BACK PAGE | PAGE 18 INTERNATIONAL | PAGE 5 Ferns N Petals must offer bigger bouquet for growth BRANDWAGON | PAGE 9 Apple wants to continue diversity programmes KOLKATA, MONDAY, JANUARY 13, 2025 Troubled waters: Is brand Goa losing its appeal? FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM VOL 34 NO. 62, 18 PAGES, `12.00 (NORTH EAST STATES `12.00 & ANDAMAN `20.00) 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 IN THE NEWS AIFs seek special dispensation for deep-tech startups THE ALTERNATIVE INVESTMENT funds (AIFs) financing startups under the Fund of Funds Scheme (FFS) have requested a special window or a carve-out to support deep-tech startups, reports Mukesh Jagota. There is also a call to increase the FFS corpus and extend its duration. ■ PAGE 2 Govt plans pan-India digital survey of crops from FY26 TO ESTIMATE A robust crop sown area and output of various agricultural commodities in advance, the government is aiming to cover all the states under digital crop survey by next year, reports Sandip Das. The `2,817-crore digital agriculture mission will aid the survey. ■ PAGE 2 Unsecured loan slippages could dent banks' Q3 earnings BANKS ARE EXPECTED to see moderate compression in the third quarter due to an increase in slippages from unsecured loans such as credit cards and microfinance, reports Sachin Kumar. Unlike previous quarters, credit growth is projected to align with the industry average of 12%. ■ PAGE 6 Robust rural growth likely to continue for FMCG firms in Q3 SALES VOLUME GROWTH will continue to show improvement in rural areas versus urban areas for fast-moving consumer goods (FMCG) companies in the third quarter of FY25, firms have said as inflation continues to put pressure on urban wallets, reports Viveat Susan Pinto. ■ PAGE 4 Finmin to review progress of Jan Dhan, other schemes FINANCIAL SERVICES SECRETARY M Nagaraju will meet with the heads of public sector banks (PSBs) on Wednesday to review the progress of various financial inclusion schemes, reports fe Bureau. During the meeting, schemes such as Jan Dhan Yojana will be reviewed. ■ PAGE 3 FE S P E C I A L S ■ BRANDWAGON, P9 TUESDAYMEETLIKELYTO FINALISE GUIDELINES,PAVETHEWAYFORTESLAENTRY Govt invites Musk, other EV players for policy discussion NITIN KUMAR New Delhi, January 12 AHEAD OFUSPresident-electDonaldTrump’s swearing-in on January 20,the ministryof heavyindustries has extended an invitation to Tesla CEO Elon Musk, along with other majorglobal and domestic EVplayers,forahigh-levelstakeholderconsultation on Tuesday. The meeting is to finalise the guidelines for the Scheme to PromoteManufacturingofElectricPassenger Cars in India (SPMEPCI), or the EV policy. This is the second roundofconsultationsontheguidelines, delayed by around eight monthsduetothegeneralelections. Unveiled in March 2024, the EV policy is designed to attract global automakers and bolster domestic MANUFACTURING PUSH ■ Elon Musk abruptly cancelled his planned visit to India in 2024, citing 'heavy Tesla obligations' ■ Value addition norm similar to PLI; charging infra & R&D may be eligible investments ■ India's EV policy, unveiled in March 2024, is designed to attract global automakers and bolster domestic manufacturing capabilities ■ Earlier, Tesla expressed reservations about meeting domestic value addition targets within time frame manufacturing capabilities. The scheme provides for incentives for EV manufacturers to establish productionfacilitiesinIndiawhilemandating significant investments in local manufacturing and supply chains. Under the proposed guidelines,domesticvalue addition (DVA) will be assessed in line with the production-linkedincentiveschemefor automobiles and auto components (PLI-Auto).As part of it,expenditure onresearchanddevelopment,aswell as the creation of EVcharging infrastructure, will qualify as eligible investments underthe scheme. Continued on Page 5 ● SAMIR SEKSARIA, CHIEF FINANCIAL OFFICER, TCS ‘We see earlysigns of revival, but challenges remain’ Despite missing Street estimates on revenue and net profit, the analyst commentary on TCS’s performance has been positive on the back of early signs of revival of discretionary spending and the firm’s robust order book. Samir Seksaria, chief financial officer of TCS, in an interview with Urvi Malvania & Ayanti Bera, talked about operational efficiencies, emerging market growth, and client trends favouring projects with quicker returns. He also said that any proposed changes in H-1B visa norms like raising minimum salaries and levying an annual visa maintenance charge will have minimal impact on TCS. Excerpts: Are IT companies out of the woods, given signs of discretionary spending revival and policy clarity in the US? It’s premature to say the IT sector, or even TCS, is entirely out of the woods. While we’ve observed early signs of revival, unforeseen geopolitical or macroeconomic factors could disrupt discretionary spending. These factors remain critical and & ❝ IT’S STILL EARLY TO QUANTIFY RETURNS ON AI INITIATIVES. THESE ARE CURRENTLY SMALL-SCALE AND FOCUSED ON SPECIFIC USE CASES need constant monitoring. What kinds of operational efficiencies helped TCS improve margins in Q3? Margins were driven by three key levers: productivity, utilisation, and workforce composition (pyramid structure). Utilisation involved optimising the existing resource pool by making trainees billable and enhancing bench efficiency. With over 11,000 employees added in Q1 and Q2, TCS optimised this capacity in Q3. Productivity was enhanced by streamlining processes and leveraging tools like AI/GenAI to perform tasks more efficiently with fewer resources. The pyramid structure, which balances the workforce mix across trainees, juniors, and seniors, helped optimise cost per employee, directly supporting margins. Continued on Page 15 AirIndia set to expand itswings 3years after Tata came on board SWARAJ BAGGONKAR Mumbai, January 12 NEARLYTHREE YEARS after it took over Air India, the Tata Group has firmedupplansforitsexpansionand consolidation that involve precisely segregatingthefocusofitstwocarriers, building multiple hubs within the country and challenging foreign carriers on international routes. With a combined group fleet of almost300aircraft,full-servicecarrier Air India will serve the international market and the domestic routeswith demand for premium traffic, while low-cost carrierAir India Express will focuson theremainingdomesticand short-haulinternationalroutes. The company is realigning the FIGHT FOR SUPREMACY ■ Air India’s strategy is to focus on hubs in Delhi, Mumbai and Bengaluru ■ Air India wants to bring passengers from South East Asia and Saarc countries and aggregate them at its hubs before taking them to Europe, US and Canada Jaishankar to attendTrump swearing-in EXTERNAL AFFAIRS MINISTER S Jaishankar will represent India at the January 20 inauguration of US President-elect Donald Trump. Announcing the visit, the ministry of external affairs on Sunday said,“The external affairs minister will also have meetings with representatives of the incoming administration,asalsosomeotherdignitaries visiting the US on that occasion.” Jaishankar visited the US in the lastweekofDecemberandmetMike Waltz,NSA-designate in the incomingTrump administration. ■ PAGE 15 READ TO LEAD Insurance reforms to see 100% FDI & composite licence RUN-UP TO THE BUDGET 2025-26 PRASANTA SAHU New Delhi, January 12 WIDER COVERAGE ■ Insurance penetration in India was just 4.2% in 2021 compared to global average of 7% ■ Share of life insurance in the sector in India is 76% THE MUCH-AWAITED INSURANCE (Amendment) Bill to allow 100% foreign direct investment (FDI) in the sector may see the light of the day in the Budget session of Parliament.The proposed major amendment follows the tweaking of the InsuranceActin2021,whentheFDI limit was raised from 49% to 74%. The current Bill was to be introduced in theWintersession butwas deferred.According to sources, the latest amendment will not only let foreign insurers and other funds with financial muscle operate independentlyin India,but also include a clutch of otherreforms like allowing insurers to offer life and nonlife policiesvia a single entityunder a composite licence. Anotherchange is the facilityfor insurance agents to sell products from multiple companies. Finance minister Nirmala Sitharaman is likely to make an announcement about the Bill in her Budget speech. The department of financial services released a brief consultation paper on the Bill in December 2024. The department said the proposed Continued on Page 5 VCs bet big on NBFCs D2C firms face an uphill task VENTURE CAPITAL (VC) INVESTMENTS in non-banking financial companies (NBFCs) surged in 2024, marking a notable pivot towards safer, proven business models with clear exit opportunities, reports AyantiBera.Amidatepidgrowthin overall VC funding, NBFCs raised approximately $1.2 billion across 50 equity rounds, up 70% from $717 million in 2023. ■ PAGE 4 THEDIRECT-TO-CONSUMER(D2C) segment, once seen as the future of retail, seems to be losing its sheen. With HULreportedlyin buyout talks withMinimalist,aJaipur-basedskincare brand,for`3,000 crore,the sector’s challenges in scaling up are under scrutiny, reports S Shanthi. Amidplateauingsalesanddwindling funding,D2C startups face an uphill task to sustain growth. ■ PAGE 4 ■ Globally, the share of life insurance in total premiums is 43.7% ■ FDI limit in insurance was last raised in 2021, from 49% 74% to amendmentsaimedtoensureaccessibilityandaffordabilityofinsurance for citizens, foster expansion and developmentoftheinsuranceindustry, and streamline business processes.Thesectorrequirescapital inflows to grow and raise the insurancepenetrationlevelinthecountry. ● MAHAKUMBH BEGINSTODAY ■ Around 26 million passengers flew on long-haul routes in FY24 and generated $16 billion in revenue ■ Share of Indian carriers in longhaul segment stood at just 21% network and segregating the market for the two carriers which has already resulted in a reduction in overlaps. In percentage terms, the overlaponallrouteshascomedown from20%to12%.Intheshort-haul segment, the overlap has come down from 26% to 5%. Continued on Page 5 Sadhus arrive in a procession for the Maha Kumbh in Prayagraj, Uttar Pradesh, on Sunday. The 45-day festival, billed as the largest gathering of humans in one place, begins on Monday PTI Donning the war paint Minimalist is moving from innovation to scale Of the 29 startups launched in this space, 9 have shut shop Blinkit’s10-minuteambulancegamble:Canitbeattheodds? S SHANTHI Bengaluru, January 12 ■ eFE, P10 Unreal is the new real For the first time, a car ad film has been shot without a car ■ EXPLAINER, P6 Modern Maha Kumbh’s mammoth impact It has evolved in the digital era while holding on to its traditional roots HIGH STAKES, HIGH REWARDS BLINKIT’S FORAY INTO 10-minute ambulance services has drawn both applause and scepticism.Known for revolutionising quick commerce with ultra-fast grocery delivery, the Zomato-owned platform now aims to address one of the most critical healthcare gaps. But past such ventures show this is a high-stakes venture fraughtwith challenges. The ambulance tech sector has seen its share of ambitious players, but mostofthemhavefailedtoscale. Of the 29 startups launched, nine have shut shop, with the segment raisingapaltry$4.07millionintotal equity funding over the past five ■ Ambulance tech sector raised a paltry $4.07 mn in total equity funding over the past five years ■ hinge on operational precision, reliable paramedics, strong medical partnerships, and robust back-end system If Blinkit succeeds, it could pave the way for other q-comm players to enter the space ■ Sector is projected to grow from $889.6 mn in 2023 to $1,920.4 mn by 2030 years, according to Tracxn. “Fragmented infrastructure, unreliable services, and a maze of regulations make this one of the toughest segments to crack,” says Milan Sharma, founderand MD,35NorthVentures. ■ Blinkit’s success will Ventures such as HelpNow and DIAL4242 have struggled despite earlypromise.HelpNow,launched in 2017, raised a seed round from Y Combinator but is yet to secure follow-on funding. Launched in 2016, DIAL4242secureditsfirstfunding of `1 crore onlyin Februarylastyear. Leveragingitshyperlocallogistics network,Blinkit promises to deploy ambulances equipped with life-saving equipment and staffed by para- medics, operating 24/7 with a 10minuteresponsegoal.Profitisn’tthe objective, the company claims, and the service will be offered at affordablerates.Expertsarguethatinemergency healthcare, speed alone isn’t enough.“Many companies focus on quick ETAs, but survival rates and treatment initiation times matter more. Preparedness, not just speed, determines outcomes,” says Dilip KumarfromRainmatter,thefunding arm of Zerodha. Blinkit’s success will hinge on operational precision,reliable paramedics,strongmedicalpartnerships, and a robust back-end system — the areaswhereotherstartupshavestruggled.The stakes are undeniably high, buttherewardscouldbetransforma- tive. According to Grand View Research,India’s ambulance services market is projected to grow from $889.6 million in 2023 to $1,920.4 million by2030 at a CAGRof 11.6%. If Blinkit succeeds,it could pave the wayforotherq-commplayerstoenter thespace.However,theeconomicsof emergencyhealthcarearestarklydifferent from quick commerce.Unlike groceries,ambulanceservicesarelowfrequency, high-stakes operations with thin margins.“Only companies with deep financial reserves and a long-term vision to build healthcare logisticswillsustainthismodel,”adds Sharma. Analysts agree that for Blinkit,thisventurecouldeitherredefine quick commerce, or become a cautionarytaleofoverreach. Kolkata