle Story: Cable Guy to Media Giant

• Ronnie Screwvala began as an entrepreneur, initially as a toothbrush manufacturing company. His first foray into entertainment industry was in the year 1981.
• In this year he pioneered cable TV in India and this was a significant move at a time when the country had only one terrestrial channel i.e. Doordarshan. In 1990, Screwvala founded UTV Software Communications which made him leading media Conglomerate.

Ronnie Screwvala – UTV Group

• In 1990 he co-founded UTV along with his wife ZarinaScrewvala and DevenKhoteand become first independent production house in Indian Entertainment industry. Initially UTV started producing advertisem*nts and corporate films and soon started producing quiz shows and short films for Doordarshan. He is a self-made man and an iconic figure in the networking media industry.
• Soon UTV started producing shows for broader audiences, it is credited for first reality show in India named SaanpSeedi and first daily soap opera Shanti in Indian television. His channel UTV featured Japanese animated shows and other regional language shows.
• He has launched many other television channels such as UTV Bindass, UTV Action, UTV World Movies, UTV Movies, etc. In 2007, his company also undertook making of gaming software and content. He has co-produced movies like ‘I Think I Love My Wife’, ‘The Happening’ and ‘The Namesake’. These made huge success.

Ronnie Screwvala – Life as an Entrepreneur

• Ronnie Screwvala’s childhood was at Grant Road, next to Novelty Cinema, also he belonged to lower-middle-class—they weren’t wealthy, but they had what they needed. They lived in an apartment situated on the first floor of the five-storey Arsiwalla building, nearly a century old and in constant need of repair.
• It had one long corridor with three rooms that held his brother, parents, two aunts and grandparents. The apartment’s sleeping area was indistinguishable from its other rooms. He lived there until the age of sixteen, privileged enough to go to a school where most of his classmates came in cars while he waited forty-five minutes for the B.E.S.T. bus to arrive.
• Instead of undermining his confidence, his childhood instilled in him the philosophies and ways of thinking that stuck with him later when opportunities kicked into warp speed. Risk was a word he knew, but couldn’t define. He was keen to observe adults who traded goods on the street every day, shouting offers back-and-forth. Ideas washed over me like the July monsoons.
• That ecosystem spurred his first entrepreneurial experience. All the local kids from the building got together and hung a drop curtain, and, with handbills, invited audiences for the four play-cum-concerts they put on in the evenings, rotating the performances in our various living areas. He enjoyed bonding with his friends, and their parents were thrilled to have their kids doing something productive. Everybody in the building paid to watch us. And at the age of ten, he earned his first round of money.
• Those first shows led to other projects, each a little more complex than the last. His family’s small veranda overlooked the cinema—at that time one of the city’s top movie halls. Because no one had television then, red-carpet premieres were a huge spectacle.
• Bollywood advertised its films by gathering everyone for twice-a-month events and waiting for the stars to come out. Newspapers did the rest, splashing flashy front- page photos of the industry’s most glamourous personalities—Amitabh Bachchan, Jitendra, Rajesh Khanna, Sharmila Tagore, Helen, Nutan, Manoj Kumar, Waheeda Rehman and a host of others.
• The roads around their apartment were chock-a-block for every premiere, and their veranda was the ideal vantage point for anyone who wanted to see the glory of Bollywood. Realizing that there was a market for the balcony seats, he sold tickets to people who wanted to gawk and point at their favourite stars and snap pictures they’d proudly show their family and friends.
• He was tempted to make more money by offering snacks. His grandparents frowned upon food service, the first setback in his entrepreneurial career as a ten-year-old. Still, his parents humoured him and were pleased by his ambition—even if they drew the line at fifteen strange people on their veranda. These moments shaped his entrepreneurial spirit.

Unilazer Ventures

• Unilazer Ventures is a Mumbai-based private equity and venture capital firm founded in the year 1991 and specialized in early- and late-stage investments. Unilazer Ventures is a uniquely positioned Investor with deep experience in the fast growing Indian Consumer, Services and High Impact Sectors.
• The Venture is interested in any business that is part of the India Consumption Story which can build Brand and Scale, as well as high Impact Sectors like Agriculture, Health Care, Micro Finance and Education. Unilazer is promoted by First Generation Entrepreneur – Ronnie Screwvala.

RSVP Movies

• RSVP is a production house that has set itself up to be a tight unit of driven professionals that seek to make entertaining and substantive movies and digital content. RSVP Moviesis an Indianfilm productionand distribution company established byRonnie Screwvalain 2017.
• In 2017, Ronnie Screwvala entered the entertainment business with RSVP after his exit from UTV Motion Pictures and produced Love per Square Foot which was digitally released on Netflix in 2018. With a focus on content-driven cinema, RSVP Films has delivered hits like “Uri: The Surgical Strike,” “Sonchiriya,” and “Kedarnath.” Screwvala’s keen eye for talent and storytelling, coupled with his passion for cinema, has earned RSVP Films a reputation for delivering high-quality and socially relevant films that resonate with audiences.

U Sports

• After owning the Kabaddi franchise U-Mumba, in the first edition of the Pro Kabaddi League, Ronnie Screwvala owned U Sports, which is the sport division arm of Unilazer Ventures, has now forayed into another sports playground- football.
• The company owned by Screwvala has launched a football training and academic programme ‘U-Dream’, to help develop Indian football players who are promising enough to place India on the professional football circuit. With collaborative guidance of Bundesliga, U Sports has partnered with TSG 1889 Hoffenheim for the first edition of U-Dream football.
• The programme plans to encourage participation from talented football players of 13 or 14 years of age, in the first year where the focus is to transform young talent into a pro-team of Under-17 footballers. However, the search will widen to Under-13, Under-15 and Under-17 categories from the year 2016 onwards.
• According to U Sports CEO Supratik Sen with over 20,000 football players across the globe earning more than $ 1 million a year, suggests that there are very few careers as exceptional as a professional footballers.

upGrad

• upGrad – started in 2015, is a pioneer in the online education revolution, focused on powering career success for a global workforce of over 1.3 billion.
• It is one of the few Integrated Life Long Learning Tech Companies in the world, spanning the college learner to the working professional from the age group of 18 to 55+ years and across undergrad courses, campus & job-linked programs, studying abroad, short form to executive programs to Degrees, Master’s and Doctoral, with a learner base of over 3 million across 100+ countries and over 300 university partners and robust enterprise business with a client base of 1000 companies worldwide.
• As the founder of upGrad, he has revolutionized online learning in India, empowering thousands of learners to upskill and thrive in the digital age.

The Swades Foundation

• The Swades Foundation aims to bring positive changes in the way of life in rural villages by implementing projects on education, water & sanitation, health & nutrition and economic development.
• It believes in partnering with the villages to make them independent and then encouraging the community to chart out its own path of development. Ronnie Screwvala and his wife Zarina Screwvala non-profit, Swades Foundation, has been providing grassroots interventions related to education, skilling, health care, water security and livelihoods to the people

Ronnie Screwvala Net Worth and Investments

• Ronnie Screwvala’s net worth stands at a staggering $1.55 billion, making him the richest man in the Indian film industry and a beacon of inspiration for entrepreneurs and dreamers alike. His legacy is one of ambition, resilience, and innovation, and his impact on Indian cinema and entrepreneurship will be felt for generations to come.

Ronnie Screwvala Family

• Screwvala is married toZarina Mehta, is his second wife. Zarina has been a co-founder in the media company UTV they founded, and now is the co-Trustee of their Philanthropic foundation-The Swades Foundation. They live inBreach Candy, South Mumbai.
• His first wife,Manjula Nanavatiand Screwvala have one daughter,Trishya Screwvala.

Ronnie Screwvala Personal and Professional Achievements

Ronnie Screwvala’s achievements include:

• Named on Esquire’s List of the 75 Most Influential People of the 21st Century.
• Ranked 78 among the 100 most influential people in the world on the Time 100 (2009).
• Listed among 25 Asia’s Most Powerful by Fortune Magazine.
• Titled the Jack Warner of India by Newsweek.
• Featured at cover page of Forbes magazine (Oct 2020 edition).
• Nominated for BAFTA Award for Best Non-English Film for Rang De Basanti.
• Won Best Popular Film Providing Wholesome Entertainment at National Film Awards (2007) for Rang De Basanti.
• Won Best Film by Film fare Awards (2007, 2009, and 2013) and IIFA Awards (2007, 2009, and 2013) for various films.

Ronnie Screwvala – Investments besides UTV

The latest to join the list of investments from Screwvala is the celebrity fan engagement portal TrueFan. The six-month-old start-up founded by Nimish Goel, Nevaid Aggarwal, and Devender Bindal has raised $4.3 million in seed funding by investors like Ronnie Screwvala, Mayfield India, and Saama Capital. Ronnie Screwvalahas invested in8rounds.Their most recent investment was inWithout(Angel Round)on Feb 20, 2024

• Some notable companies in their investment portfolio includeLenskart,TrueFanandLido
• Their investments are primarily in Consumer, Retail and 6 more sectors
• Their investment portfolio includes companies in India and United Kingdom

Ronnie Screwvala – Shark Tank India

• Ronnie Screwvala joined the panel of sharks for Season 3 of Shark Tank India. Screwvala brings his wealth of experience and insights to the illustrious panel ofSharks.
• RonnieScrewvalahas completed the powerhouse panel of Shark Tank India Season 3, which includesAman Gupta(Co-Founder and CMO of boAt), Amit Jain (CEO and Co-founder of CarDekho Group, InsuranceDekho.com), Anupam Mittal (Founder and CEO of Shaadi.com – People Group), Namita Thapar (Executive Director of Emcure Pharmaceuticals LTD),Vineeta Singh(Co-Founder and CEO of SUGAR Cosmetics), Peyush Bansal (Co-founder and CEO of Lenskart.com).
• It also includes Ritesh Agarwal (Founder and CEO of OYO Rooms), Deepinder Goyal (Founder and CEO of Zomato), Azhar Iqubal (Co-Founder and CEO of Inshorts),Radhika Gupta(MD & CEO of Edelweiss Mutual Fund), and Varun Dua (Founder and CEO of ACKO).

Lessons from Ronnie Screwvala’s Journey

1. Embrace failure: “Failure is just a temporary pause, not the end.”
2. Stay curious: “Be curious, ask questions, and never stop learning.”
3. Adapt to change: “Change is the only constant. Adapt or perish.”
4. Focus on the long term: “Short-term gains should never compromise long-term vision.”
5. Build relationships: “Networking and relationship building are key to business success.”
6. Empower your team: “A strong, motivated team can move mountains.”
7. Be innovative: “Innovation is the lifeblood of business.”
8. Be persistent: “Persistence pays off, no matter how long it takes.”
9. Keep your ego in check: “Ego can be your worst enemy or your best ally.”
10. Stay humble: “Success is temporary, humility is forever.”

Conclusion

Ronnie Screwvala’s bold stance is a reminder that success is not just about accumulating wealth but also about using that wealth to drive positive change and make a meaningful impact. As he continues to push the boundaries of what’s possible, Ronnie Screwvala’s legacy will remain a testament to the power of ambition, innovation, and relentless pursuit of excellence.

Vineeta Singh – A woman for whom even sky is not the limit has shown the world what importance does beauty products have and how it boosts confidence among women who aspire for good looks and personality. Sugar Cosmetics which is one of the top cosmetic brands in India is founded by Vineeta Singh. Today Sugar Cosmetics is the choice for strong, independent women. The design is strong and quality is very high. Sugar cosmetics is committed in creating products that are perfect fit for every Indian skin tone throughout all seasons and throughout calendar. Let us understand Vineeta Singh and her success Journey in detail.

Vineeta Singh – Biography

Vineeta Singh Success story is full about her persistence and resilience. She was only 23 when she declined Rs 1 crore job offer from an investment bank just to start her entrepreneurial journey. Now she owns a brand $ 85.5 million in funding and Rs 500 crore annualized revenue. She is one of the most loved Judges in Shark Tank India show because of her leadership skills and consistent efforts to achieve success. While chasing terrifying goals, Vineeta Singh is motivated to create a successful empire doing what she is passionate about-building the best company for women to work at.

Early Life and Education of Vineeta Singh

Vineeta Singh was born in Delhi, India in 1991. She finished her schooling at the Delhi Public School, R.K. Puram in Delhi. Vineeta received her undergraduate degree in the course of Electrical Engineering from the Indian Institute of Technology Madras in 2005. Later she got herself into IIM Ahmedabad to pursue her MBA in 2007.

Vineeta Singh Net Worth and Investments

Vineeta Singh is a terrific example for aspiring female entrepreneurs. She has not only earned success for herself but she serves as an inspiration to many aspiring founders. She appears in Shark Tank India as Shark and has invested in the following few start-ups.

Vineeta Singh Family

• Vineeta Singh was born in the year 1983. She is 40 years old. She was born and raised in Delhi. Her mother holds a Ph.D. while her father Tej Singh is a biophysicist at the All India Institutes of Medical Sciences. Vineeta Singh met her husband Kaushik Mukherjee when she was pursuing MBA at IIM. The couple got married in 2011.
• Kaushik serves as the CEO of Sugar Cosmetics. This fact might surprise many readers. But Vineeta had a mind-set of a businesswoman from her childhood. As a child, she made a magazine together with her friend and sold the magazine from one door to another for Rs 3.

Vineeta Singh Career

• Vineeta Singh is the co-founder and CEO of Sugar and Fab Bag. FabBags is a grooming subscription service and was established in the year 2012. Her first summer job at Deutsche Bank was as a student in 2006. With her experience in banking and financial industry has earned her position of Director for Quetzal Verify Private Limited. She continued in that position for five years.
• Vineeta Singh founded Sugar after failing to launch two previous firms and turning down a job offer of “one crore” from a multinational investment company. Vineeta Singh founded her third start up Sugar Cosmetics with her husband Kaushik Mukherjee.
• In the year 2012 when sugar cosmetics was created, defeating a slew of national and global competitors to become India’s fastest growing cosmetics brand in just five years. The company has over 2500 locations in over 130 cities and generates more than Rs 100 crores as revenue through its sales.

Vineeta Singh Story of Sugar Cosmetics

• In the year 2010 Vineeta and Kaushik start their first business, a fashion e-commerce company but fails due to lack of funding and experience. In the year 2011 they started their second business a consulting firm , but that too failed due to lack of clients.
• In the year 2012 they decided to start cosmetics Brand Company and founded Sugar Cosmetics. They bootstrapped the business with their own savings and took a loan from Vineeta’s father. In the year 2013, Sugar Cosmetics launched its first product line, a range of crayon lipsticks which was hit with customers and the company started to gain traction. Sugar started achieving profitability.
• But the company still faced many challenges such as competing with the already established brands. In the year 2015, Sugar Cosmetics raised its first round of funding from a group of Angel Investors. The company used its funds for expanding its product line and marketing efforts. In the year 2016 Sugar Cosmetics partnered with Nykka and Amazon to sell its products.
• The company also launched its e-commerce platform. In the year 2017, Sugar Cosmetics raised its second round of funding from a group of venture capitals. In the year 2018, the company launched its first offline store in Mumbai. The company expanded its product line to include skincare and haircare products. In the year 2019, its third round of funding from a group of private equity investors.
• The company used the funds to expand,, marketing efforts and launched new product lines. In the year 2020, Sugar Cosmetics became one of the popular cosmetic brand among Indian Millennials. The Company also launched its first International store in Dubai.
• Sugar Cosmetics raised its fourth round of funding from a group of global investors. In the year 2022, Sugar Cosmetics becomes one of the leading cosmetic company in Asia and its first flagship store in New Delhi.

Sugar Cosmetics – Name, Tagline and Logo

• The company began its journey as an online supplier of Natural, Paraben free cosmetics. Due to the extraordinary black and white colour combination the visual identity of an Indian cosmetic business is beautiful and refined while also seeming bold and confident.
• The company’s logo is made up of a wordmark with an emblem on left side which serves as the brand signifier and appears on all of the company cosmetics. The Slogan of the Company says “Rule The World, One Look At A Time!!!”

Sugar Cosmetics – Business Model

Sugar Cosmetics Operates as Direct to Consumer(D2C) Business Model. It uses Omni channel approach for running its business. By using this strategy Sugar cosmetics takes advantage of other e-commerce market places such as Amazon and Nykaa to increase its accessibility and reach. The brand emphasizes its global presence through a variety of revenue streams, including both domestic sales in India and international export sales.

Sugar Cosmetics’ business model using these nine building blocks.

1. Customer Segments

• Sugar Cosmetics identified a significant gap in the market for high-quality, affordable, and cruelty-free makeup products catering to young, urban women. Their primary target audience consists of millennials and Gen Z consumers who are conscious of their product choices, and are likely to prioritize ethical and environmentally friendly products.
• By focusing on this customer segment, Sugar Cosmetics has positioned itself as a brand that understands and caters to the unique preferences of its target market.

1. Value Propositions

• Sugar Cosmetics’ value proposition revolves around offering high-quality makeup products that are affordable, cruelty-free, and vegan. The brand emphasizes innovation, using customer feedback to continually improve and expand its product offerings.
• In addition, Sugar Cosmetics is committed to staying on top of the latest beauty trends, ensuring that its customers have access to the most up-to-date makeup options.

Some of the key value propositions that set Sugar Cosmetics apart from competitors include:

• Cruelty-free and vegan products
• Affordable pricing
• High-quality, long-lasting makeup
• On-trend product offerings
• A comprehensive range of makeup products

Channels

Sugar Cosmetics utilizes a multi-channel approach to reach its customers. The brand’s products are available through various channels, including:

• Online: Sugar Cosmetics’ official website, as well as popular e-commerce platforms such as Amazon, Nykaa, and Myntra.
• Offline: The brand has also established a presence in brick-and-mortar stores, partnering with retailers like Lifestyle, Shoppers Stop, and Health & Glow. They also operate their own exclusive kiosks in shopping malls.
• This omni-channel approach allows Sugar Cosmetics to be accessible to a wide range of customers, catering to their varying shopping preferences and ensuring that their products are easily available to their target market.

Customer Relationships

• Sugar Cosmetics has built strong customer relationships through effective communication, customer support, and community engagement. The brand uses social media platforms such as Instagram, Facebook, and YouTube to share product information, beauty tips, and tutorials. This helps them establish a connection with their audience and keep them engaged with the brand.
• Customer support is another crucial aspect of building customer relationships. Sugar Cosmetics ensures that their customers receive prompt and helpful support through email, phone, and social media channels.
• They also offer a loyalty program called “Sugar Circle,” which allows customers to earn reward points on purchases and redeem them for discounts and exclusive offers.

Revenue Streams

• Sugar Cosmetics’ primary revenue stream comes from the sale of its makeup products, both online and offline. The company generates revenue through its official website, as well as through partnerships with e-commerce platforms and brick-and-mortar retailers. In addition, the brand’s exclusive kiosks also contribute to its overall revenue.

Key Resources

• Sugar Cosmetics’ key resources include its product development team, supply chain, and marketing efforts. The company relies on a strong product development team to create innovative, high-quality makeup products that meet the needs of its target audience.
• The supply chain, which involves sourcing cruelty-free and vegan ingredients and manufacturing the products, is another critical resource for the brand.
• Additionally, the company’s marketing efforts play a significant role in building brand awareness and driving sales. Sugar Cosmetics invests in digital marketing, social media campaigns, and influencer partnerships to reach its target audience and promote its products effectively.

Key Activities

Some of the key activities carried out by Sugar Cosmetics include:

• Product development: Designing and creating innovative, high-quality makeup products that cater to the needs of their target audience.
• Marketing: Implementing marketing strategies to build brand awareness, engage with customers, and drive sales.
• Supply chain management: Managing the sourcing, production, and distribution of products to ensure the highest quality and ethical standards.
• Customer support: Providing prompt and helpful support to customers through various channels to address their concerns and queries.
• Continuous improvement: Using customer feedback and market research to identify areas for improvement and expansion, ensuring that the brand stays relevant and competitive.

Key Partnerships

Sugar Cosmetics has established key partnerships to help them grow and expand their business. Some of their key partners include:

• E-commerce platforms: The brand has partnered with popular e-commerce platforms such as Amazon, Nykaa, and Myntra to increase product visibility and sales.
• Retailers: Sugar Cosmetics has formed partnerships with retail stores like Lifestyle, Shoppers Stop, and Health & Glow to make their products more accessible to customers.
• Influencers: Collaborating with beauty influencers and bloggers has played a significant role in promoting the brand and its products to a wider audience.
• Manufacturers and suppliers: Ensuring that they work with ethical manufacturers and suppliers who share the brand’s commitment to cruelty-free and vegan products.

Cost Structure

• Sugar Cosmetics’ cost structure includes expenses related to product development, manufacturing, marketing, and distribution. The company invests in research and development to create innovative products and ensure they meet the highest quality standards.
• Manufacturing costs include sourcing cruelty-free and vegan ingredients, as well as production expenses. Marketing and distribution costs involve promoting the brand and its products and delivering them to customers through various channels.
• Sugar Cosmetics has successfully disrupted the beauty industry with its unique business model that prioritizes innovation, accessibility, and ethical production. By using Alexander Osterwalder’s Business Model Canvas, we can see how the brand has strategically aligned its resources, activities, and partnerships to deliver a compelling value proposition to its target customer segment.
• The company’s focus on cruelty-free, vegan, and affordable products has resonated with its audience, contributing to its rapid growth and expansion.
• As Sugar Cosmetics continues to evolve, it is crucial for the brand to remain agile and adaptable, anticipating market trends and customer preferences. By staying true to its core values and leveraging the Business Model Canvas framework, Sugar Cosmetics can maintain its competitive edge and continue to make a significant impact in the beauty industry.

Sugar Cosmetics – Revenue Model

• The Sugar Cosmetics operating income climbed by 22% during the course of the same fiscal year, rising from Rs 103.71 crore to Rs 126.36 crore. Domestic sales which accounted for 93.1% of the company’s sales and increased by 34.1% from 87.7 crore to Rs 117.61 crores during FY21 were in charge of the company’s overall collections.
• However Sugar Cosmetics export by 45.4% as a result of the pandemic related travel and freight interruptions that the company experienced.
• The crew was able to obtain eyeliner and a kohl pencil from a German manufacturer despite having limited budget. The ‘ Made in Germany’ emblem gave customers peace of mind and helped SUGAR launch successfully. SUGAR at that time decided differently and created a matte version because it thought its customers would prefer a product they could use every day. This turned out to be successful. Throughout pandemic SUGAR Cosmetics built few new brand owned retail locations, prioritising hygiene and safety for its customers. The company is concentrating on growing its mobile app which has more than 1M app installations is less than a year, in order to boost its direct to consumer channels.

Sugar Cosmetics – Challenges Faced

• Unlike, its brand name the road for Sugar was not sweet initially. Juggling between new motherhood and her entrepreneurial dream Vineeta led to a hectic schedule. Business and entrepreneurship generally perceived as male domain hindered Vineeta to source funds.
• Once she met an investor who refused to talk to her since he wanted to have the business talk with a ‘man’. There were several sleepless nights when one hand had office files and the other held a new-born baby. Like every other retail or e-commerce brand, Sugar Cosmetics too faced the problem of managing the credit cycle since it is the key to keeping the working capital cycle to a bare minimum to ensure efficient capital use and rotation.
• They had set up a separate unit that monitored the credit cycle daily to manage finances efficiently. These struggles were part of the venture’s success that rose to become the best lipstick brand. It took 5 years for Sugar Cosmetics to build a team of 1500 of which 75 percent constitute women

Sugar Cosmetics – Funding and Investors

Sugar Cosmetics – Mergers and Acquisitions

The brand is set to venture into new categories, with an imminent entry into the hair care segment following its acquisition ofENN Beauty. Additionally, Singh shares the company’s vision of filing for anIPOby2024 or 2025

Sugar Cosmetics – Products and Launch

The “FAB BAG”

• Kaushik Mukherjee and Vineeta Singh founded the cosmetic subscription service “FAB BAG” in 2012, offering a monthly surprise beauty box for Rs 599. Each box contained a curated mix of five products from the categories of cosmetics, bath and body, skincare, haircare, and fragrances, predominantly featuring new and lesser-known brands sourced internationally.
• The FAB BAG concept provided the team with valuable insights, creating an environment to discern and understand their target market. SUGAR, a brand associated with FAB BAG, aimed to establish itself as a premium brand. The company’s growth strategy relied on enticing mass consumers to upgrade while simultaneously encouraging luxury clients to explore more cost-effective options.

Premium Products

• Despite operating on a constrained budget, the team at SUGAR strategically acquired their initial products—an eyeliner and a kohl pencil—from a reputable German producer. The ‘Made in Germany’ label instilled confidence in customers, contributing to a successful launch for SUGAR.
• During a time when glossy eyeliners dominated the market, SUGAR opted to introduce a matte version, anticipating that their clientele would prefer a product suitable for everyday use. This eyeliner marked the beginning of several successful product launches for
• Recognizing the influential role of Instagram in beauty industry marketing, SUGAR leveraged popular trends such as ‘unwrapping videos’ and ‘before and after’ makeovers to enhance brand awareness.
• The brand’s approach to Instagram influencers is well-balanced, with notable instances like featuring Anmol Rodriguez, an acid attack survivor, in one of their impactful videos. Presently, SUGAR boasts an impressive following of over 5 million on Instagram, surpassing competitors like Color bar.

Unique Packaging

• SUGAR initially embraced a fully digital strategy, entrusting design partner opposite with the mission of crafting attention-grabbing packaging. Opposite opted for a distinctive graphic approach, utilizing low-poly drawings to set SUGAR apart from the prevailing minimal and predominantly black design trend in the industry.
• In August 2023, SUGAR Cosmetics introduced ‘Sugar Play, ‘an innovative makeup range specifically tailored for pre-teens and teens. This pioneering line combines vibrant colors with formulas curated for sensitive, youthful skin.

E-commerce Expansion: Shopify and Mobile App

• In 2015, SUGAR embraced e-commerce by launching a Shopify store, a platform it still actively operates. The company further expanded its digital presence with a successful app release in November 2019, garnering over 1 million downloads and an impressive 5-star rating on both Android and iOS. Social advertisem*nts remain a key focus for SUGAR’s online customer acquisition strategy.

Sugar Cosmetics – Partnerships

Strategic Collaborations: Amazon Prime Exclusive Kit

• In August 2023, coinciding with the highly anticipated second season of “Made in Heaven” on Amazon Prime, SUGAR Cosmetics proudly introduces the exclusive “SUGAR x Made in Heaven” cosmetics kit through a strategic partnership, offering customers a unique beauty experience.

Media Synergy: OMP India Partnership

• InJuly 2023, SUGAR Cosmetics entered into a collaboration withOMP India, entrusting the Mumbai-based agency with the comprehensive management of its media strategy. This partnership signifies a strategic move towards enhancing the cosmetic brand’s media presence and outreach.

Celebrity Alliance: Kareena Kapoor Khan Investment

• Renowned Bollywood icon Kareena Kapoor Khan has not only invested an undisclosed amount in Quench Botanics but also joined forces with Vineeta Singh and Kaushik Mukherjee, co-founders of Sugar Cosmetics.
• Becoming a co-owner of this new venture, Khan’s alliance aims to leverage Singh and Mukherjee’s expertise in the beauty e-commerce sector for the scaling of the emergingKorean skincare brand.

Sugar Cosmetics – Advertisem*nts and Social Media Campaigns

• In the#ShukarHainSUGARHain campaign, the story unfolds with Ranveer Singh nervously introducing his girlfriend Tamannaah Bhatia to his family. Tamannaah gives Ranveer a peck right before the family opens the door, capturing a touching and realistic moment in relationships.
• This endearing story deftly highlights SUGAR’s dedication to long-lasting, smudge-proof cosmetics while also fitting in with the brand’s USP of transfer-proof lipsticks. The advertisem*nt successfully draws in viewers on an emotional level while emphasizing how long-lasting SUGAR’s makeup is.

Sugar Cosmetics – Competitors

The top ten rivals in SUGAR Cosmetics’competitive groupcan be listed as:

Sugar Cosmetics – Future Plans

Global Expansion and Offline Presence

• SUGAR Cosmetics has successfully ventured beyond India, establishing a physical presence in Russia and an online footprint in the United States. The brand, founded in 2015, is committed to amplifying its offline standalone locations, aiming to surpass its existing 100 outlets.
• Recognizing that95%of trading in India still occursoffline,SUGAR Cosmeticsstrategically plans to leverage this market trend. The brand aims to expand and enhance its retail base, emphasizing improvedretail marketing and visual merchandising experiences.

Resilient Expansion Amidst Challenges

• During the pandemic, SUGAR Cosmetics prioritized safety and sanitation, opening five new brand-owned retail stores. The brand’s resilience is evident in its strategic focus on strengthening direct-to-consumer (D2C) channels, particularly by expanding its mobile app, which has garnered over 1 million installations in under a year

Vineeta Singh Shark Tank India

• Vineeta Singh became a household name after her appearances on Shark Tank India. She joined the show in Season 1 and continued to appear in Seasons 2 and 3. Apart from being a smart investor on the show, Vineeta gained attention for her resemblance to “Raju ki Maa” from the popular movie 3 Idiots. This led to many memes spreading on social media, which initially saddened Vineeta, but she later took it supportively.
• She also won hearts with her humor and playful mimicry of other sharks at different events. Throughout the show, Vineeta made several strategic investments, further enhancing her reputation as a savvy entrepreneur

Vineeta Singh Personal and Professional Achievements

• Established in 2015, SUGAR Cosmetics has risen as one of India’s leading cosmetic brands. Despite facing numerous challenges along the way, the brand has continuously evolved to achieve its current success.
• Vineeta’s unwavering dedication, resilience, and hard work have propelled her to become a successful female entrepreneur, earning her recognition through various awards. In addition to her entrepreneurial pursuits, Vineeta is also a sports enthusiast. She has actively participated in several marathons, securing medals for her accomplishments in the sporting arena.

Personal Achievements

Lessons to Learn From Vineeta Singh

• Two failed ventures have not stopped Vineeta from starting SUGAR cosmetics as her third venture. Vineeta`s entrepreneurial journey is a motivational story that can motivate anyone to get up and work. She always believed in herself, which eventually led her to where she is now, running one of thebiggest cosmetic brands in India.
• Vineeta has been featured on the cover of various business magazines. She was on the cover ofForbes as the Most Powerful Women in Business.In 2020 Vineeta Singh was named one of thetop 100 mindful women in the worldby The Economic Times 40 Under Forty.

The Supreme Court on October 16 said that the license fee paid by telecom companies to the Department of Telecom (DoT) after July 1999 would be treated as capital expenditure and not revenue expenditure. Now how would this decision impact the Telecom Sector In India???

Let us understand few concepts before we move ahead with the topic

What is Capital Expenditure??

• Capital Expenditure is the money an organization or corporate entity spends to buy, maintain or improve its fixed assets such buildings, vehicles, equipment or land. When a newly purchased asset or money is used towards extending the useful life of an existing asset such as repairing the machines/

What is Revenue Expenditure??

• Revenue expenditures are short term expenses used in the current period or typically one year. Revenue expenditures include expenses which are required to meet the ongoing operational costs of running a business.

Capital expenditures v/s Revenue Expenditures

• Capital Expenditure and Revenue expenditures are two types of spending that business have to keep operations going. But they are different. A capital expenditure refers to money spent by a business for expenses that will be used in the long term while revenue expenditures are used for short term expenses.

License Fee Paid By Telecom Companies

• Telecom operators areliable topayaround 3-5% and 8% of the Adjusted Gross Revenue (AGR) as spectrum usagechargesandlicence fees, respectively, to DoT. The National Telecom Policy, 1994 was replaced by theNew Telecom Policy, 1999. Under the new policy, telecom operators were required to pay one time entry fee and a variable license fee based on a percentage share of Annual Gross Revenue (“AGR”). Telecom operators claim variable license fee, payable annually, as a revenue expenditure.

Telecom company Bharti Hexacom Limited and the Income Tax (IT) Department

• Bharti Hexacom Ltd., (“Bharti Hexacom”), adopted the new Telecom Policy 1999 by paying a one-time license fee up to July 31, 1999. Then telecom license was granted to the company to establish, maintain, and operate cellular mobile services.
• Now When the Company filed the return of income for the Financial Year 2002-03, it claimed a tax deduction of INR 11.88 crores towards payment of variable licence fees, as a revenue expenditure. The primary contention of Bharti Hexacom was that the license fee paid on a revenue sharing basis should be classified as a revenue expenditure, and consequentially the company is eligible for a tax deduction while computing the taxable income.
• Tax authorities rejected Bharti Hexacom’s argument and categorised the variable license fee as capital expenditure and allowed a proportionate deduction under section 35ABB of the Income-tax Act, 1961 (“ITA”) – where a deduction can be claimed over the license period
• However, the Commissioner of Income-tax (Appeals) and Income-tax Appellate Tribunal ruled in favor of Bharti Hexacom by holding that annual license fee, calculated on the basis of annual gross value, and said that the variable license fee should be considered as revenue expenditure and deductible under section 37 of the ITA.
• The issue was put up before the Hon’ble Delhi HC, wherein the High Court divided the license fee into two periods. The fee paid for the period up to 31 July 1999, was considered as capital expenditure, while the amount payable on or after this date was classified as revenue expenditure. This categorization was based on the premise that the payment would be made annually, as a percentage of gross revenue, to continue to be able to operate and run the business.
• Now Revenue approached theSupreme Court of Indiaagainst the judgment of the Delhi High Court in a batch of appeals. Some of the appeals before the Supreme Court also arose from judgments passed by the High Courts of Bombay and Karnataka, which followed the Delhi HC judgment dated 19 December 2013.

Why Supreme Court Said License Fee is Capital Expenditure and Not Revenue Expenditure

• The main issue which arose before the Supreme Court was whether the variable license fee paid by these telecom companies to theDepartment of Telecommunicationsunder the New Telecom Policy is a revenue expenditure or is of capital nature. At the outset, the SC primarily held that the payment of license fee for an indivisible license cannot be apportioned as partly capital and partly revenue expenditure without any legal basis.
• The SC further stated that failure to pay licence fee would lead to revocation and cancellation of the licence and therefore the annual variable license fee is towards the right to operate telecom services. The mode of payment of license fee, in a staggered or deferred manner, cannot be characterized and split-up in an artificial manner into a capital and revenue payments.
• Lastly, the SC stated that the nature of payments would be distinct only when the periodic payments have no nexus with the original obligation, which is not the case in present case. Considering the above, the Hon’ble SC held that the payment of one-time entry fee as well as variable annual fee are capital in nature; that these payments are not allowed for deduction as revenue expenditure and should instead be amortized in accordance with the provisions of section 35ABB of the ITA.

How Telecom Sector is going to get effected??

• The various telecom operators who have incurred substantial expenses to obtain licence will have to revisit the position taken with respect to the deductibility of the expense. The disallowance of the expenses would adversely impact the companies which are already suffering huge loss.
• This ruling will undoubtedly result in higher tax payments by the telecom companies. Considering that this legal dispute, of classifying variable license fee as revenue expenditure or capital expenditure, concluded after almost 24 years from the introduction of new telecom policy, the interest liability could be equivalent to or even more than the tax amount itself. Besides, there could also be potential penalty implications on the taxpayers.
• The classification of expenditure into capital or revenue has always been a contentious issue and despite several ruling of the SC on this matter, this issue is far from being resolved. It is pertinent to note that this ruling will not only impact the companies in the telecom sector but also companies engaged in any other sectors who may have adopted similar licensing model.
• It is advisable for the taxpayers to assess the applicability and impact of this ruling on their respective business models and to adopt the correct legal position in a timely manner to prevent any prolonged future litigation and tax outgo.

Joint venture (JV)

When commercial enterprise combines their resources to gain a tactical and strategic advantage in the market by contract, then it is known as a joint venture (JV). Companies often enter into a joint venture to pursue specific projects. The JV may be a new project with similar products or services, or it may involve creating an entirely new firm with different core business activities.

A contract between companies is signed to kick off a JV between all concerned parties. The profit and loss from the venture are shared by the participants.

Types of joint ventures

There are two major types of joint venture that two or more companies might participate in. These joint ventures might affect one particular product or an entire product or service line.

• Personnel-based joint venture

This type of partnership covers both the people themselves and the expertise they bring to the table. Several staff members from companies X and Y are placed on a project.

• Equipment-based joint venture

This type of venture involves technology or machinery. For example, company X lacks the manufacturing technology to produce its new Displays line. It partners with company Y, which has the necessary equipment but lacks Glass. The advantages of a joint venture agreement in this example are clear: the collaboration allows company to create its desired innovation without an outlay of capital, while company Y gains a percentage of profits without incurring development costs.

Joint venture examples

HAL has JVs with Rosoboronexport, Aviazapchast and Mikoyan-Gurevich (MiG) of Russia, British Aerospace and Rolls Royce Holdings Ltd of UK, Elbit Systems, Israel, Merlin-Hawk and Edgewood Ventures of the USA, Snecma of France,

Some other examples;

Vistara + Singapore Airlines

PNB + Metlife

Starbucks +Tata

What are the risks of joint ventures?

No business venture comes without risk. The main risk of a joint venture is that when something goes wrong, both parties are held accountable, rather than only the party who was at fault. While most businesses entering joint venture agreements are limited liability companies (small businesses), each participant is equally responsible for legal claims arising from the joint venture, regardless of its level of involvement (or profit) from the venture.

So are joint ventures 50:50? Not necessarily. Each party retains ownership of their property, and depending on the terms of the joint venture contract, you and your partners may contribute resources unevenly. This can lead to problems if the profit-sharing arrangement doesn’t adequately compensate one side or the other.

How do taxes work in a joint venture?

What is a joint venture from a tax perspective? In India a JV is assessed in the status of an AOP (association of persons). If the venture operates as a separate business entity, it will pay income taxes just like any other type of business. In the agreement, the parties involved specify how they will split profits and losses and how they will pay any taxes that are due.

Advantages of joint ventures-

1. Shared expenses (more resources) – each party shares a common pool of resources, which can bring down costs on an overall basis.

2. Shared investment (cost saving) – each party in the venture contributes a certain amount of initial capital to the project, depending upon the terms of the partnership arrangement, thus alleviating some of the financial burden placed on each company.

3. Barriers to competition – one of the reasons for forming a joint venture is also to avoid competition and pricing pressure. Through collaboration with other companies, businesses can sometimes effectively erect barriers for competitors that make it difficult for them to penetrate the marketplace.

4. Technical expertise and know-how – each party to the business often brings specialized expertise and knowledge, which helps make the joint venture strong enough to move aggressively in a specified direction.

The disinvestment of national carrier Air India will take place on January 27, 2022. The closing balance sheet have been handed over to TATA GROUP. Tata group was named the winning bidder for Air India in October, ahead of a consortium led by SpiceJet Ltd Chairman and Managing Director Ajay Singh for analysis and to make changes if any. Before we get in to much details about the Conglomerate TATAs further role lets understand what is Disinvestment and Why the National Carrier had to take this decision.

What Is Disinvestment?

Divestment or disinvestment means selling a stake in a company, subsidiary or other investments. Businesses and governments resort to divestment generally as a way to pare losses from a non-performing asset, exit a particular industry, or raise money.

Governments often sell stakes in public sector companies to raise revenues. In recent times, the central government has used this route to exit loss-making ventures and increase non-tax revenues.

Why Air India’s Step To Disinvest?

The government’s efforts to turn around the finances of Air India seem to have failed with the national carrier’s eroding market share, continuous losses and a mountain of debts. Air India has not registered profit since over a decade after the merger of the erstwhile Indian Airlines (domestic operations) with Air India (international operations) in 2007.

However, the primary reason for Air India’s disinvestment was the government’s inability to cope with its debt of ₹52,000 crore. Around ₹22,000 crore of the total debt accounts for aircraft acquisition loan and the rest is related to debt for meeting its daily and operational expenses.

The Entire Process

On 28 June 2017, the Government of India approved the privatization of Air India. A committee has been set up to start the process. In March 2018, the Government issued an Expression of Interest (EOI) to sell 76% stake of Air India, along with low-cost airline Air India Express, and a 50% stake of AISATS, a ground handling joint venture with Singapore Airport Terminal Services (SATS). According to the EOI, the new owner would have to take on a debt of ₹33,392 crore and a bid would have to be submitted by mid-May as the Government wanted to complete the selling process by the end of 2018, but no private firms showed any interest in buying the debt-laden airline.

Having failed on previous occasions to sell the airline, the Government decided to sell 100% share of the airline and started its preparation in late-2019. On 27 January 2020, Government released the Expression of Interest (EOI) to invite bidders. This time the Government decided to sell 100% shares of both Air India and its budget carrierAir India Expressas well as 50% shares of AISATS and to attract more bidders this time, the government has already decreased nearly₹30,000 croreof debts and liabilities in aSpecial Purpose Vehicle(SPV).

In September 2021, government issued fresh tenders for selling the airlines, whereSpice Jet’sAjay Singh-led consortium andTata Sonsshown interest in the bid.Finally, on 8 October 2021, Air India, along with its low cost carrierAir India Expressand fifty percent of AISATS, a ground handling company, were sold for₹18,000 croreto Talace Private Limited, aTata Sons’ SPV.

Why Disinvestments Are Happening In India?

In 1999, the Government set up a separate Department of Disinvestment. It is now known as the Department of Investment and Public Asset Management or DIPAM. It operates under the Ministry of Finance and deals with disinvestment-related tasks. The disinvestment targets of this department are announced in each Union Budget. It varies every year, with the Central Government taking the final call on whether it will increase its disinvestment target or not.

In FY 2021 the Indian Government set up a target of Rs. 2.1 Lakh crore . However considering the aftermath of the Covid 19, it raised just 10 % of the desired sum . In fact it recorded the lowest sum raised in the preceding seven financial years. The target for this fiscal year was three times more than that of the preceding year.

Keeping that in mind this year , GOI has set a target of gathering Rs 1.75 Lakh crore from disinvestment. This plan includes banks, LIC , Shipping Corporation of India , and many other PSUs.

Here are the main objectives of disinvestment in India:

1. Reducing the financial burden on the government
2. Improving public finances
3. Encouraging an open share of ownership
4. Introduction, competition, and market discipline
5. Depoliticizing essential services
6. Upgrading the technology used by public enterprises to become competitive
7. Rationalizing and retraining the workforce
8. Building competence and strength in R&D
9. Initiating the diversification and expansion programmes

Prospects Of The Deal

Air India will now be able to better utilize the aviation bilateral rights with other countries. International travelers will, therefore, be able to travel more efficiently to more locations directly, instead of travelling through another country.

With reduced borrowings for Air India, the government will have the bandwidth to redirect its resources to other projects critical for economic development. The Centre will continue to provide gratuity and PF benefits to the existing employees of Air India and Indian Airlines, the Ministry of Civil Aviation.

The enormously successful privatization of Air India will provide the government with the confidence to drive and implement more such reforms. Thus The Air India privatization will be a significant booster dose for not only for the company, but also for the overall economy, industry, markets and for the government to keep pushing the major reforms agenda. Everyone involved in this exercise of privatizing a two-in-one Maharaja, the original Air India and Indian Airlines combined.