COMPANIES | PAGE 6 Osamu Suzuki, architect of India’s auto revolution, dies WillVodafone Idea see a turnaround in 2025? AHMEDABAD, SATURDAY, DECEMBER 28, 2024 VOL NO. XIX 177, 24 PAGES, `12 INTERNATIONAL | PAGE 14 COMPANIES | PAGE 6 Japan's cabinet approves record $730-bn budget FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 78,699.07 ▲ 226.59 NIFTY: 23,813.40 ▲ 63.20 NIKKEI 225: 40,281.16 ▲ 713.10 HANG SENG: 20,090.46 ▼ 7.83 `/$: 85.54 ▼ 0.28 `/€: 89.11 ▼ 0.43 BRENT: $73.89 ▲ $0.63 GOLD: `76,124 ▲ `134 ● ANATION PAYS HOMAGE ● BYJU RAVEENDRAN, CO-FOUNDER & CEO, BYJU’S From boom to bust »INSIDE« ■ AREFORMERWHO PUNCHEDABOVE HIS POLITICALWEIGHTP4 ■ AFTERACREDITABLE FIRSTINNINGSAS PM,ATOUGHER SECONDTERM P5 ■ MANMOHAN SINGH AS AN ECONOMIC REFORMER, BY C RANGARAJAN P5 ■ HISTORYWILL REMEMBER HIM WITH GRATITUDE, BY ARVIND MAYARAM P4 ■ ATRULY GREAT SON OF INDIA, BY RAGHURAM RAJAN P8 ■ THE QUIETCATALYST, BYS RAMADORAI, P8 ■ SINGH HAS LEFT A GREAT LEGACY BEHIND, BY SUDIPTO MUNDLE P2 Prime Minister Narendra Modi pays his last respects to former PM Manmohan Singh at the latter's residence, in New Delhi on Friday. President Droupadi Murmu, Vice-President Jagdeep Dhankhar, and several leaders cutting across party lines, also paid tributes to Singh. His last rites will be performed at Nigambodh Ghat today with full state honours PTI ■ PAGE 13 FE S P E C I A L S Gear up for an incredible India Empty and scenic roads in our country that can be on your go-to list next year. CAD shrinks to 1.2% in Q2 INDIA’S CURRENT ACCOUNT deficit (CAD) shrunk marginally in Q2FY25 to 1.2% of GDP from 1.3% in Q2FY24, primarily due to a rise in services exports, data released by RBI showed on Friday. In absolute terms,the CAD stood at $11.2 billion in Q2,compared with $11.3 billion in the same quarter of FY24. ■ PAGE 2 ■ PERSONAL FINANCE, P9 85.27 »INSIDE« KEYTHEMES: SOUTHERN FILMS STEAL THE SHOW *over previous close 6 -0.36 South Korean Won 2 -0.32 Indian Rupee .25 -0.25 Indonesian Rupiah 9 -0.09 Taiwanese Dollar 7 -0.07 Singapore Dollar 4 -0.04 Malaysian Ringgit Offshore Chinese 3 -0.03 Renminbi .02 -0.02 Chinese Renminbi Hong Kong Dollar 08 0.08 % change on Dec 27* Source : Bloomberg could test 109.90 levelswith 105.50 actingasamajorsupport.Inthenear term,tradersexpecttherupeetotest 86.50/$oreven87/$.KunalSodhani, V-P,treasury,Shinhan Bank,expects support for the rupee at levels of 85.85 and 86.20.“There are significant arbitrage opportunities in onshore-offshore trades,” he said. Abhilash Koikkara, head (forex andcommodity)atNuvamaProfessional Client Group, sees the rupee in the range of 86-86.50 by endMarch. “The RBI will not stand in the way of gradual depreciation if the dollar strengthens and other emerging market currencies continue to depreciate,”Koikkara said. Continued on Page 15 Forex reserves at 7-month low Govt to borrow `4Lcr viaT-bills FOREX RESERVES DROPPED by a further $8.478 billion to $644.391 billion for the week ended December 20, RBI said on Friday, reports PTI. In the previous reporting week, the reserves had dropped by $1.988 billion to a sixmonthlowof$652.869billion.The reserveshavebeendecliningforthe last fewweeks. ■ PAGE 2 THEGOVERNMENTISsettoborrow `3.94lakhcrorefromthemarketvia treasury bills (T-bills), RBI said in a press release. On Friday, the central bank released the calendar for the auctionofT-bills.Thecentralgovernmentissettoborrow`1.68lakhcrore via91-dayT-bills,`1.28lakhcrorevia 182-dayT-billsand`98,000crorevia 364-dayT-bills,RBIsaid. ■ PAGE 13 LOW ON BLING STORM-V KRISHNA BAROT & MUKESH JAGOTA Ahmedabad/New Delhi, December 27 BEING AT ONCE import-intensive and export-oriented, the gems and jewellery industry can withstand the current fall of the rupee,butwill marketing strategies propelled the startup to global prominence. By2022,Byju’swasvalued at $22 billion,making it a unicorn celebratedworldwide.It expanded aggressively,acquiring around 20 companies foraround $3.63 billion,including global names like Osmo andAakash Educational Services,marking its forayinto offline learning aswell. The companyalso attracted significant investorinterest, including from global heavyweights such as Mark Zuckerberg’s Chan Zuckerberg Initiative.High-profile endorsements,such as Lionel Messi’s appointment as a brand ambassadorin 2022,further solidified its image as a pioneering edtech firm. However,signs of decline began to showwhen it posted a loss of `4,588 crore in FY21.In FY22,the same swelled to `8,245 crore.Losses in itself forstartups were not something unique to Byju’s,but thiswas accompanied byallegations of poorfinancial management,lack of transparency,and aggressivevaluation metrics,whichwere seen to alienate investorswhile raising red flags among auditors.Thiswas compounded byregulatory scrutiny; in 2023,Deloitte resigned as the company’s auditor, citing irregularities in financial disclosures.Allegations of foreign exchange violations further sullied its reputation. Continued on Page 15 SHYAM KUMAR PRASAD Asian currencies performance against $ 0.15 innovation & ambition ignored the pitfalls of rapid expansion & flawed governance PAGE 23 Dec 26 (close) Japanese Yen ● The spirit of Householdsspend slightlymoreonfood itemsin2023-24 ● Urban-rural gap declines marginally TAKING STOCK UltraTechto buy8.7%stake inStarCement for`851crore PRIYANSH VERMA New Delhi, December 27 AS THE DEBATE on whether to cut the weight of food in the retail inflationindexrages,thelatestsurveyhas shown a marginal increase in food's share in household consumption, and a resultant dip in discretionary spendingonotheritemslikedurable goods,education,and medicines. This raises fresh questions on the strength of consumption demand in the economy, and bears out high-frequencydata that reveal a slowing of urban consumption. According to the Household Consumption Expenditure Survey (HCES) 2023-24, the share of food items in the average monthly per capita consumption expenditure (MPCE) of households in rural areas has risen to 48.43% from 47.47% in 2022-23; in urban areas,the rise was to 40.31% from 39.7%. Besides,cereals’share in MPCE has also risen to 7.6% in 2023-24 from 6.92% in 2022-23, in the rural areas,and in urban areas, 1,430 3,860 4,247 PRESS TRUST OF INDIA New Delhi/Kolkata, Dec 27 2,630 the gems and jewellery sector, which have employment potential of 5 million in times of brisk business,fell 10.1% to $19.2 billion. Vipul Shah, chairman of Gems and Jewellery Export Promotion Council, said: “We are hoping that 2025maybringimprovedprospects for the sector as polished diamond prices have stabilised and showing somesignsofrecovery.However,the demand is still subdued in the key export markets,with buyers focusing more on jewellery.” The US and European markets for jewellery are holding up and there has been a return of demand in West Asia,he noted. ULTRATECH CEMENT, THE country’s largest cement maker, on Friday said it will acquire a minority stake of 8.69% from the promoters of Meghalaya-based StarCement in a deal worth up to `851 crore. The cement major will pick up stakes from Rajendra Chamaria and hisfamily’sholdings,partofthepromoter group, according to sources. OnlytheChamariafamilyissellingits stake in Star Cement, they said, and the other promoters who control Century Ply remain committed and are not divesting anyshares. Rajendra Chamaria,when asked for comments, did not deny the developmentbut refrained from »INSIDE« divulgingdetails. JSW ENERGY “The ChamaTO ACQUIRE rias are gradually O2 POWER IN selling out and `12,468-CR have approached DEAL co-promoterslike PAGE 7 Sajjan Bhajanka and Sanjay Agarwal.Currently,the Chamarias’holdings are estimated to be around 1314%.Anynewinvestorwillnothavea board seat,” one of the sources said. According to the latest shareholding data, the total stake of all promotershareholderswiththesurname,Chamaria,stands at 11.25%. The development comes three days after the Aditya Birla group firm completed the acquisition of a controlling stake in India Cements, turning the south-based company into its subsidiary. Thefirmisexpandingitscapacity through acquisitions and capacity enhancementasitfacescompetition fromAdaniGroup’sAmbujacement, which is the second-largest player and is also scaling up its capacity. Continued on Page 15 Continued on Page 15 6,521 7,078 1,430 2,054 2,142 2,630 3,544 3,674 Average MPCE (in `) HCES 2011-12 HCES 2022-23 HCES 2023-24 to 4.8% from 4.51%. Continued on Page 7 Jewelleryunits lose sheen as demand slumps THE RUPEE A top-up health plan, in comparison, covers only one claim 85.54 OF THE YEAR - V Exporters pin hopes on China stimulus, domestic demand; rupee impact minimal ■ MOTOBAHN, P9 Take super top-up for more than one insurance claim Dec 27 (close) NEWSMAKERS CURRENT PRICES Urban Rural AFTER A RECORD `1.6 lakh crore raised through IPOs in 2024, more companies are expected to tap the primary market in the coming year, despite the not-so-rosy outlook for equities next year, reports Akshata Gorde. Dollar vs Rupee T ROUBLES FOR BYJU Raveendran,co-founder and CEO of Byju’s,once the country’s most valued edtech firm,may have started a fewyears ago,but 2024 saw the curtains finally coming down on the meteoric rise of the former math teacher. Though Raveendran surfaced several times during theyearand claimed to his employees that he’s going to bounce back,such hopes seem more like a mirage.Even if Byju’s is able to get out of the insolvencyproceedings,which it is fighting hard,it’s certain that the good old timeswill not return. Raveendran’s meteoric rise from a village in Kerala,to the helm of Byju’s — the world’s most valuable ed-tech startup — embodied the spirit of innovation and ambition. However,his journey also illustrates the pitfalls of rapid expansion and flawed governance,culminating in a precipitous fall this year. Founded in 2011,Byju’s leveraged a growing appetite for digital education solutions, particularlyamong the country’s burgeoning middle class. Raveendran’s charismatic leadership and sharp 2011-12 PRICES Urban Rural More firms set to tap primary market in coming year THE RUPEE LOST more value on Friday, tumbling to a new low of 85.54 against the dollar.In a thinlytraded market, the local currency gave up 28 paise — the sharpest daily fall since June. Intra-session, the rupee plummeted by a steep 55 paise before recovering after what dealers said was intervention by the Reserve Bank of India (RBI). With this, the rupee has depreciated by about 3% in 2024 so far,with much of the fall coming since end-September. Nonetheless,it continues to outperform Asian peers, thanks to the RBI stepping in.In October,the centralbanknetsold$9.28billioninthe spotmarket.Thedollarhasputon7% sincetheUSFed’sSeptemberratecut. Demand for dollars on Friday came primarily from oil importers making month-end payments.Volumes in the currency market,dealers said,were lowerthan usual,possibly exacerbating the fall of the rupee.The expiry of December currency futures contracts on the exchange traded platform also added to the demand for dollars as did transactions in the non-deliverable forwards (NDF) market. The rupee could continue to depreciate as the Trump government’s policies are expected to keep the dollar strong. The dollar index 0.22 THE GOVERNMENT ON Friday extended its mandate for imported coal-based power plants to operate at full capacity until February 28, a government circular showed, reports Reuters. India's coal-fired power output had fallen for a second straight month in September. ■ PAGE 3 FREE FALL CONTINUES Philippine Peso Mandate extended for imported coal plants at full capacity ANUPREKSHA JAIN Mumbai, December 27 (inverted scale) THE RESERVE BANK of India (RBI) on Friday allowed prepaid payment instrument (PPI) holders to make and receive UPI payments through third-party mobile applications, reports Sachin Kumar. The move will allow users to link their digital wallets to UPI-enabled apps. ■ PAGE 13 Reclosesinon86/$ 0.47 PPI holders can now make UPI payments via third-party apps FALLS 28 PAISE,STEEPESTSINCE JUNE Thai Baht IN THE NEWS RISHI RAJ New Delhi, December 27 $62.88 million $19.2 billion gross exports for polished lab-grown diamonds as of Nov, a 42.4% decline 30% exports of gems and jewellery sector in Apr-Nov, a drop of 10.1% $666 million have serious concerns about the continued sluggishness in demand from key export markets. In the major industry clusters, capacity utilisation has plummeted to gross exports of cut & polished diamonds in Nov, a drop of 39.8% abysmally low levels. The depreciation of the rupee will not add to the topline or bottomline of the gems and jewellery exporters,as over95% of inputs are of 15,000 diamond cutting and processing units in Surat have not reopened since Diwali imported. In the domestic market, however, prices of precious metals and stoneswill increase,which may be lucrative for the units. In April-November, exports of