Finly March 2023

Dear Readers,

“Historically, pandemics have forced humans to break with the past and imagine their world anew. This one is no different. It is a portal, a gateway between one world and the next. We can choose to walk through it, dragging the carcasses of our prejudice and hatred, our avarice, our data banks and dead ideas, our dead rivers and smoky skies behind us Or we can walk through lightly, with little luggage, ready to imagine another world. And ready to fight for it.” -

Arundhati Roy

This pandemic is an opportunity to expand our knowledge by finding new ways to circumvent the circumstances, invest in the most intuitive ideas that come to our mind and surpass this havoc. As Ben Franklin rightly said, “An investment in knowledge always pays the best interest,” we at Finstreet are back with the next edition of our monthly magazine “Finly” for the academic year 2022-23

Team FINLY has always been a dedicated group of people who put in a lot of time and effort to put this magazine together, and we can't thank them enough for their unwavering support and initiative

The March 2023 edition's cover story revolves around "E20: India's step towards a cleaner Fuel ".The Eco Section discusses "Economic impact of agricultural investments". Further, the Intriguing Indeed section delves into "A country where EV is prohibited"

We are thankful to Prof. (Dr.) Pankaj Trivedi (Course Coordinator, MBA Core and Faculty Coordinator, Finstreet) for providing the much-required mentoring, support and backing to the Finly team

HAPPY READING!!!

TEAMFINLY

Faculty in-charge

Dr. (Prof) Pankaj Trivedi

EditingTeam

Editor-in-Chief Editor - FINLY

TeamCoordinator

Gaurav Bavkar

Moumita Biswas

ContentTeam

Anshika Singh

Jinal Shah

Aditi Vora

Unmesh Datar

Ankit Singh

BharviShah|MBA3|2022-24

AnishkaSingh|MBA7|2022-24

India is the third largest consumer of crude oil & petroleum products in the world due to an expanding economy, growing population, increasing urbanization, evolving lifestyles and rising spending power About 98% of the fuel requirement in the road transportation sector is currently met by fossil fuels and the remaining 2% by biofuels Today, India imports 85% of its oil requirement The country is making efforts to reduce its dependence on fossil fuels and shift towards more sustainable and renewable energy sources One of the strategies being considered is the use of domestic biofuels

Ethanol is one of the principal biofuels, which is naturally produced by the fermentation of sugars by yeasts or via petrochemical processes such as ethylene hydration.

India has been using ethanol-blended fuel in vehicles since the early 2000s, starting with a 5% ethanol-petrol blend known as E5

Over the years, the blend has been increased to E10, and it is currently the standard blend in petrol in many parts of the country. However, as a sufficient quantity of ethanol is not available, therefore, only around 50% of petrol sold is E10 blended, while remaining is unblended petrol (E0). The government of India started focusing on blends seriously after the National Policy on Biofuels was drafted in 2018, which aimed to reach the target of 20% ethanol blending in petrol by the year 2030.

E20 & ITS BENEFITS

E20, or a 20% ethanol blend in gasoline has recently been announced at the India Energy Week 2023 event in Bengaluru, as an effort to move towards a more eco-friendly & costeffective fuel for our vehicles There are numerous benefits to this new type of gasoline

1. Reduced Greenhouse Gas Emissions: One of the primary benefits of using E20 fuel is the reduction of greenhouse gas emissionsEthanol is a renewable biofuel that is produced from plant sources, which absorb carbon dioxide (CO2) during photosynthesis The use of E20 fuel can result in a reduction of carbon emissions by up to 7%, as compared to traditional gasoline This can also reduce pollution, improve air quality and have a positive impact on public health.

2 Reduced Dependence on Fossil Fuels: India imports 85% of its total fuel, which results in a huge import bill & makes the country vulnerable to price fluctuations and supply disruptions. The use of E20 fuel can help reduce India's dependence on imported oil and support domestic agriculture It is estimated that the use of E20 fuel could save India up to 30 billion rupees annually in foreign exchange.

3. Boost to Agriculture: Ethanol is primarily produced from sugarcane in India, and the use of E20 fuel can provide a significant boost to the agriculture sector. It can help farmers generate more income and can also help reduce sugarcane surplus, which is a major challenge faced by the industry.

4 Job Creation: The introduction of E20 fuel means implementing new technology which can create job opportunities in various sectors. Ethanol production requires skilled labour and the establishment of a supply chain, which can create employment opportunities for people living in rural areas.

5 Improved engine Performance: Ethanol acts as an octane booster, which can lead to improved engine performance and reduced engine knock

INTERNATIONAL PRACTICES

The global production of fuel ethanol touched 110 billion litres in 2019 with USA and Brazil contributing to 84% of the global share To increase the availability of ethanol for transport use, many initiatives have been taken by various countries across the world:

Brazil legislated that the ethanol content in gasoline sold in the country should be in the range of 18% to 27.5%, which is currently at 27%. Concurrently, the use of 100% hydrous ethanol by flex-fuel vehicles in Brazil has increased the average share of ethanol in transportation to 46% in 2019.

In USA, the Environmental Protection Agency (EPA) sets Renewable Fuel Standards (RFS) volume requirements annually based on fuel availability. The EPA proposed to set the 2023 advanced biofuel mandate at 5 82 billion gallons, up 3.4% from the 2022 mandate in order to stimulate rapid growth towards higher blends like E15 and E85

In 2017, the Chinese government announced legislation proposing the use of E10 fuel for all of China

In Thailand, Alternative Energy Development Plan (ADEP)

Itargets the share of renewable and alternative energy from biofuel to increase from 7% of total fuel energy use in 2015 to 25% in 2036. However, the prices of ethanol globally in lower than that in India (as seen below) which poses a challenge for effective conversion to E20.

IMPACT ASSESSMENT

The impact of E20 fuel can be assessed from multiple perspectives: Environmental Impact: E20 fuel can have numerous benefits as discussed earlier

Engine Performance and Durability: E20 fuel can provide similar performance to gasoline, but it has a lower energy content, which means that fuel efficiency may be slightly reduced.

Cost: E20 fuel is typically cheaper than pure gasoline. However, the price of E20 fuel can vary depending on factors such as the price of corn & sugarcane, which is the primary feedstock used to produce ethanol

Availability: The availability of E20 fuel can vary depending on the region In some areas, it may be more readily available than in others.

GOVERNMENT SCHEME & IMPLEMENTATION

There is no Indian Government Scheme related to E20 fuel as of now. However, the Indian government has been promoting

the use of biofuels and ethanol blends in the country for a long time, and E20 fuel is one of the options being considered for future use. In 2018, the Indian government announced a new biofuels policy which aims to promote the use of ethanol and other biofuels in the country The policy aims to achieve a target of 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel by 2030

To promote the use of biofuels, the government has also launched several initiatives like the Ethanol Blending Programme, National Biofuel Policy, National Policy on Biofuels 2018, etc. Under these schemes, the government provides incentives to farmers and sugar mills to produce ethanol from sugarcane and other feedstocks.

On 6th February 2023, PM Narendra Modi launched E20 fuel in India while kicking off the India Energy Week in Bengaluru The E20 fuel will now be available at select petrol pumps in 11 states and Union territories.

In conclusion, while there is no specific government scheme related to E20 fuel, the government of India is actively promoting the use of biofuels and ethanol blends to reduce dependence on fossil fuels and promote a cleaner and greener environment.

may require modifications to run on this blend Cold weather performance: E20 fuel can have reduced performance in cold weather, which can cause starting and drivability issues in vehicles. This is because ethanol has a higher vapour pressure than gasoline, which can make it harder to start a cold engine.

CONCLUSION

Source: The Indian Express

CHALLENGES

E20 fuel, which is a blend of gasoline and ethanol with a 20% ethanol content, presents several challenges that need to be addressed:

Limited availability: E20 fuel is not widely available in many parts of the world, and the infrastructure for producing, distributing, and selling E20 fuel is not as well-developed as that for traditional gasoline This limits the ability of consumers to access and use E20 fuel

Reduced energy density: Ethanol has a lower energy density than gasoline, which means that E20 fuel provides fewer miles per gallon than traditional gasoline. This means that drivers may need to refuel more frequently and could experience decreased vehicle range

Compatibility with vehicles: Not all vehicles are compatible with E20 fuel, and some vehicles

India has taken several steps towards a cleaner fuel in recent years. One of the most significant moves has been the implementation of the Bharat Stage VI (BSVI) emission norms for vehicles, which came into effect in April 2020. BS-VI is the latest and most stringent emission standard for vehicles in India, and it has significantly reduced the amount of harmful pollutants that vehicles can emit.

In addition to this, the Indian government has also been promoting the use of cleaner fuels like Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and ethanol CNG is being used as fuel for public transport in many cities across the country, and the number of CNG stations has increased significantly in recent years LPG is being promoted as a cooking fuel, and the government has launched schemes to provide LPG connections to households that were previously using traditional fuels like firewood or coal

The government has also been promoting the use of ethanol as a biofuel, and it has set

a target of achieving 20% ethanol blending with petrol by 2025

This move is expected to reduce the country's dependence on fossil fuels and significantly reduce carbon emissions

Furthermore, the government has launched several schemes to encourage the adoption of electric vehicles (EVs) These include tax incentives, subsidies for EV manufacturers, and the development of charging infrastructure. The FAME II scheme, which was launched in 2019, provides incentives for the purchase of EVs and the development of charging infrastructure.

The FAME II scheme, which was launched in 2019, provides incentives for the purchase of EVs and the development of charging infrastructure.

Overall, India's steps towards a cleaner fuel are a positive development and will go a long way in reducing air pollution and improving the country's environmental health However, more needs to be done to promote the use of cleaner fuels and reduce the country's dependence on fossil fuels.

ECONOMIC IMPACT OF AGRICULTURAL INVESTMENTS

Unmesh Datar I MBA 3 | 2022-24

Aditi Vora I MBA 9| 2022-24

WHAT IS TRIPS AGREEMENT?

The agricultural sector plays a vital role in the Indian economy, employing about 50% of the workforce and contributing about 17% of the country’s GDP India has the world's largest cattle herd (buffaloes), the largest area planted for wheat, rice, and cotton, and is the largest producer of milk, pulses, and spices in the world It is the second-largest producer of fruit, vegetables, tea, farmed fish, cotton, sugarcane, wheat, rice, cotton, and sugar. In recent years, the Indian government has been increasing its focus on the agricultural sector, recognizing its immense potential for economic growth and development. It indirectly influences economic growth to a larger extent so as to support the vast and growing Indian population

One of the key factors that can contribute to the growth of the agricultural sector is increased spending and development Consumer spending in India will return to growth in 2021 post the pandemic-led

contraction, expanding by as much as 6.6%.

The Indian food industry is poised for huge growth, increasing its contribution to the world food trade every year due to its immense potential for value addition, particularly within the food processing industry The Indian food processing industry accounts for 32% of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth In this article, we will examine the impact of agriculture spending and development on the Indian economy, including the benefits, challenges, and potential areas for improvement

India is one of the world's largest agricultural producers, with a diverse range of crops grown across the country However, the country also imports and exports significant agricultural products to meet the growing demand for food and other agricultural products In this article, we will examine the agricultural imports and

exports of India, including the types of products imported and exported,the reasons for import and export, and the impact on the Indian economy.

TYPES OF AGRICULTURE IMPORTS

India imports a wide range of agricultural products to meet the demand for food, feed, and other uses Some of the major agricultural imports include:

Edible Oils - India is one of the world’s largest importers of edible oils The country imports a variety of oils such as palm oil, soybean oil, sunflower oil, and rapeseed oil to meet the demand for cooking oil and other food products

Pulses - India is the largest consumer and importer of pulses in the world The country imports a variety of pulses such as lentils, chickpeas, and beans to meet the demand for protein-rich foods.

Fruits and Vegetables - India imports a variety of fruits and vegetables such as apples, grapes, kiwi, and onions to meet the demand for fresh produce.

Dairy Products - India is the largest producer of milk in the world, but the country also imports a significant amount of dairy products such as cheese, butter, and milk powder to meet the demand for these products.

TYPES OF AGRICULTURE EXPORTS

India is also a significant exporter of agricultural products The major agricultural exports of India include:

Rice - India is the largest exporter of rice in the world The country exports different types of rice such as Basmati rice, non-Basmati rice, and organic rice to countries such as Iran, Saudi Arabia, and Iraq

Spices - India is known for its wide range of spices, and the country is the largest exporter of spices in the world. Some of the major spices exported from India include pepper, cardamom, cumin, and ginger

Tea - India is the second-largest producer of tea in the world and exports tea to different countries such as the United States, the United Kingdom, and the United Arab Emirates.

Fruits and Vegetables - India exports a variety of fruits and vegetables such as mangoes, grapes, and bananas to different countries

REASONS FOR AGRICULTURE IMPORTS AND EXPORTS

The primary reason for agricultural imports in India is to meet the growing demand for food and other agricultural products. The population of India is rapidly growing, and with increasing income levels, the demand for food and other agricultural products is

also increasing. While India is a significant agricultural producer, the country's production capacity is not sufficient to meet the growing demand for food and other agricultural products.

On the other hand, the primary reason for agricultural exports is to earn foreign exchange and support the growth of the country's agricultural sector India is a significant exporter of rice, spices, and other agricultural products, and the earnings from these exports help to support the country's economy

IMPACT ON THE INDIAN ECONOMY

The import and export of agricultural products have both positive and negative impacts on the Indian economy. On the positive side, the import of agricultural products helps to meet the growing demand for food and other agricultural products in the country. This, in turn, helps to ensure food security and supports the overall economic growth of the country Similarly, the export of agricultural products helps to earn foreign exchange and support the growth of the country's agricultural sector.

However, there are also some negative impacts associated with agricultural imports and exports. The import of agricultural products can lead to the displacement of domestic farmers, particularly in the case of products such as edible oils and pulses.

decline in domestic prices, negatively impacting the income of domestic farmers

In addition, the import of agricultural products can also have a negative impact on the balance of trade Since India is a net importer of agricultural products, the country is required to pay for these imports with foreign currency, leading to a drain on the country's foreign exchange reserves

GOVERNMENT'S FOCUS ON AGRICULTURE AND ITS BENEFITS

Increased investment in the agricultural sector can lead to the adoption of new technologies and practices, which can help to increase productivity

Increased spending and development in the sector can lead to the creation of new jobs, particularly in rural areas

Agricultural development can also help to reduce food inflation in the country.

Increased investment in the agricultural sector can also help to increase agricultural exports. India is one of the largest exporters of agricultural products in the world, with exports of around $38 5 billion in 2020

The import of cheap agricultural products from other countries can also lead to a

The import of agricultural products is an essential aspect of the Indian economy, helping to meet the growing demand for food and other agricultural products. While there are some negative impacts associated with agricultural imports, the overall impact is positive

EDUCATION

AUTOMOBILE SECTOR

AbhigyanVerma|MBA3|2022-24

AnkitSingh|MBA2|2022-24

OVERVIEW

A country’s economic health closely correlates with the health of its automobile sector Indian Automobile Industry is a key driver of economic growth in the country It is the largest sector within manufacturing, contributing to more than one-third of the manufacturing GDP in the country This Industry gives employment to over 3 7 Cr people directly and indirectly. 15% of the country's total GST collection comes from the Automobile Industry

The automobile sector is split into four segments, i.e., two-wheelers, three-wheelers, passenger vehicles, and commercial vehicles, each having few market leaders Twowheelers and passenger vehicles dominate the domestic demand.

The Indian automotive industry is expected to reach US$ 300 billion by 2026.

Strong policy support from the Government has increased FDI investment flow in the sector and the roadmap ahead looks promising on the back of rising demand as India is expected to become the world’s third-largest automotive market in volume terms by 2030.

The Government in Union Budget 2022-23 has taken up a few initiatives for its expansion, in order to make electric vehicles (EVs) more appealing to potential buyers, the government approved a battery-swapping policy that will allow depleted batteries to be switched out for charged ones at specific charging stations and the Prime Minister's Gati Shakti Plan calls for a 25,000 km increase in the length of India's national highways between 2022 and 2023. C.A.S.E., which stands for connected, autonomous, shared, and electric, is the industry's unified vision for the future

Internet connectivity in vehicles is one of the key themes influencing the future of the automotive industry. These internetconnected vehicles can communicate with other internet-connected gadgets both inside and outside the vehicle

RISKS AND CHALLENGES

Today, the Industry is facing various immediate and medium-term challenges. The supply chain challenges include a global shortage of semiconductors, rising commodity prices with a significant surge in steel and precious metals, a shortage of shipping containers, and import restrictions in the form of quality control orders, etc

Upcoming new regulations within the next 2 years again will have a significant cost impact At the same time, as a responsible industry, we are focused on the sustainable growth of the industry, making vehicles more affordable for the customers, enhancing local content in our products, proactively looking at long-term regulations, and developing new powertrain technologies to achieve as close as possible to Carbon NetZero

FLUCTUATING FUEL PRICE

Over the last few years, the volatile nature of crude oil prices has only brought in more uncertainty. The impact of fuel prices is very high on sales of passenger vehicles.

Higher fuel prices can be detrimental to the long-term growth of the industry. Although a shift to EV could potentially reduce the impact

CHANGING CONSUMER PREFERENCES

Consumers across the globe are becoming more environmentally conscious and are shifting towards electric and hybrid vehicles Companies that have a high reliance on traditional fuel-powered vehicles are at a higher risk

STRICTER EMISSION NORMS

Governments and organisations across the world are implementing stricter emission norms to reduce carbon emissions, India itself has implemented BS VI since April 2020. These norms and the changing environment, in general, have made vehicles more expensive.

SUPPLY CHAIN DISRUPTIONS

The last 2 years saw exceptional supply chain disruptions on account of Covid-19 and semiconductor chip shortage The dependence of the Indian Automotive Industry on imports of semi-conductor chips poses a strong challenge The Indian Government has taken note of the same and has bought into the PLI scheme for semi-conductor manufacturing as well Apart from that, the war in Ukraine has only put the supply chain in more danger.

CYBERSECURITY THREATS

Cars across the globe are becoming increasingly complex with the use of technology and connected systems in vehicles, this brings in the risk of cyber attacks that can compromise the safety and security of vehicles

VOLATILITY IN RAW MATERIAL PRICES

The Automotive Industry is heavily reliant on raw materials such as steel, aluminium, and rubber In the last 2 years, we also saw extreme volatility in raw material prices as metals touched record highs, which in turn increased production costs and lower profitability

SEGMENT WISE MARKET SHARE

Talking about the 2-wheeler segment in particular over 17.7 million units were manufactured, of which more than 4.4 million were exported

Over the last year, exports have registered a growth of nearly 36%. The commercial vehicles segment has registered exceptional growth of 83% YoY, followed by passenger vehicles at 43% YoY, and two-wheelers at 35% YoY.

CURRENT SCENARIO

The 62nd Annual Session of the Automotive Component Manufacturers Association (ACMA) featured remarks from the Union Minister of Commerce and Industry The automotive industry was issued a 5-point action plan:

1 To concentrate on quality in order to become more competitive on the world stage and less dependent on imports.

2 To think holistically and have a bigger picture in order to interact with people in an open and competitive manner.

3 To place a strong focus on value addition

Source: Statista

As of FY 2022, the 2-wheeler segment of the Indian Automobile Industry dominates the scenario in terms of units. Over 22.9 million vehicles were manufactured in India, of which 17 5 million vehicles were sold domestically

4. To leave the uncompetitive market and look into potential new markets in the industries where we can compete

5. Have lofty aspirations and ambitious goals for the sector

The government also stresses the importance of being more connected, emphasising convenience, leaning toward clean energy and clean mobility, and utilising cutting-edge technologies for the automotive component industry's future

The market for electric vehicles (EVs) is expanding quickly on a global scale. According to EV volumes, the total number of electric vehicles (including battery electric vehicles [BEVs] and Plug-in hybrid electric vehicles [PHEVs]) on the road increased from 4 2% in 2020 to 8 3% in 2021, with 6 75 million vehicles As of 2020, this represents an increase of 108%. As they contribute to lowering emissions and the depletion of natural resources, EVs are gaining popularity around the world Since close to 0 32 million vehicles were sold in 2021, an increase of 168% YoY, the Indian EV sector is likewise developing quickly The Paris Agreement, which aims to reduce carbon emissions, improve the quality of the air in urban areas, and decrease oil imports, is the foundation for India's ongoing adoption of electric vehicles

GOVERNMENT POLICIES IMPACTING THE SECTOR

The Indian Automotive industry contributes about 7.1% to India’s GDP and 49% to its manufacturing GDP. Given this distinctive contribution of the Indian Automotive Industry to the Socio-Economic development of the country, it is important to roll out the right policies and regulations for the industry to enable growth

Moreover, it becomes increasingly important to provide a stable policy framework as organisations across the globe look for new manufacturing hubs to implement their China+1 strategy.

PRODUCTION LINKED INCENTIVES

The PLI scheme for the auto sector is divided into two parts, namely the Champion OEM Incentive Scheme and Component Champion Incentive Scheme. The scheme is aimed at giving a push to advanced automotive technologies The scheme was successful in attracting a proposed investment of Rs. 74,850 crores against the target estimate of investment of Rs 42,500 crores over a period of 5 years

FAME INDIA SCHEME

To reduce pollution caused by diesel and petrol operated vehicles and to promote electric or hybrid vehicles in India, the Central Government launched the Fame India Scheme in 2015 The goal of the Fame India scheme is to incentivize the adoption of electric and hybrid vehicles The full form of Fame India scheme is “Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India”

Manufacturers and infrastructure providers of electric vehicles are the recipients of this incentive in the form of subsidies Fame India scheme is a part of the National Electric Mobility Mission PlP.

VEHICLE SCRAPPING POLICY

The Vehicle Scrappage Policy 2021 aims on phasing out old and unfit vehicles to achieve a lower carbon footprint in the country. It aims to de-register private cars over 20 years old and commercial vehicles over 15 years old. The policy is expected to benefit the sector as there will be demand for new vehicles as old vehicles are scrapped Owners of old vehicles will be given discounts and other benefits.

NATIONAL PROGRAMME ON ADVANCED CHEMISTRY CELL BATTERY STORAGE

The union cabinet has approved Rs. 18,100 crore PLI scheme for the same The scheme aims to set up a cumulative ACC manufacturing capacity of 50 GWh for ACCs and an additional Cumulative capacity of 5 GWh for niche ACC Technologies The scheme also invites foreign companies to set up units in India, but at the same time, it also aims to encourage local companies to set up or expand manufacturing units

AUTOMOTIVE MISSION PLAN 2016-26 (AMP 2026)

The AMP 2026, jointly finalized by the Government of India and the Indian Automotive Industry envisions making the Indian automotive industry among the top 3 of the world in engineering, manufacture, and export

Its objectives include:

To make the Indian Automotive industry the engine of the “Make in India” program

To make the Indian Automotive Industry a significant contributor to the “Skill India” program

AMP 2026 also seeks to increase the industry’s net exports severalfold

To provide a comprehensive and stable policy environment for the industry.

TATA STEEL

DhruvVora|MBA8|2022-24

ShubhamGupta|MBA2|2022-24

COMPANY OVERVIEW

Tata Steel is a multinational steel manufacturing company based in Mumbai, India. It is a subsidiary of the Tata Group, one of the largest conglomerates in India. Tata Steel is the largest steel producer in India and has a presence in over 50 countries.

The company was founded in 1907 as the Tata Iron and Steel Company and has since grown to become a global player in the steel industry. Tata Steel produces a wide range of steel products, including hot and cold-rolled coils, galvanised coils and sheets, tubes, wire rods, construction bars, and more The company's products are used in various industries, such as automotive, construction, engineering, packaging, and consumer goods

Tata Steel has operations in India, Europe, and Southeast Asia, with manufacturing facilities in countries such as the UK, the Netherlands, Singapore, and Thailand.

The company has a strong focus on sustainability and has been recognised for its efforts in reducing its carbon footprint and promoting environmental conservation.

Tata Steel has a strong commitment to research and development, with a focus on developing new and innovative steel products that meet the evolving needs of customers The company has also been recognised for its efforts in promoting employee welfare and community development, with initiatives such as vocational training programs and healthcare services for local communities

BUSINESS SEGMENT

Tata Steel is a diversified steel company with operations in several business segments Some of the major business segments of Tata Steel are:

Mining : Tata Steel operates several iron ore and coal mines in India and abroad The company's mining operations supply raw materials for its steelmaking operations.

Automotive: Tata Steel supplies steel products to the automotive industry, including carmakers and auto component manufacturers The company offers a range of steel products specifically designed for automotive applications

Construction: Tata Steel supplies steel products to the construction industry, including building contractors and infrastructure developers The company's products are used in the construction of bridges, buildings, and other infrastructure projects.

Engineering: Tata Steel offers steel products and engineering services to customers in the engineering industry The company's products are used in a range of engineering applications, including machinery, equipment, and tools

Packaging: Tata Steel supplies steel products for packaging applications, including food and beverage cans, aerosol cans, and other speciality packaging products The company offers a range of steel products specifically designed for packaging applications.

These are some of the major business segments of Tata Steel. The company also has operations in other areas, including power generation, research and development, and international trading

Source: Screener

SHAREHOLDING PATTERN (%)

As of 31st December 2022, Tata Steel’s shareholding pattern comprised promoters holding 33.39%, unchanged from the previous quarters. The FIIs reduced their holdings marginally from 21.9% to 21.5% quarter-onquarter Meanwhile, the DIIs have shown confidence in the growth story and have picked up the mantle They marginally increased their shareholding to 20 5% from 19.1% in the previous quarter. The government’s share remained at nil.

Source: Screener

FINANCIAL ANALYSIS

The company clocked a revenue of RS 59878 Cr in the quarter of SEP-22, whereas the revenue declined to 57084 crores in the quarter of December, i.e. a fall of 4.67%. The operating expenses of the company stood at 53817 crores in the quarter of September,

whereas the expenses declined to 53036 crores in December Despite the fall in expenses, the operating profit stood at 4048 crores in December 2022 compared to 6060 crores in September 2022 The operating profit declined 33 2% quarter-on-quarter With Tata Steel planning to invest Rs 1 lakh crores to double its steel making capacity, jitters in net profit are expected The company generated a net profit of 1297 crores, whereas it generated a loss of 2502 crores.

COMPETITOR ANALYSIS

TATA STEEL is really well positioned when compared to its peers The company is driving the highest revenue with, the value touching RS.57083 crores at the end of the latest quarter. The company has a negative growth for YoY quarterly sales growth by 6 09 % As of September 2021, the industry benchmark ROCE or steel was around 10-12%. Tata Steels ROCE stood at 31.55 compared to Jindal Stainless steel, which achieved the highest industry ROCE of 37 58

The company has delivered good profit growth of 76 8% CAGR over the last 5 years The company has been maintaining a healthy dividend payout of 43.0%

Cons

Company might be capitalising the interest cost

FUTURE OUTLOOK

The business predicts that the government's sustained emphasis on infrastructure will increase demand for steel in India. In addition, Tata Steel intends to raise its manufacturing capacity in India, tly 20 million tonnes, to 45–48 million tonnes over the course of the following five to ten years. Despite these encouraging achievements, the company may encounter some difficulties in deleveraging as a result of high working capital costs, European gas prices, and coal prices Tata Steel's stock has decreased 8% over the previous year and 9% so far in 2023. On April 6, 2022, the stock reached its 52-week high of Rs. 138.6, and on June 26, 2022, it reached its 52-week low of Rs 82 7

Source: Screener

KEY FACTS

PROS

is providing a good dividend yield of 4 59%

Stock

A COUNTRY WHERE EV IS PROHIBITED

LITIGATION FINANCING

Shreya Mathur | MBA 4 | 2022-24

You must have read one of the online reports proposing that the Swiss banned electric vehicles (EVs) So are EVs prohibited in the nation? There’s more to it.

SWITZERLAND’S ELECTRICITY CRISIS

The country has been facing an electricity crisis that has caught the attention of many around the world Switzerland relies heavily on hydroelectric power, which accounts for around 60% of the country's electricity generation. However, a combination of factors such as low water levels and the decommissioning of nuclear power plants has led to a shortage of electricity in the country.

The electricity crisis in Switzerland began in the winter of 2021 when the country faced record-low water levels due to a prolonged drought. Hydroelectric power plants rely on water to generate electricity, and the low water levels meant that the plants could generate less electricity than needed.

As a result, Switzerland had to import electricity from neighboring countries to meet its energy demands This situation was worsened by the decommissioning of the Mühleberg nuclear power plant in December 2019 The plant generated around 5% of the country's electricity and its closure added to the electricity shortage.

The electricity crisis in Switzerland began in the winter of 2021 when the country faced record-low water levels due to a prolonged drought Hydroelectric power plants rely on water to generate electricity, and the low water levels meant that the plants could generate less electricity than needed As a result, Switzerland had to import electricity from neighboring countries to meet its energy demands This situation was worsened by the decommissioning of the Mühleberg nuclear power plant in December 2019 The plant generated around 5% of the country's electricity and its closure added to the electricity shortage.

EUROPE’S ENERGY CRISIS

The ongoing conflict between Ukraine and Russia has had significant effects on energy supplies in Europe, but it is not the only factor contributing to the current energy crisis in the region. The crisis is a complex issue that involves a combination of factors, including geopolitical tensions, weatherrelated events, energy policies, and supply chain disruptions.

One of the main reasons for the energy crisis is the high demand for energy due to cold weather conditions in the winter months, which has put pressure on energy supplies across Europe At the same time, there have been supply chain disruptions, including reduced gas supplies from Russia, which is a major gas supplier to Europe This reduction in supplies is due to the ongoing conflict with Ukraine, as Russia has been using gas as a political tool in the conflict. In addition, the pandemic has caused disruptions in the supply chain, which has impacted the availability of energy

The situation has been further complicated by the transition to renewable energy sources, which has led to a reduction in the availability of traditional sources of energy, such as coal and natural gas. This has resulted in higher prices for energy, which is putting pressure on households and businesses.

Overall, the energy crisis in Europe is a complex issue that involves multiple factors, including the ongoing conflict between Ukraine and Russia It is a reminder of the importance of diversifying energy sources and investing in renewable energy to ensure energy security and reduce dependence on traditional sources of energy

THE REAL PICTURE

In the last few days, reports in various media outlets have suggested that Switzerland was planning to drive bans for electric cars The "Ordinance on Restrictions and Prohibitions on the Use of Electric Energy" serves as the foundation for the reports. Currently, this is merely a proposal that the Swiss Federal Council is putting together as part of an emergency response to get equipped for the prospect of an electrical shortage.

To ensure the nation's electricity supply, the proposed ordinance governs "restrictions and prohibitions on the use of electrical energy." In the case of a crisis, it describes four potential escalation levels within which the implementation of restrictions would at best be staggered. Only at escalation level 3 is e-mobility identified as one of many potential solutions

According to that statement, "The private use of electric automobiles is only permitted for really necessary travels (e.g. exercising one ’ s profession, shopping, visiting the doctor, attending religious events, attending court appointments).”

So, Switzerland is ready in case there is a power outage According to the proposal, the government intends to impose restrictions on private properties and may even prohibit concerts, plays, and athletic events.

Switzerland intends to restrict the usage of electric vehicles to only the most necessary trips if the situation gets worse. Aside from that, the Swiss power plan also includes restrictions on bitcoin mining and the escalators being turned off.

Germany and Spain have developed similar proposals to conserve electricity The German plan is being trialed for six months and includes restrictions on the heating of swimming pools and a recommendation that heating in buildings is set at 19 degrees Celsius.

Thus we can safely say that Switzerland’s preparation for a harsh winter is going to keep the citizens on their toes and off the EV grids more often.

BharatPe is a leading Indian fintech company that offers a range of payment and financial services to small and mediumsized businesses. The company has recently made headlines with the launch of its "12% Club" initiative, which is designed to help merchants grow their businesses and achieve greater financial success.

The 12% Club initiative is named after the top 12 percent of BharatPe merchants who have achieved the highest transaction volumes and revenues on the platform These high-performing merchants are given exclusive access to a range of benefits and services, including discounted transaction fees, personalized business coaching, and access to special events and networking opportunities.

By targeting the top 12 percent of its merchant base, BharatPe is aiming to support and incentivize its most successful and promising business partners. The company recognizes that these high-

performing merchants play a critical role in driving the growth and success of the BharatPe platform as a whole, and it is committed to providing them with the resources and support they need to continue thriving

At the same time, the 12% Club initiative also has important implications for the broader Indian economy By supporting the growth and success of small and mediumsized businesses, BharatPe is helping to drive economic development and job creation across the country This is particularly important in light of the ongoing economic challenges posed by the COVID-19 pandemic, which has hit many small businesses hard

Moreover, by offering personalized coaching and other support services to its high-performing merchants, BharatPe is helping to level the playing field and reduce existing inequalities in the business landscape. Many small business owners in

Arvind Aggarwal | MBA 04 | 2022-2024

India face significant barriers to success, including limited access to financing, lack of business knowledge and skills, and a challenging regulatory environment. By providing targeted support to its most promising merchants, BharatPe is helping to address these challenges and promote greater economic inclusion and opportunity

ADVANTAGES

Targeted support for high-performing merchants: By offering exclusive benefits and personalized coaching to its top 12% of merchants, BharatPe is providing targeted support to those who are already achieving high transaction volumes and revenues This can help to incentivize and reward these merchants, and provide them with the resources they need to continue growing and succeeding on the platform

Economic development: The 12% Club initiative has the potential to drive economic development and job creation across India. By supporting the growth and success of small and medium-sized businesses, BharatPe is helping to create a more prosperous and inclusive business landscape in the country.

Innovation in fintech industry: The 12% Club initiative also demonstrates the potential for fintech companies to drive innovation and growth in the Indian economy By offering personalized services and support to merchants, BharatPe is positioning itself as a leader in this space and helping to

drive the digitization and modernization of the Indian economy

DISADVANTAGES

Competition among merchants: The 12% Club initiative could potentially create a sense of competition and pressure among BharatPe merchants, as everyone strives to join the elite 12% This could lead to resentment and dissatisfaction among those who are not selected for the club, and may ultimately harm the overall business ecosystem on the platform

Criteria for selection: There may be questions about how BharatPe selects and measures its high-performing merchants, and whether these criteria are fair and transparent. If merchants feel that the selection process is arbitrary or biased, they may lose trust in the platform and look for other options.

IMPACT OF DIFFRENT SECTORS

BharatPe's 12% Club initiative has the potential to impact a range of different sectors in India, including the fintech industry, small and medium-sized businesses, and the broader economy.

In the fintech industry, the 12% Club initiative demonstrates the growing importance of personalized services and support for merchants in India. As the Indian economy continues to digitize and shift towards cashless payments, fintech companies like BharatPe are playing an

increasingly important role in providing the personalized coaching and other resources to help them grow and succeed Small business owners in India face a range of challenges, from limited access to financing to a lack of business knowledge and skills By providing targeted support to its most promising merchants, BharatPe is helping to level the playing field and reduce these barriers to success This could have a ripple effect throughout the Indian economy, as successful small businesses create jobs and drive economic growth in their communities

At the same time, the 12% Club initiative also has important implications for the broader Indian economy By supporting the growth and success of small and mediumsized businesses, BharatPe is helping to drive economic development and job creation across the country This is particularly important in light of the ongoing economic challenges posed by the COVID-19 pandemic, which has hit many small businesses hard By offering personalized coaching and other support services to its high-performing merchants, BharatPe is helping to mitigate the impact of the pandemic and promote greater economic resilience and recovery

Overall, the 12% Club initiative has the potential to make a significant impact on a range of different sectors in India By supporting the growth and success of small and medium-sized businesses, promoting innovation and growth in the fintech

industry, and driving economic development and job creation across the country, BharatPe is demonstrating the power of targeted support and incentives to drive positive change and create a more equitable and prosperous business landscape in India

ADANI AND HINDENBURG ISSUE

JinalShah|MBA-06|2022-24

Abhigyan Verma| MBA 3 | 2022-2024

INTRODUCTION

LTCM CRISIS A THOROUGH EXAMINATION OF THE REPORT

The assessment of the Adani Group by Hindenburg Research, which was released in January 2023, is a critical analysis of the operational and financial practices employed by the Indian corporation.

The story has sparked a heated debate over the business practices of one of India's largest firms and raises serious questions about the ethics and legality of the Adani Group's activities

The Adani Group is a multinational corporation with interests in ports, logistics, agribusiness, energy, real estate, and defense. The company generated more than $11 billion in revenue during the fiscal year 2021, making it a key player in the Indian corporate world According to the Hindenburg investigation, the company used unethical accounting methods to inflate its wealth and understate its obligations

According to the Hindenburg probe, Adani Group used aggressive and unconventional accounting methods to overstate its debt and understate its revenues The analysis reveals that the company has accumulated sizable revenues from joint ventures and subsidiaries that are not shown in its consolidated financial statements, which paints an unreliable picture of the company's financial health and profitability.

In addition to these financial irregularities, the Hindenburg probe holds the Adani Group accountable for insider trading and tax violations. The article claims that documents acquired from Indian governmental and regulatory authorities back up these accusations.

The report also criticizes Adani Group for its environmental practices, alleging that the company has destroyed a lot of trees, endangered fragile ecosystems, contaminated groundwater, and polluted the atmosphere Also, the study found that Adani Group ignored community concerns and violated environmental rules. Adani Group has angrily denied the claims made in the Hindenburg investigation, labeling them as "baseless and defamatory."

The company has made it apparent that it complies fully with all Indian rules and regulations and conducts business in accordance with the highest ethical and environmental standards It is important to keep in mind that Hindenburg Research is a short-selling research firm and that many of its company studies are unfavorable.

The business has an interest in seeing the price of the Adani Group's stock decline because it has shorted the stock. This suggests that the company will make money even if the stock price drops So, it is essential to look for independent confirmation of the claims made and to proceed with great caution while evaluating the report's findings

The release of the Hindenburg report has already caused a drop in the price of Adani Group's stock The report has also sparked a bigger discussion about the business practices of Indian firms and the need for greater accountability and transparency.

REPORT'S MAIN POINTS

The report was extremely critical of Adani's corporate governance, financial results, and commercial methods

The report's primary points include the following, among others:

1 Business practices: The analysis indicates that Adani has engaged in a number of dubious business practices in the past, such as fraud and environmental violations Additionally, it alleges that the company used its political connections to influence the Indian government for favorable treatment

2. Adani has inadequate corporate governance, according to Hindenburg Research, and Gautam Adani controls the company to the detriment of minority shareholders

3 Financial performance: The analysis indicates that Adani's financial success is exaggerated and that it has a poor track record of honoring its obligations. It further claims that Adani has a history of overstating its profitability and amassing large amounts of debt

4. A significant amount of Adani's overall activities are related to its port operations, and the report claims the company has misused its political connections to gain an unfair competitive advantage.

5

Concerns regarding the environment:

According to Hindenburg Research, Adani has had a history of breaking environmental rules, and the company's proposed Carmichael coal project in Australia poses a serious threat to the environment

ADANI’S RESPONSE

Adani Group's response to the allegations stated in the Hindenburg Research report has been disputed, and the company has sued the research firm in response The company has responded to the piece with a variety of statements refuting the assertions and defending its business practices.

CONCLUSION

Several problems with the Adani Group's operational and financial practices as well as its environmental impact are raised in the Hindenburg report. Investors and authorities must take these concerns seriously and carefully investigate the claims made in the report, despite the fact that Adani Group has angrily denied the allegations. The study's release serves as a reminder of how important it is to make sure that firms operate ethically and sustainably as well as how important it is to increase transparency and accountability in the business world

IS GIFT CITY THE NEXT BIG FINANCIAL HUB?

“Happiness is having a large, loving & caring, close-knit family in another city” Gujarat International Financial Tech-City (GIFT), a worldwide monetary and IT/ITES centre point in the territory of Gujarat, a first of its sort smart city, is being developed by GIFTCL, which is a joint endeavour of Gujarat Urban Development Company Ltd (GUDCL) and Infrastructure Leasing and Financial Services (IL&FS) It is situated between Ahmedabad and Gandhinagar and is India's most memorable functional greenfield tech city and global financial hub, which the Govt of Gujarat advanced as a greenfield project

The city is situated on the banks of the Sabarmati Waterway and is around 12 km from Sardar Vallabhbhai Patel international airport. The entire region for the improvement of GIFT is 886 acres of land out of which the SEZ (Special Economic Zone) is 261 acres of land, including 67%

Source: TOI

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GIFT CITY AS A TURNING POINT

GIFT City focuses on a transit-oriented improvement in view of walk to work approach, with a pedestrian friendly infrastructure and with zero severe accidents. With its simple and quick versatility with least struggles and productive public vehicle frameworks which lessen the per capita energy basket, it would go about as an impetus for improvement in its hinterland. The essential work in GIFT is supposed to lead to rise to number of optional businesses GIFT would not just draw in individuals from the close by metropolitan focuses, Ahmedabad, and Gandhinagar, yet in addition empower advancement in the near-by areas Therefore, considering the improvement of the surrounding region of GIFT in plan of transport infrastructure is critical.

Our hon’ble Prime Minister, Mr Narendra Modi has started with IIBX-India International Bullion Exchange Ltd, which caters gold and India being one of the largest importers of gold, India to some extent can control the supply and demand of gold and thus, its prices This may

transform India from gold price takers togold price setters.

The Govt of Gujarat has initiated tax incentives for units in IFSC and for SEZ units (non-IFSC). Among other tax benefits, units in IFSC will get 100% tax exemption for 10 consecutive years out of 15 years, an IFSC unit has the flexibility to choose any 10 years out of 15 years block. In the City, NonResident Indians (NRIs) and Foreign Institutional Investor (FIIs) get the benefit of .low tax rates on investments made in IFSC.

Memorandum of Understandings (MoUs),

were traded by IFSCA with foreign regulatory authorities, Monetary Authority of Singapore, Commission de Surveillance du Secteur Financier, Luxembourg and Qatar Financial Centre Authority The MoUs will promote greater collaboration between IFSCA and these regulatory bodies through, among other things, the exchange of information and sharing of best practices and capacity building for a brighter future. Even the subsidiaries of BSE and NSE are set up here to encourage trading through international exchanges Singapore stock exchange has also been registered with NSE’s subsidiary to encourage trading in high volumes

WHAT GIFT CITY IS LACKING?

The officies that have been registered here aren’t fully operational yet, which means it will still take quite some time to be fully functional.

Source: RBI

The volumes of transactions and the assets of exchanges of Singapore & Hongkong are quite higher as compared to the volumes of the subsidiaries of BSE and NSE and are also facing losses currently.

The social life here is nearly dead as workers after working, get back to their homes as there isn’t many places to socialise.

There are reports that GIFT City has been delayed to draw in ventures, since it was conceptualized in 2007 by then Gujarat Chief Minister Narendra Modi It wasn't long after Modi become PM in 2014 that investments began to flow to GIFT City. Lately, Singapore High Commissioner Simon Wong said it is "hard" for Singaporeans to live in GIFT City as it is “quite a ghost town” in the wake of working hours. He even said that the "bylaws are exceptionally extreme" and "it is challenging to construct a monetary focus", according to an Indian Express report

CONCLUSION

Now the two most important questions to answer-

“IS GIFT-City REALLY A GIFT TO THE NATION”?

With a growing economy of our nation, we see this as a huge scope for India to turn the tables and emerge as an economic giant India is one of the most attractive centres of investment and GIFT has perfectly alligned its facilities with the requirements of our economy by generating employment, reveneue at a greater scale and helping become one of the biggest financial hubs

In conclusion, while the GIFT-City has the potential to bring significant economic benefits to India, its success depends on various factors including its ability to attract and retain businesses and skilled professionals, its environmental sustainability and its impact on local communities. Ultimately, whether or not it is a gift to the nation will depend upon how well it is able to deliver on its promises and contribute to the overall development and prosperity of India.

About Finstreet

Finstreet, the finance committee of K J Somaiya Institute of Management aims at bridging the gap between industry and academic curriculum through effective delivery of knowledge-oriented sessions and events through a network of highly motivated members and renowned industry experts Through the FINLY magazine, we focus on covering crucial topics for each month and giving our members a platform to express their views.