OPINION, P2 MIND & GAMES State election, nation-wide effect IDEA EXCHANGE A POPULATION THAT POLLUTES ITSELF INTO EXTINCTION (AND IT’S NOT US) RS Sharma ‘Who does my data belong to? If we can be clear on ownership, we can be clear on privacy’ Page 4 Humans can learn a lesson from a soil bacteria that, when allowed to grow at will, ends up killing its entire population due to the resulting pollution Page 10 ACROSS THE AISLE , P CHIDAMBARAM Vol II No. 366 SPOTLIGHT Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM THREAD OF HOPE MUMBAI SUNDAY, MAY 6, 2018 26 Pages, `10 LEISURE YES WE CANNES The spotlight will be on Mumbai and Manto in an all-women line-up for Indian cinema at the forthcoming film festival Page 8 WORDSWORTH THE HILLS HAVE EYES In Pursuit of Conflict is a good starting point for anybody wanting a peek into the politics of the north-east and in understanding why the region is always on the boil Page 5 FINANCIALEXPRESS ON SUNDAY READ TO LEAD PUBLISHED FROM:AHMEDABAD, BENGALURU, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI, PUNE GEM AND JEWELLERY EXPORT PROMOTION COUNCIL Don’t cut lending to jewellers, banks urged ● White paper prepared with suggestions to mitigate risk perceptions in jewellery sector Credit growth subdued in recent years (Loans to gems & jewellery, in ` cr) 72,731 72,700 69,889 71,819 69,036 61,144 51,326 39,743 BANIKINKAR PATTANAYAK New Delhi, May 5 WORRIEDABOUTTHE potential falloutofthe$2-billionfraudat PunjabNationalBankinvolving jewellersNiravModiandMehul Choksi,thecommerceministrybacked Gem and Jewellery Export Promotion Council (GJEPC) has asked banks not to trim credit exposure to the labour-intensive jewellery sector,citing its damaging impact on exports and jobs. In a white paper, prepared in consultation with bankers after the country’s biggest banking fraud was made public in February,the council has suggestedanumberofproposals — ranging from risk-based scrutinyof a jeweller’s account while giving loans to evaluation of a jeweller’s stocks at QuickPicks China’s first CAD in 17 years CHINA HAS RECORDED its first quarterly current account deficit in nearly 17 years, ending its dream run of accumulating trade surplus as a top exporter for a period during which it amassed the world's largest foreign exchange reserves of over $3.14 trillion, reports PTI. China saw a current account deficit of $28.2 billion in the first quarter of this year, the country's first quarterly deficit since the second quarter of 2001. PAGE 11 Trump, Moon meet on May 22 AHEAD OF HIS much-awaited summit with North Korean leader Kim Jong Un, US President Donald Trump will host his South Korean counterpart Moon Jae-in at the White House on May 22, according to an official announcement on Saturday, reports PTI. During the meeting, Moon would brief Trump on his recent summit meeting with North Korean leader Kim Jong-un. Moon met Kim Jong-un at a Korean border village last week. PAGE 11 ODD & EVEN The weaver community in India continues to languish in obscurity. But there is hope and help Page 7 ROHNIT PHORE 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Outstanding as of end-March each year least once a year by independent valuers and adoption of international financial reporting standards byjewellers — to mitigate risk perceptions in the gems and jewellery sector that has often been accused of opaque dealings. TheGJEPCalsoproposedthat workingcapitallimitbeassessed in dollar term to help exporters and insulate them against foreignexchangefluctuation. In the white paper, which will be released formally next week, the GJEPC said: “Downgrading of the (jewellery) trade will further lead to spiking up Source: RBI costs,such as interest,processing fee.” Any such move will make operations unviable, as gems and jewellery is a labour and working capital-intensive sector with low margins. The banks should, instead, look at the performance of each company and its business model whileextendingloans.“Besides, acredit-riskinvestigationteam should be set up to track and provideinformationfromtrade members, which can then be used by the bankers to take an informed credit decision.” The GJEPC has also proposed a meeting between the council, bankers and trade members once in a quarter for critical data analysis, among others. The council has proposed collateral securitybased on a company’s credit rating. Aftergood growth jump up to 2013-14, the pace of gross credit to the gems and jewellery sector slowed. It grew 5.3% to `72,700 crore as of March 30 from a year earlier, worse than an 8.4% rise in non-food credit.As such,gross exports of gems and jewellery in the last fiscal dropped 7.8% to $35.47 billion when the country's overall merchandise exports jumped almost 10%. GJEPCwill organise a banking summit in Mumbai on May 11. The council’s chairman Pramod Agarwal said, “The banking seminar, to be held this month, gives us a joint forum to regain trust and ensure all bankers have a profitable experience in lending this trade.” GJEPC vice-chairman Colin Shah said the white paper would address and find solutions to specific issues like assessing working capital limits, collateral security, related partytransactions and thevaluation of stock. Continued on Page 11 Modi: ‘PPP Congress’ after K’taka elections ● ADB president says need to reinvent to meet new challenges ALL GUNS BLAZING, Prime Minister Narendra Modi on Saturday mounted a scathing attack on the Congress over corruption,and asserted itwill become 'Punjab, Puducherry, Parivar' Congress after its defeat in the Karnataka Assembly polls, reports PTI. With the D-day for the polls drawing closer, Modi upped the ante against the Siddaramaiah government,alleging it has become a'corruption tank' for the Congress with a pipeline connected to Delhi, "where the money reaches directly". He also accused the top Congress leadership of auctioning tickets, party positions and even the chief minister’s post. Modi was speaking at an election rally in Gadag, where he predicted the state's ruling party would be decimated in the elections. PAGE 3 Despite IPL season, no lull for Hindi entertainment channels ● Audiences of daily soaps especially loyal; no dip in ratings ANUSHREE BHATTACHARYYA NEW DELHI, MAY 5 THE ONGOING INDIAN Premier League (IPL) might be reaching peaklevelsamongbothliveand TV audiences in terms of interest,butit’sbusinessasusualfor the Hindi general entertainment channels (GEC) aswell.As they launch new content even as the IPL as in progress, GECs are betting on the varied audience in a household. “As most households still have one TV set, the remote resides with the home-maker who prefers her daily dose of soaps instead of cricket.This is also a reason why video streaming platforms like Hotstar are able to find a sizeable share of customers. Also, as long as there isn't any overlap betweentimingofIPLmatches (which are held either in the New Hindi shows ZEE TV's: Ishq Subhan Allah Colors: Bepannaah afternoon orat 8 pm),and new shows,viewerswill continue to watch different kinds of content,” says Himanka Das, CEO, Vizeum, media planning and buying firm from the stable of Dentsu Aegis Network. So you had various channels, right from Star India to Sony Pictures and ZEE launching newshows right before the beginning of T20, or in between the games. ZEE TV rolled out a new show called Ishq Subhan Allah from March 14, Colors launched Bepan- Sony: Yeh Pyaar Nahi Toh Kya Hai Star India: Khichdi, Mayavi Maling naah and Sony released Yeh Pyaar Nahi Toh Kya Hai and StarIndia launched the second season of its popular show Khichdi and Mayavi Maling from the first week of May. However, the popularity of IPL still remains strong among viewers. Overall viewership of the tournament across all platforms — TV (in-home and outof-home)anddigital(Hotstar)in the third week among urban audienceswas30%higherthan the comparable number of matches last year, claims Star ‘Economic centre of gravity shifting to Asia-Pacific’ India. The tournament has reached 476 million viewers acrossscreensacrossIndiasofar. Thebroadcasterclaimsthat viewershipinregionalmarkets, including southern and West Bengal,grew38%innumberof impressions when compared withlastyear’smatchesplayed at the same time. Atotal of 371 millionviewers tuned in to watch the Vivo Indian Premier League (IPL) during the first week between April 7 and 13,data released by Star India showed. This includes viewership across the 10 channels of Star India, as well as Hotstar. The total viewership on television stood at 288.4 million as per data released by TV audience measurement agency Barc (Barc 2+U+R), while 82.4 million viewers watched the games on Hotstar. But long running fiction or non-fiction shows on Hindi GECs haven’t seen an adverse impact on viewership, thanks to the existing fan base, while broadcasters continue to launch newshows to maintain stickiness. Continued on Page 11 Asian Development Bank president Takehiko Nakao PRESS TRUST OF INDIA MANILA, MAY 5 WITH THE ECONOMIC centre of gravity shifting to the APAC region, Asian Development Bank(ADB)presidentTakehiko Nakao on Saturdaycommitted to ‘reinventing’ the bank to meet the challenges of a transforming Asia. In his opening address at the51stannualmeetingofthe ADB, Nakao said the multilateral lenderis developing a new long-term 'Strategy 2030' which will renew its commitment to eradicate poverty in the region and expand vision to achieve a prosperous,inclusive, resilient and sustainable Asia and the Pacific (APAC). “Today, the economic centre of gravity is shifting toAsia and the Pacific, and almost all ourdeveloping membercountries have advanced to middleincome status. Yet, large challenges remain, and new ones are emerging,”Nakao said. “There is still persistent AP poverty. We must address rising inequality, growing environmental pressures, and rapid urbanisation. Aging in somecountriesandanincreasingyouth population in others present opportunities as well as challenges,”he added. Stating that ADB plans to complete the process of formulating the 'Strategy 2030' by mid-2018,he said the multilateral lenderwill pursue differentiated approach for lending to various developing member countries.“Our task ahead is to reinvent ADB and meet the challenges of a transforming Asia and the Pacific,” Nakao said. Highlighting 10 priorities in 'Strategy 2030', Nakao said ADB will foster regional cooperation and integration,building on its experience in subregional cooperation initiatives since the 1990s in CentralAsia,SouthAsia,Southeast Asia,and the Pacific. Continued on Page 11 India nudges ADB to invest in fintech, health startups PRESS TRUST OF INDIA MANILA, MAY 5 INDIA ON SATURDAY asked ADB to invest in fintech and health startups to help improve the quality of life in Asia,while sharpening focus on infrastructure lending by ensuring loan disbursals withinayearofrequest.Economic affairs secretary Subhash Chandra Garg said the Asian Development Bank (ADB) should factor in the number of poor people in a country while deciding resource allocation. He was speaking on the sidelines of ADB'sannualboardmeeting. “ADB should continue to place its primary focus on infrastructure creation, energy, communication, transportation, cities, rivers cleaning. New technologies is the new revolution — the digitalage.Whileagriculture and industrial age will continue to exist,we should not ignore that the digital age is going to shape our future. ADB should become a facilitatorof ushering in the digital age in Asia. It should investininnovations,instartups and venture capitals to help countries produce goods and services using technologies in the digital age. It should invest in fintech, healthtech and other waysinwhichpublicservices can be delivered to people of Asiatoimprovetheirquality of life,”Garg said. Continued on Page 11 Indian candyland a market of riches Demand for the simple confectionary keeps rising, and candy makers are trying hard to innovate on offerings MEGHNA SHARMA Mumbai, May 5 AFTER THE SUCCESS of Pulse Kachcha Aam,wherein the DS Group captured the hard boiled candy (HBC) market in the country by reaching `100 crorewithin just eight months of its launch in 2015,the company is steadily increasing its offerings with a collection of niche flavours like guava and litchi and popularflavours like raw mango and orange and pineapple over the course of time. The confectionery market in India is valued at $1.5 billion, growing at a two-year CAGR of 9%, as per Nielsen India. Various reports suggest that India is the fastest growing confectionery market among the BRIC countries. Indian consumers look for the most fun and enjoyable products. This means manufacturers need to innovate with new and novel shapes, textures, flavours and packs. The Indian candy market is divided into three main categories — sugar candy, chocolate candy and gum candy — on the basis of type,region and competitors. “Innovationinflavourswas a key to our brand success.The in-house R&D team tried ON TUESDAY ‘SWEET NOTHINGS’ many different formats and afterextensive taste sampling, the final mandatewas given to the Kachcha Aam flavour with a tangy twist,” recalls DS Group’s new product development VP Shashank Surana. Similarly,ParleProductshas kept innovation at the core of conceptualisingandmanufacturing products.The company has created and manufactured iconic confectionery brands such as Kismi and Melody.“A majority of confectionery brands, including Parle, are dominated by the 50 paise price point.We are consciously moving towards the `1 price point,” says Krishna Rao, category head,Parle Products. With flavour and pricing being the most important factorsinthecategory,companies havetriedtocaptureaudiences and play by their own rules. Over the last few years, many have observed an increase in purchase of thewholesale confectionery bags priced at `50 and `100,which is a trend that is likely to continue. The north region of India constitutes the largest share in the candy market followed by the west region.According to a report by Research and Markets,metros such as Delhi/NCR, Mumbai, Hyderabad, Bengaluru, Chandigarh, Chennai and Kolkata are amongst the leading demand generators of candies in the country,whiletierIIcitieshave also been contributing. Whatisworthnotingisthat today, most candy segments target not just children, but youngsters as well. To expand their horizons, many have moved beyond advertising in children’s books and traditional mediums too.
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