MUMBAI, FRIDAY, JANUARY 26, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE VOL LXIV NO. 23, 22 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 WWW.FINANCIALEXPRESS.COM READ TO LEAD SENSEX: 70,700.67 ▼ 359.64 NIFTY: 21,352.60 ▼ 101.35 NIKKEI 225: 36,236.47 ▲ 9.99 HANG SENG: 16,211.96 ▲ 312.09 `/$: 83.12 ▲ 0.02 `/€: 90.57 ▲ 0.08 BRENT: $81.02 ▲ $0.98 GOLD: `62,151 ▼ `168 RED SEA CRISIS DOUBLES SHIPPING RATES, TIME Two-wheeler exports in troubled waters SWARAJ BAGGONKAR Mumbai, January 25 FREIGHT RATES AND shipment time to LatinAmerica andAfrica — key markets for Indian twowheeler makers such as Bajaj Auto and TVS Motor Company — have doubled due to the shipping crisis in the Red Sea. Bajaj Auto, India’s biggest twoand three-wheeler exporter, has been feeling the heat for the last couple of months. Executive director Rakesh Sharma said,“The Red Sea imbroglio has caused some delays of about threeweeks to Latin America and parts of Africa,and we have seen freight rates double to many destinations.” According to KN Radhakrishnan, director and CEO, TVS Motor Company, the impact of the Red Sea crisis is just beginning to be felt.“There is some initial feedback on lack of container availability and some pricing increases. We have to watch these developments very closely.However,it is too early SEEING RED 38% ofsales for BajajAuto and 24% forTVS ■ Luxury car makers like Audi, Mercedes, too, see crisis affecting deliveries in coming months ■ Disruptions could lead to imbalance in container availability Motor Company from exports inApril-Dec ■ 50% of India’s exports worth about `18 trn and about 30% of imports worth about `17 trn last fiscal via Red Sea route and there will be some delays in containeravailabilitybefore things settle down.” Therehasbeenaseriesofattacks on merchant ships in the Red Sea by Yemeni Houthi rebels — a fallout of the Israel-Hamas conflict. On Wednesday, the United Nations GeneralAssemblywarned the crisis could trigger anotherWorld War. The delays in and rising costs do not augur well for two-wheeler firms as exports account for up to 38%(1.22 million units) of sales for Bajaj Auto and 24% (753,000) for TVSMotorCompany(betweenApril and December), according to data from Society of Indian Automobile Manufacturers. Besides, Africa is the single biggest market for the Pune-based Bajaj Auto outside of India. Continued on Page 10 Hundreds likely to lose jobs at Flipkart, Swiggy Social sector Global brands are schemes nearing always interested saturation: FM in Zee: Goenka LAYOFFS CONTINUEAT tech-enabled companies in the country,with FlipkartandSwiggyplanning tocuthundredsofpositions,reports Ayanti Bera. E-commerce major Flipkart is likely to sack 1,000 employees — nearly5% of itsworkforce — by the end of March. Fooddelivery startup Swiggy is likely to fire 400 employees or nearly 7% of its workforce. ■ Page 4 AHEAD OF THE interim Budget on February 1, financeministerNirmala Sitharaman on Thursday saidtheNarendraModigovernment will “do everything” for the economic uplift of the poor, farmers, womenandyouth.Thegovernment is close to reaching saturation in implementingsocialsectorschemes designedtoprovidebasicnecessities to the poor,she said. ■ Page 2 ZEE ENTERTAINMENT MD & CEO Punit Goenka on Thursday told employees global brands are always interested in the media firm, reports Viveat Susan Pinto. Goenka’s remarks come days after Sony pulled the plug on a merger deal between the two.OnThursday, meanwhile,Zeecalledoffa$1.5-billion sub-licensing deal for ICC TV rights with Disney Star. ■ Page 4 Lenders file insolvency plea against Byju’s ANEES HUSSAIN Bengaluru, January 25 TROUBLE SEEMS TO be mounting for Byju’s, with two more insolvency petitions filed against the edtech startup. Foreign lenders, who have collectively extended more than 85% of the $1.2 billion term loan B to the company, filed an insolvency petition against the firm in the National Company Law tribunal earlier this week. On Thursday, France-based Teleperfomance Business Services also filed a similar plea in the tribunal for recovery of its dues. While the foreign lenders’petition is yet to be taken on record by the registry of the Bengaluru bench of the NCLT, Teleperformance’s plea has been registered. The former will fall in the categoryoffinancialcreditors, while Teleperformance being a vendor will be categorised as an operational creditor. The BCCI had earlier filed an insolvency petition against the edtech firm,which is being heard in the NCLT. When asked about the Byju Raveendran, foreign lenders moving founder-CEO, Byju’s NCLT against the firm, a Byju’s spokesperson said the move is premature and baseless.“As we have stated before, the validity of lenders’ actions, includingaccelerationofthetermloan,ispending and under challenge in several proceedings, including before the New York Supreme Court. HenceanyproceedingsbylendersbeforeNCLTare premature and baseless,”the spokesperson said. The company also questioned the the timing of the lenders’ petition, saying that it coincides with the commencement of a rights issue by Byju’s parent company. Continued on Page 10 EXPLAINER Cashless treatment in every hospital for policyholders ■ PAGE 9