BACK PAGE, P18 COMPANIES, P4 BRANDWAGON, P9 Semicon 2.0: India should not cut back on subsidies India leads on world AI stage: Nasscom chief The Man Company drives Emami’s premiumisation KOLKATA, MONDAY, SEPTEMBER 30, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL 33 NO. 282, 18 PAGES, `12 (NORTH EAST STATES `12 & ANDAMAN `17) 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 AS GREEN HYDROGEN becomes the buzzword in renewable energy, companies such as Avaada, Hygenco, Thermax and others are working on reducing its cost and make it more economical, report Raghavendra Kamath, Geeta Nair & Arunima Bharadwaj. Reliance Industries and Adani Group have already announced their plans to make green hydrogen cheaper. ■ PAGE 4 MORE NEW-AGE CONSUMER FIRMS EYE EARLY LISTING THE SUCCESS OF Nykaa, Mamaearth and FirstCry in the stock market has made newage consumer brands more optimistic about an initial public offering (IPO), reports S Shanthi. Around 5-8 direct-to-consumer and e-commerce startups are expected to list by the end of FY25. ■ PAGE 4 GOVT TO REVAMP SCHEMES FOR SCs, STs, MINORITIES THE NITI AAYOG has initiated a revamp of various centrally sponsored schemes under law & order and justice delivery to assess each scheme's relevance, effectiveness and sustainability, reports fe Bureau. ■ PAGE 2 BANKS SEE SURGE IN GOLD LOANS AS PRICES SOAR WITH GOLD PRICES reaching record high levels, the demand for gold loans from banks has significantly risen in recent months, reports Sachin Kumar. Loans against gold jewellery increased nearly 40% in July and 31% in June this year, compared with 16% and 19% in the same months last year, as per the Reserve Bank of India (RBI) data. ■ PAGE 6 FE S P E C I A L S WILLDUSSEHRA-DIWALI FESTIVITIES drive a momentum to the retaildemand,whichhasbeensluggish so far this festive season? Retailers are keeping their fingers crossed that it will. Sales during the first three days of the e-commerce festive days which kicked off on Friday have been weak, going by initial indications from industry executives. Makers of a host of merchandise ranging from electronics goods to fashion and lifestyle products,who have a lot riding on the festive season, are, however, hopeful that the retail demand will revive in October-November.Retailers expect discounts on some products could be much higher this time around. FESTIVE SEASON: SALES TREND Offline (` lakh cr) 2.5 Online 3.3 5.0 4.0 1.2 0.9 0.5 2 2.5 3.1 3.8 2019 2022 2023 2024# Food & Grocery 2024# 2030# Consumer spending is likely to touch `5 lakh crore this festive season.That’sabout25%morethanthe spends of `4 lakh crore during the Dussehra-Diwali period last year, according to estimates by Deloitte and Redseer and the Confederation ofAll IndiaTraders (CAIT). Of this,the online channel could turn in sales of around `1-1.2 lakh crore in terms of gross merchandise value during the festive season, DATA INTEGRITY ■ Panel will work on minimising revisions in IIP numbers while maintaining integrity of data new IIP series may be 2022-23. It is currently 2011-12 KushalBhatnagar,associatepartner, Redseer Strategy Consultants, said. This is despite a weak start to the ongoinge-commercesalesfestivals. Continued on Page 13 Small nuclear reactors get traction, pvt players chip in ANIL SASI New Delhi, September 29 computation of the newfactoryoutput series,the membersaid. InJune,theministryconstituted a26-membercommitteetooversee therevisionofbaseyearfornational accounts.As many as 809 items are part of the extant IIPserieswith the base year of 2011-12, which are clubbed in 405 “item groups” pertaining to‘manufacturing’sector. Continued on Page 13 Continued on Page 13 ■ Technical advisory committee will be headed by former member of Monetary Policy Committee Mridul K Saggar officialnotification,datedSeptember 27,theSaggarcommitteeshalldeliberate on aligning the IIP’s base year withthatoftheGDP.Amemberofthe committee told FE,“We will work on minimisingthefrequentrevisionsin the IIP numbers,while maintaining the integrity of the data.”The committee is waiting for the results of Annual Survey of Industries (ASI) 2022-23tobeginitsdeliberations,as data of this surveywould be used for Gems & jewellery INDIA’S PLANSTOgetintothemanufacturingvaluechainofsmallmodular reactors (SMRs) are yielding some positiveswith a handful of private players learnt to have shown interest in deploying these at their captive site.Since the talks are sensitive, sources said disclosing names maynot be appropriate at this stage. SMRs—withacapacityof30MWe to 300 MWe per unit — are seen as important for nuclear energy to remain a commercially competitive option.India is pushing for a leadership slot in this small reactor space, bothasawayoffulfillingitscommitment to clean energy transition,and bundling SMRs as a technology-led foreign policy pitch. The government’s push comes at a time when twocountriesthathavealreadytaken aleadinSMRs—RussiaandChina— are finding it difficult to do business outsideoftheir geographies. ■ Data from ■ Base year of Consumer Apparel & durables footwear Source: Deloitte India/Industry; #estimate Source: Redseer/Deloitte India/CAIT; #estimate PRIYANSH VERMA New Delhi, September 29 THE GOVERNMENT IS working on changes to improve the credibility of the index of industrial production (IIP) data, with economists questioning the volatility and frequent revisions. Accordingtosources,theministry of statistics and programme implementation(MoSPI)hasconstituteda technical advisory committee, headed byMridul K Saggar,a former memberofthemonetarypolicycommittee.Apart from aligning the base year of IIP with the proposed new GrossDomesticProduct(GDP)series, the panel will explore the use of furtherdatasets forIIPcomputation. The base year for the IIP is now 2011-12.The ministry, as reported earlier,is aiming to introduce 202223 as the new base year for the GDP and release the first estimate in February 2026 on that base. As per an 2022 (figures in $ bn) 0.8 Govt to modify IIP: More datasets & new base year Forms 21-member review committee INDIA'S RETAIL MARKET: WHERE IS IT GOING 70 80 145 ENERGY FIRMS AIM TO MAKE CHEAPER GREEN HYDROGEN VIVEAT SUSAN PINTO Mumbai, September 29 75 85 160 THE GOVERNMENT IS considering an oversight mechanism for foreign direct investments (FDIs) flowing into the country, taking a cue from similar systems in other countries that are high on global investors' radar, reports Mukesh Jagota. The proposal is at a “discussion stage,” a senior official said. ■ PAGE 2 85 95 175 POST-INVESTMENT SCRUTINY OF FDI IN THE OFFING Retailers live on hope for a late festive season push 1,230 NEWS CONSUMER SPENDING LIKELY TO TOUCH `5 LAKH CRORE 600 700 IN THE Annual Survey of Industries 2022-23 will be used for new factory output series New D2C firms make faster offline forays S SHANTHI Bengaluru, September 29 NEWER DIRECT-TO-CONSUMER (D2C) brands are getting into the omnichannel mode at a much faster rate as consumers increasingly prefer a touch-and-feel experience apart from convenience. Startups such as Snitch, Solethreads, Pilgrim, BlissClub and Mokobara are making an offline forayin less than threeyears oreven earlier, as compared to the 5-9 years on average that D2C brands such as boAt, Mamaearth, Bluestone,Licious,Melorra,Plum took. ToysbrandJammbo,forinstance, hasexpandedtomorethan20states within a year of starting its opera- EXPANDING REACH ■ Startups now make an offline foray in less than three years, as compared to 5-9 years earlier VIKRAM GUPTA, FOUNDER AND MANAGING PARTNER, IVYCAPVENTURES ■ Many believe offline stores help reach traditional consumers and establish credibility tions.FashionbrandSnitch,founded in 2019,already has 25 stores operational across Bengaluru, Hyderabad,Pune,DehradunandMumbai. “By 2025, we plan to launch more than 40 stores,” Siddharth Dungar- THERE ARE MANY OFFLINE MODELS WITH DIFFERENT ECONOMICS A FIRM CAN CHOOSE FROM NOW wal, founder and CEO, Snitch, told FE. Herby Angel, a D2C brand that manufactures ayurvedic products forbabies,wasfoundedjustlastyear but already runs more than 1,300 retail stores across 13 states. Whilemanystartupswerereluctanttogoofflineastheyfeltitwould be asset-heavy and expensive, they now realise that the economics eventually works out. As Vikram Gupta,founderandmanagingpartner, IvyCap Ventures, points out, there is a multiplier effect. “Also, there are many offline models with differenteconomicsonecanchoose from, such as COCO (companyowned, company-operated) and FOCO (franchise-owned,companyoperated) models,”Gupta said. SurabhiSanyukta,vicepresident, investments, BlackSoil, believes offline stores help reach traditional consumers and establish credibility. Continued on Page 13 Small investors want more IPO shares, get less VIVEK KUMAR M Mumbai, September 29 AT A TIME when applications from small investors for shares in initial publicofferings(IPOs)havebeenskyrocketing, their share in allocations hasactuallyfallenbymorethan25%. Data from the National Stock Exchange (NSE) shows that retail investors have received a share of 19.6% in IPO share allocations as compared to 26.2% in FY24, with some of the bigger offerings allocating a larger share to qualified institutional buyers (QIBs). According to Pranav Haldea, MD of PRIME Database Group, said the allocation for retail was loweras“in the last 4-5 months,we have had more tech companies coming to the market.” According to the Securities and Exchange Board of India (Sebi) regulations, issuers can allot a minimum of 35% of their IPO shares to retail investors only if they meet certain eligibilitycriteria,including net tangible assets of at least `3 crore and a net worth of at least `1 crore in each of the preceding three years, and an average operating profit of `15 crore during the preceding three years. Ifacompanydoesnotmeetthese criteria, then it has to allot a minimum of 75% of the IPO shares to QIBs, a maximum of 15% to noninstitutional investors and 10% to retail investors. Of the 26 companies that came to the primary market till August this year, 17 companies met Sebi’s FALLINGALLOCATIONS IPO allocation in % on mainboard FY24 FY25 Retail QIB 26.20 19.60 14.49 14.97 55.75 NII 65.26 Source: NSE eligibility criteria. However, they onlyaccounted for39% of the total IPOconsideration,accordingtoNSE data.As a result,the share of QIBs in the IPO allocation has risen to 65.3% so far in FY25 as against 55.8% in FY24,the data showed. BetweenApril andAugust,these 26 companies mobilised `36,197 crore through their IPOs. Continued on Page 13 PLI firms to get easier access to govt tenders interaction with CEOs of 140 PLI beneficiarycompaniesonSunday,“It (special public procurement regime THE GOVERNMENTIS considering for PLI firms) was a good suggestion a relaxation in the public procure- andIhaveaskedofficialstoexamine mentnormsforcompaniesavailing it.We will examine whether we can production linked incentives (PLI) have a road map forthese sectors (to forvarioussectors.Thiswouldboost enablethem)totransitionintoClass 1 and Class II suppliers (sooner).” market opportunities for them. A Class I supplier is one whose Commerceandindustryminister goods, services or Piyush Goyal has proworks offered for proposed a special carvePIYUSH GOYAL, curement has local outforPLIcompanies COMMERCE AND content of 50% or when the governINDUSTRY MINISTER more. A Class II supment invites bids for plieristheonewiththe thesupplyofassorted IN GOVERNMENT local content between goodsandservicesfor 20% and 50%. its consumption, PROCUREMENT, A “In government including putting FEWAMENDMENTS procurement, there quality approvals of REQUIRED ON A mightbeafewamendtheir products on the SECTORAL BASIS, ments required on a fasttrack.Inaddition, sectoral basis, rather theconditionsofprior RATHER THAN than an overhaul. experience and indiAN OVERHAUL There are certain secgenisation for the tag tors in which the ofClassIandIIsuppliecosystem takes time erstothegovernment todevelop.Initiallythe under the public prodomestic value added curement policy may is less and gradually it be relaxed for firms goes up,” he said. making investments under the PLI schemes. Continued on Goyalsaid,afteran Page 13 MUKESH JAGOTA New Delhi, September 29 DEMAND FOR COLDPLAY’S UPCOMING MUMBAI CONCERTS 60 TIMES THE NUMBER OF TICKETS ■ EXPLAINER, P6 The twists & turns in Netflix’s India story While it has faced flak over some of its content, India is its second largest market with over 10 million viewers ■ PERSONAL FINANCE, P7 Invest in business cycle funds to generate alpha Taking the SIP route in these thematic funds is better ■ eFE, P10 Freshers become lifeline for GCCs GCCs attract top talent with higher salaries, stability & skill growth India’s live entertainment economy booms, so does scalping RITWIK SHARMA New Delhi, September 29 IN 2007, WHEN hard rock legends Led Zeppelin reunited after nearly three decades, the concert website crashed immediatelyas one million fans logged in to grab less than 20,000 tickets. Such frenzy had been unheard of in India for decades.But not anymore. Last week, tickets for upcoming ColdplayconcertsinMumbaiinJanuary 2025 vanished instantly and were resold at sky-high rates. More than 13 million people swarmed to theofficialplatform,BookMyShow, for 150,000 tickets. The platform distanced itself from resellers and filedapolicecomplaintasfrustrated fansraisedquestionsaboutfairness. Originally priced in the range of FEVER PITCH ■ Demand for premium live 13 million entertainment surged 82% last year over 2022, according to BookMyShow data fans vied for 150,000 tickets for Coldplay's upcoming Mumbai concerts in January 2025 ■ 13.5 mn people attended live entertainment across over 26,000 events in 2023 ■ Tickets, priced at `2,000-35,000, were listed at reselling platforms for up to `10 lakh `2,000 to `35,000,the tickets were listed at reselling platforms at eyewatering rates that shot up to `10 lakh.On behalf of fans,a lawyer also filed a complaint with the Mumbai Police’s economic offences wing About againstBookMyShowandUS-based concertpromoterLiveNation,accusing them of unethical practices. A representative of Live Nation acknowledged the record demand in India for Coldplay, putting it at “60 times the number of available tickets”.“With so many eager fans, we commend BookMyShow for tackling scalpers (those who buy and resell tickets at exorbitant prices) and protecting access to tickets for fans,”Live Nation said in an email response to FE.LiveNation, whichpromotesseveralbignamesin theindustry,seesIndiaasanexciting and growing market for live music. “The success of Lollapalooza India (2023and2024)andtherecentColdplaysaleshighlighttheuntappedfan demand for live experiences. With nearly 20% of the world’s population,wearefocusedonhelpingmore international artists visit local fans, while also helping to expand the global popularityof SoutheastAsian pop with audiences worldwide,”the representative added. A spokesperson for Viagogo, a Switzerland-based platform that was among the resellers of Coldplay tickets, told FE, “Viagogo is a safe, secure,andregulatedglobalmarketplacethatisopentoall.Ourplatform is fullycompliantwith Indian law— asitisinallmarketsinwhichitoperates.Tickets listed on Viagogo come from a range of sources including multinationaleventorganisers,professional resellers, corporate ticket holders,season ticket holders,sponsors, and fans who simply can no longerattend an event.” AmitGurbaxani,musicjournalist and co-founder of The Indian Music Charts Podcast,said that although it is common abroad,it is arguably the first time that India is witnessing such clamour over concert tickets. “Obviously,there is a broken system when it comes to concert tickets.We keep hearing about howpeople have paid10timestheticketpriceforTaylorSwift in the US,” he said. Continued on Page 13 Kolkata