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Lending and borrowing money is now India’s fastest-growing segment, and the successful industry and lenders are the latest darlings of equity investors. The share of banks and non-banking finance companies (NBFCs) in the market capitalisation (market cap, or m-cap) of all listed companies is now at an all-time high, as manufacturing companies and non-financial services such as information technology (IT) battle demand slowdown.  Banks and NBFCs, including insurance companies, now account for 22.3 per cent of the combined m-cap — the highest in at least two ...


Source: Business Standard

Union minister R K Singh today said that the Centre proposes to make India the number one country in both generation and consumption of power but set no time-frame to achieve the goal.


"We are the third largest country in the world vis-a-vis power generation but we are the fourth largest in power consumption. We have to achieve the goal of becoming number one country in power generation and consumption," Singh, MoS for Power (Independent charge), told reporters here.


Singh, who is also a first-time Lok Sabha member from Ara, however, did not set any time-frame to achieve the goal.


"Consumption (of power) is an index of development," he said while making it clear that more power consumption shows that people are using more and more electronic gadgets and equipment.


Pegging India's power generation at 3.3 lakh Mw, Singh said that out of this, 70,000 Mw is generated through renewable energy which the government intends to increase to 1.75 lakh Mw.


Singh, a former union home secretary, was felicitated at the BJP's state unit headquarters here after being made a union minister in the recent reshuffle of the Modi government.


He was accompanied by Bihar BJP chief Nityanand Rai, senior party leaders Nagendra jee, Ganga Prasad, Devesh Kumar and MLAs Gyanendra Singh Gyanu, Nitin Navin, Niraj Singh and others during the press meet.


Lauding the Bihar government for doing good work in the power sector, the minister said Bihar has done better than other states in carrying out rural electrification and asked officials to further expedite the works going on various projects in the state.


The government has also set a target of providing "24X7 power supply" with "no power cut" regime, Singh said while making it clear that this goal is not only confined to Bihar alone but for the entire country.


The government has already set a target of carrying out rural electrification by the end of this December, he said while asking all the states to submit the list of those villages which have been left out of the rural electrification work as the government is committed to complete electrification of these villages by the end of March 2018.


The Centre has provided various funds for carrying out strengthening of the distribution network in Bihar, he said adding the work on various projects and schemes worth Rs 20,000 crore is already underway in the power sector.


To check power pilferage, he advocated installation of "pre-paid meters" that would do away with the problems of meter reading, distributing energy bills and revenue collection.


"The collection has gone up with the installation of pre-paid meters as some states have adopted it and the Bihar government should also go for it," he added.


Asked about the fate of 130 Mw Dagmara hydel power project which is located in this area (Supaul), Singh said that the hydel project is not viable due to high capital cost.


Singh hails from Supaul district of Bihar.


Source: Business Standard

Three Indians have been included into the list of 100 greatest living business minds released by Forbes. Ratan Tata, Chairman Emeritus of the salt-to-software conglomerate; Lakshmi Mittal, CEO and Chairman of world’s largest steel producer, Arcelor Mittal; and Vinod Khosla, the founder of VC firm Khosla Ventures have featured in ‘the greatest ever collection of business essayists and greatest ever portrait portfolio in business history’.


Apart from these three, the list includes names like Jeff Bezos, Mark Zuckerberg, Warren Buffett, Bill Gates, Muhammad Yunus, Donald Trump and Masayoshi Son.


Ratan Tata: He is the Chairman Emeritus of Tata group under whose leadership, the revenue of the group touched USD 100 billion in 2011-12. An alumni of Cornell University and Harvard Business School, he is a recipient of the second highest civilian awards of India—Padma Vibhushan.Vinod Khosla: The India-born American businessman and engineer was the co-founder of Sun Microsystem which is credited to develop Java programming language. The company was later acquired by Oracle in 2010. His venture has invested in companies like Academia.edu, BioConsortia, Checkr among others.


His message: I explicitly don't build or guard my reputation. I believe in telling it like it is and not worrying about it.


Net worth: USD 1.82 Billion (Source: Forbes, as on September 20)


Lakhsmi Mittal: The Indian steel baron is the second richest Indian in the world after Mukesh Ambani. Under his guidance, ArcelorMittal waded through tumultuous times and registered a profit of 1.8 billion at a time when the world was dealing with steel over-production. This was the first time the company posted a profit since 2011. The company had lost USD 7.9 billion in 2015.


His message: Every industry today has to fight complacency, prepare to see the disruption coming and then be flexible enough to adapt swiftly


Net worth: USD 16.5 Billion (Source: Forbes, as on September 20)


Source: Money control

India is likely to overtake Japan and Germany to become the third largest economy in the next 10 years but needs to be consistent in reforms and focus more on the social sector, British brokerage HSBC has said.


Social capital is "insufficient" in the country and spending on aspects like health and education "is not just desirable for its (India's) own sake, but is also central to economic growth and political stability", it said.


India also needs a lot of focus on ease of doing business and related aspects like contract enforcements.


"In over the next ten years, India will likely surpass Germany and Japan to become the world’s third largest economy in nominal USD and the transition will happen even more quickly on a PPP (purchasing power parity) basis," its economists said in a note.


Demographics and macro stability were pointed out as key strengths for the country by the brokerage.


Its estimates show India will be a USD 7 trillion economy in 2028, as compared to less than USD 6 trillion and USD 5 trillion for Germany and Japan, respectively.


Presently, India's GDP is around USD 2.3 trillion (fiscal 2016-17). It stands at the fifth spot in global rankings.


The brokerage said the growth rate, which will be lower in FY18 as compared to the year-ago's 7.1 per cent due to the introduction of Goods and Services Tax (GST), will recover from next year in a sustainable fashion.


It also made a case against "stray reforms", terming them as "harmful".


"There are limits to one-off reforms. India needs to create an ecosystem of continuous change," it said.


Citing the case of GST, it said the informal enterprises that create a bulk of jobs in the country may respond to higher taxation by shutting shop or laying off workmen.


With concerns being raised about jobless growth, it said the e-commerce sector will create 12 million jobs over the next decade, which is half of the 24 million shortfall.


Another avenue of job creation can be the social sector, where a lot of work needs to be done on health and education fronts, it said.


India will continue to be a services oriented economy but needs to pay extra attention on manufacturing and farm sectors as well, it said, adding that it would be desirable to maintain the contribution of manufacturing, agriculture and services at the current levels.


The Indian story will be different from the export- oriented one of China's, it said, pointing out that domestic consumption with over 550 million consumers will be the standout factor.


Apart from services, other hallmarks of the India story over the next decade will be higher investment and capital goods flows as its focus on manufacturing increases, Indian consumers forcing foreign brands to turn 'glocal' and a two- way human capital footprint that will see many skilled people travelling overseas, it said.


"It (India) needs to broaden its specialisation (beyond just IT in business and cricket in sports) if it wants to run harder and fly higher," it said.


Source: Money control

MUMBAI: As it expects the volume turnaround momentum to continue in India, The Coca-Cola Company wants the country to be "the no. 3 market" in the future from the present sixth slot


Describing India as "a great country and a great place to do business", Coca-Cola president and chief executive James Quincey on Thursday said the recent blip in sales are behind them and that he is looking to build the fundamentals stronger to make India's business much bigger


"Over the last few decades, we've been investing in India, creating lots of jobs and lots of business and it has become the sixth largest market in the Coke system


"The most immediate challenge for KK (T Krishnakumar, president of Coca-Cola India & Southwest Asia) is to become no. 5 in the foreseeable future, but in the end, my vision for India is it will be one of the top three markets in the world for Coca-Cola," Quincey told a select group of reporters


Quincey, who was elevated as the CEO of the Atlanta- based cola major in May, also said India is a great country with many opportunities and a great future and Coke wants to build a good business here and without quantifying the amount, committed to investment more than USD 5 billion by 2020 as announced earlier


"India is going to return to vibrant growth...India can be a very successful place to build the business. The ideal is let's get from six to five on the way to being no 3 is the mandate," he said


He parried a question on how much of the said investment have already been made, saying, "We continue with our investment plan through 2020. We'll keep making more investments. We want to be consistently investing.


Admitting that sales had fallen in the last quarter of 2016 and in the first quarter of 2017, he said things have started to turn around


"No business can grow in a perfect straight line. We've had a rough few months at the end of last year and at the beginning of this year but things are starting to turn around and come back. We are still very positive," he said


Though he promised to reduce the sugar content in their products -- an issue that has been gaining currency across the world on health grounds -- Quincey did not offer a timeline to do so, but said, faster growth in India will also come from non-carbonated (non-sparkling) drinks, as elsewhere


When asked about when will the company have a 50:50 product and revenue share globally, he parried a direct answer but said it took almost 15 year to reach 70 per cent from 90 per cent so, and it could be 2025 or 2030


He was, however, quick to add that sparkling drinks will continue to grow here and will remain the focus in the immediate future


Quincey also said the company is open to inorganic growth opportunities as in the past, Coke had bought out the local brand - ThumsUp which still continues to be the volume driver here.The company will be investing more in the non-sparkling segment to expand the portfolio


"If you went back 10-15 years, the business was still 90 per cent sparkling globally which now is under 70 per cent. We see an opportunity to not just continue but accelerate the broadening of the portfolio yet during that time sparkling continued to grow.But he was quick to add, "Over the next five years the revenue we get from sparkling in India will grow and yet the total revenue will grow faster than sparkling. Over time we'll get more and more of the other categories contributing to the revenue


"Today, we are still a majority sparkling business in India but are beginning to expand the portfolio very assertively and grow that business out into the other categories. ThumsUp and Coke will continue to grow but the total business will grow faster," he said.


Source: Times of India