Tuesday, 28th July ’20
Good morning, welcome to this amazing day. The government has decided to ban another 42 Chinese apps due to security concerns. India’s Coronavirus epidemic is now the fastest growing in the world increasing 20% over the past week. Deepak Parekh, head of HDFC bank requested RBI to not extend the moratorium period of debt repayments beyond 31st Aug, as corporates and individuals, with the ability to repay, are taking advantage of the deferred payments.
TMT pledges to give back and asks its readers to do one Act of Kindness today. We have this quote from Warren Buffett to start off your day,
Someone is sitting in the shade today because someone planted a tree a long time ago.
MARKETS
Markets: Nifty and Sensex closed with losses amid the rising Corona cases and the bad loans in 2020 of the major banks. A lot of heavyweights will report their earnings in the coming days and this will define the market trend. Gold prices smashed records to cross Rs 52k. Tech Mahindra Q1 profit jumps 21% to Rs 972 crore. Kotak Mahindra Bank reported a decline in YOY profit. Bharti Infratel quarterly profit also rose marginally.
TECHNOLOGY & INNOVATION
- Chinese telecom company Huawei Technologies Co has cut its India revenue target for 2020 by up to 50% and is laying off more than half of its staff in the country. This excludes those in research and development and the Global Service Centre. The reduction of targets by 50% was caused by Huawei losing two Bharti Airtel circles in Rajasthan and TN.
- Startups focused on the beauty and cosmetics sector like Nykaa and Juicy Chemistry have seen a V shaped demand recovery to pre-Covid-19 levels, on the back of “revenge shopping” and increased demand from small cities. This follows a drop of 70-80% in their business during the initial months of the lockdown. Nyka increases average order value by allowing orders only above Rs 1,500.
- Berlin based Cargo.one, an Air Freight booking marketplace which connects airlines with forwarders, have raised $18.6 Million in series A. They had seen bookings rise during the coronavirus crisis travel crunch as airlines seek alternatives to selling seats to passengers. COVID-19 has accelerated the adoption of digital distribution in air cargo.
WHAT ELSE IS COOKING
Homecoming of First batch of 5 Rafale jets: The first batch of the French-built multi-role fighter aircrafts is scheduled to arrive at Ambala air force station on Wednesday, almost four years after India signed an agreement with France to procure 36 Rafale jets under a ₹59,000-crore deal. Deemed to be a “gamechanger” for Indian Air Force, its meteor-beyond visual range air-to-air missile can take on an enemy aircraft at a range of over 100 km. They are also equipped with a few Indian-side enhancements to give the pilots an edge to operate in India like terrains.
Government launches “Mausam” app for weather forecasts: The mobile application Mausam will provide city-wise weather forecasts, now-casts, and other warnings. It has been designed and developed jointly by the International Crops Research Institute for the Semi-Arid Tropics,the Indian Institute of Tropical Meteorology, Pune, and the India Meteorological Department. The app will provide current weather information, including temperature, humidity, wind speed and direction, for 200 cities, with information updated 8 times a day.
Assam to provide its plasma donors, preference in government jobs: Assam said that symptomatic patients who donate plasma four weeks after recovery will get preference in government jobs and housing. For example, a donor may get extra marks if he or she is tied in any test or interview for a job. It would also bear the travel and other expenses for donors outside the state. Delhi and Odisha are also courting plasma donors for the recovery of their patients.
IN-DEPTH ANALYSIS
WUC to be waived off for 3 years!
Why is it in the news?
Waterways Usage Charges (WUC) have been waived off by the Ministry of Shipping for 3 years. This is done in accordance with the Centre’s vision to promote inland waterways as a supplementary, eco-friendly, and cheaper mode of transport.
How was the prior scenario?
Presently, the Inland Waterways Authority of India levied WUC for plying of inland cargo vessels on national waterways, which acted as a hindrance in administration of traffic movements & collection of traffic data.
What are the benefits of this change?
- Inland Waterway Traffic movement will increase to 110MMT in 2022-23 from 72MMT in 2019-20
- More industries will start using inland waterways for their logistical needs, that will promote Ease of Doing Business
- Reduce burden on other transport modes
India has 14,500 Km of navigable waterways that comprise canals, backwaters, rivers, creeks, etc. Presently, inland waterways mode of transport in India has only a 0.5% modal share, compared to 42% in Netherlands, 8.7% in China, 8.3% in the US, and 7% in Europe.
MANAGERS’ CORNER – Strategy Zone
BCG Three-Part Transformation Framework
Funding the journey
The first step of the transformation introduces a number of short-term initiatives that will achieve early, tangible wins to send cash to the bottom line, whether through cost cutting, revenue enhancement, or both. These “quick wins” will energize the organization, building momentum and freeing up capital for the larger transformation effort.
Winning in the Medium Term
While the first step is short term, real transformation starts here. Common to all transformations is the need to establish a fundamentally different competitive position. This can involve revamping commercial processes or operations, building digital capabilities and ventures, and transforming internal support functions such as R&D, IT, and HR. It may also involve rethinking their core business model and reevaluating the value propositions.
Organizing for Sustained Performance
The third step of the transformation is the simple but crucial need to sustain it. This means putting people first and creating an environment in which they can thrive. People go above and beyond the call of duty to deliver and sustain improved performance and in the process become exhausted. The company needs to develop the right culture to enable people to contribute, grow, find meaning, and be more productive.
THE MILLIONAIRE MINDSET- Person of the Day
Roshni Nadar – The ‘ITIndian’ Lady
The 38-year-old, only offspring of Shiv Nadar took over as Chairman of HCL Technologies, India’s third-largest IT services company by revenue, making her the richest woman in India and the only lady in the country, heading an IT firm with 150,000 employees, across 49 countries and revenue of $9.9 billion. Let’s understand the professional objectives of this new CEO while she opens fresh chapters in the Indian IT sphere.
- Roshni epitomizes a leader who weighs business and philanthropy equally, so it is quite likely to see her Habitat Trust pushing the mission of creating and conserving sustainable ecosystems through strategic partnerships and collaborations with all stakeholders, more structurally
- She believes in promoting diversity in HCL as one of her biggest goals, and she hopes to see more women in the domain of technology.
- The Kellogg School of Management alumnus will so be seen steering the company’s wheels through the impacts of COVID-19 and the temporary freeze on work visas by the U.S., a key market.
Definitely, succession planning has been smooth in Indian firms, but Roshni with her diversity of talents and her father in the Strategy head role will ease into the Chairman role. More to watch is how the Indian IT industry welcomes its first woman boss!
Written by Kumar Sourav Mohanty, Akansh Bhatt, and Shashank Dobhal
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