ECONOMY, P3 COMPANIES, P4 MARKETS, P7 GOVT SCHEME IMPACT CHARGED UP ROBUST OUTLOOK Hero MotoCorp all set to launch its first EV Vida next month Demand for gold is only expected to rise: Manappuram MD Rice stocks to fall below buffer if free ration stays through FY23 MUMBAI, SATURDAY, SEPTEMBER 17, 2022 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL LXII NO. 219, 14 PAGES, `10.00 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 SENSEX: 58,840.79 ▼ 1,093.22 NIFTY: 17,530.85▼ 346.55 NIKKEI 225: 27,567.65 ▼ 308.55 HANG SENG: 18,761.69 ▼ 168.69 `/$: 79.75 ▼ 0.04 `/€: 79.50 ▲ 0.15 BRENT: $92.16 ▲ $1.32 GOLD: `49,112 ▼ `730 IN THE NEWS Paid-up capital limit of 'small companies' doubled THE GOVERNMENT HAS doubled the threshold of paid-up capital and turnover for ‘small companies’, a move that will reduce the compliance burden of a larger number of entities which would now qualify for this tag and enable them to enjoy certain assorted benefits, reports fe Bureau in New Delhi. ■ PAGE 2 DGFT notifies changes to facilitate rupee trade THE COMMERCE MINISTRY on Friday notified its decision to allow invoicing, payment and settlement of external trade in the rupee, reports fe Bureau in New Delhi. The move was required to align the foreign trade policy of the government with the July announcement of the Reserve Bank of India (RBI) and facilitate rupee trade. ■ PAGE 3 Patanjali looks to more than double turnover to `1 trn PATANJALI GROUP, THE Baba Ramdev-owned company is looking to more than double its turnover to `1 trillion from the present `40,000 crore, over the next five years, reports fe Bureau in New Delhi. Patanjali will be listing four companies on the bourses over five years, which will include Patanjali Ayurved, Patanjali Medicine, Patanjali Wellness and Patanjali Lifestyle. INDICES ON A CRASH COURSE; VIX SURGES 8% Bear hug on recession fears World may be edging towards a recession in 2023, World Bank says THIRD DAY OF FALL SENSEX 59,934 ASHLEY COUTINHO Mumbai, September 16 Sept 15 EQUITIESTANKED ON Fridayamid weak global cues as concerns of a global recession, sticky inflation,risingcommodityprices and the possibility of aggressive tightening by central banks spooked investors. As central banks across the world simultaneously hike interest rates UltraTech Cement Tech Mahindra Infosys Mahindra & Mahindra Wipro 6,481.15 1,034.30 1,379.15 1,250.50 401.85 LTP (`) % Chg -4.45 -4.51 -3.69 54,000 `/10 gram 52,000 50,000 51,125 48,000 BONDS POSTWORST WEEK IN 3 MONTHS PAGE 12 46,000 Mar 16, 2022 other policy actions may not be sufficient to bring global inflation back down to levels seen before the pandemic, the Bank warned. "Global growth is slowing sharply,with further slowing likely as more countries fall into recession. My deep concern is that these trendswillpersist,withlong-lasting consequences that are devastating 49,112 Sept 16, 2022 for people in emerging market and developing economies," said World Bank Group president David Malpass. The benchmark BSE Sensex slid over 1,200 points on Friday before closing at 58,840, down 1,093 points or1.8%.The gauge has shed 1,731 points, or 2.9%, in the last three sessions and has slid 1.6% ● MODI TO PUTIN: ‘TODAY’S ERA IS NOT OFWAR’ JSW Ports retires `862-cr debt to consortium of banks JSW PORTS, A wholly-owned subsidiary of Sajjan Jindal-led JSW Infrastructure, has retired high-cost rupee debt of `862 crore to a consortium of banks, reports Rajesh Kurup in Mumbai. ■ PAGE 4 SPECIAL Tata to ignite hydrogen in ICE While the eventual goal is FCEV, Tata also wants to burn hydrogen inside the existing internal combustion engine. ■ Motobahn, P8 58,841 Sept 16 the past week.The Nifty 50 settled at 17,530, down 346 points or 1.9%. The broader markets also suffered, with the Nifty midcap and smallcap falling in the range of 2.5% to 3%. The Volatility Index - India VIX -- surged 8% to settle near 20-odd level. Continued on Page 2 Windfall tax on domestic crude cut FE BUREAU New Delhi, September 16 ■ PAGE 4 FE -3.19 -3.58 GOLD AT SIX-MONTH LOW INSIDE in response to inflation, the world may be edging toward a global recession in 2023 and a string of financial crises in emerging markets and developing economies that would do them lasting harm, a new study by the World Bank said. The currently expected trajectory of interest-rate increases and TOP 5 LOSERS Transit right at the centre of PM Modi’s SCO speech PM Narendra Modi has urged Shanghai Cooperation Organisation memberstatesonFriday to‘giveeachotherfullrighttotransit’,reportsShubhajitRoyinNewDelhi.AddressingtheSCOsummitthatincludedChinaPresident Xi Jinping, Russian President Vladimir Putin and Pakistan Prime MinisterShehbazSharifintheUzbekistancityofSamarkand,Modiframed the‘righttotransit’inthecontextofconnectivityandhowitcouldhelpestablish reliable and resilient supplychains in the region. Lack of transit across Pakistan’s territory has been a challenge for India to access Central Asian markets.Modi,inhismeetingwithPutin(picturedabove),calledforending theconflictinUkrainesoon,saying‘today'seraisnotofwar’. PAGE 14 PTI THE CENTRE ON Friday slashed the windfall tax on domestic crude by 21% to `10,500/tonne, in the fifth fortnightly review of the oneoff tax on oilcompanies,taking into consideration the cooling of global crude prices. It also cut the special levy on export of diesel by 26% to `10/litre and trimmed the tax on jet fuel shipments bya steeper44% to `5/litre, as refining margins moderated from last revision. The move will benefit state-run ONGC & OIL and private refiner Reliance Industries, which is the principal exporter of petroleum products. The impostswere introduced on July 1,to ensure that the exchequer benefits from the windfall gains of oil companiesdue to elevated crude prices and refining margins. These levies have since been reviewed on a fortnightly basis. The Indian basket of crude has moderated to $92.68/barrel on average in the first 15-days of September compared with the August average of $97.4/bbl. Benchmark Singapore's gross refining margin (GRM) was trading in the range of $8-12/bbl since August. Continued on Page 12 CURRENTLY, ONLY FLIPKART QUICK DELIVERS SMARTPHONES IN 30-45 MINUTES Blinkit to now deliver Apple before you blink TUSHAR GOENKA Bengaluru, September 16 QUICK COMMERCE STARTUP firm Blinkit will now not only deliver apples within minutes but also Apple products, which includes the the newly launched iPhone 14. Mobile phones and other similar products like wearables, including iPhones are sold on e-commerce platforms but mostly the delivery is done within a day's time. Currently, only Flipkart Quick delivers smartphones in 30-45 minutes. However, Blinkit will deliver the iPhones within minutes.To begin with,this service will be available only in Delhi and Mumbai. Analysts are not sure whether this move of Blinkit will be successful as Apple being a premium brand has high aspirational value and a segment of customers look FAST DELIVERY MODEL Albinder Dhindsa, founder, Blinkit iPhone 14 in minutes! We have partnered with @UnicornAPR to bring Apple iPhone and accessories to Blinkit customers within minutes. Available in Delhi and Mumbai for now. Update to the latest @letsblinkit app version on your iOS and Android phones to buy. for some form of discounts.It's not clear whether Blinkit has worked out discounts with channel partners. While the quick commerce firm currently sells electronics accessories like cords, adapters, chargers etc, it will be retailing mobile phones -- only Apple phones and products,not Android products -- for the first time. For this,Blinkit has tied up with Apple reseller Unicorn.“iPhone 14 in minutes! We have partnered with Unicorn to bring Apple iPhone and accessories to Blinkit Taking on the giants ■ For now, Blinkit's latest offering will be available only in Delhi and Mumbai Unicornhas38pointsof interactionnationwide ■ 48% oftotal phones sales in India take placevia e-comm firms 92% online mobile sales through Amazon and Flipkart customers within minutes. Available in Delhi and Mumbai for now. Update to the latest Blinkit app version on your iOS and Android phones to buy,”Albinder Dhindsa, Blinkit CEO and founder, tweeted on Friday. “Blinkit's tie-up with Unicorn marks the first time Apple products are being made available to customers on a quick commerce platform like Blinkit, where they can get their hands on iPhone, Apple Watch, Airpods, and multiple Apple accessories within minutes,” the company said in a statement. Unicorn has 38 points of interaction nationwide, with Apple Mono Brand Stores and Apple authorised service centres in Mumbai, Delhi, Gurgaon, Pune, Ahmedabad, and Lucknow. This is the second such foray by Blinkit recently, unrelated to its core business. A few weeks ago, it launched printouts for customers in certain areas, where they can upload files and the quick commerce firm will deliver the printed version in minutes. Continued on Page 12 Adani names son Karan to helm cement business RAJESH KURUP Mumbai, September 16 INABOARD reshuffle on Fridayfollowingthe completionofthe acquisition of Switzerland-based building materials conglomerate Holcim's India assets -- Ambuja Cements and ACC -- billionaire GautamAdaniwas appointed asthe chairmanofAmbujaCementswhile his elder son Karan was named as a director of both the cement firms and as chairman of ACC. For Karan, this would be additional responsibilities, as the 35year-old is also the chief executive officer of Adani Ports and Special Economic Zone. Adani Group also named new independent directors on the boards of the two firms. These include former State Bank of India (SBI) chairman Rajnish Kumar on the Ambuja Cement board and former Shell India head Nitin Shukla on the ACC board.It named Ajay Kumar as the new CEO of Ambuja Cement in place of Neeraj Akhoury and Sridhar Balakrishnan for ACC. ACC also appointed Vinod Bahety as chief financial officer. The appointments followed a spate of resignations at both ACC andAmbuja.Holcimchiefexecutive officer,Jan Jenisch and head of Asia Pacific and member of the group executive committee Martin Kriegner stepped down from board of both the companies following the transfer of ownership. N S Sekhsaria, non-executive chairman of bothAmbuja andACC, Gautam Adani Karan Adani What makes cement an exciting business is the headroom for growth in India, which exceeds that of every other country well beyond 2050. —GAUTAM ADANI, CHAIRMAN, ADANI GROUP was among others to have tendered his resignation. However, he has been appointed as chairman emeritus of Ambuja,the company said. Separately,AmbujaCementswill raise upto `20,001 crore by way of preferential allotment of warrants toHarmoniaTradeandInvestment, an Adani family firm. Ambuja Cements will issue 477.48 million warrants to Harmonia Trade on a preferential basis, constituting 19.39% of share capital (post issue) at `418.87 each. Each warrant can be converted into a share within 18 months of issuance. Continued on Page 2 FM asks corporates to clear dues to MSMEs in 45 days FE BUREAU New Delhi, September 16 FINANCE MINISTER NIRMALA Sitharaman on Friday asked corporate India to settle dues of micro, small and medium enterprises (MSME)within 45 days of receiving the supplies to ease the liquidity woes of small vendors. Long delays in the settlement of dues by the central government departments/PSUs, state governments, state PSUs and private sector firms have undermined the MSME’s ability to sustain their business cycles. The MSME Act,2006 specifies a 45-day credit period for the recipient of any goods or services to pay the MSME supplier.Foranydelayed payment,the rate of interest would be three times the bank rate notified by the Reserve Bank of India. However,MSMEs usuallydon’t take recourse to the clause forfearof losing business. The minister on Friday also acknowledgedthattheCentre,state governments and state-owned enterprises have large outstanding dues to the MSME sector. Sitharaman said that in her meeting with bigbusinessestwodaysago,shehad appealed to them to ensure that the dues of smaller businesses are cleared in time. "The private sector and industry should commit to making the payments (to MSME) in 45 days along withthebooksofaccountsfiledwith The private sector and industry should commit to making the payments (to MSME) in 45 days along with the books of accounts filed with the Registrar of Companies which make mention of outstanding dues. The private sector should also be ahead in this issue —NIRMALA SITHARAMAN FINANCE MINISTER the Registrar of Companies which make mention of outstanding dues. The private sector should also be ahead in this issue,” Sitharaman said ataneventorganisedbyLaghuUdyog Bharati, an RSS-affiliate devoted to small businesses,in Mumbai. Continued on Page 12 FM calls for more female directors ...urges banks to focus on users COMPANIES NEEDS TO hire more women on boards and in leadership position and widen the base of female directors, finance minister Nirmala Sitharaman said on Friday, reports fe Bureau in New Delhi. STRESSING THE need for banks to do more on the technology & customerservices,FMsaidonFridaybanks’systems should talk to eachotherininterestofcustomer convenience,reports fe Bureau in Mumbai. PAGE 7 PAGE 7
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