BIG IDEA | PAGE 18 COMPANIES | PAGE 4 INTERNATIONAL | PAGE 3 Honasa Consumer chose conversations first Instant food fuels q-commerce surge LAlocks down as anti-Trump protests spread AHMEDABAD, MONDAY, JUNE 16, 2025 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XX-13, 22 PAGES, `12 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 India Inc’s FY25 borrowings rise 6% to `37.4L cr INDIA’S TOP 10 corporate borrowers made up nearly half of India Inc’s `37.4 lakh crore net debt in FY25, which rose 6% overall. The remaining 3,400+ firms saw little to no rise in borrowings compared to last year, reports Kishor Kadam. ■ PAGE 5 Boeing projects 44,000 jets, warns of output lag BOEING PREDICTED airlines will need 43,600 new aircraft over the next 20 years, with markets like China & Southeast Asia leading the push as greater prosperity gives more people the means to travel, reports Bloomberg. ■ PAGE 3 ONGC gas leak in Assam continues for fourth day LEAKAGE OF gas continued for the fourth day at a well of energy major ONGC in Assam's Sivasagar district, where 70 families have been shifted to a relief camp, officials ■ PAGE 12 said on Sunday. GSTrate on sin goods and cars may increase ● Compensation levy likely to go in March 2026,but other cesses may take effect UNDER CONSIDERATION ■ The remaining 1% comes from other special rates being applied on gold, etc 28% ■ The GST Council is expected to meet in June-July with a heavy agenda to discuss the rate rationalisation slab rate and cess PRASANTA SAHU New Delhi, June 15 THE PROPOSED REVISION in the structure of the Goods and Services Tax (GAT) slabs may not raise the weighted average levy but is likely to keep the tax incidence on “demerit and luxury goods”at roughly the current levels. While the compensation cess levied on these goods is likely to be dispensed with, effective FY27, other imposts like health orclean energycess may be applied,sources said. A higher tax rate on items like tobacco products, aerated ■ Of the gross GST ■ A higher tax rate on items like tobacco products, aerated drinks and cars, up from the current 28%, subject to a 40% rate cap mandated under the GSTAct, is under consideration drinks and cars, up from the current 28%,subject to a 40% rate cap mandated under the GST Act, is under consideration in official circles. Currently, the tax incidence on these items is the result of the combined effect of the 28% slab rate and the compensation cess and revenues, the 18% slab contributes 65%, followed by 28% (16%), 5% (10%) and 12% slabs (18%) ranges between 29-50%. The need for a rate hike on demerit and luxury goods arises, as the removal of the compensation cess will otherwise reduce the tax incidence on them. The other cesses that are being considered will be of lesser magnitude than the FE S P EC I A L S ■ The discussions are focused on whether the 28% slab rate should be increased to 35% or 40% compensation levy. According to the sources,the GSTCouncil is expected to meet in June-Julywith a heavyagenda to discuss the much-awaited rate rationalisation/simplification,and the future of the compensation cess. Continued on Page 12 l ISRAELATTACKS IRAN’S OIL& GAS FACILITIES Flames rise from an oil storage facility after it appeared to have been hit by an Israeli strike in Tehran, Iran, early on Sunday. Meanwhile, US President Donald Trump said the Israel-Iran conflict could be ended easily while warning Tehran not to strike any US targets. The Comptroller and Auditor General of India will convene a meeting of state finance secretaries in September, with focus on the adoption of remote auditing, timely submission of state accounts data and issues related to central sector schemes, reports Prasanta Sahu. ■ PAGE 2 A HELICOPTER carrying Char Dham pilgrims from Kedarnath crashed near Gaurikund in Rudraprayag district early Sunday, killing all seven people on board including a two-year-old child. Officials said preliminary indications suggested that the crash took place amid poor visibility due to bad weather. ■ PAGE 18 NESIL STANEY Mumbai, June 15 ■ Currently, the tax incidence on these items is the result of the combined effect of the CAG and states to weigh remote audit plan Chopper crash near Kedarnath claims 7 lives Raft of reforms on Sebi board meeting’s agenda TAX HIKE SUBJECTTO 40% RATE CAP ■ Related reports on Page 2, 3 Haifa Port headache for Adanis RAGHAVENDRA KAMATH Mumbai, June 15 WHAT'S AT STAKE ■ Adani IRAN’S BALLISTIC MISSILE attack on Israel’s Haifa Port and a nearby oil refinery late on Saturday night could create a massive headache for Adani Group's operations in West Asia. Adani Ports & Special Economic Zone (APSEZ) holds a 70% stake in Haifa Port, which it acquired in 2023 for $1.2 billion. Though cargo operations have not been impacted yet, the continued instability is a major cause of concern for the Haifa Port which serves as a crucial mar- ■ It acquired it in Ports & SEZ holds a 2023 for 70% $1.2 bn in partnership stake in Haifa Port with Gadot Group of Israel ■ The port contributes 3% of APSEZ's total annual cargo volumes itime hub,handling over 30% of Israel's imports. The port contributes 3% of APSEZ's total annual cargo volumes and about 5% of revenue. APSEZ handles a total cargo of 10.57 million tonne. In Q4FY25 , the company said it has set up a senior leadership team at the site and signed a union agreement in April 2025.The agreement will lead to significantly higher productivity and efficiency at the port, the company said, adding that during FY25,Haifa Port’s earnings before interest, taxes, depreciation and amortisation (Ebitda) increased by 36% year-on-year. Aquerysent to Adani Group seeking its perspective did not elicit any response. Adani Group is also involved in multiple projects in Israel.The group,however,had put its $10 billion semiconductor joint venture with Israel’s Tower Semiconductor on hold. Continued on Page 12 IN THE PIPELINE THE BOARD OF the Securities and Exchange Board of India (Sebi) is expected to discuss co-investment opportunities for alternate investment funds (AIFs) and easier compliance obligations for foreign portfolio investors (FPIs) putting money exclusively in gilts,at its next board meeting on Wednesday. The simpler KYC norms and reporting requirements are aimed at attracting stable, long-term capital. Also on the agenda is the demerger or an ownership cap for clearing corporations by stock exchanges. Moreover,the board is also expected to weigh in on tighter regulations for SME listings as also a mechanism forvoluntary delisting of government companies. Market experts believe the definition of qualified institutional buyers (QIBs) could be broadened to include accredited investors. The regulator could, they feel,remove the 200-investor cap for private placement offers and ease the paper work for qualified institutional placements (QIPs). This would mean easing ■ Co-investment ■ Easy compliance opportunities for AIFs obligations for FPIs investing in IGBs ■ Reclassifying REITs and InvITs as equity from hybrid ■ Increasing MF exposure to REITs and InvITs ■ Demerging ownership of clearing corporations by stock exchanges ■ Easy paper work for QIPs Tightened regulations for SME listings A mechanism for voluntary delisting of PSUs ■ the compliance for companies who would need to furnish only information that is relevant. The idea is to reduce the timeframe and effort forpreparing the placement document. The reclassification of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) as equity could also be taken up as could a higher investment limit for mutual funds in REITs and InvITs. Although, MFs might not be agreeable to this change,it would spur the flow of passive funds into REITs. The demerging or capping stock exchange ownership in clearing corporations is critical for market infrastructure resilience, said experts. Sebi’s likely move to set minimum and maximum shareholding thresholds is in line with global best practices and the recommendations of the International Organisation of Securities Commissions (IOSCO). Continued on Page 12 AC firms may switch to new temperature standards in three months SHIFT IN STANCE WHILE THE STARTUP funding ecosystem is showing signs of recovery after a prolonged slowdown,the appetite for angel investing seems to have diminished significantly, pointing to a shift in earlystage capital dynamics. According to Kushal Bhagia, co-founder of earlystage VC firm All In Capital, many angel investors planned poorly. “They deployed their entire angel investment corpus in two years, not realising that exits take four to five years,” Bhagia pointed out. With a lot of capital locked up in illiquid investments, many angels have pulled back or paused funding activity. “Money is available but investors now demand proof of growth, frugality, and a path to profitability,”said Brijesh Damodaran, founding partner at Auxano Capital. Data from Tracxn shows that of the top 200 funding rounds since 2019, that included at least one angel investor,only eight have been completed so far in 2025. ■ Removal of the 200-investor cap for private placement ■ Angel investing declines despite funding revival AYANTI BERA Bengaluru, June 15 ■ Broad definition of QIBs to include accredited investors VIVEAT SUSAN PINTO Mumbai, June 15 This is a sharp drop from 28 in 2024 and 26 in 2023, and less than a fifth of the 46 rounds seen in 2022. While over 3,400 funding rounds since 2019 have witnessed participation from angel investors, the momentum has clearly slowed in recent years. MANUFACTURERS OF AIR conditioners will implement the temperature standardisation measure announced by the government last week, in the next three months, at no extra cost to consumers. The move will be likelytimed with the September-October festive season when new inventorywill be available in the market,executives said.Companies are unlikely to incur any major expense to manufacture ACs that will be designed fortemperatures between 20°C and 28°C. NS Satish, president, Haier Appliances India, told FE the additional cost is insignificant.“It will require an adjustment in the temperature control settings, which is not huge.However,this adjustment will be done in new inventory that will be rolled out in the next two to three months,” Satish confirmed. B Thiagarajan, MD, Blue Star, said companies would have to make minor modifications in theirAC models to meet the temperature control norms. Continued on Page 12 Continued on Page 5 38 2021 18 46 26 2022 2023 28 2024 2020 36 2019 No of angel funding rounds Source: Top 200 angel rounds from Tracxn 8 2025 (YTD) As the annual fest gets going on the French Riviera, we give you a ringside view from some of India’s best ad men has changed — and the players who understand tech as a native language are dictating the pace. Creativity, in 2025, demands more than imagination.It demands integration. India‘Cannes’OrCan’t? ■ eFE, P13 AI bridges healthcare gaps Philips' Bengaluru campus becomes a hub for developing nextgen health technologies ■ PERSONAL FINANCE, P7 Corporate bonds in a sweet spot First-time investors should start with AAA or AA rated bonds INDIA @ CANNES OVER THE YEARS Entries n ROHIT OHRI CANNES LIONS 2025 is making one thing abundantly clear — the age of slow creativity is over.This year,the biggest winners will not just be emotionally resonant,theywill also be technologically fearless. Brazil claimed Creative Countryof the Yearbybreaking formats,fusing tech with culture,and challenging what advertising can be. Meanwhile,India — long celebrated for its heart and humanity — finds itself at creative crossroads.The craft is still strong,the storytelling still soulful.But is that enough when the future demands speed,systemthinking, and platform-native Number of Lions 2019 2021 1,053 2022 CANNES 18 15 699 47 921 2023 809 2024 826 25 18 ■ In 2025, India sent 982 entries, its highest number post-pandemic ideas? As the global creative engine accelerates, India must ask itself the hard question: Cannes orCannot? The yachts are back.The rosé is flowing.But under the shimmer of the Croisette, there’s a quiet urgencyin the air. The Cannes Lions International Festival of Creativity has never just been about trophies. It’s where the global ad industry takes a long, hard look in the mirror.And this year,that reflec- ■ 2022 was India's best year at Cannes with 5 Grand Prix awards, 2 Titanium Lions, 8 Golds, 15 Silvers and 15 Bronze Lions tion reveals a landscape being reshaped at breakneck speed. AI is not a novelty. It’s the newnormal.From spatial computing to algorithmic storytelling, the very grammar of advertising has changed. Cannes 2025 is less about polished TVCs and more about ideas that live across realities — digital,physical,virtual. And in this high-speed redefinition, a sobering question emerges: Is India evolving fast DIARY enough — or are we drifting toward creative complacency? Today’s most celebrated work is not only emotionally resonant — it’s technologically fluent. The campaigns that captivate aren’t just clever; they are code-aware, culture-embedded, and radically fluid. Synthetic influencers.Generative music.Augmented storytelling.Brands nowbuild ecosystems, not ads.The playground Brazil: The unexpected vanguard And this year, Brazil has taken that integration to a whole new level. Named Cannes’ Creative Country of the Year, Brazil’s rise is anything but accidental. Their campaigns are raw, relevant,and restlessly inventive. They’ve used AI not as spectacle, but as social catalyst. They've turned marginalised communities into interactive canvases. Their work is emotionally potent, but also technologically bold. (The author is founder, Ohriginal) Continued on Page 12