Seasonal Magazine's Latest Issue - February 2020 by John Antony

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VOLUME 18 ISSUE 2 FEBRUARY 2020

YEARS

MAGAZINE

Seasonal www.seasonalmagazine.com

Managing Editor Jason D Pavorattikaran Editor John Antony Director (Finance) Ceena Associate Editor Carl Jaison Senior Editorial Coordinator Jacob Deva Senior Correspondent Bina Menon Creative Visualizer Bijohns Varghese Photographer Anish Aloysious Office Assistant Alby CG Correspondents Bombay: Rashmi Prakash Delhi: Anurag Dixit Director (Technical) John Antony Publisher Jason D Pavorattikaran

WHY ARE STOCK MARKETS RISING WORLDWIDE? The rally in world stock markets that started and sustained for the whole of 2019 is showing no signs of abating, in the new year. The total market capitalization of world’s stocks rose from $70 trillion to $85 trillion in 2019, and is now fast approaching $90 trillion with all major markets booming!

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And if last year was dominated by American companies and their listed stocks in the United States, this year the momentum is already showing signs of shifting to the emerging markets, of which India is a part, and Indian indices have been making record highs despite a challenging economic situation.

Among the reasons for the unprecedented rally are included the easing of US-China trade war, the passing of Trump’s North American trade dealby US Congress, nearing resolution of the Brexit impasse due to Boris Johnson’s spectacular win in UK elections, all of which are sharply positive for world trade. However, despite all these factors, the worldwide rally would have been non-existent for a simple and most powerful reason – the excess and still expanding liquidity in the world’s monetary markets. 2019 was the year in which the concerns about the deepening economic crisis in the world hit the ceiling and almost all countries’

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It was the broadest possible rally in the US this pastyear, with all major indices including the S&P 500 which rose 25% and Dow Jones Industrial Average which rose more than 20%, participating.

There are several reasons why almost all the global markets including US and India have been rising and rising, brushing aside all concerns like a looming war in the Middle East, higher international trade tariffs, a worldwide economic slump, and a sureto-be bitterly fought election year in the US.

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As usual, the global rally was led by theUS stock market, which in fact had started rallying by the latter half of 2017 itself. But it was in 2019 that the rally gathered momentum in the US.

However, the rally was more pronounced in the largest tech stocks with Apple’s stock rising 80% and Facebook rising 57% in 2019.

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EDITORIAL

central banks including America’s Federal Reserve and India’s Reserve Bank responded with easier monetary policies. Under this dovish approach, the US Federal Reserve cut its benchmark interest rate three times in 2019, whereas the next biggest, the ECB (European Central Bank) cut its already negative rates even further. India’s RBI too followed this dovish approach which is always helpful to the markets. For those who still doubt the scale and power of liquidity in the system, take this – analysts estimate that the amount of liquidity the US Federal Reserve alone pumped into the American economy during most of 2019 amounted to tens of billions of dollars a day! And the reality is that a lot of this liquidity ended up in US stocks last year, and since the US stocks are flush with supporting funds now, a lot of it is flowing to emerging markets including India. That the worldwide stock markets have been rising on global liquidity, more than anything else, is evident from one simple metric – lacklustre corporate earnings worldwide including in the US in 2019. As well understood, stock prices can appreciate only due to three factors – either rise in earnings or rise in price/earnings (P/E) multiples or both. Ideally, stock prices rise on strong earnings growth, and when the earnings growth is consistently too, it results in higher P/E multiples and therefore higher stock prices. But the 2019 rally, which continues to be strong in 2020, has happened despite no matching earnings growthworldwide, and has been thus a pure case of

excess liquidity assigning higher and higher P/E multiples to the top-notch companies worldwide! Some market participants are calling this a hope rally, as it signals the market’s anticipation that the emerging good news on US-China trade deal, Brexitetc will eventually cause earnings to expand, thus justifying the current high P/E multiples. However, two things standout against this theory. One is that, unlike in earlier decades, easier monetary policies by central banks are not translating to corporate investments and revival, anywhere in the world. Instead, the resultant excess liquidity is just chasing the best stocks. A second indicator is that gold too is rallying, which is quite strange as usually equities and gold do not rally simultaneously for a long time. What this means is that many of the market participants themselves are wary about this rally and using gold as a hedge. And the deepest lesson to learn from this rally is that liquidity is chasing stocks rather than corporate investments or infrastructure projects, due to a simple reason – stocks are the easiest-to-exit asset class in case liquidity starts drying up due to inflation concerns! It would be interesting to see which all markets would be dancing naked when the music stops and the lights come on. Obviously, they would be the weakest markets with the poorest fundamentals which were propped up only by this global liquidity. The only insurance against this would be discarding the market music and attending to the economic challenges, especially by becoming jobs-friendly rather than investor-friendly. John Antony SEASONAL MAGAZINE

Contents WHAT ARE THE REAL SOLUTIONS TO REVIVE INDIAN ECONOMY? With Indian economy continuing to traverse through doldrums, one thing is clear. The problem is too big to solve for just Central and State Governments. It calls for concerted thoughts from informed economists, social scientists, scientists, politicians, bureaucrats, chancellors, academicians, corporate leaders and youthful entrepreneurs. Seasonal Magazine brings together knowledgeable opinions from smart and experienced minds from various walks of life.

LIVE HEALTHIER AND LONGER WITH TEA A study has revealed that drinking tea at least three times a week was connected with healthy years of life and longer life expectancy. The research was published in the European Journal of Preventive Cardiology, a journal of the European Society of Cardiology (ESC).

YOUNG NASA INTERN DISCOVERS HUGE PLANET 17-year-old discovers planet 6.9 times larger than Earth on third day of internship with NASA.

THE 10 SAFEST AIRLINES IN THE WORLD Here are the top-10 safest airlines based on safety data.

NOT JUST CANCER & HEAR DISEASE, SMOKING CAUSES DEPRESSION Most of us are familiar with the physical health effects of smoking, but can the habit also affect our mental and emotional well-being? A new study suggests that it can, after finding a link between smoking cigarettes and depression.

WHY IS FORMER CHIEF ECONOMIC ADVISER CALLING THIS A GREAT SLOWDOWN? India is facing a "Great Slowdown" with its economy headed for intensive care unit primarily due to a "second wave" of the twin balance sheet crisis at banks, former Chief Economic Adviser Arvind Subramanian has said.

SLEEP LOSS CAN CAUSE ALZHEIMER'S DISEASE The interrupted sleep schedule for even a night increases the level of a protein in a young male's body thus increasing the chances of developing Alzheimer's disease.

WHAT ARE THE WEAKNESSES THAT HINDER HIGHER VALUATION FOR SBI? There has been a serious push in the market for India's largest lender, State Bank of India, to have much better valuations in the market. The twin pronged rationale has been that while the bank is doing better than earlier, its large subsidiaries too have been performing well and adding value. But market has a way of assigning value, that may be..

THE VALUE IN INDIA'S DIAGNOSTICS PIONEER Dr. A. Velumani led Thyrocare Technologies has been India's pioneer diagnostic chain in the listed space. But like how all pioneers have had to suffer, Thyrocare too had its ups and down in the capital markets. But starting from Q1, and gathering..

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SAMHI HOTELS RECEIVES APPROVAL, NEARS ITS INITIAL PUBLIC OFFER Samhi Hotels, one of India's leading luxury hotels owner, whose properties are managed by international hospitality majors like Marriott, IHG and Hyatt, has received final approval from SEBI to go for its Rs. 1800 - Rs. 2000 crore..

CHINESE TELECOM GIANT EYEING INDIAN MARKET State-run market leader China Mobile is said to be tie-up talks with Vodafone Idea and Airtel to offer cloud services.

KOHLI’S SELECTION HEADACHE IS ACTUALLY NOT A GOOD THING It is an old adage in cricket: when a team has surplus talent and each of these players showcases their abilities effectively, it creates a good selection ‘headache’ for the team management. However, India’s struggle to find the right balance in the T20 format ahead of the ICC T20 World Cup is more of a threat than a boon. From the..

IDFC FIRST BANK

ESAF SMALL FINANCE BANK

HOW PROMI SING IS ESAF SFB’S IPO? With ESAF Small Finance Bank filing for its Rs. 976 crore Initial Public Offer, much before its July 2021 deadline, all eyes will be on this Kerala headquartered bank with its roots in microfinance. This is especially so, as in 2019, it was a small finance bank – Ujjivan SFB - that became the best performing IPO in the country.

SBI INTRODUCES NOVEL HOME LOAN WITH MONEY BACK GUARANTEE ON STUCK PROJECTS To regain the trust of homebuyers, State Bank of India (SBI) has announced the Residential Builder Finance with Buyer Guarantee..

WHAT KIND OF PROFESSIONALS CAN DREAM TO BE ASTRONAUTS? NASA has announced the graduating class of 11 astronauts including a few women, who were selected from among 18,000 applicants, for upcoming missions to space, moon and mars. They include, manly, scientists,

HOW GOOD WILL BE ANDHRA'S TRIPLE CAPITAL EXPERIMENT? YSRCP government has decided to abandon the exclusive and mega development of Amaravati and, instead, opt for three capital cities - Amaravati, Visakhapatnam and Kurnool.

STARTING TO DELIVER ON PROMISES BY FIRST FOUNDATION DAY Two quarters back, V Vaidyanathan promised the market that IDFC First Bank would be in black by around this time. And he has kept his promise even before the bank celebrated its first foundation day, by turning around to profits on a PBT basis. A former high achiever at ICICI Bank and

GLOBAL CARMAKERS LEAD IN BS-VI RACE Of the 20-odd vehicles that Tata Motors and M&M sell in India, only one has been upgraded to meet BS-VI emission norms, while market leader Maruti has converted eight of its 13 models.

RELIANCE RETAIL EMPLOYEES GET A BONANZA Mukesh Ambani led Reliance Industries Limited (RIL) has offered the shareholders of its subsidiary Reliance Retail to swap their units with RIL shares. The major beneficiaries would be its employees as it is yet to go..

WHY IRFC IS NO IRCTC Post the bumper listing and mindboggling three-times return within days from the railways company IRCTC, hopes are running high for the IPO and listing of the next railways firm, IRFC. While both are monopolies, IRCTC's high promise is because it is a consumer business with good margins and..

WHAT 2019 MEANT FOR THE US-RUSSIA NUCLEAR DYAD AND THE WORLD AT LARGE With the doomsday clock currently set at two minutes to midnight, underlining the dangerous potential for nuclear misfortune, it is worth recounting the actions of both the U.S and Russia this year in contributing towards the current predicament. The year 2019 heralded a renewed look on both sides with respect to arms control, albeit at the cost of strategic and nuclear stability.

FULFILLING AMMA’S DREAMS Jayalalithaa’s prime dream in her final years was to make Tamil Nadu a developed state with $10,000 dollars per capita income, in a still developing India. This is the legacy that Chief Minister Edappadi K. Palaniswami and Industries Minister MC Sampath have inherited and which they are trying to fulfil.

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Contents GROWING THROUGH MEGA PROJECTS AND STRATEGIC PARTNERSHIPS Abu Dhabi headquartered VPS Healthcare is cementing its presence in UAE by new mega projects like Burjeel Medical City and groundbreaking partnerships even while it is expanding systematically in all its international markets including India. India born young billionaire Dr. Shamsheer Vayali, the Chairman and Managing Director of the Group

CHANGING PRIORITIES FOR INDIA, RUSSIA & IRAN Insights from the recently concluded Raisina Dialogues on how the foreign policies of India, Iran and Russia are set to change in 2020 and beyond.

WHAT IT IS REALLY LIKE TO ATTEND DAVOS If you have not spoken at Davos ever, you have not arrived at the world stage! Davos isn't glamorous for everyone, however. Here's what it's really like to attend the exclusive World Economic Forum (WEF) conference that brings billionaires together with business

AN EMPIRE PRECIOUS AS GOLD, TRANSPARENT LIKE DIAMONDS Gold retailing used to be a goldmine for investors, until a few bad apples ruined the show for all. But Joy Alukkas still runs an empire that is as precious as the gold he retails, with impressive growth and admirable transparency. Within the last 32 years, it has helped Joyalukkas grow to be a 161-showroom chain across 11 countries, with 89 of them in India. With an 8000 member employee base, Joyalukkas clocked Rs. 13,000 crore in turnover last year, with Rs. 8100 crore from India. A billionaire with a

ARMY CHIEF GENERAL BIPIN RAWAT'S WORDS CAUSE CONTROVERSY YET AGAIN The recent comments by the general, set to retire on December 31, drew sharp criticism from Opposition leaders and also senior

FROM AI ROBOTS TO SONY'S CONCEPT CAR, THE BEST TECH INNOVATIONS FROM CES 2020

INDIA LOOKS BEYOND WEST ASIA FOR OIL India may double American oil imports, and start sourcing from Russia, to cut reliance on West Asian oil imports.

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HOW POWERFUL CAN BE A 3-CYLINDER HATCH ENGINE? Toyota has revealed GR Yaris with the worldâ&#x20AC;&#x2122;s most powerful 3-cylinder engine.

Consumer Electronics Show 2020 at Las Vegas witnessed some great innovations and prototypes from some of the most innovative tech companies around the world.

TAMIL NADU COMES FIRST IN GOOD GOVERNANCE INDEX The southern state of Tamil Nadu has bagged the top position in the composite ranking for Good Governance Index (GGI), followed by Maharashtra and Karnataka, according to a report by Government of India. COCHIN SHIPYARD

SURGING ONCE AGAIN Cochin Shipyard is surging once again after almost two challenging years, on the back of excellent Q2 numbers as well as a Rs. 3000 crore order win for Phase-III of the aircraft carrier, INS Vikrant it has been building. Apart from the Rs. 6311 crore contract for building eight antisubmarine corvettes it is building for Indian Navy, CSL has also opened new growth avenues by bagging and executing orders in

Epidemic

NEW DEADLY CHINESE VIRUS MIGHT HAVE INFECTED 1700 PEOPLE

The number of people already infected by the mystery virus emerging in China is far greater than official figures suggest, scientists say. There have been nearly 50 confirmed cases of the new virus, but UK experts estimate the figure is closer to 1,700. Two people are known to have died from the respiratory illness, which appeared in Wuhan city in December. am substantially more concerned than I was a week ago," disease outbreak scientist, Prof Neil Ferguson, said. The work was conducted by the MRC Centre for Global Infectious Disease Analysis at Imperial College London, which advises bodies including the UK government and the World Health Organization. Singapore and Hong Kong have been screening air passengers from Wuhan and US authorities announced similar measures starting on Friday at three major airports in San Francisco, Los Angeles and New York. The crucial clue to the scale of the problem lies in the cases being detected in other countries. While the outbreak is centred on the central Chinese city of Wuhan, there have been two cases in Thailand and one in Japan. "That caused me to worry," said Prof Ferguson. He added: "For Wuhan to have exported three cases to other countries would imply there would have to be many more cases than have been reported." It is impossible to get the precise number, but outbreak modelling, which is based on the virus, the local population and flight data, can give an idea. Wuhan International Airport serves a population of 19 million people, but only 3,400 a day travel internationally. The detailed calculations, which have been posted online ahead of publication in a scientific journal, came up with a figure of 1,700 cases. Prof Ferguson said it is "too early to be alarmist" but he was "substantially more concerned" than a week ago. Chinese officials say there have been no cases of the virus spreading from one person to another. Instead they say the virus has crossed the species barrier and come from infected animals at a seafood and wildlife market in Wuhan. SEASONAL MAGAZINE

Prof Ferguson argues: "People should be considering the possibility of substantial human-to-human transmission more seriously than they have so far. "It would be unlikely in my mind, given what we know about coronaviruses, to have animal exposure be the principal cause of such a number of human infections." Understanding how a novel virus is spreading is a crucial part of assessing its threat. Viral samples have been taken from patients and analysed in the laboratory. And officials in China and the World Health Organization have concluded the infection is a coronavirus. Coronaviruses are a broad family of viruses, but only six (the new one would make it seven) are known to infect people. At the mild end they cause the common cold, but severe acute respiratory syndrome (Sars) is a coronavirus that killed 774 of the 8,098 people infected in an outbreak that

Analysis of the genetic code of the new virus shows it is more closely related to Sars than any other human coronavirus.

started in China in 2002. Analysis of the genetic code of the new virus shows it is more closely related to Sars than any other human coronavirus. The virus has caused pneumonia in some patients and been fatal in two of them. Dr Jeremy Farrar, director of the Wellcome medical research charity, said: "There is more to come from this epidemic. "Uncertainty and gaps remain, but it's clear that there is some level of person-to-person transmission. "We are starting to hear of more cases in China and other countries and it is likely, as this modelling shows, that there will be many more cases, in a number of countries." Prof Jonathan Ball, from the University of Nottingham, said: "What's really important is until there has been widespread laboratory testing it is very difficult to put a real number on the cases out there. "But this is a figure we should take seriously until we know otherwise, 41 animal-to-human 'spillovers' is stretching it a bit and there probably is more underlying infection than has been detected so far."

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Health

NOT JUST CANCER & HEART DISEASE,

SMOKING CAUSES DEPRESSION

MOST OF US ARE FAMILIAR WITH THE PHYSICAL HEALTH EFFECTS OF SMOKING, BUT CAN THE HABIT ALSO AFFECT OUR MENTAL AND EMOTIONAL WELL-BEING? A NEW STUDY SUGGESTS THAT IT CAN, AFTER FINDING A LINK BETWEEN SMOKING CIGARETTES AND DEPRESSION. rof. Hagai Levine - from the Hebrew University-Hadassah Braun School of Public Health and Community Medicine in Jerusalem, Israel - is the senior and corresponding author of the study paper. In it, Prof. Levine and colleagues explain that there are clues in existing research that point to smoking as a predisposing factor to depression. For instance, depression tends to be twice as likely among people who smoke than those who do not, but it is not yet clear which causes which. Some researchers, however, believe that smoking may lead to depression, not vice versa. What is more, other studies have found that people who had never smoked generally have a better health-related quality of life (HRQoL), as well as less anxiety and depression. So, to help shed some light on the matter, Prof. Levine and team decided to study the association between HRQoL and smoking among students in Serbia. Few studies have looked into this association in low- and middle-income countries. However, more than 25% of people living in Serbia and other Eastern European countries smoke, which is another reason that studying this subject in this population is of interest. Furthermore, about a third of students in Serbia smoke. The new study included data from two cross-sectional studies that gathered information from two universities: the University of Belgrade and the University of Pristina. The former has around 90,000 students, and the latter has around 8,000. Of this total, the researchers enrolled 2,138 students in their study. The SEASONAL MAGAZINE

THE RESEARCHERS CLASSED PEOPLE WHO SMOKED AT LEAST ONE CIGARETTE PER DAY OR 100 CIGARETTES IN A LIFETIME AS "SMOKERS" FOR THE PURPOSES OF THIS STUDY.

students took part in regular health checkups between April and June 2009 at the University of Belgrade, and between April and June 2015 at the University of Pristina. The participants provided information about their social and economic backgrounds â&#x20AC;&#x201D; such as their age, social status, place of birth, and parents' education â&#x20AC;&#x201D; as well as information on any preexisting chronic conditions. They also provided information about their habits and lifestyle, such as smoking status, alcohol use, exercise levels, and eating habits. The researchers classed people who smoked at least one cigarette per day or 100 cigarettes in a lifetime as "smokers" for the purposes of this study. To assess the students' HRQoL, Prof. Levine and colleagues asked them to fill in a questionnaire comprising 36 questions across eight dimensions of health. Overall, the study found that having a higher depression score was associated with smoking. Furthermore, the students who smoked were two to three times more likely to have clinical depression than those who had never smoked. At the University of Pristina, 14% of those who smoked had

depression, whereas only 4% of their non-smoking peers had the condition. Among those who smoked at the University of Belgrade, 19% had depression, compared with 11% of those who did not smoke. Those who smoked also consistently had more depressive symptoms and poorer mental health, as reflected in the "vitality" and "social functioning" parameters. "These findings highlight the need for further research on the interaction between smoking, mental health, and quality of life, with implications for prevention, diagnosis, and treatment," conclude the study authors. Prof. Levine adds, "Our study adds to the growing body of evidence that smoking and depression are closely linked." "While it may be too early to say that smoking causes depression, tobacco does appear to have an adverse effect on our mental health." He goes on to warn against the perils of smoking, and he encourages policymakers to help prevent these dangers. "I urge universities to advocate for their students' health by creating 'Smoke-Free Campuses' that not only ban smoking on campus but tobacco advertising, too."

John Antony

WHAT ARE THE REAL SOLUTIONS TO REVIVE INDIAN ECONOMY? ECONOMY

With Indian economy continuing to traverse through doldrums, one thing is clear. The problem is too big to solve for just Central and State Governments. It calls for concerted thoughts from informed economists, chancellors, academicians, corporate leaders and youthful entrepreneurs. Seasonal Magazine brings together knowledgeable opinions from smart and experienced minds from different walks of life.

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WHAT ARE THE REAL SOLUTIONS TO REVIVE INDIAN ECONOMY? hile Indian economy is showing the first green shoots of growth after several quarters of slowdown, the verdict is still split on whether the economy has bottomed out already or is still in the process of finding a bottom or even risking a prolonged stagflation. But most economists agree on a consensus view that whether or not the rock bottom has been reached already, recovery is going to be gradual and painful. In other words, it won’t be a V shaped recovery, or even a U shaped one, but a parabolic recovery with a rather long stay at the trough. This puts the focus on solutions to revive Indian economy rather than the problems or reasons that caused this slowdown, which have all become history now. And while we all studied the same economic principles in college or school, our solutions and

World renowned economist Dr. Abhijit Banerjee, winner of the Nobel Prize for Economics last year, urges the Indian authorities to stimulate demand even if it means abandoning their inflation and budget deficit targets.

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suggestions to revive the Indian economy would differ. Even the views of economists differ. World renowned economist Dr. Abhijit Banerjee, winner of the Nobel Prize for Economics last year, says the core problem with India is lack of demand. Says Dr. Banerjee, “The critical problem in the Indian economy is demand. You definitely want to stimulate demand.” While this is a fairly common view among economists, it is Dr. Banerjee’s solutions that are radical. He urges the Indian authorities to abandon their inflation and budget deficit targets, which is a view not in consensus with most economists. But to justify his view, he shows the risks we are running. Says Dr. Banerjee, “We are really extremely close to a point where we could be dipping into a major recession.” While most economists would not agree

with abandoning targets for fiscal deficit and inflation, it is a view supported by many leaders of India Inc. Billionaire businessman and Chairman of Mahindra Group, Anand Mahindra, recently mirrored such a view at WEF 2020 when he said, “The government has realised that in order to get the engine moving, they need to be far more propulsive if you will, and forget about the obsession with deficits for the moment.” One of the prominent economists who are refuting this view is government’s former Chief Economic Adviser Arvind Subramanian. He was recently in the news for co-authoring a paper on Indian economy with former head of the International Monetary Fund's India office Josh Felman, in which they argue that this is a great slowdown and that the economy is headed for ICU if radical steps are not taken soon. Dr. Subramanian also clarifies that while urgent steps must be taken, many usual steps can’t be done or won’t work anymore. Says the noted economist,

Former Chief Economic Advisor, Dr. Arvind Subramanian, says the first step or a pre-condition for solving the crisis should be a Data Big Bang, to bring back confidence and produce a reliable basis for policy making. "This must comprise the publication of unreleased reports together with a strategy for improving official statistics."

"Clearly, action must be taken to stabilize the economy and get it back on the path of rapid growth. But in the current circumstances, the standard macroeconomic tools are not very useful.” Why does he think so? He clarifies further, “There are actions that the government cannot do, like further significant fiscal stimulus; actions that it must not do, like reducing personal income tax rates or raising GST rates; and actions it can do with only limited effectiveness, like easing monetary policy." Before discussing Dr. Subramanian’s interesting solutions for economic revival, it needs to be mentioned that there are some heavyweights who largely back his view. International Monetary Fund (IMF) for example, in its recent report on India has said more or less the same but in a more severe tone. IMF in its recent report on India said that the Indian government should avoid a fiscal stimulus to boost the sagging economy and, instead, opt for an easier monetary policy. Says the report, “In the

near-term, given the cyclical weakness of the economy, monetary policy should maintain an easing bias, at least until the projected recovery takes hold. Fiscal stimulus should be avoided, given that the fiscal space is at risk and revenue losses from the recent corporate income tax rate cut should be offset.” The only difference in IMF’s solution with former CEA Dr. Subramanian’s view is that IMF believes that an easing bias in the monetary policy, or in other words, lowering of interest rates further, would help the economy. However, given the tough situation India finds itself in, IMF is also predicting that the country may opt for some fiscal measures too, and advises how to go about it. Says the IMF report, “In the event of a more severe economic slowdown than currently envisaged, any fiscal stimulus should be temporary, focusing on measures to boost near-term growth, such as immediate investment expensing or public infrastructure spending." IMF’s Chief Economist, the India-born Gita Gopinath has more specific

solutions to offer regarding steering the economy back from the crisis. According to her, the current crisis in India is due to, “Growth in India slowing sharply owing to stress in the nonbank financial sector and weak rural income growth.” So, what are her solutions? "The major issue to address is the weakness in credit growth. There need to be policies that can resuscitate credit growth but at the same time don't create further NPA problems. That is the first step. There needs to be a quicker recapitalisation of banks,”says the world-renowned young economist. There are voices from the international business and investment world who mirror Dr. Gita’s view. Says Wall Street veteran and former Vice Chairman of Invesco, Krishna Memani, “India is going through a credit crunch of gargantuan magnitude. While there are a lot of other issues that need to be sorted out for reviving growth in the long term, nothing is more important in the short run than reviving credit growth.” SEASONAL MAGAZINE

WHAT ARE THE REAL SOLUTIONS TO REVIVE INDIAN ECONOMY? Memani draws on his long experience in US to offer solutions. “A good model for this is what policymakers did in the US after the financial crisis - bank stress testing and forced recapitalisation, extraordinary liquidity provisions and direct lending by the central bank,” says this veteran investment professional.

should be taken while planning and implementing further deficit spending. Says he, “But for that to work, deficit spending has to be for meaningfully better growth rate today and in the future and, thus, has to have a clear near-term and long-term economic purpose.”

And like last year’s Nobel winner Dr. Abhijit Banerjee and businessman Anand Mahindra, the former Invesco Vice Chief is a firm believer that further fiscal measures are possible and needs to be done. Says Krishna Memani, “Too much focus on fiscal consolidation in the current environment may actually be counterproductive.”

What would be some examples of such meaningful deficit spending? Memani gives some ready examples, “Spending on infrastructure, bank recapitalisation, orderly liquidation of non-performing assets, transfer payments to support rural spending etc. are a few examples,” says he.

However, he cautions that great care

Anand Mahindra says, “The government has realised that in order to get the engine moving, they need to be far more propulsive if you will, and forget about the obsession with deficits for the moment.”

Speaking about supporting rural spending, it is a solution that finds favour among other experts too. Ranen Banerjee, the Leader of Economic Advisory Services with PwC India is one such expert who calls for, “Higher allocations in one-off budget expenditure items like NREGS to boost demand." Introduced by the previous Congress-led government, the NREGS (National Rural Employment Guarantee Scheme) offers fixed hours of employment to adult

members of rural households in the form of unskilled manual work. It has been often credited with boosting demand in India and as highly effective in making India survive the aftermath of the global economic crisis starting in 2009. Other measures that Ranen Banerjee proposes to boost rural incomes include developing decentralised micro warehousing for farm products and better logistics infrastructure. Interestingly, apart from such long-term developmental work, the PwC India Leader is not in favour of further economic reforms. He says, “At this point, it would be better if the government did not tinker too much with the economy.” This is a sentiment as well as solution supported by other experts too. Sunil Sinha, economist at Global ratings major Fitch Group’s India Ratings and Research, says private corporate investment is missing in India now. Says he, “The idea of government alone fixing the economy will not be sufficient for India. The need of the hour is for private corporates to invest to kick-start the economy. The government through its policies need to make sure that corporates start investing at the earliest.” Madan Sabnavis, chief economist at CARE Ratings echoes similar views, when he says, "The economy will do better on its own. The private sector has to pick up. Demand is the driver of all economies. Demand has to grow.” However, Sunil Sinha of India Ratings has a slightly different view on government’s role. Sinha says, "A strong policy push by the government is required to revive the domestic demand cycle and catapult the economy back into a high growth phase.” Regarding long-term solutions like land and labour reforms that are still pending, the CARE Chief Economist feels that the government’s hands are tied due to social factors and prevailing economic situation. Says Sabnavis, "It will be difficult to implement labour reforms due to unemployment. Moreover, the issues of right pricing, dwindling farmlands and acquired land that is not used make it difficult to initiate land reforms."

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IMF’s Chief Economist, the India-born Gita Gopinath says, "The major issue to address is the weakness in credit growth. There need to be policies that can resuscitate credit growth but at the same time don't create further NPA problems. That is the first step. There needs to be a quicker recapitalisation of banks." Anubhuti Sahay, Head of South Asia Economic Research at Standard Chartered Bank, is an expert who differs on this view. She wants the central government to carry out land and labour reforms. She feels that the government should also focus more on education, health and skill development. Renowned academicians in higher education from fields like agriculture, commerce, management and humanities, too have voiced their opinion that more needs to be done, especially in boosting rural incomes, to tide over the current economic crisis. Dr. Harcharan Singh Dhaliwal, Vice Chancellor of Himachal based Eternal University, and an expert in advanced agricultural technologies, finds a longterm solution to the economic crisis only

Wall Street veteran and former Vice Chairman of Invesco, Krishna Memani, says, “India is going through a credit crunch of gargantuan magnitude. Too much focus on fiscal consolidation in the current environment may actually be counterproductive.”

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WHAT ARE THE REAL SOLUTIONS TO REVIVE INDIAN ECONOMY? Ranen Banerjee, the Leader of Economic Advisory Services with PwC India, says, "At this point, it would be better if the government did not tinker too much with the economy." However, he calls for, “Higher allocations in one-off budget expenditure items like NREGS to boost demand."

Prof. Sunaina Singh, Vice Chancellor of Bihar based Nalanda University, says, "Schemes like MNREGA should be continued. The GST rates needs to be rationalized and the procedure should be further simplified. The higher GST leads to avoidance of payment of taxes, counterfeit invoicing, and bribing. Minimizing Income Tax and GST laws will strengthen the economy."

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in boosting the agricultural income by corporatisation of farming. Says Dr. Dhaliwal who took his PhD in genetics from University of California, "The only feasible solution is the corporate farming where the small and marginal farmers quit agriculture, get themselves or associated with corporation, offer their farm holdings and implements on rent without ever losing the right of ownership, work for the corporation at or off the farm in their areas of their training and experience including the farm women at appropriate wages where every gram of the agriculture produce is processed and value added at par with those of the developed countries and marketed." Dr. Pankaj Gupta, President of Jaipur based IIHMR University, is a Fullbright Fellow, a renowned academician in management and a noted consultant to large corporations. He too stresses on the need to boost rural income as a solution to the current crisis. Says Dr. Gupta, "Government should try to increase expenditure in MGNREGA scheme with a focus on creation of productive assets boosting rural supply. To revive the economy, the government should invest heavily and more in rural areas. Increasing incomes of rural population can drive up the consumption demand, which in turn will boost the industry."

Prof. Sunaina Singh, Vice Chancellor of Bihar based Nalanda University, proposes several measures to boost rural incomes. Says the renowned academician who won the International Education Award 2018 in House of Lords' of the British Parliament, "Easy access of farmers to technology, seeds, crop insurance and e-market will boost the agriculture sector. Schemes like MNREGA should be continued. Zero interest loans to the farmers will facilitate more agricultural growth.” Widely credited for turning around the English and Foreign Languages University (EFLU) in her earlier stint there as Vice Chancellor, she also feels that the GST regime needs changes. Says Prof. Sunaina, "The GST rates needs to be rationalized and the procedure should be further simplified. The higher GST leads to avoidance of payment of taxes, counterfeit invoicing, and bribing.

Madan Sabnavis, chief economist at CARE Ratings says, "The economy will do better on its own. The private sector has to pick up. Demand is the driver of all economies. Demand has to grow.”

A BANKER’S PERSPECTIVE

K. PAUL THOMAS, MANAGING DIRECTOR & CEO, ESAF SMALL FINANCE BANK WEIGHS IN ON THE SOLUTIONS.

rom a business perspective, the fall in economy has not affected the performance of Small Finance Banks. But it is true that our GDP growth was on a down fall last year and Indian Government is now desperate to bring in measures to propel the 5 trntarget by 2024-25. From a banking perspective, I believe that there is nothing much to worry on the fundamentals but Government should give more focus to small industrial activities that give immediate results than big projects. Small Finance Banks and MFIs are doing its bit to maintain liquidity in the system by providing finance at the right time. They also help rural people in discovering their skills and handholding them in implementing livelihood projects. But NBFC crisis developed last year could be a recipe for disaster.

Anubhuti Sahay, Head of South Asia Economic Research at Standard Chartered Bank, calls for the central government to carry out land and labour reforms. She feels that the government should also focus more on education, health and skill development.

Minimizing Income Tax and GST laws will strengthen the economy. This will also ensure investments by local private players as well as FDI." Dr. K Srinivasa Rao, Adjunct Professor, at Hyderbad based Institute of Insurance and Risk Management (IIRM) is a keen watcher of macroeconomics, having taken his PhD in Commerce from BHU, and having worked earlier at Bank of Baroda in key positions for long. Dr. Srinivasa Rao too backs the need for boosting credit growth while at the same time monitoring it well. Says he, "Galvanizing credit growth, activating non-banks, fintech companies & peerto-peer lenders, revival of investment and monitoring the demand for corporate credit are needed. Right

In March 2019, NPAs of Indian Banks was 9.1 percent of loans, which was the highest among emerging markets. But major banks have started apportioning more to bad assets, which signals aggressive recovery that can bring the economy back to track. PSBs are losing market share, which also shows the importance of privatisation for further growth. Troubled Asset Relief program in the US is a good model to follow. We should create avenues to buy toxic assets from NBFCs and Banks at a throw away price and strengthen the financial sector. Restructuring of loans given to troubled sector is also a way forward to solve the issue. Cleaning up of co-operative banks is a good initiative but whether they utilise the on tap license opportunity for SFBs is something we are yet to see. From the Government’s side more rural outlays is needed through schemes like PM-Kisan and MGNREGS. Also quick disbursement of payments due to private sector will also enhance liquidity in the economy. The success of digital

schemes like bharat net to connect gramapanchayaths, online registration under e-hospitals, e-passport service, digital locker etc show that more such schemes are needed for building rural India. Digital inclusion and bridging the digital divide should be the priority in the coming years. Prime Ministers Gramin Digital SaksharathaAbhiyan is a good beginning to make rural households digitally literate. The digital literacy combining with financial literacy can help India move forward more powerfully. ESAF has been doing this even as an NBFC, which was well captured in our first outdoor campaign in 2015 – we build the nation from its roots. The pace at which Indian population is growing is a reason to worry about, which means our GDP should grow at a much faster pace. India should take advantage of the trade war happening between US and china. Countries like Vietnam and Bangladesh have already started capitalising on the opportunity. India’s decision not to join RCEP had its advantages but it made India less attractive to companiesnot tradingwith China. India still lags behind countries like Vietnam, Indonesia, Thailand and Malaysia when it comes to ease of doing business. Here also Government can play role in making India a more business friendly nation. SEASONAL MAGAZINE

WHAT ARE THE REAL SOLUTIONS TO REVIVE INDIAN ECONOMY? reports together with a strategy for improving official statistics in at least three areas: the real sector (GDP, consumption, and employment), fiscal accounts, and stressed assets in the banking system." The further steps proposed by Dr. Subramanian echo the views put forth by Krishna Memani, but he articulates it well in an Indian context, especially

Sunil Sinha, economist at Global ratings major Fitch Group’s India Ratings and Research, says "A strong policy push by the government is required to revive the domestic demand cycle and catapult the economy back into a high growth phase.”

implementation of a series of stimulus packages and monitoring of their intended outcome will be important." Advisor Dr. Arvind Subramanian. As somebody who was part of the policymaking in this government earlier, his views are insightful. According to Subramanian, the first step or a pre-condition for solving the crisis should be a Data Big Bang, to bring back confidence and produce a reliable basis for policy making. Says the young but renowned economist, "This must comprise the publication of unreleased

Dr. Pankaj Gupta, President of Jaipur based IIHMR University, says, "Government should try to increase expenditure in MGNREGA scheme with a focus on creation of productive assets thereby boosting rural supply." as someone who has seen the Indian banking issues up-close. Says the former CEA, “A new asset quality review to cover banks and NBFCs must be conducted. Also changes to the Insolvency and Bankruptcy Code (IBC)

Dr. Harcharan Singh Dhaliwal, Vice Chancellor of Himachal based Eternal University, and an expert in advanced agricultural technologies, finds a long-term solution to the economic crisis only in boosting the agricultural income by corporatisation of farming. SEASONAL MAGAZINE

Dr. K Srinivasa Rao, Adjunct Professor, at Hyderbad based Institute of Insurance and Risk Management (IIRM), says, "Galvanizing credit growth, activating non-banks, fintech companies & peer-topeer lenders, revival of investment and monitoring the demand for corporate credit are needed. Right implementation of a series of stimulus packages and monitoring of their intended outcome will be important."

be made to ensure that participants actually have incentives to solve the problem.” Dr. Subramanian also calls for the creation of two executive-led public sector asset restructuring companies commonly called as ‘bad banks’, one each for the real estate and power sectors. B u t f o r t h o s e o f u s w h o don’t understand much economics, the best solution comes from Krishna Memani, who says, “For a large and complex country like India, there will always be a lot of issues that need to be addressed, but nothing would make the lives of people better than higher economic growth rate. And nothing would make all the other issues more complicated than a slower growth rate.”

Airtravel

THE 10 SAFEST AIRLINES IN THE WORLD

HERE ARE THE TOP-10 SAFEST AIRLINES BASED ON SAFETY DATA. ermany's Jet Airliner Crash Data Evaluation Center (JACDEC) revealed 293 people perished in airline accidents in 2019. That's a pretty dramatic drop from the 559 fatalities that were recorded in 2018. New data is revealing that 2019 is beat only by 2013 and 2017 in terms of being the safest year for flying on record. Here are the top-10 safest airlines based on safety data.

No. 10 | Virgin Australia No.9 | Cathay Pacific No.8 | Alaska Airlines

No. 7 | Emirates No. 6 | Singapore Airlines No. 5 | Qatar Airways No. 4 | Etihad

No. 3 | EVA Air No. 2 | Air New Zeland No 1 | Qantas SEASONAL MAGAZINE

IPO in Focus

ESAF SMALL FINANCE BANK

HOW PROMI IS ESAF

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ISING SFB’S

WITH ESAF SMALL FINANCE BANK FILING FOR ITS RS. 976 CRORE INITIAL PUBLIC OFFER, MUCH BEFORE ITS JULY 2021 DEADLINE, ALL EYES WILL BE ON THIS KERALA HEADQUARTERED BANK WITH ITS ROOTS IN MICROFINANCE. THIS IS ESPECIALLY SO, AS IN 2019, IT WAS A SMALL FINANCE BANK – UJJIVAN SFB - THAT BECAME THE BEST PERFORMING IPO IN THE COUNTRY.

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he very fact that ESAF SFB’s Founder, MD & CEO, K Paul Thomas, is leading the bank to an early IPO, much before its deadline more than oneand-a-half-years away, speaks volumes about the bank’s confidence and IPOreadiness. This is unlike many of its peers. But then, under his visionary leadership, ESAF SFB has lesser baggage while planning for its IPO. Some of its peer microlenders that had turned into SFBs like ESAF had opted to list their holding companies, which proved to be a headache when later the regulator RBI insisted that the SFBs too should be separately listed. No such baggage and resultant investor concern exists for ESAF SFB. It goes to the credit of the microfinance sector, that even with such baggage, Ujjivan SFB, could emerge as 2019’s best performing IPO with 166 times subscription and 51% gain on the listing day itself. ESAF SFB’s IPO would also benefit from the huge investor interest in the microfinance sector. Financial services in India, led by its large banks and NBFCs are facing a slowdown again, but ESAF SFB has been reporting robust growth on every front. In fact it has been one of the best performers among Small Finance Banks, almost all of them having their roots in microfinance. While ESAF SFB’s FY'19 profits were up three-fold, in the current fiscal, its bottomline had already zoomed by nearly four times by the time of Q2 numbers. The secret is that ESAF is growing its core microlending business admirably with steadily improving asset quality. It's Capital Adequacy Ratio is high at 26% due to last year's fund raises, and it has been performing well on the deposits front too, especially from Non Residents, Trusts & Societies. For the quarter ended September 2019, SEASONAL MAGAZINE

the bank's net profit rose to Rs 92.44 crore compared to Rs 24.06 crore in the corresponding quarter of previous fiscal. Interest earned rose to Rs 660.68 crore for quarter ended September 2019 from Rs 472.25 crore in the corresponding quarter of previous fiscal. Enroute to its IPO, ESAF SFB has also professionalized the top management even more. Veteran banker and banking regulation specialist PR Ravi Mohan has been appointed as the new Chairman who replaces R Prabha, who completed his tenure as the Chairman.

While ESAF SFB’s FY'19 profits were up threefold, in the current fiscal, its bottomline had already zoomed by nearly four times by the time of Q2 numbers. The secret is that ESAF is growing its core microlending business admirably with steadily improving asset quality.

Ravi Mohan is a veteran of Reserve Bank of India, having headed the Banking Supervision Department of RBI and was responsible for the supervision of commercial banks in the country. He holds a Master of Business Administration degree from the University of Birmingham, UK He brings with him a rich experience of top leadership in Indian and international banking sectors as he was also engaged in providing technical assistance on banking supervision and financial stability to 13 countries in Sub-Saharan Africa. According to ESAF Small Finance Bank’s recently filed draft prospectus or DRHP with market regulator SEBI, it is planning a Rs 976-crore initial public offering (IPO). The IPO would comprise a fresh issue of shares worth Rs 800 crore and an offer-for-sale (OFS) from existing investors aggregating up to Rs 176.2 crore, according to the draft prospectus. The bank is also considering a pre-IPO placement of up to Rs 300 crore. If it is undertaken, the amount raised will be reduced from the fresh issue, the draft papers noted. ESAF SFB will use proceeds from the fresh issue to raise the bank's tier-1 capital. Due to ESAF SFB’s inherent strengths, the strong growth of the microfinance sector, Ujjivan’s stellar listing and the booming market, the pre-IPO round of

ESAF SFB has been growing its business outside Kerala steadily. Its loan book outside Kerala has grown from Rs 549 crore in March 2017 to Rs 2,540.24 crore as on September 30, 2019. Rs. 300 crore is likely to be wellreceived by institutional investors. The public issue of shares is being managed by Axis Capital, Edelweiss Financial Services, ICICI Securities and IIFL Securities, as the Book Running Lead Managers (BRLMs). ESAF SFB has been steadily increasing its footprint across India. Now, it operates in 16 states and 1 union territory through its 403 branches and 38 ultra-small branches, serving over 3.73 million customers. However, the bank’s branches and business are more concentrated in its home state of Kerala, as well as in neighbouring states of Tamil Nadu and Karnataka. ESAF SFB has been growing its business outside Kerala steadily. Its loan book outside Kerala has grown from Rs 549 crore in March 2017 to Rs 2,540.24 crore as on September 30, 2019. This accounts for 48.46% of its total microfinance loan book size, which shows good geographic spread. The bank is focused on the retail banking business with a major presence in microfinance, through which it provides financing solutions for economically marginal customers who are unbanked or under-banked by formal lending channels like banks and NBFCs. Apart from its mainstay of microfinance, SEASONAL MAGAZINE

ESAF Small Finance Bank has been systematically growing all other retail banking businesses including housing finance, business loans, loan against property and gold loans. The total gross advances of ESAF SFB as on September 30, 2019 stood at Rs 5,474.23 crore. The bank's micro finance loans accounted to 95.75% of this total gross advances. The bank will continue to focus on its rural and semi urban credit customer base and increase deposits from nonresident Indians, among others, and increase CASA, according to its plans outlined in the DRHP. While the microfinance sector is more susceptible to asset quality issues, ESAF Small Finance Bank has been an exception with steadily improving asset quality. The bank’s gross non-performing assets (GNPA) to total advances improved to 1.76% for the six months ended 30 September 2019, compared to 3.37% in the corresponding period of the previous year. Apart from the promoter K Paul Thomas and the promoting group that holds more than 65% stake in the bank, other major shareholders include renowned institutional and retail investors like Bajaj Allianz Life Insurance, ICICI Lombard General Insurance, PNB Metlife India Insurance, billionaire businessman MA Yousaf Ali, PI Ventures, and Muthoot Finance. The anticipated institutional demand for the ESAF SFB IPO is evident from the reservation for institutional investors. According to the DRHP, about 75% of the offer will be available for allocation to Qualified Institutional Buyers (QIBs) and 15% on a proportionate basis to non-institutional bidders. The remaining 10% of the offer will be made available for retail individual bidders. Under the guidance of its Founder, MD & CEO, K Paul Thomas, the 5000member strong ESAF SFB team has won SEASONAL MAGAZINE

many awards and accolades. ESAF SFB was adjudged as the finalist in the prestigious European Microfinance awards which had contestants from 22 countries. Earlier, ESAF was one among the three finalists for the European Microfinance Award in 2014 for its ‘Clean Energy for the Poor’ initiative. ESAF SFB was also the only bank selected from India for the ‘Global Alliance for Banking on Values’. Noted for its innovations and rapid tech adoption, ESAF SFB is planning to introduce robot-aided banking. When the microfinance institution ESAF switched to being a bank, the ESAF Small Finance Bank, most industry watchers were saying that the new small finance bank’s biggest challenge would be building up its Current Account Savings Account (CASA) franchise. This was true too as this had to be done from the scratch, as an MFI is a non-deposit taking entity, and as such ESAF SFB didn’t have any deposits, including CASA to start with. But three years later, this young SFB has proved all such industry watchers

Apart from the promoter K Paul Thomas and the promoting group that holds more than 65% stake in the bank, other major shareholders include renowned institutional and retail investors like Bajaj Allianz Life Insurance, ICICI Lombard General Insurance, PNB Metlife India Insurance, billionaire businessman MA Yousaf Ali, PI Ventures, and Muthoot Finance.

wrong with sterling growth in CASA accounts, especially its Savings Bank segment. This segment has a dual challenge as it is both driven by interest rates as well as ease of use features. ESAF SFB attacked the first challenge by offering up to 7% interest rates on SB accounts, thereby making itself noticed on a pan-India stage. Being headquartered in Kerala, ESAF SFB has also utilized the huge overseas inflows coming into the state by offering competitive NRE and NRO accounts. Secondly, it addressed the ease of use challenge in a two-pronged way – by relying on technology as well as by making customized Savings Account and Current Account offerings. Within just three years, ESAF SFB has implemented almost all technologies that the best-in-class private banks have implemented and even more, including net banking, mobile banking, any

offering a premium product for one of FD’s largest segments – senior citizens. Generally, in any country and especially in India, senior citizens shun alternate savings channels like equity, mutual fund, gold and real estate, as they give priority for security. At the same time, they are very interest rate sensitive as many of them depend upon their FD interest earnings for their livelihood. For such senior citizens, ESAF SFB is offering a product that delivers 9.25% per annum, which is superlative return in today’s banking market, and it can even give intense competition to India’s mutual funds business.

branch banking, sms banking, missed call banking, e-mail statements, relationship officer, banking correspondent / agent points, utility bill payments, charge-free ATM card for one year, and lots more. Along with CASA, the second most important challenge faced by ESAF SFB was how to grow its deposit products. As it was a non deposit taking entity as an MFI, it didn’t have any fixed deposit base too. Unlike in CASA products, here interest rates alone call the shots, with ease of use being of only secondary concern for customers. Here too, ESAF SFB didn’t lose any precious time but went straight in for capturing customers’ hearts by offering an industry leading interest rate of 8.75% per annum. ESAF SFB also proved that it knows the pulse of the fixed deposit customer by

ESAF SFB has also performed well on growing its non-microfinance loans. While it has launched practically any kind of retail and corporate loans usually offered by a bank, it has also decided to focus on certain niche segments where it was confident of performing well. And three years later, it indeed has done well in these products. These include Clean Energy Product Loans, Agricultural Loans, Loan Against Property (LAP), Business Loans and Micro Housing Loans. ESAF SFB has also successfully converted its huge microfinance franchise to a more respectable microbanking model. ESAF has been an established name in Microfinance, having launched their Micro Enterprises Development (MED) program in 1995. Since then ESAF has successfully expanded the program across the country, bringing social and economic prosperity to several low income and unbanked segments of society. Having been converted into a bank, ESAF continues this leadership through its Micro Banking vertical that provides a broad package of financial inclusion products and business development services to the socially and economically challenged. In ESAF SFB’s Micro Banking, all banking services are provided right at

your doorstep through group based models. Continuing its longstanding tradition, ESAF SFB gives women the priority when it comes to Micro banking activities, and the bank now has over 1.20 million women enjoying the benefits of micro-banking services. ESAF SFB has also launched mobility banking in order to serve their microbanking customers faster & better. Providing much more respectability to all customers under their Micro Banking scheme, a PM Jan Dhan account with Debit cum ATM Card is also provided. However, where ESAF shines really in micro-banking is their decades-old experience in understanding the microfinance customers, which has enabled them to launch several customized products like Income Generation Loans, Business Loans, Ultra Poor Loans, Vidya Jyothi Loans, Nirmal Jeevandhara Loans (for toilets / sanitation needs), Micro Energy Loans and General Top Up Loans. Due to its long years in business, ESAF SFB also knows how to weather a storm, which comes often in the microfinance business. The best example happened two years back, when despite the unprecedented flood in its home state of Kerala, ESAF SFB maintained the lowest NPA among its comparable peers.

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Innovation

FROM AI ROBOTS TO SONY'S CONCEPT CAR, THE BEST TECH INNOVATIONS FROM CES 2020 Consumer Electronics Show 2020 at Las Vegas witnessed some great innovations and prototypes from some of the most innovative tech companies around the world.

Samsung NEONS

Samsung introduced the world to NEONs, artificial humans that look and emote just like a real human. Samsung NEON is one of the biggest highlights of CES 2020 that we have witnessed so far. NEONs are artificial humans that are able to interact with real humans using expressions and movements in real-time.

Sony's VISION-S CAR

Sony surprised the whole world with Vision-S, the company's first concept car that is filled with sensors. Built by the company's AI and robotics team, that is equipped with 33 sensors to provide a better driving experience.

Samsung's INVISIBLE KEYBOARD If you are someone who finds it difficult to type on a smartphone, Samsung might have just announced the right solution for you. The company has developed a way for phone users to type on any smooth surface just by tapping on it. The SelfieType software uses front camera of the phone to track user's fingers and figure out where the taps would correspond to being on a full qwerty keyboard. There you have it, these are some of the most impressive gadgets that we witnessed during CES 2020.

Segway S-POD With impressive features and faster speed, Ninebot Segway SPod is a revolution in the world of micro-mobility. With an electric chair, Ninebot is trying to reinvent the world of micro-mobility at CES 2020. The Segway S-Pod comes with a joystick to control the chair, but can also be controlled remotely through a tablet. The electric chair can reach a speed of up to 38 km/h. SEASONAL MAGAZINE

Science

YOUNG NASA INTERN DISCOVERS HUGE PLANET

17-YEAR-OLD DISCOVERS PLANET 6.9 TIMES LARGER THAN EARTH ON THIRD DAY OF INTERNSHIP WITH NASA. uring his junior year at Scarsdale High School in New York, Wolf Cukier landed a two-month internship with NASA. So during the summer of 2019, he traveled down to NASA’s Goddard Space Flight Center in Greenbelt, Maryland. His first assignment was to examine variations in star brightness captured by NASA’s Transiting Exoplanet Survey Satellite, known as TESS, as a part of the Planet Hunters TESS citizen science project. (The citizen science project allows people who don’t work for NASA to help with finding new planets.) Just three days into his internship, Cukier discovered a new planet. NASA announced the news on their website this week, after confirming the teenager’s work, submitting a paper that Cukier co-authored for scientific review and announcing the discovery of the planet, now named “TOI 1338 b,” at the 235th American Astronomical Society meeting. “I was looking through the data for everything the volunteers had flagged as

an eclipsing binary, a system where two stars circle around each other, and from our view eclipse each other every orbit,” 17-year-old Cukier tells NASA. “About three days into my internship, I saw a signal from a system called TOI 1338. At first I thought it was a stellar eclipse, but the timing was wrong. It turned out to be a planet.” “I noticed a dip, or a transit, from the TOI 1338 system, and that was the first signal of a planet,” Cukier explains to NBC 4 New York. “I first saw the initial dip and thought, ‘Oh that looked cool,’ but then when I looked at the full data from the telescope at that star, I, and my mentor also noticed, three different dips in the system.” According to NASA, TOI 1338 b is 6.9 times larger than Earth (in between the size of Neptune and Saturn) and is located in the constellation Pictor, about 1,300 light-years away from Earth. For context, the Earth’s sun is between seven and nine light-minutes away. TOI 1338 b is the first planet captured by the TESS system that is considered a circumbinary planet, meaning it orbits two stars. The two stars orbit each other

ACCORDING TO NASA, TOI 1338 B IS 6.9 TIMES LARGER THAN EARTH (IN BETWEEN THE SIZE OF NEPTUNE AND SATURN) AND IS LOCATED IN THE CONSTELLATION PICTOR, ABOUT 1,300 LIGHT-YEARS AWAY FROM EARTH. FOR CONTEXT, THE EARTH’S SUN IS BETWEEN SEVEN AND NINE LIGHTMINUTES AWAY. every 15 days, and one is 10% larger than the Sun. Together, TOI 1338 b and its two stars make up what is called an “eclipsing binary.” In an interview with News 12, Cukier compared his discovery to “Star Wars.” “I discovered a planet. It has two stars which it orbits around,” he said. “So, if you think to Luke’s homeworld, Tatooine, from ‘Star Wars,’ it’s like that. Every sunset, there’s gonna be two stars setting.” Cukier has several framed “Star Wars” posters and a telescope in his bedroom. NASA states that circumbinary planets like TOI 1338 b are difficult to detect because typical software can confuse them for eclipses, which is why the help from interns like Cukier is valuable. “These are the types of signals that algorithms really struggle with,” Veselin Kostov, a research scientist at Goddard tells NASA. “The human eye is extremely good at finding patterns in data, especially non-periodic patterns like those we see in transits from these systems.”

Wolf Cukier SEASONAL MAGAZINE

After making history, the high school senior is now thinking about his future in college, telling News 12 “my top three choices are Princeton, MIT and Stanford.”

Nutrition

LIVE HEALTHIER AND LONGER WITHTEA

A STUDY HAS REVEALED THAT DRINKING TEA AT LEAST THREE TIMES A WEEK WAS CONNECTED WITH HEALTHY YEARS OF LIFE AND LONGER LIFE EXPECTANCY. THE RESEARCH WAS PUBLISHED IN THE EUROPEAN JOURNAL OF PREVENTIVE CARDIOLOGY, A JOURNAL OF THE EUROPEAN SOCIETY OF CARDIOLOGY (ESC).

habitual tea drinking group. Mechanism studies have suggested that the main bioactive compounds in tea, namely polyphenols, are not stored in the body long-term. Thus, frequent tea intake over an extended period may be necessary for the cardioprotective effect." In a subanalysis by type of tea, drinking green tea was linked with approximately 25 per cent lower risks for incident heart disease and stroke, fatal heart disease and stroke, and all-cause death. However, no significant associations were observed for black tea.

r Xinyan Wang, who is the author of the study concluded that, "Habitual tea consumption is associated with lower risks of cardiovascular disease and allcause death. The favourable health effects are the most robust for green tea and for longterm habitual tea drinkers." The analysis that was conducted included about 100,902 participants of the China-PAR project2 with no history of heart attack, stroke, or cancer. Participants were classified into two groups: habitual tea drinkers and never or non-habitual tea drinkers and followed-up for a median of 7.3 years. The analyses estimated that 50-year-old habitual tea drinkers would develop coronary heart disease and stroke 1.41 years later and live 1.26 years longer than those who never or seldom drank tea. Compared with never or non-habitual

tea drinkers, habitual tea consumers had a 20 per cent lower risk of incident heart disease and stroke, 22 per cent lower risk of fatal heart disease and stroke, and 15 per cent decreased risk of all-cause death. The potential influence of changes in tea drinking behaviour was suspected in a subset of 14,081 participants with assessments at two-time points. The average duration between the two surveys was 8.2 years, and the median follow-up after the second survey was 5.3 years. Habitual tea drinkers who maintained their habit in both surveys had a 39 per cent lower risk of incident heart disease and stroke, 56 per cent lower risk of fatal heart disease and stroke, and 29 per cent decreased risk of all-cause death compared to consistent never or nonhabitual tea drinkers. Senior author Dr Dongfeng Gu, said, "The protective effects of tea were most pronounced among the consistent

Dr Gu noted that a preference for green tea is unique to East Asia. Two factors may be at play. First, green tea is a rich source of polyphenols which protect against cardiovascular disease and its risk factors including high blood pressure and dyslipidaemia. Black tea is fully fermented and during this process, polyphenols are oxidised into pigments and may lose their antioxidant effects. Second, black tea is often served with milk, which previous research has shown may counteract the favourable health effects of tea on vascular function. Gender-specific analyses showed that the protective effects of habitual tea consumption were pronounced and robust across different outcomes for men, but only modest for women. Dr Wang said, "One reason might be that 48% of men were habitual tea consumers compared to just 20 per cent of women. Secondly, women had a much lower incidence of, and mortality from, heart disease and stroke. These differences made it more likely to find statistically significant results among men." She added, "The China-PAR project is ongoing, and with more person-years of follow-up among women the associations may become more pronounced." In conclusion, the authors found that randomized trials are required to validate the results and to illustrate nutritional guidelines and advice for lifestyle. SEASONAL MAGAZINE

Health

SLEEP LOSS CAN CAUSE ALZHEIMER'S DISEASE THE INTERRUPTED SLEEP SCHEDULE FOR EVEN A NIGHT INCREASES THE LEVEL OF A PROTEIN IN A YOUNG MALE'S BODY THUS INCREASING THE CHANCES OF DEVELOPING ALZHEIMER'S DISEASE.

osing a night's sleep can be the reason behind developing Alzheimer's, a new study reveals. The interrupted sleep schedule for even a night increases the level of tau protein in a young male's body thus increasing the chances of developing Alzheimer's disease. The report was published in Neurology, the medical journal of the American Academy of Neurology. "Our study focuses on the fact that even in young, healthy individuals, missing one night of sleep increases the level of tau in blood suggesting that over time, such sleep deprivation could possibly have detrimental effects," said study author Dr Jonathan Cedernaes, a neurologist at Uppsala University in Sweden. As defined by the Alzheimer's Association, tau is the name of a protein that helps in stabilizing the internal structure of the brain's nerve cells. An abnormal build-up of tau protein in the body can end up in causing interior cells to fall apart and eventually developing Alzheimer's. "When you get more of that deep sleep and you get the REM sleep in the normal amounts, that improves clearance of abnormal proteins which we think is SEASONAL MAGAZINE

INDIAN-AMERICAN DIRECTOR DUO'S FILM GETS NOMINATED FOR OSCARS 2020 'St Louis Superman', a documentary film by two Indian-American filmmakers, Smriti Mundhra and Sami Khan, has earned a nomination in the Documentary Short Subject category at Oscars 2020. The film revolves around activist Bruce Franks Jr's journey to becoming a state lawmaker. "I am shell-shocked, overwhelmed and profoundly grateful," Mundhra tweeted after the nominations were announced on Monday.

NEW LOW-COST IPHONE TO ENTER MASS PRODUCTION IN FEBRUARY: REPORT RESEARCHERS CAUTION THAT THE STUDY IS SMALL AND INCONCLUSIVE, AND ACKNOWLEDGED THEY WERE NOT ABLE TO DETERMINE WHAT THE INCREASED LEVELS MIGHT MEAN. good," said Mayo Clinic neurologist Dr Donn Dexter, not the study author but a fellow of the American Academy of Neurology. Earlier studies have also shown that getting deprived of sleep can allow higher tau development and accumulation. Thus that poor sleep can hasten the development of cognitive issues. Researchers caution that the study is small and inconclusive, and acknowledged they were not able to determine what the increased levels might mean. "This study raises more questions than answers," agreed Dexter on a concluding note, sharing, "What this is telling us is that we have to dig more deeply. Despite something we do for a third of our lives, we know so little about sleep and we're learning every day, particularly when it comes to sleep and dementia."

Apple suppliers are planning to start assembling a new low-cost iPhone in February, Bloomberg reported. Apple is expected to officially unveil the new iPhone in March. It will look similar to iPhone 8 from 2017 and will include a 4.7-inch screen. The iPhone is expected to have Touch ID built in the home button but no Face ID biometric authentication.

HELICOPTER SPOTS SOS MESSAGE IN SNOW, RESCUES MAN STUCK FOR 23 DAYS IN ALASKA Alaska State Troopers have rescued a 30year-old man named Tyson Steele who was stranded for 23 days in subzero temperatures after his cabin was destroyed in an accidental fire. Tyson, who built a snow cave and survived on canned food, was rescued after State Troopers helicopter spotted 'SOS' in large letters in the snow.

Event

WHAT IT IS REALLY LIKE TO ATTEND DAVOS IF YOU HAVE NOT SPOKEN AT DAVOS EVER, YOU HAVE NOT ARRIVED AT THE WORLD STAGE! DAVOS ISN'T GLAMOROUS FOR EVERYONE, HOWEVER. HERE'S WHAT IT'S REALLY LIKE TO ATTEND THE EXCLUSIVE WORLD ECONOMIC FORUM (WEF) CONFERENCE THAT BRINGS BILLIONAIRES TOGETHER WITH BUSINESS AND POLITICAL LEADERS FROM ACROSS THE GLOBE. t is amazing to observe how World Economic Forum at Davos has expanded from a regional European manage ment meet started by a German business professor Klaus Schwab in 1971 to the world's most important business and economy conference. WEF is today perhaps the wealthiest NGO in the world with 1000 of the world's wealthiest businesses as its members, each having a turnover of over $5 billion. Attending a conference with 119 billionaires on a Swiss ski resort may sound like a glamorous experience, but there is more to Davos than meets the eye. A lot of time is spent waiting in lines. Some parties, including Salesforce's annual shindig hosted by Marc Benioff, can get pretty wild. Between the long lines, freezing cold weather, and boring panels, attending the World Economic Forum's annual meeting in Davos-Klosters, Switzerland, may not be as fun as it looks, if you're not a VVIP. Here's what it's really like to attend Davos.

1. It's not the most lively crowd. Davos is primarily attended by middleaged men. Attendance is by invitation SEASONAL MAGAZINE

only. As a result, the conference has long faced criticism over a lack of diversity among attendees â&#x20AC;&#x201D;for example, only 22% percent of Davos' 2019 attendees were women. The average age of Davos' male attendees is 54.

2. It's impossible to get anywhere close to the rich and powerful. Not even everyone who is invited to the conference gets to attend the most highprofile panels and parties. The WEF uses a "complicated caste system of coloured badges" to determine who can access which parts of the conference. The highest-profile attendees are given white badges with holograms. Even the Belgian Prime Minister didn't get one of those badges at last year's event. Even journalists are categorized through these badges. The lowest-level badges are

provided by the resort town's hotels and don't provide entrance to the conference center at all. They do get access into the after-parties and onto the ski slopes, however.

3. Most of the panels are pretty dense. With past themes like "Resilient Dynamism" and "Globalization 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution," even the topics of conversation at Davos can be hard to decipher. Complicating things further, the conference also has its own jargon. Attendees use phrases like "material improbabilities," "circularity," and "resilience imperative" in ways that can only be understood by other WEF members. Much of the conference's most interesting and

consequential discussions take place after hours and behind closed doors.

4. Going to Davos is super expensive. All attendees have to be WEF members. The annual membership fee starts at $62,000 and can run up to $620,000, depending on what type of membership you choose. There is also a separate admission fee for each year's WEF which is $28,000 per person, which is only waived for those invited as nonbusiness representatives. The costs don't end there, however. Hotels raise their prices to five times their normal rate during the conference. Rooms at two of the most popular hotels among attendees, the Belvedere and the InterContinental, are renting for $231 and $392 on nights in January, their websites show. Both hotels are sold out during the event.

5. The parties are wild beyond imagination. Various companies host a wide range of events for Davos attendees. One year, JPMorgan Chase rented out the Kirchner Museum Davos to throw a cocktail party co-hosted by Dimon and former British prime minister Tony Blair. Google throws a party each year at the InterContinental Hotel that The Times called "the hottest ticket in town." In 2013, former Facebook president Sean Parker threw an infamous party where "specially made stuffed animals illuminated dancers with lasers shot from their eyes" as John Legend performed. Also in 2013, Benioff flew in fresh flowers and a live band from his adopted home of Hawaii for Salesforce's party.

6. A lot of time is spent waiting in line. Attending Davos is a lot "like flying... without the actual flying," the BBC's Katie Hope wrote. Over 100 billionaires and 53 heads of state attended Davos 20202 recently, requiring tight security. Entry to the conference center requires passage through a security checkpoint comparable to what you find at an airport.. Davos turns into a veritable fortress during the event. To make matters worse, the lines often extend outside into the snow. SEASONAL MAGAZINE

Healthcare

VPS HEALTHCARE

GROWING THROUGH MEGA PROJECTS AND STRATEGIC PARTNERSHIPS ABU DHABI HEADQUARTERED VPS HEALTHCARE IS CEMENTING ITS PRESENCE IN UAE BY NEW MEGA PROJECTS LIKE BURJEEL MEDICAL CITY AND GROUNDBREAKING PARTNERSHIPS EVEN WHILE IT IS EXPANDING SYSTEMATICALLY IN ALL ITS INTERNATIONAL MARKETS INCLUDING INDIA. INDIA BORN YOUNG BILLIONAIRE Dr. SHAMSHEER VAYALI, THE CHAIRMAN AND MANAGING DIRECTOR OF THE GROUP WAS RECENTLY IN INDIA AND SEASONAL MAGAZINE CAUGHT UP WITH HIM AT THE GROUP'S VPS LAKESHORE HOSPITAL IN KOCHI, KERALA.

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Dr. Shamsheer Vayalil, CMD, VPS Healthcare

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ccolades continue to come searching for Dr. Shamsheer Vayalil, Chairman and Managing Director, VPS Healthcare, with the latest being his nomination to the 14member executive advisory council of Khalifa University of Science and Technology's College of Medicine and Health Sciences (CMHS), which is Abu Dhabi's first medical school. Khalifa University's College of Medicine and Health Sciences commenced classes this year, in September 2019. CMHS offers a fouryear post graduate Doctor of Medicine (MD) program, like similar programs in the US. The executive advisory council in which Dr. Shamsheer has been selected to, aims to support and advice CMHS on its strategies to develop the institution as a centre for academic excellence in medical education. Interestingly, Dr. Shamsheer Vayalil will be representing the private sector on the council. This is no wonder as VPS Healthcare is a leading healthcare provider with 23 hospitals and over 125 medical centres in the Middle East, Europe and

VPS signing an MoU with Dubai Health Authority India. The Group is opening a new cancer hospital in Abu Dhabi, which would be the Emirate's first such dedicated facility.

Mohamed bin Zayed City. The Dh1.2 billion project has been under construction for three years now and will have a soft launch soon.

The project, Burjeel Medical City will have the capacity to treat 400 inpatients and will be located in

Built to accommodate increasing demand for cancer services - both from within the UAE and abroad - it will be

Dr. Shamsheer Vayalil has been selected into the 14-member executive advisory council of Khalifa Universityâ&#x20AC;&#x2122;s College of Medicine and Health Sciences (CMHS)

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Burjeel Medical City, Abu Dhabi

Abu Dhabi’s first private hospital specialising in cancer treatment.

contribute to the betterment of the academic programme," he added.

Speaking on being selected to the executive advisory council, Dr. Shamsheer said that it is always an honour and privilege to be working with a group of such extensively experienced and learned men that are in the council.

The VPS Chairman is also exploring synergies with Khalifa University’s CMHS. Dr. Vayalil elaborated that VPS Healthcare is willing to collaborate with the University in academic research.

"VPS Healthcare has always supported and encouraged initiatives to improve and qualify medical education in UAE. We have always been a part of novel schemes and programs helping students doing medical courses get better knowledge and exposure to the sector. I am extremely happy to work with Khalifa University and will be doing to the best of my abilities to

VPS HEALTHCARE IS A LEADING HEALTHCARE PROVIDER WITH 23 HOSPITALS AND OVER 125 MEDICAL CENTRES IN THE MIDDLE EAST, EUROPE AND INDIA.

"Our upcoming facility, Burjeel Medical City, will be having an extensive cancer research centre. We would like to provide opportunities for the bright minds of the country to take up research in Oncology at our facility," he explained. Dr. Shamsheer has ambitious plans for Burjeel Medical City. He said the new facility will ensure that the right expertise was available, along with the very latest in cancer treating equipment, which would prove to be a game changer for patient care in the emirate. He said technology would play a big role in Burjeel Medical City by providing the right care in the first instance to make sure care is given in the earliest stage. As rising cost for cancer treatment is a

serious concern even in UAE, Dr. Shamsheer said that, technology will be the main tool in reducing cost and improving accessibility to patients. VPS continues to introduce and support global healthcare initiatives and innovations in UAE. The second edition of the Moonshot Initiative was recently hosted by VPS Healthcare in collaboration with Al Bayt Mitwahid (ABM), in Abu Dhabi on 29 November 2019. The key panel discussion was led by former Canadian Prime Minister Stephen J. Harper and others knowledge leaders including Nobel laureates and Dr. Shansheer. The initiative is a first-of-its-kind programme that gathered worldrenowned and industry leading scientists, policy makers, and health experts. The one-day event discussed the topic “Clinical Care: An Example of Pediatric Cancers.” The event also provided Emirati students from Abu Dhabi-based universities with the chance to network and explores collaborative opportunities with respected healthcare scientists. The Moonshot Initiative aims to create SEASONAL MAGAZINE

VPS Lakeshore, Kochi, India

VPS HAS ALSO SIGNED AN MoU WITH DUBAI HEALTH AUTHORITY (DHA), DURING ITS RECENT VISIT TO INDIA. THE MOU IS AIMED AT FACILITATING THE KNOWLEDGE TRANSFER AND COLLABORATION IN KEY HEALTHCARE AREAS.

platforms to develop enterprising scientists, innovative entrepreneurs and educators to help address the challenges facing society today and in the future, and enhance Abu Dhabi and UAEâ&#x20AC;&#x2122;s position among the top tier of global knowledge economies. The event will also shed light on how radical innovation can help drive progress and address the uneven distribution of healthcare resources. It aims to encourage and motivate public and private technology entrepreneurs and key players to work in line to transform the UAE into a knowledgebased economy. VPS Healthcare Group has also recently inked two strategic deals with Abu Dhabi and Dubai. In its home Emirate of Abu Dhabi it has signed a partnership with state carrier Etihad Airways for patients travelling from the Kingdom of Saudi Arabia to Abu Dhabi for medical treatment. SEASONAL MAGAZINE

Under this MoU, Etihad will provide VPS Healthcare with special rates on air fares on its flights from Riyadh, Jeddah and Dammam, complementing VPSâ&#x20AC;&#x2122;s medical services at its eight hospitals, including the flagship Burjeel Hospital, and its clinics in Abu Dhabi.

visited VPS Lakeshore Hospital and Research Centre, where they were received by Group Director Dr Shajir Gaffar and VPS Lakeshore CEO SK Abdulla, who presented an overview of the specialties available especially the organ transplant facilities and the Liver Care Institute.

The deal has the blessings of Health Authority of Abu Dhabi as it is their goal of promoting the city as a hub for medical tourism.

VPS Lakeshore has been noted for their excellence in liver transplants with just 5% failure rate as against the industry standard of 15%.

VPS has also signed an MoU with Dubai Health Authority (DHA), during its recent visit to India. The MoU is aimed at facilitating the knowledge transfer and collaboration in key healthcare areas.

This Kerala hospital which was taken over by VPS Group is performing admirably growing its annual revenue to Rs. 288 crore from the Rs. 228 crore last year. The Group is now planning a new hospital in Koxhikode.

DHA has a stated aim to provide highest quality super specialized care to their patients and visitors and they have agreed to work with a leading healthcare organization like VPS achieve this vision.

In Middle East, this year witnessed a new VPS Hospital in Sharjah and new facilities are now coming up in Dubai and Bahrain. The Group which employs over 10,000 employees is also considering its IPO either in London or Dubai.

While In Kerala, the DHA delegation

Technology

CHINESE TELECOM GIANT EYEING INDIAN MARKET STATE-RUN MARKET LEADER CHINA MOBILE IS SAID TO BE TIE-UP TALKS WITH VODAFONE IDEA AND AIRTEL TO OFFER CLOUD SERVICES.

hina’s largest mobile operator, China Mobile, is keen to enter the Indian market and has held early stage talks with telecom service providers Bharti Airtel Ltd and Vodafone Idea Ltd to jointly develop a cloud network here. “The top executives of China Mobile met senior managements of Bharti Airtel and Vodafone Idea separately in December. China Mobile is interested in the Indian market and wants to come as a holding company with either of these two companies or even both," a person aware of the matter said, requesting anonymity.

cloud services market here," the person cited above said. Bharti Telecom is the single-largest shareholder in Bharti Airtel with about 41% stake. Singtel owns 48% in Bharti Telecom, which gives it a 35% stake in Bharti Airtel. China Mobile Investment Holdings Co. Ltd, the investment arm of China Mobile, was established in 2016 as an independent entity to look at investment opportunities and manage its portfolios. Emails sent to China Mobile and Bharti Airtel remained unanswered at press time. Vodafone Idea said it does not comment on speculation.

A holding company owns sufficient voting stock in another company to enable it to control the latter’s policies and oversee management decisions. Though it owns the assets of other firms, it does not actively participate in dayto-day business operations.

State-owned China Mobile is the largest wireless carrier in the mainland with 930 million mobile customers and 170 million wireline customers. It offers data services, wireless data traffic services, mobile data solutions, telecommunications network planning design and consulting services, and technology support.

“China Mobile has grown the cloud space in its home market and is now scouting for investment opportunities overseas. It has initially proposed a structure which is similar to what Singtel has with Airtel, but for growing the

If the talks end in an equity investment, it will give the two Indian operators the financial muscle to fight Jio in the competitive telecom battleground and offer cutting-edge cloud services to accommodate increasing digitization

EMAILS SENT TO CHINA MOBILE AND BHARTI AIRTEL REMAINED UNANSWERED AT PRESS TIME. and the roll-out of 5G technology which entails storing large amounts of data on the cloud. India’s telecom sector witnessed largescale disruption upheaval after the entry of Jio, a subsidiary of Reliance Industries Ltd, in September 2016, with data prices plunging to rock bottom. Following this, half-a-dozen companies either shut shop or were acquired by bigger players. The domestic telecom market is now largely a three-way tussle between Bharti Airtel, Vodafone Idea and Jio. Bharti Airtel already offers cloud services under ‘Airtel Business’ even though mobile services fetch most of its revenue. Airtel’s wholly-owned data centre unit, Nxtra Data Ltd, is on an expansion spree with 10 new data centres being planned to cater to demand from content players and big cloud service providers. In June 2019, Vodafone Idea Business Services tied up with Microsoft to help firms adopting hybrid and cloud-based models to host their applications. If a deal materializes, it would also bode well for China Mobile which has been hunting for investment avenues given an almost saturated domestic market. China Mobile, which earns almost all its business income in China, wants international operations to contribute around 10% of revenue by 2023, Nikkei reported in August 2019, quoting company officials. The report also quoted China Mobile chairman Yang Jie as saying the years between 2020 and 2022 will be the “peak period" for China Mobile’s investments in the 5G roll-out. In 2014, China Mobile bought an 18% stake in Thai telecom group True Corp., owned by billionaire Dhanin Chearavanont’s Charoen Pokphand Group, for $881 million.

(Credit: LiveMint) SEASONAL MAGAZINE

IPO Watch

SAMHI HOTELS RECEIVES APPROVAL, NEARS ITS INITIAL PUBLIC OFFER SAMHI HOTELS, ONE OF INDIA'S LEADING LUXURY HOTELS OWNER, WHOSE PROPERTIES ARE MANAGED BY INTERNATIONAL HOSPITALITY MAJORS LIKE MARRIOTT, IHG AND HYATT, HAS RECEIVED FINAL APPROVAL FROM SEBI TO GO FOR ITS RS. 1800 - RS. 2000 CRORE IPO. PROMOTED BY INDUSTRY VETERAN ASHISH JAKHANWALA, AS THE FOUNDER, MD & CEO, IT IS A MARKET LEADER IN THE PREMIUM SPACE WITH 27 OPERATING HOTELS COMPRISING 4,048 KEYS ACROSS 12 CITIES, AND IS BACKED BY NOTED GLOBAL INSTITUTIONAL INVESTORS LIKE EQUITY INTERNATIONAL, GOLDMAN SACHS AND IFC. HOWEVER, DUE TO ITS RAPID EXPANSION SPREE FUNDED BY DEBT, SAMHI HAS BEEN IN THE RED. BUT WITH RECENT IPOS WITH NOT-SO-PERFECT FUNDAMENTALS GETTING OVERSUBSCRIBED BY INSTITUTIONS AND HNIS WITH MASSIVE FUNDING SUPPORT COMING FROM SEVERAL MARKET-RELATED NBFCS, THE ISSUE MAY SPARK INVESTOR INTEREST IF THE VALUATIONS ARE RIGHT. he success of recent IPOs of companies like CSB Bank and Ujjivan Small Finance Bank which have been oversubscribed by 87 times and 166 times respectively on massive funding support to the tune of Rs. 32,500 crore coming from shortterm commercial papers floated by several market-related NBFCs, is once again signalling that investor sentiment is upbeat for primary issues. However, the plight of the WeWork IPO in the US last quarter signals the beginning of an end – the end of demand for companies that are making losses even while demanding high valuations. This is an overhang that Samhi Hotels too will have to overcome when they go for their planned Rs. 1800 - Rs. 2000 crore IPO, of which Rs. 1000 crore will be a fresh issue and the rest an Offer for Sale (OFS) by existing investors. Loss making companies going for their IPOs is nothing new. After all, who can prevent investors if what they want a piece of the loss – a negative Earnings Per Share (EPS) - at a hefty valuation? So such companies too have had successful IPOs in the past in India as SEASONAL MAGAZINE

well as abroad. Some of them have eventually turned profitable, while some others are yet to turn a dime in profit, while some others have disappeared forever. If start-ups with even no idea on how to turn a profit can attract investments from even Private Equity (PE) funds, nothing could possibly prevent loss making companies from attracting lesser investors like noninstitutional investors and retail investors. This has been the businessas-usual in the investing world. But something changed in the world markets during the last quarter. One of the poster boys of the start-up and investment world had a hiccup. It was a commercial real estate company founded in New York only in 2010. But by 2019, the company had not only pioneered the shared workspace model but had become this segment’s undisputed leader, managing 46.63 million square feet, across 86 cities in 32 countries, which has been lapped up by buoyant companies in technology, financial services, health services and practically every emerging segment, and especially by start-ups.

Yes, this is indeed about WeWork now rechristened The We Company. Seeing WeWork’s tremendous success there was a mad rush by the global investing majors to own a piece of WeWork, so much so that its investors read like a Who-is-who of the largest institutional investors. JP Morgan Chase, T Rowe Price, Wellington Management and Goldman Sachs were all there in WeWork within a few years. And the valuation started swelling. By January of this year, WeWork was valued at $47 billion. 0 to 47 billion in just 9 years! But just ten months down the lane, that is by September end, WeWork’s valuation has plummeted to just $10 billion, which is interestingly even less than the $12.8 billion it has raised so far by selling stakes to investors! What was the great calamity that befell WeWork within these 10 months? Absolutely nothing, as their shared workspace model continues to grow admirably. The only blunder they did was they tried to go for their IPO at these inflated valuations. It was not really a blunder, as dozens of such companies pass through their IPOs in this way. But

SEEING WEWORK’S TREMENDOUS SUCCESS THERE WAS A MAD RUSH BY THE GLOBAL INVESTING MAJORS TO OWN A PIECE OF WEWORK, SO MUCH SO THAT ITS INVESTORS READ LIKE A WHO-IS-WHO OF THE LARGEST INSTITUTIONAL INVESTORS. this time, the market was not enthused at all that a company that was making losses of around $2 billion a year was going for its IPO on high valuations. And WeWork had to pull off its IPO and that is what plummeted the valuations and cost Co-founder Adam Neumann his job as CEO and his majority voting rights. In fact, most analysts think that this is not something specific to WeWork, but the beginning of an end – the end of demand for companies that are making losses even while demanding high valuations. When Samhi Hotels go for its IPO, there is likely to be an overhang of the highprofile WeWork debacle due to a few reasons. Firstly, Samhi too is currently a loss making venture. Secondly, Samhi too has been riding the valuation boom due to its high growth model which saw it zoom from 0 to over 4000 hotel rooms in just 7 years. Thirdly, Samhi too has high-profile investors like billionaire investor Sam Zell’s Equity International, Goldman Sachs and IFC. Samhi Hotels is mainly into the ownership or leasing of hotel properties, and not into the actual running of the hotels which are done by international brands like Marriott, IHG and Hyatt. This makes Samhi look more like a commercial realty company specializing in hotel properties. And this asset-heavy and debt-heavy model has been a dampener in making profits. Indian investors are not over enthusiastic over hotel stocks as time and again their asset heavy and debt heavy model has not delivered on investor returns. Will Samhi Hotels' Rs.2000 crore IPO be any different because it is a market leader in the premium space with 27 operating hotels comprising 4,048 keys across 12 cities for Marriott, IHG and Hyatt brands, with No.1 position in the first two brands. Like most large hospitality companies, Samhi too is saddled with large debt and has been making losses. The silverline is the 23 year experience of Ashish Jakhanwala, the Founder, MD & CEO. SEASONAL MAGAZINE

By Carl Jaison

KOHLI’S SELECTION HEADACHE IS ACTUALLY NOT A GOOD THING

t is an old adage in cricket: when a team has surplus talent and each of these players showcases their abilities effectively, it creates a good selection ‘headache’ for the team management. However, India’s struggle to find the right balance in the T20 format ahead of the ICC T20 World Cup is more of a threat than a boon. From the top-order to the spin department, Kohli has been left scratching his head on what could be a potentially balanced team. Selection headache being a good thing is a myth. Instead, India must find a team that, to use another popular sport adage, “picks itself”. While some of the slots have been cemented, it is in some key areas where Kohli must find the right fit. Having too many options to choose from can sometimes leave a team without a proper structure and does not produce optimal results. One way to begin picking a balanced team is to start from the very top: the opener’s slots.

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ny line-up featuring Rohit Sharma should have a necessary advantage. India’s leading run-scorer in the ODI WC, Rohit is currently in the form of his life. He hasn’t come quite good in the T20 series against West Indies but there are reasons to believe that might be a minor blip in his form. With the ability to play shots all-round the park, Rohit offers an attacking option at the top with the added advantage of playing the anchor’s role when the situation demands. Although susceptible to spin early on in his innings, the T20 format is almost tailor-made for Rohit’s style of play and India have got one of the best batsmen in what is a crucial slot. As his partner, Shikhar Dhawan has effectively played second fiddle and the right-left opening combination was working wonders for India in all three formats. However, Dhawan might have ceded his place in the Test format to

Mayank Agarwal while he has struggled to find his feet in the T20 format. KL Rahul, Rohit’s opening partner, is another batsman in sublime form. He played a crucial knock in the opening T20 match against the Windies and reposed faith in his captain for his ability to bat through tough phases. But, the second opener’s slot is anyone’s to grab with the likes of Shubman Gill, Prithvi Shaw and even Mayank Agarwal waiting in the wings. Kohli seems to have placed his trust in Rahul to be able to offer stability at the top given his reputation as being a clean hitter of the ball and an efficient grafter. Moreover, Rahul is an able asset to have on the field given his agility and quick hands in the inner circle. Kohli is almost certain to occupy the No. 3 slot, where he has performed at his majestic best. But if India wishes to accommodate a second all-rounder in the line-up, it would not be a stretch to place himself in the opener’s slot. With Kohli and Rohit to open, there is plenty of space to play the likes of both Shivam Dube and Hardik Pandya. At no. 4, Shreyas Iyer seems to be the answer. It may have been a stickling matter in India’s WC campaign, but Iyer has proved why he is the preferred option. He has made the No. 4 slot his own. But the constant change in the batting order could affect his rhythm and confidence as witnessed in the second T20. Kohli decided to send Shivam Dube and Rishabh Pant ahead of Iyer and the situation was not suited to his playing style. The decision was taken to allow the two southpaws to get some runs under their belt, with Iyer already a surety in the line-up for next year’s

KOHLI DECIDED TO SEND SHIVAM DUBE AND RISHABH PANT AHEAD OF IYER AND THE SITUATION WAS NOT SUITED TO HIS PLAYING STYLE.

WC. However, it is possibly more prudent to expose these batsmen to match situations that they are more likely to be in. Pant and Dube are best deployed when India is looking to up the ante while setting a total or during a run-chase. Iyer, given his remarkable ability to rotate strike and dispatch the loose balls out of the ground, is best utilized in the No. 4 slot. Therefore, it is vitally important to identify the roles for each batsmen and play to their strengths. The middle and lower middle order is another are of concern for India. This largely boils down to the playing conditions on a particular match day. If India wants to play two spinners (which is becoming increasingly likely in the shorter format), it would mean that Jadeja, Sundar will get the nod ahead of either Dube or Pandya. But, India has already got Yuzhvendra Chahal as

the main spinner. The team that played against the West Indies was one of the most unbalanced sides. Sundar, who becomes an instant pick when the opposition has left-handed batsmen, has struggled to stem the flow of runs in the middle overs. This was something that Ravichandran Ashwin did quite effectively during his heydays. However, there is no reason to believe that Ashwin should not be SEASONAL MAGAZINE

in contention for the off-spinner slot. He has more variations than Sundar, bats decently well and has rich experience of playing around the world. Therefore, the tried-and-tested combination of Jadeja and Ashwin in the lower middle order, following Pant and Pandya, should be the ideal choice in a spin-friendly wicket. On flat, batting surfaces, India could toy with the idea of bringing in an extra batsman say Kedhar Jadhav or Manish Pandey and play two spinners in Jadeja and Chahal. But it seems likely that India would go in with two spinning options at least, leaving no room for the extra batsman. But with the allrounder slots effectively meaning depth in batting, India can afford to go in with a bowling heavy line-up. That leaves us with the fast bowling department, where there are at least two slots up for grabs. Pandya giving the fifth bowling option, the likes of Bumrah and Shami become automatic picks. However, it might be more sensible to go in for variety in the pace attack. Shami might have one of the best strike-rates currently, but he is prone to giving away runs in the death overs. Bhuvaneshwar Kumar, who is also more than a handy batsman, can swing the ball both ways and is a

brilliant exponent of the yorker delivery. With Bumrah and Bhuvi bowling in tandem, it could make the opposition batsmen struggle to score runs freely. In the end, the T20 format only allows four overs off each bowler. Packing the side with three-four fast bowlers is not only surplus to needs, but unsettles the balance in other departments. But, the task would be to pick the â&#x20AC;&#x2DC;right players and to play them in their designated roles. Firstly, the top-order needs to be forego the overreliance on Kohli. It is vitally important that at least one of the two openers goes off to a flying start and lays the foundation for other batsmen to follow. Secondly, it is best not to tinker with the batting order too much. Shreyas Iyer must do what he does best. The same goes for

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Pant and Pandya. Probably the only potential scenario where Pandya or Pant could bat ahead of Iyer is if India is looking to score quick runs in the last overs. Finally, the notion of playing two spinners in all circumstances is vastly underestimated. Playing two pacers and Chahal, with either Jadeja or Ashwin as the second spinner, should be the way to go. Excess use of fast bowlers is counter-productive in the T20 format. In many ways, the selection headaches would only add to the confusion this time around. The key to unlocking the full potential of this squad is to clearly define the roles of each player, playing them in the right position and striking a balance between the bowling and batting department. Currently, India are struggling in all three respects.

Banking STATE BANK OF INDIA

WHAT ARE THE

WEAKNESSES THAT HINDER HIGHER VALUATION FOR SBI?

THERE HAS BEEN A SERIOUS PUSH IN THE MARKET FOR INDIA'S LARGEST LENDER, STATE BANK OF INDIA, TO HAVE MUCH BETTER VALUATIONS IN THE MARKET. THE TWIN PRONGED RATIONALE HAS BEEN THAT WHILE THE BANK IS DOING BETTER THAN EARLIER, ITS LARGE SUBSIDIARIES TOO HAVE BEEN PERFORMING WELL AND ADDING VALUE. BUT MARKET HAS A WAY OF ASSIGNING VALUE, THAT MAY BE NOT-SO-PERFECT IN THE SHORT-TERM, BUT PERFECT IN THE LONG-TERM. THAT MEANS SBI HAS SEVERAL HIDDEN WEAKNESSES THAT ARE PREVENTING HIGHER VALUATIONS, ONE OF WHICH WAS RECENTLY OUT WHEN SBI DISCLOSED THAT RBI HAD FOUND THAT IT UNDEREPORTED BAD LOANS BY RS.11,832 CRORES. HERE IS A LOOK AT WHETHER SBI IS A GOOD INVESTMENT BET AT THIS STAGE.

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Since SBI Chairman himself has come out in open saying that the bank deserves better valuation, there must be obvious reasons for the same. SBI has a deposit base of over Rs. 30 lakh crore and advances of nearly Rs. 22.5 lakh crore, which clearly make it the country's largest bank. It is also way ahead of competition in terms of both corporate loans as well as some core retail loans like home mortgages. It also leads by way of branches and customers. All these make SBI a market leader in banking, and market leaders usually command a premium in the market by way of superior valuations. But in SBI's case it has been the opposite. SBI stock now trades at just 1.44 times of its book value, whereas the leader in market capitalization, HDFC Bank is valued at 4.56 times its book value. There is no wonder both SBI fans and the SBI Chairman is peeved at this unfair treatment. The problem is compounded by the fact that the poor market show by SBI is despite some of its subsidiaries like SBI Life Insurance and SBI Cards putting up a good show in fundamental performance. While the former is already listed and contributing to SBI's performance in the markets, an even bigger buzz is around the latter one that is still unlisted. Indeed, SBI Cards' upcoming Rs. 9000 crore IPO is projected to be the next big thing that can happen to SBI and its stock. Taking a page from the book of aggressive private sector players, and with the backing of partner and mastermind Carlyle, one of the largest PE funds, SBI has been demanding a hefty valuation for SBI Cards. This credit cards business, which was reeling from NPAs of its own, just a few years back, had a valuation of Rs. 8000 crore when Carlyle came as an investor in 2017, after original partner GE Capital's exit. But now in 2019, just two years later, SBI Cards has been demanding a valuation between Rs. 57,000 to Rs. 60,000 crore. Of course, SBI Cards has been doing well with good growth and excellent Return on Equity in mid 30s, but this kind of valuation seems far-fetched even to many market participants. Macquarie, for example, has valued SBI Cards at just Rs

27,500 crore while Edelweiss has valued it at just Rs 11,300 crore. SBI Cards' IPO is likely to be well-marketed to investors on strengths like second-largest position and under-penetration of credit cards in India. But potential investors need to balance such strengths with the risks. While it is the second-largest player, the market leader HDFC Bank has a nearly 40% larger card base. Secondly, credit card penetration is much likely to remain very low in India for years more vis-avis advanced markets like Singapore and Hong Kong to which the Indian market is often compared. In any case, whatever valuation SBI Cards finally fetches, the valuation of SBI will be more dragged down by the core lending business. While SBI had a robust bottomline growth in Q2, it was largely due to one-off gains. And while fresh slippages have halved to Rs. 8800 crore from Rs. 16000 crore on a quarterly basis., fresh stress is now appearing in the form of an uptrend in agriculture NPAs. And the worst thing about the fresh NPA troubles is that it is due to the farm loan waivers, which is something the bank can't control, and which continues unabated in India in various states with Maharashtra poised to be the next. Also, the market seems to be wary about SBI's exposure to troubled NBFCs like DHFL, the resolution of which is now out from the hands of its lenders led by SBI, and in the hands of the banking regulator, RBI. Recently, SBI has disclosed that RBI had found out that it underreported bad loans and their provisioning by Rs. 11,932 crore and Rs. 12,036 crore, respectively, in 2018-19. This is the highest such divergence figures reported by any bank so far for the last fiscal. The bank also disclosed that if it had taken into account the provisions based on RBIâ&#x20AC;&#x2122;s findings, the bank would have reported a net loss of ?6,968 crore in 2018-19 instead of its reported profit of ?862 crore. That is why despite SBI's and its enthusiasts' push for better valuations, the market seems to have valued SBI optimally for now.

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Economy

WORLD BANK FORECASTS GROWTH RATES FOR DIFFERENT COUNTRIES THE GLOBAL ECONOMIC GROWTH IS FORECAST TO EDGE UP TO 2.5 PER CENT IN 2020 AS INVESTMENT AND TRADE GRADUALLY RECOVER FROM LAST YEAR'S SIGNIFICANT WEAKNESS, BUT DOWNWARD RISKS PERSIST.

South Asia is expected to pick up gradually, to six per cent in 2022, on the assumption of a modest rebound in domestic demand. "Growth in India is projected to decelerate to five per cent in FY(financial year) 2019/20 amid enduring financial sector issues. Key risks to the outlook include a sharper-than-expected slowdown in major economies, a reescalation of regional geopolitical tensions, and a setback in reforms to address impaired balance sheets in the financial and corporate sectors," the report said. In India, economic activity slowed substantially in 2019, with the deceleration most pronounced in the manufacturing and agriculture sectors, whereas government-related services sub-sectors received significant support from public spending, the bank said.

he World Bank has projected a five per cent growth rate for India in the 2019-2020 fiscal, but said it was likely to recover to 5.8 per cent in the following financial year. The growth rate for Bangladesh has been projected to remain above seven per cent through the forecast horizon and, in Pakistan, it is projected to languish at three per cent or less through 2020 as macroeconomic stabilisation efforts weigh on economic activity, the bank said in its latest edition of the Global Economic Prospects. "In India, where weakness in credit from non-bank financial companies is expected to linger, growth is projected to slow to five per cent in fiscal year 2019/20, which ends March 31, and recover to 5.8 per cent the following fiscal year," the World Bank said on Wednesday.

"With the growth in emerging and developing economies likely to remain slow, policymakers should seize the opportunity to undertake structural reforms that boost broad-based growth, which is essential to poverty reduction," World Bank Group Vice President for Equitable Growth, Finance and Institutions, Ceyla Pazarbasioglu, said. "Steps to improve the business climate, the rule of law, debt management, and productivity can help achieve sustained growth," Pazarbasioglu said.

The global economic growth is forecast to edge up to 2.5 per cent in 2020 as investment and trade gradually recover from last year's significant weakness, but downward risks persist, it said.

In the report's India section, the World Bank said tighter credit conditions in the non-banking sector are contributing to a substantial weakening of the domestic demand in the country. "In India, activity was constrained by insufficient credit availability, as well as by subdued private consumption," the report stated.

The US' growth is forecast to slow to

The bank said the regional growth in

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1.8 per cent this year, reflecting the negative impact of earlier tariff increases and elevated uncertainty. The Euro area's growth is projected to slip to a downwardly revised one per cent in 2020 amid weak industrial activity, the bank said in the report.

GDP growth decelerated to five percent and 4.5 per cent in the April-June and July-September quarters of 2019, respectively, the lowest readings since 2013, it said. Sharp slowdowns in household consumption and investment onset, the rise in government spending. Highfrequency data suggest that activity continued to be weak for the rest of 2019, the World Bank said. The bank, in the report, praised India's efforts to gradually eliminate subsidies on LPG. In India, starting in 2012, the government reformed its subsidy regime for liquified petroleum gas (LPG). LPG subsidies to households encouraged the formation of black markets where subsidised LPG distributed to households was diverted to the commercial sector. The government gradually increased the price of LPG for households while implementing a large-scale targeted cash transfer mechanism, the bank said. "The programme successfully eliminated distortions in the LPG market, with limited adverse consequences for the poor, and the fiscal savings obtained from the reduction in subsidies fully offset the costs of the targeted cash transfer," the report stated.

Technology

HAVE A LOOK AT THE WORLD’S LARGEST 3D-PRINTED HOUSE

3D-PRINTER DEVELOPER SQ4D HAS JUST 3D-PRINTED AN IMPRESSIVELY LARGE HOME, AND INDEED IS CLAIMING THAT THE 1,900 SQUARE FOOT ABODE IS THE ‘LARGEST PERMITTED 3D-PRINTED HOME IN THE WORLD’, NO LESS.

GOOGLE JOINS THE $1 TRILLION CLUB THE $1 TRILLION MARKET CAPITALIZATION CLUB HAS GOT A NEW MEMBER AND ITS NONE OTHER THAN GOOGLE’S PARENT COMPANY, ALPHABET, WHOSE MARKET CAPITALISATION HAS HIT THE MUCHCOVETED $1 TRILLION MARK.

Alphabet had recently appointed India-born Sundar Pichai as their CEO after co-founder Larry Page and Sergei Brin stepped down from their roles. hile larger buildings have been constructed with 3D printing – including a two-storey affair in Dubai, which at almost 7,000 square feet holds the official world record – this is certainly one of the biggest houses we’ve heard about, and it was created at an impressive lick of speed. SQ4D printed the house in 48 hours, albeit spread across eight days, and it was created right there on-site. That’s quick when you compare it to previous projects such as the 3D-printed houses in Mexico which were 500 square feet and took 24 hours to make. Furthermore, SQ4D pegs the cost of the construction materials at less than $6,000 (around £4,600). The building work was carried out by the company’s Autonomous Robotic Construction System (ARCS). SQ4D is a division of S-Squared 3D Printers, and the firm claims that with recent enhancements to its ARCS tech which were implemented after this particular project, the time taken to 3D-

print future houses will be cut in half, no less. The firm further notes that building with concrete is not only costeffective, but safer in terms of the finished home being more fireresistant, and indeed more resistant to the ravages of time in general. ARCS is capable of constructing foundations, utility conduits, and both exterior and interior walls. It also uses far less energy than traditional construction methods, so is environmentally-friendly, and labor requirements are reduced to as few as three workers. There’s a great deal happening with 3D printing in the construction industry in recent times, including building eco-houses (partly) out of mud. The speed of construction is one of the big plus points with using 3D printing technology, and if SQ4D can indeed deliver on making its already quick building process twice as fast, that’ll be a major step forward.

Alphabet is the fourth US company to hit the $1 trillion mark in market capitalisation. Apple was the first company to do so in 2019 and then Amazon and Microsoft soon followed suit. Analysts believe Pichai is one of the reasons why Alphabet’s market value could continue to grow. Under Pichai, Google’s big businesses search, advertising, YouTube and Android have raked in substantial revenues and profits. Alphabet’s stock gained about 28% in 2019, which helped it cross the $1 trillion mark now in the new year. Google and Pichai are betting big on their Cloud business its revenue has doubled every quarter in the last 12 months. Google is also set to expand its Cloud Health business, which may bring further gains. Challenges before Google are the current discontent among some of its employees. and there are a few antitrust probes coming up against Google, which could hamper its growth and create trust issues. SEASONAL MAGAZINE

Financial

WHY IS FORMER CHIEF ECONOMIC ADVISER CALLING THIS A GREAT SLOWDOWN? INDIA IS FACING A "GREAT SLOWDOWN" WITH ITS ECONOMY HEADED FOR INTENSIVE CARE UNIT PRIMARILY DUE TO A "SECOND WAVE" OF THE TWIN BALANCE SHEET CRISIS AT BANKS, FORMER CHIEF ECONOMIC ADVISER ARVIND SUBRAMANIAN HAS SAID.

ubramanian, who was Modi government's first chief economic adviser but quit in August last year, in new paper co-authored with the former head of the International Monetary Fund's India office Josh Felman said India is facing a "Four Balance Sheet" challenge comprising banks, infrastructure, NBFCs and real estate companies and is trapped in an adverse interest growth dynamic. "Clearly, this is not an ordinary slowdown. It is India's Great Slowdown, where the economy seems headed for the intensive care unit," he wrote in a draft working paper of the Harvard University's Centre for International Development. Subramanian had flagged the twin balance sheet (TBS) problem - debt accumulated by private corporates becoming non-performing assets (NPA) of banks - back in December 2014, while he was CEA to the Narendra Modi government. In his new paper, he has made a distinction between the original TBS and "TBS-2". TBS-1 was about bank loans made to steel, power, and infrastructure sector companies during the investment boom of 2004-11 turning bad. TBS-2 is largely a postdemonetization phenomenon, involving non-banking financial companies (NBFCs) and real estate firms. "Since the Global Financial Crisis, India's long-term growth has slowed as the two engines propelling rapid growth -- investment and exports sputtered. Today, the other engine - consumption SEASONAL MAGAZINE

has also stalled. As a result, growth has plummeted precipitously over the past few quarters," he wrote. India's GDP growth in the JulySeptember quarter slowed to a six-year low of 4.5 per cent. This was the sixth consecutive quarter when the growth rate had fallen. "Indeed, the economy seems locked in a downward spiral," he said. "Best capturing this stark reality is the astonishingly high interest-growth differential. The corporate cost of

borrowing now exceeds the GDP growth rate by more than 4 percentage points, meaning that interest on the debt is accumulating far faster than the revenues that companies are generating." This, he said, has caused "a resurgence in the amount of stressed debt, a second wave of the Balance Sheet Crisis". If this process is left unchecked, the economy will continue to spiral downward, as stress reduces growth, which then intensifies the stress, he said.

THE COLLAPSE OF IL&FS IN SEPTEMBER 2018 WAS A "SEISMIC EVENT" NOT ONLY BECAUSE OF THE RS 90,000 CRORE-PLUS DEBTS OF THE INFRASTRUCTURE-CUM-LENDING BEHEMOTH, BUT ALSO ITS "PROMPTING MARKETS TO WAKE UP AND REASSESS THE ENTIRE NBFC SECTOR. "Clearly, action must be taken to stabilize the economy and get it back on the path of rapid growth," he said. "But in the current circumstances, the standard macroeconomic tools are not very useful. There are actions that the government cannot do (further significant fiscal stimulus); must not do (reducing personal income tax rates or raising GST rates); can do with only limited effectiveness (easing monetary policy)." According to Subramanian, first major action -- almost a pre-condition for righting the economy -- could be a Data Big Bang, which instill confidence and produce a reliable basis for policy making. "This must comprise the publication of unreleased reports together with a strategy for improving official statistics in at least three areas: the real sector (GDP, consumption, and employment), fiscal accounts, and stressed assets in the banking system," he said. Next, a new asset quality review to cover banks and NBFCs must be conducted. Also changes to the Insolvency and Bankruptcy Code (IBC) be made to ensure that participants actually have incentives to solve the problem. He also advocated the creation of two executive-led public sector asset restructuring companies (bad banks), one each for the real estate and power sectors, while at the same time strengthening oversight, especially of NBFCs. Recapitalization of banks should be linked to resolution and reforms such as shrinking public sector banking should be undertaken. "There is, of course, a reason why these policies have not been implemented before. They are politically difficult and

other, easier alternatives have seemed more attractive. But, the government currently has a tremendous amount of political capital. And by now all the alternatives have been tried and found wanting. So, finally, after a long and difficult decade, the government has both the opportunity and the clear need to resolve the Four Balance Sheet (FBS) problem," he said. Dwelling into the current problem facing the economy, he said, after demonetization, considerable amounts of cash made their way to banks, who on-lent a major part of that to NBFCs. The NBFCs, in turn, channelled this money to the real estate sector. By 2017-18, NBFCs were accounting for roughly half of the estimated Rs 5 lakh crore of outstanding real estate loans. The collapse of IL&FS in September 2018 was a "seismic event" not only because of the Rs 90,000 crore-plus debts of the infrastructure-cum-lending behemoth, but also its "prompting markets to wake up and reassess the entire NBFC sector," he said. What the markets discovered was profoundly disturbing. A lot of NBFC lending in the recent period was concentrated in one particular industry -- real estate -- which itself was in a precarious situation.

WOMEN LIKE HER GIVE BIRTH TO MONSTERS: KANGANA ON JAISING'S 'FORGIVE RAPISTS' ADVICE Reacting to advocate Indira Jaising's statement that Nirbhaya's mother should forgive her daughter's rapists, Kangana Ranaut said, "That lady (Jaising) should be kept in jail with those convicts for four days." "Women like her give birth to such monsters and murderers," she added. Jaising had said Nirbhaya's mother should follow Sonia Gandhi's example, who forgave husband Rajiv Gandhi's killer.

DON BRADMAN ONCE REVERSED BATTING ORDER, SCORED 270 AT NO. 7 Cricket legend Don Bradman reversed the Australian batting order to protect batsmen from 'wet' wicket in the second innings of the third Ashes Test in 1937. The innings was opened by Australia's tail-enders while Bradman came to bat at number seven on January 4, and scored 270(375). Bradman's knock was later named by Wisden as the greatest in Test cricket.

The current slowdown, the paper says, is worrisome not just because GDP growth has slowed down to 4.5 per cent in the second quarter of 2019-20. Even more distressing is the disaggregated data. "The growth of consumer goods production has virtually ground to a halt; production of investment goods is falling. Indicators of exports, imports, and government revenues are all close to negative territory," it said. "These indicators suggest the economy's illness is severe, unusually so. In fact, if one compares the indicators for the first seven months of this year with two previous episodes, the current slowdown seems closer to the 1991 slowdown than the 2000-02 recession." Electricity generation figures suggest an even grimmer diagnosis: growth is feeble, worse worse than it was in 1991 or indeed at any other point in the past three decades, it added.

BRAD CALLED OUT 'ANISTON!' & THEY EMBRACED: PHOTOGRAPHER WHO TOOK THEIR PICS Photographer Emma McIntyre, who clicked ex-couple Brad Pitt and Jennifer Aniston's viral pictures at SAG Awards, has revealed what happened in the build-up to the moment. "He called out 'Aniston!' and she turned around and they embraced and congratulated each other," Emma recalled. "[They] genuinely [seemed] happy to see one another...You could sense the respect between [them]," she added. SEASONAL MAGAZINE

In-Focus

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COCHIN SHIPYARD

SURGING ONCE AGAIN

COCHIN SHIPYARD IS SURGING ONCE AGAIN AFTER ALMOST TWO CHALLENGING YEARS, ON THE BACK OF EXCELLENT Q2 NUMBERS AS WELL AS A RS. 3000 CRORE ORDER WIN FOR PHASE-III OF THE AIRCRAFT CARRIER, INS VIKRANT IT HAS BEEN BUILDING. APART FROM THE RS. 6311 CRORE CONTRACT FOR BUILDING EIGHT ANTI-SUBMARINE CORVETTES IT IS BUILDING FOR INDIAN NAVY, CSL HAS ALSO OPENED NEW GROWTH AVENUES BY BAGGING AND EXECUTING ORDERS IN THE EMERGING INLAND AND COASTAL ROUTES FOR PASSENGER FERRIES, RO-RO VESSELS AND ROPAX FERRIES FROM VARIOUS PUBLIC & PRIVATE SECTOR CLIENTS, WHICH WILL GO A LONG WAY IN SMOOTHING THE LUMPY NATURE OF ITS ORDERS AND FINANCIAL PERFORMANCE. GOVERNMENT NOD TO PAY LONG-PENDING SUBSIDIES TO SHIPYARDS HAS ALSO COME AS A POSITIVE. CSL IS ALSO ON AN UNPRECEDENTED EXPANSION SPREE NOT ONLY IN ITS HOME TURF OF KOCHI, BUT IN SELECT PORT CITIES LIKE MUMBAI, KOLKOTA AND PORT BLAIR OF ANDAMANS. UNDER ITS CMD MADHU S NAIR, THE SHIPBUILDER IS WINNING AND EXECUTING ORDERS AT A REMARKABLE PACE, AND WHILE IT IS TRADING WELL BELOW IT'S ALL TIME HIGH AND IPO PRICE, IT HAS RECENTLY MARKED A SWIFT 52-WEEK HIGH WITHIN A MONTH'S TIME.

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n the short run, the market is a voting machine but in the long run, it is a weighing machine,” wrote Benjamin Graham, the father of value investing.

“I

Cochin Shipyard stock reminded investors of this axiom in late October when after touching a new 52-Week Low, it swiftly climbed to a new 52Week High by mid-November. The stock of this leading public sector shipbuilder had been largely trending lower, except for some cyclical uptrends, for the last two years, from soon after its IPO in late 2017. Not that its fundamental performance was especially weak during this period. Cochin Shipyard put up reasonable growth in most quarters, but yes, the growth was lumpy as the business is about making ships and repairing ships and not any consumer facing business where growth would be more or less uniform across the quarters. What changed dramatically in late October for the company? Rather than something specific, it was a combination of factors. In fact, a lot of developments inside and outside the company went in its favour, and when this happens to a hammered down stock, it is bound to surge again swiftly like CSL did. The reversal in fortunes started with the

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WITH THE INS VIKRANT PROJECT BY CSL, INDIA WILL JOIN THE ELITE GROUP OF NATIONS HAVING INDIGENOUSLY BUILT AIRCRAFT CARRIERS. AT PRESENT, ONLY THE US, RUSSIA, BRITAIN AND FRANCE HAVE THE CAPABILITY TO DESIGN AND BUILD AIRCRAFT CARRIERS OF 40,000 TONNES AND HEAVIER. government’s announcement of corporate tax cuts in late September. While the market was taken by surprise, most analysts put their initial bets on the largest profit-making private sector companies. It took some weeks for the market to realize another set of stocks that would be clear beneficiaries – PSU stocks. Profit-making public sector enterprises stood to benefit from the move as they were in the habit of disclosing their full profits in the most transparent way. This set the stage for a rerating of PSU stocks and along with peers like ONGC, MOIL, Hindustan Aeronautics, NMDC, BEML, SAIL, BPCLetc, the stock of Cochin Shipyard too started rallying. But the surge had more to do with internal developments in the company. On the last day of October, Cochin Shipyard had good news for the market,

as it received a much awaited mammoth order. Cochin Shipyard had finally inked with India’s Ministry of Defence, the final and Phase-III contract for the construction of the indigenous aircraft carrier (IAC), or INS Vikrant, which has been going on in the company for a few years now. This new Rs. 3000 crore contract covers the operational and harbour acceptance trials of various equipment and systems installed onboard and also the sea trials of the carrier. The contract with MoD also covers some activities which are to be undertaken post delivery of the vessel including support during weapon and aviation trials. The size of the order was not missed by the market. Cochin Shipyard is a small-cap stock by Indian standards, with a market capitalization of just over Rs. 5100 crore, and a new order that is around 60% of the market cap can only be truly transformational for the company. With its length of 262 meters, the 40,000 ton warship being built at CSL would have two take-off runways and a landing strip. Twenty MiG 29K fighter jets and 10 helicopters will be deployed on the aircraft carrier. With theINS Vikrant project by CSL, India will join the elite group of nations

having indigenously built aircraft carriers. At present, only the US, Russia, Britain and France have the capability to design and build aircraft carriers of 40,000 tonnes and heavier. Such complex projects at Cochin Shipyard are led by its Chairman & Managing Director, Madhu S Nair, who is a postgraduate naval architect from Japanâ&#x20AC;&#x2122;s Osaka University. He heads a 2000-people strong team of ship designers, engineers, builders, managers, and support staff at Cochin Shipyard. Cochin Shipyard also had robust numbers to report for Q2, in which its net profit rose by 40% to Rs 206.3 crore, whil revenue was up 22%. CSL has a high dividend yield of 3.35% and is known for its strong net cash position of Rs. 2300 crore, which is 43% of its market-cap. The company had also won another key order in the same week, though a much smaller one. CSL bagged from Kochi Metro Rail Limited (KMRL) an order worth Rs 175.70 crore for the design and construction of 23 hybrid-electric passenger ferries for the upcoming Kochi Water Metro project. While the order is smaller than a typical

CSL order, it holds immense promise. These passenger ferry boats will provide inland transportation using the latest electric-hybrid technology. Inland transportation has been an emerging priority area for the central and various state governments, as it can boost tourism and trade, even while keeping transportation costs low. For instance, KMRL itself has a requirement of around 78 high-quality boats of international standard.Of this, only 23 boats having capacity of 100 PAX were tendered by KMRL now. CSL has demonstrated expertise in this

CSL HAS BAGGED FROM KOCHI METRO RAIL LIMITED (KMRL) AN ORDER WORTH RS 175.70 CRORE FOR THE DESIGN AND CONSTRUCTION OF 23 HYBRIDELECTRIC PASSENGER FERRIES FOR THE UPCOMING KOCHI WATER METRO PROJECT, AND HAS DELIVERED TWO RO PAX VESSELS DESIGNED AND BUILT BY IT FOR THE INLAND WATERWAYS AUTHORITY OF INDIA (IWAI).

emerging area. A few weeks earlier to bagging the KMRL order, Cochin Shipyard had delivered two RO Pax vessels designed and built by it for the Inland Waterways Authority of India (IWAI). Ro Ro vessels or Roll-on Roll-off vessels are freight vessels designed for carrying vehicles which can drive in and drive out for easy transportation. Ro Pax is a Ro-Ro vessel built for freight vehicle transport plus passenger accommodation. The two Ro Pax vessels delivered recently were the third and fourth among the 8such vessels ordered by IWAI, which has also ordered 2 pure Ro-Ro vessels from CSL, all of which SEASONAL MAGAZINE

are to operatedin strategic locations in the national waterways. These Ro Paxvessels designed and built by CSL can accommodate around 200 passengers and will be manned by a crew of eight. Additionally, the vessels can carry two trucks and four cars. They are also equipped with all life-saving equipment and are built as per the Indian Register of Shipping(IRS) standards. Orders such as from IWAI and KMRL are important for CSL in that it will help smooth out the lumpy and cyclical nature of the conventional ship building and repairing orders. In fact, Cochin Shipyard has several ongoing projects in the medium to small categories of vessels. It is building two 1200-PAX and one 500-PAX vessels for Andaman and Nicobar Administration. Clients for smaller vessels which are now being built include Government of Tamil Nadu, Kerala’s Department of Fisheries for which three marine ambulances are being made, and a JSW Group company forwhich four Mini Bulk Carriers are being built. However, CSL’s major customers continue to be the defence departments. Apart from the first indigenous aircraft carrier, it is building smaller specialized vessels for Indian Navy, a Technology Demonstration Vessel for the DRDO, and nine Floating Border Outpost vessels for the BSF. The ongoing projects for Indian Navy include eight ASW Corvettes and two brows and pontoons. The major Indian Navy order it bagged SEASONAL MAGAZINE

in April isaRs 6,311 crore contract for the construction of eight antisubmarine warfare shallow watercrafts (ASWSWCs). According to the contact, the first ship is to be delivered within 42 months from contract signing date and subsequent balance ships delivery schedule will be two ships per year.The project will have to be completed within 84 months from the signing. The proposed ships for Navy are hightech affairs designed for a deep displacement of about 750 tonnes, speed of 25 knots and complement of 57 and capable of full-scale sub-surface surveillance of coastal waters and coordinated ASW operations with aircraft. In addition, the vessels will have the capability to interdict/destroy subsurface targets in coastal waters and can also be deployed for search and rescue by day and night in coastal areas. In their secondary role, they will be

THE MAJOR INDIAN NAVY ORDER IT BAGGED THIS YEAR IS A RS 6,311 CRORE CONTRACT FOR THE CONSTRUCTION OF EIGHT ANTISUBMARINE WARFARE SHALLOW WATERCRAFTS (ASWSWCS). CSL IS BUILDING ASWSWC CORVETTES NOT ONLY ACCORDING TO INDIAN NAVY’S REQUIREMENTS BUT ACCORDING TO INTERNATIONAL STANDARDS FOR THIS CLASS OF VEHICLES, AS IT HAS AN EYE ON EXPORTS FROM OTHER COUNTRIES.

capable of prosecuting intruding aircraft and lay mines in the sea bed. The vessels will be equipped with highly advanced state-of-the-art integrated platform management systems including propulsion machinery, auxiliary machinery, power generation & distribution machinery and damage control machinery. CSL is building ASWSWC Corvettes not only according to Indian Navy’s requirements but according to international standards for this class of vehicles, as it has an eye on exports from other countries. For taking on such mammoth and diverse projects, as well as to augment its bread-and-butter ship repairing services, Cochin Shipyard is also undertaking one of its largest ever infrastructure expansions. It is currently investing a total of Rs 2,769 crore in building a new 310 M long dry dock and a ship-lift based Ship Repair yard at Willingdon Island of Kochi. But more than such conventional operations, CSL is now plotting an ambitious plan to expand geographically. It has already commenced its ship repair operations at Mumbai Port Trust. CSL has a stated goal to establish its presence across the Indian Coast, and towards this it is set to commence its ship repair operations at Kolkata and Port Blair soon. In Kolkota it has more ambitious plans as it has formed a Joint Venture Company there to serve the needs of the inland waterways vessels segment and is creating a new shipyard itself in Kolkata for this segment.

WHATSAPP'S LESSER KNOWN FEATURES HERE'S A LIST OF TRICKS THAT YOU CAN USE ON WHATSAPP AS A POWER USER.

WhatsApp is one of the most popular messaging platforms around the globe. The app has been around for almost a decade now and the company has added tons of features since its introduction. While most features are out in the wild for people to know about them, there are certain features or tricks that not many people tend to know about. So, here's a list of tips and tricks that can make your WhatsApp life better.

1. PIN IMPORTANT CONVERSATIONS We all have that one or two people that we text almost constantly on WhatsApp. With so many messages arriving on different chats, the specific contact tends to go invisible on the first page. In order to make sure that a specific chat stays on top, you can pin the chat. Just tap and hold on the contact or group and hit pin icon on the top. As for iPhone users, swipe right on any chat and tap on the pin icon.

2. MARK IMPORTANT MESSAGES There are times when we want to mark a specific message so that when we need them we don't need to hunt it down. One can mark important messages or media files in a chat by adding a star to it. On both iOS and Android, just tap and hold the message you would like to mark and hit the Star icon. You can find these important messages under the Starred

messages section in the WhatsApp menu.

3. ADD A DESKTOP SHORTCUT While you can always pin a chat to bring it to the top of the WhatsApp chat screen, you will always need to open the app first. One can quickly head over to a WhatsApp contact when needed by creating a desktop shortcut of the contact or group. On your Android phone's home screen, tap and hold on the blank area and tap on Add Widget. Now look for WhatsApp Chat and tap and hold it to add to the home screen. Now, you can select the contact or group that you would like to show up directly on your home screen. However, this feature is not available for iPhone users.

I HAVE MORE MONEY THAN SEHWAG HAS HAIR ON HIS HEAD: SHOAIB AKHTAR Shoaib Akhtar took to his YouTube channel to respond to Virender Sehwag's old remark that the exPakistani fast bowler praises India as he wants to make money. "I've more money than Sehwag has hair on his head," he said. Akhtar added, "I don't understand if I'm giving my analysis why it bothers people. I didn't become famous due to YouTube."

TRUMP TWEETS RECORD 131 TIMES ON IMPEACHMENT TRIAL DAY Amid impeachment trial against US President Donald Trump in Senate, he posted on Twitter 131 times, breaking his earlier record for tweets posted on a single day. The posts including 36 original tweets and 110 retweets made the day his most active on Twitter since he became president. Trump's tweets on Wednesday were on impeachment hearing, his successes as president.

4. FINGERPRINT UNLOCK Fingerprint Unlock or Face ID lock has been there on WhatsApp for quite some time now. Just head over to Settings on WhatsApp > Account > Privacy and go to Fingerprint Lock. Enable the option and customise it according to your needs.

5. TWO-FACTOR AUTHENTICATION For an additional layer of security, one can always enable two-factor authentication. One can do this by heading over to WhatsApp Settings > Account and tap on Two-Step verification. Once enabled, anytime you set up WhatsApp on a new smartphone, apart from the OTP, the app will also require you to enter the two-step verification code. The app will also ask it every now and then to ensure that you have not forgotten it.

TO PLAY A POLICEMAN WILL BE THE MOST CHALLENGING ROLE FOR ME: HRITHIK Actor Hrithik Roshan at 'Umang: A Mumbai Police Welfare Fund's Initiative' said that a police officer's role will be the "most challenging role of his life". "I have essayed all kinds of roles...haven't got a chance to play a policeman's character," he added. "I would urge the filmmakers to write a police officer's role for me," Hrithik further said. SEASONAL MAGAZINE

Home Buying

SBI INTRODUCES

NOVEL HOME LOAN WITH

MONEY BACK GUARANTEE ON STUCK PROJECTS

To regain the trust of homebuyers, State Bank of India (SBI) has announced the Residential Builder Finance with Buyer Guarantee (RBBG) to safeguard homebuyers financially by issuing guarantee for completion of projects to customers availing SBI Home Loans. However, buyers will be able to secure their investment in those ongoing home projects financed by the bank itself through developer loans.

he term of the guarantee will coincide with the time it takes to receive an occupation certificate for the project. The scheme is only available to buyers who have taken a home loan from SBI for the projects identified and eligible for the bank guarantee. RBBG will focus on affordable housing segment in the range of up to Rs 2.50 crores in seven Indian cities initially. These include Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Hyderabad, Bengaluru, Pune, Kolkata and Chennai. This will ensure that a large number of projects across all budget segments will get covered under it. Borrowers can seek a refund if the builder fails to meet the deadline under the Real Estate (Regulation and Development) Act. All builders have to get their projects registered under RERA and declare a timeline for its completion. The guarantee will be available for RERA registered projects and a project will be considered stuck after it crosses the RERA deadline. Under this product, all reputed builders fulfilling the prescribed criteria by the bank can avail loan between Rs. 50 crore to Rs. 400 crore. Criteria includes star rating and CIBIL SEASONAL MAGAZINE

score. Under RBBG, the guarantee would be given by the bank till the project gets the occupation certificate (OC). The product also offers loans of up to Rs 400 crore to ‘reputed’ residential developers. The guarantee will be part of an agreement between India’s largest lender, the developer and the homebuyer. The bank will fund the project and also extend the home loan necessary to buy a house. "It could be a tripartite agreement or whatever is legally required," the bank officials said. To begin with, SBI has tied up with citybased real estate developer Sunteck Realty for its three ongoing projects in Mumbai Metropolitan Region (MMR). These include Sunteck World project at Naigaon, 4th Avenue SunteckCity at Oshiwara District Centre (ODC), Goregaon (West) and upcoming project near Lokhandwala at Andheri (West).

"We feel that the partnership of the biggest bank of India and Sunteck Realty as a first brand for the scheme itself stands as an endorsement of our strong brand and product offerings, our track record of timely delivery and financial prudence. This unique initiative will provide multiple benefits to the homebuyers along with faster loan processing, competitive home loan rates along with quality product assurance. "The guarantee will be part of a tripartite agreement between SBI, Sunteck Realty and the homebuyer. The homebuyers can secure their investment in the ongoing projects financed by the bank itself and can get a refund of the principal amount as per the bank's policy depending on the arrangement mentioned in the tripartite agreement," said Kamal Khetan, Chairman and managing director, Sunteck Realty Ltd, What does the scheme hope to

THE GUARANTEE WILL BE PART OF A TRIPARTITE AGREEMENT BETWEEN SBI, SUNTECK REALTY AND THE HOMEBUYER. accomplish? SRBBG seeks to safeguard homebuyers financially by issuing guarantee for completion of projects to customers availing SBI home loans. "The housing project will be controlled by the bank - it will release funds to the developer and to the buyer. In this way there will be little chance of the project getting stalled or the bank guarantee getting invoked," the official said. The scheme comes in at a time when the real estate sector is undergoing liquidity issues and under-construction projects have been impacted by the National Housing Bank’s decision to ban housing finance companies from offering interest subvention schemes. It gives fence sitters a good enough reason to invest in under construction projects, which are usually considered as risky. Currently, with several projects stuck due to last mile funding issues, homebuyers are preferring to go in for ready-to-move-in units that are considered 'relatively safe'. Real estate experts believe that such a scheme may increase sales volumes. By offering a guarantee on the money they have spent on the house, SBI is ensuring that the homebuyer has no reason to pursue insolvency proceedings in case of project delay or failure. The bank will also ensure that all of the builder’s payments to service providers are done through a SBI account, which will help the bank keep a close tab on any defaults. Experts have termed it as a 'good move' and a positive for the real estate sector. The underlying provision of this scheme – that the bank commits to refund the principal loan amount if a developer fails to complete the project - will ensure that SBI remains highly selective in its approach and work only with the most reliable and trustworthy developers, said Anuj Puri, Chairman – ANAROCK Property Consultants. To mitigate the risk of having to issue

refunds, it will also keep a regular check on the progress of the project and see to it that it is completed on time. This will eventually give major assurance to all homebuyers who will opt for loans under this scheme from the SBI, and help in boosting their confidence, he said. The scheme is aimed at safeguarding select SBI home loan clients who may get stuck in a project which has not been able to get completed for any reason/is not able to get the OC. "There are some caveats - this would apply to only select projects where SBI does a thorough assessment of the builder and project viability - something which means that only few projects will pass muster. It is also not clear whether the pricing for such loans will be higher given the guarantee offered. This would also, of course hold true for the future and not cover existing loans. We hope that more lenders will follow suit and this would be welcome news to new homebuyers who may have been dithering on looking at under construction projects," said Gagan Randev, National Director, Capital Markets at Colliers International India. Pankaj Bajaj, Managing Director, Eldeco Group, is of the view that the last couple of years have seen a strong preference towards ready-to-move-in properties as compared to under construction projects. The result was that developers of under construction projects started facing a funds crunch which led to a spiral of delayed projects, financial distress and further preference for under construction properties. In desperation developers were going for expensive funding of up to 20 percent per annum in order to complete the project. Now this product from SBI brings back the confidence in and under construction project. Hopefully other mortgage lenders will follow, he added. Will interest rate be higher than a conventional home loan rate? No. There will be no additional cost to the home loan buyer. The builder may have to pay a nominal rate for the bank guarantee, the bank officials said. In this case SBI is advancing loans to both builders and homebuyers. They will have a lien on the property, the land SEASONAL MAGAZINE

and various other collateral. Guarantee emanates from their conviction that they can make the builder complete the project as per the RERA timeline. "They have complete control – almost like a quasi-project manager. This is good for the real estate ecosystem and will help boost sales," said Suresh Sadgopan, founder of Ladder7 Financial Advisories, a financial planning firm. How will it help builders and homebuyers? For the builder, it will by all means add more credibility to the concerned project which in turn will help him attract more homebuyers. For homebuyers, given the condition of the scheme, they will be assured that buying in such projects (associated with SBI) will be least risky because the bank itself would be very wary of associating with unscrupulous players. Are there any hurdles foreseen going forward? At the onset of this scheme, it seems fairly attractive and affirmative for both builder and the homebuyers. The only challenge will be do a constant follow-up on the project progress. The bank will have the additional task of ensuring that the project construction progresses on time for which it will have to set up an extra team of professionals, said Puri. Jaxay Shah, Chairman, Credai, said that while it is good move, "we have to see SBI how fast, efficient and aggressive they become in funding builder projects and it will remain to be seen how effectively the bank enters into new partnerships with developers because as we understand they will only give a guarantee scheme in projects they have funded". Homebuyers, however, are skeptical. "Homebuyers, in any case, get a written guarantee by way of agreement from the builder. The builder buyer agreement has historically mentioned the rate at which penalty will be given to the homebuyer in case of default and also the refund clause. And yet, buyers have been forced to approach Supreme Court, NCLT, RERA or for that matter the consumer court. "RERA authorities have been reluctant to order for refund on the ground that it may jeopardise the project and consequently interest of other SEASONAL MAGAZINE

homebuyers. In several instances where homebuyers managed to get refund orders the same has not been honoured. This scheme only reads good only on paper," said Abhay Upadhyay, president, member Forum for Peoples’ Collective Efforts (FPCE).

a building consisting of apartments, or converts an existing building or a part thereof into apartments, for the purpose of selling all or some of the apartments. A bank as a guarantor is involved in the development of the project may even be deemed to fall within this definition.

However, the scheme can be made full proof provided it is ensured that the principal amount is transferred to the buyer’s account on the same date there is a default or the date on which the project timeline lapses as is the case with most insurance policies without approaching any court of law or taking legal steps, he added.

"Based on a preliminary read, this scheme appears to be two fold – one where the developer can avail a loan for the project after the requisite due diligence has been completed by the bank and also where the homebuyer can avail a home loan from the bank which is backed by a guarantee. Based on the announcement, in the event of default in project completion, the homebuyer is protected by way of a guarantee which ensures refund of money until the project obtains an occupancy certificate," said Yudhist Narain Singh, senior partner, YNS Associates.

What is the recourse available to buyers in case the project is delayed? SBI Chairman Rajnish Kumar has been quoted as saying that through this scheme SBI wants to take back the "bankruptcy remote from homebuyers and operational creditors ". What this means is that by offering a guarantee on the money spent on the house, SBI is ensuring that the homebuyer has no reason to pursue insolvency proceedings in case of project delay or failure. Legal experts are of the view that the scheme does not prohibit a homebuyer from approaching any of the legal platforms available if the need were to arise - RERA and consumer court - in case the project is not completed or the loan amount is not refunded or for that matter even the NCLT in the event that the developer becomes insolvent. They said a guarantee is legally enforceable and primarily comes under contract law. The definition of promoter under RERA too is very wide and includes a person who constructs or causes to be constructed an independent building or

RERA AUTHORITIES HAVE BEEN RELUCTANT TO ORDER FOR REFUND ON THE GROUND THAT IT MAY JEOPARDISE THE PROJECT AND CONSEQUENTLY INTEREST OF OTHER HOMEBUYERS.

"All other aspects of compliance including detailed project registration under RERA shall need to be mandatorily followed by the developers. Therefore, this scheme does not preclude the homebuyer from approaching RERA or the consumer forum for relief in the event that the project is not completed or his loan amount is not refunded. Typically, a guarantee shall only add to the claim of the buyer before any of these forums, since the bank stands as a guarantor for repayment,” he said. Another thing that needs to be borne in mind is that the banks have to be careful while implementing such a scheme, especially in terms of the wording incorporated in the documentation that will be executed by the customer and the constant monitoring of project development. "When the project and the buyer are both financed by the same entity, a lot can go wrong. We have seen examples of this in the past. As per the press release, initially this scheme focuses on affordable housing projects, which is good as it will help streamline it before applying it to other real estate projects. If the penultimate objective is to truly secure the homebuyer and restore confidence in the housing market, then this scheme may prove to be fruitful in the long run," he added. (Credit: Vandana Ramnani for MoneyControl)

States

HOW GOOD WILL BE ANDHRA'S TRIPLE CAPITAL EXPERIMENT? YSRCP GOVERNMENT HAS DECIDED TO ABANDON THE EXCLUSIVE AND MEGA DEVELOPMENT OF AMARAVATI AND, INSTEAD, OPT FOR THREE CAPITAL CITIES - AMARAVATI, VISAKHAPATNAM AND KURNOOL. fter losing Hyderabad, the capital of joint AP from 1956 to 2014, the coastal Andhra and Rayalaseema regions of the state are looking for a new capital - or perhaps several new ones. The YSR Congress Party (YSRCP) government has decided to abandon the development of Amaravati and, instead, opt for three capital cities. The issue has taken centre stage after an expert committee, appointed by chief minister and YSRCP president Y.S. Jagan Mohan Reddy, recommended that the capital be decentralized between Amaravati, Visakhapatnam and Kurnool. Led by retired Indian Administrative Service officer G.N. Rao, the committee said Visakhapatnam should be the executive capital, and Kurnool (in Rayalaseema) the judicial capital, where the high court will be established.

Amaravati will be the legislative capital, as the state assembly and governor’s office will function out of it. “They have given the recommendations; as of now, the government has said it will implement it. Even this decentralization may not help Rayalaseema, to be honest. This is a move only to decentralize the functioning. The four districts of Rayalaseema actually need more in terms of development, and not just a high court," said an official of the AP government, requesting anonymity. The recommendations, if accepted, will undo everything that former chief minister and Telugu Desam Party supremo N. Chandrababu Naidu had planned for Amaravati. Naidu’s government had pooled in about 33,000 acres of farmland, promising that farmers will be compensated for the loss of agricultural income. “When the Siva Ramakrishnan committee was set up by the Centre to look for a new capital after AP’s split from Telangana, it had recommended decentralizing it. So, Jagan is following that. As far as the matter of farmland is concerned, those can be returned to the farmers, who can once again take up farming. In the 2019 AP assembly elections, Naidu’s centralized form of planning in terms of a new capital was rejected by the public, who voted for Jagan and that is why he won 151 out of the 175 seats," said Prof. E. Venkatesu, a faculty member from the University of Hyderabad’s political science department. The development could leave AP without a developed city as its capital once again, as was the case between 1953 and 1956, when Kurnool was the makeshift capital.

GREAT LEARNING LAUNCHES M.TECH DEGREE IN DATA SCIENCE AND ML Great Learning launches M.Tech degree in Data Science and Machine Learning in collaboration with PES University, ranked #1 under the New Universities category by KSURF. The full-time 2-year classroom program at the PES campus in Bangalore features world-class faculty and placement assistance with 150+ hiring partners like Uber, Swiggy, IBM, KPMG etc, and offers a degree from PES University.

WAR FILM '1917' WINS BEST PICTURE AT GOLDEN GLOBE AWARDS 2020 Sam Mendes-directed war film '1917', starring George MacKay and Dean-Charles Chapman among others was named the Best Motion PictureDrama at 77th Golden Globe Awards held on Monday. The award for Best Motion Picture - Musical or Comedy went to Quentin Tarantino's directorial 'Once Upon a Time in Hollywood'. Sam Mendes also won Best Director award for '1917'.

HAIR DRYER, STEAM IRON USED TO DRY PITCH FOR T20I IN GUWAHATI; FANS TROLL BCCI The first India-Sri Lanka T20I at Guwahati's Barsapara Cricket Stadium was called off due to wet outfield and partially wet pitch. Groundsmen were seen using hair dryer and steam iron to dry the pitch. Trolling BCCI, a fan tweeted, "BCCI is the richest board...but why can't they afford covers that are used in England." Another wrote, "Creative yet poor measures." SEASONAL MAGAZINE

R Y

MISSONI & POLDO DOG COUTURE DEVISE A VIBRANT FASHION CAPSULE COLLECTION

DEDICATED TO OUR FOUR-LEGGED FRIENDS, THIS COLLABORATION IS AN ODE TO THE BELOVED LITTLE PROTAGONISTS IN OUR LIVES WHO REFLECT OUR PASSION FOR STYLE

Missoni is no new name to the high

fashion world. But, now, they leave their impression in the world of pet couture too. Poldo Dog Couture is a luxury brand specialising in apparel for canines. The collaboration between Missoni and Poldo Dog Couture stakes out a new luxury frontier by creating a colourful and prestigious fashion capsule collection dedicated to human’s loyal friends.

This collection includes the Cortina, a detachable padded coat over a sweater available in two colour variants; and the Genova, a hooded raincoat in printed PVC with matching leash and collar. An assortment of must-have accessories is perfectly designed to fit all breeds and sizes, are characterised by Missoni’s iconic zigzag motifs in a variety of brightly coloured hues. This unique and colourful collection allows our four-legged friends to dress with style, while still remaining warm and protected from the elements, without having to sacrifice their freedom of movement, It is created for those who dedicate as much attention to the style of their furry little friends as they do to themselves.

BOTTEGA VENETA OPENS REFURBISHED BOUTIQUE AT EMPORIO MALL IN NEW DELHI LUXURIOUS FASHION HOUSE BOTTEGA VENETA REMAINS IN THE SPOTLIGHT WITH ITS PRE-SPRING ’20 COLLECTION AND MODERNIZED STORE

Bottega Veneta sets a new definition

of opulence and grandeur in the heart of India with the opening of its newly revamped boutique at Emporio Mall in New Delhi. Having established its presence in India in 2007, Bottega Veneta’s newly imagined store in Delhi measures 904 square feet and showcases a wide range of pieces for SEASONAL MAGAZINE

both men and women. Bringing in a new sense of openness and modernity with this reimagined space, it stands as a modish symbol of fine aesthetics with expansive windows framed in the House’s three-dimensional Intrecciato motif. The airy interior continues the theme of lightness with pale Marmorino walls, sleek lighting in the ceiling and furnished floors of natural oak wood and ivory Limestone. New display tables made from pale natural-hued oak wood and glass punctuate the luxurious surrounds. The store has created a new definition of enhancing artisanal variations, textures and materials. Bottega Veneta’s finest bags, small leather goods, luggage, shoes, jewellery, eyewear, fragrances and accessories can be found curated for all.

AN ECOLOGICAL BREAKTHROUGH, PANGAIA LAUNCHES FLOWER-FILLED PUFFERS AN ECOLOGICAL BREAKTHROUGH, PANGAIA LAUNCHES FLOWER-FILLED PUFFER JACKETS TO OFFER A MORE SUSTAINABLE SOLUTION THIS WINTER

A new brand has come up on the radar of LuxuryFacts, and we are supremely excited about this one! Launched globally in December 2018, PanGaia advocates a sustainable, cruelty free ethos and innovative textile technologies. The pioneer brand has now launched its latest range FLWRDWN, which includes puffer, down jackets made with biodegradable material instead of the standard goose feather. Comprising of short and long length oversized puffer jackets in 3 colourways, the new outerwear is filled with flower petals, PanGaia’s patented breakthrough vegan technology Flowerdown, which is a cruelty-free alternative to goose and duck down.

MISSONI ANNOUNCES THE LAUNCH OF ITS WATCHES IN COLLABORATION WITH TIMEX GROUP LUXURY FASHION BRAND MISSONI HAS ANNOUNCED A LICENSE AGREEMENT WITH TIMEX GROUP FOR THE CREATION, DEVELOPMENT AND DISTRIBUTION OF A LINE OF WATCHES.

To be available from Fall 2020 at Missoni

boutiques, authorized retailers and online, the watches will combine the impeccable precision of a Swiss Made movement with a Made in Italy design, characterized by the unmistakable aesthetics of Missoni, such as zigzag patterns, combinations of textures, materials and colors, prints and lettering. “I am particularly proud of the debut of this new line of watches, which adds a new, important element to the mosaic of the Missoni world. Today more than ever, the watch is a fashion accessory able to express the style of the wearer, showing their taste and personality. We will bring a touch of color to the time of our customers”, says Angela Missoni, President and Creative Director of Missoni.

GUCCI LAUNCHES NEW COLLECTION FOR THE LUNAR YEAR OF THE MOUSE GUCCI’S NEW LUNAR YEAR CAMPAIGN CELEBRATES WITH WALT DISNEY’S ORIGINAL, MICKEY MOUSE, ‘YEAR OF THE MOUSE’ COLLECTION

Gucci’s creative Director Alessandro Michele is celebrating the Chinese Year of the Mouse with a specially designed collection of items that feature Walt Disney’s True Original, Mickey Mouse, for the upcoming Lunar New Year, beginning January 25, 2020. Launching now in stores and online, this collection sits centre stage in a new campaign shot by photographer and director Harmony Korine and starring Gucci ambassador and actress Ni Ni, actor Earl Cave and designer, stylist and poet Zoë Bleu.

CLINIQUE ANNOUNCES EMILIA CLARKE AS THEIR FIRST GLOBAL AMBASSADOR

TOD'S PRESENTS ITS SS20 RESORT COLLECTION WHICH DEFINE THE CLASSICS THE BRAND IS FAMOUS FOR Highlighting traditions and classics, the new SS20

Resort collection by Tod’s celebrates everyday simplicity as the ultimate luxury. The art and craftsmanship of saddlery are the accessories focus. The iconic letter T, featured throughout the collection on driving shoes and on moccasins emphasizes the qualities of Tod’s brand: Tradition, Talent and Time. From Gommino and Moccasin for men and women, to vibrant sneakers to Tod’s Cross-body and D-Bag, the collection is made artisanal. Calf leather and suede feature majorly in the collection, donned in colors such as vacchetta, cognac, mousse, burgundy, chocolate brown and taupe.

The ‘Game of Thrones’ actress will share her journey with the brand via social media Clinique, a dermatologist approved brand that’s allergy tested, 100% fragrance-free and formulated with no parabens, no phthalates, just happy skin – has tapped critically acclaimed actress Emilia Clarke as their first Global Brand Ambassador for skincare and makeup. An undeniably talented actress, Ms.

WILLIAM SHAKESPEARE'S FIRST FOLIO TO BE AUCTIONED AT CHRISTIE'S

This 1623 published tome will excite historians and literature enthusiasts Christie’s, the world's leading art business, has announced the auction of William Shakespeare’s Comedies, Histories, & Tragedies, often referred to as the “First Folio,” as part of the Exceptional Sale during Classic Week at Christie’s New York on April 24, 2020 (estimate $4,000,0006,000,000). The First Folio, bringing together for the first time the collected plays of Shakespeare, ranks as the greatest work of the English language and, indeed, of world literature. Already celebrated on its first publication, it has remained a highly sought-after masterpiece over four centuries. Only six complete copies are known in private hands. Shakespeare’s First Folio is being sold on behalf of Mills College in Oakland, California.

TUMI & CHRIS PRATT COLLABORATE ON EXCLUSIVE COLLECTION FOR APAC & THE MIDDLE EAST Luggage brand TUMI has expanded

its collaboration with Hollywood actor Chris Pratt to create a unique collection for Asia Pacific & The Middle East. The TUMI x Chris Pratt collection was designed by Chris Pratt and TUMI Creative Director, Victor Sanz and features a 9-piece, ultraexclusive capsule inspired by Chris’ personal packing style.

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BREAKTHROUGH TO CUT VEHICLE EMISSIONS BY 90% Scientists have developed a novel CO2 capturing technology to cut vehicle emissions by 90%. A truck using one kilogramme (kg) of conventional fuel could produce 3kg of liquid CO2, and the conversion does not involve any energy penalty. wiss Scientists have developed a new technology that could cut carbon dioxide emissions from trucks and buses by almost 90 per cent by capturing CO2 within the exhaust system, converting it into a liquid and storing it on the vehicle. The liquid CO2 would then be delivered to a service station where it will be turned back into fuel using renewable energy, according to the researchers from the Swiss Federal Institute of Technology Lausanne (EPFL). They propose to capture CO2 and convert it from a gas to a liquid in a process that recovers most of energy available onboard, such as heat from the engine. In the study, published in the journal Frontiers in Energy Research, the scientists used the example of a delivery truck. First, the vehicle’s flue gases in the exhaust pipe are cooled down and the water is separated from the gases. CO2 is isolated from the other gases such as nitrogen and oxygen with a temperature swing adsorption system, using metal-organic frameworks (MOFs) adsorbent, which are specially designed to absorb CO2. Once the material is saturated with CO2, it is heated so that pure CO2 can be extracted from it, the researchers said. High speed turbocompressors developed by Jurg Schiffmann’s laboratory at EPFL use heat from the vehicle’s engine to compress the extracted CO2 and turn it into a liquid. That liquid is stored in a tank and can then be converted back into conventional fuel at the service stations using renewable electricity, the researchers said. “The truck simply deposits the liquid when filling up with fuel,” said Francois Marechal from EPFL. SEASONAL MAGAZINE

The whole process takes place within a capsule placed above the driver’s cabin.

TATA MOTORS’ JAGUAR LAND ROVER TO CUT UP TO 500 JOBS AT SUV FACTORY Jaguar Land Rover (JLR) said on Wednesday that it will fire about 500 employees at its northern England Halewood factory to improve efficiency and cut costs. The decision comes amid a £2.5 billion cost savings drive planned by JLR. The carmaker had announced in 2019 that it plans to cut 4,500 jobs around the world due to fall in sales.

“The weight of the capsule and the tank is only 7 per cent of the vehicle’s payload. The process itself uses little energy, because all of its stages have been optimised,” said Marechal. The researchers’ calculations show that a truck using one kilogramme (kg) of conventional fuel could produce 3kg of liquid CO2, and that the conversion does not involve any energy penalty. Only 10 per cent of the CO2 emissions cannot be recycled, and the researchers propose to offset that using biomass, they said. The system could theoretically work with all trucks, buses and even boats, and with any type of fuel, the researchers said. The advantage of this system is that, unlike electric or hydrogen-based ones, it can be retrofitted to existing trucks in order to neutralise their impact in terms of carbon emissions, they said.

DRESS CODE ANNOUNCED FOR VARANASI'S KASHI VISHWANATH TEMPLE Varanasi's Kashi Vishwanath Temple has decided to implement a dress code for devotees before they enter the sanctum sanctorum of the temple. While the female devotees have to wear a saree, the male devotees have to wear dhoti and kurta for entering the sanctum sanctorum. Those wearing pants, shirts and jeans will be allowed to worship from a distance.

MAN SUES TESCO FOR RS 64L, SAYS GUARD'S MISTREATMENT DISLODGED KIDNEY STONES A 63-year-old London-based Indianorigin lawyer has sued UK's supermarket chain Tesco over his alleged mistreatment which, he claimed, dislodged his kidney stones. Lalu Hanuman, who's seeking over ?64 lakh in damages, claimed he was accused of stealing a chocolate bar he paid for and was pushed by store's security guard. Tesco admitted that the chocolate had already been paid for.

Corporate

RELIANCE RETAIL EMPLOYEES GET A BONANZA MUKESH AMBANI LED RELIANCE INDUSTRIES LIMITED (RIL) HAS OFFERED THE SHAREHOLDERS OF ITS SUBSIDIARY RELIANCE RETAIL TO SWAP THEIR UNITS WITH RIL SHARES. THE MAJOR BENEFICIARIES WOULD BE ITS EMPLOYEES AS IT IS YET TO GO FOR ITS IPO.

s per the proposed arrangement, Reliance Retail shareholders will get one share of RIL against four Reliance Retail shares. Reliance Retail shares are not listed on any stock exchanges. "The company had implemented two schemes namely Reliance Retail Employees’ Restricted Stock Unit Plan 2006 and 2007 under which Restricted Stock Units (“RSUs") have been allotted to eligible employees. On exercise of the RSUs by some of the employees, equity shares have been allotted to them," RIL said on its website. RIL added it has received requests from Reliance Retail employees holding equity shares for providing them options to exit and liquidate their holdings, including by way of a listing of the equity shares. The arrangement benefits the RIL as well as Reliance Retail as the swap ratio values RIL's retail business at around Rs. 2.5 lakh crore. "This scheme enables the specified shareholders to continue to participate in the growth of the retail business (the business of the company), as hitherto since the company is an indirect subsidiary of Reliance Industries," RIL said. "Since, the scheme does not contemplate any outflow of funds/assets of the Company, the aggregate of ‘equity SEASONAL MAGAZINE

and other equity’ of the company pre and post-implementation of the scheme will remain the same and unaltered," RIL added. Though Reliance Retail on its website says it does not have any plan for a listing of its equity shares on the stock exchanges, Mukesh Ambani, chairman and managing director of RIL had last August said that Reliance Retail would be listed by 2024. Reliance Retail has emerged as India‘s largest retailer, driven by strong growth in fashion and consumer electronics. Analysts say RIL's online commerce segment could accelerate growth for the company. The company has been planning a new commerce venture, an offline-to-online initiative to take on rivals like Amazon and Walmart-owned Flipkart, which would link producers, traders, small merchants, brands and consumers through technology. It has been working on its new commerce plan for nearly two years. Currently, it operates neighbourhood stores, supermarkets, hypermarkets, wholesale, speciality, and online stores. Reliance Retail has grown its revenue by 38% over the last five years and acquired 13% of organized retail market share.

HONG KONG AIRLINE TO LET CREW WEAR SURGICAL MASKS AMID VIRUS OUTBREAK Hong Kong's Cathay Pacific Airways will allow all crew members and frontline employees to wear surgical masks due to concerns over a new coronavirus. The passengers to and from China's Wuhan would also be allowed to change or cancel flights for free through March 31. The virus has been detected in the United States, Thailand, Japan and South Korea.

GOING TO COLLEGE NOT ALWAYS NEEDED FOR JOBS: IVANKA TRUMP AT TECH EVENT Ivanka Trump, at CES 2020, said the commonly held belief that college degrees were needed to enter the workforce was misplaced. While it's a "great" path, it's not right for many and not chosen by most Americans, Trump added, while favouring skillbased hiring. Notably, she was criticised for being made a keynote speaker instead of women with credentials in technology.

TESLA VALUE OVERTAKES VOLKSWAGEN, WHICH SOLD 30 TIMES MORE CARS LAST YEAR Tesla on Wednesday overtook Volkswagen Group as the world's second most valuable carmaker with a market value of $106 billion, $7 billion more than its German rival. Volkswagen delivered almost 11 million vehicles last year, 30 times more than Tesla's 367,500 cars. The Elon Musk-led carmaker trails only Japan's Toyota, which is valued at around $200 billion.

Science HAVING COMPLETED TWO YEARS OF BASIC ASTRONAUT TRAINING, THE FIRST BATCH ARE READY TO TRAIN UNDER THE ARTEMIS PROGRAM AFTER THEIR FORMAL GRADUATION ON 10 JANUARY.

WHAT KIND OF PROFESSIONALS CAN

DREAM TO BE ASTRONAUTS?

NASA HAS ANNOUNCED THE GRADUATING CLASS OF 11 ASTRONAUTS INCLUDING A FEW WOMEN, WHO WERE SELECTED FROM AMONG 18,000 APPLICANTS, FOR UPCOMING MISSIONS TO SPACE, MOON AND MARS. THEY INCLUDE, MANLY, SCIENTISTS, ENGINEERS, PROFESSORS, PILOTS, MEDICAL DOCTORS AND MATHEMATICIANS, APART FROM DEFENCE PERSONNEL FROM US AIR FORCE, NAVY AND ARMY.

fter 2 years of basic astronaut training, the new batch is ready to train at the ISS and for the Artemis program after graduating 10 January 2020. NASA is moving hot and heavy with plans for its upcoming Artemis mission in 2024. Starting with the construction of a base on the moon, the space agency is hoping to return astronauts – including the the first woman to set foot on the Moon in a few short years. With the agency's "Moon to Mars" approach, it is also clear that they don't intend to reinvent the wheel when they set their target for Mars afterward. From the technological elements to the astronauts, NASA intends to replicate as much of the Artemis mission in their future human Mars mission – what they're calling an "open exploration architecture". This form of mission planning will have as many capabilities that can be replicated as possible for future Mars missions, with the Artemis mission and the moon being its testbed. Having completed two years of basic

astronaut training, the first batch are ready to train under the Artemis program after their formal graduation on 10 January. NASA has shortlisted a total of eleven candidates out of some 18,000 applicants, and two astronauts from the Canadian Space Agency (CSA) who are eligible for future spaceflight mission, which including routine missions to the International Space Station, the Artemis mission, and someday, a mission to Mars. The diverse professional backgrounds of those chosen to be astronauts are telling. They include, manly, scientists,

NASA IS MOVING HOT AND HEAVY WITH PLANS FOR ITS UPCOMING ARTEMIS MISSION IN 2024. STARTING WITH THE CONSTRUCTION OF A BASE ON THE MOON, THE SPACE AGENCY IS HOPING TO RETURN ASTRONAUTS – INCLUDING THE THE FIRST WOMAN TO SET FOOT ON THE MOON IN A FEW SHORT YEARS.

engineers, professors, pilots, medical doctors and mathematicians, apart from defence personel from US Air Force, Navy and Army. The chosen 11 for ISS, Artemis and Mars are: Kayla Barron – an US Navy lieutenant; Zena Cardman – a biologist and marine scientist; Raja Chari – a US Air Force colonel and aeronautical engineer; Matthew Dominick – a US Navy lieutenant, and electrical & systems engineer; Bob Hines – a US Air Force lieutenant colonel, aerospace engineer and flight test pilot; Warren Hoburg – an Assistant Professor of aeronautics and astronautics at MIT and a commercial pilot; Dr Jonny Kim – a US Navy lieutenant, ex-US Navy SEAL, mathematician, and medical doctor (emergency physician); Jasmin Moghbeli – a US Marine Corps major, aerospace engineer and flight test pilot; Loral O’Hara an aeronautics and astronautics engineer, marine scientists; Dr Francisco Rubio – a US Army lieutenant colonel, ex-Army doctor, helicopter and combat pilot for US Army; and Jessica Watkins – geologist and environmental scientist, ex-NASA Curiosity mission team member The two Canadian astronauts that are also due to graduate with the NASA astronauts are Joshua Kutryk (a Canadian Air Force lieutenant colonel, flight test pilot and fighter pilot) and Jennifer SideyGibbons (mechanical engineer and combustion engineer). All astronaut candidates have completed training in spacewalking, robotics, International Space Station systems, T38 jet proficiency, and the Russian language, NASA said in a press release. As astronauts, they will be called on to help develop and tweak spacecrafts, support teams that are currently in space, and ultimately join the ranks of the 500 or so astronauts that have actually had the opportunity to really go into space. SEASONAL MAGAZINE

Governance

TAMIL NADU COMES FIRST IN GOOD GOVERNANCE INDEX THE SOUTHERN STATE OF TAMIL NADU HAS BAGGED THE TOP POSITION IN THE COMPOSITE RANKING FOR GOOD GOVERNANCE INDEX (GGI), FOLLOWED BY MAHARASHTRA AND KARNATAKA, ACCORDING TO A REPORT BY GOVERNMENT OF INDIA.

ine parameters have been looked at including public health, human resource development, public infra structure, security and law, in this index compiled by the Department of Administrative Reforms and Public Grievances (DARPG) of the Gover nment of India. The report was released recently by Jitendra Singh, the Minister of State for Personnel, Public Grievances and Pension in New Delhi. The GGI was launched to assess the state of governance in the country. According to the department, GGI attempts to create a tool to assess the states and union territories in India on the aspect of governance. "At present there is no uniform index to objectively assess the state of good governance in the states. The good governance index attempts to create a tool which can be used to assess the states of governance and impact of various interventions taken by the state governments and the UTs," the ministry said. The objectives of GGI are to provide quantifiable data to compare the state of governance in all states and union territories, enable them to formulate and implement suitable strategies for improving governance and shift to result-oriented approaches and administration. According to the report, Chhattisgarh got the fourth position, followed by Andhra Pradesh (fifth), Gujarat (sixth), Haryana (seventh) and Kerala at the eighth rank under the â&#x20AC;&#x2DC;Big statesâ&#x20AC;&#x2122; category. The states and union territories have been divided into three groups -- big states, north-east and hill states, and union territories -- for the rankings based on SEASONAL MAGAZINE

certain indicators separately. In the big states category, Madhya Pradesh is at the ninth rank, West Bengal at the tenth position, followed by Telangana (11th), Rajasthan (12th), Punjab (13th), Orissa (14th), Bihar (15th), Goa (16th), Uttar Pradesh (17th) and Jharkhand at eighteenth position. In the northeast and hill category, Himachal Pradesh has topped the ranking followed by Uttarakhand, Tripura, Mizoram, Sikkim, Assam, Jammu and Kashmir (now divided into two union territories of Jammu and Kashmir, and Ladakh), Manipur, Meghalaya, Nagaland and Arunachal Pradesh. Among the union territories, Puducherry has got the first position, followed by Chandigarh, Delhi, Daman and Diu, Andaman and Nicobar Islands, Dadra and Nagar Haveli and Lakshadweep. Tamil Nadu, which has bagged the top spot overall, has also been ranked first in public infrastructure and utilities sector, which includes access to potable water, towns and villages that have been declared open defecation free, power supply etc. Telangana and Andhra Pradesh grabbed the sixth and eighth spot in this category, while Kerala has been listed at the ninth spot. Karnataka took the tenth spot in this category. Kerala grabbed the first place in public health category which assessed the state on parameters like Infant Mortality Rate, Maternal Mortality Rate, availability of doctors and paramedical staffs at PHCs etc. Tamil Nadu came second in this category. Andhra Pradesh, Telangana and Karnataka grabbed the seventh, eighth and ninth spots respectively.

Manipur and Puducherry have got the first position for Public Health sector in the northeast and hill states, and UTs category respectively. Under the economic governance sector, Karnataka has got the first position followed by Maharashtra, Telangana, Gujarat and Tamil Nadu among the big states. For the judicial and public security sector, Tamil Nadu has got the first position followed by Kerala, Chhattisgarh, Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, Goa,

Andhra Pradesh, Punjab, Gujarat, Haryana, Orissa, Jharkhand, Uttar Pradesh, Telangana, West Bengal and Bihar. Under the environment sector, West Bengal has got the top spot followed by Kerala and Tamil Nadu among the big states. Jammu and Kashmir is first among the north-east and hill states, and Chandigarh in the union territories category for the ranking under the environment sector. Under the agriculture and allied sector, Madhya Pradesh has got first position followed by Rajasthan and Chhattisgarh in the big states category. Mizoram has got the first position in north-east and hill states category and Daman and Diu has bagged the top slot in the UT category for the sector. In the commerce and industries sector, Jharkhand has got the first position in big states category, followed by Andhra Pradesh and Telangana. Among the north-east and hill states, Uttarakhand has achieved the top rank, whereas Delhi is at the first rank in the union territories category. Goa has got the first rank among big states for human

resource development sector. Himachal Pradesh has got the first position among the north-east and hill states and Pondicherry is at the first place among the UTs for this sector. Under public infrastructure ranking sector, Himachal Pradesh and Chandigarh have got the top slot in north-east and hill states, and UTs category. Under the economic governance category, Uttarakhand has got the top rank in north-east and hill states category. Delhi has got the first position in the union territories category for the sector. Chhattisgarh has got the first position in social welfare and development sector ranking. Meghalaya has topped the slot for the north east and hill states. Daman and Diu is at the first position in the UTs category for the sector. Himachal Pradesh is at the first position among the north east and hill states, and Pondicherry has got the top slot among the UTs, under the judicial and public security sector ranking.

UN CALLS FOR INVESTIGATION INTO ALLEGED SAUDI HACKING OF JEFF BEZOS' PHONE UN experts called for an immediate investigation into the "possible involvement" of Saudi Crown Prince Mohammed bin Salman in the hacking of Amazon CEO Jeff Bezos' mobile phone. The hacking was "an effort to influence, if not silence, The Washington Post's reporting on Saudi Arabia", experts said. The hack is in contravention of "fundamental international human rights", the UN said.

THEY ARE SO NICE, YOU CAN'T EVEN THINK OF REVENGE: KOHLI ON NEW ZEALAND On being asked if he was thinking about avenging the World Cup semifinal defeat against New Zealand, Virat Kohli said, "Honestly...even if you want to think of revenge, these guys are so nice, you can't get into that zone." "We get along really well with all these guys and it's all about just being competitive on the field," he added.

BIKE RENTAL STARTUP BOUNCE RAISES $105 MN FROM FB COFOUNDER'S VC FIRM, OTHERS Bengaluru-based bike rental startup Bounce has raised $105 million at a valuation of $520 million in Series D funding round led by Accel Partners and Facebook Co-founder Eduardo Saverin's B Capital Group. Other existing investors including Falcon Edge and Chiratae Ventures also participated in the round. Notably, Asia Co-head at B Capital Group, Kabir Narang, will be joining Bounce's board. SEASONAL MAGAZINE

Technology

MEET THE INDIA-BORN TWITTER EXECUTIVE WHO DECIDES ON BLOCKING TWEETS WHEN VIJAYA GADDE FIRST JOINED TWITTER, THE INTERNET WAS A DIFFERENT PLACE. AT THE TIME, A LOT OF POLITICIANS WERE JUST GETTING FAMILIAR WITH THE PLATFORM.

henever somebody on Twitter takes issue with the network's rules or content policies, they almost always resort to the same strategy: They send a tweet to @jack. A quick scan of Chief Executive Officer Jack Dorsey's mentions show just how often he's called upon to lay down the law for the service he helped create. But what users don't know is that they're imploring the wrong Twitter Inc. executive. While Dorsey is the company's public face, and the final word on all things product and strategy, the taxing job of creating and enforcing Twitter's rules don't actually land on the CEO's shoulders. Instead, that falls to Twitter's top lawyer, Vijaya Gadde. As Twitter's head of legal and policy issues, Gadde has one of the most difficult jobs in technology: Her teams write and enforce the rules for hundreds of millions of internet users. If people break the rules, the offending tweets can be removed, users can be suspended, or in extreme cases booted off Twitter altogether. Dorsey may have to answer for Twitter's decisions, but he's taken a hands-off approach to creating and enforcing its content policies. "He rarely weighs in on an individual enforcement decision," Gadde said in a recent interview. "I can't even think of a SEASONAL MAGAZINE

time. I usually go to him and say, 'this is what's going to happen.'" That leaves Gadde, 45, as the end of the line when it comes to account enforcement -- a delicate position in a world where Twitter's rules are both an affront to free speech and an invitation to racists and bigots, depending on who's tweeting at you. "No matter what we do we've been accused of bias," Gadde said. "Leaving content up, taking content down -- that's become pretty much background noise." Like most corporate lawyers, Gadde generally operates in the background herself, though her influence has helped shape Twitter for most of the past decade. A graduate of Cornell University and New York University Law School, Gadde spent almost a decade at a Bay Areabased law firm working with tech startups before she joined the social-media company in 2011. Her eight-plus years at Twitter are about equal to the amount of time Dorsey has worked there over the years. But as Twitter's role in global politics has increased, so has Gadde's visibility. She was in the Oval Office when Dorsey met with U.S. President Donald Trump last year, and joined the CEO when he met Indian Prime Minister Narendra Modi in November 2018. When Dorsey posted a photo with the Dalai Lama from that

trip, Gadde stood between the two men, holding the Dalai Lama's hand. InStyle just put her on "The Badass 50," an annual list of women changing the world. "Vijaya defines the word," tweeted Twitter Chief Marketing Officer Leslie Berland. When Gadde first joined Twitter, the internet was a different place. At the time, a lot of politicians were just getting familiar with the platform. Trump primarily used his Twitter to share announcements about his TV appearances (though this would quickly change). The official presidential account, @POTUS, wouldn't even come into existence until 2015, under thenPresident Barack Obama. When Gadde took over as general counsel in 2013, the social-media service had an "everything goes" mentality. A year prior, one of Twitter's product managers in the U.K. famously said that Twitter viewed itself as "the free speech wing of the free speech party," a label later repeated by then-CEO Dick Costolo. The company simply "let the tweets flow," said one former employee. That freedom is part of what drew Gadde to Twitter in the first place. An immigrant from India, Gadde moved to the U.S. as a child and grew up in east Texas, where her dad worked as a chemical engineer on oil refineries in the Gulf of Mexico, before moving to New Jersey in middle school. "I was the only Indian child most of my education until I went to college," she says now. "You feel voiceless. And I think that that's kind of what drew me to Twitter -- this platform that gives you a voice, and gives you a community and gives you power." Twitter's commitment to giving everyone a voice, though, has also come with a general reluctance to take it away. Twitter's decisions in recent years to ban certain users, including conspiracy theorist Alex Jones and far-right media troll Milo Yiannopoulos, were news in part because Twitter's decisions to act were so uncharacteristic. Gadde acknowledges the change, saying that the company has come to realize in recent years the responsibility it has to protect the safety of its users, including when they're not using the product. "I would say that the company has shifted its approach dramatically [since I started]," she said.

Perhaps no user presents a bigger quagmire for Gadde and her team than Trump, the platform's most famous user, whose tweets often push the boundaries of Twitter's rules. The president's habit of blasting messages to his 70.9 million followers has taken on a new vigor thanks to a looming impeachment trial and re-election bid. Following the U.S. drone strike in early January that killed a top Iranian general, Trump threatened Iran with military force in a number of tweets, including the targeting of cultural sites. That prompted many observers, including some former Twitter employees, to ask why he hadn't been suspended -- a cycle that has played out several times following other Trump tirades. Last month, Trump attacked his Democratic rivals, blasted Congress over impeachment proceedings, and even mocked teenage climate activist Greta Thunberg from his @realDonaldTrump Twitter account. According to a USA Today analysis, his tweets contain more negative language than ever. The study looked at whether Trump tweeted words with positive or negative connotations, and found he "is posting fewer tweets with words that convey joy, anticipation and trust, and more that convey anger." Trump sent or retweeted more than 1,050 messages in December, according to Hootsuite -- more than any other month since taking office. "The way he uses social media is a reflection of just how unusual a candidate, and now a president, Trump is. A big part of that is that he breaks all the rules," said Patrick Egan, a professor of politics and public policy at New York University. "Something that a lot of people really like about him is that he says the kind of things he's not supposed to say, and of course that's exactly the kind of thing that can get you into trouble on social media." Inside Twitter, Trump's tweets are a frequent topic of conversation among employees, and Gadde's authority also means that she has the unique job of punishing the world's most famous tweeter -- should it ever come to that. "My team has the responsibility to do that with every single individual who uses Twitter, whether it's the president of a country or it's an activist or it's somebody we don't know," she said. "I honestly do

my best to treat everyone with that same degree of respect." Twitter has so far decided that Trump hasn't crossed any lines, but the company is prepared for such a scenario. While it's unlikely that Twitter would ever suspend a well-known politician - the company also has a newsworthiness policy, which means it's less likely to take action on tweets from elected officials -- it's devised another penalty for world leaders: A warning screen unveiled last summer that hides a tweet from public view and limits its distribution, but still allows people to view the tweet with the click of a button. It's a way to publicly acknowledge that a politician has violated Twitter's rules while admitting what they said is too newsworthy to be taken down. "It's preserving a record of what is said in the public interest," Gadde explained. The process is designed like this: A content moderator, who may be a thirdparty contractor, reviews a tweet that has been flagged and determines whether it violates Twitter's rules. If they decide that it does, moderators can usually enforce punishment at this stage, but Twitter requires a second layer of review for offenders who are considered public figures -- in this case, a verified politician with more than 100,000 followers, Gadde said. The tweet is then sent to Twitter's trust and safety team, and if they also agree that the post violates the rules, Twitter convenes a special group of employees from across the company to review it. This group, about a half-dozen people from various teams, is meant to bring in a diverse set of perspectives, Gadde explained. That panel then makes a recommendation to Del Harvey, Twitter's head of trust and safety, and her boss, Gadde, for a final decision. Barring some kind of emergency, using the label will ultimately be Gadde's call. "Vijaya has a young kid still, so she's very used to being woken up any hour, which is helpful," Harvey joked to a group of reporters last summer. Gadde won't go so far as to say the new warning label was created with Trump in mind -- "We try to think of these things globally and not just about the United States," she said -- but added that even though the screen, referred to internally

as the Public Interest Interstitial, hasn't been used since its debut last June, it will eventually make an appearance. Gadde said Twitter has used the newsworthiness policy a "handful" of times in the past as justification for leaving offending tweets up. But the company didn't have the warning label back then, so the general public didn't know anything had even been discussed behind the scenes, she said. "We know it happens, and that it will happen." Twitter actually pointed to this policy in September 2017 when answering questions about the decision to leave up a tweet from Trump that appeared to threaten North Korea with nuclear war. Twitter also has a policy against threats of violence. A White House spokesman, Steven Groves, declined to answer questions about Trump's use of Twitter. Historically, Twitter's rules around free speech have been so lax that a number of celebrities and journalists, including singer Lizzo, actress Millie Bobby Brown and New York Times writer Maggie Haberman, have stepped away from the service -- at least temporarily -- with many citing bullying and harassment. U.S. Senator Kamala Harris, a former Democratic candidate for president, thought Twitter's enforcement weak enough that she implored the company to suspend Trump in a letter in October, saying he uses his account to obstruct justice and intimidate people, including the whistle-blower whose report ultimately led to his impeachment. Twitter responded that Trump's tweets didn't break the rules. The newsworthiness exemption gives Twitter a lot of wiggle room when it comes to removing high-profile tweets, but Gadde said the point of the warning label, and the company's attempt to explain it, are part of a broader effort to be more transparent about how and why the company makes decisions -something she admits hasn't always been clear. As Twitter has grown, so has the company's understanding that it can't simply sit by and let people tweet whatever they want, Gadde said. It's one of the many ways her job has evolved over the years. "We're trying to do so much more of our work in public," she said. "I want people to trust this platform." SEASONAL MAGAZINE

Foreign Policy

Carl Jaison

CHANGING PRIORITIES FOR INDIA, RUSSIA & IRAN

INSIGHTS FROM THE RECENTLY CONCLUDED RAISINA DIALOGUES ON HOW THE FOREIGN POLICIES OF INDIA, IRAN AND RUSSIA ARE SET TO CHANGE IN 2020 AND BEYOND.

n the age of American and Chinese dominance, how are countries like India, Iran and Russia gaming their foreign policy strategies? In the recently concluded Raisina Dialogue conference on geopolitics and geoeconomics, the foreign ministers of these three countries laid out the vision and formulation of their respective foreign policies. While each finds itself and its role in different international contexts, the common theme in their narratives seems to be the promotion of a multi-polar world order that is not left to the whims and fancies of either US or China. While India seems to have hedged its bets on inclining towards US in order to keep a check on China, Russia and Iran are focused on undermining US hegemony in regional SEASONAL MAGAZINE

affairs. Given how China’s relative weight in the international system is growing, India cannot ill-afford to remain antagonistic towards its large and powerful neighbour. Iran faces a similar concern in its policy towards Trump-led US with its economic situation in dire straits. For Russia, the US remains the single-most important adversary but

WHILE EACH FINDS ITSELF AND ITS ROLE IN DIFFERENT INTERNATIONAL CONTEXTS, THE COMMON THEME IN THEIR NARRATIVES SEEMS TO BE THE PROMOTION OF A MULTI-POLAR WORLD ORDER THAT IS NOT LEFT TO THE WHIMS AND FANCIES OF EITHER US OR CHINA.

China’s fast-paced rise should not offer any cause for comfort. In effect, these leaders are mindful of the challenges ahead but have varied responses in tackling them. In light of the recent events between the US and Iran, the foreign ministers weighed in on their takeaways from an increasingly destabilizing geography of the Middle East.

DR. S JAISHANKAR, EXTERNAL AFFAIRS MINISTER, INDIA When asked about what was the ‘India way’ of conducting foreign policy, Jaishankar preferred to first elucidate on what was not the ‘India way’. He argued that India was not a disruptive, but a stabilizing power; not self-centred, but law-abiding and not unilateral but consultative. He also added that India’s role in world affairs was that of a net

security-provider and a contributor to connectivity projects and climate change policies. Jaishankar then responded to what he termed as a ‘myth’ about India’s commitment to connectivity projects stating that in the last five years alone, the government completed 53 connectivity projects. According to him, this included rail and waterways projects in Bangladesh; road and electricity projects in Nepal and development initiatives in Afghanistan. On the crucial issue of 5G and technology adoption, Jaishankar opined that the digital domain is ripe for intervention but cautioned against two trends in this space. He remarked that there were two broad elements in India’s thinking on this aspect – firstly, some technologies are strategic by nature and secondly, when technologies are in the hands of strategic actors, they use it strategically. Claiming that it’s not only about economics and markets today, Jaishankar argued that great powers always have a strategic imperative with respect to their adoption of new technologies. On the Iran-US crisis, Jaishankar chose to play down its impact on India’s interests with both countries citing that he believed it was up to the actors involved to solve their outstanding problems. On China, he confessed that there were issues in the bilateral relationship that both countries are honest about. He qualified that by saying both India’ and China’ relative importance has gone up in the international arena but also that the bilateral equilibrium is changing. On Russia, he remarked that the relationship has stood the test of time even after the end of the Cold War. Terming it an ‘extraordinarily steady relationship’, Jaishankar believed that the India-Russia equation was a mutual recognition of sentiments underpinned by a geopolitical Eurasian logic. He recalled a memory about his mother telling him Soviet Premier Nikita Khrushchev’s visit to India in 1955, highlighting the nostalgia Indians carry about Russia. On Indo-US ties, Jaishankar exclaimed that the multifaceted nature of the present-day partnership was promising heading into the future. He argued that it was defined

EARLIER, THERE WAS A MODICUM OF JUSTIFICATION FOR ONE’S ACTIONS. BUT WITH TRUMP, HE’S OPENLY TALKING IN VIOLATION OF INTERNATIONAL LAW

Subrahmanyam Jaishankar Foreign Affairs Minister, India

not just in G2G (government-togovernment) terms but also B2B (business-to-business), T2T (technology-to-technology) and P2P (people-to-people) scenarios. On EU-India ties, Jaishankar feels that it is an important dynamic due to which he decided to discuss with his European counterparts as part of his initial set of foreign visits. On Australia, he remarked that the relationship has a broad vision and is well poised given the convergence of interests. On India’s controversial decision to remain out of RCEP, Jaishankar believed that it was not a permanent state of affairs. He argued that as long as the economic interests and incentives are favorable, India wont hesitate to join the multination trade pact. On the threat to domestic stability, Jaishankar defended the government’s stand on Article 370, CAA, NRC citing that the themes of these legislations – terrorism, citizenship, separatism - are not just India’s problems but affect countries all over.

DRJAVADZARIF – MINISTER OF FOREIGN AFFAIRS, IRAN The Iranian Foreign Minister’s address was the show-stopper. He tore into US policies in the region, including the recent killing of General Soleimani. Zarif claimed that the US only deals with the region from its own perspective and that the covert operation to take out General Soleimani was borne out of ignorance and arrogance. He lashed out at the US for claiming that the proSoleimani commemorative protests were part of Iranian propaganda carried out through its proxies in the region. “There were 430 Indian cities where people mourned the killing of General Soleimani. Does the US think we have proxies in a country like India?” Zarif argued. He apologized for the accidental shooting down of the Ukrainian passenger flight 752 but put the blame on US for contributing to the crisis in the first place. Adding that while Iran retaliated proportionately to the US action by targeting its military base in Iraq, the US killing of Soleimani was an attack on an Iraqi guest on Iraqi soil which violated international law. He also criticized President Trump for SEASONAL MAGAZINE

threatening with attacks on Iran’s cultural sites. “Nobody is telling Trump that attacking cultural sites is a warcrime. Earlier, there was a modicum of justification for one’s actions. But with Trump, he’s openly talking in violation of international law’ said Zarif. He also added that there was a dire need to bring hope back to this region, which has been affected by despair and violence. On JCPOA, Zarif clarified that it was one of the best deals ever negotiated, done in mutual trust through various verification mechanisms. He pinned the blame on this entirely on President Trump for violating the terms of the deal and pulling out. He also questioned the wisdom of European countries, who are party to the JCPOA, by allowing Trump to bully them, citing how he is likely to bully them on Nordstream pipeline as well. Zarif termed the killing of Soleimani as being celebrated by only two people: ISIS and President Trump, throwing

HE APOLOGIZED FOR THE ACCIDENTAL SHOOTING DOWN OF THE UKRAINIAN PASSENGER FLIGHT 752 BUT PUT THE BLAME ON US FOR CONTRIBUTING TO THE CRISIS IN THE FIRST PLACE.

Sergey Lavrov Minister of Foreign Affairs, Russia light on the backward step it represented in the fight against jihadist group. “With Soleimani’s death, it has helped ISIS. We knew where ISIS was standing on this. On cooperation with US, we hope diplomacy prevails. If we don’t have diplomacy, I’ll lose my job!” quipped Zarif.

MR. SERGEY LAVROV, FOREIGN MINISTER, RUSSIA Russia’s foreign minister alluded to the ‘old deficiencies’ of the Security Council that needs to be addressed adding that the likes of India and Brazil need their due representation in global

Mohammad Javad Zarif Foreign Affairs Minister, Iran

affairs. For this to happen, Lavrov argued for the need to support a multipolar order. He remarked that President Putin envisioned the geopolitical space of the Eurasian Economic Union in 2016 as a means towards this end, which will be open to all countries, including EU member states. Lavrov suggested how the Eurasian Economic Union could integrate with the South Asian region and that they are already having negotiations with Iran, China, Israel, ASEAN etc. Lavrov added that Russia has been actively promoting multi-lateral forums in Asia-Pacific region from ASEAN to East Asian security. But he cautioned against how the Indo-Pacific region is moving away from the ASEAN-led consensus-driven orderto a more disruptive, US-led, China-bashing league. “Whatever institutions or rules smack of neo-colonial designs should be rejected” said Lavrov. He pointed to how Russia recently concluded military exercises with China and Iran and revived the idea of collective security system in Persian Gulf & GCC, stressing how cooperation was the only way forward. He suggested that countries like India know that the Indo-Pacific is geared against one country that loses its credibility. He concluded by saying that ‘the Indo-Pacific can’t be defined in opposition to one country or upholding one set of values.’ He emphasized Russia’s belief in the format proposed by their late leader YevgenyPrimakov– strategic triangle of the ‘RIC’ (Russia, India, China).

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Auto

GLOBAL CARMAKERS LEAD IN BS-VI RACE OF THE 20-ODD VEHICLES THAT TATA MOTORS AND M&M SELL IN INDIA, ONLY ONE HAS BEEN UPGRADED TO MEET BS-VI EMISSION NORMS, WHILE MARKET LEADER MARUTI HAS CONVERTED EIGHT OF ITS 13 MODELS. uzuki, Honda and Hyundai have switched to Bharat Stage VI (BS-VI) emission norms much faster than their Indian counterparts. This, despite less than 12 weeks remaining for India to bring its vehicular emission levels on par with developed countries.

version with any of its seven passenger vehicle models and their derivatives in active production. The Mumbai-based company on January 9 stated that the yet-to-be-launched Altroz hatchback will be one of the first models to be sold with BS-VI engines before progressively switching rest of its models to BS-VI.

Of the 20-odd vehicles that Tata Motors and Mahindra & Mahindra (M&M) sell in India, only one has been upgraded to meet BS-VI emission norms. In comparison, market leader Maruti Suzuki has converted eight of its 13 models to BS-VI.

M&M, the home-grown sports utility vehicle (SUV) market leader, launched the BS-VI variant of the XUV300, powered by a 1.2 litre petrol engine. The Mumbai-based company has not simultaneously upgraded the model’s diesel version yet and would rather wait for BS-VI grade fuel to be made available first. Other high volumes models such as Bolero and Scorpio, XUV500, Marazzo, KUV100 and TUV300 are yet to be upgraded.

The new norms, which are set to kick in on April 1, are much stricter on emissions compared to the current BSIV norms. Nitrogen oxide level for BSVI grade diesel and petrol engines will be brought down by 70 percent and 25 percent, respectively. According to the government, vehicular pollution will fall by 80-90 percent by switching to the newer standard. Tata Motors, India’s fourth largest carmaker, has not yet launched a BS-VI

OF THE 20-ODD VEHICLES THAT TATA MOTORS AND MAHINDRA & MAHINDRA (M&M) SELL IN INDIA, ONLY ONE HAS BEEN UPGRADED TO MEET BS-VI EMISSION NORMS.

Ever since its launch in April last year, Maruti has clocked sales of over 450,000 units of BS-VI models. These models have come at a Rs 8,000-11,000 premium compared to soon-to-beoutdated BS-IV norms. Senior Maruti officials pointed out that consumers have been demanding BS-VI versions of those models that were available. Alto, Baleno, Swift, Dzire, Ertiga, Wagon R, XL-6 and S-Presso of Maruti are sold with BS-VI engines only. Other models such as Brezza, Ciaz and Ignis will be upgraded soon. In an earlier interaction to Moneycontrol, Shashank Srivastava, Executive Director, Maruti, said, “Consumers have a positive BS-VI image. Consumers perceive BS-VI vehicles to have better engines, a better exhaust and superior technology. The younger consumer is aware of the problem posed by auto emissions and is concerned about the environment.” India’s second largest carmaker Hyundai introduced of its new models – Grand i10 Nios and Elantra – with BS-VI engines. The compact sedan Aura, which the Delhi-based company showcased recently, will be launched with BS-VI engines on January 21. Honda too has launched the City, Civic and CR-V with BS-VI engines, while Toyota has launched a complaint Innova Crysta. Luxury heavyweights Mercedes, BMW and Audi have also launched BS-VI models. New entrant Kia Motor is one of the few to have launched a diesel model despite there being no BS-VI fuel at fuel pumps. It was earlier believed that a diesel BSVI car won’t be able to run successfully on BS-IV grade fuel without critically harming the engine. SEASONAL MAGAZINE

Banking

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IDFC FIRST BANK

DELIVERING ON PROMISES BY ITS SECOND YEAR TWO QUARTERS BACK, V VAIDYANATHAN PROMISED THE MARKET THAT IDFC FIRST BANK WOULD BE IN BLACK BY AROUND THIS TIME. AND HE HAS KEPT HIS PROMISE EVEN BEFORE THE BANK CELEBRATED ITS FIRST FOUNDATION DAY, BY TURNING AROUND TO PROFITS ON A PBT BASIS. A FORMER HIGH ACHIEVER AT ICICI BANK AND CAPITAL FIRST, IT IS THIS PENCHANT FOR KEEPING HIS WORDS THAT MAKES THE MARKET SIT UP AND NOTICE WHEN HE SAYS THE BANK WILL BUILD A Rs. 1 LAKH CRORE RETAIL LOAN BOOK AMOUNTING TO 70% OF TOTAL ASSETS, A NIM OF 5.5% AND AN ROA OF 1.5%, WITHIN THE NEXT 5 YEARS. A LOT WILL DEPEND ON THE CASA RAMP-UP AND HOW WELL THE LEGACY INFRA LOANS PAN OUT.

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“B VAIDYANATHAN CITES THE CASE OF INDIA’S CREDIT MARKET WHICH STOOD AT Rs. 28 LAKH CRORE JUST BEFORE THE GLOBAL ECONOMIC CRISIS & NPAs UNFOLDED, YET WENT ON TRIPLING WITHIN THE NEXT TEN YEARS. SEASONAL MAGAZINE

ull markets climb up a wall of worry, while bear markets slide down a slope of hope,” goes a time-tested proverb from Wall Street. In other words, bull markets start when most market participants are weary of the underlying fundamentals, and gradually climb up as the worries abate, while bear markets start when most market participants are hopeful of the fundamentals of the economy and keep sliding as the fundamentals continue to be hopeful but deteriorate! Going by that measure, there has not been a time in recent years, when the economic macros looked so pessimistic for India. But V Vaidyanathan is a contrarian and

an optimist. Part of it springs from what he has gone through and overcome in recent decades. For instance, he cites the case of India’s credit market which stood at Rs. 28 lakh crore just before the global economic crisis unfolded. The next 10 years, till 2019, he says has been one of the most challenging times for the lending industry as NPAs skyrocketed, losses mounted, and a few banks and NBFCs went into acute crisis. Still, he says, now the country’s credit market stands at Rs. 100 lakh crore, more than tripling within these 10-years of crisis! He is not saying this as a historian or an analyst, but by his hands-on experience as a n NBFC CEO who took his troubled NBFC through a

ALWAYS YOU FIRST NOT JUST A SLOGAN IDFC FIRST BANK’S MD & CEO, V VAIDYANATHAN IS PROVING THAT ‘ALWAYS YOU FIRST’ IS NOT JUST A SLOGAN FOR THE BANK HE HEADS, BUT AN ACTIONABLE STRATEGY FOR EVERYONE IN THE BANK, STARTING WITH HIMSELF, BY TAPPING GRASSROOTS LEVEL KNOWLEDGE FROM CUSTOMERS DIRECTLY. there is one thing that V Vaidyanathan is as passionate about as his customer first policies, it is his belief that credit business will grow in India despite all the doom and gloom reports. At the same time, he is pragmatic enough to admit that the top corporates in India are overbanked, and that credit growth in the future would be led by the financial inclusion of the bottom of the pyramid, the so far unbanked and poorly banked, lower economic strata of the Indian society. Recently, these two passions of Vaidyanathan – customer first policies and credit growth potential – came together in an admirable fashion, when he used a chance encounter with a cab driver in Mumbai to probe about the kind of financial assistance extended to them by the local moneylenders, and how it can be improved by a bank like the one he heads by creating tailor-made products for such self-employed people. What Vaidyanathan’s interaction unravelled was truly appalling. The cab driver was making just 15,000 per month after running expenses, out of which, he was sending 10,000 back home to his family to support his wife and kids, and surviving in a city like Mumbai on just 5000 bucks a month! Out of this 5000 rupees, he was spending 1000 on a one-in-five shared accommodation, leaving just 4k for food and other expenses for a month! And often this jugglery to meet both ends will fail, forcing him to take money from moneylenders whose interest rate is exorbitant, often running to 120% per annum! Of course, it is neatly camouflaged from the unsuspecting

customer as it is packaged as a 60 day loan with daily repayments. During the interaction, the cab driver showed Vaidyanathan the moneylender’s chart for his current loan of Rs. 15,000, where these daily repayments are recorded. And when Vaidyanathan posed the question what would happen on small defaults, the cab driver reveals the age-old tactic of such lenders, which is to offer even more money than the defaulted amount to keep this nasty interest machine running! And finally their discussion reaches the obvious conclusion of such unsustainable credit practices – which is that when everything else fails, the cab driver hopes to go to his village and somehow bring in some money from there to repay these city based loan sharks! This is the plight of a typical cab driver in Mumbai who runs someone else’s car and works up to 2 AM to barely make a living! Vaidyanathan’s chance encounter with

this cab driver, has gone viral on social media, and is an eye-opener to not only the business development brains at IDFC First Bank, but at all lenders like other banks, NBFCs and microfinance institutions. They being better organized and regulated, can offer loans to such self-employed customers at much lesser rates, and still make reasonable profits. There are more than one lakh cabs in Mumbai alone, and also there are several such self-employed but unbanked people who can be better assisted by the regulated lenders, and who can be a powerful engine of growth for these banks and NBFCs. In fact, Vaidyanathan assures the cab driver that his team will be working on formulating a much better loan product for self-employed people like him. And showing his compassionate side, the IDFC First Bank CEO doesn’t part before paying a handsome 3000 rupees tip to the driver. SEASONAL MAGAZINE

better part of these ten years, and increased it in value by nearly ten times, before merging this company Capital First with IDFC Bank. And even more importantly, this tripling of credit within ten years, can happen again in India, says the MD & CEO of IDFC First Bank. Interestingly, Vaidyanathan is leading a similar challenge – of transforming a predominantly wholesale lender into a mainly retail lender – at IDFC First Bank, like he did at Capital First after taking over Future Capital through a management buyout backed by global PE major Warburg Pincus, which was the first such buyout in India’s financial services sector. The wholesale-to-retail transformation is already visible, by the first anniversary of IDFC First Bank, which it celebrated recently. The loan book rose to only Rs 1.07 lakh crore from the Rs 1.04 lakh crore it was at the time of merger in December 2018, but the retail segment has surged to Rs 48,000 crore now, from the Rs 36,000 crore at merger time. But the pace of loan book growth is yet to witness Vaidyanathan’s ambitious plans for the same. Under his visionary leadership, IDFC First Bank is waiting for its SEASONAL MAGAZINE

Current Account Savings Account (CASA) ratio of deposits to reach 30% before faster ramp-up of the loan book. This is because, as Vaidyanathan opined recently, once the low-cost CASA breaks into the 30-40% league, not only is there financial stability and stickiness of money, but there is fuel for unlimited growth. IDFC First Bank is already showing promise on the CASA front, having more than doubled it to 18.7% since merger. Vaidyanathan has also clearly identified from where the future growth of the bank should come from. Young by age

VAIDYANATHAN FEELS THAT ONCE THE LOW-COST CASA BREAKS INTO THE 30-40% LEAGUE, NOT ONLY IS THERE FINANCIAL STABILITY AND STICKINESS OF MONEY, BUT THERE IS FUEL FOR UNLIMITED GROWTH. IDFC FIRST BANK IS ALREADY SHOWING PROMISE ON THE CASA FRONT, HAVING MORE THAN DOUBLED IT TO 18.7% SINCE MERGER.

but a veteran by experience, this banker who is credited with growing ICICI Bank’s retail franchise earlier, now feels that future growth for IDFC First Bank will come from the bottom of the pyramid, as the Top 5000 corporates of India are overbanked. In contrast, there is a crying demand in India to finance the unfinanced, says this CEO. While microfinance too aims to target this opportunity at the level of personal loans, Vaidyanathan is aiming to address the demand for small business loans ranging from Rs. 20,000 to Rs. 1 lakh and beyond, in the MSME sector, which has been a stronghold of the erstwhile Capital First he led admirably. At the same time, he is a conservative banker when it comes to safety, having led the bank to have excess provisions and excess liquidity coverage ratio. While no one expects it to be a cakewalk for IDFC First Bank, from here to its stated goals - of Rs. 1 lakh crore retail loan book amounting to 70% of assets, a NIM of 5.5% and an RoA of 1.5%, within the next 5 years - with Vaidyanathan and team it looks achievable.

International

Carl Jaison

WHAT 2019 MEANT FOR THE US-RUSSIA NUCLEAR DYAD AND THE WORLD AT LARGE ith the doomsday clock currently set at two minutes to midnight, underlining the dangerous potential for nuclear misfortune, it is worth recounting the actions of both the U.S and Russia this year in contributing towards the current predicament. The year 2019 heralded a renewed look on both sides with respect to arms control, albeit at the cost of strategic and nuclear stability. Beginning with the Trump administration’s Missile Defense Review, the mutual exit from the INF Treaty mid-year sent alarm bells ringing around the world with another treaty exit ie; from New START looming large as this year closes. This prognosis offers a round-up of the implications of each of these developments on the nuclear arms control architecture and its resultant impact on international relations in the upcoming decade.

Ballistic Missile Defense Review2019 At the beginning of 2019, the Trump administration revealed theBallistic Missile Defense Review (BMDR), which set the tone for enhanced future US missile defencecapabilities in an increasingly complex geopolitical scenario.In the Rumsfeld Commission

Report of 1998, the United States made the first assessment of the likely threat of Russian and Chinese ballistic missiles tipped with nuclear payload, which paved the way for the development of its national missile defence program. Consequently, the U.S exit from the Anti-Ballistic Missile (ABM) Treaty in 2002 became a foregone conclusion.Taking forward the identification of threats from the offensive missiles of China and Russia as articulated in the US National Security Strategy and Nuclear Posture Review of 2018, the latest BMDR acknowledged the pressing need to adopt Integrated Air and Missile Defense (IAMD).While unveiling the 2019 BMDR, President Trump went as much to say that the goal is”to ensure that we can detect and destroy any missile launched against the United States—anywhere, anytime, anyplace.”1Indeed, with the ongoing expansion of Russia’s and China’s advanced ballistic, cruise missiles and hypersonic missiles, the U.S considers ramping up its defensive systems as vital for deterrence objectives. However, the current review has both — important continuities as well as innovations — when compared to the previous BMDR. Nevertheless it does heighten the perception that there is an ongoing arms

race among the major nuclear powers. Firstly, the BMDR posture furthers an already entrenched element of U.S strategic capability ie; reliance on ‘nuclear deterrence for strategic nuclear attack.’2 In addition, the BMD seeks to identify the spectrum of air and missile threats including from UAVs, cruise missiles, hypersonic glided vehicles (HGVs) etc. This is part of the complex strategy of Integrated Air and Missile Defense (IAMD) that is still in its infancy. The reference to HGVs is to potentially counter the threat of Russia’s new class of missiles, which can promise rapid accurate delivery with the ‘combined attribute of the speed of ballistic missiles and the maneuvering capabilities of cruise missiles.’ 3 The current U.S missile defense systems are incapable of withstanding the might of hypersonic missiles with Russia and China developing both conventional and nuclear payloads. Secondly, in close relation to the rapid advancement of hypersonic missile technology, the highlight of the BMD review is the endorsement of a Space Sensor Layer (SSL). However, there is currently nothing concrete as far as a timeline or architecture framework is concerned. Nevertheless, the emphasis is on space-based interceptors, with its SEASONAL MAGAZINE

WHAT 2019 MEANT FOR THE US-RUSSIA NUCLEAR DYAD AND THE WORLD AT LARGE birth-to-death trajectory tracking, which serves as a deterrent against HGVs. In light of China’s smaller strategic nuclear arsenal and the resultant threat of the MDR, the former has stepped up its pursuit and development of wideranging mobile air and missile defense capabilities including the purchase of S-400 ballistic missile defense systems from Russia. The outcome of these developments is the familiar spiral of defense-offense advancements with the added spectre of an uncertain arms control regime.

TERMINATION OF THE INF TREATY After the U.S and Russia formally withdrew from the INF Treaty in August of this year, a nuclear arms control agreement negotiated by then-US President Ronald Reagan and Soviet leader Mikhail Gorbachev in 1987, arms control experts heaved a collective sigh of exasperation at the state of arms race between the two Cold War rivals. The INF Treaty had helped to keep a check on the elimination of conventional and nuclear warheads on missiles with ranges between 500 and 5,500 kilometres. It also required the destruction of around 2,692 missiles – 1,846 by Russia and 846 by U.S enabling the combined decrease in nuclear stockpiles from almost 70,000 in 1986 to just under 15,000 today.44 Lori Esposito Murray However, even the most ardent supporters of arms control would agree that the evolution of new weapon technologies and the expiration of verification provisions was always going to shake the foundations of one of the most historic non-proliferation treaties ever negotiated. Given Russia’s perceived weakness in light of U.S missile defense upgradation and U.S concerns over China’s offensive and advanced sea and air-launched cruise and hypersonic missiles, the current geopolitical scenario warrants a renewed look at arms control regimes. The demise of the INF Treaty, in the eyes of the U.S administration, was triggered by Russia’s deployment of 9M729 missiles - known to NATO as SSC-8which the trans-Atlantic alliance believes pose a threat to continental security. The fear compounded with the increased knowledge about Russia’s SEASONAL MAGAZINE

missiles, which are said to be ‘nuclearcapable, mobile, very hard to detect with the ability to reach European cities within minutes’.5The U.S has already conducted two conventionallyconfiguredground-launched ballistic missile tests, which would not have been permitted under the INF Treaty. Given Russia’s and China’s rapid development of hypersonic cruise missiles, which can render US missile defense useless, the Trump administration is on course to build more missiles and strengthen missile defense. The lack of limitations on U.S and Russia’s missile development programmes will escalate an already volatile arms race. The immediate implication of this is that the casual attitude towards the sedestabilizing weapons would threaten existing arms control regimes and undermine the post-Cold War progress towards nonproliferation efforts.

THE NEW START New START was conceived of as an area of cooperation for the Obama and Medvedev administrations in 2010; ratified by the two parties, having a shelf life of 10 years and renewable by five years upon mutual agreement. It curbs the number of ‘nuclear launchers and deployed land- and submarine-based missiles and nuclear-capable bombers’ each party can have. 6 A fairly straightforward treaty that also limits the number of strategic nuclear warheads deployed, the New START is the latest and currently the only remaining arms control agreement between the two super powers that is vulnerable to whims of the increasingly unstable arms race underway. In addition, the current trend is not to quantitatively engage in an arms buildup but to improve on existing technologies and the rapid adoption of autonomous weapon systems. The result of this dual uncertainty is the ‘total loss of transparency, predictability and information exchange’, which Ulrich Kühn calls “strategic blindness”.7While Russia has at least offered to begin extension talks, the fact that the U.S continues to insist on having China on board certainly complicates the situation. Needless to say, China would not consider any reductions to its relatively small nuclear arsenal unless

‘both U.S and Russia give up parts of their own material military power’. 8 However, the most alarming fall-out from the prevailing climate of arms control uncertainty is how it is perceived by the non-nuclear states in their commitment towards NPT. Therefore, it is not only prudent for both U.S and Russia to agree to New START extension, albeit under less-politically volatile conditions, but it would help salvage the need to undergo dangerous escalation of threats. In a way, the three crucial developments within the nuclear dimension of U.SRussia relations are inter-linked; in fact one tends to impinge on the other. The unilateral U.S exit from the Anti-Ballistic Missile (ABM) Treaty in 2002 paved the way for much of the uncertainty being witnessed today. It does not help matters that Russia was found to have repeatedly flouted INF Treaty obligations, despite U.S diplomatic maneuvers. However the New START, negotiated during a brief period of U.SRussia rapprochement, has the potential to undercut the misgivings of both parties. The current state of arms control is a grim reminder that superpowers are more interested in being disruptors than in maintaining thestatus quo. Despite the numerous arms control agreements signed during the heydays of the Cold War, the current state of play is also a throwback to a time when the arms race was underway in full throttle with little appetite for nuclear ‘maturity’. With both Russia and China modernizing their nuclear force capabilities, with respect to hypersonic weapons technology, it is a clear sign that arms control regimes need a revival. In a prevailing atmosphere of mutual trust deficit, it is difficult to fathomhow these superpowers can sensitize themselves on the benefits of on-site verificationand inspections found in existing arms control architecture. Perhaps the recent outreach by Russian President Vladimir Putin to ‘unconditionally extend the New START’ is a step in the right Will the Trump direction. 9 administration see virtue in it or does it wish to first see China in it? The upcoming year might hold out an ungainly promise as much as it presents an unprecedented peril.

Banking

GOVERNMENT CONTINUES TO PUMP THOUSANDS OF CRORES INTO PSU BANKS IN THE LATEST ROUND OF FUNDING, PSU BANKS THAT DID NOT GET FUNDING EARLIER HAS BEEN THE BENEFICIARIES. THESE BANKS NEED IT NOT ONLY FOR RECAPITALIZATION BUT FOR THEIR PLANNED MERGER WITH PEERS.

3 CAMERAMEN BOOKED FOR FILMING WOMAN CONSTABLE CHANGING CLOTHES IN AP Three cameramen from different news channels have been booked for allegedly filming a video of a woman constable in Andhra Pradesh while she was changing her clothes. The woman constable complained to her higher authorities after which videos and photos shot by the three were confiscated. "This is indecent behaviour. We never expected such things from media," police said.

MY DAUGHTERS & I HAVE CONVERSATION ABOUT HAVING RIGHT TO SAY 'NO': NICOLE Actress Nicole Kidman, while talking about sexual harassment, said that she and her daughters have conversations about the "right to say no to many different things". She further said her recent film, 'Bombshell', "aims to educate and encourage" people to talk about sexual harassment. "A lot of it is making it safer for people so...we've a safer world," said Nicole.

tate-owned Allahabad Bank has announced that it will get a fresh capital infusion of Rs 2,153 crore from the government in the current financial year. The Department of Financial Services in a letter conveyed the sanction for release of the fresh capital infusion fund of Rs 2,153 crore, Allahabad Bank said in a regulatory filing. The capital infusion is towards contribution of the central government in the preferential allotment of equity shares of the bank during the financial year 2019-20 as the government's investment, it said. Infusion of the capital into the bank by the government comes ahead of the merger with Indian Bank and it will help the bank meet the

regulatory requirement to get amalgamated with a bigger peer. Notably, Allahabad Bank had not featured in the list of banks who were approved a total fresh capital infusion of Rs 55,250 crore, as announced on August 30 by the government. In this list, Punjab National Bank was approved to get Rs 16,000 crore, Union Bank of India Rs 11,700 crore, Canara Bank Rs 6,500 crore and Indian Bank Rs 2,500 crore. Besides, Bank of Baroda got a capital infusion of Rs 7,000 crore, Indian Overseas Bank Rs 3,800 crore and Central Bank of India Rs 3,300 crore.

TOLD TRUMP WAR WITH IRAN WILL BE DISASTROUS: PAK PM IMRAN KHAN Pakistan Prime Minister Imran Khan on Wednesday said he has told US President Donald Trump that a war with Iran would have disastrous consequences. "If there is conflict between Iran and the Western world it will be a disaster...In my opinion it would be insanity," Imran Khan said. He met Trump on the sidelines of the World Economic Forum summit.

This round of capital infusion as intended will enhance the capital base of public sector banks so that they could accelerate lending in a bid to bolster growth. SEASONAL MAGAZINE

IPO Watc h tch

IRFC FILES DRAFT PAPERS FOR IPO The much anticipated IPO of Indian Railway Finance Corporation may be coming soon. The state-run market borrowing arm of the Indian Railways, has filed a draft prospectus with the Securities and Exchange Board of India (SEBI) to float an initial public offering. The IPO comprises a fresh issue of 938 million shares by IRFC and an Offer-for-Sale (OFS) of 469 million existing shares by the current sole shareholder, Government of India. Analyst estimates put the approximate IPO size including fresh issue and OFS at around Rs. 2500 crore or upwards. SEASONAL MAGAZINE

IRFC’s IPO will follow the blockbuster success of the IPO of state-run Indian Railway Catering and Tourism Corp. (IRCTC), which was subscribed nearly 112 times last October, and quickly climbed to nearly three-times the IPO price. However, while IRCTC is a consumer facing business, IRFC is a B2B lending business. IRFC is the dedicated market borrowing arm of the Indian Railways and it finances the acquisition of both powered and unpowered vehicles such as locomotives, coaches, wagons, trucks, containers, cranes etc, apart from its services in in leasing of railway infrastructure assets and national projects of the government, and financing to other entities under the Ministry of Railways. Apart from IRCTC, Government had gone for the IPOs of its Railway PSUs, IRCON and RITES. Now it is planning to tap primary markets again for its larger Railway PSU, Indian Railway Finance Corporation (IRFC). IRFC’s IPO is likely to happen this fiscal. As one of the major financial providers for Indian Railways, IRFC is always on the lookout for fund raising plans and has been tapping even overseas markets successfully. Government of India is simply the largest promoter of diverse enterprises in India. Once in a while, GoI takes from its deep pockets an anmol ratan or rare jewel that will surprise most Indians. This is the story of one such jewel – Indian Railway Finance Corporation - that is all set to go public soon. The domain of Non-Banking Financial Companies or NBFCs is dominated by the private sector in the country. But unknown to many but their employees and financial sector experts, Government of India also runs a few large NBFCs. Indian Railway Finance Corporation (IRFC) is one such NBFC recognized by the sector regulator Reserve Bank of India as a Systemically Important Non– Deposit taking Non-Banking Financial

Company (NBFC – ND-SI). Owned 100% by the Government of India and coming under the administrative control of Ministry of Railways, IRFC is also an Infrastructure Finance Company (NBFCIFC) under RBI regulation. Now, to what makes IRFC an Anmol Ratan from the government stable. The moment an analyst hears of a lender – be it a bank or an NBFC – the first concern would be their Non Performing Assets or NPAs. Because, most banks and NBFCs have been reeling from staggering NPAs since 2009. How does IRFC fare on this front? Well, it has 0% NPAs. Yes, nil or no NPAs at all. The second concern with lenders would be something called Capital Adequacy Ratio or CAR. It signals how financially stable is a bank or NBFC when it comes to growing it’s loan-book. International Basel regulations as well as RBI stipulates stringent CAR norms for different kinds of lenders, and most of these fall in the double digit teens. Lenders literally struggle to keep up with regulatory norms for CAR as either it requires highly profitable operations or frequent Tier-! Capital rises. Here also, IRFC comes out with flying colours with a CAR of 355%. The third concern would be the operational profits, as with everything else like NIMs and yields getting to be equal, lenders differentiate more through their better operational efficiencies. Here also, IRFC has no competition as it is a lean operation, having only one owner and one client – Indian Railways!

IRFC IS THE DEDICATED MARKET BORROWING ARM OF THE INDIAN RAILWAYS AND IT FINANCES THE ACQUISITION OF BOTH POWERED AND UNPOWERED VEHICLES SUCH AS LOCOMOTIVES, COACHES, WAGONS, TRUCKS, CONTAINERS, CRANES ETC

Indian Railway Finance Corporation (IRFC) was set up in 1986 as the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas Capital Markets. In more than 30 years of existence, IRFC has played a significant role in supporting the expansion of the Indian Railways and related entities by financing a significant proportion of its annual plan outlay. The primary objective of IRFC is to meet the predominant portion of Extra Budgetary Resources (EBR) requirement of the Indian Railways through market borrowings at the most competitive rates and terms. The Company’s principal business therefore is to borrow funds from the financial markets to finance the acquisition / creation of assets which are then leased out to the Indian Railways. IRFC’s cumulative funding to rail sector had crossed Rs.2.20 lakh crore by the end of March, 2018. The funds are utilized for acquiring rolling stock assets and also building up infrastructure, constituting significant part of annual capital expenditure of Indian Railways. So far, it has funded acquisition of 8998 locomotives, 47910 passenger coaches, 2,14,456 wagons, which constitute around 70% of the total rolling stock fleet of Indian Railways. From 2011-12 onwards, IRFC has forayed into funding of railway projects and capacity enhancement works. With such growth prospects, but tempered by Railway’s highly economical services, this NBFC has been growing its topline steadily with a revenue CAGR of 13%. SEASONAL MAGAZINE

In-Focus

THYROCARE IS INDIA'S FIRST AND MOST ADVANCED TOTALLY AUTOMATED LABORATORY CHAIN HAVING ITS STRONG PRESENCE IN MORE THAN 2000 CITIES AND TOWNS IN INDIA AND OTHER COUNTRIES.

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THYROCARE TECHNOLOGIES

THE VALUE IN INDIA'S DIAGNOSTICS PIONEER DR. A. VELUMANI LED THYROCARE TECHNOLOGIES HAS BEEN INDIA'S PIONEER DIAGNOSTIC CHAIN IN THE LISTED SPACE. BUT LIKE HOW ALL PIONEERS HAVE HAD TO SUFFER, THYROCARE TOO HAD ITS UPS AND DOWN IN THE CAPITAL MARKETS. BUT STARTING FROM Q1, AND GATHERING PACE WITH Q2'S GOOD NUMBERS, THYROCARE HAS PUT IT ALL BEHIND TO EMERGE ONCE AGAIN WITH RAPID GAINS IN THE MARKET, AS IT DESERVES TO BE RE-RATED LIKE ITS BIGGER PEERS THAT HAVE LISTED MORE RECENTLY. BUT UNLIKE SOME OF THEM THYROCARE IS A PROFITABLE ENTITY FROM DAY ONE, EVEN WHEN OFFERING IMMENSE VALUE TO ITS CUSTOMERS. AND FOR INVESTORS, IT OFFERS A SCALABLE SIZE AND EXCELLENT DIVIDEND YIELD. It is an eternal riddle how much of our human lives are of our own choice and making, and how much of it is predetermined or destined to happen. While the proponents of each theory are quick to rubbish the other, the fact of the matter is that any careful observer can find out that there is a mysterious mix of the two. Even Bill Gates, who has once again become the world’s richest person in November 2019, and who is known for thinking about everything scientifically and objectively, has made it clear that he wouldn’t have been the numero uno billionaire he is now, unless he had been

born in a specific period in a specific country to specific parents. Gates cannot deny that obvious truth because he was born to not only very successful parents, but to parents who were influential in the society, especially his mother who had a leading role in a huge charitable organization, and who played a pivotal role in young Bill’s school getting a computer for the students on which the future co-founder of Microsoft learnt programming basics. And needless to say, where it all happened – USA – and when it all happened – the dawn of microcomputing – was picture perfect for a

highly competitive and talented kid like Bill Gates to emerge as one of the youngest ever billionaires and eventually the world’s richest guy. But if anyone thought only rich and influential parents, as well as developed countries like USA, can spawn predetermined successes, nothing could be farther from the truth. Aarogyaswamy cultivated maize for about four months every year in his own small land near Coimbatore in Tamil Nadu, for a living. His name is believed to mean the ‘God of Health’ in Tamil language, but he had nothing much to do with health services, or so most must SEASONAL MAGAZINE

have thought back then.

that adversities.

By the time he had four kids, Aarogyaswamy was turning apprehensive about how in the world he would provide for them all and his wife Sayammal with this meagre maize cultivation that was dependent on the vagaries of the annual rains.

Why is this important in understanding Thyrocare Technologies, and especially its prospects in the capital markets, in wealth creation?

But Sayammal rose to the occasion and took things in her own hands. She was already helping her husband in the fields. But she realized it was not enough. She spent her savings on buying two buffaloes, and the family started making Rs.50 more every week. Sayammal was not only a micro entrepreneur but a good money manager too. She used to run the entire household of husband, four kids and herself on just Rs. 70 a week. The keywords were simplicity and frugality. On such values, she managed to make all four of her kids, college graduates. It was by no means any easy task. All of them attended the local Town Panchayat Union School, where all the stuff the kids had were a slate and a plate. There was no uniform and the kids sat on the floor, listening keenly to their teacher. Besides that, Aarogyaswamy’s kids had the additional burden of missing school for four months of the rainy season, as they were busy helping their Appa and Amma to cultivate corn in their small land. The miracle is not that their elder son Aarogyaswamy Velumani or A Velumani as he is popularly known went on to create a successful healthcare empire called Thyrocare which is listed in the stock exchange and valued at half a billion dollars, but that A Velumani credits his father, his mother, his village and his upbringing for his success! That is not something even Bill Gates or even any of the billionaires would dare to do! Crediting deepest of adversities in childhood and youth, for what one has achieved today. There are many who would say that they succeeded against such odds, but A Velumani’s take on it is different – he is speaking about a higher truth which is that he succeeded precisely because of SEASONAL MAGAZINE

Thyrocare, at its present market capitalization of around Rs. 2910 crores, clearly falls into what the Indian market calls the small-cap space. And the sharpest wealth creation has always happened when some of the aspiring small-caps surged into midcaps and even fewer of them eventually became large-caps. At the large-cap, and even to an extent the mid-cap space, the entrepreneur or the founder has ceased to become the all-powerful factor determining success, as tiers of management talents also become crucial. But in the small-cap space, even if professional management and cutting-edge technology deployment are there, the crucial factor determining success is still the entrepreneur. That is where the unique values of Thyrocare’s Founder, Chairman, MD, & CEO A Velumani scores. When he says adversities built him, he is not simply saying a fanciful statement, but has enough to back it up from his own life and Thyrocare’s history. There are values that he has always lived by, and on which he had built the Thyrocare empire. It was on these values that he converted each adversity that came his way into a growth opportunity. These values are focus, discipline, honesty, frugality and disruption. Among these, he regards frugality as the basic and most crucial lesson of life. As

THYROCARE’S CENTRALIZED PROCESSING LABORATORY AT NAVI MUMBAI CONSISTS OF 120,000 SQ. FT. OF TRACK AUTOMATION SYSTEM THAT OPERATES 24X7, PROCESSING OVER 40,000 SAMPLES A DAY WITH A TURNAROUND TIME OF 4-5 HOURS, USING AIR-CARGO LOGISTICS, BARCODING AND IT.

noted, his childhood was about foods made of the corn they cultivated, limited amenities and simple requirements. Says Velumani, “I learned business management from my mother who used to manage the family, consisting of 4 children, with only 70 rupees. But she managed to make all her 4 children graduates.” And whereas most children learn the value of discipline from school and college, if at all, Velumani says it has been deeply ingrained in him due to his village upbringing. Says the Thyrocare Founder, “Villages are the true universities; entrepreneurs who are born in villages create a big impact because in villages there is only practical learning. Poverty gives you stamina. The poor have nothing to lose; there is no lack of courage in them. An empty stomach teaches you everything in life.” According to Velumani, focus is the single-most important value that is inevitable for success. Sometimes focus is thrust upon us, whereas some other times we must choose to focus on what is important. He remembers his plus-two years (at that time PUC) as such a period. He was away from home, at a relative’s place, homesick and he was lonely most of the time making him focus on studies and unpopular subjects among students like maths and science. His college days were mired in adversities as he wanted to pursue engineering, but there was no means for it with his family. He was forced to join for BCom by some relatives, but a professor at the college saw his focus for science and maths and shifted him to science. He also had to try for odd and part-time jobs to support his own college life. Thus it was focus that first got him to BSc Chemistry and later on to MSc in Biochemistry (Thyroid) and PhD in Thyroid Pathophysiology, the latter two from Bhabha Atomic Research Centre (BARC), while he was working there. According to Velumani, his focus on maths helped him immensely even in his entrepreneurial career. Always short of cash even for the basic

“YOU SHOULD HAVE THE COURAGE FOR PRICING. IF YOUR BUSINESS IS A FAILURE YOUR PRICING WAS WRONG”.

amenities, Velumani remembers that he often spent time on railway platforms studying, and while on his first trip to Mumbai to be interviewed at BARC, he had to spend four days at the Mumbai CST station. The seeds for disruption were also sowed in his mind from early on. In one such instance, Velumani remembers being turned down from many jobs by citing his lack of experience. He was just out of degree college, and he kept wondering how on earth he was supposed to have experience of years, when it was only just a few months after his degree. It was this adversity that made him try for a position at BARC, and which proved to be his first major turning point. And years later, Velumani would use this bitter job hunting experience to good use, as Thyrocare started welcoming fresh graduates who were perfectly trained and deployed across the organization. Today, for most of his 1500 employees, he has been their first employer, which builds loyalty and trust. And Velumani’s penchant for disruption knows no bounds. He has disrupted his own life at a crucial juncture, and went on to disrupt the entire diagnostic space. After spending nearly two decades as a scientist, and with all of Rs. 2 lakh in his PF account, he would one fine day resign from BARC to pursue his dream of starting a diagnostic chain. His influence on his family was nothing short of infectious. Whereas most Indian wives would have found fault with his decision to quit a plum scientist’s job at BARC, Velumani’s wife Sumathi who

“I LEARNED BUSINESS MANAGEMENT FROM MY MOTHER WHO USED TO MANAGE THE FAMILY, CONSISTING OF 4 CHILDREN, WITH ONLY 70 RUPEES. BUT SHE MANAGED TO MAKE ALL HER 4 CHILDREN GRADUATES.”

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was at that time working for State Bank of India, quit her career of 15 years on the same day and joined ranks with him in creating Thyrocare. But the biggest disruption would come from Thyrocare, in the diagnostics market. From day one, Thyrocare was not only a quality leader but a cost leader. The secret to this was automation and superior efficiency. It was this edge that made Thyrocare rapidly become the preferred partner for hospitals, laboratories and clinics. To this day, it is doubtful whether there is any other diagnostic chain in India that enjoys 75% of its business from the stable Business-to-Business (B2B) segment. Velumani is one entrepreneur who will not ever underestimate the need for

“VILLAGES ARE THE TRUE UNIVERSITIES; ENTREPRENEURS WHO ARE BORN IN VILLAGES CREATE A BIG IMPACT BECAUSE IN VILLAGES THERE IS ONLY PRACTICAL LEARNING.”

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disrupting the cost for focusing on the customer. Says he, “You should have the courage for pricing. If your business is a failure your pricing was wrong”. But pricing has never deterred Velumani’s ambition to remain as the tech emperor in the field of diagnostics. From day one, Thyrocare has utilized the then available world-class technologies, and over the years, the momentum of technology adoption has

exponentially increased. Today, Thyrocare has deployed all cutting-edge diagnostic technologies including CLIA, ELISA, HPLC, CE, SE, LC-MS, ICP-MS, Fluorescence Flow Cytometry, Nephelometry, Photometry, Cytogenetics and more. Thyrocare has set up India’s first fully automated clinical chemistry laboratory with a focus on providing quality results at affordable costs to clients like

laboratories, doctors, hospitals and organizations as well as patients from across the country and abroad. Thyrocare’s Centralized Processing Laboratory at Navi Mumbai consists of 120,000 sq. ft. of track automation system that has a capacity to process over 50,000 samples in a day. The laboratory operates 24x7, processing over 40,000 samples a day with a turnaround time of 4-5 hours. Such superior turnaround times are possible only through Thyrocare’s deployment of air-cargo and IT infrastructure. Through air-cargo, more than 25,000 samples from all parts of India are brought to CPL. This is made possible by a strong logistics network of Thyrocare whose well coordinated efforts ensure that the samples reach the CPL every night, on the same night, before mid-night. These are meticulously collected, collated, checked for sample integrity, temperature and other aspects of Preanalytical Quality Control and then stored appropriately. The company’s superior information technology infrastructure helps in seamless integration of all the processes, as work orders are downloaded from the web server, barcodes are scanned and specimens are arranged accordingly for processing. More than 25,000 different samples are processed every night and

the reports are directly uploaded back in the website for the customer to see. With such systems in place it is no wonder that Throcare is performing well financially. In the most recent Q2, consolidated net profit rose 38.6 percent year-on-year at Rs 35 crore. Revenue was up 11.9 percent at Rs 116.2 crore. EBITDA rose 21.2 percent to Rs 52.1 crore and EBITDA margin was up 340 bps at 44.8 percent. Revenue from Diagnostic and imaging testing services increased by 13% and 5% YoY, respectively. Diagnostic services EBIT has increased by 18%. While it’s bigger B2B business grew 8%, it’s B2C revenue has increased by 17% YoY. Despite strong fundamental performance over the past few quarters, the market is yet to rerate the Thyrocare stock due to its so far greater focus on the B2B segment. But Thyrocare is a dividend leader with 3.6% dividend yield to investors, and an interim dividend for FY20 at the rate of Rs 5 per share was announced after Q2. A Velumani has also in recent years spearheaded a new venture Aarogyam that focuses on preventive health checkup packages and Nueclear, a chain of high-end imaging centers. With B2C business increasing, strong growth in both revenues and earnings and high dividend payout, it is only a

"POVERTY GIVES YOU STAMINA. THE POOR HAVE NOTHING TO LOSE; THERE IS NO LACK OF COURAGE IN THEM. AN EMPTY STOMACH TEACHES YOU EVERYTHING IN LIFE.”

matter of time before Thyrocare enjoys premium valuations as is customary with consumer facing business. As of now there is a sharp valuation discount to peers, prompting noted analysts to give buy ratings on the stock. Dr Velumani who had a majestic journey till 2016, then had to encounter the loss of his most valuable asset and co-founder, Mrs. Sumathi Velumani for Pancreatic Cancer. Says Dr. Velumani, the father of Thyrocare, on his wife, “She was the Mother Of Thyrocare.” Though his children, Anand and Amruta Velumani have been a part of Thyrocare for some time now, he says “ No one can truly be a replacement for Sumathi”. He fondly acknowledges the contributions of his younger brother Mr A Sundararaju, Director and CFO of Thyrocare for trusting and journeying with him for 4 decades. SEASONAL MAGAZINE

Performance

PRESTIGE ESTATES AT ALL TIME HIGH, CEO BAGS ‘CEO OF THE YEAR’ AWARD Prestige Estates Projects Chairman & Managing Director Irfan Razack has reasons to be proud of. Prestige stock recently hit its all-time high, its Q3 numbers are impressive and CEO Venkat Narayana has been adjudged as the ‘CMA CEO of the Year 2019”.

restige Estates’ performance comes across as outstanding all the more because very few realty stocks are trading near their all-time highs. Most are way down from their lifetime peaks, while many have failed to mark even new 52Week Highs despite the on-going stock market boom. It is no wonder really as post the RERA implementation, strong players in project execution like Prestige have gained an upper-hand in the market. While most large developers including Prestige are still

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saddled with significant debt and unsold inventory, it goes to the credit of the company management that it has taken significant strides in recent quarters to deleverage and at the same time, rev the sales engine faster. The recent Q3 numbers speak for themselves. The positive turnaround that started in the Q4 of last fiscal is still going strong. In the recently concluded December quarter, consolidated net profit of Prestige Estates Projects rose 178.49% to Rs 161.80 crore as against Rs 58.10 crore during the previous quarter ended December 2018.

Sales rose 154.48% to Rs 2680.90 crore in the quarter ended December 2019 as against Rs 1053.50 crore during the corresponding quarter of the previous fiscal. Apart from efforts at deleveraging and sale of unsold inventory, Prestige has been inking several strategic deals in recent quarters. It has tied up with Marriott for luxury hotels, invested in Lokhandwala DB Realty LLP for 50% stake, and attracted further equity investments from an arm of Singapore’s sovereign wealth fund GIC to the tune of Rs. 436 crore. Prestige may also consider going for an REIT for its revenue generating commercial and office space assets in the future. Prestige Estate’s CEO Venkat Narayana is a young achiever and has been a Prestige veteran for over 17 years now. He was instrumental as the then CFO during the company’s IPO and was elevated to be CEO in 2017. A uniquely qualified professional, Venkat is a qualified Chartered Accountant, Company Secretary, Cost Accountant and a Law Graduate. Recently, he was adjudged as the prestigious ‘CMA CEO of the Year 2019’ by the Institute of Cost Accountants of India. He received the award from Shri. Piyush Goyal, Union Minister for Railways & Commerce, during the Institute’s Global Summit 2020.

Gadget personal assistant.

USE TWO APPS AT ONCE THROUGH SPLIT-SCREEN MODE

7 ANDROID ADVANTAGES, IPHONE STILL DOESN'T HAVE FROM CUSTOMIZATION TO BETTER MULTITASKING, ANDROID PHONES CAN DO A LOT THE IPHONES JUST CAN'T. he debate between Android and iPhone fans over which platform is better is one that never seems coming to an end. Both sides of the argument have their share of talking points, ranging from security and encryption for iPhone users to customization and Google Assistant prowess on the Android side. And for the most part, they're all valid arguments. Here are some of Android's strengths that the iPhone just doesn't have yet, from being able to set default apps and using more than one app at a time to being able to completely customize the look of your phone.

SET CUSTOM APPS FOR EACH JOB The ability to set Gmail as the default email app on an iPhone is something iOS users have been asking Apple to add for years. Even though Apple added the option to delete its own apps from iOS, you still can't set a default app. It's tragic, really.bBut Android lets you set Firefox or Opera as your default browser, or set Google's Messages app as your text messaging app of choice to take advantage of RCS, Google's recently released chat feature that acts a lot like Apple's iMessage. Android users, of course, have been able to set default apps from the very beginning. It isn't hard to see which apps have been labeled as default and, if you want to,

change that default app. Start by opening the Settings app and go to Apps & notifications > Default apps.

GOOGLE ASSISTANT IS MORE POWERFUL iPhone users have Siri, but Android gives you Google Assistant. Google's digital voice sidekick is a much more sophisticated tool than Apple's Siri for a slew of reasons, but the most important one is that it builds off Google's impressive database. Google Assistant has an proven ability to understand common requests for businesses and names, and it gets requests right more often than wrong. It also returns high quality responses, drawing from Google Search, a tool that Siri doesn't have access to. Google Assistant also tightly integrates with the phone's other functions, to tell you when it's time to leave for your next meeting and nudge you that traffic is extra heavy going on the way home. If you have any Google Home or Nest Home smart speakers, or other compatible devices, you can also use Assistant on your phone to control stuff around your house like lights, outlets or your thermostat -- even from afar. And it's built right into your Android device. "OK, Google" and "Hey, Google" are the two wake words. If you need help knowing what to ask, you can ask Google Assistant for a list of commands: "OK, Google, What can you do?" iPhone owners can also install the Google app to use Assistant, but it's not built in and it's not the default

Even though iPadOS 13 supports using multiple apps at the same time, iOS 13 and the iPhone do not. Android users, however, have had the ability to use splitscreen apps since 2016 with the release of Android 7.0 Nougat. Using two apps is helpful if you're trying to look up a contact's phone number to send to someone on Facebook Messenger, or if you need to reference in information in a document when composing an email. It's unclear why Apple hasn't added this feature to the iPhone yet, but perhaps it has something to do with the size of windows on the iPhone's smaller display, compared to the iPad. The easiest way to use split-screen mode is to open the multitasking view and tap on the app's icon at the top of its multitasking card -it's the same icon you use to launch the app from your homescreen. Select Split screen from the list of options, then select the second app you want to have open at the same time. (These steps might vary depending on which Android phone you use. For example, Samsung phones have their own skin.) You can adjust the size of each app by dragging the small handle between the two apps to expand or decrease how much space an app takes up on the split-screen.

CUSTOMIZE YOUR HOMESCREEN Apple's approach to the homescreen is to place all installed apps in a rigid grid across multiple pages. Most Android devices take a two-pronged approach by giving you a homescreen and an app drawer. The homescreen doesn't follow a grid layout, allowing you to place apps anywhere you'd like. Both platforms let you make folders containing groups of apps. The benefit of Android's approach is that you can completely customize the homescreen by arranging app icons in any pattern of your choosing, and Android supports widgets of varying sizes. Right now, Apple's Today view is the only place you'll find a widget.

YOU CAN USE LAUNCHERS TO FULLY customize your phone The way your Android phone's homescreen looks is because of its launcher. But you're not stuck with what SEASONAL MAGAZINE

7 ANDROID ADVANTAGES, IPHONE STILL DOESN'T HAVE comes preinstalled. Launchers are the epitome of Android customization. These apps let you completely change how you interact with the homescreen, the app drawer and even the app icons on your phone. Using a launcher on your Android phone allows you to customize almost every aspect of how your phone looks and behaves, making your phone even more personal than it already is. Launchers like Nova Launcher, Microsoft's Launcher, Apex Launcher or Action Launcher, all add their own twists and features to your Android phone. For example, another popular Android launcher, Evie, emphasizes using a search bar to quickly find and open apps, or anything else on your Android phone for that matter. It's minimalism at its finest. Research the various launchers, try a couple of them, and really customize the look and feel of your phone. Just be forewarned: The deeper you dive into the world of launchers, the more time and energy you're going to spend on tweaking your setup. It's hard to imagine a world where Apple ever lets something like this happen for the iPhone.

NEVER GET BORED WITH AUTO-CHANGING WALLPAPERS If taking the time to find and customize a launcher feels like a lot of work, but there's another way to make your Android phone constantly feel fresh, and it's yet another thing your iPhone friends can't do -- use Google's Wallpapers app, which delivers value to any Android user. The Wallpapers app refreshes the wallpaper on your homescreen and lock screen daily, without you having to do a thing. There are several different categories of wallpaper styles to choose from. Pick your favorite, and let the app take care of the rest. Personally, I like to use the geometric shapes category. The wallpapers are unique and colorful.

WATCH A VIDEO AND TWEET AT THE SAME TIME If you've ever started navigating in Google Maps, only to leave the app and answer a text message, you surely have seen a small Google Maps window remain visible in a corner of the screen. Android gained a system-wide picture-in-picture mode for more than just video apps with the release of Android Oreo in 2017. In addition to Google Maps and video apps, you can also use picture-in-picture for video calls with supported apps. My favorite use of picture-in-picture is to begin streaming a YouTube video and then leave the app to browse Reddit or reply to a text message or email while the YouTube video keeps playing in a corner of the screen. When I want to go back to watching the video full-screen, I just tap on the small thumbnail to maximize it. iPhones don't have any sort of picture-in-picture mode. What you see on the screen is what you get, and nothing more. SEASONAL MAGAZINE

HOW POWERFUL CAN BE A 3-CYLINDER HATCH ENGINE? Toyota has revealed GR Yaris with the world’s most powerful 3-cylinder engine.

oyota has developed a new performance packed variant of the Yaris hatch for its Gazoo Racing division in Tokyo. Toyota has revealed the performance-packed GR Yaris at the ongoing 2020 Tokyo Auto Salon, which comes with more than what you’d expect from a small hatch, including mindboggling power figures, a manual transmission and an all-wheel drive configuration. Gazoo Racing boss, Mr. Shigeki Tomoyama at the launch said, “While the new GR Supra is a sports car developed through track racing, the GR Yaris has been devised through our participation in rallies – something that many of our fans have been waiting for.” Powering the three-door pocket rocket is a 1.6-litre 3-cylinder turbocharged petrol engine, which puts out a massive 257 hp of max power, along with 360 Nm peak torque. The power is sent to all four wheels via a six-speed manual gearbox. The GR Yaris is also equipped with two Torsen limited-slip differentials. In terms of dimensions, the GR Yaris is 3,995

mm long, 1,805 mm wide and has a 2,558 mm long wheelbase. The front track measures 1,530 mm, while the rear track is 1,560 mm long. Toyota has managed to keep the weight of the performanceoriented hatch under 1,300 kg, thanks to the use of carbon fiber polymer and aluminium in its body – which gives it a better power-to-weight ratio than most of the hot hatches currently on sale, including the VW Golf GTI, Golf R, Hyundai i30 N and the Subaru WRX STI. The car can sprint from 0 to 100 kmph in under 5.5 seconds, but its top speed has been electrically limited to 143 mph (230 kmph). As compared to the regular Yaris hatchback, the car’s roofline has been lowered by 91 mm to give it a coupe-like appearance. Apart from that, the car has been equipped with frameless doors, along with sporty all-black 18inch alloy wheels. Toyota will produce the GR Yaris at its facility in Motomachi, Japan. The hot hatch will go on sale in UK in the second half of this year, however the Japanese carmaker is yet to reveal the car’s price.

Energy

INDIA LOOKS BEYOND WEST ASIA FOR OIL INDIA MAY DOUBLE AMERICAN OIL IMPORTS, AND START SOURCING FROM RUSSIA, TO CUT RELIANCE ON WEST ASIAN OIL IMPORTS. ndia is heavily dependent on oil imports from West Asia. Its top three suppliers in 2018-19 are from the area: Iraq, with about 46.6 million tonnes (MT) in 2018-19, is the number one supplier, followed by Saudi Arabia (40.3 MT) and the UAE (17.5 MT). Kuwait supplied 10.8 MT. India plans to double crude oil imports from the US as part of its effort to reduce dependance on the volatile West Asia region, three officials with direct knowledge of the matter said. Oil purchases from the US, which started in 2017-18, have already crossed about 6 million tonnes a year. India is also keen on long-term oil supply contracts with Russia and oil producing countries in Africa, the officials said on condition of anonymity. “We can easily double our crude oil imports from the US to 12 million tonnes. We are in talks with the US government and private oil firms as petroleum is an unregulated business in that country. We expect good rates and better terms from American firms that would compensate for our transportation costs. In return, we can offer them an assured market,” one of the three officials said. India is heavily dependent on oil imports from West Asia. Its top three suppliers in 2018-19 are from the area: Iraq, with about 46.6 million tonnes (MT) in 201819, is the number one supplier, followed by Saudi Arabia (40.3 MT) and the UAE (17.5 MT). Kuwait supplied 10.8 MT. Together, these countries supplied about 51% of the total of 226.5 MT of oil worth $111.9 billion or Rs 7.83 lakh crore that India imported in 2018-19, they said. According to the Petroleum Planning and Analysis Cell (PPAC), the data-keeper of the oil ministry, India’s crude oil import dependency on the basis of consumption was 83.8% in 2018-19.Put otherwise, 8.38 of every 10 litres of crude consumed in the country was imported.

Officials said the diversification of India’s crude basket is necessary because unlike other importers, it neither has its own resources nor has bought significant oil and gas assets abroad. India is the thirdlargest consumer of oil after the US and China. India’s efforts in recent years have resulted in diversification of energy sources with the focus on secure, stable and predictable supplies, a third official said, also on condition of anonymity. Efforts have also been made to change the energy mix, with a push for including more renewable sources, he added. Besides increasing oil and gas purchases from the US to diversify imports, there have also been shifts among traditional sources, especially in the case of supplies from Venezuela and Iran because of US sanctions and other domestic factors, the officials said. Importance is being given to Russia as an energy source, especially after the meeting between Prime Minister Narendra Modi and President Vladimir Putin at Vladivostok last September, the third official said. The two also signed a road map for cooperation in hydrocarbons for 2019-24. A joint statement issued after the meeting welcomed the success in cooperation between Russia’s JSC Rosneft Oil Company and the Indian consortium of state-owned oil and gas firms. Modi and Putin said they would forge cooperation in joint development of oil and gas fields in Russia and India, including offshore

fields, and develop ways to deliver energy resources from Russia to India, including a long-term agreement for sourcing Russian crude. “Our key interest is securing long-term supplies though there could be spot (purchases) in the European markets. We are also helping Indian oil companies to acquire stakes in offshore operations,” the third official said. “Work is also being done with players such as Saudi Aramco to create strategic reserves.” The US’ dependence on West Asian countries for energy needs is negligible due its huge domestic reserves, and China has significantly diversified its sourcing in terms of domestic reserves and equity oil abroad. A report of the International Energy Agency (IEA), titled “In-depth Review of India’s Energy Policies” that was launched by petroleum minister Dharmendra Pradhan on Friday, said: “The rate of growth of India’s oil consumption is expected to surpass that of...China in the mid-2020s... As proven oil reserves are limited compared with domestic needs, India’s import dependency (above 80% in 2018) is going to increase significantly.” “We are meeting in the backdrop of rising tensions in West Asia and its impact on stability and security in the region,” Pradhan said. Experts said India has almost stopped importing Iranian crude due to the US pressure, even as the country had been a reliable supplier of the best quality of crude at cheapest rate under most favourable terms and conditions. “We, therefore, need its replacement,” said an energy analyst who asked not to be named. India imported little over 27 MT Iranian crude in 2016-17. Former chairman & managing director of Oil and Natural Gas Corp (ONGC), RS Sharma said diversification of crude oil import is crucial to India’s energy security. “We are already importing from countries like Nigeria, Angola, USA and Venezuela. Russia could be an important supplier depending on resolution of transportation issues. But, at the same time, we cannot wish away the West Asian countries because they supply us cheapest crude. Transportation is also cost effective,” he said. SEASONAL MAGAZINE

Gold Retailing

Gold retailing used to be a goldmine for investors, until a few bad apples ruined the show for all. But Joy Alukkas still runs an empire that is as precious as the gold he retails, with impressive growth and admirable transparency. Within the last 32 years, it has helped Joyalukkas grow to be a 161-showroom chain across 11 countries, with 89 of them in India. With an 8000 member employee base, Joyalukkas clocked Rs. 13,000 crore in turnover last year, with Rs. 8100 crore from India. A billionaire with a heart of gold, he is constructing 250 free homes for flood victims in Kerala at a cost of Rs. 15 crore.

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"WITHIN THE LAST 32 YEARS, JOYALUKKAS HAS GROWN INTO A 161 SHOWRRON CHAIN ACROSS 11 COUNTRIES. OUR LAST YEARâ&#x20AC;&#x2122;S TURNOVER WAS RS. 13,000 CRORES. I HAVE LED THIS GROWTH SINGLEHANDEDLY AND WITHOUT ATTRACTING FUNDS FROM ANY FORMAL FINANCIAL INVESTORS LIKE PE FUNDS OR FROM INFORMAL INVESTORS LIKE HOW MANY PEERS AND RETAILERS HAVE DONE."

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An Empire Precious as Gold, Transparent Like Diamonds

The Founder and Chairman of Joyalukkas Group, repeats the warning to us twice more as such dividers seem to spring up suddenly in a busy and poorly lit stretch of the highway from Thrissur to Kozhikode. He should know as since the last few years, his India headquarters as well as residence has been in Thrissur, his home town, and this is a route that he travels twice or thrice a day. That is, when he could be in India, and when he could be in this headquarter city of one of the largest jewellery chains based in India and Middle East. Yes, he is a globe trotter like none other, as Joyalukkas has 161 jewellery showrooms across 11 countries. He is an avid India traveller too as 89 of his showrooms are spread across India, mainly in its metro and large cities. And seeing the way this billionaire businessman gives driving tips, his management style is evident – diligent and hands-on – that makes him visit his showrooms across the globe at least once in a year. Earlier, during the first part of this interview at his corporate headquarters, a call had come from his manager at Houston, Texas, and we could hear Joy Alukkas enquiring about the winter there, whether it is fit for a visit now. Houston is one of the three US cities where Joyalukkas has showrooms, the other two being Chicago and New Jersey. Perhaps it is seeing the ordered traffic systems at US, UK, Singapore, Malaysia, UAE and elsewhere in the Middle East, where he has showrooms, that is prompting him to be diligent about the unruly Indian traffic and poor safety measures. By the time he saw the third divider SEASONAL MAGAZINE

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without a reflective indicator, he has dropped off from our ongoing conversation about the Group’s financials, and is busy making a call to one of his executives. And despite his seeming frustration at the situation, he calmly notifies him that the reflective signs have again been hit by vehicles and fallen off and that he has to make new reflective boards and place it in those locations. Catching our obvious surprised looks, Joy explains, “The signboards placed by the authorities fell off long back, and replacements will take time if at all they come, so what I do is I get similar signboards done on our own and place them at such locations, again and again when the existing ones get damaged by vehicles or weather.” The time was past 7 PM, and the executive at the other end is explaining that it would be difficult to get the new boards done now. But Joy rarely takes no for an answer, and encourages the executive to find a new vendor who works late, get the boards done immediately and get it fixed that night itself! “You can get it done with a few phone calls,” he assures his executive before hanging up. “It is a long route leading up to Kozhikode, Kannur and even interstate to Karnataka, and unfamiliar drivers or even entire families would get killed, if we don’t act,” says Joy explaining his pushiness over the affair. After reaching home, Joy orders drinks and food for us and takes us on a guided tour of the mansion, as this is the first time we are visiting him at home and because the house has already become a buzzing subject among home lovers across India and abroad. When we sat down to resume our interview, Joy Alukkas excused himself for a few moments, summoned another executive who is living there, to enquire about a free home the Joyalukkas Foundation, their CSR arm, is building for a flood victim in Thrissur. Branded as Joy Homes, this is in fact one of the largest such private philanthropic initiatives from any super-rich individual

in India. Following the massive floods in their home state of Kerala, Joy Alukkas started Joy Homes, this initiative to freely build 250 homes to flood victims at a cost of Rs. 15 crores. These homes are spread across 8 worst affected districts of Kerala. He is indeed a billionaire with a heart of gold. He with wife Jolly have been heading the Foundation that extends help for the welfare of the

T “

ake care, lots of accidents happen in this route, when these lane dividers start suddenly and there are no reflective signboards signalling their beginning,” says Joy Alukkas to us as we drive with him from his corporate headquarters in Mission Quarters to his sprawling mansion in Sobha City, both in Thrissur.

IN 2000, WHEN I EXPANDED TO INDIA, MOST LARGE JEWELLERS HERE BELIEVED IN JUST ONE MEGA STORE CONCEPT IN THEIR HOME TOWN, WITH THE DESIGNATED CHAIR FOR THE JEWELLERY FOUNDER BEING BEHIND THE CASH COUNTER.

"JOYALUKKAS SHOWROOMS SHOULD BE TIGER CUBS GROWING INTO TIGERS, AND NOT STRAY PUPPIES WHO GET KILLED BY VARIOUS DANGERS." poor and downtrodden. He asks for detailed answers from the executive who is overseeing this specific ongoing home project of one of the selected flood victims. No one should expect Joy to leave one stone unturned in his quest for effectiveness and efficiency. The company recently did a novel experiment of reducing the coldness of air-conditioners used in all its showrooms by just four degrees, and it

resulted in savings to the tune of Rs. 32 lakhs in their electricity bill! The mansion already produces electricity from solar panels, and Joy’s latest plan for the home is to convert the entire topmost floor for solar power generation and sell excess power to the public grid. But he is a tad disappointed that his home state of Kerala is yet to recognize the depth of his achievements. Within the last 32 years, he has grown

Joyalukkas into a 161 showroon chain across 11 countries, with 89 of them in India. The Group’s last year’s turnover was Rs. 13,000 crores with Rs. 8100 crore from India. This year, Joyalukkas will be doing in excess of Rs. 14,500 crores, says Joy. His focus on things he attempts is relentless. Even amidst answering in detail our various queries on the group’s financials, he remembers to

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An Empire Precious as Gold, Transparent Like Diamonds call up the executive entrusted with making and fixing the reflective signboards on both ends of dividers. With such focus, it is difficult for the Joyalukkas organization to see anything but good times.

SEASONAL MAGAZINE IN CONVERSATION WITH JOY ALUKKAS, FOUNDER AND CHAIRMAN, JOYALUKKAS GROUP. What are your expansion plans for the next two years? We want to consolidate our operations. Rather than keeping on opening new showrooms, we will be strengthening our existing showrooms. This is because it is very important for the showrooms to grow from strength to strength, on their own. I see a lot of showrooms in this sector, across India, which are very feeble. I am particular that none of Joyalukkas showrooms should be like that. They should be tiger cubs growing into tigers, and not stray puppies who get killed by various dangers. In other words, it would be quality over quantity, during the next two years. But will your growth get affected by it? Not at all. That is a wrong thinking in the market. If opening maximum shops, year after year, is the main engine for growth, we wouldn’t be the growth leader we are today. It would have been someone else. Same store growth is very important. Leadership in each city and

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each major suburb is important. For example, we were the first Kerala based jeweller to set shop in Coimbatore. Today, there are no major jeweller in Kerala and South India that doesn’t have a presence there. We have stayed ahead of the game there with three showrooms now, which were all well-calculated forays by assessing the demand in key suburbs there. As a retail entrepreneur in the jewellery sector you have several innovations to your credit. Can you detail some of those? When I came back to India in 2000 to start my first showroom here, after establishing the business well in UAE from 1987 onwards, jewellery retailing was not well organized or professionally managed, and in a very primitive state. Most large jewellers believed in just one mega store concept in their home town. And the designated chair for the jewellery founder was behind the cash counter. It was I who showed that both these were primitive. From day one, our focus was on setting up a chain of Joyalukkas stores, and we proved that the founder and the top management should be managing it not from behind the cash counter, but from a separate corporate office. We were also the first jeweller to professionally create and manage ads across all media so that each of our shops can leverage our ads. Within years, all these have become

norms in the industry. There have been several more of such innovations from Joyalukkas. It goes on. One of the striking elements while walking into any of your showrooms is the young workforce. Has this been a conscious decision always? Yes, very much. I am the oldest guy around here! And we have a few top level managers in my age group. Other than that, the majority of our workforce, especially our sales force is in their 30s. I would say around 98% of our employees are in this age group. We recruit people young, while in their early 20s, and train them uniformly, as we want their best performance here. Today, this age advantage is helping Joyalukkas deliver unparalleled, uniform and courteous services in all our showrooms across the world. Your profit growth has been keeping pace with your topline growth, or performing even better in recent years, showing margin expansion, especially in India. What have been the levers you were pulling for this, and is there scope for margin expansion in the future? Yes, definitely our EBITDA and PAT margins have been growing during the past several years, and I expect it to continue. I will explain why. There are two factors to this improvement. One is the increase in the product margins and the other is the reduction in operational expenses. The product margins are increasing mainly on a better product mix, driven by more diamond jewellery in the mix. As you know diamond jewellery has better margins vis-à-vis gold jewellery. This trend is primarily a market phenomenon showing the maturing of the Indian market, which better reflects such global trends now. With our high focus on diamond jewellery for several years now, with the trendiest of designs, we have been able to capitalize well on this trend. And this trend itself will continue as India is still a market dominated by gold-only

jewellery, thereby offering a huge growth opportunity for diamond jewellery, and steadily improving product margins for us. What are the levers you have been applying for reducing operational expenses? That is even more interesting to share with you. While Joyalukkas has always been careful on containing operating expenses, it is only during the last few years that we came to realize that much more could be done on this front. I will share with you two quick examples. One is that just by adjusting the temperature of our showroom airconditioners, from 18 degrees to 22 degrees, we have saved around Rs. 32 lakhs in annual electricity charges! Another one is that we have been using three security personnel per showroom. But with the deployment of latest security technologies across our showrooms, three security personnel at each showroom were found to be redundant, and we reduced it to two, which resulted in significant savings. There is no end to such things that we can do, if we apply careful analysis and thought. This has now become a passion across the organization and every day we are discovering and considering new approaches to trim operating expenses, and hence I am hopeful of continued reduction in operational expenses.

AROUND 98% OF OUR STAFF IS IN THEIR 30s AND THIS AGE ADVANTAGE IS HELPING JOYALUKKAS DELIVER UNPARALLELED, UNIFORM AND COURTEOUS SERVICES IN ALL OUR SHOWROOMS ACROSS THE WORLD."

Are you seeking investments into Joyalukkas from private equity funds or through an IPO, for pursuing enhanced growth? I think the very notion that investments can make a business grow, especially in the jewellery sector, is flawed. If that were the case, we have had jewellers who were in high momentum, then received private equity, but then saw deceleration in growth. In contrast, we have not opted for any such funds, but have still outperformed such PE backed players in the same period. One hundred percentage of our equity is still with us, me and family, with some minor stakes held by a few of our directors. So growth is decided by other factors like vision, strategy and ultimately the value provided to customers. Fund infusion into the company makes sense only if it is deployed efficiently as per such vision, strategies and customer value. Having said that, I do agree that PE funds and public listing do have their advantages, which has more to do with better visibility in the corporate and investment world. One thing I am very particular is that if I am accepting investors to come on board, whether it is through private equity placement or IPO, they will have a guidance about what they can expect, like say 10% growth. I donâ&#x20AC;&#x2122;t want unsatisfied investors who crib that we have underperformed with their expectations, and neither will I accept pressure from investors to do business in a certain way to boost growth or profits, so as to jack up valuations. I have also made it clear to PE funds approaching us that we will not accept any deadline regarding IPOs, whether it is short or long. I have absolutely no need or intention to make money by getting the company listed somehow at high valuations, and then let the retail investors suffer when market turns.

Some PE funds have been suggesting me to sell a portion of my own stake to them to raise funds for myself and family, but I absolutely have no use of such large funds. So, can retail investors expect an IPO from Joyalukkas in the near future? An IPO is definitely in our consideration, but apart from that I cannot comment on when it will happen. There are multiple options before us like going for PE funding first and then IPO, or go directly to IPO, or even remain as a major unlisted player for now. Whatever we choose, it will be based on the best interests of the Joyalukkas organization, so that its growth momentum is only enhanced and not affected adversely. When you consider taking in investments, will it be for your Indian company alone or for both your Indian and UAE based global operations? My original plan was to take an investor on board for the UAE based global operations alone, but most funds that approached us have evinced interest in investing in the Indian company too. That is because our Indian operations have better margins as well as better growth. We are open to the idea, in case we are taking in investments. You have diversified interests apart from jewellery retailing. What is your strategy with regard to diversification? SEASONAL MAGAZINE

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We have had diversifications that clicked well, and those which did not work out as much as we expected. Our best diversifications have been Joyalukkas Exchange which is a global money exchange company, and Jolly Silks, our garment retailing chain. My take on diversification is that an entrepreneur should stick to his or her core competence when considering diversifications. If a proposed diversification will benefit from your core competence, well and good, but otherwise I think it is a bad idea. This is because, there are always better and emerging avenues for growth in our core business, where we have an edge due to our high competence in that.

Yes, definitely. Online sales or ecommerce in the jewellery sector has been picking up fast. In as much as jewellery and diamonds were not thought of as great fits for e-commerce, companies including Amazon, Flipkart, Joyalukkas and several others are proving that not only can this be done with full features like returns, but that it can be a scalable business. Our online sales is growing steadily and reaching Rs. 500 crores per year now. We sell on our own platform as well as through large players like Amazon. There are several challenges, like in-camera packing and logistics, but such things are being done smoothly today, resulting in customer delight. Another growth avenue for Joyalukkas has been the B2B segment. This is mainly in the large metro cities of India, where we sell gift cards, coupons, and discount vouchers directly to corporate companies which use them as incentive or bonus during the festive seasons. You have been a noted philanthropist too, with your Foundation’s projects standing out for their uniqueness. Can you explain what drives your philanthropy? Joyalukkas Foundation that handles our CSR activities has been born from our belief that the people and the community within which we operate are SEASONAL MAGAZINE

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Can you mention such emerging avenues in your core jewellery retailing business?

JUST BY ADJUSTING THE TEMPERATURE OF OUR SHOWROOM AIR-CONDITIONERS, FROM 18 DEGREES TO 22 DEGREES, WE HAVE SAVED AROUND RS. 32 LAKHS IN ELECTRICITY CHARGES.

the cornerstones for our success. The Foundation has made its mark in highly demanding avenues including building homes for flood victims, medical treatment assistance, providing needy expats in Middle East with financial assistance to return home, and around 20 such needs of the common man. My wife Jolly is a Trustee of the Foundation and takes active interest in its activities. We formally started off with the unique ‘My 0.50’ scheme, by which all employees contribute a small daily sum, which is matched at the month end by the management with an equal amount. Ever since it started in 2007, it has grown from strength to strength, helping thousands of needy people in their times of distress, in a perfectly transparent way as it is driven by a software. Following

the massive floods in our home state of Kerala, the Foundation started Joy Homes, an initiative to build 250 homes to flood victims at a cost of Rs. 15 crores. These homes span 10 districts of Kerala, and our website carries the details of all ongoing home projects under this scheme. What do you consider as your biggest achievement in your business career? Are you satisfied with where the group is now? Well, there are a few such achievements. First is that I have led this growth single-handedly and without attracting funds from any formal financial investors like PE funds or from informal investors like how many peers and retailers have done. I think many people, especially in Kerala, miss this unique point about the Joyalukkas organization. Within the last 32 years, Joyalukkas has grown into a 161 showrron chain across 11 countries, with 89 of them in India. Our last year’s turnover was Rs. 13,000 crores with Rs. 8100 crore of it from India. This year, we will be doing in excess of Rs. 14,500 crores. Few retail entrepreneurs in Kerala have such an achievement to speak about within three decades. But in North India, my achievements are better appreciated by the business community.