COMPANIES, P4 INTERNATIONAL, P7 BACK PAGE, P22 TELECOM, CONSULTING HIT CONSUMER PRICES UP 4.3% MILLIONTH VISA ISSUED North America to be pain point for IT firms like TechM, Wipro Euro zone inflation falls to lowest in 2 years as economy slows Indians now over 10% ofvisa applicants, states US Embassy CHENNAI/KOCHI, SATURDAY, SEPTEMBER 30, 2023 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XLIV 125, 24 PAGES, `12.00 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: 65,828.44 ▲ 320.12 NIFTY: 19,638.30 ▲ 114.75 NIKKEI 225: 31,857.62 ▼ 14.90 HANG SENG: 17,809.66 ▲ 436.63 `/$: 83.04 ▲ 0.15 `/€: 88.15 ▼ 0.47 BRENT: $95.60 ▲ $0.22 GOLD: `57,594 ▼ `162 It was a stable bike — new engine and tyres have strengthened its standing. ■ MOTOBAHN, P7 July 3, 2023 Sep 29, 2023 HZL to restructure into three separate entities HINDUSTAN ZINC (HZL) has initiated a restructuring exercise to create three separate legal entities and has authorised a committee of directors to evaluate the proposal,reports Rajesh Kurup. The restructuring move, however, is subject to a “detailed evaluation”. The companyis exploring options to demerge its three business verticals – zinc & lead, silver and recycling – to help it capitalise on“distinct market positions”and attract investors,HZLsaid in a regulatoryupdate. As of June 30, 2023, Vedanta (VEDL) holdsa64.92%inHZL.TheLondon-headquartered Vedanta Resources holds a 68.11% stake in subsidiaryVEDL,according to BSE data. Apart from metals and recycling, VEDL’s portfolio includes oil & gas, power and semiconductor display glass,among others. On Friday, HZL said the decision to review its corporate structure was based on the scale, nature and potential opportunities forvarious business verticals and to unlock value. ■ PAGE 4 JKC puts in `100 crore more for Jet’s revival Consortium completes WAITING GAME `350-crore total infusion; ■ TheJalan Kalrock takeoff still far away Consortiumwas ROHITVAID New Delhi, September 29 THE JALAN KALROCK Consortium (JKC) on Friday said that it has infused `100 crore in grounded carrier Jet Airways, taking its total investment in the airline to `350 crore. The consortium was due to infuse a total of `350 crore by September 30 to be eligible to take controloftheairline.JetAirwayshasnotflown since April 17,2019. “With this infusion, JKC has now fulfiled its total financial commitment as per the court-approved resolution plan,and all commitments by JKC now stand fulfiled to take control of the iconic airline,” the consortium said in a statement. Shares of Jet Airways closed up 5% at `55.91 on the BombayStock Exchange post the announcement However, analysts maintain that the payment of the amount does not mean that Jet Airways is all set to soon fly again. This is, at due to infuse a total of `350 cr by September 30 to be eligible to take control of the airline ■ The stance ofthe lenderswill only be known on Oct 4, when the matter comes up for hearing at NCLAT ■ The use ofbank guaranteewas resisted by the lenders on the ground that itwas a backup best, clearing one of the many hurdles. For instance,the stance of the lenderswill onlybe known on October 4,when the matter comes up for hearing at the National Company Law Appellate Tribunal (NCLAT). Continued on Page 17 Core sector growth at 14-month high THE PRODUCTION of India’s six core indus- indexofeightcoreindustries,whichconstitutes tries rose to a 14-month high of 12.1% in about40%oftheIndexofIndustrialProduction. August,mainlydue to a sharp increase in out- A12.1%riseincoreindustriesislikelytoaidIIP put of electricityand coal during the growth further in August.In July,the INSIDE month, reports Priyansh Verma. IIPwasatafivemonthhighof5.7%. The production of electricity soared Fiscal deficit Asharp rise in output of electric14.9% year-on-year in August, and at 36% of ity and coal could be attributed to that of coal rose by 17.9%. FY24 target deficient rainfall during the month, Electricity and coal collectively which could have spiked power ■ PAGE 2 carry a weight of 30% in the overall demand. ■ PAGE 2 Markets on a high in H1 FY24 The Sensex climbed 11.59% (6,800 points)while the Nifty jumped 13.13% in the first halfofFY24.This came on the back ofstrong earnings, FII inflows and an uptick in the economy. Realty (up 48.5%) and industrials (44.5%) led the rally.Tata Motors, NTPC, L&Twere the top gainers on Nifty 50. ■ PAGE 6 Returns (H1-FY2024, %) Nifty Sensex The Bullet goes well straight,but can it go sideways,safely? ■ S&P, meanwhile, has BY DEMERGING OUR BUSINESS UNITS, WE BELIEVE THATWILL UNLOCK VALUE AND POTENTIAL FOR FASTER GROWTH IN EACH VERTICAL 200 175 March, 2023was $12.7 bn ANILAGARWAL, CHAIRMAN, VEDANTA 225 Continued on Page 17 Top sectoral gainers (H1-FY2024 %) Realty 48.5 Industrials 44.5 Telecom 40.7 Capital Goods 38.9 Utilities 32.0 Net investments (2023, ` crore) Apr 11.6 FE S P E C I A L 222.55 Top gainers (H1-FY2024, %) Tata Motors 49.9 NTPC 40.2 L&T 39.6 Bajaj Finance 39.1 Coal India 38.1 Top losers (H1-FY2024, %) -14.1 UPL -5.2 HDFC Bank -3.5 HUL May FOREIGN EXCHANGE RESERVES fell $2.3 billion to a four-month low of $590.7 billion in the week ended September 22, reports Ajay Ramanathan. ■ PAGE 6 250 Jun FOREX RESERVES FALL $2.3 BILLION TO FOUR-MONTH LOW IN A SWEEPING shake-up, metals and energy major Vedanta on Friday announcedplanstospinoutitsbusinesses into six listed entities, as it fights to stave off a debt crunch. In a statement to the exchanges, the Anil Agarwal-promoted company said the board has approved the demerger of diversified businesses to unlock ‘significant value’. The pure-play, asset-owner business model will result in aluminium, oil and gas, power, steel and ferrous materials and base metals being demerged and listed separately, the regulatory filing said. Thedemergerof thebusinessis avertical one.For every share of Vedanta,shareholders will receive one share of each of the five newly listed companies,the company said. The overhaul of the business is seen as a move to reduce thegroup’s multi-billion dollar debt load.Agarwal had indicated in late August that a break-up of the company into several entities was being contemplated so as to allow investors to bet on“pure plays”. 275 ■ Its net debt at the end of downgradedVedanta to ■ Vedanta’s net ‘CCC’ on potential bond debt to ebitda at extensions & placed it on 3.3X in March, 2023 Creditwatch Negative 278.10 Jul THE MERGER BETWEEN Sony Pictures Networks India and Zee Entertainment is expected to be delayed, said Japan's Sony Group in a statement on Friday, reports Viveat Susan Pinto. ■ PAGE 4 300 Vedanta FPIs DIIs 15,733 2,217 -3,306 41,207 4,458 -2,698 55,161 33,994 14,295 25,076 Aug SONY SAYS ZEE MERGERTOTAKEA FEWMORE MONTHS RAJESH KURUP Mumbai, September 29 ■ Demerger expected to be completed in FY25 Share price on BSE (`) Sep THE GOVERNMENT ON Friday raised the interest rate on fiveyear recurring deposit scheme to 6.7% from 6.5% for the December quarter and retained the rates for all other small savings schemes. ■ PAGE 2 SWITCHINGTOA PURE-PLAYMODEL 39.3 INTEREST ON 5-YEAR RD RAISED TO 6.7% FOR DEC QUARTER One share each of new entity for one of parent firm for shareholders 34.4 THE GOVERNMENTHAS hiked the windfall tax on domestically produced crude to `12,100 per tonne from `10,000 per tonne earlier in the backdrop of incessant rise in price of crude oil, reports Arunima Bharadwaj. ■ PAGE 3 BSE Smallcap WINDFALLTAX ON CRUDE HIKED; ATF, DIESEL LEVY CUT Vedanta rejig to carve out six listed entities BSE Midcap NEWS MOVE TO UNLOCK VALUE FOR STAVING OFF DEBT CRUNCH 13.1 IN THE -21,076 20,313 After a six-decade long career, L&T chairman steps down today I have mapped out top L&T leadership till 2040: Naik After a nearly six-decade-long career, Anil Manibhai Naik will end his innings as the non-executive chairman of Larsen and Toubro (L&T) on Saturday.He will,however, continue to be associated with the conglomerate in various capacities for the next two years.Naik,who hands over the reins to SN Subrahmanyan (popularly known as SNS), speaks to Rajesh Kurup and Joydeep Ghosh about his successes and some regrets as well.Excerpts: L&T and you have been almost synonymous,so much that it’s been said that you just can’t take L&T out of AM Naik. Now that you are formally retiring, how would you remain associated with the company? I will remain closely connected emotionally and formally. My term as chairman of our IT companies continues for anothertwoyears. Afterthat,Iwill be founder-chairman. I will continue mentoring seniorL&T-ites to help build a robust leadership pipeline for the company. This is something I have been doing for many years now. In fact, most of the current directors,including the current CEO & MD have been mentored actively by me. I have already mapped out the top leadership that should see the company through till 2040. Further, I will be the chairman of the L&T Employee Trust the largest single shareholder of the company.IhavealreadysaidthatL&T is my temple, and you can never retire from a temple.L&T is my life. You wanted your successor “to be better than you.” SNS is obviously outstanding as a leader, but have you chosen someone better than you? ❝ “L&T IS MY TEMPLE, AND YOU CAN NEVER RETIRE FROM A TEMPLE. L&T IS MY LIFE” I will not get into individual comparisons because it is misleading. I could be better than him in some aspects and he could be better than me in some others. What really matters is at the end of the day is how the company performs, and I am 100% sure that L&Twill do well under him.SNS is doing an excellent job and I will give him full marks. Or maybe I will reduce one mark becausethatiswhatmyfatherusedtodo. He was a teacher in my school, and he taught me mathematics. Even if I got all the answers right,he would cut one mark. & What’s the status of the hospital – AM Naik Hospital – on the L&Tcampus?Will you remain associated with running of the hospital? I have built five hospitals - two in Navsari,oneinSurat,oneinKharelandone here in Powai, Mumbai. All of them are measuring up to the goal that we have set forthem – to bring advanced medical care to those who need it most. My son has decided to come back to India,andheandmydaughter-in-lawhave involved themselveswith the trusts’work. My son goes every weekend to Kharel to get a first-hand view. Continued on Page 2 CHENNAI/KOCHI