AAPI: September 2022

DELHI, 20th SEPTEMBER 2022

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. Indian single malts are having their moment in the sun
22. Celebrating Madras, a City that Led the Way for Indian Food
23. In-transit cold treatment accepted by Indian authorities for South African apples and pears
24.1. IIT offshore campuses may be named India International Institute of Technology
24.2. ‘It’s not India’s Decade, It’s India’s Century’
25. The Man Who Tried To Free Countries

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DELHI, 20th SEPTEMBER 2022

NEWSLETTER, 20-IX-2022

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

Big push to education infrastructure: Karnataka govt to build 8000 classrooms in Mysuru district

ET Gov. 17 Aug. 2022

The Mysuru-Bengaluru Expressway is likely to be completed by the year-end, bringing an end to traffic woes on the national highway.

Karnataka's Mysuru district minister ST Somashekar, who handles co-operation portfolio, on Monday announced that the government is focussing on improving education infrastructure.

As a first step, classrooms are being constructed, he said after unfurling the national flag during the Independence Day celebration at BanniMantap grounds. About 8,000 classrooms are being built under Viveka Scheme in Mysuru district, he added.

The minister also spoke on various government schemes meant for farmers, students and the general public. Somashekar highlighted the reintroduction of a state insurance scheme for farmers (Yashaswini). The scheme is likely to be introduced on October 2, and guidelines are being prepared for the same. Of the Rs 300 crore reserved for the purpose, Rs 100 crore has been released, he claimed.

The Mysuru-Bengaluru Expressway is likely to be completed by the year-end, bringing an end to traffic woes on the national highway. Under Swachh Bharat Scheme, about 2.49 lakh families have got restroom facilities, while solid waste is being collected in more than 60 percent GPs.

Chamundi Hills Road, which had collapsed due to landslides following rain in 2021, is being restored with the assistance of IISc, and Rs 9.75 crore is being spent for its restoration. About 1,760 houses were damaged in the recent rain, and the government has paid compensation to the tune of Rs 14.36 crore.

So far, 59 lakh Covid doses have been administered in the district, and all beneficiaries aged 18 and above are vaccinated, he claimed.

Earlier, police, schoolchildren, and NCC cadets marched-past the chief guest, Somashekar. KSRP II platoon was adjudged “first best” in the parade in the armed category. The attraction was the participation of 12 special school children who too paraded.

For the first time, the parade command was given in Kannada by parade commander KN Suresh, DSP attached to KARP Mounted Company. Hitherto, the command was given in English. A senior officer of Mounted Company said for eight months, the command was being given in Kannada. Today’s was the first at the Independence Day parade.

1.2. IIT-Bombay first national institution to award 400+ PhDs in a year

ET Gov. 23 Aug, 2022

A total of 2,551 degrees were awarded to 2,324 students at its 60th convocation on Saturday.

The Indian Institute of Technology, Bombay, has earned the distinction of being the first national institution to graduate more than 400 PhDs at its 60th convocation on Saturday. In a first, the Powai college awarded 449 PhD degrees this year, up from 378 last year and 301 in 2019. The PhD students’ strength has also increased in the last 10 years. From 1,895 PhD candidates in 2011-12, the number touched 3,534 in 2020-21, and the current count is about 3,727.

“It is worth noting here that this is the first time that any Indian academic institute has produced more than 400 PhD graduates in a year — a major milestone for STEM (Science, Technology Engineering, and Mathematics) education in India. A significant fraction is in the engineering discipline,” said institute director Subhasis Chaudhuri at the convocation ceremony. A total of 2,551 degrees were awarded to 2,324 students. In the past two years, convocation was held in virtual reality mode; Saturday’s ceremony was the first physical one since then.

In 2021-22, IIT-Bombay received external funding of Rs 329 crore for research and development. While the number of sanctioned projects reduced marginally, the financial outlay has increased.

That apart, applications filed for intellectual property also dropped to 189 compared to 264 a year ago. Presenting the institute’s report for 2021-22, the director said, “Saturday’s graduating batch is possibly the most ‘hardened’ batch that IIT-Bombay has ever produced. Students have experienced remarkable stoicism in all three phases of campus: pre-Covid ambience, extreme hardship due to pandemic, and then the post-pandemic opportune moments that the campus provides. The training that our students receive will definitely see them taking up leadership roles.”

Chairman of the Aditya Birla Group, Kumar Mangalam Birla, who was the chief guest, peppered his speech with IIT-B jargons, some humour and inspiration. To the class of 2022, he said, “To thrive in this world, I believe you must operate at the intersection of purpose, people, and machines (PPM). I urge you to think of PPM not as parts per million but as purpose, people and machines. All of you have proven yourself as great graduates. Now you need to reinforce and retain human empathy. Find every unique opportunity to reinforce humanness. A beautiful mind needs one more thing: a big heart.”

This year, four students were presented with the gold medals for their exemplary performance.

2. ‘Need 7% Growth for 25 Yrs to be Upper Mid-income Nation’

ET, 31 Aug. 2022

India can become an upper middle-income country by 2047 if it manages a sustained growth rate of 7-7.5% for the next 25 years, Economic Advisory Council to Prime Minister (EAC-PM) chairman Bibek Debroy said Tuesday.

The country can become a $20 trillion economy by 2047 at this growth rate, he added.

"Even if you have relatively conservative real rates of growth of 7-7.5%, we will get to a per capita income of about $10,000… And you will get to a total size of the economy of a little less than $20 trillion in 2047," Debroy said while releasing 'The Competitiveness Roadmap for India@100'.

Prime Minister Narendra Modi has set an ambitious target of making India a developed nation by 2047. "Which means India will be in the upper middle-income category, not a higher-income category," Debroy said, adding that it also means that the nature of Indian society will be completely transformed.

According to the World Bank's definition, a country with a per capita annual income of over $12,000 is considered a higher-income nation.

Noting that because what happens to India is an aggregate of what happens to the states, Debroy said, "And unless the states jack up their growth records, the overall growth record for India is not going to be that high either".

According to the International Monetary Fund, the economy is forecast to expand by 7.4% in 2022-23, making India one of the world's fastest growing.

3.1. Delhi government fast tracks beautification of Tikri Border entry gate, to complete in 10 months

ET Gov. 19 Aug. 2022

The project involves construction of a huge entry gate at 12 border points and beautifying around 200 metres of roads leading to the city from these border points.

The Delhi government has fast-tracked its project to beautify Tikri Kalan border entry point and construct a huge gate there with the tourism department setting a deadline of 10 months from now to complete the work.

According to officials of Delhi Tourism and Transportation Development Corporation (DTTDC), the aim of the project is to showcase Delhi's heritage and beauty in a way that people can witness the glory of the city whenever they enter the national capital.

The beautification of the road stretches will include depiction of Delhi's history, cultural heritage, and its evolution over the years. They said that bids for awarding the work will be floated soon and the entire work will be over in 10 months.

"We are about to float tenders for the construction of Tikri Border gate and beautify the stretch at the border entry point. We are hoping to start the construction work within two months at the site. It will take nearly 10 months to complete the entire work at Tikri border," a senior DTTDC official said.

Historic events such as Dandi March, monuments like Rashtrapati Bhavan, India Gate and other popular tourist hotspots will be showcased through sculptures along the stretch at Tikri border.

LED screens displaying temperature and pollution will be installed along the road. Sculptures with decorative plants and natural greenery will also be installed near the entry gate to make it aesthetically appealing, the official said.

The project involves construction of a huge entry gate at 12 border points and beautifying around 200 metres of roads leading to the city from these border points.

Officials said that in the first phase only five border points - Tikri Kalan border, Anand Vihar, Apsara border, Kapashera border, and Ghazipur border - will be beautified.

The official said that the Delhi Urban Arts Commission (DUAC) has given its nod to construct an entry gate at Tikri Border - one of the entry points from Haryana to Delhi - and beautify a 200-metre stretch there depicting Delhi's cultural heritage and history.

The DUAC approval for the other four locations is yet to be done, the official said. The project to erect entry gates and provide aesthetic delight to commuters entering Delhi was conceptualised in December 2018 by the tourism department and later announced in the 2018-19 budget by the government.

A concept plan for the beautification of entry points and creation of entry gates was prepared by DTTDC but it was delayed in the want of approval from the DUAC and the coronavirus pandemic.

3.2. Kerala first to launch government online taxi service; ‘Kerala Savari’ to ensure fair fares, safe travel

ET Gov. 19 Aug. 2022

Unlike other online platforms, there will be no fluctuation in fares on Kerala Savari.

Kerala Chief Minister Pinarayi Vijayan on Wednesday inaugurated ‘Kerala Savari', the country's first online taxi service owned by a state government. Kerala Savari ensures fair and decent service to passengers and fair remuneration to auto taxi workers, the Chief Minister said while launching the online taxi service.

This service is started by the Motor Workers Welfare Board under the leadership of the Labour Department. Kerala Savari ensures safe travel for the public at government-approved fares, a release said.

Unlike other online platforms, there will be no fluctuation in fares on Kerala Savari. The situation now during peak hours is that other online taxi companies increase the charges for services by up to one and a half times.

Neither passengers nor workers benefit from it. Kerala Savari only charges an 8 percent service charge in addition to the rate set by the government. In other online taxis, it is 20 to 30 per cent. It has been decided to use the amount received as a service charge for the implementation of this scheme and for providing promotional incentives to passengers and drivers. One of the major issues that arise with online taxi services is security. Kerala Savari is a safe and reliable online service for women, children and senior citizens.

This consideration has been given importance in app design and driver registration. A police clearance certificate is mandatory for drivers joining the scheme. Proper training is also Provided. A panic button system has been introduced in the app. This button can be pressed in the event of a car accident or in any other event of danger.

One can do it completely privately. If the driver presses the panic button the passenger will not be alarmed, or if the passenger does the same, the driver will not realize this. When one presses the button, there is an option to select Police, Fire Force and Motor Vehicle Department options. "If you are in such a dangerous situation that you cannot select any option, press the button and you will be directly connected to the police control room," the note said.

It has also been decided to install GPS on vehicles at a subsidized rate. This will be implemented in a phased manner. A 24-hour call centre has been prepared for this purpose. A state-of-the-art call centre is functioning at the District Office of the Motor Workers Welfare Board. The call centre works in such a way that all service-related issues can be resolved immediately. The first phase of the project is implemented in Thiruvananthapuram city.

The project will be implemented in the entire state in a flawless manner, after evaluating the first phase. Kerala Savari will also reach Kollam, Ernakulam, Thrissur, Kozhikode and Kannur municipal limits within a month.

4.1. Wind energy has huge potential in India, to cost less by 2026: GWEC

IBEF, Aug. 31, 2022

According to the Global Wind Energy Council, which has produced a study titled "India Wind Energy Market Outlook 2022-2026," wind energy has enormous potential in India, with its cost of generation being 40% lower than that of conventional sources of power. According to the study, the levelised cost of energy (LCOE), or the net current cost of generation for a generator throughout its lifespan, for wind is estimated to be Rs 2.8 (US$ 0.035)-Rs. 3.3 (US$ 0.041)/Kwh.

Wind turbine prices have risen as a result of rising global shipping costs and the recent increase in goods and services tax. In addition, a shift from solo wind to wind-solar hybrids is planned during the next five years (WSHs). According to the report, the central and state governments' renewable purchase obligations (RPO) are the primary driver of future installations. The Ministry of Power has outlined a strategy for procuring renewable energy, which will account for 43.33% of power purchased by discoms by 2029-30.

Wind power is expected to account for 33.01% of total energy consumption by 2025-26. Given this pattern, India is forecast to add roughly 19.4 Gw of wind capacity, with central tenders accounting for 76% of the total, followed by state utility markets, and finally commercial and industrial segments.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

4.2. ITC Hotels Plans to Launch Over 20 Properties in 2 Yrs

ET, 13 Sep. 2022

ITC is exploring “all options” and discussing “alternate” structures for the demerger plan of its hotel business, Anil Chadha, divisional chief executive at ITC Hotels, has said. “Work is ongoing on this front,” Chadha told ET in an interview.

ITC is exploring “all options” and discussing “alternate” structures for the demerger plan of its hotel business, Anil Chadha, divisional chief executive at ITC Hotels, has said.

“Work is ongoing on this front,” Chadha told ET in an interview. “Whenever we have something ready to share with everyone, we will. We have to look at what’s best for all the shareholders.”

He said ITC Hotels is also evaluating its overseas expansion and considering the Middle East market. “We are trying to see how we make an entry there, and with which brand,” he said. “Be it Sharjah, Dubai, or Ras Al Khaimah, the Middle East has got great potential. We have a collection of brands now, and we can provide diversified customer experiences across brands. We will also have to see when things settle down in Sri Lanka.”

ITC Hotels has plans of launching more than 20 hotels in the next two years, he said. The group currently has about 115 properties with a total of over 11,000 keys across brands in India. The chain’s new openings include hotels in Colombo, Corbett, Sirmaur, Udaipur, Raipur, Solan, Kufri, Tirupur, Goa, and Jaipur as more properties get signed in at Dehradun, Ooty and Jabalpur among others.

“For the longest period, we ran our operations with four brands: ITC Hotels, Welcomhotel, Fortune and WelcomHeritage,” Chadha said. “Welcomhotels have had a great run in the last two years, be it the hills or a beach like Mahabalipuram. We have consolidated in the luxury space and WelcomHeritage has been completely refreshed in the last two years. Our Fortune brand has also done really well.”

The company is rolling out new brands.

“The first property of Mementos, our new luxury brand, will come up in Udaipur by the end of this year,” Chadha said. “Post Covid, standalone owners investing in smaller units of 20 or 30 rooms started looking out for established brands to help them and that led to the emergence of Storii, our boutique experiential offering,” he added.

ITC Hotels has signed management contracts for five boutique properties under Storii by ITC Hotels brand in Goa, Dharamshala, Solan, Sirmaur and Kufri. With 57 keys recently opened at Goa and Dharamshala, the brand is set to open another 116 keys across three locations in Himachal Pradesh by the end of 2023.

“A Storii property can be in any unique location — it could be a tea garden, a vineyard, or a beach, but it has to be leisure destinations. It’s a leisure brand that has tremendous potential,” Chadha said. “We think a lot of expansion will happen on this route. We see an opportunity for more experiential luxury and have signed a second Mementos hotel in Jaipur. We hope to sign one Mementos hotel every year.” The entire strategy is to go “asset right”, he said.

“The timing is also right. We have had a wonderful first quarter (April-June) in terms of our performance,” Chadha said.

5.1. Centre for corporate exits being set up

Mint, 22 Aug 2022, Gireesh Chandra Prasad

NEW DELHI: The government is set to create a national centre for quick, faceless decision-making on requests from companies for winding up operations as part of efforts to improve the overall regulatory framework.

The ministry of corporate affairs is setting up the national centre for accelerated corporate exit, which will be backed by an IT infrastructure for decision-making at the national level without discretion by individual field officers, said a person familiar with the discussions in the government.

Once set up, businesses downing shutters need not go to the Registrars of Companies (RoCs) —but only file an online request showing they have no liabilities or have enough assets to match or exceed liabilities.

The government believes that ease of exit for businesses that have either failed to take off or want to close operations for various economic reasons will be a key consideration that investors will take into account while making investment decisions.

“Some companies with no liabilities may want to move on. Ease of doing business entails not only ease of entry and of doing business but also of ease of exit," said the person who spoke on condition of anonymity.

“The effort is to reduce voluntary closure time from about one to two years to less than six months. That is the time needed to follow some statutory timelines for getting response to communications and to analyse replies. We have to see if anyone has any objections and if assets will meet liabilities," said the person quoted above.

“Voluntary closure of companies is a routine procedure, where if all requirements are met, it should not take a long time. A system for transparent and expeditious processing of applications will be helpful," said Pavan Kumar Vijay, founder of consulting firm Corporate Professionals.

The proposed national centre will assign requests from businesses across the country randomly to various officers. It will no longer be the RoC in a particular region where the company is incorporated that will handle such requests. This is expected to reduce human discretion and could also help in preventing any irregularity in winding up of companies, the person said.

“The new system of voluntary closure will streamline the process, ensure predictability of action and reduce the cost of issuing advertisements regarding such closure of business as it will be done at the national level," added the person quoted above.

Voluntary closure of companies is different from winding up of companies by the government for default on filing annual reports for two consecutive years. In such cases of removal of the name of a company from records too, businesses having liabilities are excluded. The idea is that before a legal entity is extinguished, all its liabilities should be met.

Queries emailed to the spokesperson for the ministry on 12 August and on Sunday seeking comments for the story remained unanswered at the time of publishing.

5.2. Three insights to kick-start your day: Jio’s 5G promises

ET, 1 Sep. 2022

Today’s Primeshots has Jio’s mega 5G announcement. In the news: Jio to launch 5G by Diwali.

Behind the news. ‘TRUE 5G’ was the theme of RIL’s 45th AGM on Monday. With a commitment of INR2 lakh crore investment to build the world’s largest standalone (SA) 5G network, Jio may be signalling the start of the next phase of India’s digital evolution. Multiple use cases across agriculture, healthcare, industrial automation, and education sectors were announced during the AGM.

But Jio AirFiber, the fixed-wireless access or FWA, will be the most interesting one to watch out for along with its regular mobile-broadband adoption. Jio AirFiber promises to offer a fiber-like broadband experience wirelessly. This will help Jio augment its existing fiber network and reach areas where it is difficult to lay fiber. Jio’s announcement to launch the SA 5G architecture from Day One is a big promise. It is something that the competition who plans to launch the NSA (non-standalone) 5G network initially, particularly Bharti Airtel, must take seriously.

One more thing. While NSA 5G is a cost-effective and faster way of deploying a 5G network and it does improve throughput/speed, it’s the SA architecture that truly enables 5G’s key applications that require capabilities such as ultra-low latency, network slicing and massive machine-type communications.

- AGRICULTURE, FISHING & RURAL DEVELOPMENT

6.1. Flipkart US$ 100 million venture fund invests in 6 startups, will mentor them

IBEF, August 22, 2022

The US$ 100 million venture fund of the e-commerce giant, Flipkart Ventures, has announced plans to invest in six startups in the areas of virtual storefronts, robotics automation, and try-on clothing.

After going through several rounds of evaluation, the six startups were chosen for the Flipkart Leap Ahead accelerator programme. Up to US$ 500,000 in equity investment will be given to them.

A 16-week mentorship training programme for startups has been designed by Bain & Company. They will regularly meet with Flipkart leaders with backgrounds in business, product, technology, and finance. On a demo day at the end of the programme, the startups will pitch their concepts to prospective investors and business executives.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

6.2. Flipkart Lines up ₹3.6k crore for 3 Automated Fulfilment Centres

ET, 29 Aug. 2022

The group has already set up one such big box facility in West Bengal at Haringhata which it claims is the largest such facility in Asia. The Manesar centre will be operational in 2024.

Walmart-owned ecommerce major Flipkart is going to invest over ₹3,600 crore in the next three years to set up three new giant automated fulfilment centres. This includes one in Manesar, which is under construction, said Flipkart Group’s senior vice-president and head of supply chain Hemant Badri.

The group has already set up one such big box facility in West Bengal at Haringhata which it claims is the largest such facility in Asia. The Manesar centre will be operational in 2024. Badri said these centres enable two times more storage space per square feet, 30-50% more efficiency with lower capital and operating costs, and helps to reduce shipment times. These facilities will be 18 metres in height as compared to the usual 10-12 metres.

“In the next 2-3 years, we will set up three giant big box automated fulfilment centres: one in Manesar, one in the South for which we are finalising the location, and one in Haringhata since we have land. Each of these facilities will require ₹1,200-1,500 crore investment. In the next 3-5 years, there would be 4-5 such facilities,” said Badri.

He added that the frequency of delivery cycles can be increased from these fulfilment centres. A one-day delivery time can potentially be reduced to half a day, two days can be reduced to one, and four days can be reduced to three.

Talking about the upcoming festive season and Flipkart’s biggest discounting sale, Big Billion Days (BBD), Badri said demand will revive and this year’s sale will be the best ever festive sale. The company is gearing up for it by hiring over 50,000 people for supply chain and last mile, and has scaled up supply chain infrastructure 2.5 times over pre-Covid. There is huge focus on same and next-day deliveries for mobile phones, electronics and other top-selling categories, he said. “All our indicators show that it will be a good festive season. The square feet area of warehouses and fulfilment centres have gone up to 2.5 times since 2019. What has changed is that now we have infrastructure in the tier-II and tier-III towns. This BBD, we will have close to 2.5 lakh people working with us,” said Badri.

7.1. Public Systems Lab at IIT Delhi to conduct research to optimise food supply chains and public transport

ET Gov. 17,Ago, 2022

Union minister Piyush Goyal inaugurates Public Systems Lab at IIT Delhi on Tuesday.

Union Minister for Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textile Piyush Goyal on Tuesday inaugurated the Public Systems Lab at IIT Delhi. The minister said, “The Public Systems Lab can play a vital role in multiple ways. Public food procurement and distribution are crucial programmes in which this innovation can contribute immensely.” The lab is a perfect example of innovation that will contribute towards the development and rid the country of corruption by bringing in efficiency in the public distribution system, he said.

Goyal said the research work being done at the lab will showcase to the world India’s use of technology and innovation for making the public delivery system more efficient and effective.

The PSL will hugely impact citizens, and offer significant benefits for academia and other stakeholders. The lab will use knowledge of Operations Research, AI, Data Science etc to solve critical problems that are vital for improving the lives of crores of people. It will work in the field of food, health, transportation and good governance. The current focus is optimising food supply chains and public transport.

Speaking about the government's thrust on Innovation and use of innovative solutions in making the public delivery system more effective and efficient, Goyal said, “through government initiatives like PMGKAY, India has been a role model for the world in dealing with food security in the wake of the pandemic. Despite the massive pandemic, the government through One Nation, One Ration Card ensured food security for all."

Complimenting IIT Delhi and the World Food Programme for setting up the Public Systems Lab, Goyal said the research work being done will showcase to the world India’s use of technology and innovation for making the public delivery system more efficient and effective.

Calling upon youth to contribute in making of a developed and prosperous India, Goyal said, “Today India is talked of in the world as an emerging superpower, as a nation of startups, a nation of innovators, a nation meeting its SDGs in advance. This is possible when young minds come up with innovative ideas that contribute to the development of India."

7.2. Indian Railways sets up 'Meghdoot' atmospheric water generator kiosks at Mumbai stations

ET Gov. 1 Sep. 2022

The unique 'Meghdoot' machines use innovative technology to convert water vapour in the air into potable water.

In line with Prime Minister Narendra Modi's idea of innovation, Indian Railways have set up 'Meghdoot' machines at Dadar, Thane and other stations of Mumbai Division. The unique 'Meghdoot' machines use innovative technology to convert water vapour in the air into potable water.

According to the official, a contract for setting up 17 'MEGHDOOT', Atmospheric Water Generator Kiosks' over Mumbai Division of Central Railway under NINFRIS policy for a period of 5 years has been awarded to Maithri Aquatech Pvt Ltd.

"License fee of this innovative project is Rs 25,50,000 per annum, in which Rs 1,50,000 per year for each kiosk at 6 stations- CSMT-5, Dadar -5, Kurla-1, Thane -4, Ghatkopar -1, Vikhroli- 1," official said.

"An Atmospheric Water Generator (AWG) is a device that extracts water from ambient air. The technology utilizes the science of condensation to extract water vapour from the surrounding atmosphere. Maithri Aquatech's MEGHDOOT - AWG uses innovative technology to convert water vapour in the air into fresh and clean drinking water", further stated.

"The technology allows operating in a wide variety of ambient temperatures (18°C- 45°C) and relative humidity conditions (25 percent - 100 percent). It produces water within hours of being switched on, hence it can be used as an instant solution for potable water. The company has also collaborated with the CSIR-Indian Institute of Chemical Technology (IICT), Hyderabad to produce water of the highest quality," also stated.

The official also informed that these Meghdoot machines are research-driven and it does not need source water. Also the technology is environmentally-friendly with zero maintenance.

8.1. Foodgrain Production may be 1.6% Higher in 2021-22

ET, 18 Aug. 2022

India is likely to produce 315,72 million tonnes of foodgrains in 2021-22

India is likely to produce 315,72 million tonnes of foodgrains in 2021-22, 1.6% higher than in the previous year, with an expected record production of rice, maize, gram, pulses, rapeseed and mustard, oilseeds and sugarcane, the agriculture ministry said in its fourth advance estimates on Wednesday.

“The production during 2021-22 is higher by 25 million tonnes than the previous five years’ (2016-17 to 2020-21) average production of foodgrains,” the ministry said in a statement.

Rice production is expected to be 130.29 million tonnes. Wheat production could increase to 106.84 million tonnes, 2.96 million tonnes higher than the past five years’ average of 103.88 million tonnes.

The production for nutri or coarse cereals could be 50.90 million tonnes, according to the ministry.

Total production of pulses in 2021-22 is estimated to be a record 27.69 million tonnes, which is 3.87 million tonnes higher than the past five years’ average production of 23.82 million tonnes.

Total oilseeds production in the country in 2021-22 is estimated at a record 37.70 million tonnes, the ministry said.

Sugarcane production is estimated at a record 431.81 million tonnes, according to the fourth advance estimate.

Production of cotton is estimated to be around 31.20 million bales (each of 170 kg) and that of jute and Mesta 10.32 million bales (each of 180 kg).

8.2. Reliance to Add Local Fizz to Cola Mkt with Campa Buy, Plans Diwali Launch

ET, 31 Aug. 2022

Soft drink brand Campa, once the market leader with its Cola variant Campa Cola, is going to make a comeback in October, thanks to Reliance Industries which has acquired the brand as part of its strategy to scale up the FMCG business.

Reliance has acquired the brand from Delhi-based Pure Drinks Group in a deal estimated at about ₹22 crore, said two people aware of the development.

Reliance will relaunch the Campa brand nationally in the iconic cola flavour, lemon and orange through its own stores and kiranas taking on the fight with the American cola giants, Coca-Cola and PepsiCo. In fact, it was on the entry of these two giants in the 1990s that led to the slow death of Campa.

“Campa will be relaunched around Diwali through the Reliance Retail stores, JioMart and the over 15 lakh kiranas who buy products from Reliance’s B2B network,” an executive said, requesting anonymity. “Eventually, it will be scaled up across the country when Reliance builds the FMCG distribution network.”

An email sent to Reliance and Pure Drinks Group remained unanswered till Tuesday press time.

The acquisition of the Campa brand is part of Reliance’s strategy to scale up the FMCG business and give it a dedicated focus with its own private labels as well as through acquisition of once popular and regional brands.

Industry executives said Reliance is also in advanced stages of talks with a popular South-based soap, edible oil and namkeen brands and due diligence is currently on.

“Reliance has identified almost two dozen potential brands which can be acquired or for joint ventures to strengthen the FMCG business. A couple of deals have already fallen through due to high valuations sought. Reliance’s strategy is to go for small sized deals valued at a few crores,” an executive said.

Campa Cola was conceived by Pure Drinks Group — which originally was the bottler and distributor of Coca-Cola — after Coke was asked to leave India in the late 1970s. Campa Cola’s slogan was “The Great Indian Taste”. It along with soft drink brands developed by Parle — Thums Up, Gold Spot and Limca — were dominating the market. Coca-Cola subsequently acquired the three Parle brands on its reentry, while Campa could not compete.

Pure Drinks had tried multiple times to revive Campa Cola and the brand, with the last ditch effort in 2019, but failed due to lack of financial strength to take on the American beverage giants.

Isha Ambani, Reliance Industries chairman Mukesh Ambani’s daughter and a director in the retail holding company — Reliance Retail Ventures, on Monday announced in the annual general meeting that Reliance will launch the FMCG business this year with an objective to “develop and deliver high quality, affordable products which solve every Indian's daily needs”.

9.1. Mahindra Arm Bets Big on Mechanised Farming Solutions

ET, 13 Sep. 2022

As part of its vision to generate a billion dollars through farm mechanisation, Mahindra & Mahindra, the world’s largest tractor maker, has created a niche by offering mechanised horticulture farming equipment through its subsidiary Swaraj Tractors.

Named Code, it is a multi-application machine aimed at farmers at the bottom of the pyramid.

Code is not a single application machine, it’s a multi-purpose multi-application machine, said Hemant Sikka, president of farm equipment business at M&M.

It can be used for a wide range of purposes, especially for horticulture farming, and eliminates the need for labour or animal power for inter-row operations.

It is seen as an alternative to the over 80,000 power tiller segment in the country, and has been adopted in a wide range of horticulture crops including flowers, pomegranates, dragon fruits, areca nuts, coconuts, and mangoes since its launch in November 2021.

The multipurpose machine, which looks like an all-terrain vehicle, costs about ₹3.5 lakh.

This is one of M&M’s many attempts to help farmers improve yield. Through global acquisitions, the company has introduced mechanised solutions for Indian farmers at Indian cost. It has developed a global centre of excellence, based on acquisitions and partnerships over the last seven years.

Mitsubishi Mahindra has developed light weight tractors and offers mechanised rice value chain solutions. From its Turkish acquisitions Erkunt and Hisarlar, M&M has developed a portfolio of harvesters and farm implements including rotators, cultivators, rotary tillers, bailers, disc harrows, and silage machines.

Currently, Swaraj's factory in Mohali manufactures Code. The company may consider setting up a dedicated line if demand momentum continues.

“The strengths of the product which make it suitable for inter-row operations in horticulture farming also make it highly desirable in other row crops as well,” said Harish Chavan, CEO of Swaraj Tractors.

According to the company, horticulture crops are more profitable in nature. The average value of horticulture crops increased by 11% during FY17-21 compared with a 6% rise in food grains. Code aims to participate in this growth story.

9.2. Indian importer partners with Palogix International in agriculture harvesting and storage bin venture

Asia Fruit, 25 Aug. 2022, Liam O’Callagam,

IG International has announced a new joint venture with Palogix International to provide the rental of plastic agricultural harvesting and storage bins in the Indian fruit, vegetable and nut market.

The venture, named IG Palogix, will be headed by Ajay Jhalani, a plastics expert and the newly appointed business advisor for Palogix International.

Much of India’s fresh produce sector currently utilises a one-way packaging solution and IG Palogix hopes by providing rental of reusable plastic agricultural bins it will improve quality and efficiency, reduce processing and transportation costs, and enhance eco-friendly sustainability practices through the implementation of a circular economy practice.

Tarun Arora, director of finance and operations of IG International, said the venture will cater to the growing demand for agricultural bins in the Indian market, especially in the food and beverage sector.

“This venture will assist the food and beverage sector in meeting packaging demand while also reducing traditional packaging practices. Using agricultural bins will help cut down on the carbon footprint. With IG Palogix, we also look forward to reducing the overall cost of production and transportation in the food and beverage industry,” said Arora.

Robert Liebesman, chief executive of Palogix International, was excited to partner with IG International.

“We see our partnership and expansion into the large and growing Indian market as a critical part of our strategy where we can continue to bring the huge benefits of plastic bin rentals to fruit, vegetable, and nut markets around the world.”

Jhalani said the mantra behind IG-Palogix was to work on sustainability, the three Rs (recycle, reuse, reduce), and a circular economy.

“Our new venture will add value to the supply chain wherever one-way packaging is used. We will alter the one-way packaging model with our agri-bins, which will then be rotated between growers, cold storage facilities, retailers, and us,” Jhalani explained.

“We also believe that introducing agri-bins in the Indian market will promote sustainability, which is the need of the hour.”

10.1. Technology and digital transformation key to build modern railways: Railway Board Member DC Sharma

ET Gov. 27 Aug. 2022

"Indian Railways has become a technologically transformed mode of transportation."

The railway ecosystem is changing in terms of management and environment but the theme remains the same; the economy will only grow when the railway sector is strengthened, said DC Sharma, member, Traction & Rolling Stock (L/A), Railway Board, Ministry of Railways, at an event in New Delhi on Friday.

Speaking at the event titled "Futuristic Technologies for Indian Railways" at Rail Tech 2022, the official said innovation and technology are crucial for railways. Cleanliness, safety, passenger amenities, aiming toward Net Zero Carbon Emission, green trains, and freight are a few of the recent advancements in the rail industry. The fundamental objective, he said, is to carry more in order to lower the cost of logistics.

The vision of Indian Railways is to be a global leader in railways, said Vivek Lohia, MD, Jupiter Wagons Ltd. He further said, “Indian Railways has changed drastically over the time. It has become a technologically transformed mode of transportation.

At the offset, a lot of significant advancements can be seen in the field of speedier services, passenger safety and operating engine-less trains. Much of the credit goes to the technological developments which consist of enhanced systems, robust infrastructure and sound signalling, giving rail travel new importance.”

According to BJ Alexander, Joint President of Hindalco Industries Ltd, aluminium is a popular material choice for freight, high-speed, and metro rail systems worldwide since it greatly lowers electricity costs. Ecosystem development is India's top objective in order to lead a top-notch, reliable supply chain, he added.

KN Ramesh, co-chairman, National Council for Railways & Business Adviser (Rail & Metro) BEML Ltd shared his thoughts on Prime Minister's vision to master engineering in railway. There are new techniques being implemented, he said. MSME is the backbone of the Indian Railways and there is a space of creativity and connectivity to be tapped.

Yogesh Kumar Misra, CMD, IRCON International Ltd said there has been an upgradation of railway tracks and high-speed trains installation. There is a multi-tracking for congested routes and high-density routes. Station Development has seen major improvements shifting to the modern rail system in India.

10.2. Bike Bazaar Mops Up ₹170 cr for Rural Push

ET, 1 Sep. 2022

Two-wheeler financing startup Bike Bazaar said it has raised ₹170 crore of equity funding led by Women’s World Banking Asset Management (WAM) with participation from existing investors including Elevar Equity and Faering Capital. Elevar was the early investor in Bike Bazaar and continues to hold the largest stake in the business.

The company intends to use the funds to increase its business in rural India and also scale its marketplace business for the sale and purchase of used two-wheelers.

Founded in 2017 by former Bajaj Auto executive Srinivas Kantheti and former Bajaj Finance executive Karunakaran Vadakkepat as a used two-wheeler financing business, Bike Bazaar has now several businesses within the two-wheeler segment including new two-wheeler financing, a marketplace for pre-owned two-wheelers, and a new EV financing business besides services like leasing and insurance. It will add servicing as well, officials said.

- INDUSTRY & MANUFACURE

11.1. Will continue to invest in India aggressively: Suzuki Motor President

IBEF, Aug. 29, 2022

Mr. Toshihiro Suzuki, president of Japan's Suzuki Motor Corp., announced plans to establish a new global research and development organisation in India and continue to make significant investments there.

The new firm, a fully owned subsidiary of Suzuki Japan, would aid the Japanese automaker in enhancing its R&D competitiveness and capabilities, both for India and for international markets.

In order to commemorate Suzuki's 40 years in India, Prime Minister Mr. Narendra Modi set the cornerstones for two significant projects: a Maruti Suzuki car-making facility in the northern state of Haryana and a facility for the production of Suzuki electric vehicle batteries in Gujarat.

Suzuki has so far invested Rs. 65,000 crore (US$ 8.13 billion) in India, one of the largest markets in terms of revenue and profits, to help Maruti and ensure that it keeps its top spot.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

11.2. India’s first electric double-decker bus unveiled in Mumbai

Livemint, 19 Aug 2022

Mumbai: The Switch electric double decker can ferry nearly twice the number of seated passengers as a comparable single decker bus with just 18% increase in kerb weight.

In what will be anostalgic re-birth, Mumbaikars can soon enjoy rides on the double-decker bus which was unveiled today. However with the changing times and growing consciousness about global warming, this time the double-decker bus will be run on electricity and not on diesel

Switch Mobility Ltd (‘Switch’), today unveiled India’s first and unique electric double-decker air-conditioned bus - Switch EiV 22. Designed, developed and manufactured in India and utilising Switch’s global electric bus experience, "Switch EiV 22 is equipped with the latest technology, ultra-modern design, highest safety and best-in-class comfort features. The renewed iconic double decker bus is designed to revolutionize public transportation in the country and will set new standards in the intra-city bus market," according to a statement by the company.

The new electric double-decker bus will be the world's first - semi low floor, air conditioned, electric double-decker with wider door on rear overhang and a rear staircase. The double decker has a lightweight aluminium body construction, which offers higher passenger-to-weight ratio and a competitive cost per km, per passenger.

The Switch electric double decker can ferry nearly twice the number of seated passengers as a comparable single decker bus with just 18% increase in kerb weight. The architecture of the double also common with Switch e1.

With contemporary styling and feel-good interiors and exteriors, the double decker boasts of wide front and rear doors, two staircases and an emergency door complying with the latest safety standards. The AC offers effective cooling in India’s hot climatic conditions, while the optimized seating for 65 passengers is the maximum number of seats to be offered in the given footprint. Each seat has a lightweight cushion and the interiors come with car like comfort for passenger convenience. This state-of-the-art electric double decker serves as an ideal solution for urban commuting, as they occupy less road, terminal and depot floor space per seated passenger.

Powering Switch EiV 22 is a 231 kWh capacity, 2-string, liquid cooled, higher density NMC chemistry battery pack with dual gun charging system. This enables the electric double decker to have a range up to 250 kms for intra city applications.

Switch India has already secured an order of 200 electric double decker buses in Mumbai and is looking at a dominant space in the electric double decker segment, across key regions in the country.

Bus components are manufactured in India which will enable to achieve FAME II compliance.

Nitin Gadkari, Minister of Road Transport and Highways of India, said, “There is a need to transform the country’s transport system from a long-term perspective. With focus on reforming urban transport, we are trying to build a low footprint and high passenger density integrated EV mobility ecosystem. Government’s vision and policies are supportive towards EV adoption with growing consumer demand for greener solutions. I would like to congratulate Switch Mobility, subsidiary of Ashok Leyland, for being the one to revive the double decker and remain committed to introducing new technologies for the benefit of passengers and society, at large."

Dheeraj Hinduja, Chairman - Switch Mobility, said, “It’s an extremely proud moment for us as we bring back the iconic double decker to India. Ashok Leyland was a pioneer among Indian manufacturers when it first launched the double decker in 1967 in Mumbai and Switch is carrying forward that legacy. With our strong expertise in double deckers, both in India and UK and with over 100 Switch electric double deckers in service on UK roads, we are happy to not only bring back this icon to life and look forward to introducing newer Electric products for the Indian and European markets, always keeping the customers at the forefront."

Andy Palmer, Executive Vice Chairman and CEO – Switch Mobility Ltd, commented, “As a carbon neutral mobility company Switch is focused on delivering innovative solutions to help authorities and operators decarbonise their public transport systems. The Switch EiV 22 is the latest such innovation and builds on our expertise within the electric double-decker segment to deliver a product with class leading efficiency for the Indian market. With our Switch EiV 22 and Metrodecker buses, we are now well positioned to address the global double-decker market and support cities in meeting their net zero targets."

Talking about the brand’s entry into the EV double decker space for the Indian market, Mahesh Babu, CEO – Switch Mobility India, COO – Switch Mobility Ltd, said, “We are pleased to unveil the Switch EiV 22, India’s first and unique electric double decker. We have strived to meet multiple challenges to fulfil new age customer requirements, while retaining the iconic double decker lineage. The Switch EiV 22 is designed and developed to meet Indian conditions, while at the same time provide superior customer comfort and delight. Mumbai and double deckers are synonymous with public transport, and we are certain that Switch EiV 22 will not only bring back fond memories for Mumbaikars, but will transform the public transport space in terms of sustainability and footprint which is the need of the hour in India."

12.1. Green Energy Push: Adani Group Plans to Build 3 Giant Plants

ET, 8 Sep. 2022

Adani Group will be building three giant factories in India leading to the world's most integrated green energy value chains, Gautam Adani, chairman of Adani Group, said on Wednesday. Adani was speaking at the US India Business Council (USIBC) conclave in New Delhi where he was conferred the USIBC Global Leadership Award.

The giga factories, Adani said, will extend from polysilicon to solar modules, complete manufacturing of wind turbines and hydrogen electrolysers.

In July this year, Adani had said that the group would invest $70 billion in green energy transition and infrastructure projects to become a net exporter of clean energy.

"As a result, we will generate an additional 45-GW of renewable energy to add to our existing 20-GW capacity, as well as 3 million tonnes of hydrogen – all of which will be completed before 2030," Adani said, adding that this value chain will be fully indigenous and aligned with the geopolitical needs of the country. "However, I believe we can further accelerate our goals with support from companies in the US that are willing to work with us. Both of us stand to benefit."

Adani Enterprises’ stock ended at ₹3,473.8 up 1.11% on Wednesday.

Adani's announcement comes days after billionaire Mukesh Ambani, chairman of Reliance Industries, announced his fifth giga factory at the company's annual general meeting on August 29.

RIL's new giga factory for power electronics will be in addition to four giga factories announced last year for making integrated solar PV modules that will produce electricity from sunlight, electrolyzers that produce hydrogen from water, fuel cells and batteries to store energy from the grid as well as 20GW solar energy capacity by 2025 for captive needs.

Emphasising that the ongoing (Russia-Ukraine) war has only brought home the fact that semiconductors are essential to almost all sectors of the economy, Adani said the semiconductor industry is a classic example with more engineers deployed in India than anywhere else in the world, and yet, India has no semiconductor plant. "India cannot remain dependent on global supply chains that are based on semiconductor nationalism and will need US support with technology transfer."

Adding that the term de-globalization gained prominence because of the divisions that came about as a result of the pandemic, Adani said we must never allow this to happen again, given the mistrust it creates.

“Vaccine collaboration between our nations must be high on our priority list and needs to be formalised in a mutually beneficial way,” he said, adding that likewise, defence and cyber are two critical areas that the US and India must work on as trust comes from collaboration in these areas.

“India needs support in both these areas and, at this time, we are just skimming the surface. These are two essential areas where our partnerships must span technology transfer to be able to build mutual confidence,” Adani said.

Calling for a deeper partnership in the US-India engagement, he said the combined value of the GDP of the two nations in 2050 is expected to be a staggering $70 trillion dollars or 35-40% of the global economy.

By that year, the combined population of the two countries will be over 2 billion with a median age of less than 40 years as compared to the current median age of 44 in Europe and 40 in China.

“When seen through these lenses of economics and the raw power of consumption, it is evident that the existing $150 billion of bilateral trade between the US and India is no more than a speck in the ocean. Far more needs to be done,” he added.

12.2. L&T Goes Green with Hydrogen Plant

ET, 21 Aug. 2022

L&T, which has forged multiple partnerships for development of technology and projects in the green hydrogen space over the past year, is in talks with around a dozen companies in steel, cement and refining segments for providing green hydrogen solutions.

Engineering major Larsen & Toubro (L&T) on Saturday commissioned its first green hydrogen plant at its engineering complex in Hazira, Gujarat.

The plant will produce 45 kg of green hydrogen daily through an alkaline electrolysis process and will use it for captive consumption in the company’s Hazira manufacturing complex.

“We began working on this seven months ago,” said Subramanian Sarma, senior executive vice president (energy) at L&T. “This initiative is in line with our climate leadership targets of Lakshya-2026 that will help reduce greenhouse gases footprint for us as well as our clients by approximately 300 tonnes per annum.”

The company plans to expand this initiative to its other manufacturing facilities and its customers, he added.

“We are talking to almost all major refineries in India, both public and private,” Sarma said. “We are also talking to international customers and also some of the major steel plant players to provide green hydrogen solutions.”

The Hazira hydrogen unit is spread across 3,000 square metres and has been set up at the cost of over ₹25 crore. The company said it will blend 15% hydrogen with natural gas as fuel, and oxygen will supplement the existing usage in cutting and welding applications at its manufacturing units in Hazira.

The green hydrogen plant is designed for an electrolyser capacity of 800 kW comprising both alkaline (380 kW) and polymer electrolyte membrane (420 kW) technologies and will be powered by a rooftop solar plant of 990kW peak DC capacity and a 500 kWh battery energy storage system (BESS), the company said.

“As we scale up, the per-unit cost will keep dropping,” said Derek M Shah, head, green manufacturing and development, at L&T. “The company will be setting up a polymer electrolyte membrane (PEM) electrolyser in future.”

Shah said green hydrogen is key to the company’s plan to reduce carbon footprint. As part of its ESG commitments, L&T plans to achieve water neutrality by 2035 and carbon neutrality by 2040, making green hydrogen an integral part of its clean fuel adoption policy.

13.1. Auto component sector sees record turnover of Rs. 4.2 trillion (US$ 52.59 billion) in FY22: ACMA

IBEF, Aug. 23, 2022

According to the Automotive Component Manufacturers' Association of India (ACMA), India's auto component sector recorded its highest-ever revenue of Rs. 4.2 trillion (US$ 52.59 billion) in FY 2021–22, growing by 23% as a result of good aftermarket and export results.

Imports of auto parts increased by 33% in FY 2021-22, exports increased by 43% over the same time, said ACMA.

Due to a rise in the number of vehicles on the road, prolonged vehicle use, rising demand for used cars, rising commodity prices, and the emergence of new sales channels like online retailers and multi-brand outlets, the aftermarket's turnover exceeded pre-pandemic levels in FY 2021–22, according to ACMA.

In FY 2021–22, the aftermarket for automotive components generated revenue of Rs. 74,203 crore (US$ 9.29 billion), a 15% increase over the previous year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

13.2. Intelsat Signs Pact With Tata’s Nelco to Offer In-flight Internet in Indian Skies

ET, 26 Aug. 2022

Intelsat joins companies such as IndJets, Reliance Jio, Bharti Airtel, and Vodafone Idea that have received approvals from the Indian government to offer internet services on-board flights. IndJets is a strategic partner of British satellite operator Inmarsat and BSNL.

Intelsat Thursday said it has signed a commercial agreement with Tata’s Nelco to offer in-flight connectivity services in Indian skies.

The pact will benefit Intelsat’s airline partners and flyers as they will get end-to-end broadband coverage on domestic and international aircraft flying to or from an Indian airport, as well as aircraft flying over the country, a statement said.

“In addition to expanding our service coverage area for current customer airlines, our agreement with Nelco opens the possibility for Intelsat to serve India’s domestic airlines,” said Jeff Sare, president of commercial aviation at Intelsat. “This is a fast-growing market, and there is considerable potential for IFC growth.”

PJ Nath, managing director & CEO of Nelco, said: “As India’s leading satcom service provider offering best-in-class services, we are now creating a great opportunity through this relationship with Intelsat for further growth of our Aero IFC services in the country in the coming years—and we intend to be a leader in this market in India.”

14.1. Govt Planning PLI Scheme for Toys, Lab-made Gems, Bicycles

ET, 25 Aug. 2022

India is eyeing a mega plan to incentivise the manufacturing of bicycles, lab-grown gems and toys in the country and has begun discussions on stitching together production-linked incentive (PLI) schemes for these sectors.

With the successful rollout of PLI schemes for 14 sectors to create national manufacturing champions, discussions are on to have similar incentives for some more job-creating sectors, officials said. “Talks to include toys, bicycles and lab-grown gems within the PLI umbrella are going on,” said an official.

The extant PLI schemes have an outlay of ₹1.97 lakh crore and aim to create 6 million jobs in the next five years. “Preliminary discussions are on with various stakeholders,” said an official.

Lab-grown diamonds are grown are chemically, physically, and optically the same as the natural ones. Besides jewellery, they are used in computer chips, satellites and 5G networks.

India exported $1.3 billion worth of lab-grown diamonds in FY21, mostly to the US, Hong Kong, UAE, Israel and Belgium. “The export potential for lab-grown diamonds is huge as we are seeing great demand for these stones, especially from the US. A PLI scheme may help reduce the trade deficit,” said an industry representative.

India’s largest bank, State Bank of India, has also formalised a policy to fund units engaged in manufacturing of lab-grown diamonds under certain conditions.

“PLI schemes are welcome for the three sectors, especially since a large part of these imports are from China and other Asian countries, and this incentive will help bridge the disabilities being faced by domestic manufacturers,” said Bipin Sapra, partner, EY India.

The Centre has already brought toys under compulsory Bureau of Indian Standards certification, quality testing and raised the basic customs duty to 60% from 20% to curb the import of cheap toys, especially from China. Imports of dolls, wheeled toys, puzzles, video game consoles and novelty jokes and tricks shrank 70.35% in FY22 at $110 million from $371 million in 2018-19.

14.2. Made in India, Cooling Solutions for the World

ET, 28 Aug. 2022

Danfoss has developed a cooling solution out of India that is being shipped across the world. The technology is one among many that have been made specifically for India and exported to other nations by the Danish engineering solutions company’s R&D team in the country, said Ravichandran Purushothaman, president, Danfoss India.

Danfoss is currently supplying the inverter-driven condensing units to countries in the European Union, Africa and Asia Pacific

The condensing units are suitable for use with normal grid supply as well as solar-powered DC (direct current). They are designed to operate at speeds that match the actual load conditions and provide optimum performance and savings, according to the company.

We anticipate good demand from the markets in India and Africa for inverter and solar-powered solutions in the coming years,” Purushothaman told ET

Since January 2021, we have sold more than 600 pieces across EU, Africa and APAC. These units operate on 100% solar power and have been in successful field trials since February 2021 for milk cooling and cold room applications,” he added.

A condensing unit is the complete assembly of an outdoor unit that is required in any refrigeration system. Danfoss makes air-cooled condensing units, which are used mostly as milk cooling tanks, cold rooms and ripening chambers

The company said the savings on power bills and consumption because of the inverter condensing unit is about 30% compared to conventional fixed speed units. The condensing unit team in India has designed and developed the condensing unit range with low GWP refrigerants, Purushothaman said.

GWP refers to Global Warming Potential, a measure of how destructive a climate pollutant is. Refrigerants today are often significantly more polluting than carbon dioxide (CO2).

The GWP of a gas refers to the total contribution to global warming resulting from the emission of one unit of that gas relative to one unit of the reference gas, CO2, which is assigned a value of 1.

GWPs can also be used to define the impact greenhouse gases have on global warming over different time periods, or time horizons.

“These low GWP/natural refrigerants are the next-gen refrigerants for sustainable use and Danfoss India Application Development Centre is testing condensing units with various low GWP and natural refrigerants to help the Danfoss condensing unit team be prepared for the next phase of F-gas phase out plan in Europe and the rest of the globe,” he said.

F-gases, or f luorinated gases, are man-made gases used in a range of industrial applications. They are often used as substitutes for ozonedepleting substances as they do not damage the atmospheric ozone layer

F-gases are , however, powerful greenhouse gases, with an even higher warming potential than CO2. Therefore, they end up contributing greatly to climate change. To control emissions from F-gases, including hydro - fluorocarbons, the EU has adopted two legislative acts: the F-gas Regulation and the MAC (Mobile Air Conditioning systems) Directive

Danfoss India is working with the Indian Institute of Science, Bengaluru to promote the research, development, use and promotion of new low GWP and natural refrigerants to support the global refrigerant transition and India’s commitment and amendment of the Kigali Agreement, Purushothaman said

The Kigali Agreement is an amendment to the Montreal Protocol, which is an environmental treaty signed by countries to phase out Ozone Depleting Substances from the earth’s atmosphere.

15.1. Sun Pharma has cracked the specialty-drugs code. Can it now raise the bar?

ET, 18 Aug. 2022

Sun Pharma is the only Indian generic drug maker that has been able to build a sizeable global specialty drugs business, an area where many other companies have failed. How did it pull off this feat, and will it be able to further consolidate its position and expand the specialty-drugs business?

It’s been 10 years since Sun Pharmaceutical Industries forayed into specialty drugs. In 2012, it had acquired a US-based dermatology company, DUSA Pharmaceuticals, to get access to a specialty drug-device combination product, Levulan Kerastick.

In those days, Indian companies were doing quite well in the US with their generic-drugs business, launching copy-cat versions of innovative branded drugs. Sun Pharma’s generic-drugs business was going strong, too, but the company’s founder and managing director Dilip Shanghvi had recognised the need to move up the value chain and have branded products in the portfolio. After all, the generic-drugs segment in the US is a commoditised business and to create long-term value, companies need to have a branded play.

As Sun Pharma began its journey to build a specialty branded-drugs business, the company added its next and the most important product in 2014. From Merck, it licensed a novel biologic, tildrakizumab, which was at an advanced stage of clinical development for the treatment of plaque psoriasis. This product, launched under the brand name Ilumya in the US in 2018, has become the biggest revenue generator in Sun Pharma’s specialty business.

But the company had its set of challenges. Many in the industry and among the investment community were sceptical about its ability to succeed in the specialty-drugs business.

A senior industry official told ET Prime that the company faced teething issues with Ilumya, and the market downplayed the product. The common view was that with such high investments in Ilumya — USD80 million upfront payment, shared cost of clinical trials, and marketing expenses— Sun Pharma may not be able to survive the competition from Big Pharma in the US.

Two years ago, when most Indian pharma companies witnessed a sharp Covid-19-induced rally in stock prices, Sun Pharma’s shares underperformed due to the overhang of the specialty-drugs business, which had seen huge investments from the company, but sales had not picked up as much as expected. But over the last few quarters, the tide has turned.

Sun Pharma’s specialty-drugs business has gained strong traction, and this is expected to continue in the medium term, which has significantly boosted investor confidence. This is reflected in the stock-price trend of the company in the past one year.

Currently, Sun Pharma has 13 products in its specialty-drugs basket. It is the only Indian generic-drug maker that has been able to build a sizeable global specialty-drugs business, an area where many other companies have failed. How did it pull off this feat, and will it be able to further consolidate its position and expand the specialty-drugs business?

In FY22, Sun Pharma’s global specialty drugs sales were USD674 million, accounting for 13% of its consolidated revenue. The share of this business was 7% in the total revenue in FY18. Ilumya’s global sales were USD315 million in FY22.

A couple of years ago, some analysts had expected Ilumya’s peak sales to be about USD300 million. But the company has already crossed that mark and the growth is likely to continue. Now analysts have revised Ilumya’s peak sales estimates to USD700 million-USD900 million.

So what has worked for Sun Pharma? One is the sizeable product portfolio, and the other is the marketing strategy.

Winning moves

It is important to create a product portfolio with synergies, understand the relevance of the products for patients as well as providers (insurance companies) and consistently generate clinical data for the products. The companies need to identify the right products in the therapy areas where it has a stronghold.

Sun Pharma has built its specialty products pipeline largely through in-licensing and acquisitions. This was possible because the company has always been cash rich and had a strong balance sheet to support its inorganic moves.

The other leading pharma companies in India do not have a cash position as strong as Sun Pharma’s. This is critical, because specialty business is investment heavy with long payback periods.

An industry source who has closely watched the company says chairman Israel Makov was instrumental in changing Sun Pharma’s mindset from the generics side to the branded side. “He removed the shackles, and Shanghvi took his advice to quickly change lanes. Shanghvi would not have listened to anyone else,” the source says.

Makov is set to retire and will vacate the chairman’s office on August 29.

Now on the marketing part. Shanghvi, a shrewd marketer, along with Abhay Gandhi, the current chief executive officer of the US business, have steered the specialty-drugs business well.

When Sun Pharma acquired Ranbaxy Laboratories in 2015, it got access to the latter’s branded product in the US, Absorica. This product gave Sun Pharma an understanding of how specialty business in the US works. It generated high revenue for Sun Pharma till it faced generic competition from Teva last year.

Sun Pharma’s lead specialty product Ilumya was launched in the US in 2018. How it positioned this product and marketed makes for an interesting study.

Ilumya is an interleukin 23 (IL-23) inhibitor drug used to treat moderate to severe plaque psoriases. It faces competition in IL-23 and IL-17 category from several brands of big pharma companies like Novartis, Johnson & Johnson, Eli Lilly, Boehringer Ingelheim, and AbbVie.

“Competitive intensity is a given for any specialty product. We are competing against other products from better entrenched companies. A combination of good clinical data coupled with focused scientific promotion and consistent efforts towards improving patient access has helped us in improving our market share,” says a Sun Pharma spokesperson.

Nithya Balasubramanian, analyst at financial-services company Sanford C Bernstein, says in a recent report that while Ilumya lacks in efficacy compared to many of its competitors, it has the advantages of less frequent dosing, a good safety profile, and long-term (five years) durable efficacy.

“The most significant advantage though, would be in Medicare [US health insurance] where, being a medical benefit drug (Part B), the OOP (out of pocket) costs for Ilumya are 50%-55% lower than other IL-17s and IL-23s. This has led to a steady growth in Ilumya sales in the last three years. Ilumya is also in Phase 3 trials for treatment of psoriatic arthritis, which is expected to materialise in FY24, providing additional revenue,” she says.

According to the report, for Medicare patients, the out-of-pocket expense when prescribed a medical-benefit drug (Part B) is 20% of the list price, while it is 25% of list price if it is a pharmacy-benefit drug (Part D). In commercial insurance, brands can provide co-pay coupons and reduce the out-of-pocket expense — a feature not available for Medicare patients, according to the report.

Ilumya’s share in Medicare grew from 25% in 2019 to 53% in 2020, the report adds.

While medical-benefit drugs (Part B) must be administered by a trained healthcare provider, pharmacy-benefit drugs (Part D) can be purchased directly from the pharmacy and self-administered by the patients at home.

A fund manager tracking the healthcare sector tells ET Prime that Sun Pharma targeted part B of Medicare (insurance scheme), which is a smaller opportunity than part D of Medicare, but is much less crowded. This helped the company gain market share.

Sun Pharma’s pricing of Ilumya is also at least 10%-15% lower than competitors. Moreover, since the company has several dermatology products in its specialty basket, it has been able to gradually build equity with relevant doctors.

“Negotiations with insurance companies and PBMs (pharmacy benefit managers) in the US for rate contracts have become very tough. The challenge is to find the right tier of pricing where the product fits in. It’s not always that the best in class grabs higher market share. A product is positioned when a balance is struck in terms of patient benefits and pricing. Shanghvi knows that math very well,” according to the industry official mentioned earlier.

The company launched another dermatology product, Winlevi, in November last year. Being the first drug to be approved in nearly 40 years with a new mechanism of action for acne, Winlevi has gained good traction. The company expects strong growth for this product.

While other products will contribute to Sun Pharma’s specialty business growth, Ilumya and Winlevi are likely to be the key drivers.

Time to scale up

After 2016, when Sun Pharma’s generic-drugs business in the US was affected by price erosion and quality-compliance issues at its plant, the company’s financial performance took a beating. But the pickup in the specialty-drugs business has led to a revival. Also, the company’s strong branded-generics business in the domestic market continues to see good growth.

For the first time in Sun Pharma’s history, its total revenue crossed USD5 billion and net profit crossed USD1 billion in FY22. The company has guided for a high single-digit to low double-digit growth in revenue in FY23.

While the company has created a good base for the specialty-drugs business, the focus will now be on scaling it up. For this, Sun Pharma will work on ramping up sales of products such as Ilumya and Winlevi as well as expanding the product portfolio. This means investments will continue to be on the higher side.

The Sun Pharma spokesperson says, “Our focus is on increasing the share of our specialty products in existing markets and launching them in newer territories — either on our own or through partners. We are also targeting new indications for our existing specialty products like psoriatic arthritis for Ilumya. Our strategy is to expand the specialty pipeline through a combination of in-licensing and in-house R&D efforts.”

Its current specialty pipeline includes two molecules in phase 2 clinical trials for treatment of psoriasis atopic dermatitis and pain in osteoarthritis, and one GLP-1 molecule for type 2 diabetes in phase 1 clinical trials. Phase 3 trials are also ongoing for additional indication of psoriatic arthritis for Ilumya.

As the company looks to scale up this business, more in-licensing and acquisitions are expected in the near-to-medium term. It will continue to eye assets in the therapy areas in which it is already present — dermatology, ophthalmology, immunology, and oncology. It will look for assets in late clinical development stage or commercialised products. Shanghvi has always been conservative, so the company is unlikely to acquire assets at very high valuation.

While the current portfolio will see good growth over the next three to five years, led by Ilumya, the expected entry of biosimilars for some other IL-23, IL-17 brands will affect the pricing of Ilumya in the future. The company’s specialty-drugs business is expected to see an annual growth of around 25% over the next two to three years.

With renewed optimism over its specialty drugs business and expected strong growth momentum in domestic market, analysts are quite bullish on Sun Pharma.

According to data on from stock-analysis platform Trendlyne, of the total 38 recommendations, 27 analysts have a ‘Strong buy’ rating on Sun Pharma, seven analysts have a ‘Buy’ rating, three have ‘Hold’ rating, and just one has a ‘Sell’ call on the stock.

Given the experience of marketing its existing bunch of products and good execution, confidence in Sun Pharma’s ability to scale up the specialty drugs business is high. Can it live up to the expectations?

(Data support by Rochelle Britto)

15.2. Car Cos Keep Up Impressive Run with Highest Ever August Sales

ET, 2 Sep. 2022

The industry has already dispatched about 1.58 million vehicles so far this fiscal and it is on course to post a record 3.7 million vehicles for the whole year, Srivastava said. This would mean a growth of 20% on year. Veejay Nakra, president, automotive division, at M&M said August was an exciting month with the firm launching vehicles across many segments.

The strong momentum of cars continued in August as the industry braces for a record festive season on improved supplies.

Passenger vehicle dispatches from factories to showrooms last month at 329,000 units was the highest ever for the month of August and third highest for any month yet, industry insiders said. This was a third consecutive month of dispatches in excess of 300,000 units. New models launched by the likes of Maruti Suzuki, Mahindra & Mahindra, and Tata Motors fuelled August dispatches, which increased 24% year on year.

Compact car despatches drove Maruti Suzuki sales higher by 30%, whereas higher SUV despatches on improved supplies helped Tata Motors, M&M and Kia to register a strong double-digit growth.

Shashank Srivastava, senior executive director, sales and marketing, at Maruti, said demand continues to remain strong and the festive season has started off on a good note with bookings ahead of Onam next week growing by 10-15%.

“For the first time ever, the industry has sold close to a million units cumulatively in three months (992,000),” he said. “The demand trend seems to be strong, and the festive spirit will also drive good momentum. It is up to the chip supplies, which will determine the growth going ahead.”

“The demand across our portfolio remains strong and is enhanced with blockbuster launches of Scorpio-N, Scorpio Classic and new Bolero MaXX Pik-up,” he said. “We registered the highest ever SUV volume of 29,516 in August, registering a growth of 87% over August 2021. The supply chain situation continues to remain dynamic for select product lines.”

- SERVICES (Education, Healthcare, IT, R&D, Tourism, etc.)

16.1. Foxconn Spots an ‘Upgrade in Govt Efficiency’

ET, 17 Aug. 2022

Taiwan’s Foxconn will expand in India amid improvements in the overall industrial environment and an “upgrade in government efficiency,” chairman Young Liu said, underlining the South Asian nation’s growing importance for the world’s largest contract manufacturer amid tensions with China.

“We think India will play a very important role in the future. So, overall, I think our development in India, I see it actively heading in a positive direction – that is, it is going to get better and better,” Liu told investors and analysts during the company’s second-quarter earnings call last week.

He didn’t comment on any single product. “Overall, our group’s development in India will be actively expanding,” Liu said, as per an edited earnings transcript.

Liu had in June met PM Narendra Modi and officials in the Ministry of Electronics and IT (MietY) with updates on electric vehicle (EV) manufacturing and product expansion in electronics and semiconductor manufacturing.

ET had reported earlier that the company was building another facility inside its Foxconn Hon Hai facility near Chennai where it makes Apple phones. Apple has said the company witnessed a near-doubling of its India business as well as buoyancy in demand in the region in the second quarter.

Foxconn’s reiteration of its India commitment came amid a concerted push by Taiwan to strengthen ties with other countries as an increasingly belligerent China steps up military drills in the wake of a visit to the island nation by Nancy Pelosi, speaker of the US House of Representatives. China on Monday announced fresh high-intensity exercises around Taiwan after its president met with members of a US congressional delegation. Foxconn has three sites in Tamil Nadu and Andhra Pradesh where it makes phones for Apple, Xiaomi and other electronic brands under various corporate entities. Its India-focussed entity Bharat FIH has filed for an IPO. Foxconn plans to manufacture display panels and semiconductor chips for electronic devices in partnership with mines and minerals group Vedanta.

“The current situation is a wake-up call for several Taiwanese companies who were till now unwilling to move out of China,” said Sana Hashmi, a postdoctoral fellow at the Taiwan-Asia Exchange Foundation. “I think Foxconn, due to it being more global in nature, has been a little more forthcoming than other companies (relatively smaller).”

Vietnam and Indonesia though can give India stiff competition when it comes to attracting Taiwanese businesses.

“The next stop should be Southeast Asia and India, but there are still structural problems,” she said. “While the tensions motivate Taiwanese companies to look towards India, there’s a lot more that needs to be done.”

Foxconn's move to expand India manufacturing takes place amid a global supply chain reshuffle after the Covid-19 pandemic led to a chip shortage that’s seen lasting through this year.

The US is looking to energise domestic electronics and semiconductor manufacturing through the new CHIPS and Science Act. An August 9 White House release said the Act would spur American businesses to commit $50 billion to make semiconductors in the US.

16.2. Punjab government to provide education opportunity for prisoners, construct classrooms in jails

ET Gov. 20 Aug. 2022

The decision is part of the government's mission to "transform the lives of inmates and enable them to join the social mainstream as reformed convicts.

The Punjab government is planning to open classrooms in state prisons. The government is planning to do this in order to provide a learning environment to inmates, said Punjab Jail minister Harjot Singh Bains. He said the decision is part of the government's mission to "transform the lives of inmates and enable them to join the social mainstream as reformed convicts".

"The department is planning to construct classrooms with a capacity of 50 students in each jail," he added.

He said that initially, two to three classrooms of 50 students each will be constructed and if more rooms are needed in future, the capacity will be expanded, he said.

The prisoners will also be provided the facility of libraries.

"The idea is to inculcate a habit of learning and education and to provide them an opportunity to utilise their time in prison in a productive manner," said the minister.

Currently, the jail inmates are divided in three categories on the basis of their educational qualification.

There are a total 271 prisoners under Category A who are illiterate. They are being taught to read and write under a State Council of Educational Research and Training programme while Category B inmates, eligible and interested to appear for Class 10 or 12 board examination, are enrolled with the National Institute of Open School.

Similarly, Category C comprises 49 inmates, who have done their Class 12 and are motivated to undergo graduation courses in various disciplines offered by Jagat Guru Nanak State Open University, Patiala.

17.1. It’s no longer TCS vs. Infy vs. Wipro vs. Accenture. Look who joined the war for India’s IT talent.

ET, 17 Aug. 2022

IT companies have been poaching from each other to maintain growth following high attrition in the wake of the pandemic. What has aggravated the situation is the rising demand from non-IT-services companies. New graduates are not employable without months of additional training, so that’s of no help either. Is there a way out in the near term?

Before the pandemic, Shikhar Midha worked remotely for a mid-sized US company based in the Midwest. His role was to help design and build a platform that would reduce the number of people the company needed to assign and manage the work of its contractors.

In the beginning, Midha (name changed) worked alone in India and his colleagues were mainly at the company headquarters. But as remote working accelerated with the pandemic, and the cost of tech talent soared in the US, Midha’s company decided to expand in India. Midha was tasked with making that happen and quickly. It helped that his company was willing to pay US salaries to its India workforce with a salary range of USD80,000 to USD100,000.

“I went to recruiters and said if someone has passed a test from SAP or Salesforce, let me talk to them. I can offer twice the pay they are being offered,” says Midha.

Unsurprisingly, Midha quickly built a team – entirely remote and paid in dollars – of 20 people. His company still doesn’t have an office in India, but will continue to expand hiring in the country. Midha says it was easier to get a great engineer in India than in the US, where costs for good engineers are well over USD150,000.

Stories like Midha’s are just a pixel in the broader picture of skyrocketing demand for tech talent in India. For the last two years, a brutal war for talent has been waged. Tata Consultancy Services, India’s largest player, has the lowest attrition rate of about 20%. But for a company with 600,000 employees, that still means more than 100,000 have left over the past 12 months.

As thousands of employees leave their companies each year, it is crucial to understand where they are going. IT companies have mostly been poaching from each other — 40% of employees at IT companies are new, according to consultancy ISG. But they aren’t the only employers hunting in a scarce market. More companies are setting up technology operations in India than ever before. The Big 4 — PwC, KPMG, EY, and Deloitte — are building IT arms, startups are taking up some employees, and even domestic non-tech companies are hiring engineers.

Even though India has an abundance of fresh engineers – 1.5 million graduates every year – most of them are not employable without months of additional training. So the demand for talent continues to outstrip job-ready supply. As a result, higher attrition will likely continue to be the new normal for the industry.

Running in place

To understand IT hiring, it is best to differentiate between gross hiring and net hiring. It works like this. Assume IT company A has 100 employees and 30 resigned and left the company. So to maintain its 100 headcount, the company has to hire 30 new people to replace those who left. This is called “backfilling”. Then, to meet additional demand, the company needs to hire 20 more people. So, its headcount stands at 120, but its gross hiring was 50 and its net hiring was 20. In effect, the companies have to run to stay in the same place.

In FY22, the IT sector employed about 5 million people. Gross hiring in the period was 1.5 million people. Where did they go? Consultancy firm UnearthInsights has some estimates.

Between 85% and 88% stayed within their industry segment. So the overwhelming majority moved between TCS, Infosys, Cognizant, Accenture, and other IT-services companies. Infosys’s CFO Nilanjan Roy puts it best. “My lateral [hire] is someone’s attrition, and someone’s lateral (hire) is my attrition,” says Roy.

Between 7% and 10% moved to the technology arms of foreign companies that have been set up in India — think JPMorgan’s tech arm, or that of retailer Target, or even carmaker Daimler. These are called global capability centres (GCCs). As of FY21, there were over 1,430 GCCs in India, which employed about 1.3 million people. By FY25, there are expected to be about 2,000 GCCs in the country, which will employ 1.8 million-2 million people, according to the National Association of Software and Services Companies.

About 2%-5% moved to product companies such as Google, SAP, and Microsoft, and 0.5%-1% moved to startups.

“While the absolute number who have moved to startups is small, the huge salaries they offer have a knock-on effect on the industry. A major reason for margin compression in IT has been the renegotiations and retention bonuses,” says Gaurav Vasu, founder at UnearthInsight.

More fishers, same pool

When the pandemic forced everyone into their homes, it proved to be a large-scale experiment in remote working. There was also a dramatic increase in the need for digitisation, which naturally caused an increased demand for talent. The two factors made it extremely attractive to move tech operations to India or expand existing operations.

“Historically, India was a destination for transaction-based services. Now with the talent ecosystem and upskilling that has happened, more high-value work is coming to the country and that is what the GCCs are looking at now,” says Sunil Chemmankotil, CEO of specialised staffing firm TeamLease Digital.

For example, US investment bank JPMorgan has about 40,000 people in technology and operations in India. Last year, it hired 4,000 people. This year, that number is going to be 5,000, with employees in India taking responsibility for some global tech initiatives.

Last month, US luxury retailer Neiman Marcus opened a technology centre in India with 60 employees, and plans to scale to 600 in the next 18 months or so.

"My lateral [hire] is someone’s attrition, and someone’s lateral (hire) is my attrition."

— Nilanjan Roy, CFO, Infosys

This is not great news for the Indian IT-services companies — every global centre set up is work that could have been outsourced to them — and in addition, they now have to deal with their employees getting poached.

“The question is not just the poaching but of skilled talent. GCCs need experts in their domains — say, banking or retailing — so they are very selective in their recruitment. Individually, they do not hire a lot, but cumulatively they are having an impact,” says an executive with an IT-services company.

GCCs are also increasingly opting to recruit from campuses to build the kind of talent pipeline that IT-services companies have created. Besides, they also haven’t escaped the ravages of the ‘Great Resignation’, with attrition rates in the range of 17%-20%.

Even large consulting companies have joined the fray. The Big 4 created 55,000 new jobs in FY22, out of which 52,000 were in the technology function.

“Deloitte, as well as others in this sector, have gone into technology consulting in a big way. This requires a lot of people and that is triggering the huge demand for manpower,” SV Nathan, partner and chief talent officer, Deloitte India, told The Economic Times.

With the number of employers increasing, demand for talent is going to stay higher than in the past. This may result in higher attrition. “For large companies, in a normal scenario, the attrition rate will be 13%-15%. In a high-demand scenario, it will be 15%-18%,” says Vasu of UnearthInsight.

Increasing supply

TeamLease Digital predicts that the tech industry will create an additional 5 million jobs, while the domestic non-tech industry will create another 1 million technology jobs in the next five years. This demand cannot be fulfilled without improving the supply side of the equation.

The new education policy could help improve engineering education in the country. For example, students will need to complete three internships rather than the current one. More immediately employable engineers would help, because of the over 1.5 million engineers that graduate, only 5 lakhs find jobs, according to TeamLease.

Non-IT graduates are also being seen as potential sources of talent. With the rise of low-code, no-code platforms and ed-tech companies making upskilling courses easily available, they can be turned into an effective talent pool.

The third prong is automation. IT companies have been trying to break the link between revenue and headcount by investing in automation and platforms. But they haven’t yet shown much impact, as revenue per employee has not substantially increased in nearly a decade.

Should the supply-side issues be solved, India would be in a position to truly capitalise on its demographic dividend. Tech talent is scarce globally, the jobs are high-paying, and each tech job creates ancillary ones.

“In the next 10 years, we are going to have more employable youth, which will act as a further supply chain. So, we will never have a situation where the demand and supply are the same or we will have more supply than demand,” says TeamLease’s Chemmankotil.

(Graphic by Manali Ghosh)(Originally published on Aug 16, 2022, 12:00 AM IST)

17.2. ‘Nearly Half the Cos in Telecom Sector Plan to Hire Freshers by Year-end’

ET, 19 Aug. 2022

The telecom sector ranks third in the intent to hire freshers for the July-December 2022 period, or the second half of the year, at 47%, according to a TeamLease report, underlining the need for fresh talent as the sector prepares for 5G rollout.

“The highly competitive telecom sector is witnessing a transformative moment in their journey with the launch of 5G networks and F2H (fibre-to-home),” said Shantanu Rooj, founder and chief executive, TeamLease EdTech.

The telecom department has completed the allocation of the 5G spectrum to the telecom providers and the three largest players are readying themselves to launch their services.

“This requires a rapid ramp-up of their teams at the entry level. Finding lateral talent is expensive and efficient; hence, most players are depending on fresh hires who can be trained for new emerging job roles,” Rooj said.

Hiring intent refers to hiring plans a company/sector has for a certain time period. So when one says 65% hiring intent, it means 65% companies in that sector have conveyed that they plan to hire people in a particular quarter.

The 47% intent to hire for H2 has grown from 41% in the first half, and from 25% in the second half of 2021. The staffing firm released a report detailing trends in fresher hiring across sectors on Thursday. The top two sectors by intent to hire freshers were information technology and ecommerce. Technical and digital profiles continue to be in demand in the telecom sector, as the ecosystem prepares itself to roll out 5G services.

As per Teamlease, the telecom industry plans to invest ₹3,345 crore in rolling out the phase 1of 5G networks, which includes investment in talent.

18.1. Koita Center for Digital Oncology established to improve cancer care using digital technologies

ET Gov. 29 Aug. 2022

Cancer care is evolving rapidly, and digital tools are becoming indispensable in enhancing cancer care worldwide.

The National Cancer Grid (NCG), an initiative of the Union government through the Department of Atomic Energy and its grant-in-aid institution, the Tata Memorial Centre, has established the Koita Centre for Digital Oncology (KCDO) to promote the use of digital technologies and tools to improve cancer care across India.

The KCDO has been set up with the contributions received from the Koita Foundation, which will support it for five years. The Tata Memorial Centre and Koita Foundation formalized the collaboration by signing an MoU at the Tata Memorial Hospital in Mumbai on Friday.

Cancer care is evolving rapidly, and digital tools are becoming indispensable in enhancing cancer care worldwide. KCDO will play an important role in driving digital transformation across the cancer care continuum. KCDO will support NCG hospitals in sharing best practices in digital health, adopting digital health tools, and driving many common technology initiatives including EMR adoption, healthcare data interoperability, reporting and analytics.

KCDO will also enable NCG and NCG hospitals to pilot and adopt new technologies – including artificial intelligence, machine learning, big data, automation, cloud, and mobile – which will benefit hospitals, doctors, patients and consumers.

Embracing digital tools like telemedicine and remote patient monitoring will help make care more accessible, especially in semi-urban and rural areas. AI-assisted clinical decision support tools will help improve doctors’ ability to provide better care, and mobile patient engagement apps will help patients with medication management and better compliance with care guidelines.

Similarly, the use of healthcare data analytics across hospitals will enable tracking and benchmarking of clinical outcomes and the effectiveness of different treatment and care pathways. KCDO will also partner with academic and research organizations to promote research and development in cancer care.

“The Koita Centre for Digital Oncology is a very timely initiative. It will help create an innovation ecosystem across hospitals, healthcare technology companies, academic institutions and research organizations to address challenges in cancer care. The positive impact of this ecosystem can extend beyond cancer care,” said Dr RA Badwe, Director, Tata Memorial Centre.

“We are very excited about the establishment of Koita Centre for Digital Oncology in NCG. The new centre will enable more than 270 NCG partner hospitals to assess and deploy digital tools to enhance cancer care and make it more accessible and affordable across India”, said Dr C S Pramesh, Convener of the NCG.

“Koita Foundation is privileged to partner with the NCG and supports its Digital Health initiatives and drive meaningful improvement in cancer care across India. KCDO can also help NCG hospitals adopt the Ayushman Bharat Digital Mission (ABDM) platform, which is a key national priority,” said Rizwan Koita, Director, Koita Foundation.

The mandate of the NCG is to create a network of cancer centers, research institutes, patient groups and charitable institutions across India with the objective of developing uniform standards of patient care for prevention, diagnosis, and treatment of cancer; providing specialized training and education in oncology and facilitating collaborative basic, translational and clinical research in cancer. NCG today has over 270 hospitals in its network across India.

18.2. Canadian Fund OTPP to Buy Sahyadri Hospitals

ET, 18 Aug. 20

Ontario Teachers' Pension Plan Board (OTPP) said on Wednesday that it would acquire a significant majority stake in the Sahyadri Hospitals Group, the largest private hospital chain in Maharashtra.

Ontario Teachers' Pension Plan Board (OTPP) said on Wednesday that it would acquire a significant majority stake in the Sahyadri Hospitals Group, the largest private hospital chain in Maharashtra. A statement from the Canadian pension fund didn’t disclose the financial terms, but according to people in the know, the hospital chain has been valued at ₹2,500 crore.

Existing investor Everstone Group, along with key management and founders, will retain a minority stake in Sahyadri Hospitals. This will be OTPP's first private equity buyout in India. ET reported first on May 25 that the sell-out process of Sahyadri Hospitals had entered the last lap with OTPP and Max Healthcare Institute emerging as the frontrunners.

Sahyadri has eight hospitals with 900 operating beds and another 300 critical-care beds. The hospital chain has plans to grow capacity by over 500 beds during the next five years. Its network of hospitals, with 2,000 clinicians and 2,600 supporting staff, is concentrated around the city of Pune.

Everstone Capital had bought Sahyadri in 2019 from leading neurosurgeon Charudutt Apte. Though the deal size was not disclosed, ET reported that it was valued at ₹1,000 crore. “We are pleased to acquire a majority stake in Sahyadri Hospitals, which is our first control private equity buyout in India, and our fourth major investment in the country over the last 12 months. We believe we can leverage our significant global experience in the healthcare sector to help scale the company into a national healthcare provider in the coming years,” said Raju Ruparelia, senior managing director, private capital, Asia-Pacific at the Canadian pension fund.

OTPP is the administrator of Canada's largest single-profession pension plan, with $189 billion in net assets as on December 31, 2021.

“Sahyadri is the largest multispecialty healthcare service provider in the West India corridor. Sahyadri's unique hub-and-spoke model and best-in-class clinical capabilities have truly touched patients' lives,” Everstone managing director Puncham Mukim said.

Sahyadri is the latest investment by Ontario Teachers' private capital team in the healthcare business. Its recent investments include the Asia Pacific Healthcare Group, New Zealand's largest pathology network; Abano Healthcare, the operator of one of the largest trans-Tasman dental groups; and Acorn Health, a US provider of applied behaviour analysis therapy for children diagnosed with autism spectrum disorder.

According to Invest India’s Investment Grid, the government initiative to showcase opportunities across states and sectors, there are nearly 600 investment opportunities worth $32 billion (₹2.3 lakh crore) in the country’s hospital/medical infrastructure sub-sector.

19.1. Jio Satellite Gets DoT Nod to Start Broadband-from-Space Services

ET, 13 Sep. 2022

A Reliance Jio unit has just received a key approval from the Department of Telecommunications (DoT) to start high-speed broadband-from-space services.

Jio Satellite Communications Ltd (JSCL), a Jio unit that had applied for a global mobile personal communications by satellite services (GMPCS) licence earlier this year, will shortly be issued a letter of intent (LoI) by the DoT, a top government official told ET.

Jio’s satellite arm is the second company to receive DoT approval to deliver broadband services via satellites after Bharti Group-backed OneWeb.

At press time, ET’s query to Reliance Jio remained unanswered.

Earlier this year, Mukesh Ambani-owned Jio Platforms (JPL) – Jio’s parent -- and Luxembourg’s SES, a global satellite communications company, formed a 51:49 joint venture, Jio Space Technology Ltd, to deliver broadband services in India through satellites. Jio Space Tech is developing extensive gateway infrastructure in India to provide satcom services within the country and will use multi-orbit space networks using a combination of geostationary (GEO) and medium earth orbit (MEO) satellite constellations.

Competition has intensified in India’s relatively nascent broadband-from-space services segment with Jio, Bharti-backed OneWeb, Nelco, a Tata group satcom company, and Canada’s Telesat looking to launch satellite broadband services in India. Elon Musk’s SpaceX and Amazon’s Project Kuiper have also shown interest in serving the world’s second largest telecom market.

Experts see India as a key emerging market for broadband from space services with an over $1 billion near-term annual revenue opportunity. E&Y estimates India’s satellite services market would grow to $4.7 billion by 2025 – from nil now - as nearly 75% of rural India does not have access to broadband as many locations are still without cellular or fibre connectivity.

19.2. Daikin India sets up third R&D centre with Rs. 500 crore (US$ 62.9 million) investment

IBEF, August 18, 2022

Daikin, a Japanese electronics giant, has invested Rs. 500 crore (US$ 62.9 million) to build its third R&D facility in India. Beginning in 2023, the facility in Neemrama, Rajasthan, will be operational.

The centre, which covers 24,000 square metres, will have over 250 engineers working on customized items for the Indian market. 22 testing facilities and labs will be a part of the new centre, which will also improve Daikin's manufacturing capabilities and enable it to meet international export demand.

“We at Daikin strongly believe in constant innovation and this R&D centre will help us to put channelized effort in conceptualization of products that are technologically advanced and sustainable”, said Mr. Srinivas Reddy, Vice president, R&D, Daikin India.

Consumer demand is growing for upgraded goods with greater energy efficiency and eco-friendly refrigerants. According to the company, it collaborates with a variety of consultants who are experts in specialised domains including electronics and HVAC design on a global scale.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

20.1. Whole Body Digital Twin technology will reverse diabetes naturally

ET Gov. 19 Aug. 2022, Prof. A. Jhunjhunwala, IIT Madras Research Park

Shahid Akhter, editor, ETHealthworld, spoke to Prof. Ashok Jhunjhunwala, President, IIT Madras Research Park to find out about healthcare technologies that are being developed for commercialization, at Healthcare Technology Innovation Centre (HTIC).

Health Technology Innovation Center

We have a very interesting organization called Healthcare Technology Innovation Centre. The focus is in the area of healthcare where you can develop technology which can be commercialized?Healthcare Technology Innovation Centre (HTIC), a multi-disciplinary R&D centre, is a joint initiative of Indian Institute of Technology Madras (IITM) and Department of Biotechnology (DBT), Government of India, that brings together technologists, engineers, doctors and healthcare professionals, industry and government to develop healthcare technologies for the country. The vision of HTIC is to develop technologies that create, impact and drive innovation in healthcare and be a leader known for technical excellence and collaborative spirit.

It has an associated incubator called Med tech incubator (MTI), and a large number of young people along with engineers and doctors are getting together to take technology to help people get better health. The MedTech Incubator’s prime focus is to build a community of healthcare entrepreneurs who can deliver innovative, affordable and valuable Medtech solutions and products for the Indian society. The incubator provides wide-ranging support to start-ups and entrepreneurs working at the intersection of healthcare and technology. MTI also extends its support by providing a stimulating platform for healthcare enthusiasts to get their hands working on premature ideas.

Incubating MediBuddy

For example, one of the companies that we incubated at IIT Madras incubation cell in this place is “MediBuddy”. We had incubated about 8 to 9 years back and has now become a very large company. In fact, we invested only ₹4000 in that, and recently the founders came back and gave us an exit for those shares at 14 crore rupees.

Incubating Twin Health

Well, there is another company that we are working with, “Twin health”. This company is about reversal of diabetes and the way they go about doing it is very different. It is not about putting more medicines and things like that. It is more about listening to the body.

We use sensors to listen to the body and artificial intelligence to create a body twin such that as I eat, sleep, move around, the sensors pick up the signals from my body and my body twin is simulated in computers using artificial intelligence.

So, everything that is happening in my body is also happening in that body Twin. And the biggest idea is that once you learn to do that, you really don't need medicines for cure. What you need is some healthy diet; it figures out what food is good for me, what food is not good for me at present, and advises me to eat only good food.

When you walk, what happens? When you exercise, what happens? What kind of exercise is good for you? Your breathing, you are sleeping but what is good for you, and what is not good for you?

By just advising me and using more like nature care, it enables one to completely reverse diabetes. Initially when I heard about it, I didn't believe it, but since then I have put a large number of people that I know, including myself in the program.

I don't have diabetes, but I had a little bit of high blood pressure and what I found is an immense difference.

It immediately starts curing you. It's a very different kind of company, a very different kind of medicine system, which is going to become the dominant medicine system in future. Healthcare by nature’s cure, by listening to the body and doing the right action of food, exercise and sleep.That's what we need. Twin Health is very much part of this whole ecosystem.

R&D: Developing technology for commercialization

For years, R&D institutions have largely pursued research and development to publish papers. The publication of papers was the key aspect. It is only in recent years that the focus has shifted. Research and development should result in commercialization so that the products we use in India are actually the ones that we develop in India, and that is a direction that we are working on. IIT Madras Research Park is focused in that direction. It's a lot of hard work. I think it's not something that you can replicate overnight.

You really need to understand that R&D for commercialization has not happened in the country since independence. Only in the last 12 to 15 years have we been moving in that direction. Of course, we are the first ones to do it. There are many others who will do it because they are capable people, but it takes time, and we are helping other institutions to move in this direction, and hopefully we will accelerate the whole initiative. That is what will make India stand up.

20.2. Karnataka: Artificial Intelligence, financial education compulsory subjects for second-year degree students

ET Gov. 26 Aug. 2022

Artificial Intelligence will be introduced to students of all streams, except those of Computer Science who will have an advanced module of the subject.

Two subjects - Artificial Intelligence, and financial education and investment awareness - have been made mandatory for second-year undergraduate students in Karnataka regardless of their choice of stream under the National Education Policy, which was rolled out in the state last year.

The first batch of undergraduate students, who joined in 2021-22 after NEP was introduced, will study these subjects in their second year of the course. NEP says the subjects can be taught either in the third or fourth semester. Artificial Intelligence will be introduced to students of all streams, except those of Computer Science. CS students will have an advanced module of the subject.

Financial education and investment awareness is the second subject that's mandatory in the second year. Higher educational institutions will have the freedom to decide which of the two subjects will be introduced in the third and fourth semester.

The programme will be a two-credit course, with 15 hours of theory and 30 hours of practical teaching. During the first year, digital fluency was a mandatory programme with 60 marks for summative assessment and 40 for formative assessment.

The National Association of Software and Service Companies (Nasscom) will roll out the programmes in AI and financial awareness by preparing the syllabus and teaching lecturers. Any teacher from a higher educational institution can be chosen to teach the subjects. Training will be provided by Nasscom for the same. Universities and colleges will be asked to identify the teachers and send them for training.

Some stakeholders have questioned the mandatory feature of the programme. "When NEP speaks about giving students the freedom to choose the subjects, why are some programmes mandatory," wondered a lecturer of a public university.

INDIA AND THE WORLD

21. Indian single malts are having their moment in the sun

ET, 19, Aug. 2022

Indian distillers are beginning to match the quality and the taste of Scottish brands. They are beginning to be placed with pride in collectors’ cabinets.

He would rather not be named. A very senior executive in the Indian corporate sector, he has more than 100 bottles of the choicest single malts in his collection. I am at a single malt tasting session and so is he. “Please don’t talk about my identity. There will be a raid on my home,” he says with a chuckle! Till now his collection was all the stuff they distil in Scotland, but the pandemic brought a change. “I started trying out Indian single malts and became a fan. Now I am stocking up on them,” he says.

Rishi Sunak may be having a tough time trying to win over the British population, but Indian single malt brands are having a slightly easier time winning hearts around the world. Amrut Distilleries has been awarded numerous awards since its launch in 2004, including Whiskies of the World, Gold Outstanding in the category Malt: Single: Smoked, Whiskey and Barrel Consumer Choice Awards – Gold in 2021, and the World Whiskies Award multiple times over the years.

“We are always running out of supply. Whenever we launched a batch of single malts with any of our variants — and we have 19 variants of single malts in our portfolio — we had 100% sales of all the bottles soon after the retail launch,” says Thrivikram Nikam, joint managing director of Amrut Distilleries.

Maintaining supply is a challenge also because of India’s climatic conditions.

Like all spirits, single malts and whiskies go through some evaporation because of the porousness of the oak barrels in which they are kept. The loss of the liquid from the cask is called angel’s share. Generally, in a country like Scotland, where temperatures are low for most of the year, the loss to angel’s share is 2% of the total yearly volume. However, in a tropical country like India that would go up to 8%-10%. Which means Indian single malts can never be aged beyond a certain number of years.

A lot has been spoken about this in the industry, how it may impact the final product, and how Indian single malts are perhaps not of the same calibre as their Scottish counterparts. However, that hasn’t stopped or deterred Indian manufacturers, who over the last decade or so have flooded the markets with a variety of options.

“Indian single malts sold around 100,000 cases last year, and Amrut holds 55%-60% of the market. Comparing the prices of Indian and international single malts in international markets, we have [Amrut] variants that are sometimes more expensive than a Glenlivet. Our classic single malt is pegged at the same price as a Glenlivet 12 years in international markets,” says Nikam.

According to spirits market analysis firm IWSR, the total whisky volume in India exceeds 200 million 9 litre cases, and grew by 17% in volume and 23% in value in 2021 over 2020. IWSR forecasts that the category will grow by about 8% in volume, and 9% in value in India in 2022. Whiskies account for more than 50% of the spirits consumed in India.

Out of the total whisky market, industry sources estimate that less than 1% by volume and nearly 1.5% by value is driven by premium options, which include premium blended whiskies and single malts. The latter have benefitted greatly from the premiumisation of alco-bev consumption in India.

Following Amrut Distilleries and Paul John Distilleries, Radico Khaitan, India’s largest alco-bev manufacturer, launched a single malt called Rampur in 2016.

The success and continuous growth of single malts in India is attracting even foreign companies to make some of their brands in India. UK-based Diageo, one of the leading spirits companies in India, launched Godawan, a made-in-India artisanal single malt in March 2022. Smaller distilleries have also launched single malts, such as Indri by Piccadily Distilleries of Gurugram.

If Indian distillers keep this up, the glens could be burbling with Indian single malts.

22. Celebrating Madras, a City that Led the Way for Indian Food

ET, 28 Aug. 2022

Local history enthusiasts started promoting the date to remember the city’s heritage, so often overlooked in national memory, and in further danger of being forgotten with the advent of modern Chennai. There’s now a whole week of events.

Madras Week grew out of Madras Day, August 22, the date on which, in 1639, Madraspatnam was purchased by the East India Company. Local history enthusiasts started promoting the date to remember the city’s heritage, so often overlooked in national memory, and in further danger of being forgotten with the advent of modern Chennai. There’s now a whole week of events.

The food of Madras/Chennai also gets overlooked. It’s reduced to idli dosa, with nods to biryani or chicken 65, the spicy, deep-fried chicken nugget invented by the city’s Buhari’s restaurant, along with less well-known chicken 90 (like 65, but finished in butter). The city can’t compare, it’s often felt, with other metros for depth of food traditions. Even within south India, Hyderabad seems to have the edge.

But as an itinerant Madrasi — since I’m talking history here, I’ll stick with the old name — I know the story is quite different. Madras’s food history is rich, unexpected and includes one of the world’s foundational books on gastronomy. Culinary Jottings for Madras by Colonel Kenney-Herbert was published in 1978 by Higginbotham’s, established in the city in 1844, and still running, as India’s oldest bookstore. Culinary Jottings doesn’t really talk about Indian food, though it gives good ways to use Indian ingredients. The recipe for drumsticks, or moringa pods, to be boiled, insides scraped out, briefly cooked with cream and an egg yolk and then served on toast brings out the deeply savoury, umami taste of this often overlooked vegetable.

At heart, Culinary Jottings is about how to dedicate your life to eating well — and not in an excessive or obsessive way. Most of the recipes are presented as part of balanced menus, with vegetables as valued as meats. KenneyHerbert dedicates a whole chapter to omelettes, describing how he learned to make a perfect one in a ‘dak bungalow’ in the depths of Bellary district, with only the most rudimentary equipment on hand.

The lesson that comes through is that one can be anywhere in the world, but can still eat well by making the most of local and seasonal ingredients, judiciously adding a few imported products, but above all, being mindful about how you source, cook and eat. Culinary movements have been built, and restaurants launched based on this thinking, but Kenney-Herbert was one of the first to articulate it well, based on his many years in Madras.

Madras emphasised education, and this resulted in waves of young men (and, later, women) taking up clerical jobs, first in the city, and then across India. Their wives went with them, to set up home in cities with unfamiliar food cultures. They wrote home for recipes and many of these requests went to S Meenakshi Ammal, a young widow known for her cooking skills, and with many nieces who wanted advice.

Ultimately, Meenakshi Ammal collected her recipes into a book, Samaithu Paar meaning “cook and see”, which showed in patient detail how to make Tamil Brahmin food. Samaithu Paar also showed how cooks in Chennai managed to selfpublish cookbooks. Another outstanding example is Usha’s Pickle Digest, a compendium of 1,000 pickle recipes compiled and published by Usha Prabakaran, from her Madras home. With so many of Madras’s women working out of the home, they were always looking for innovations to make cooking easier. They embraced gadgets like pressure cookers, pioneered by the city’s TTK firm, and then wet grinders to reduce the burden of grinding idlidosa batter. Today, readymade batter is picked up from local stores, and again, Madras was at the forefront of India’s retail revolution.

Madras was also the first Indian city with Korean and Japanese restaurants, like the outstanding Dahlia, which actually grows and makes most of its ingredients. Today, we are all talking about diversity, sustainability and cooking local, but for over 383 years, Madras has always led the way.

23. In-transit cold treatment accepted by Indian authorities for South African apples and pears

Eurofruit, 25 Aug. 2022, Fred Meintjes

South African apple and pear growers are celebrating a breakthrough in their supply to India after it agreed to allow in-transit cold treatment for the South African fruit entering the country.

Seen as a major impediment in the expansion of the presences of South African apples and pears in India, the new deal will shorten the process to the market and reduce costs.

“We received confirmation on the agreement of in-transit cold treatment between the two countries, said Sachin Khurana, South Africa’s industry body Hortgro’s representative in India.

Jacques du Preez, general manager trade and markets at Hortgro, told Fruitnet last week that the announcement of the deal was imminent. “This is one of the biggest single factors that will advance our presence in India,” he said.

Khurana announced on Monday that more details would be announced later today. It comes as the South African pome sector made further gains in India during the 2022 season.

“We still have 10 to 12 weeks of sales left, but we can already record shipments of more than 1m cartons of South African apples to India and the same for pears – with still some way to go,” Khurana noted.

“Our fruits are now penetrating new sectors of the Indian market, including non-metros which is the next engine of growth as we look to expand on the base built during last few years.

“We have worked hard on the in-transit cold treatment deal and that should really help the industry increase volumes to India.”

Khurana added that South African apples and pears have already achieved a significant space for themselves in the Indian market. “I believe we will only grow from here. Be it the traditional mandis (markets), leading retailers, e-commerce platforms or neighbourhood grocery stores, we are present everywhere.

“That has helped us make a mark in the mind of Indian consumers. Our pears are omnipresent, and I believe our apples will exceed pear volumes soon.”

According to Khurana, Royal Gala is the most popular variety among apples, but Big Bucks (Flash Gala) and Top Red also do very well in India. In pears, consumers favour Packham’s Triumph, Vermont Beauty, and Forelle.

“Some of the varieties are sold at different times of the season and have their own following in markets in India. We hope to be able to grow our market even further next year and really take our produce to all corners of the country,” he noted.

“We have also seen consumers experimenting with different varieties and that presents an opportunity for us to grow some of the other varieties as well.

“Most importantly, next year will be our first full season shipping our fruit under in-transit cold treatment agreements and this will be a game changer.”

24.1. IIT offshore campuses may be named India International Institute of Technology

ET Gov. 1 Sep. 2022

The 17-member committee headed by IIT council standing committee chairperson Dr K. Radhakrishnan recommended that faculty members from the IITs in India may be sent on deputation abroad.

IITs to come up abroad should have less than 20 percent Indian students and ownership of starting the foreign campus should rest with the particular higher educational institute (HEI), according to recommendations of a committee set up by the Centre early this year for the global expansion of IITs, which also suggested that the offshore campuses of India’s premier engineering colleges be called “India International Institute of Technology”.

The 17-member committee headed by IIT council standing committee chairperson Dr K. Radhakrishnan in its report submitted to the ministry of education recently also recommended that faculty members from the IITs in India may be sent on deputation abroad.

“Deputation of faculty from an existing IIT to campus abroad is important in formative years of the new institute as it may gain substantially from experience of the faculty here,” said a senior official of MoE.

“In its report (the panel) suggested that the ownership of starting an IIT abroad should rest with the particular HEI. The new institutes could be called 'Indian International Institute of Technology at xxxx (location),” said the official. The overseas IITs abroad may be free to decide the student strength and the percentage of Indian students in those institutes will have to be less than 20%.

According to MoE sources several IITs have been receiving requests from the middle-east and south Asian countries to set up their campuses. While IIT Delhi is considering setting up a campus in UAE, IIT Madras is exploring options in Sri Lanka, Nepal and Tanzania.

IIT Delhi earlier explored setting up an “International Institute of Technology Research Academy” in Mauritius and signed a memorandum of understanding with the Mauritius Research Council. But in 2014, objections were raised by the then human resources development minister Smriti Irani and the project was shelved. The panel has recommended creating a generic system like IIT, NIT or IISER, under which a series of institutes can be established as the current IIT Act does not provide for setting up an IIT outside the country.

Explaining the rationale behind the suggested name, the official said the name is sufficiently close to IIT with “international” added to clarify that the institute is located outside India.

The panel has recommended that there could be more than one model of establishing the institute depending on the specific location such as campuses by individual IITs, a group of IITs and HEIs, individual or group of IITs in collaboration with a reputed host university. The IITs abroad may follow the semester system and the start and end dates of semesters may be tuned in line with the academic calendar. As per the report, the number of students should be such that the course is economically viable.

24.2. ‘It’s not India’s Decade, It’s India’s Century’

ET, 2 Sep. 2022

India will be the world’s future talent factory as it will have 20% of the globe’s working population by 2047, said Bob Sternfels, CEO, McKinsey & Co. The Indian economy seems to have weathered the pandemic fairly well, despite hitting a few rough patches in the last two years.

India will be the world’s future talent factory as it will have 20% of the globe’s working population by 2047, said Bob Sternfels, CEO, McKinsey & Co. The firm's 13th global leader added that it will not only be India's decade, but India's century, with all key elements in place — a large working population, multinational companies reimagining global supply chains, and a country leapfrogging at digital scale—to achieve something special not just for the Indian economy, but potentially for the world. McKinsey plans a “disproportionate commitment” to India and that’s why its global board will be coming to the country in December, Sternfels said. The firm has 5,000 people in India, a number he wants to double to 10,000. In an exclusive interview with ET's Vinod Mahanta, Sternfels talks about the India opportunity, the recent scandals that have hit McKinsey, the state of the global economy, inflation woes and the threat of deglobalisation. Edited excerpts:

The Indian economy seems to have weathered the pandemic fairly well, despite hitting a few rough patches in the last two years. How do you see India's growth story unfolding in the context of a deceleration in global economic activity?

Many people have said that it's India’s decade. I actually think it's India’s century when we look at some of the raw ingredients here. India is the future talent factory for the world. By 2047, India would have 20% of the world’s working population. And with supply chains being reimagined, it has massive potential for India across all aspects of manufacturing. The third is digitisation. India has leapfrogged on the digital scale. All those are the raw materials to do something special for not only the Indian economy but potentially for the world.

So does that optimism translate into more investment in McKinsey India?

I’m bringing our global board here in December because we are going to make a disproportionate commitment to India. We are about 5,000 people in India now—both in India practice and global centres—and it’s my aspiration to get to 10,000. We are about 40% women today, and I want that to be 50%. We turn 100 in 2026, so my question is, what can we be in 2026 in India.

Our growth in India has consistently been in double digits and is underpinned by these great client references. Our people processes are global and when we look at the performance of our Indian partners globally. They are disproportionately successful. I think that there’s an opportunity to be not just India’s decade but India’s century and in the process of doing so, how does it become a lighthouse for the rest of the world for McKinsey? I think the client relationships lead in many ways in terms of the trust that we have got. At the same time, you will hear from me frequently that I'm not happy with where we are, and I don't believe those two things are mutually exclusive. I think you can be leading and still not be happy. And what I'm not happy with is that I'm not happy with the speed. I want us to move faster. The idea of doubling our innovation is critical to staying ahead of our clients.

Are we on the edge of a global recession?

It’s easy to list all the things and even more, like the increasing socio-economic divide in almost every country in the world and increasing labour shortages. But there are some things that make these times unique. Tom Barkin, the president of the Richmond Fed and a McKinsey alum, told me, “Bob, remember, it's hard to have a recession if you have zero structural unemployment.” We have zero structural unemployment in the US and in most parts of Western Europe. So you are running at a very low unemployment rate. Equally, I think you have started to see some of those inflationary signs start to taper off. Oil prices have started to fall below $100 a barrel. Also, in certain supply chains, you are seeing a massive influx in secondary sales in the US and Europe. So goods that were once going through primary channels are now going through discount channels because of supply chains catching up. So I would say the signals are mixed.

One of the things that I did over the past year was get out and talk to clients, and I have talked to over 500 of our CEOs in the last year. CEOs now want to play offence and defence at the same time. So defensive measures... shore up the balance sheet, increase efficiency, and ensure the company can withstand shocks. They are also saying, my balance sheet is healthier than it was in either of those downturns. And I want to actually take two or three big strategic bets so that I can come out on top.

In your opinion, is inflation transitory or here to stay?

I don’t have a crystal ball on inflation, but I actually think that you could see a world that is more transitory if these combined forces all play out. Combined forces of prudent interest rate policy, application of technology, which actually helps solve the supply chain side faster, and pragmatic approach to solving some of these tough choices like energy resilience, where if we adopt more brown to green.

Do you think the impact on global trade due to geopolitical fragmentation will be temporary?

I think this is one of the existential questions of our time. The order we all grew up in is coming to an end. And what a lot of people are saying is that what's going to give way is that it's going to go to deglobalisation. And I think that would be a big mistake. When you look at the costs, the World Trade Organization just came out with a report that said if the US and China decouple, in a very conservative calculation, 5% of global GDP gets wiped away. And it disproportionately impacts the bottom 40% of society. So there's a massive cost associated with this. I think, quite frankly, it's up to business leaders to start to articulate what can follow globalisation that doesn't default to deglobalisation.

The problems that we all want to tackle—growth, climate, talent—don't stop and start with borders. It's hard to solve these within the boundaries and borders of individual states as opposed to some form of integrated solutions.

Are you getting more questions about rising geopolitical risks after the Ukraine-Russia conflict and the China-Taiwan tension?

Very much so. How do you stress test your organisation to say how resilient it is to these types of shocks? And moving away from risk management to resilience muscle building is one of the big conversations that we are having with all CEOs.

25. The Man Who Tried To Free Countries

ET, 1 Sep. 2022

Mikhail Gorbachev’s life was bookended by Stalinism. In the middle was his attempt to nix it. When he was born in 1931, Joseph Stalin’s ‘collectivisation’ had already led up to the Great Famine of 1930-33. By the Great Terror of 1937, the tone for life in the Soviet Union was set. When Gorbachev died on Tuesday, a Stalinist in Russia seeking to regain ‘lost glory’ — for which he blames Gorbachev squarely — continued his invasion of an old Soviet republic.

Hindsight, a funny mirror, portrays Gorbachev as the man who ‘suddenly dismantled’ a global power and counterpole to a superpower. But, in 1985, when he took over from the 73-year-old Konstantin Chernenko, the country was already well on the low road to penury, not helped by a bleeding war in Afghanistan. Chernenko’s predecessor, Yuri Andropov, as KGB chief in 1968, had shared classified data on the conditions of Soviet society with him. So, the 54-year-old already knew there was only one way for his country not to implode: by opening up (glasnost) and restructuring (perestroika).

What followed was a free election in 1989 — not seen since the one after the 1917 revolution the Bolsheviks threw out — which accelerated the unfurling. Gorbachev had overestimated his ability to control a project that almost none in the leadership agreed with. A little after Gorbachev visited India in 1986 and 1988, and after signing a landmark deal in 1987 with Ronald Reagan to scrap intermediate-range nuclear missiles, back home, asset-stripping was already on. By Boxing Day 1991, the Soviet Union was gone. As was the Cold War. Gorbachev’s plan was an open, socialist society with ex-Soviet and Warsaw Pact countries free of Stalinism in its various formats. In that, he failed. But not for lack of trying.

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AAPI

Pages

Monday 19 September 2022

NEWSLETTER, 20-IX-2022

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

– AGRICULTURE, FISHING & RURAL DEVELOPMENT

– INDUSTRY, MANUFACTURE

– SERVICES (IT, R&D, Tourism, Healthcare, etc.)

NEWSLETTER, 20-IX-2022

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

- AGRICULTURE, FISHING & RURAL DEVELOPMENT

- INDUSTRY & MANUFACURE

- SERVICES (Education, Healthcare, IT, R&D, Tourism, etc.)

INDIA AND THE WORLD