COMPANIES | PAGE 4 Tata Consumer plans food, beverage biz expansion THE BIG IDEA | PAGE 4 INTERNATIONAL | PAGE 3 Gupshup:AI unicorn built via messaging Putin proposes direct peace talkswith Ukraine AHMEDABAD, MONDAY, MAY 12, 2025 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XIX 289, 18 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, EU to resume 11th round of FTA negotiations today INDIAAND THE European Union (EU) will begin the next round of negotiations for their free trade agreement (FTA) on Monday, aiming to conclude an interim agreement as early as possible, reports Mukesh Jagota. This follows the announcement last week by the Prime Ministers of India and the UK, who confirmed the conclusion of key elements of the India-UK FTA. ■ PAGE 2 FTAs a big boost for labour-intesive sectors: CII chief THE FTAs THAT India is pursuing will open up opportunities for our labour-intensive sectors, CII) president Sanjiv Puri tells Mukesh Jagota in an interview. ■ PAGE 2 Mahindra Lifespaces aims to more than treble sales by FY30 MAHINDRA LIFESPACE DEVELOPERS, the real estate development arm of Mahindra Group, is looking to more than treble its sales to `10,000 crore by FY30. In FY25, the company clocked sales of `3,300 crore, reports Raghavendra Kamath. ■ PAGE 4 Procurement of wheat crosses 29 MT, highest in four years THE GOVERNMENT’S WHEAT procurement by agencies — Food Corporation of India (FCI) and various state procurement bodies — for the 2025–26 rabi marketing season (April–June) has crossed 29 million tonne (MT), highest since the 2021-22 season, reports Sandip Das. ■ PAGE 2 Benign crude, high refining margins to lift OMCs' earnings STATE-OWNED OIL marketing companies are expected to register a healthy first quarter amid weak crude oil prices and improvement in refining margins, analysts say. Earnings in the period will also get a boost from lower LPG under recoveries due to an increase of `50 per cylinder in domestic LPG prices, reports Arunima Bharadwaj. ■ PAGE 2 FE S P E C I A L S OPERATIONSINDOORSTILLON;GOVTVOWSTOHITDEEPINSIDEPAKHEARTLAND Pak sought US help after PM warned ofhard retaliation SHUBHAJIT ROY New Delhi, May 11 THE INDIAN PRECISION strikes on Pakistani air bases early on Saturday came hours after US Vice President JD Vance called up Prime Minister Narendra Modi on the night of May 9 and shared information about “alarming intelligence” that there was a “high probability for dramatic escalation if the conflict went into the weekend”. It is learnt that the Prime Minister told Vance that India’s response would be “harder, deeper and bigger”to anyPakistani misadventure. And the Indian armed forces struck after Pakistan attempted to hit 26 locations on India’s northern and western frontiers. These details,which emerged on Sunday, a day after the announcement of a ceasefire, were in sync with the government’s instruction to the military after it struck nine terror sites in Pakistan and Pakistan-occupied Kashmir on May 7. The Prime Minister is learnt to have said, “Wahan se goli chalegi, yahan se gola chalega (if bullets come from the other side,it will be responded with shells)”. On May 9 night and until the early hours of May 10, Pakistan NARENDRA MODI, PRIME MINISTER Waha se goli chalegi, toh yahan se gola chalega Murid, Chaklala, Rahim Yar Khan, Sukkur and Chunian and precision munitionsalsohitradarsitesatPasrur and the Sialkot aviation base. “It was a hellfire,” sources said, underlining that the runway of the PAF base in Rahim Yar Khan was damaged and there was serious damage to the Nur Khan air base in Chaklala, Rawalpindi. Continued on Page 12 Continued on Page 12 Retail investors still going strong on index options ANANYA GROVER Mumbai, May 11 THE SECURITIES AND Exchange Board of India’s (Sebi) stringent guidelinesinthefuturesandoptions (F&O) segment haven’t served as a deterrent for retail investors who tradeinindexoptions,astheiractivityremainsatelevatedlevels.Infact, it has grown marginally. According to NSE data,the category had 35.7% share in the premium turnover of index options in the financial year ended March 2025, compared to 35% in FY24 and 27% in the pre-Covid financial year 2019. Individuals’ premium turnover on NSE in the last financial yearwas `48.46 lakh crore, only 0.2% lower ELEVATED LEVELS Individual market share in Index Options (premium turnover) at NSE (%) FY19 FY20 FY21 FY22 FY23 FY24 FY25 than FY24, but more than 21% higherthan the previousyear.In the financialyear2020,theturnoverwas just `3.1 lakh crore. Sourcesin the knowsaid thatthe market regulatorhas been monitor- PRESS TRUST OF INDIA New Delhi, May 11 THE CONGRESS ON Sunday demanded answers from the government on whether it has acceptedthird-partymediation on Kashmir after the US made announcements on behalf of India and Pakistan, and slammed attempts to"internationalise" the issue and "hyphenate"the two countries. Addressing a press conference at the AICC headquarters, Congress general secretary SachinPilotsaidtheUSmoveto announcea"ceasefire"between India and Pakistan is"unprecedented"andraisesseveralquestions. He said the government must accept the opposition's demand for another all-party meeting chaired by the prime minister and a special session of Parliamenttodiscusstheseissues inthecurrentcircumstances. INFLICTED HEAVY LOSSES »INSIDE« BRAHMOSAMESSAGEINITSELF, PAK MILITARY: INDIA PAGE ON SAYSRAJNATHSINGH PAGE 16 16 attacked at 26 places, but these attempts were thwarted by Indian air defence systems. This was a significant scaling up of Pakistan’s aerial attacks through drones, which averaged about 10 locations earlier. In retaliation,the Indian armed forces attacked Pakistani military bases at eight locations: airlaunched precision weapons from fighter aircraft targeted Rafiqui, Congresswants answersonUS roleinceasefire 27 28.80 31.50 33.7 35.1 35 35.7 ing the activityin index options and is currently examining the feasibilityoffurthermeasures,peopleaware of the mattertold FE. Continued on Page 12 QUICK PICKS Toyota may hit supply bump on Maruti push TOYOTA KIRLOSKAR MOTOR’S rapid growth through rebadged Maruti Suzuki models may slowdown a bit, as Maruti is unlikely to significantly increase supplies to its alliance partner. Maruti’s growing export commitments could constrain further allocations. Vanguard strikes gold with contra bets in India ● Portfolio rises 44% since March-end SHARP RISE NESIL STANEY Mumbai, May 11 VANGUARD EMERGING MARKETS Select Stock Fund,part of the $10.4-trillion Vanguard group, the second-biggestfundhouseglobally, has hit pay dirt with its aggressive contra bets in Indian stocks in the past few months. Since March-end, its portfolio size has gone up 44% to `61,880 crore from `43,047 crore, according to data from market tracking website Trendlyne. The sharp rise is due to fresh investments and rise in the share prices of some of its holdings, said industry players. The Sensex and Nifty have gone up by 2.63% in the same period, while broader indices BSE Midcap and BSE Smallcap have gained only up to 1.40%. Vanguard is among the four biggest foreign portfolio investors in India, trailing the sovereign wealth funds of Singapore and Norway and the Capital Group. They are followed by Goldman Sachs, JP Morgan Asset Management and GQG Partners. Vanguard’s stand-out performance is in sharp contrast to some other big names. During the same period, Government of Singapore’s India portfolio fell by -0.3% to `2.3 lakh crore. Goldman Sachs took a 5.9% hit on its 76-stock India portfolio since March 25 to `11,235 crore. Among others, Singaporebased Nalanda India Fund’s India portfoliofell5.8%to`29,264crore. Portfolio data for Capital Group, JP Vanguard Fund India portfolio (` cr) 70,000 61,880 60,000 50,000 40,000 5,434 30,000 20,000 10,000 0 Dec ‘15 Source: Trendyline.com May ‘25 Morgan funds and Norges Bank’s sovereign wealth fund, also known asNorwayOilFundwasunavailable. Since April 1, FPIs have turned net buyers of `14,591 crore ($1.7 billion) in the Indian market. While the data on its purchases since March are not available, the fund house made fresh bulk buys of more than 1% in ten stocks in the January-March quarter. Its biggest bet was in ICICI Bank at `10,708 crore (1.3%), followed by Mahindra and Mahindra at `3,798 crore (1%) and `2,459 crore for 1.1% stake in Eternal (Zomato). Among mid and small-cap stocks,it picked 1% stake in Cipla for `1,205 crore and `468 crore for a 1% stake in APL Apollo TubesandReliancePowerinwhichit bought a 1% stake for`157.3 crore. Continued on Page 5 ● POPE CALLS FOR PEACE Stock bulls in India, Pak expect rebound STOCKS IN INDIA and Pakistan are set for a relief rally following a ceasefire agreement between the two nuclear-armed neighbors on Saturday, as the investor focus shifts back to improving economic outlook. Foreign investors may resume flows as volatility subsides. Gensolprobetoaccelerateasagenciesteamup MANU KAUSHIK New Delhi, May 11 JOINT WORK THE GOVERNMENT WILL set up a “cross-functional”teamof multiple agencies probing the Gensol Engineeringcase,withaviewtospeedup theinvestigationprocess,anofficial source told FE. GensolEngineeringanditsaffiliateBluSmartMobilityarecurrently being probed by various agencies under different rules and Acts, for diversionoffundsandallegedviolation of laws, including the Compa- currently being probed by various agencies ■ The NFRA is also examining role of auditors for any lapses in performing their duties ■ Gensol and BluSmart are ■ Besides Sebi, MCA, ED, and ICAI are looking into the firm’s alleged misconduct nies Act. Last week, the Securities Appellate Tribunal refused to stay themarketregulator'sinterimorder. It also asked Gensol to file its reply and directed the Securities and Exchange Board of India (Sebi) to passthefinalorderwithinfourweeks of the firm's hearing. Besides Sebi,the ministry of corporateaffairs(MCA),viatheregistrar of companies, the Enforcement Directorate (ED), which functions undertheministryoffinance,andthe InstituteofCharteredAccountantsof India (ICAI) are looking into some or the other aspects of the company’s allegedmisconduct.Simultaneously, the National Financial Reporting Authority (NFRA) is examining the role of auditors for any lapses in performing theirstatutoryduties. Continued on Page 12 People watch Pope Leo XIV on a giant screen as he delivers his blessing from the central balcony of St. Peters Basilica for his first Sunday blessing after his election at the Vatican on Sunday AP ■ BRANDWAGON, P9 Fair platform for a lovely take-off How Nykaa became the go-to launchpad for global brands ■ PERSONAL FINANCE, P7 Smart beta funds for alpha These show stronger riskadjusted returns in volatile markets ■ eFE, P10 ‘Our goal is zeroaccident mobility’ Interview with Manu Saale, MD & CEO, Mercedes-Banz Research & Development, India ■ EXPLAINER, P6 The message in the US-UK trade deal It could set the template for pacts that India & others are trying to clinch with the US Hotel chains staring at a 40% decline in business for May India-Pakistan tensions rock hospitalitybusiness SWARAJ BAGGAONKAR & URVI MALVANIA Mumbai, May 11 THE HOSPITALITY SECTOR has become one of the biggest casualties of conflicts between India and Pakistan.Hotelchainsaregrappling withbusiness slowdown,with more than 50% of bookings getting cancelled over the past week across Mumbai, Delhi, Bengaluru and Chennai,as companies have issued travel advisories,sources said. As a result of cancellations and the decline in fresh room bookings, hotelsare staringata40%slumpin businesses for May, hospitality executives said. “Revenue from inbound international tourism accounts for almost 10% of the Indian Hotels HIT HARD ■ HDFC Bank, Axis ■ Hotels are staring at as much as a 40% decline in business for the month of May Bank and Tata Communications have issued travel advisories, restricting domestic travel ■ Major centres like Mumbai, ■ Things were made Delhi, Bengaluru and Chennai saw more than 50% booking cancellations over the past week Company's(IHCL)totalrevenueand about 15% at Ventive Hospitality. As per our calculations, everything else being equal, Indian Hotels couldfaceEBITlossesof around`11.5crore perdayandVentive Hospitality could face per-day losses of `50 lakh on the loss of inbound worse by the temporary suspension of the Indian Premier League (IPL) international tourism,” a report by HSBC Global said. IHCL runs and operates the Taj brand of hotels under the Tata Group while Ventive Hospitality is the Indian partner to global hospitality giants like Marriott International and Hilton Worldwide. Over the last week, companies like HDFC Bank, Axis Bank and Tata Communications have issued travel advisories, restricting domestic travelling.Global multinationals have also taken steps along similar lines, reducing the inbound business for hotel chains across the board. “The safety and security of our guests and associates is of paramount importance to us.This is an evolving situation,andwe are monitoring developments and the businessimpact,”anIHCLspokesperson said in response to FE’s queries. Besides cancellations in room booking owing to limited leisure and corporate travel, meetings and conferences have also been cancelled, leading to loss of business. TheChennaipropertyofapanIndia 5-star saw 100 room bookings for an event cancelled late last week. Another 5-star in Mumbai’s Juhu area sawevent cancellations resulting in loss of business to the tune of `1 crore in just two days. “Corporate travel and MICE (meetings, incentives, conferences and exhibitions) are also feeling the impact,with companies restricting non-essential travel, promoting remote work and rescheduling events to ensure employee safety,” Mandeep S Lamba, president and chief executive at hospitality consultancy HVS ANAROCK,said. Things were made worse by the temporary suspension of the Indian Premier League (IPL) by the Board for Control of Cricket in India (BCCI) which contracts more than 30 high-end hotels for team, crew and commentator accommodation during the two-and-a-halfmonth tournament.The BCCI has contracts with chains like Indian Hotels, Trident Oberoi and ITC, among others. Continued on Page 5 Ahmedabad