This Budget - Kerala Chamber of Commerce and Industry

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04|Kerala Chamber Business News|
Editorial
KCCI Borad of Directors 2016-2017
Cover story: Will Union Budget revive
the economy?
Infrastructure, housing reforms in Budget boost
spirits of India Inc.
Rail Budget 2016: Some reformist moves,
but worrying math
Kerala Budget: Promises ahead of elections
Mind the gap: Boosting a climate of
entrepreneurship
Kerala wants a Ministry for commerce
Chamber events
Moody’s, Nomura, OECD all gung ho about
India growth
Moody’s cuts China outlook to ‘negetive’,
Cites reform and fiscal risks
Govt. introduces bill to promote quality of
consumer products and services
FBI VS Apple, Judgment decides the future of
privacy in Smart phones
Why India needs a female boardroom revolution
India is Asia’s bright spot, feels Singapore Inc.
Poor air quality kills 5.5 million worldwide annually
New plan for capital goods
Large promoters can impede loan recovery:
RBI Governor Rajan
How Vijay Mallya inherited an empire and
proceeded to lose it
Renault to export hot-selling Kwid from
India to Brazil
Chamber Info: Trade fairs in India & Abroad
News makers
Jaitley Made it Simple, but Powerful
Managing Editor
| K.N.Marzook
Editorial Board
| Raja Sethunath
India has been looking for a revolutionary Budget, but Arun
Jaitley made it simple, without much bombarding declarations
| K.M. Abdulla
and excitements to the masses. It is considered a mixed bag
| Dr.Thomas Nechupadam
and the impact may not be visible in a quarter or so. India is
| Rajesh Nair
Secretary,KCCI
poised for a growth among global economic slowdown and the
| A.J.Rajan, I.A.S (Retd.)
| G.Venugopal
| K.Balakrishnan
| M.J.Avarachan
Union budget is considered a key tool in reviving the economy.
In his third Budget presentation, the Finance Minister’s priority was fiscal
discipline. He shunned populism and focused on infrastructure development,
Edited, conceived and designed by
[email protected]
especially on roads and highways. Housing sector will get a fillip, and farm credit
Printed at Sterling Print House, Ernakulam
also will have certain impacts.
Vol. No. VI | Issue No. V | Price Rs. 25
The views and opinions expressed herein are not
necessarily those of Kerala Chamber of
Commerce and Industry
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Finance Minister opted to take from the rich and raised the surcharges for the
taxable income of more than one crore to 15 percent from 12 percent and he kept
the income tax slabs unchanged. Services will be costlier as FM imposed 0.5
percent cess on services.
In his last budget, Jaitley has proposed to abolish layers of exemption in the
corporate tax system and to bring down corporate income tax to 25 percent from
30 percent in next four years. However, it was not fulfilled in the new budget.
There is a remarkable change in allocation for investing on youth, skills and
innovations. Start ups will get a fillip and innovations will surely make a difference
in India’s future. The proposals to provide 100 percent tax excemption for the first
three years will help boost growth of young entrepreneurs and startups. It will
create more jobs too. He declared 1700 crore for Pradhan Mantri Kaushal Vikas
Yojana envisaged for Skill Certification and Monetary Reward Scheme. He proposed
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ambitious plans to cover 2.5 crore borrowers through Prime Minister’s Mudra
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38,500 crore in Jaitley’s budget and it stands the highest allotment in the budget,
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Yogana with a proposed amount of 1.8 lakh crore.
Mahatma Gandhi National Rural Employment Guarantee Act or MNREGA got
though the scheme is originally introduced by the UPA government. Agriculture
and farmers welfare programmes will get 35,984 crore. Total outlay for infrastructure
is 2,21,246 crores. The much hyped Swatch Bharat Abhiyaan got 9000 crore.
He offered black money holders to come clean by paying a penalty of 45 percent
and the compliance window would be a part of the income tax disclosure scheme
from September 2016. Further, he declared comprehensive bankruptcy code as
part of “nine pillars” for the financial sector reforms.
It will be fine, if the aim of the finance minister to pave a solid path for development
is fulfilled. Let’s hope for that.
K.N.Marzook,
Managing Editor
Chairman
Mr. Raja Sethunath
M/s. Govind Furnishing
Kacheripady Jn.
Chittoor Road
Cochin
Vice Chairman
Mr. M.P. Deepak
Kumar Shetty
M/s. Jai Narayana
Shipping Co.
Marine Drive, Cochin
Vice Chairman
Mr. K.M. Ahmed Iqbal
M/s. Oriental Metals
Vysali Junction
N.H. Byepass,
Cochin
Director - Finance
Mr.K.Mohammed Basheer
Basco Foods (India) Private
Limited, Anjikkath Tower,
Edappally,
Cochin
Mr.K.N.Marzook
M/s.Colombo
Umbrella House ,
Broadway, Cochin
Mr.K.M.Abdulla
M/s.B.H.Mammi,
Iron & Steel Merchants,
N.H.Bye Pass, Cochin
Mr.Mathew
Kuruvithadam
M/s.Kuruvithadam
Agencies, Cochin
Mr. K. S.Usman
M/s.Lens & Frames,
Shanmugham Road,
Cochin
Mr.Antony Thomas
M/s.Kottaram Trading
Company,
Cochin
Mr.Biju C.Cherian
M/s. Cherian Varkey
Construction Co.(P) Ltd.,
K.P.Vallon Road, Cochin
Mr.V.P.Shyad
M/s.National Timbers,
Kathrikadavu, Kaloor,
Cochin
Mrs. Rekha Prakash
M/s.Paper Combines,
Kateson Building,
M.G.Road, Cochin
Mr. Shibu Prabakaran
M/s. S.S.Agencies.,
DCB Bldg, Inside Fort,
Trivandrum-23
Mr.Riyaz U.C
M/s.Datamate Infosolutions
(P) Ltd.,
Kakkanad, Cochin-682 037.
Mr. Ashik Parol
M/s. Morsy Consultants
Khaleej Residency,
Mini Byepass, Calicut
Secretary
Mr. A.J.Rajan IAS (Retd.)
Alinchuvattil House,
Valanjavattom, Thiruvalla.
|Kerala Chamber Business News|07
This
Budget
>>111% jump
in allocation for
agriculture
>>More money
for MGNREGA;
Health cover for
EWS
>>Rich to be
taxed more
What does
it mean?
>>After 2
droughts
agriculture
pushed to a
corner
>>India Inc’s
top line hasn’t
jump-started
E
The big
question
>>Will we
get out of
the mess?
verybody understands the importance of the
The general strategy was to shift population from
General Budget, but probably not the Budget
villages to urban areas, increase the share of
itself. To sum it up in a line: a Budget is usually
manufacturing and services in the country’s gross domestic
an exercise in which the finance minister of India robs
product and make India less dependent on agriculture.
Peter to pay Paul.
For the last 25 years - since the beginning of
‘Liberalisation’ - successive finance ministers robbed
Peter, the farmer, to pay Paul, the businessmen.
This Budget was different: Agriculture was given a
111% raise in allocation (Rs 35,983 crore against the
previous Budget’s Rs 17,004 crore).
The NDA government, known for pro-market policies,
presented a Budget whose focal points were farmers and
the rural economy.
“This kind of Budget should
have been given last year
when Indian farmers needed
support. Now much of the
ground has been lost. But we
hope this will give some
respite to the rural economy
that has been shattered due
to the mistakes of the past”
Finance Minister Arun Jaitley mentioned the word
‘farmers’ 32 times in his speech. He sought to do away
with the criticism that his government was responsible
for their distress.
India has faced two successive droughts: something
that happened only once earlier - in 1965-66 and 196667 - after independence.
No wonder, the sector has grown only 1.5% until now
in the 12th Plan period (2012-17) against the target of
4%.
The back story
The NDA government sought to turn the Indian
economy around only through investment and incentives
government needed to tax the rich and industry more.
for industries.
That’s what Jaitley did.
This lead to a crash in the demand, which accounts for
The finance minister taxed high net worth individuals,
68% of the Indian population. And the corporates
Hindu undivided families and firms with a dividend income
supposed to benefit from tax sops reported declining
of more than Rs 10 lakh with an additional tax at the rate
revenue.
of 10%.
India, Inc’s top line shrank for the fourth consecutive
He also increased Securities Transaction Tax on sale
quarter during October-December. Aggregate sales
of an Option in Securities, where Option is not exercised,
revenue of 4,084 companies listed on Indian stock
from 0.017% to 0.05%.
exchanges declined 5.5% compared with the same three
months in 2014.
As a result, the corporate sector held back investment,
which has hurt job creation.
In such a situation, the government had to take it upon
itself to provide a momentum to the rural economy. It
The investors community did not like it and the
markets ended in the red (down 152 points at 23,002).
In the era of odd and even policy, Jaitley decided to put
an infrastructure cess on all small petrol/LPG/CNG cars
(not exceeding 4 metre in length) with an engine capacity
below 1200 cc.
allocated Rs 87,765 crore for rural development, including
Diesel cars with engines not exceeding 1500 cc will
Rs 38,500 crore under Mahatma Gandhi National Rural
bear an additional duty of 2.5%. Sports Utility Vehicles -
Employment Guarantee Act (MGNREGA). That just
the love of India’s rich - have been punished with an
reiterates the fact that those in power no longer considers
additional 4% ‘high-capacity’ tax. An additional 1%
the scheme to be an “epitome of failure”.
luxury tax has been slapped on all cars above Rs 10 lakh.
The economically weaker sections have been taken
Apart from this, tax on corporates with a turnover of
care of by providing for a health insurance of Rs 1 lakh
more than Rs 5 crore has been maintained at 30% - much
per family. Senior citizens from the section will receive
against last year’s promise of reducing it to 25% in a
a health cover of Rs 1,30,000 per annum.
gradual manner.
The allocation for roads and infrastructure was
increased to Rs 97,000 crore (from Rs 70,000 crore).
Will this budget revive the economy?
One can only hope. As Ajay Vir Jakhar, chairman of
All social sector spending has been allocated for
Bharat Krishak Samaj, said: “This kind of Budget should
without tinkering with the fiscal deficit target of 3.5% of
have been given last year when Indian farmers needed
the GDP.
support. Now much of the ground has been lost. But we
Where does the money come from?
hope this will give some respite to the rural economy that
However, to dole out such allocations to farmers and
the poor without borrowing more from the market, the
has been shattered due to the mistakes of the past.”
Business News Corporation
Finance Minister
Arun Jaitley’s
attempt to boost
the rural
economy,
affordable housing
and infrastructure
got thumbs up
from majority of
India Inc, a few
others remained
apprehensive
about the
imposition of
excise duty on
jewellery
products.
Here is businessmen said about Budget 2016-17:
Harshavardhan Neotia, president, FICCI
employment creation over time. The state of the agriculture
The finance minister has made a strong attempt to
sector on account of two consecutive years of monsoon
pump prime the rural economy and the infrastructure
failure was precarious and it deserved the attention that
sector. This would yield dividends and we foresee a
was needed. Additionally, we see a lot of emphasis on
multiplier effect in the form of demand generation and
affordable housing segment which will also result in
forward and backward linkages and thus propel growth.
Subho Ray, president, Internet & Mobile
Sumit Mazumder, president, CII
Association of India (IAMAI)
We believe that the focus on macroeconomic stability,
The association has welcomed the proposal to set up
boosting domestic demand and continued economic
a dedicated e-marketing platform for agriculture and
reforms would further cement India’s position as a
hopes that the innovation of the digital industry will be
haven of growth in a fragile global economy. Low-cost
harnessed for this. The association has also welcomed
housing will be a huge demand multiplier, and CII
move to expand the digital literacy scheme in rural India
welcomes the many initiatives on this.
and setting up of a Higher Education Financing Agency.
Sunil Kanoria, ASSOCHAM
Anuj Puri, chairman and country head,
We are happy that our suggestion to increase
JLL India
deduction on exemption for income tax on interest paid
While three of the real estate sector’s major expectations
on home loans has been partly accepted as there is an
- increased house rent allowance deduction, removal of
additional exemption of Rs.50,000 for housing loans up
dividend distribution tax (DDT) from real estate investment
to Rs.35 lakh, provided cost of house is not above Rs.50
trusts (REIT) and boost to affordable housing by allowing
lakh which will give a boost to the real estate sector.
100 percent deduction on profits made by entities
Moody’s
constructing them - have been addressed, the Budget
Looking ahead, the 2016-17 budget target appears to
offered no financial protection from project delays to
recognize that pressures on the expenditure side are
home
mounting, given the significant costs of funding
implications for the real estate sector in India was
government employee wages and benefits, as well as
removal of DDT from REIT.
bank recapitalization costs.
Shivendra Bajaj, (ABLE-AG)
Praveenshankar Pandya, chairman, Gems and
Jewellery Export Promotion Council
buyers.
The
biggest
announcement
with
Although the soil health card scheme, Fasal Bima
Yojana and common e-market platform will help in
We are apprehensive of the introduction of excise
improving the agriculture sector in the country, it is
duty on jewellery products for the first time in several
disappointing to see no encouragement for agri-biotech
decades. In India, jewellery is largely produced by the
research by public or private institutions for augmenting
SMEs and they are not equipped to follow the rigid
the sector.
compliance of excise norms. The imposition of excise
Manish Sharma, MD, Panasonic
would severely impact jewellery production in India
India and South Asia
resulting in loss of employment to the uneducated but
We are happy with the government impetus on Make
skilled jewellery workers.
In India by providing tax and duty benefits and these will
Sunil Duggal, CEO, Dabur India
go a long way in strengthening the manufacturing
I am quite happy with the government continuing the
capabilities of India. Another important milestone has
rural focus and looking at enhancing allocation to MNREGA
been the use of technology to increase accountability of
(Mahatma Gandhi National Rural Guarantee Act), besides
the government, authorities, and courts is a welcome
focusing on skill development for the rural populace.
step and will provide the right fillip to fast track procedures
These initiatives would help promote entrepreneurship
and will become the growth engine of the country.
among the rural populace, add jobs and put more
Bhairav Dalal, partner- Tax,
disposable income in the pockets of the rural consumer,
PwC India
improving their standards of living and ensuring continued
‘Housing for all’ seemed to be the flavour of the real
rural demand for branded consumer goods.
estate part of budget today. The direct and indirect tax
Kamlesh Rao, CEO, Kotak Securities
benefits for affordable housing should catapult the smart
Union Budget 2016 has struck a fine balance between
city initiative. Additional deduction of interest would
fiscal prudence and providing growth boosters to the
incentivise the first home buyers to own the houses.
economy. Higher securities transaction tax on options
Vinay Khattar, Edelweiss Broking
could be a cause of concern as it pushes up the cost for
derivative participants.
A stable fiscal picture with appreciable spending on
>>>
infrastructure and a consumption boost from pay
commission, OROP (One Rank, One Pension) along with
further room for the Reserve Bank of India to easy
monetary policy may give stock markets some reasons
to rebound.
Union Budget 2016 has struck a
fine balance between fiscal
prudence and providing growth
boosters to the economy
Sandeep Ganguly, CEO, U2opia Mobile.
With the amendment to the Companies Act to ensure
speedy registration and a boost to start-ups, we believe
that this budget will spearhead the growth of a robust
Pankaj Munjal,CMD,
Hero Cycles
The emphasis on road infrastructure in particular
start-up environment across the nation.
would pave the way to a robust economy as well. At Hero
Saurabh Srivastava, co-founder,
Cycles, we are committed proponents of cleaner modes
Indian Angel Network
of transport and in this light the pollution cess on vehicles
It would have been great if capital gains tax regime
is an extremely encouraging step.
for unlisted companies was aligned with that for listed
Zoya Brar, MD, founder,
companies, at least for investments made by SEBI
Core Diagnostics
registered AIFs (Alternative Investment Funds). This
On the health care front, the announcement of district
would end the discrimination against domestic venture
dialysis centers is very very beneficial for the thousands
capital funds as foreign funds anyway pay no capital
of people struggling with kidney disease. Improving
gains tax by investing from Mauritius and other treaty
supply of drugs by setting up 3,500 drug stores will also
friendly countries.
help the health care sector.
Chandan Chowdhury, MD-India,
Sreedhar Prasad, partner,
Dassault Systemes
e-commerce and startups, KPMG India
We believe that programs such as Digital India,
National Digital Literacy Mission scheme, electrification
Start-Up India and Smart Cities need a strong
of villages, as well as the enhanced focus on building
technological infrastructure that must be supplemented
roads would assist this sector in its growth in rural India.
with budgetary support from the government. The
Enhanced focus on e-enabling the farm produce market
Rs.2.31 lakh crore earmarked for the infrastructure
is a welcome move considering the emphasis on the food
aligns well with the vision to build connected cities via
sector in e-commerce.
highways and railways.
Pankaj Mohindroo, national president,
Umang Bedi, MD,
Indian Cellular Association (ICA)
Adobe South Asia
The differential duty regime available for promoting
Specifically for the IT industry, the proposals outlined
domestic mobile handset manufacturing in India has now
in the Union Budget 2016 promise a significant expansion
been enhanced and extended for mobile handset adapters/
of the domestic market and add thrust to the
chargers, batteries and headsets/speakers of mobile
government’s overall digitisation agenda. Schemes
handsets for supply to mobile manufacturers. The domestic
like the digital literacy mission to e-educate rural
manufacture will attract only 2 percent excise duty while
households will work towards bringing more and more
imports will face 29.441 percent duty, giving a 27.441
Indians into the folds of the connected world.
percent protection to domestic manufacturing vis-a-vis
Pushpinder Singh, CEO and co-founder,
importers.
Travelkhana
Shrikant Shitole, managing director,
The initiatives and tax benefits announced for
India, Symantec
promoting the agriculture and food processing sector
Protected and secure technology infrastructure fostering
will help in lowering the cost of food and dealing with
engendering trust will be critical to success of projects
food inflation as a whole. Although we would have loved
like e-marketplace, digital vaults for certificates and e-
to see lowering of service tax on services from
procurement. Legislative backing for Aadhaar should
restaurants as it would indirectly help the food sector.
have requisite privacy provisions.
That has unfortunately not happened.
both are part of railway minister Suresh
Prabhu’s budget speech—their significance
in the budget speech is nonetheless
questionable. The budget speech should be
about the current finances of the railways
and the future vision. It should be short,
crisp and to the point.
While Prabhu indeed laid out a vision and
talked about the financial problems, more
time could have been allotted to those
important areas and less to sundry
announcements. Gross traffic receipts fell
by 8.6% from the budgeted estimates.
Freight earnings—the breadwinner of
Indian Railways—declined by almost 8%
“on account of low demand from the core
sector”. The budgeted estimates for the
next year bank on “a healthier growth in
the core sector of economy” and hence can
be equally charged with over-optimism.
Only competition and accountability can put
Indian Railways back on track
O
Bond, once said: “If you sit down on a railway
with
platform for an hour or two, you’ll have a
almost Rs.10,000 crore—it was said—was supposed to
story.” While Bond’s stories of the railways may be
be an indicator of massive public investment in railways.
delightful, the same cannot be said about the actual story
On cue, last year’s Economic Survey said: “The present
of Indian Railways. One gets to hear the sorry tale every
government can now do for the neglected railways sector
year—around the time of the presentation of the annual
what the previous NDA government did for rural roads.”
rail budget. The railway ministers, however, have become
Come this year, the GBS did not find a mention in
smarter and they narrate the better picture, leaving the
Prabhu’s speech. The reason was simple: an under-
sorry tale to the annexures.
utilization of Rs.16,000 crore. As a result, the budgetary
ne of India’s most famous storytellers, Ruskin
The gross budgetary support (GBS) was increased
much
fanfare
last
year.
The
increase
of
An analysis of the budget should be based squarely on
support this year has been slashed to Rs.34,220 crore
the question of what a budget should be. While provision
from Rs.40,000 crore last year. The deficit in expenditure
of baby foods and hot milk on stations and conversion of
in this instance was compensated by increased
station walls into murals are indeed progressive steps—
investments through partnerships.
The operating ratio target of 88.5% set last year
remains unachieved; the revised estimates come to
a figure of around 90%. The lower the operating
ratio—the ratio of working expenses to gross
earnings—the better it is as it leaves more resources
for capital expenditure. With the implementation of
the 7th Pay Commission recommendations, the
revenue expenditure will shoot up considerably and
Prabhu has been realistic in keeping the operating
ratio target at a higher level of 92% for the next
fiscal.
To be sure, Prabhu’s speech did propose some
long-term fixes for railway finances and services. His
objective of transforming Indian Railways into a firstrate service provider while growing into a customerfriendly organization is indeed commendable. He
was on target in outlining three pillars of strategy: a)
new revenues (monetizing all possible sources of
revenue); b) new norms (incorporating best
international practices including, most importantly, a
zero-based budgeting approach); and c) new
structures (revisiting all process and organizational
structures). Prabhu also wants to address the worrying
decline in modal share of freight traffic by expanding
the freight basket, rationalizing the tariff structure
and building terminal capacity.
To add to such reformist measures, a draft bill will
soon be ready to create the much-needed regulatory
structure. Prabhu also dealt with the issue of
reorganization of the railway board. However, what
was missing from Prabhu’s budget speech was how
all these measures add up to a single narrative of
greater private participation in all sorts of activities
ranging from manufacturing to operation of trains.
After all, it’s competition and accountability—and not
some band-aid applied by the government of the
day-that will ease financial distress at Indian Railways.
Prabhu avoided talking about tariffs beyond a
statement of intent to review the current tariff policy.
A competitive tariff structure for freight trains is
urgently required to arrest the slide of traffic to
roads. This should go hand in hand with the steady
elimination of cross-subsidy from freight to passenger
segment of the business. An appropriate road map to
achieve this could have been laid out. That would have
made a perfect rail budget statement for 2016-17.
With
an eye on the upcoming assembly polls, the
Congress-led UDF government in Kerala presented the
2016-17 budget, promising free rice for BPL families
and waiving tax on income from agriculture, amidst
protests and boycott by the CPI(M)-led LDF.
The budget, presented by Chief Minister Oommen
Chandy, spared the common man of any additional tax
burden, gave thrust to infrastructure development,
boost to agricultural and social sectors, besides setting
apart Rs 200 crore as subsidy to students who have
availed educational loans, but are unable to repay.
It was after a 29-year gap that the Kerala Assembly
saw a Chief Minister presenting the state budget, which
turned out to be the longest taking nearly three hours.
Chandy is the fourth Chief Minister of the state to
present the budget. Chandy took over the Finance
portfolio after former Finance Minister and Kerala Congress
(M) leader K M Mani quit in November 2015 over the bar
bribery scam.
In a bid to have ‘plastic-free Kerala’, the budget imposed
a 20% tax on all plastic bags, including non-woven
polypropylene bags and a five per cent surcharge for plastic
bottled drinks. Chandy said the government expects to
mobilise Rs 10 crore through this and the amount would be
utilised to encourage anti-plastic movements.
The budget proposed an additional resource
mobilisation of Rs 112 crore, a major portion of which
will come through one-time settlement of cases in the
registration department. The budget showed a total deficit
of Rs 2041.22 crore and revenue of Rs 84,092.61 crore.
In this year’s
Union Budget,
Arun Jaitley
may have
sprung a
surprise by
focusing the
govt’s
entrepreneurship
agenda at the
bottom of the
pyramid. But
perhaps
that’s what
the country
really needs
B
engaluru can often feel like a
that made no excuse about what its
different country. Elsewhere,
priorities were (“We have a desire to
university campuses might be on
provide socio-economic security to every
fire, debating the freedom of speech and
Indian, especially farmers, the poor and
meaning of freedom; water supply to
the vulnerable”)—there was a feeling
entire neighbourhoods might be cut off
among this crowd that something was
by angry mobs; thousands might be
amiss. After all, this government was
stranded due to once-in-a-century floods.
supposed to be start-up friendly, and just
But in Bengaluru’s coffee shops and
a month back in Delhi, Prime Minister
meeting rooms, pubs and boardrooms,
Narendra Modi had left them excited about
the conversations usually hover around
the future.
business models, go-to market strategies,
Clear the direction
traction and valuation.
In the budget , the finance minister
Sure, there are pain points, but nothing
made his stand clear about the direction
that can’t be solved by clever technology
the government wants to take. It would
and a scalable model.
look for entrepreneurship not just in the
So, it’s no wonder that in the hours
technology start-up hubs of Bengaluru,
after Union finance minister Arun Jaitley
Mumbai/Pune and the NCR, but also in
presented his third budget—a budget
smaller towns and villages, and at
manufacturing, social and informal sectors.
tech firms because they can scale up faster, and there are benchmarks
There are no unicorns (start-ups valued at
abroad. That’s a reason why they also attract foreign capital.
more than billion dollars), there.
Small and Medium
Economic activities-consumption, demand,
SMEs might account for only 17% of GDP, but they employ close
investments, entrepreneurship and jobs-are
to 40% of India’s workforce. Close to half of SMEs are based in rural
thinly distributed, and, by many measures,
areas, and could turn out to be the biggest employer of semi-skilled
inefficient.
labour, and those who are moving from agriculture to industry. (In
Some of the measures that the government
announced have the potential to correct that.
agriculture, the productivity is even worse.)
The budget has a proposal that the government would pay
And tech start-ups need not feel left out either.
Employee Pension Scheme contribution of 8.33% for all new employees
While India counts eight unicorns, six of
enrolling in EPFO for three years as an incentive to create jobs.
them are domiciled outside India. At least
However, with a provision of ‘1,000 crore, this is estimated to
three out of five tech start-ups raising money
translate to just about 500,000 jobs-a fraction of the 10 crore jobs
prefer to register abroad, because it’s easier
in five years that the Bharatiya Janata Party (BJP) promised during
there. It takes longer to start a company here.
its campaign ahead of the general elections in 2014.
While both the start-up action plan and the
The organized sector can only go so far in generating employment.
budget talks about making it easy to do business,
If we are thinking of providing jobs to 100 million people, the only
there is some way to go. Digitization might work
way to achieve that is to create more entrepreneurs, says Madan
by bringing in transparency to the process.
Padaki, who heads Head Held High Services Pvt. Ltd, which is focused
If the current process is frustrating for the
tech companies, it’s worse for manufacturing
on training rural youth.
Create entrepreneurs
firms, which have to get more clearances,
There are signs that government recognizes that. For example,
and cross more bureaucratic hurdles. Getting
the present budget talks about entrepreneurship training in 2,200
funded is difficult. While venture capital (VC)
colleges, 300 schools, 500 government industrial training institutes
firms have started looking at non-tech
and 50 vocational training centres through massive open online
investments, it’s nowhere close to the demand
courses. However, it’s not clear how helpful listening to video
for capital.
lectures would be to achieve that end. One of the more creative-if
Tech start-up founders struggling to get
tougher-ways to create entrepreneurs is through a pilot..
funding might raise their eyebrows, but there
The pilot, to be launched at two places in Karnataka, is based on
is no denying that VCs have a preference for
the principle that the best way to learn entrepreneurship is by doing
it. At the core of the project is a set of five colleges, where about 10
teachers will get orientation in entrepreneurship, and students will
help in nominating 500 entrepreneurs, defined broadly as anyone
who provides employment to at least one other person through an
economic activity. The team would then finalize 100 of them-they
could be tea stall owners, small restaurant owners, shops-to coach
them on entrepreneurial thinking.
They would also help them to eventually facilitate getting loans
from banks, expand their businesses and employ more people.
The idea is to encourage entrepreneurial thinking, and create local
success stories. Besides jobs, it could have a ripple effect, and create
even more entrepreneurs.
So, by placing the accent on value over valuation, inclusion over
narrowly focusing on tech start-ups, rurban (rural growth clusters)
over urban, Jaitley may have signalled his intent. But it’ll take much
more than just intent for India’s entrepreneurial ecosystem to
develop firm roots.
K
erala is emerging as one of the fastest growing states in the country. The
Government of Kerala has unveiled its plan to revamp the Kerala
Infrastructure Investment Fund Board with an envisaged resource of Rs.
30,000 crore to channelise and facilitate investment in the State. The government
is also streamlining the clearance procedures for the implementation of the
developmental projects. The growth pattern of Kerala has also witnessed tremendous
changes recently. According to the latest round of the national sample survey, both
Mathew Kuruvithadam
Former Chairman,
KCCI
the urban and the rural together, Kerala has the highest per capita income in the
country.
The industrial and the commercial sectors, the key players which boost and
sustain the economic growth, are now yearning for proper governmental support.
Kerala Chamber
of Commerce and
Industry’s former
Chairman
Mr.Mathew
George
Kuruvithadam
has said that a
separate Ministry
for Commerce
should be
created to
exclusively take
care of the
commercial
activities in the
State.
A cursory look at the Trend in Overall Position of State Budgets shows the huge rise
in revenue receipts and expenditure. Indirectly, it is also a reflection of the
developmental activities which impacts on the State economy.
In order to invigorate the industrial and the commercial sectors to walk in
tandem with the developmental efforts, the government needs to bifurcate the
administration and supervision of the industrial and the commercial sectors which
are now coming under the Industry Ministry.
Both the industrial and the commercial sectors have witnessed a sea-change in
the last couple of years with scores of industrial establishments and commercial
hubs coming up across the state.
The Information and Communication Technology, Education, Retail business,
Tourism and Food processing sectors in Kerala have also witnessed an amazing
boom in recent years, surpassing the estimates and expectations of the players in
the respective fields. The surge in these sectors have necessitated
of
the providing
a strong infrastructure foundation to withstand the different kinds of demands
for growth from various quarters. In order to provide the additional requirements
the government needs additional mechanism for extending the required support.
An efficient government machinery is imperative to keep up the momentum of
growth, especially of the ventures launched by the private sector.
The work in the Industry Ministry has also gone up
remitting the majority of the revenue of Kerala has to be
manifold following the dynamism in the industrial and
given more care and attention. For effectively
commercial spectrum. Separate Ministries for Industry
implementing this, a separate Ministry of Commerce has
and Commerce are warranted in order to sustain and
to be set up.
boost the volume of growth in these spheres.
The businessmen are facing a lot of problems. There
The business community is having a harrowing time
is no one to help them or to take up their problems. The
at the Checkposts and at the Clearing centres. The
formation of a separate Ministry of Commerce will go a
businessmen are always expecting speedy movement
long way in solving the problems to a large extent.
of goods and fast trading. For them time is money. So
Besides, most of the departments have Ombudsman but
there should be a helping hand in times of crisis. Only a
there is no such mechanism on the issue of commercial
separate ministry of commerce can provide this much-
taxes.
needed impetus.
The licensing system prevailing in Kerala now was old
The new government to be formed after the coming
and obsolete. Even for getting a trade license or any other
Assembly elections should definitely take a positive
licence for that matter, an entrepreneur has to run from
decision on forming a separate Ministry for Commerce.
pillar to post. He has to
At the same time, it should work in coordination with the
Industry Ministry.The Union Government has separate
Ministries for Industry and Commerce. Hence, in Kerala
also there should be separate Ministries to look after the
affairs of industry and commerce.
Majority of the revenue of the Government of Kerala
is coming from the commercial sector through trading.
As a consumer-driven state, Kerala is witnessing a
booming trend in the commercial activities, including e-
approach the local body
authorities several times to get the papers moving. The
government should think of issuing licenses online which
will save time and money for both the government and
the prospective entrepreneurs. The validity of a license
should be for five years which will generate revenue for
the government in advance, the government has the
legal right to cancel a license any time. So there is nothing
wrong in issuing a license for 5 years.
commerce. The businessmen who are collecting and
Shri Mathew Kuruvithadam, former Chairman, KCCI addressing the 58th Annual General Meeting. Also Seen: A.J Rajan I.A.S (Retd),
Secretary, KCCI. Shri Antony Thomas Director, KCCI. Shri U.C Riyas Director, KCCI and Shri K.S. Usman, Director, KCCI.
Shri Mathew Kuruvithadam, former Chairman of KCCI addressing the he Programme ‘AVARKKAYI NAMUKKU VANGAM’ organized
by GKSF and KCCI. Also Seen: Shri Hibi Eden. MLA, Shri V Vijayan, State Coordinator, GKSF. Shri E.P George Former Chairman,
KCCI. Shri Antony Thomas, Director KCCI. Shri U.C Riyaz, Director, KCCI and Smt. Pushpy Muricken, Ladies Forum Joint Convener,
KCCI.
Shri Mathew Kuruvithadam former Chairman of KCCI addressing the Valedictory function of the 10 days Training Programme on
‘How to Export’ jointly organized by KCCI and MSME. Also Seen: Shri Savio Mathew, Deputy Director, FICCI, Kerala State Council.
Shri G. Balagopal, Asst. Director MSME Training Institute, Ettumanoor. Shri G.S Prakash, Deputy Director IC MSME, Shri Antony
Thomas, Director KCCI and Shri B.R. Shivadasan Nair, MSME Training Coordinator.
‘One day intensive Training Programme on Energy Efficiency for Energy Managers and Engineers hold on 4th Mar, 2016 at Chamber
Hall.’ Shri. Raja Sethunath, Chairman KCCI addressing the One day intensive Traninag Program on Energy Efficency for Managersand
Engineers. Also seen: Shri A.M.Narayanan, Head Energy Efficiency Division, Shri T.Sankaranarayanan, Director, National
Productivity Council, Mumbai and Shri K.R. Rajan, Deputy Chief Engineer, KSEB.
Prize handing
over by Shri.
Ashik Parol,
President at the
Northern Region
Family Meet.
Also Seen: Shri
Mathew
Kottaram, Vice
President, Shri
Manzoor
Payaningal,
Treasurer and
Shri Gopiraj.
Mr. U.C. Riyaz, Director KCCI has
been Nominated in the State
Advisory Committee for Tourism
and in the Focus Group on
Marketing (Department of
Tourism)
new terminal was laid on February 1, 2014. More
than 30 different agencies were engaged in the
construction of the terminal, which was completed in
just 24 months
Excise, Ports and Fisheries Minister K Babu, who
presided over the function, said the fourth
international airport in the State would become
commercially operational in Kannur in next
September.
Food and Civil Supplies Minister Anoop Jacob; K M
Kerala CM dedicates
New CIAL
Terminal to Nation
Mani MLA; K V Thomas MP and Anwar Sadath MLA
offered felicitations.
CIAL managing director V J Kurian delivered the
Chief Minister Oommen Chandy inaugurated the new
introductory speech, while CIAL executive director
international terminal (T-3) at the Cochin International Airport
A M Shabeer presented the technical report. CIAL
Limited(CIAL),Nedumbasserry.
director M A Yusuffali welcomed the gathering and
The new terminal with 15 lakh sqft area was constructed at
a cost of less than ‘1,000 crore. The foundation stone of the
Airport Director A C K Nair proposed a vote of
thanks.
The forecasts come at a time when the Indian economy is faced with
a challenging environment in global trade, but support the Indian
government’s assessment of a 7.6 per cent GDP growth in the current
fiscal and an even higher growth rate in 2016-17
T
wo global investor service agencies, Moody’s
while Japanese financial services firm Nomura expected
Investor services and Nomura Securities, as
the country to clock a GDP growth of 7.8 per cent in the
also the club of wealthy nations OECD expect
next fiscal.
India to continue its robust growth in the coming
According to Nomura, although India’s industrial
financial year 2016-17 and the following fiscal, but want
recovery process is likely to be gradual owing to external
the government to undertake more structural reforms.
headwinds and weak private sector investment, the
The forecasts come at a time when the Indian
country is expected to clock a GDP growth of 7.8 per cent
economy is faced with a challenging environment in
in the next fiscal.
global trade, but support the Indian government’s
"India is relatively less exposed to external factors,
assessment of a 7.6 per cent GDP growth in the current
including a slowdown in China and global capital flows.
fiscal and an even higher growth rate in 2016-17.
Instead, the economic outlook will be primarily determined
Moody’s Investor Services forecast for India a ‘’stable
by domestic factors,’’ Moody’s said, adding that the large
GDP growth at around 7.5 per cent in 2016 and 2017,’’
services export sector is another source of resilience.
Similarly, the Paris-based OECD, in its
Interim Economic Outlook, pegged India’s
growth rate at 7.4 per cent for fiscal year
2016 and marginally lower, at 7.3 per
cent, for 2017.
"Growth in India is projected to remain
robust, although floods have had a
negative impact in the short term,’’ it
said.
The forecasts come just ahead of Union
Budget 2016-17, which will be presented
on 29 February.
While
Moody’s
and
Nomura
are
optimistic in their growth forecasts, they
are still subdued in comparison with the
government’s ambitious projection of a
growth accelerating in the coming fiscal
from 7.6 per cent in the current financial
year.
In
an effort to continuously support young entrepreneurs,
National Association of Software & Services (NASSCOM) announces
The CSO also seems to contradict the
finance ministry’s mid-year economic
review, which said higher growth in 201617 could be difficult.
The agencies, however, based their
assessment on more structural reforms
to support growth. The, OECD, too has
highlighted that ‘’further progress is
needed in implementing structural reforms
to ensure that positive developments are
sustained’’.
the inauguration of its first warehouse in Chennai.
The signing of MoU (Memorandum of Understanding) took
place between Department of Information Technology, State of
Tamil Nadu, acting through the Electronics Corporation of Tamil
Nadu and NASSCOM in presence of Tamil Nadu’s Chief Minister
J. Jayalalitha over video conferencing.
Commenting on the recent development, J. Jayalalitha said,
“Chennai has a strong entrepreneurial culture and has been a
great inspiration to other cities as well. We definitely want to back
this culture and support these entrepreneurs in every possible
way. We are extremely pleased to be partnering with NASSCOM
In its report, Global Macro Outlook
2016-17, Moody’s noted some constraints
on GDP growth in India. "First, business
investment in general is hampered by
banks’ balance sheet repair and elevated
corporate debt. Second, corporate pricing
power has been limited by the impact on
food price inflation and households’
budgets of two consecutive droughts,’’ it
said.
to scale up the entrepreneurial growth of the city. The city is
emerging as an important location for the startup ecosystem and
we hope that this initiative will bring a new dynamism to its
entrepreneurs.”
The warehouse which is spread across 8000 sq.ft can house
upto 50 startups allowing them to learn, work, and accelerate
their companies.
The entrepreneurs will have a list of benefits which could help
polish their entrepreneurial skills as well as polish their marketing
ability including; Connect sessions, early stage mentoring, access
There is, however, a silver lining in that
India’s economy is powered more by
sustained growth in consumer spending,
with a moderate inflation supporting supply
growth and still favourable demographics,
to resources from Google, Amazon, Microsoft, IBM cloud, Kotak
etc.
The selection would be finalized by a selection committee
comprising of stakeholders from the government as well as the
industry, viz. Government of Tamil Nadu and NASSCOM.
and a strengthening of investment flows.
oody’s downgraded its outlook on Chinese
M
It also said that policymakers’ credibility was at risk of
government debt to “negative” from “stable”
being undermined by incomplete implementation or partial
, citing uncertainty over authorities’ capacity
reversals of some reforms.
debt and falling reserves.
markets over the past year suggest that ensuring financial
to implement economic reforms, rising government
“Interventions in the equity and foreign exchange
“Without credible and efficient reforms, China’s GDP
and economic stability is also an objective, but there is
growth would slow more markedly as a high debt
considerably uncertainty about policy priorities,” Moody’s
burden dampens business investment and demographics
said.
turn increasingly unfavourable. Government debt would
Moody’s, however, retained China’s Aa3 rating, noting
increase more sharply than we currently expect,”
the country’s sizeable reserves gave it time to implement
Moody’s said in a note.
reforms and gradually address economic imbalances.
Moody’s said its rating committee had discussed
But the agency warned that it could further downgrade
China’s status at a meeting on February 9, during which
China’s rating if it saw slowing down of reforms needed
the country’s institutional and fiscal strength, as well as
to support sustainable growth and to protect the
its susceptibility to event risks, were reviewed.
government’s balance sheet.
The agency said the downgrade was driven by expectations
“It’s not a worrying sign yet, but rather a negative
that China’s fiscal strength will continue to decline, and the
direction. That’s what Moody’s is flagging,” said Trinh
fall in its foreign exchange reserves which have shrunk by
Nguyen, senior economist for emerging Asia at global
$762 billion over the last 18 months.
asset manager Nataxis.
“Without credible
and efficient
reforms, China’s
GDP growth would
slow more markedly
as a high debt
burden dampens
business investment
and demographics
turn increasingly
unfavourable.
Government debt
would increase more
sharply than we
currently expect”
“But they have room to do this. They have one of the lowest
directed at inefficient state firms and not
government debt as a share of GDP in comparison to other emerging
enough going towards smaller efficient
nations. And most importantly, as China has a current account surplus
firms,” said Julian Evans-Pritchard, China
it can fund its own fiscal expansion.”
Economist
Initial market reaction to the outlook change was muted, although
the cost of insuring Chinese government debt against default rose
slightly.
“The drivers – local government debt, capital outflows, falling
at
Capital
Economics
in
Singapore.
In a separate note on Wednesday, ratings
agency Fitch also highlighted rising risks to
Chinese banks from accelerating credit growth.
reserves and concerns on the progress of reforms – are all well
“The 50bp cut to the reserve requirement
recognized by investors and a lot of them have arguably already been
ratio (RRR) for Chinese banks on Tuesday,
priced in,” agreed Aidan Yao, Senior Emerging Market Asia Economist
together with record loan growth in January,
at AXA Investment Managers.
could point to an increasing likelihood that
High and rising corporate debt
the authorities are shifting policy to enable
A major rationale for the falling outlook, Moody’s said, was the large
stock of contingent sovereign liabilities such as state-owned
more credit-fuelled growth,” Fitch analysts
wrote.
corporations’ debt, local government debt, and the debt of China’s big
“Rolling over more debt will only delay
“policy” banks - the Agricultural Development Bank of China, China
and not resolve an expected rise in non-
Development Bank, and the Export-Import Bank of China.
performing loans.”
While Moody’s put actual government debt at only 40.6% of GDP at
The People’s Bank of China cut bank
the end of 2015, Standard & Poor’s estimated in July that corporate
reserve ratio requirements by 50 basis
debt had already risen to 160% of GDP in 2014, twice that of the United
points, releasing an estimated $100 billion
States and up from only 120 percent in 2013.
of cash for lending.
“There has been a lot of poor credit allocation, with too much credit
T
he government has introduced the Bureau of Indian
Standards Bill, 2015 in Parliament, to replace the 29
year-old BIS Act, and ensure quality of products and
services for common consumer. The new bill has been approved
by the Lok Sabha.
The new bill provides for a simpler self-certification
mechanism, mandatory hallmarking, and product recall and
product liability for better compliance to standards.
The bill proposes a simplified conformity assessment
schemes, including self- certification and market surveillance,
instead of inspectors visiting factories, thereby ending the
inspector raj on standards and improving “ease of doing
business.”
New provisions proposed are intended to promote harmonious
development of standardisation activities, enabling the
government to bring mandatory certifications regime for goods
or service considered vital from viewpoint of health, safety,
environment, and prevention of deceptive practices.
The bill has provision to prevent import of below par
products, providing mandatory hallmarking of precious metal
articles, increased scope of conformity assessment, and
enhancement of penalties and implication are the important
provisions in the Act. The new bill has also made increased
penal provisions for better and more effective compliance and
compounding of offence for violations.
It also provides for recall, including product liability of
products not conforming to relevant Indian standards.
The bill mandates registration of manufacturers of electronic
products to safeguard consumer / industry against sub-standard
imports.
Under the Swacch Bharat Abhiyan, steps have been taken to
formulate/upgrade standards on potable water, street food and
garbage disposal.
Consumer Protection Bill 2015, which seeks to simplify and
strengthen consumer grievance redressal procedure, provides
for setting up of a Central Protection Authority, which will have
powers to recall products and initiate class suit against defaulting
companies, including e-retailers proposed. e-filing and time
bound admission of complaints in consumer courts
is another important provision made in the bill.
The government adopted six points joint
action plan for consumer awareness and
protection. This will include:
>>Jointly developing and implementing
industry standard for grievance redressal;
>>All members of the industry associations to
partner with the National Consumer Helpline and
state consumer helplines;
>>Launching of joint awareness campaigns;
>>Earmarking of CSR funds for consumer
welfare activities;
>>Developing a self-regulation code; and
>>Action
against
fake,
sub-standard,
counterfeit products.
This would be launched on the World Consumer
rights day on 15 March this year.
The bill proposes a
simplified conformity
assessment schemes,
including self- certification
and market surveillance,
instead of inspectors
visiting factories, thereby
ending the inspector raj on
standards and improving
“ease of doing business.”
The government also plans to organise joint campaign with
heath, financial services and other departments for greater
consumer awareness. During the year the department of
consumer affairs intensified its multimedia campaign under the
banner of Jago Grahak Jago, with special emphasis on rural area.
An inter-ministerial monitoring committee constituted for
key sectors that matters to consumers, viz, agriculture, food,
healthcare, housing, financial services and transport, to facilitate
policy coherence and coordinated action on consumer.
To tackle the menace of misleading advertisement, a
dedicated portal gama.gov has been launched. It enables
consumers to register their grievances against misleading
advertisements in six key sectors, viz, food and agriculture,
heath, education, real estate, transport and financial services.
The complaints lodged are taken up with the relevant authorities
or the sector regulators and the consumer is informed after the
action taken.
To provide a host of consumer services under one roof,
GrahakSuvidhaKendras has been launched in six locations, which
include Ahmadabad, Bangalore, Jaipur, Kolkata, Patna and Delhi.
Such centres will be set up in every state in a phased manner.
cent during the Ninth Plan, according to the Economic
Survey 2015-16.
The percentage share of horticulture output in agriculture
is more than 33 per cent, finance minister Arun Jaitley
emphasized while presenting the report.
Over the last decade, the area under horticulture in the
country grew by about 2.7 per cent per annum and annual
production increased by 7.0 per cent. During 2013-14,
production of horticulture crops was about 283.5 million
tonnes from an area of 24.2 million hectares.
Out of the six categories, ie, fruits, vegetables, flowers,
aromatic plants, spices and plantation crops, the highest
annual growth of 9.5 per cent was recorded in fruit production
The
share of horticulture output in agriculture
during 2013-14. Production of vegetables has increased
has increased to more than 33 per cent over the
from 58.53 million tonnes to 167. 06 million tonnes between
last decade while the area under horticulture
1991-92 and 2014-15.
grew by about 2.7 per cent per annum and
annual production increased by 7 per cent.
India witnessed sharper increase in acreage in horticulture
crops compared to food grains over the last five years (from
The scenario of horticulture production in
2010-11 to 2014-15) the area under horticulture crops
India has been very encouraging and the share
increased by around 18 per cent compared to an expansion
of horticulture in the annual plan outlay for
of area under food grains by 5 per cent during the period.
agriculture and allied activities has increased to
Production of horticulture crops has outpaced the production
4.6 per cent during the Twelfth Plan from 3.9 per
of food grain since 2012-13.
Hackers from
Russia and China
have already
expressed their
desire to let the
government have
access to Apple’s
data via a
backdoor. Installing
a backdoor would
essentially mean
that anyone with
access to the
loophole would be
able to do so
I
t’s the most talked about debate in the technology
them, and ensure future devices have this facility for law
industry in 2016: FBI vs Apple in US courts. The
enforcement officials.
results of this intense hearing could result in a
What is encryption?
landmark verdict that determines the future of how we
Encryption was originally invented by use of the military,
perceive encryption, privacy and user data in the
intelligence and defense only. Encryption scrambles
future, not just in Apple or in America, but throughout
communication/data from source to the receiver to make
the world and across all devices. This started from a
sure no middle man, if any that somehow manages to tap
spiral of tragic events because of which the FBI wants
this data, can make any sense of it without the required
access to the iPhone owned by Syed Farook, who with
key. In simpler words, data over the internet and in smart
his wife killed 14 people at the Inland Regional Center
phones is encrypted with a password, fingerprint or other
in San Bernardino, California, in December before
personal identification methods that prevent unauthorized
being killed by law enforcement. FBI in its fumble to
access, keeping our data and devices securer and private.
unlock the iPhone quickly, accidently reset the password
Why is the Government interested
of the phone, which made it stop sending data over the
in encryption unlocks?
cloud. Now the contents of the phone are locked
For legal reasons, if law enforcement wants access to
through Apple’s strong encryption, which is so privacy
your data they would need to break through the encryption
protected that not even FBI can unlock/hack it. They
locks. However, since devices are so advance and brilliantly
thus demanded Apple to either install a software that
encrypted today, the governments does have the proper
logs them inside or send an expert to do the same for
technical skill to do so. They’ve thus demanded to have
permanent access to the devices, for legal
abuse all powers given to them eventually. This also means all
purposes.
your personal photographs, messages, emails, snapchat images
What’s a backdoor?
and personal records can be in the hands of a law enforcement
A back door is a remote access given
official in seconds. This jeopardizes your digital identity, business
regardless of the front end security. For example
secretes safety and privacy.
you have the world’s most secure device which
How does it affect an international/Indian Entrepreneurs?
ensures no one with as big as possible tools can
Hackers from Russia and China have already expressed their
break through the door. However police argue
desire to let the government have access to Apple’s data via a
this was they cannot gain access if you’re breaking
backdoor. Installing a backdoor would essentially mean that
the law either. So they demand to have a
anyone with access to the loophole would be able to do so. Now if
universal key which will give them access to your
there’s a way that lets the law officials do so, it’s just a matter of
personal device and data. This violates the
time before anyone rogue also does so. Imagine the methodology
assurance
give
leaks out to Chinese hackers and they remotely clone your entire
consumers saying their data is safe with them.
phone – complete with bank accounts, pictures of your loved ones,
How does this affect the average user?
emails, Facebook password, Snapchat IDs and location data. It
devices
and
companies
Now if the government has access to your
can shut down or defame an entire business in no time!
device regardless of the front end security, it will
As the trail is till proceeding in courts, there’s not much what an
have unstoppable power to do so. Regardless of
average user can do to combat this, but all we can do is patiently
the case, history has demonstrated given enough
wait and hope the judgment rules out in favor of privacy. Let’s hope
power the government and law enforcement will
for a fair verdict.
KCCI
House
joined hands with the “Nallapadam
Challenge
Programme”
of
Thoppumpady Our Ladies School and donated
3 houses for the home less poor Ladies. Mr.
Raja Sethunath, Chairman KCCI, Mrs. Sheela
Kochouseph, Ladies Forum Convener and
Mrs. Ann George wife of Mr.E.P.George,
former Chairman KCCI handed over the
keys. The programme was inaugurated by
Mr.Hibi Eden MLA. Mr. Dominic Presentation
MLA was also present.
BSE 100
companies
with
women on
their
boards
experienced
double the
level of
return on
working
capital
I
nternational Women’s Day-the global celebration
financial benefit as well—which ultimately is how
of the immense strides which have been made to
businesses measure themselves.
further gender equality. However, this also provides
Different skill sets
a perfect time to reflect on the amount of work still
I have been a search consultant for 15 years, helping
needed to ensure gender parity in every aspect of the
my clients look for highly competent leaders to transform
business world.
their companies. There are times when my clients will ask
Context in India
me to specifically look for women candidates, as they
Despite India being the second country in the world
to have a female head of government, corporate firms
value the diversity they bring to their often all-male
management teams.
have been slow to follow this example. Article 16 of the
Women bring a different perspective to leadership,
Constitution is clear in stating that “there shall be
and can form more widely skilled and creative executive
equality of opportunity for all citizens in matters relating
teams. Research from the Commonwealth of Nations has
to employment or appointment to any office”.
shown that women have a more participative management
However, this has not manifested itself in equal
style, and tend to be more inclusive and collaborative in
representation at the highest level. If you gathered
their decision-making. They are also likely to have
together the women CEOs from India’s BSE 100
greater social sensitivity and are less willing to take
companies, you would be able to fit them in a car—there
impulsive risks.
are only five. The situation is equally concerning among
As a professional and a mother of two, I frequently
the BSE 500 firms, with only eight women leaders. This
have to juggle a range of professional and personal
should be of concern to all businesses; not just because
tasks—simultaneously responding to demanding clients,
gender parity is morally right but because it has a
managing events and organizing school bake sales. With
the added pressure that comes with today’s
always-connected world, a leader’s ability
to multitask is invaluable, and women are
more naturally adept at this. Blending
women’s skill sets across organizations
and leadership teams can create a more
innovative culture that fosters greater
loyalty between employees and their
company.
Different perspectives
India
has
only
26%
of
women
represented in its workforce, among the
lowest percentages within Asia. On the other hand,
a significant body of research that suggests gender
women significantly impact purchasing decisions and
diversity can have a positive impact on financial
their spending power is increasing. The earnings of
performance as well as brand perception. Our own
women globally are higher than the total earnings of
research shows a correlation between diversity in
India and China combined. Women are responsible for
leadership, including women leaders, and superior
a majority of worldwide consumer spending. Considering
business performance.
that women also make up such a huge percentage of
In addition, a recent study by charity firm Catalyst
Indian customers, it seems illogical not to ensure female
showed that the BSE 100 companies with women on their
perspectives among a company’s management team.
boards experienced double the level of return on working
A significant endorsement that I personally received
capital. Research from McKinsey has also shown that
from a male colleague was that when I joined the hitherto
companies in the top quartile of gender diversity are 15%
all-male team, he appreciated the diversity I added and
more likely to financially outperform those in the bottom
more open culture that prevailed after I joined the team.
quartile.
To quote his words: “Having a lady colleague forced me
Other surveys have also linked companies with more
to modify behaviours, be more considerate and inclusive.
women on their boards to better corporate governance
I also appreciated the multifaceted talents of a mother
and more ethical behaviour, while one claimed that firms
working full-time much more.”
with at least one woman on the board have a 20% lower
Leadership teams that contain women are more likely
risk of bankruptcy. These stark figures should encourage
to be receptive to issues such as flexible working hours
all businesses to see female representation as a
and maternity leave, which can easily be neglected by
commercial imperative.
male-dominated organizations. Many of the barriers to
Looking to the future
female progression lie in outdated policies, as well as
cultural and societal barriers.
It is clear that getting female talent to the boardroom
has a solid business case, as well as an ethical one. We
For example, after I had my second child, I was back
want to be a part of this workplace revolution and our
at my desk after only three weeks—albeit with flexible
forthcoming Leaders & Daughters global initiative will
hours! Luckily I had a supportive employer and spouse,
play a major part in making this a reality.
but not all women are so fortunate in having the conditions
We’re bringing together India’s renowned leaders and
they need to succeed. Unless women are encouraged to
their talented daughters to discuss the opportunities and
break through the “glass ceiling” and achieve proper
challenges young women face today in their professional
representation, businesses will be unable to create the
lives. This International Women’s Day, we want to show
conditions and culture to ensure greater female
that diversity and inclusion isn’t just a box to be ticked,
progression.
it’s a critical way of ensuring a happy and successful
Commercial benefit
business.
Enlightened companies rightly view developing women
leaders as a momentous business opportunity. There is
B
usinesses in Singapore see India as a bright
spot, with Singapore’s direct investments in the
country crossing Singapore dollars 15.24
billion (US$11 billion), despite a generally weak
economic outlook for most of Asia, a media report
said.
Investment by firms in India is on the rise, and
companies with a presence in the country say the
India’s gross domestic product
(GDP) exceeded $2 trillion in 2014,
according to World Bank data. After
taking 60 years to reach the $1
trillion mark, the Indian economy
added the next trillion in just seven
years, the Straits Times reports
region’s second-largest economy is a challenging market
to break into but offers rich rewards.
India’s gross domestic product (GDP) exceeded $2
trillion in 2014, according to World Bank data. After
taking 60 years to reach the $1 trillion mark, the Indian
economy added the next trillion in just seven years, the
Straits Times reports.
Singapore’s direct investments in India have been
rising steadily every year, going up from Singapore
dollar 9.56 billion in 2009 to Singapore dollar 15.24
billion in 2013.
Firms in the construction and wholesale and retail
trade sectors contributed most to the increase, said
national trade promotion agency International Enterprise
Singapore.
Manufacturing, financial and insurance services, as
well as professional, scientific and technical administrative
and support services firms, have also been taking big
strides into the Indian market.
Singapore and India have been strengthening their
economic links in recent years.
Small and medium-sized enterprises (SMEs) with
operations in India are optimistic that its economy is on
the brink of lift-off, even as Asia remains mired in a
slowdown.
Oil and gas equipment supplier Chase Resource
hesitate over venturing into India.
Management sees India as a bright spot amid the
“A lot of Singapore companies are scared of moving
downbeat oil market. Its operations have since expanded
into India. It is a totally different working culture, and it
substantially, and 60 per cent to 70 per cent of the
takes a lot of patience to work there,” Manian said.
company’s business is now generated through India.
Vivian Singh, president and chief executive of the
“There is still a lot of (oil and gas) work happening on
personal computer and flash memory manufacturer
the east coast, and a lot of tenders that we have been
Strontium Technology, said despite the hurdles, the
bidding for and winning,” said director Jayanthi Manian,
payoffs can be significant. “In the past, it was important
an Indian origin businesswoman in Singapore. “It is not
to have a warehouse in every state, but e-commerce is
as bad as other markets in Asia,” she added.
growing fast in India and this helps companies like us,”
“India is an interesting market and shaping up well for
said Singh. India contributes about 30 to 35 per cent of
us. We are open to teaming up with other Singapore
the company’s sales which came in at about Singapore
companies keen on the infrastructure sector there,” said
dollar 350 million last year.”
Manian. However, she noted that Singapore firms tend to
The Cabinet Committee on Economic Affairs (CCEA), chaired by
Prime Minister Narendra Modi has given its approval for the procedure
and mechanism for strategic disinvestment. This has also been
announced by the finance minister in his budget speech.
The finance ministry has issued instructions on procedures and
processes for strategic disinvestment.
NITI Aayog will replace the
In the past, strategic disinvestment followed the recommendation
disinvestment commission by assisting
of the disinvestment commission. In a major departure, in the
the government in the divestment
approved process, the NITI Aayog would perform the role of
process by identifying central public
erstwhile disinvestment commission. In fact, the role of NITI Aayog
sector enterprises (CPSEs) for strategic
is larger as it would also identify CPSEs for strategic disinvestment
disinvestment and suggest methods for
and suggest methods for valuation of the CPSE apart from advising
their valuation apart from advising the
the government on mode and percentage of shares to be sold in a
government on mode and percentage
CPSE.
T he
The government also approved the constitution of a core group of
of shares to be sold in a CPSE.
The government today approved the
proposal
of
Investment
the
and
Department
Public
of
Asset
Management for laying down the
procedure and mechanism for strategic
disinvestment of central public sector
enterprises (CPSEs).
secretaries on disinvestment (CGD) headed by the cabinet secretary
to supervise and monitor the process of implementation of CCEA
decisions on strategic disinvestment.
The government would also appoint an independent external
monitor (IEM) to vet the process and settle grievances.
The finance ministry has also been authorised to put in place an
appropriate mechanism for protection of strategic disinvestment.
ADVERTORIAL
N
ew research shows that more than
5.5 million people die prematurely
every year due to household and
outdoor air pollution. More than half of
deaths occur in two of the world’s fastest
growing economies, China and India.
Power plants, industrial manufacturing,
vehicle exhaust and burning coal and wood
all release small particles into the air that
are dangerous to a person’s health. New
linked to air pollution will climb over the
Power plants, industrial
manufacturing, vehicle exhaust
and burning coal and wood all
release small particles into the
air that are dangerous to
a person’s health
next two decades unless more aggressive
contributor to poor air quality. Qiao Ma, a PhD student at the School
targets are set.
of Environment, Tsinghua University in Beijing, China, found that
research, presented today at the 2016
annual meeting of the American Association
for the Advancement of Science (AAAS),
found that despite efforts to limit future
emissions, the number of premature deaths
"Air pollution is the fourth highest risk
factor for death globally and by far the
outdoor air pollution from coal alone caused an estimated 366,000
deaths in China in 2013.
leading environmental risk factor for
Ma also calculated the expected number of premature deaths in
disease,’’ said Michael Brauer, a professor
China in the future if the country meets its current targets to restrict
at the University of British Columbia’s
coal combustion and emissions through a combination of energy
School of Population and Public Health in
policies and pollution controls. She found that air pollution will cause
Vancouver, Canada. ‘’Reducing air pollution
anywhere from 990,000 to 1.3 million premature deaths in 2030 unless
is an incredibly efficient way to improve
even more ambitious targets are introduced.
the health of a population.’’
For the AAAS meeting, researchers from
Canada, the United States, China and India
"Our study highlights the urgent need for even more aggressive
strategies to reduce emissions from coal and from other sectors,’’ said
Ma.
assembled estimates of air pollution levels
In India, a major contributor to poor air quality is the practice of
in China and India and calculated the
burning wood, dung and similar sources of biomass for cooking and
impact on health.
heating. Millions of families, among the poorest in India, are regularly
Their analysis shows that the two
exposed to high levels of particulate matter in their own homes.
countries account for 55 per cent of the
"India needs a three-pronged mitigation approach to address
deaths caused by air pollution worldwide.
industrial coal burning, open burning for agriculture, and household air
About 1.6 million people died of air pollution
pollution sources,’’ said Chandra Venkataraman, professor of Chemical
in China and 1.4 million died in India in
Engineering at the Indian Institute of Technology Bombay, in Mumbai,
2013.
India.
In China, burning coal is the biggest
In the last 50 years, North America, Western Europe and Japan
have made massive strides to combat
risk factors, including air pollution levels, for 188 countries between
pollution by using cleaner fuels, more
1990 and 2013. The air pollution research is led by researchers at the
efficient vehicles, limiting coal burning and
University of British Columbia and the Health Effects Institute.
Additional facts about air pollution:
putting restrictions on electric power plants
>>World Health Organization (WHO) air quality guidelines set daily
and factories.
"Having been in charge of designing and
particulate matter at 25 micrograms per cubic metre.
implementing strategies to improve air in
>>At this time of year, Beijing and New Delhi will see daily levels at
the United States, I know how difficult it is.
or above 300 micrograms per cubic meter metre; 1,200 per cent higher
Developing countries have a tremendous
than WHO guidelines.
task in front of them,’’ said Dan Greenbaum,
>>While air pollution has decreased in most high-income countries
president of Health Effects Institute, a non-
in the past 20 years, global levels are up largely because of South Asia,
profit organization based in Boston that
Southeast Asia, and China. More than 85 per cent of the world’s
sponsors targeted efforts to analyze the
population now lives in areas where the World Health Organization Air
health burden from different air pollution
Quality Guideline is exceeded.
sources. "This research helps guide the
>>The researchers say that strict control of particulate matter is
way by identifying the actions which can
critical because of changing demographics. Researchers predict that if
best improve public health.’’
air pollution levels remain constant, the number of deaths will increase
BACKGROUND:
because the population is aging and older people are more susceptible
The research is an extension of the
to illnesses caused by poor air quality.
Global Burden of Disease study, an
Cardiovascular disease accounts for the majority of deaths from air
international collaboration led by the
pollution with additional impacts from lung cancer, chronic obstructive
Institute for Health Metrics and Evaluation
pulmonary disease (COPD) and respiratory infections.
(IHME) at the University of Washington that
systematically measured health and its
K erala
Chief Minister Ommen Chandy
inaugurated the Smart City pavilion, the first
phase of Smart City project. He said that the
project report for the basic infrastructure
works of Smart city must be prepared and
also added that an additional amount would
building spread over 3.5 lakh sq.ft.
be granted for seaport and airport roads.
Admitting that the project delay has resulted in a cost escalation
The board of directors meeting also take
of about Rs. 500 crore (the latest project cost estimate is Rs.
place in the new pavilion.
2,000 crore), Mr. Chandy said that the SmartCity Kochi will be
CM said that the first phase of the proposed
implemented in a time-bound manner.
SmartCity Kochi project is expected to be
The hi-tech pavilion is made of glass and steel pipes and the
operational within 18 months. He added that
office of the Smart City will function from here till the work of the
there will be no further delay in the
Smart City headquarters is completed.
implementation of Kerala’s dream project.
The first phase of the project includes a
The pavilion would house offices of the marketing, administrative
and project management teams of Smart City.
>>>
Dubai Bureau of TV New
>>>
HH Sheikh Nahyan Bin Mabarak Al Nahyan, Cabinet Minister of Culture and
Knowledge Development, UAE giving exclusive interview to TV New.
TV New, the brain child of Kerala
Chamber of Commerce and Industry, is in it's way of growth as
it start operations at Dubai focusing Middle East. Dubai bureau
starts functioning with a view of
highlighting progressive happenings, opportunities and critical
evaluation of economic scenarios.
TV New is reaching throughout
Kerala through KCL networks,
Asianet cable networks, Den networks, Siti cable and other regional cable networks to above 30
lakhs households and over two
core viewers. Presence in GCC
countries through e-Vision network and Du, the IPT Network
enables TV NEW to reach the NRI
community broadly. Pitching the
digital platforms make the channel a forerunner in future evolution.
Dubai Studio of TV New
>>>
RBI had discussed with the banks
and their views had been taken
into account.
“We have made adjustments
and the final structure will not be
a difficulty for them”, he said.
Large
promoters have the strength to ‘impede any action’ taken by banks to
recover stressed assets, Reserve Bank Governor Raghuram Rajan said , while
emphasising that banks need to quicken the pace of recovery process and not
On requirement of capital by
nationalised banks, he said that it
would depend on the profits,
growth in assets and the extent of
postpone it.
dilution of government stake in
“In some cases, banks have been late in taking action.
“There are also many impediments as well and large promoters are strong
them, he said.
“The exact requirement will
enough to impede any action,” Rajan said.
Speaking to reporters after the central bank’s board meeting here, he said
that banks have a number of ways to deal with the problem of stressed assets.
depend on what assumptions one
is making”, Rajan said. Regarding
Friday’s board meeting, Rajan said
“The idea is not to postpone the day of reckoning.
“But banks have the wherewithals to accelerate the process to recover the
that discussions were held on
global and domestic economic
assets,” he said.
Rising non-performing assets or bad loans, especially in case of public
sector banks, have been a cause of concern for RBI as well as the government.
Central Bureau of Investigation examined United Breweries Group Chairman
Vijay Mallya in connection with its probe into alleged loan default of Rs 900
concerns as well as financial
literacy.
He said that Reserve Bank of
India’s intention was to supply
the market with plenty of liquidity.
crore (Rs 9 billion) taken from IDBI bank.
Mallya, accused of not repaying loans taken from several public sector
banks for now defunct Kingfisher Airlines, had been declared a wilful defaulter
“All instruments are available
with RBI for short-term, mediumterm and long-term liquidity”, he
by State Bank of India.
Regarding change in the guidelines for calculation of base rate, Rajan said
said.
V
ijay Mallya, who turned 60 in December,
isn’t doing too badly.
Sure, everyone takes swings at him.
And some banks have termed him a wilful
defaulter.
But the man—who on last month said he was
stepping down as non-executive chairman of
United Spirits Ltd, the former crown jewel of
his shrunken empire—gets to walk away with
$75 million that Diageo Plc, which bought a
majority stake in the company, partly from
Mallya, will pay him. Diageo has also agreed to
drop all claims connected to some very serious
charges of alleged financial irregularities in
United Spirits under Mallya’s watch.
Mallya, who has been downgraded to a
former billionaire by Forbes, now doesn’t really
have a business group to call his own. His
holding company UB Holdings now has 4%
stake in United Spirits; he is no longer the
largest shareholder in United Breweries; and
he has lost management control of Mangalore
Chemicals and Fertilizers Ltd.
Vijay Mallya was born in 1955 to Vittal
Mallya, the son of an army doctor who quietly
built an empire acquiring companies. He was
the antithesis of his son and shunned the
limelight,
so
much
so
that India
Today magazine, in a 1982 cover story (a year
How Vijay Mallya
inherited an
empire, made it
bigger, had fun,
lost an empire,
and walked away
into the sunset
(almost)
before his death) said he was almost like Howard Hughes, the famed,
Apart from Berger Paints, he bought a
but reclusive American businessman.
large engineering firm (Best and Crompton)
By 1982, as India Today described him, Mallya Sr was “the undisputed
in 1988; a dying firm called Malabar
king of the beer, liquor and processed foods industries. His stable of
Chemicals and Fertilizers in a cut-price
companies include United Breweries, McDowell and Carew, he has a
deal in 1990; and media businesses such
virtual monopoly of the market for squashes, jams, lime juice cordial
as The Asian Age and the publisher of Cine
and ketchup (owning both Kissan and Dipy’s), commands 75% of the
Blitz, a Bollywood magazine.
domestic pesticide market (Finit), and heads companies that turn out
Malabar
Chemicals
morphed
into
Singer sewing machines, Cadbury chocolates and some of the most
Mangalore Chemicals and Fertilizers, which
commonly used drugs (Hoechst and Roussel)”.
was bought by Zuari Fertilisers and
Kissan is now owned by Hindustan Unilever Ltd whose subsidiary
Chemicals Ltd last May after another
Brooke Bond acquired it in 1993. Cadbury was brought back by the
takeover battle involving Mallya. UB
parent.
Engineering (formerly known as Best and
Crompton) flourished for a while but is now
another defunct UB company after being
starved of funds since 2012.
Much of Mallya’s efforts and money,
though, went into the liquor and beer
business, and his bets proved to be wildly
successful.
United Spirits is now the world’s largest
liquor firm by volume and sold 120 million
cases last year; while United Breweries,
the maker of Kingfisher beer, is India’s
biggest brewer, far ahead of rivals such as
SABMiller.
Over the course of his career, the twicemarried
Mallya
built
deep
political
connections (he became a Rajya Sabha
member in 2002) and drew plenty of envy
Indeed, the company was entrenched enough in the consumer
and enmity. His battle with Manu Chhabria
space to consider launching a cola. That launch, Thril, marked Vijay
is legendary. Mallya was arrested in 1986
Mallya’s entry into the limelight.
for allegedly violating foreign-exchange
He never left.
rules; the allegations were linked to a
Mallya Jr (whom this article will henceforth refer to as just Mallya)
takeover battle between Mallya and the
was groomed for the top job by his father and spent time in the US
Dubai-based businessman Chhabria for a
working for Hoechst and Jenson and Nicholson (a paints company he
liquor company called Shaw Wallace. Mallya
would one day buy, and then sell).
was released within a day but Chhabria
But in 1983, Vittal Mallya died at the age of 59, and a 28-year old
Vijay Mallya was named chairman and CEO of the UB Group.
won control of Shaw Wallace. Mallya would
have the last laugh though—in 2005, he
At the time, UB sold about 2.85 million cases of liquor per year, and
bought Shaw Wallace for ‘1,300 crore from
its beer sales were lower than the likes of Golden Eagle and Mohan
the Chhabria family after his rival’s death
Meakins.
included
in 2002. He also struck a deal with Scottish
pharmaceuticals, agrochemicals, paints, petrochemicals and plastics,
and Newcastle in 2004, which, at the time,
batteries, food and carbonated beverages and a pizza chain.
seemed like a sweetheart deal. Although
The
conglomerate’s
other
businesses
Over time, Mallya either shut or sold the pharmaceuticals, batteries
and the food and beverages businesses. He spent money diversifying.
S&N would own almost as much stake as
>>>
him in United Breweries, it would let him run the
allowed foreign direct investment (FDI) in airlines in
company the way he deemed fit, and also give him
September 2012.
access to its brands.
That deal marked the beginning of an expensive
acquisition spree for United Spirits, topped by the £595
million deal for Britain’s whiskey maker Whyte and
Mackay in 2007.
But Kingfisher, which had never made a profit,
never flew again.
No one knew it then, but that appears to have
been the beginning of the end game.
The following three years got successively worse
Along the way, he built a reputation for the fast life
for Mallya. He sold stakes in a bunch of businesses.
and flashy parties. He even bought a yacht (the Indian
Some (such as the shares he sold in Cadbury) were
Empress). And in 2003, his UB Group launched the
residual stakes, but he was also forced to sell a
Kingfisher Calendar, which featured top models in
majority stake in United Spirits to Diageo in 2012.
bikinis.
Thursday’s resignation, then, was coming a long
Everything else was eventually overshadowed by
time although it took everyone by surprise. Last
Mallya’s entry into aviation in 2005. Kingfisher Airlines,
April, the board of directors at United Spirits asked
launched on Mallya’s son Siddharth Mallya’s 18th
Mallya to resign from the board after an internal
birthday, was marketed as India’s only world-class,
probe allegedly found financial irregularities at India’s
premium airline with hot food and personable, well-
largest liquor company. The probe had already
trained air hostesses chosen personally by Mallya. For
claimed then United Spirits finance chief PA Murali, known
a while, things seemed fine and Kingfisher quickly
to be close to Mallya.
became the No. 2 airline in India by market share.
But its extravagance and expansion, largely fuelled
by money borrowed from banks such as State Bank of
India (SBI), were out of touch with the difficult market
conditions.
While United Spirits sought his removal from the
board, Mallya denied any wrongdoing and defiantly
continued as chairman.
The fight with Diageo came at a time when Mallya was
in a seemingly weak position. His indebted UB empire,
In December 2007, Mallya announced a buy-out of
built mostly through acquisitions, was shrinking fast.
the low-cost carrier Air Deccan, a shabby, down-
Lenders were cashing out Mallya’s pledged shares as UB
market airline, primarily to fly global routes. Indian
companies, primarily the defunct Kingfisher Airlines Ltd,
rules only allowed airlines that had been in existence
failed to repay loans. Over the past six months, several
for five years and Deccan ticked the box. The deal
lenders including State Bank of India and Punjab National
worsened Kingfisher’s already high debt burden. It also
Bank named UB Group a “wilful defaulter.”
heightened comparisons between Mallya, known as
India’s banking regulator was forcing banks to clean up
much for the breadth of his ambition as his flamboyance,
their books. Since his appointment as central bank
and Virgin’s Richard Branson. Indeed, when he was
governor, Raghuram Rajan frequently railed against the
once asked whether he was the Indian Branson, Mallya
kind of loans public sector banks gave to Kingfisher. In
laughed and said Branson was the British Mallya.
January, Rajan again made a veiled attack against
Between 2009 and 2012, Kingfisher would accumulate
losses of over ‘6,600 crore and debt of over ‘7,000
Mallya, who had celebrated his birthday with a typically
lavish party the previous month.
crore. Kingfisher shut its budget airline in 2011; in
“If you flaunt your birthday bashes even while owing
2012, the firm reached a nadir. It did not have money
the system a lot of money, it does seem to suggest to the
to pay employees and creditors. Staff began to strike
public that you don’t care,” Rajan said in an interview with
work regularly because of non-payment of salaries. Its
NDTV, apparently referring to Mallya.
bank accounts were frozen; Kingfisher grounded most
Clearly, things didn’t look good for Mallya.
of its flights which caused hundreds of cancellations and
“I saw him a month ago. He was gloomy and grumpy.
the firm lost its No. 2 position. Soon after, the firm shut
We did not speak much, unlike in the past,” a person close
operations and its licence was suspended by the
to Mallya said.
government. Even then, Mallya hoped to get a foreign
airline to invest in Kingfisher after the Indian government
Another person said Mallya grew tired with the frequent
legal proceedings.
4% of United Spirits and 22% of Mangalore
Chemicals.
These
stakes
are
worth
roughly ‘7,900 crore (as per current market
prices), but more than half the shares in
United Breweries and United Spirits are
pledged to UB Group lenders. UB Group’s
primary
investment
vehicle,
United
Breweries Holdings, is in deep trouble.
For instance, Mallya had to physically appear at Esplanade court in
Mumbai last year to seek permission from the court to travel abroad.
“Earlier, Mallya used to avoid appearing in the court physically. But
now he was forced to appear personally,” he said.
Yet, less than one year after demanding his resignation, Diageo on
Thursday agreed to pay Mallya $75 million. And drop all claims
connected to alleged financial irregularities by the liquor baron.
United Breweries, which is listed in Mumbai,
has
given
corporate
guarantees
worth ‘8,159 crore to cover Kingfisher’s
debt and is facing winding up petitions in
courts.
The rapid unravelling of the Mallya
empire has been well documented, but
“This a clean break for USL (United Spirits), the board, Diageo and
didn’t seem likely a few years ago. Until the
their relationship with Mallya and his dubious past. The company had
downfall of Kingfisher, Mallya built an
already written down the amounts owed to it by other companies,” said
enviously successful conglomerate over
Shriram Subramanian, founder, InGovern Research Services, a
more than two decades of canny deal-
proxy advisory firm. “Mallya, too, is free from the scrutiny and glare
making.
of USL shareholders.”
Advancing years, a momentous failure
However, as far as banks and regulatory authorities are concerned,
in the airlines business, a wilful defaulter
Mallya is still accountable for his alleged financial irregularities,
status, allegations of financial irregularities
Subramanian added.
may have forced Mallya to leave and lie
The exit deal with Diageo will not be Mallya’s last.
low but knowing the man, a second innings
Entities controlled by Mallya still own about 32.4% of United
in entirely within the realm of the plausible.
Breweries (Heineken, which acquired S&N owns more, around 37.5%),
rench auto maker Renault will begin exporting its
F
Declining to share the number of units of Kwid to be
entry-level hatchback Kwid to Brazil from March
exported, he said one lakh bookings had been received
and is looking to ramp up production to 10,000
for the car in the domestic market itself. To address the
units by April 2016 at its Oragadam plant to meet
local demand, he said the company would be ramping up
domestic demand.
the production at its alliance factory with Nissan in
Kwid, which received good response in the domestic
Oragadam near Chennai.
market with more than one lakh bookings in the four
At present, Kwid has a waiting period of five to six
months since its launch, would be the second Renault
months and with the ramping up of production, the
product to be exported after the Duster, a top company
company hopes to bring it down to three months.
official said.
“Right now we are making about 6,000 units (per
Renault, which has set a target of garnering 5 per
month). We want to increase it to 8,000 units (per month)
cent market share by the end of 2017, has already
and by March we will be crossing 10,000 units,” he said.
touched 4.5 per cent in February, the official added.
On the market share, Sawhney said the firm was
“We will be making exports of Kwid to Brazil in parts
confident of registering 5 per cent share by the end of
starting next month,” Renault India Country chief
2016 itself in the backdrop of successful launches of Kwid
executive and managing director Sumit Sawhney told
and Duster.
reporters at the Delhi Auto Expo. He said the company
“In December (2015) we had 4.5 per cent market
was exporting “small” numbers of its popular sports
share, then in January, it was 3.8 per cent. This month we
utility vehicle (SUV) Duster to Brazil and Kwid will be
have 4.5 per cent market. We are working very hard to
shipped as semi-knocked down units (SKDs).
achieve 5% market share by the second half of 2016,” he said.
Kwid, which received good response in
the domestic market with more than one
lakh bookings in the four months since
its launch, would be the second Renault
product to be exported after the Duster
On sales of Renault in 2016, he said the company
would cross over one lakh sales in 2016 as against the
total sales of 54,000 units in 2015.
205, by the end of 2016, covering 96 per cent of the
market.
While stating that the success of Kwid was in the
The company during the Delhi Auto Expo 2016 had
backdrop of its high localisation content at 98 per cent, he
showcased its automatic variant of Duster (4x4 variant),
said the company was also working on taking up the local
besides the one-litre engine capacity Kwid cars.
content levels in Duster from the present 70 per cent to
With the launches this year, ‘’we will be selling more
80 per cent by next year.
than one lakh cars this year”, he said adding the new
The Renault-Nissan plant at Oragadam near Chennai
variants of Kwid and Duster would be introduced in 2016.
has been set up at investments of over Rs4,500 crore and
As part of network expansion, the company would
has the capacity to produce about 4.80 lakh units operating
also increase the dealerships to 240, from the existing
in three shifts.
India Carpet Expo-New Delhi
NSIC Exhibition Complex |11-14 Mar
2016
India Carpet Expo is a 4 days event is
started from 11th March 2016 to 14th March
2016. The India Carpet Expo-New Delhi is
an extraordinary event that is marked by
the presence of carpets, carpet materials,
carpet packaging materials, handmade
carpets, finished products and floor coverings. The
event showcases products like furniture services,
exhibitors of this event are marked by their timing
educational opportunities garments, apparels, jewelry,
delivering of products, quality of artisans and product
car wash, salon and spas, cafes, domestic products,
guarantee. The visitors get deeply involved in the
career services, beauty and wellness products to name a
products and the event is known to give huge business
few etc. in the Business Services industry.
opportunities to the presenters. The event aims to place
India Carpet Expo-New Delhi
Indian carpets on a global platform.
NSIC Exhibition Complex | New Delhi |11-14 Mar
AAHAR - International Food & Hospitality Fair
Pragati Maidan | New Delhi| 15-19 Mar 2016
India Carpet Expo is a 4 days event is started from 11th
March 2016 to 14th March 2016. The India Carpet Expo-
AAHAR - International Food & Hospitality Fair is a 5
New Delhi is an extraordinary event that is marked by the
day event being held from 15th March to the 19th March
presence of carpets, carpet materials, carpet packaging
2016 at the Pragati Maidan in New Delhi, India. This
materials, handmade carpets, finished products and floor
event showcases products like Fresh Produce & Dairy
coverings. The exhibitors of this event are marked by
Products, Confectionery/ Chocolate/ Desserts, Bakery
their timing delivering of products, quality of artisans and
Products & Ingredients Organic & Health Products,
product guarantee. The visitors get deeply involved in the
Frozen , Canned & Processed Products, Meat, Poultry &
products and the event is known to give huge business
Sea Foods, Cheese & Fine Specialty Food, Snacks &
opportunities to the presenters. The event aims to place
Convenience Food, Food Ingredients, Additives and
Indian carpets on a global platform.
Preservatives Coffee & Tea, Syrups, Juices & Energy
Goatimeline Property Expo
Drinks etc. in the Hotel, Restaurant & Catering industry.
Ravindra Bhavan |
Furniture Fair Gurgaon
Epicentre | Gurgaon | 04-07 Mar 2016
Margao | 12-13 Mar 2016
Goatimeline Property Expo is a 2 day event being held
from 12th March to the 13th March 2016 at the Ravindra
Furniture Fair is a 4 day event being held from 4th
Bhavan in Margao, India. This event showcases products
March to the 7th March 2016 at the Epicentre in
like A Complete Media House, is at enviable leadership
Gurgaon, India. This event showcases product from
position today. Our story is one hard work, determination
Furniture industry.
and a strong desire to create the best designs and user
India Smart Grid Week
experience possible. We deal with many divisions namely,
Manekshaw Centre | New Delhi | 15-19 Mar 2016
Printing, Advertising ,Events and Public Relations.Our
Business Opportunities Show Delhi is a 1 day event
team specializes in producing award-winning concepts
being held on 20th March 2016 in New Delhi, India. This
for clients from various industries, including but not
restricted to, Telecom, IT, Hospitality, Real Estate,
goods, leather accessories, leather products, leather
Fashion, Cosmetics, Sports, Arts & Entertainment etc. in
clothing and materials and all other leather industry
the Building Construction industry.
products and goods. The fair is widely acclaimed, around
India International Handwoven Fair Chennai
the world for its fine quality of leather and display. It is
Chennai Trade Centre | Chennai | 09-11 Mar 2016
also a fruitful fair for the exhibitors as they get a platform
India International Handwoven Fair Chennai is a 3
to present their products and supplies. The visitors also
day event being held from 9th March to the 11th March
have awesome time at the fair and get connected to
2016 at the Chennai Trade Centre in Chennai, India.
leading exhibitors.
This event showcases products like Unparalleled in its
International Conference on Communication and
flexibility and versatility, permitting experimentation
Broadband Networking
and encouraging innovation,It is the delight of designers,
Hotel Residency Coimbatore | 19-20 Mar 2016
interior decorators and connoisseurs of fine clothing etc.
International Conference on Communication and
in the Textile, Fabrics & Yarns industry.
Broadband Networking is a 2 day event being held from
International Elevator & Escalator Expo
19th March to the 20th March 2016 at the Hotel Residency
Bombay Exhibition Centre | Mumbai |17-19 Mar 2016
Coimbatore in Coimbatore, India. This event showcases
International Elevator & Escalator Expo provides an
products like provide a platform to the researchers and
exclusive platform to get an insight into the market,
practitioners from both academia as well as industry to
trends and technologies that drive the Elevator and
meet the share cutting-edge development in the field etc.
Escalator industry. The forum, apart from fostering
in the Electronics & Electrical Goods industry.
thought leading insights from the stalwarts of the industry,
India Ecommerce Expo- Delhi
also delves extensively on leading edge technological
Venue to be announced | New Delhi | 30 Mar 2016
advancements to the most contemporary design trends,
India Ecommerce Expo (IEE) is the largest B2B Trade
safety standards, environmental compliance codes and
platform in the E-commerce space in India. This event
regulations. It will be held at NSIC Exhibition Complex.
showcases Ecommerce Market Places, Service Providers,
International Leather Goods Fair
E-retailers, E- business. The event facilitates meeting the
Milan Mela Ground | Kolkata | 18-20 Mar 2016
Merchants/Retailers/ Manufactureres/SME’s for business
The International Leather Goods Fair is home to an
array of products and equipments such as leather
interaction along with knowledge sharing. If you are looking
for E-commerce solution then this is the place to be in.
Conference on Wireless Communications and
Research, organized by the Engineering Information
Networks, Beijing Yanshan Hotel | Beijing, China
Institute will take place from 2nd March to the 4th March
| 02-04 Mar 2016
2016 at the Beijing Yanshan Hotel in Beijing, China. The
The Conference on Wireless Communications and
conference will cover areas like This Conference will
Networks, organized by the Engineering Information
cover issues on Laboratory Medicine and Clinical Research.
Institute will take place from 2nd March to the 4th March
It dedicates to creating a stage for exchanging the latest
2016 at the Beijing Yanshan Hotel in Beijing, China. The
research results and sharing the advanced research
conference will cover areas like Physical Layer,Data
methods.
Link Layer and Media Access Control . Wireless and
China
Mobile Networks.
Machinery & Material Industry Fair
Conference on Laboratory Medicine and Clinical
Guangdong
Research, Beijing Yanshan Hotel | Beijing, China
Center. | Dongguan, China | 02-05 Mar 2016
| 02-04 Mar 2016
The Conference on Laboratory Medicine and Clinical
(Dongguan)
Modern
International
International
Footwear
Exhibition
China (Dongguan) International Footwear Machinery
& Material Industry Fair is a 4 day event being held from
2nd March to the 5th March 2016 at the Guangdong
Modern International Exhibition Center (GDE) in Dongguan,
China. This event showcases products like Raw Materials
Including: Hides & Skins, Semi-Finished & Finished Leather,
Synthetic Materials & Man-made Leather, Rubber, PVC,
TPR, PU, Natural Fibers and Materials, High Performance
Fabrics, Finishing Chemicals & Dyes, Release Papers,
Components & Accessories for Shoes, Leather Garments,
Handbags and, Plastic Lasts, Insoles, Footwear Soles, Toe
Puff and Counters, Shoe Uppers, Laces, Eyelets, Fabrics,
Buckles, Shank etc. in the Leather & Leather Products
industry.
Paperworld Middle East
Dubai international convention and exhibition |
Dubai, UAE | 01-03 Mar 2016
Paperworld Middle East is a 3 day event being held from
1st March to the 3rd March 2016 at the Dubai international
convention and exhibition centre in Dubai, United Arab
The Ship Recycling Forum, organized by the
Emirates. This event showcases products like power tools
TradeWinds Events will take place from 7th March to the
& accessories portable , speciality tools & accessories diy
8th March 2016 at the Jumeirah Emirates Towers Hotel
Tools, bench & stationary power tools etc. in the Hand,
in Dubai, United Arab Emirates. The conference will
Machine & Garden Tools, Plants & Machinery industries.
cover areas like present and future direction of the
GCC Transportation Industry Customer Care
industry, discuss real-world solutions with key
Excellence Conference
stakeholders and further the advance of economic and
Venue to be announced | Dubai, UAE | 03 Mar 2016
environmental shipbreaking sustainability.
The GCC Transportation Industry Customer Care
Coastal Marine Construction and Engineering
Excellence Conference, organized by the Datamatix Group
Forum, Abu Dhabi University | Abu Dhabi, UAE |
will take place on 3rd March 2016 in Dubai, United Arab
08-09 Mar 2016
Emirates. The conference will cover areas like Modern
The Coastal Marine Construction and Engineering
Management and Leadership, IT and e-Government,
Forum, organized by the Fleming Gulf will take place
Information and Communication Technology, Digital
from 08 - 09 March 2016 at the Abu Dhabi University in
Archives, Customer Care Services, Education and
Abu Dhabi, United Arab Emirates. The conference will
Knowledge Management, Sports, Stock Market, Media
cover areas like Case Study | Challenges Faced During
and Public Relations.
Plan, Design & Construction Of Artificial Islands.
GCC
Automobile
and
Spare
Parts
Dealers
Conference, TBA | Dubai, UAE | 03 Mar 2016
The GCC Automobile and Spare Parts Dealers
Innovations At The Edge: Countermeasures Taken For
Dredging And Reclamation Activities.Security &
Surveillance of Coastal Structures - Breakwater &
Conference, organized by the Datamatix will take place
Island Projects.
on 3rd March 2016 in Dubai, United Arab Emirates. The
Quality and Business Management Conference
conference will discuss on topics like Modern Management
Jumeirah Beach Hotel | Dubai, UAE | 07-09 Mar
and Leadership, IT and e-Government, Information and
2016
Communication Technology, Digital Archives, Customer
The Quality and Business Management Conference,
Care Services, Education and Knowledge Management,
organized by the Hamdan Bin Mohammed Smart
Sports, Stock Market, Media and Public Relations.
University will take place from 7th March to the 9th
Ship Recycling Forum, Jumeirah Emirates Towers
March 2016 at the Jumeirah Beach Hotel in Dubai,
Hotel | Dubai, UAE | 07-08 Mar 2016
United Arab Emirates. The conference will cover areas
like adverse impact of the recent global economic crisis
08-09 Mar 2016
The Coastal Marine Construction and Engineering
Forum, organized by the Fleming Gulf will take place from
08 - 09 March 2016 at the Abu Dhabi University in Abu
Dhabi, United Arab Emirates. The conference will cover
areas like Case Study | Challenges Faced During Plan,
Design & Construction Of Artificial Islands. Innovations
At The Edge: Countermeasures Taken For Dredging And
Reclamation Activities.Security & Surveillance of Coastal
Structures - Breakwater & Island Projects.
International
Conference
on
Infrastructure
management, Assessment and Rehabilitation
Techniques, American University of Sharjah |
Sharjah, UAE | 08-10 Mar 2016
The International Conference on Infrastructure
management, Assessment and Rehabilitation Techniques,
organized by the American University of Sharjah will take
on businesses and its resulting ramifications for the non-
place from 8th March to the 10th March 2016 at the
for-profit public and third sectors in the West coupled
American University of Sharjah in Sharjah, United Arab
with the broad macroeconomic effects of globalization.
Emirates. The conference will cover areas like
International Conference on Economics, Business,
Infrastructure Design and Management,Design Theories
Marketing and Management
and
Holiday Inn Hotel Dubai | Dubai, UAE | 15-16 Mar
Systems,Lifecycle Cost Analysis, Nondestructive Testing
2016
and Evaluation Techniques for ..
The International Conference on Economics, Business,
Marketing
and
Management,
organized
by
the
International Centre of Economics, Humanities and
Practices,Case
Histories,Decision
Support
International Conference on Industrial Informatics
and Computer Systems, Dubai Taj Palace Hotel |
Dubai, UAE | 13-15 Mar 2016
Management will take place from 15th March to the 16th
The International Conference on Industrial Informatics
March 2016 at the Holiday Inn Hotel Dubai in Dubai,
and Computer Systems, organized by the American
United Arab Emirates. The conference will cover areas
University of Sharjah will take place on 13-15th March
like aims to bring together leading academic scientists,
2016 at the Dubai Taj Palace Hotel in Dubai, United Arab
researchers and scholars to exchange and share their
Emirates. The conference will cover areas like Information
experiences and research results about all aspects of
and Communication Technology , Computer Systems for
Economics, Business, Marketing and Management, and
Smart Grids , Industrial Informatics for Renewable Energy
share/discuss the practical challenges encountered and
, Industrial and Computer Networks and many more.
the solutions adopted.
AppsEvent Qatar Summit
Office Management and Effective Administration
Qatar Academy | Ar Rayyan, Qatar | 11-12 Mar
Skills, Venue to be announced | Dubai, UAE | 13-
2016
The AppsEvent Qatar Summit, organized by the
17 Mar 2016
The Office Management and Effective Administration
AppsEvents will take place from 11th March to the 12th
Skills, organized by the EuroMaTech will take place from
March 2016 at the Qatar Academy in Ar Rayyan, Qatar.
13th March 2016 to 17th March 2016 in Dubai, United
The conference will cover areas like sessions on topics
Arab Emirates. The conference will cover areas like
like managing and rolling out chromebooks and tablets,
PROGRAMME INTRODUCTION/ROLES, COMPETENCES
learn google apps administration with our structured
AND PERSONAL EFFECTIVENESS.
certification program.
Coastal Marine Construction and Engineering
Forum, Abu Dhabi University
| Abu Dhabi, UAE |
Jawaharlal
Nehru University Students Union President
Kanhaiya Kumar said they never demanded freedom
from India — “We demanded freedom within India,”
he said while addressing a gathering of thousands of
students on the campus after spending days in Tihar
jail on sedition charges.
“We never demanded azadi (freedom) from India.
We
want azadi within
India...from
starvation,
feudalism, Brahmanism, casteism, rioters and looters
of the country,” said the JNUSU leader in his blistering
speech at the same place where he had addressed students just a day before his
arrest.
Despite ideological differences, Kanhaiya said that he seconded the PM’s words,
‘Satyamev Jayate’, but he wished that the let the truth come out.
Online trolls in Kerala are having a
blast lampooning Chandy’s undue haste
in inaugurating anything and everything that catches
his eye.
That this is an election gimmick is obvious to
anyone endowed with common sense and trolling is
at its creative best with witty remarks and jokes
aplenty on Chandy’s latest fad.
The
last two months have been unusually busy for Kerala
You can’t really blame him with Assembly elections
CM Oommen Chandy who seems to be on a marathon
just round the corner and so if there is anything that
inauguration spree of projects, many of which are yet to
needs inaugurating in Kerala, you now know whom
be completed.
to get in touch with.
This
Women’s Day, Sonakshi Sinha joined thousands of women in their
attempt to achieve a Guinness World Record title of ‘Most people painting
their fingernails simultaneously’. And the Bollywood actor is more than
excited about the thought of being a part of creating history.
By inviting so many women on International Women’s Day, which is
celebrated on March 8, Poland-based cosmetic brand Inglot has planned
to present a grand platform to create the record.The event will be held
at the Palladium in Mumbai.
Edited, Printed and Published by K.N.Marzook, Published at Kerala Chamber of
Commerce and Industry, Chamber Corner, Shanmugham Road, Cochin,
printed at Sterling Print House, Ernakulam
Kerala Chamber Business News (Monthly)March, 2016 - Price Rs. 25. RNI No: KERENG/2008/25119 - Licensed to post at Kochi PSO.

This Budget - Kerala Chamber of Commerce and Industry

Transcription

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