OPINION, P8 WELL BEING FE LINES Wannabe chief ministers HAIR’S HOW YOU CAN GET WINTER-READY Branding with colour How colours are used to convey messages in branding Page 9 The harsh weather, combined with high pollution, can impact your hair and skin. We give you handy tips to glow this season Page 6 ACROSS THE AISLE, P CHIDAMBARAM Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM VOL. XII, NO. 44 LEISURE AMJADALI KHAN PUNE FINANCIAL EXPRESS ON SUNDAY SUNDAY, NOVEMBER 27, 2022, 14 Pages, `10 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 , ‘I see great interest among the youth to learn classical music’ Page 7 READ TO LEAD H Y D E R A B A D , K O C H I , K O L K A T A , 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 GOVT PUSH DRIVING INVESTOR INTEREST Booming startups to make space tech cheaper PTI ● Eye global demand; focus on satellite launches ■ Pvt players ■ Indian players looking in India's space tech sector up from one in 2012 to over 100 in 2022 FROM JUST ONE in 2012 to Like that Steady Eddy in your regular weekend four-ball whom you’d rather not bet against, Abu Dhabi makes its case patiently. The capital emirate of the UAE has just three major golf courses IN THE NEWS RBI asks Paytm Payments Services to reapply for aggregator licence THE RESERVE Bank of India has asked Paytm Payments Services to resubmit an application for a payment aggregator licence within 120 days, the payments services company’s parent One97 Communications said in a press release late on Friday, reports fe Bureau in New Delhi. ■ PAGE 2 Qatar reviewing London investments after transport ads ban: Report QATAR HAS launched a review of its investments in London after the city’s transport authority this week banned the Gulf state's tourism advertisements on the capital's buses, taxis and underground train system, Saturday's Financial Times said, reports Reuters. Qatar is one of the biggest investors in London through its sovereign wealth fund. ■ PAGE 11 Dhruva Space, a space tech startup headquartered in Hyderabad specialising in small satellites. Nekkanti believes there are three factors contributing to the growth in participationofprivatefirmsin thespacesector—policy,access to capital and growth in the general ecosystem to serve markets outside of India.“All this is fuelled by the tremendous growth of requirements for satellites globally. A key to commercial success in the spaceindustryistheflighther- OYO posts positive Ebitda in H1FY23 ● Net losses amount to `747 crore REPORT CARD ■ Positive adjusted Ebitda of `62.93 cr FE BUREAU Bengaluru, November 26 HOSPITALITYANDTRAVEL tech startup OYO reported a 24% YoY rise in revenues to `2,904.62 crore,while narrowingitslossesto`747.13crorein thefirsthalfofthefinancialyear 2023(H1FY23).Thehospitality unicorn, however, reported a positive adjusted Ebitda of `62.93 crore in H1FY23 compared to a negative Ebitda of `280.36 crore in the same periodlastyear. compared to negative Ebitda of `280.36 cr in same period last year ■ 24% y-o-y rise in revenues to `2,904.62 cr ■ OYO had filed DRHP with Sebi last year to raise `8,430 cr, but later scrapped plan The latest financials from OYOwerepartofafreshaddendumfiledwithmarketregulator Sebi on Saturday.OYO had filed a draft red herring prospectus (DRHP) with Sebi last year in October to raise `8,430 crore, but had laterscrapped the plan. TheIPO-boundcompanyissaid to be targeting a public issue in 2023 even as unfavourable marketconditionsthreatenthe startup industry. OYO recognises revenue collected from its contracts with customers (or hotel partners) after deducting operating expenses.It currentlycategorises hotel partners into two categories — hotels and homes.Across both categories, the hotel aggregator had around 168,711 storefronts as of September 30. THE BIDEN ADMINISTRATION has banned approvals of new telecommunications equipment from China’s Huawei Technologies and ZTE because theypose“anunacceptablerisk” to US national security.The US FederalCommunicationsCommission said on Friday it had adopted the final rules,which also bar the sale or import of equipment made by Chinese surveillance equipment maker Dahua Technology Co, video surveillance firm Hangzhou Hikvision Digital Technology ■ The FCC had said in SECURITY SCARE June 2021 it was considering banning all equipment authorisations for companies on a 'covered list' ■ US FCC said had adopted final rules; companies include Dahua Technology, Hangzhou Hikvision Digital Technology and Hytera Communications ■ This followed a March ■ Washington’s latest crackdown 2021 designation of five Chinese companies on 'covered list' as posing a threat on the Chinese tech giants comes amid fears that Beijing could use them to spy on Americans and telecom firm Hytera CommunicationsCorp. The move represents Washington’slatestcrackdownonthe Chinese tech giants amid fears that Beijing could use them to spy on Americans.“These new rules are an important part of our ongoing actions to protect the American people from nationalsecuritythreatsinvolving telecommunications,” FCC chairwoman Jessica Rosenworcel said in a statement. Huawei declined to com- ment. ZTE, Dahua, Hytera and the Chinese embassy in Washington did not immediately respond to requests for comment.Hikvision said in a statement that its products don’t threatenUSsecurity.“Thisdecision by the FCC will do nothing to protect US national security, butwilldoagreatdealtomakeit moreharmfulandmoreexpensive for US small businesses, local authorities, school districts,andindividualconsumers to protect themselves, their homes, businesses and property,” Hikvision said. level playing field in trying to support not just local requirements, but global demand as well,” he said. Dhruva Space’s two amateur radio communication nanosatellites were part of Isro’s PSLV C54 launch on Saturday. Continued on Page 2 Digital offerings attract Gen Z to stock markets OVER THE PAST few years, participation of millennials (26-41 years) and Gen Z (18-25 years) has gone up rapidly in the stock market. A major factor is digital offerings and tech advancements adopted by the industry, enabling a user-friendly experience, as per ICICI Securities. Customer data on icicidirect.com reveals equity remains the major investment product across cities for both millennials and Gen Z, followed by mutual funds. Compiled by Siddhant Mishra ■ Equity major investment tool in all cities, for both Gen Z & millennials since 2020, followed by MFs. Continued on Page 2 US bans Huawei, ZTE sales over security risk REUTERS November 26 itage of the systems. It helps that India is known for its thriving IT industry and its space programme.Thecurrent government has been very forthcoming in bringing about aninterestingrevolutionwhere private players experience a ■ Investors aged 41 and above form major chunk of overall investors in tier I and tier II cities (58% and 43%, respectively), while millennials (46%) form the major chunk in tier III cities. Source: ICICI Securities TREND ACROSS PRODUCTS TIER I Golf in the oasis Isro’s PSLV-C54 launch in Sriharikota on Saturday Contribution of Gen Z up from 1% in FY20 to 6% in FY23 » Contribution of millennials constant at 34% TIER II ■ OPINION, P8 The launch of 3 satellites from Indian companies @PixxelSpace and @DhruvaSpace heralds the beginning of a new era, where Indian talent in space Report on Page 2 technology can be fully realized Contribution of Gen Z up from 2.5% in FY20 to 14% in FY23 » Contribution of millennials constant at 44% TIER III An argument that the choice between conflict and harmony lies with us, and much of this initiative has to come from the common people Prime Minister Narendra Modi A driving factor for Pawan Kumar Chandana and Naga Bharath Daka, co-founders of Skyroot Aerospace, the Hyderabad-headquarteredspacetech platform that recently created history by launching India’s firstprivatelydevelopedrocket, was strong market demand emerging from launching tens of thousands of commercial smallsatellites.“Overtheyears, we have seen satellites are getting smaller, with satellite operators increasingly requiring greatercontrol overlaunch schedules at affordable costs that small launch vehicles can deliver,”theysaid. Contribution of Gen Z gone up from 4% in FY20 to 26% in FY23 » Contribution of millennials down from 55% in FY20 to 46% in FY23 TREND WITHIN EQUITY SEGMENT TIER I War or peace? A LOOK AT INDIA'S PVT PLAYERS IN SPACE TECH: P5 at predominantly international markets in areas of satellite broadband internet, IoT, telecom, hyperspectral & radar imagery Contribution of Gen Z up from 2% in FY20 to 8% in FY23 » Contribution of millennials constant at 36% TIER II ■ WORDS WORTH, P4 SPACE JAM SPACE RUSH KUNAL DOLEY New Delhi, November 26 over 100 in 2022, there has been a 100-fold increase in the number of private players in the country’s space tech sector in just a decade. Increasing demand, concerted government push, investor interest, along with a heritage of technological know-how, are leading to a rising interest in the industry,which till a few years ago was purely a governmentrun show. “For a long time, India’s space industry was government-run; now,we observe the Government of India empowering privatisation of the sector,”saidSanjayNekkanti,CEO, INSIDE Contribution of Gen Z up from 3% in FY20 to 18% in FY23 » Contribution of millennials down from 47% in FY20 to 43% in FY23 TIER III WHAT'S INSIDE Contribution of Gen Z up from 5% in FY20 to 32% in FY23 » Contribution of millennials down from 56% in FY20 to 43% in FY23 Continued on Page 2 New models speed up interest in sedans, but SUVs still lead the race VIKRAM CHAUDHARY New Delhi, November 26 THIS YEAR, TWO all-new mid- size sedans hit the market (Skoda Slavia and Volkswagen Virtus), and Honda launched the City e:HEV (a hybrid sedan). Consumer interest in these three models has helped provide a boost to mid-size sedan sales. Data from the Society of Indian Automobile Manufacturers(SIAM)shows thatinthe April-October 2022 period, 65,840 mid-size sedans were sold,at 38.8% growth overthe 47,429 units sold in the same period in 2021. Automotive analysts said new launches excite the market and attract buyersto show- rooms. “From FY17 till the launch of the Slavia in February 2022, there was only one sedanlaunch(fifth-generation Honda City) and one facelift (HyundaiVerna),both in 2020. But there were as many as 10 SUV launches and facelifts duringthisperiod,whichledto the sales share of SUVs goingabove40%inthe market,” an analyst told FE. “With carmakers launching allnew sedans, there is renewed interest in this body shape.” The sales share of mid-size sedans to total passengervehicle sales has been dropping — from 6.9% in FY17, to 6.4% (FY18), 5.6% (FY19), 3.9 (FY20),2.8% (FY21) and 2.8% MID-SIZE SEDAN SALES (As % of passenger vehicle sales) 6.9 6.4 5.6 3.9 2.8 2.8 FY17 FY18 FY19 FY20 FY21 FY22 Source: SIAM, carmakers (FY22). During April-October FY23,however,the sales share marginally increased to 3%. Piyush Arora, managing director of Skoda Auto Volkswagen India, told FE that the full impact of the customer interest in the Slavia and the Virtus will be seen only by the endofthisyear.“TheVirtuswas launched only in June, and we are seeing customer interest 3 FY23 (YTD) picking up in the sedan,” he said.“Peoplearewarmingupto this model.” PetrSolc,directorof sales & marketingatSkodaAutoIndia, added that a section of cus- tomers is shifting from the SUV to the sedan body type, thanks to sedans such as the Slavia.“FromtheOctaviatothe Laura to the second-generation Octavia and the Superb and the Rapid, we have succeeded with each sedan. The Slavia is a natural extension,” he said. But some analysts believe that despite two new mid-size sedans in the market, it’s tough for sedans to make a major comeback.“Sales of mid-size sedans are expected to marginally rise with these new models, but it will be too much to expect for mid-size sedans to get even half as popular as SUVs,”Gau- rav Vangaal, associate director,Light Vehicle Forecasting, S&P Global Mobility, said.“In the near future, there are no all-new sedans planned by any carmaker.” Saket Mehra, partner & auto sector leader at Grant Thornton Bharat, added that mid-size sedans are not only competing against mid-size SUVs (such as the Hyundai Creta and the Kia Seltos, and now the Maruti Suzuki Grand Vitara and the Toyota Urban Cruiser Hyryder), but also against smaller, cost-efficient SUVs, which provide similar driving comfort, take up less space on the road and have lowercost of ownership aswell as maintenance.“While brand loyalty (among existing sedan consumers) and new sedan launchesliketheSlaviaandthe Virtus may persuade a percentage of buyers to opt for sedans, overall consumer sentiment is more inclined towards feature-rich, high ground clearance SUVs. This preferential shift has largely been observed in the last three years and is likely to remain in the near future.” There are five mid-size sedans (4,000 mm to 4,500 mm in length) in the market: the Honda City, the Hyundai Verna,the Maruti Suzuki Ciaz, the Skoda Slavia and the Volkswagen Virtus. Four were recently discontinued: Nissan Sunny, the Toyota Yaris, the Volkswagen Vento and the Skoda Rapid. Pune
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