ECONOMY, P2 BACK PAGE, P12 BACK PAGE, P12 ‘MULTIPLICITY A CHALLENGE’ THE BIG PICTURE WAIT FOR TITLE CLASH CONTINUES Grant Thornton Bharat CEO seeks change in audit regulations Pricing freedom a mirage as OMCs stare at under-recoveries Srikanth’s brilliant run at Swiss Open ends in semi-final defeat CHENNAI/KOCHI, MONDAY, MARCH 25, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XLIV 272, 12 PAGES, `12.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E IN THE NEWS LABOUR CODES TO TAKE EFFECT AFTER ELECTIONS ONCETHE FOUR new labour codes are notified by the Centre, the states that have not yet formed rules pertaining to the new codes will be "compelled" to do so, a senior government official told FE, adding the new government is likely to implement the codes after it assumes office, reports PriyanshVerma. ■ PAGE 2 KAYNES SEMICON TARGETS 1 BN CHIPS ANNUALLY: CEO KAYNES SEMICON IS targeting to have 13 chip assembly & test lines over next 1.5-2 years with a volume of 1 billion chips annually, said CEO Raghu Panicker, reports Jatin Grover. ■ PAGE 3 DEPENDENCE ON CHINAAUTO PARTS TO RISE WITH EVs THE RENEWED POLICY push to make India a hub for EV manufacturing could lead to an increase in dependence on auto parts from China, said GTRI, reports Mukesh Jagota. According to estimates, China has 75% of the world’s battery production capacity and battery accounts for 40% of the cost of an EV. It also accounts for more than 50% of global EV production and exports. ■ PAGE 2 FE S P E C I A L S Precision oncology requires deep and rich data Interview with Mrinal M Gounder & Peter D Stetson of Memorial Sloan Kettering Cancer Centre ■ EFE, P7 Playing the value game Iqoo Z9 & Lava Blaze Curve (5G) handsets can cover most of your needs ■ GADGETS, P7 JIO TO BANK ON USER CHURN Airtel plans tariff hike post LS polls STRATEGIC MOVES JATIN GROVER New Delhi, March 24 RELIANCE JIOAND BhartiAirtel are likelyto adopt different strategies with regard to tariff hikes post the parliamentary elections. According to company executives, while BhartiAirtelwill go fora hike in headline tariffs, Jio may not do the same. Instead, the company will bank on measures promoting higher data consumption, leading users to move to higher packs, which will see an improvement in its average revenue peruser (Arpu). Since Bharti's tariffs are already at a premium compared to Jio, the gap between the two will rise. Jio, which saw its Arpu flat on a sequential basis in the October-December quarter,thus hopes that itwill gain from subscriber churn from Bharti,which will further add to its Arpu growth. With the Indian Premier League kicking off,Jio is hopeful of rise in data consumption. Executives said that since data consumption is higherin 5G packs,users move on to higher plans for betterviewing experience. Industry executives said Jio is also trying to increase the take up of its JioFiber broadband plans,bybundling itwith different services. Since there's no freebie in these packs, the realisation is higher.“With users moving to higher 5G packs, higher realisation from Fiberplans,and somechurn from otheroperators,weexpectArputorisewithoutgoingfor a headline tariff hike,”executives said. According to analyst estimates, Jio has been growing the fastest in the home broadband segment,at 37.6% y-o-y. Analysts said that Airtel is at a different spot.Ithasalreadyimplementedpossibletariff adjustments in various plans to take its Arpu beyond `200 per month.Now it has no option but to go for headline tariff hike if it ■ Bharti's tariffs are already at a premium compared to Jio, so the gap between the two will rise ■ Currently, Airtel has industry leading Arpu of `208, compared to Jio’s `182 and Vodafone Idea's `145 ■ With the Indian Premier League kicking off, Jio will not hike tariffs but would promote higher data consumption PRIYANSH VERMA New Delhi, March 24 AMIDDELAYSINconductofkeystatisticalsurveys and revision of economic and social indices,keyeconomicministrieshavestarteda process for a fresh set of surveys aimed at bolsteringtheirdatabaseforsuitablepolicyaction. Officialsourcessaidthatseveralministries including agriculture, commerce, labour, tourism and health have separatelywritten to the ministry of statistics and programme implementation (MoSPI) for technical and manpowersupportfortheseadditionalstatistical exercises.The areas covered in the proposedsurveysincludetourismfootfallsurveys ofdifferentstates,ailmentsamongtheelderly and price estimation of industrial inputs. "MoSPI has been getting repeated requests for conducting surveys on their (other ministries) behalf," an official told FE. "We will start conducting the additional surveys, and the process will likely begin postelections." The statistics ministry’s survey wing NationalSampleSurveyOffice(NSSO)isman- Lenders take cue from structures used in developed countries RAGHAVENDRA KAMATH Mumbai, March 24 LENDERSINPRIVATEcreditspaceareusing creative ways to structure their deals and payment terms. Someofthedealstructuresarerelatively newin India,though theyhave been extensively used in developed countries,experts said.For instance,when Vedanta Resources raised $ 1.25 billion debt in December last year,itsecuritisedbrandfeesitwouldreceive over a three-year period from a clutch of lenders. "Securitising brand fee is a new concept here,"saida seniorexecutive in a consulting firmwho did notwant to be quoted. Besides, some lenders in the same deal DEAL STREET ■ Damji Shamji raised $11 mn from ASK Property Fund in a zerocoupon bond that carried an 81% redemption premium ■ Vedanta Resources securitised brand fees when it raised $1.25 bn debt in December last year ■ Some lenders in the same deal improvised on payment terms, linking most returns to redemption premiums improvisedonpaymentterms,linkingmost of their returns to redemption premiums, according to a report by REDD, a data and research provider. Inanothermajordeallastyear,Shapoorji Pallonji unit Goswami Infratech’s $1.7 billion bond was a zero-coupon debenture, with18.75%returnfromaredemptionpre- ■ Shapoorji Pallonji's $1.7 bn bond was a zero-coupon debenture, with the 18.75% return from a redemption premium mium. Fortheloan,ShapoorjiPallonjiputupsignificantcollateral,includinghalfofitsstake in Tata Sons, two operational ports, and majoritycontrolofconstructionfirmAfcons Infrastructure,according to media reports. Continued on Page 9 ● MOSCOW IN MOURNING ■ Industry executives said Jio is also trying to increase the take up of its JioFiber broadband plans Jio’s subscriber share stood at 46% in Oct-Dec period while Bharti is at 33.5% and Vodafone Idea’s share is 18.5% wants its Arpu to rise further. Currently,AirtelhasindustryleadingArpu of `208, compared to Jio’s `182 and Vodafone Idea's `145. Brokerages have also built in tariff hikes by operators post the elections and they are also of the view that Bharti will take the lead in this regard. Continued on Page 9 More socio-economic surveys on the cards Several ministries write to NSSO, seeking tech and manpower support Private credit deals go creative GROUNDWORK FOR POLICY ACTION ■ The areas covered in the proposed surveys include tourism footfall surveys of different states, ailments among elderly etc ■ The proposed surveys are aimed at bolstering the database for suitable policy action People line up on Sunday to lay flowers at a makeshift memorial for the victims of the Crocus City Hall shooting. The suspects in the shooting were brought to the Investigation Committee's headquarters in Moscow, Russian state news agency RIA reported. Russia lowered flags to half-mast to mourn the Friday attack in which 137 people were killed, including three children REUTERS The Boeing 737 we are flying is safe: Akasa CEO SWARAJ BAGGONKAR Mumbai, March 24 ■ The statistics ministry’s wing National Sample Survey Office is mandated to conduct large-scale sample surveys in diverse fields dated to conduct large-scale sample surveys in diverse fields across India.It conducts data through nationwide household surveys on various socio-economic subjects, such as Annual Survey of Industries (ASI), Periodic Labour Force Survey (PLFS), Household Consumption Expenditure Survey (HCES) etc. Continued on Page 9 UNDER ENHANCED SCRUTINY from federal regulatorsintheUS,followingtheJanuarymidflight door blowout incident,plane maker Boeingsaiditwillscaledownproductionofthe737 MAXmodelbymorethan20%. Boeingwillrestricttheproductionofthe737 MAXtobelow38permonthforthenextseveral months,downfromthe47permonthscheduled fromAugustthisyear. WhiletheblowoutincidentinvolvingAlaska Airlinesraisedapprehensionoversafetyandreliabilityofthatparticularaircraftmodel,whichis alsousedbyIndianairlines,itbroughttoforethe increasedpossibilitiesofdelaysindeliveries. “Nobodyinaviationcanreallyputtoomuch effortonsafety.Wearehappywiththeincreased andrenewedfocusofBoeing,oftheFAA(Federal Aviation Administration), (and) our regulator (DGCA).Wethinkthisisagoodthing,”saidVinay Dube,CEO,AkasaAir. In early January,the Directorate General of CivilAviation(DGCA)directedAkasaAir,SpiceJet and Air India Express to conduct a ‘one-time VINAY DUBE, CEO, AKASAAIR WE ARE HAPPY WITH THE INCREASED AND RENEWED FOCUS OF BOEING, FAA (FEDERAL AVIATION ADMINISTRATION), AND DGCA ON SAFETY accused Google of anti-competitive practices in its money-spinning adtech business and that it may have to divest its sell-side tools. ShesaidthatrequiringGoogleto sell some of its assets seemed to be the only way to avoid conflicts of interest as it would prevent Google from allegedly favouring its own online digital advertising technology services versus advertisers and online publishers. Vestager is expected to issue a final decision bythe end of theyear. European Parliament lawmaker Andreas Schwab, who was heavily involved in drafting landmark EU DMA tech rules that kicked in this month, said lawmakers want bold actionagainst BigTechwhichflouts rules. Continued on Page 9 Continued on Page 9 inspection’of emergency exits of each of their 737MAXplanes. To be sure,none of the Indian airlines operate the 737 MAX-9 variant which was involved intheincident.Indiancarriersusethe737MAX8variant,onwhich,noissueshavebeenreported sofar. Continued on Page 9 Google,Apple break-ups on the agenda as regulators target tech BIG TECH IS facing its biggest challenge in decades as antitrust regulators on both sides of the Atlantic crackdownonallegedanti-competitive practices that could result in break-up orders toApple andAlphabet's Google,a first forthe industry. That in turn could inspire watchdogs around theworld to pile on, as evidenced in the growing number of antitrust probes in various countries following the opening of EU and US cases. Since AT&T was broken up exactly40years ago, no company has faced the possibilityofaregulator-ledbreak-upinthe United States until now. Googlehassaiditdisagreedwith the EU's accusations while Apple WALLED GARDENS ■ Since AT&T was broken up exactly 40 years ago, no firm has faced the possibility of a regulator-led break-up in US ■ Big Tech will face more scrutiny with Apple, Meta & Alphabet likely to be probed for Digital Markets Act violations ■ Regulators now allege companies such as Apple and Google have built impenetrable ecosystems around their products said the US lawsuit is wrong on the facts and the law. In 1984,AT&T,also known as Ma Bell,was broken up into seven independent companies called "Baby Bells"toopenuponeofthemostpowerfulmonopoliesofthe20thcentury. AT&T, Verizon and Lumen are currentlytheonlysurvivingentities. Regulators now allege companies such as Apple and Google have built impenetrable ecosystems around their products, making it difficult for customers to switch to ■ The US Department of Justice warned Apple, a $2.7 trn company, that a break-up order is not excluded as a remedy to restore competition rival services,which led to the coining of the term walled gardens. TheUSDepartmentofJusticeon Wednesday warned Apple, a $2.7 trillion company, that a break-up orderis not excluded as a remedyto restore competition afterit teamed up with 15 states to sue the iPhone makerformonopolising the smartphone market,thwarting rivals and inflating prices. Even so,itwill likelytakeyears to decide the case, which Apple has vowed to fight. The US actions come on the heels of other mounting threats across Europe this week. Big Tech will face more scrutiny shortly with Apple, Meta Platforms and Alphabet likely to be investigated for potential Digital Markets Act(DMA)violationsthatcouldlead to hefty fines and even break-up ordersforrepeatedbreaches,people with direct knowledge of the mattertold Reuters onThursday,on the condition of anonymity. EU antitrust chief Margrethe Vestager helped pave the way for drastic measures lastyearwhen she MUKESH JAGOTA New Delhi, March 24 THE CONCLUSION OF free trade agreements (FTAs) with the UK and Oman are likely to be part of a 100day action plan drawn up by the department of commerce for the next government,apart from“steps to resolve the issues faced by exporters”,a senior official told FE. Negotiationsonboththesetrade agreements are in the“final stages,” the official said,but added that due tothestartoftheelectionprocessin India,there has been a pause in the talks. Resumption of the dialogues is expected only after the new government assumes office by Mayend or June. In the Cabinet meeting last Sunday, a day after the general election schedule was announced, Prime Minister Narendra Modi had asked the ministers to draft a road map for the first 100 days and next five years for the government. Apart from FTAs,the commerce department will also be laying down steps that need to be taken during the first 100 days to resolve the problems faced by merchandise exporters due to the slump in world trade and persisting geopolitical tensions,besides the erosion of competitiveness in some sectors,including the labour-intensive ones. According to sources,as regards the proposed FTA with the UK, chapter-wise textual negotiations are nearly closed and schedules on goods and services are“at advanced stages.” The FTA has 26 chapters, each dealingwith a policyarea connected to trade like intellectual property, government procurement, sanitary and phytosanitary measures, technical barriers to trade etc. RISING NUMBER OF ANTITRUST PROBES AGAINST BIG TECH FOO YUN CHEE & SUPANTHA MUKHERJEE Brussels/Stockholm, March 24 UK & Oman FTAs likely in commerce ministry’s 100-day list CHENNAI/KOCHI