COMPANIES | PAGE 6 BACK PAGE | PAGE 20 Govt plans $1-bn sops for solar manufacturing INTERNATIONAL | PAGE 10 FMCG firms deploy stock vans in rural markets NEW DELHI, WEDNESDAY, FEBRUARY 26, 2025 Musk presses forward with threat to federal workers FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. L NO. 308, 26 PAGES, `12 (PATNA & RAIPUR `12, SRINAGAR `15) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 74,602.12 ▲ 147.71 NIFTY: 22,547.55 ▼ 5.80 NIKKEI 225: 38,237.79 ▼ 539.15 HANG SENG: 24,301.09 ▼ 307.59 `/$: 87.20 ▼ 0.50 `/€: 91.35 ▼ 0.55 BRENT: $74.38 ▼ $0.40 GOLD: `86,275 ▲ `189 Airtel partners Ericsson for move to standalone 5G BHARTI AIRTEL ON Tuesday said Ericsson will provide 5G core solutions to the company to support its transition to 5G standalone network, reports fe Bureau. ■ PAGE 4 Early IIP release may further undermine data quality: Experts THE EARLY RELEASE of monthly IIP print data was much-needed, said experts, but warned that this may in turn affect data quality unless remedial measures are taken, reports Priyansh Verma. ■ PAGE 2 FE S P E C I A L S NON-BANKINGFINANCIALcompanies(NBFCs)andmicrofinanceinstitutions (MFIs) got a significant relief onTuesday,withtheReserveBankof India (RBI) reducing the riskweights onbankloanstothemfrom125%to 100%.However,thecentralbankhas retained the risk weights for unsecured loans.The new rules will come into effect fromApril 1. The risk weights were increased in November 2023 due to a sharp rise in unsecured loans and increased dependency of NBFCs on bank borrowings.RBI’s move made it more expensive for banks to lend to NBFCs and MFIs, as they were required to set aside more capital for such loans. Consequently,thecredittoNBFCs and microfinance institutions slowedsignificantly.Banklendingto NBFCsgrewatitsslowestpaceinfour years, rising just 6.7% in 2024 to `16.22 lakh crore as of December, down from 15% growth in 2023, according to RBI data. The rollback of tighter norms comes after Sanjay Malhotra took chargeastheRBIgovernorinDecember. RBI, under his stewardship, has already deferred proposals to increase the capital that banks set aside for new project loans and liquidity they hold for digital deposits. weights on bank loans to NBFCs, MFIs lowered from 125% to 100% ■ Risk weights for unsecured loans retained by RBI ■ New rules to come into effect from April 1 ■ Bank lending to NBFCs grew at its slowest pace in four years, rising just 6.7% in 2024 In addition, the apex bank has also proposed to remove foreclosure charges for individuals and micro, small and medium enterprises in a recent consultation paper. According to the RBI, microfinance loans considered as part of consumercreditwillnotbesubjectto these higher risk weights and will attract 100% riskweight instead. Continued on Page 10 FIRSTOFFICIALVISITSTARTSTOMORROW EU seeks dutysops on wine,whiskyand cars RAVI DUTTA MISHRA New Delhi, February 25 ‘Digital auctions should be sustainable’ COO & director, Red FM and Magic FM, talks about the rollout of digital radio ■ BRANDWAGON, P9 Cracking the code on trade across borders The Central Board of Indirect Taxes and Customs has notified Customs Manual 2025 ■ EXPLAINER, P9 THE EUROPEAN UNION is seeking lower tariffs on items of interest to Brussels,includingwhisky,wine and cars,among others.Thiswill be a key discussion item for the 27-member grouping in securing a free trade agreement (FTA)with India. According to officials in the EU, trade and technology will be among the key issues during this first-ever visit to India of the EU’s college of commissioners led by European Commission president Ursula von derLeyenbeginningFebruary27-28. “Thereareanumberofissuesthat are outstanding [for an FTA],includingtariffs.India'smarketisrelatively closed,especially on key products of commercialinteresttotheEuropean Union and to our member states’ industries.Theseincludecars,aswell aswinesandspirits,” theofficialsaid. TheEUofficialsaidtheEuropean Union is seeking to drive a hard bargaintoensureIndiaandtheEUhave acommerciallymeaningfulFTAthat covers tariffs, non-tariff barriers, and procurement commitments. “And these are just three examples ■ Analysts, investors ■ Unilever gave no had applauded Unilever's decision to pick Schumacher, an external candidate, as CEO specific reason for the change in top role HEIN SCHUMACHER OUTGOING CEO, UNILEVER YADARISA SHABONG London, February 25 UNILEVER STUNNED INVESTORS on Tuesday by moving to replace chief executive Hein Schumacher with finance chief Fernando Fernandez,who will take on the tough task of reviving the consumer group’s performance. Fernandez, 58, has been with Unilever since 1988. Before he became the CFO last year, he held a number of roles such as president, Latin America, and CEO, Brazil. Srinivas Phatak, currently Unilever’s deputy CFO and group controller,will become acting CFO, while the company looks for a permanent replacement. Schumacher’s sudden departure afterlessthantwoyearsinthejobhit Unilever’s shares,which fell as much Iregretleaving Unilever earlierthan anticipated. Istandbymy recordand approach ■ Schumacher's ■ Fernandez (right), sudden departure comes after less than 2 years in the job who has been with Unilever since 1988, was named new CEO ■ He had taken over ■ He became CFO last from Alan Jope in July 2023 year, held a number of posts earlier as 3.4% on Tuesday on the London Stock Exchange. They had gained more than 9% since Schumacher took the helm. Its Indian subsidiary HindustanUnilever’sstockwas,however,up 0.56% in a fallingmarket. Unilever,which gave no specific reasonforthechange,isfacingpressure from investors to revitalise its fortunes and the top management upheaval comes just weeks after Unilever announced underwhelming full-year earnings. Schumacher, who joined in July 2023, will step down as CEO in March and leave the company on May 31. He is leaving by mutual agreement, the company said. “I regret leaving Unilever earlier than anticipated,”Schumachersaid in emailtoUnileverstaff.“I standby my record and approach.” Unilever Chairman Ian Meakins saidtheboardwasimpressedbyFernandez’s “decisive and results-oriented approach”,and had given him Rupee recordsworst dayin 3weeks on US tariff fears ● Weakest among Asian peers this year DOWNWARD SPIRAL Asian currencies As performance pe (inverted scale) d Dollar vs rupee rupee pee pe YTD2025 % change YTD Feb 24 (close) ANUPREKSHA JAIN Mumbai, February 25 86.706 THE RUPEE LOGGED itsworstdrop in threeweeks onTuesday,plunging 50 paise to close at 87.203 against thedollar,afterUSPresidentDonald Trump said that the planned tariffs on Canada and Mexico would go ahead as decided.The comment led toariseinthedollarindex,causinga decline in regional currencies. After Tuesday’s fall, the rupee has become the worst performer among Asian peers, with its year-to-date (YTD) fall at 1.83%. The dollar index, which gauges the greenback against the six major currencies, recovered to 106.79 after falling to a more than two-month low of 106.35 on Monday. The month-end dollar demand and expiry of non-deliverable for- 0.57% Rupee depreciation against $ (in %) Feb 25 (close) 87.203 YTD 36MTD 2025 months months -0.7 -1.8 -3.5 1-year -3.9 -5.2 ward (NDF) contracts also weighed on the rupee. In intra-day trading, the rupee fell to as lowas 87.252/$. “Apart from the month end,RBI probablywasalsorequiredtosquare up its short position because of which the rupee fell from 87 to 87.25 levels within minutes,” said Anil Kumar Bhansali, head of treasuryandexecutivedirector,Fin- the task of executing the growth strategy.“WhiletheBoardispleased with Unilever’s performance in 2024,there is much furtherto go to deliver best-in-class results,” Meakins said in a statement. Schumacher's appointment and strategic changes had been welcomedbybillionaireactivistinvestor Nelson Peltz,who built a stake in the companyin 2022. Continued on Page 7 UltraTech enters cables biz with `1,800-cr capex Taiwanese dollar -0.05 AFTER A RECORD kharif purchase of oilseeds under the price support scheme, Nafed and NCCF will start purchase of rabi oilseeds and pulses from farmers under MSP from next month, reports Sandip Das. ■ PAGE 2 OFFERING RELIEF ■ Risk TURNAROUND EFFORTS Fernandez to be new boss,Phatak to be interim CFO Hong Kong dollar -0.08 MSP purchases of rabi pulses, oilseeds from next month ANUPREKSHA JAIN & SACHIN KUMAR Mumbai, February 25 ● Finance chief Indonesian rupiah -1.49 THE PREVIOUS AAM Aadmi Party (AAP) government’s excise policy in Delhi led to a loss of `2,002 crore to the city government, the Comptroller and Auditor General of India (CAG) said in its report, reports fe Bureau. ■ PAGE 3 RBI breather for shadow banks, MFIs Unilever removes CEO in shock move Philippine peso -0.16 Discrepancies in excise policy cost Delhi `2,002 cr: CAG RISKWEIGHTS ON BANKLOANS RESTORED Indian rupee -1.83 IN THE NEWS Source: Bloomberg rex TreasuryAdvisors LLP. Forextraderssaidthatduetothe demand fordollars relatedwith the expiry of NDF contracts, the rupee has again crossed the 87/$ mark. However, with the likely intervention from RBI, the fall in the currencywas limited. Continued on Page 7 ULTRATECH CEMENT, AN Aditya BirlaGroupcompany,willexpandits footprint in the construction value chainthroughitsentryintothewires and cables segment, the company said on Tuesday, reports fe Bureau. The expansion will be accompanied by a capex of `1,800 crore over the next two years.The proposed entry into the new segment will be undertaken through UltraTech’s building products division. ■ PAGE 6 Sebi mulls steps to tighten rules for derivative market SEBI ON TUESDAY proposed measures to enhance risk monitoring and trading efficiency in the equity derivatives market, including the introduction of real-time monitoring of futures and options (F&O) open interest, reports PTI. The measures,if implemented,will help market participants make more informed decisions and manage risks more effectively. ■ PAGE 7 Tata Capital set to float `15,000-crIPO European Commission president Ursula von der Leyen will lead the delegation during the two-day visit of areas where we still expect India to come up with stronger commitments,”the official said. The EU’s demand forlowertariffs comes after India and the EU have concluded nine rounds of talks,with the 10th round of negotiations set to takeplacefromMarch10-14inBrussels.Once concluded,the EU dealwill bethelargestFTAforIndia,improving market access for labour-intensive sectors such as textiles,leather,and marine products to India’s secondlargestexportmarketaftertheUS. Continued on Page 10 SACHIN KUMAR Mumbai, February 25 THE BIG ONES SO FAR THE BOARD OF Tata Capital -- the financialservicesarmofTataGroup- on Tuesday approved plans for an initial public offering (IPO), which would comprise fresh issuance of 230 million equity shares and an offerforsalebyexistingshareholders. The company, in which Tata Sons holds a 92.83% stake, is expected to raise nearly `15,000 crore through the share sale, according to sources,making it the fifth-largest IPO after the listing of HyundaiMotor,LIC,PaytmandCoal India shares. The IPO is expected to happen before September 2025 - the deadline for meeting the upper-layer NBFC guidelines of the Reserve Company Listing date Hyundai Motor India Oct 22, 2024 LIC May 17, 2022 One 97 Comm (Paytm) Nov 18, 2021 Coal India Issue size (` cr) Nov 4, 2010 27,859 20,557 18,300 15,475 15,000 Tata Capital* Source: Primedatabase.com, Bloomberg Bank of India (RBI). In September 2022, RBI had classifiedTataCapitalFinancialServices as an upper-layersystemically important NBFC. In January this year, the banking sector regulator retained the company on the list. *proposed as per industry estimates; #proposed This classification mandates the adoption of enhanced regulatory frameworks and listing within three years. TataSonsisthesecondcompany from Tata Group in the upper-layer systemically important list. Tata Capital's IPO would mark the group's second listing in two decades afterTataTechnology’s initial public offering in November 2023. Continued on Page 7 Consumer durable retailers have an edge in high-value quick commerce RAGHAVAGGARWAL New Delhi, February 25 WITH QUICK COMMERCE gaining traction among consumers,companiesareracingtoofferfasterdelivery of their products. Electronics retail chain Croma onTuesdayintroduced same-day delivery for air conditioners and coolers across 30+ cities,further intensifying competition in the consumerdurables segment. The Tata-owned brand's latest move comes just ahead of the summer season.Croma announced that ordersplacedbefore6pm—whether through its offline stores,website,or theTataNeuapp—willbeeligiblefor same-day delivery. This initiative builds upon its existing ‘Croma Express’ service,which already pro- Cool deal: Croma rolls out same-dayAC delivery vides expedited delivery for select electronic products. Croma’s competitor Vijay Sales had previously launched a similar service,offering same-day shipping forACs and coolers on orders placed before 4 pm,along with installation bybrand techniciansin 24 hours. Thegrowingtrendofaccelerated deliveryisparticularlysignificantin high-valuecategorieslikeconsumer durables,whereretailerslikeCroma andVijaySales mayhold a competitive advantage overpure-playquick commerce firms. WhileplatformssuchasZomatoowned Blinkit have experimented with selling coolers and their CEO Albinder Dhindsa recently said that strong consumer interest in ACs, qcommerce firms face substantial FAST, FASTER, FASTEST... ■ Croma said orders placed before 6 pm —offline, online or through Tata Neu app — will be eligible for same-day delivery ■ For q-commerce players, cost of stocking and transporting these items could outweigh potential revenue gains ■ Vijay Sales has a similar service, offering same-day shipping of ACs and coolers on orders placed before 4 pm logistical challenges in handling bulky and high-cost products.“We had decided in January that air conditioners are not something that we'll be able to sell,” Dhindsa had said in an earlier interview. “And ■ Unlike groceries or small electronics, ACs and coolers require specialised warehousing, careful handling, and installation support in many cases come March,peoplewere searching forACs 15,000 times a day.” Despite increasing demand, delivering large appliances via qcommerce remains a complex and costlyproposition.Unlike groceries or small electronics, air conditioners and coolers require specialised warehousing,careful handling,and in manycases,installation support. Forq-commerce players,the cost of stocking and transporting these items could outweigh potential revenue gains. E-commerce giants like Amazon have managed to provide next-day and 48-hour delivery for ACs and otherelectronics,oftenbundlingpurchases with free installation.Appliance manufacturers like Whirlpool also offer 48-hour delivery for direct website orders.However,quick commerce firms,which primarilyrelyon hyperlocalwarehousesordarkstores, may find it difficult to achieve similarefficienciesat scale. Retail experts argue that companies like Croma and Vijay Sales are better positioned to capitalise on this trend, given their existing infrastructure and established relationships with appliance brands. “Croma andVijaySales can leverage New Delhi their supply chain capabilities and warehouse networks to gain a significant edge this summer,” said a retail analyst, adding:“While quick commercewill continue to expand, its feasibility in the consumer durables segment is limited.” As the retail landscape evolves, category expansion remains a challenge for q-commerce players.Managing inventory, handling returns, and maintaining high service standardsinbulky,high-valuecategories willrequiresignificantinvestmentin logistics and infrastructure. Meanwhile, offline and omnichannel retailers stand to benefitfromtheirabilitytomergedigital convenience with strong physical networks,giving them an advantage in the race forfasterdeliveries.