COMPANIES | PAGE 5 THE BIG IDEA | PAGE 24 Agilitas sports:The relationship metric BRANDWAGON | PAGE 9 Aadhaar complies with data law, says UIDAI chief HYDERABAD, MONDAY, AUGUST 4, 2025 Sitaare Zameen Par leads distribution shift FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. NO. XXII 80, 32 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 Exchequer gains `4.31 lakh crore from DBT savings THE TRANSFER of various subsidies and sops to beneficiaries through Direct Benefit Transfer (DBT) plugged leakages worth `82,573 crore in 2023–24, taking cumulative savings since 2014–15 to about `4.31 lakh crore, reports Prasanta Sahu. ■ PAGE 2 Nykaa plans to double stores to 500 by 2030 NYKAA PLANS aggressive expansion, doubling stores from 237 in FY25 to 500 by FY30, boosting omnichannel presence, premium brand access, and deeper reach into tier2 and tier-3 Indian cities, reports Urvi Malvania. ■ PAGE 4 SBI Cards faces tough market share battle SALILA PANDE’S FIRST months at SBI Cards have been challenging, as the company lost ground in credit card spends. ICICI Bank surpassed it in FY25, capturing 18.9% market share versus SBI Cards’ 15.7%, reports Kshipra Petkar. ■ PAGE 6 PRODUCTION MAYQUADRUPLE Govt plans `5K-cr rare earth push NITIN KUMAR New Delhi, August 3 MAGNET MISSION THE GOVERNMENT IS planning to increase the outlay for the rare earth magnet manufacturing scheme to over `5,000 crore,up from the originallyproposed`1,350crore.In addition, the annual productiontargetislikelytobequadrupled — from 1,500 metric tonne to around 6,000 MT. The move is part of a broader push to expand domesticcapacityinthestrategically critical segment of rare earth permanent magnets, which are widely used in electric vehicles, wind turbines, electronics, and defence systems. Official sources said the revisionsaimtoreducetherisk of project failure by expanding industry participation and shieldingthesectorfromglobal supplydisruptions. “The revision is aimed at bringingmoreplayersunderthe ambitofthescheme.Byincreasing the outlay and expanding participation, the government hopes to become self-reliant in thisstrategicallyimportantsegment,” officials said. Ratherthanlimitingincentives to just two manufacturers, the revised plan proposes support for at least five, with each eligible for incentives on ■ Original outlay was `1,350 crore Target rise: 1,500 MT -6,000 MT ■ Move aims to cut import reliance ■ Rare earth magnets used in EVs, defence 30-member RBI team to steer removal of obsolete regulations MAHESH NAYAK Mumbai, August 3 IN A SIGNIFICANT stride towards regulatory reform, the Reserve Bank of India (RBI) has set up a 30-member Regulatory Review Cell (RRC), a dedicated internal mechanism, to streamline financial regulations and reinforce systemic resilience. Announced as part of a broader push for modernisation, the RRC is tasked with evaluating existing rules,identifying redundancies,and sunsetting outdated provisions. Thisinitiativeaimstoeliminate obsolete provisions that no longer serve their purpose but continue to create operational friction forregulated entities. Continued on Page 11 ■ Plan to cut rules to ■ Removing outdated, 3,000 irrelevant legal provisions in focus ■ Move to help management focus on priorities ■ It is working on reducing rules from 8,000 to 3,000 ■ Improve clarity & lower compliance costs ■ Cell reviews relevance, benefits and gaps “It’s about evolving intelligentlyratherthan accumulating complexity,”said RBI Governor Sanjay Malhotra at the recentlyheld FE BFSI Summit. He stated,“We are consolidating and not introducing a new framework per se. The pur- pose is to see whetherwe have any obsolete regulations.” The Cell will evaluate relevance, cost-benefit impact, consumercentricityandpossible regulatorygaps.“Ouraim is to simplifyand reduce compliance complexity and enhance transparency,”he added. Currently, RBI has about 8,000 regulations, circulars, master directions, and notifications, out of which around 5,000 are obsolete. Continued on Page 11 D2C boom faces consumerfatigue S SHANTHI Bengaluru, August 3 up to 1,200 metric tonne of annual output,sources added. The changes follow a suggestion from the Prime Minister’s Office(PMO),whichhadearlier asked the Ministry of Heavy Industries (MHI) to broaden the scheme’s scope. The proposed contours are expected to better align with projected demand. EASING REGULATORY BURDEN ONCE HAILEDASthefutureof retail, the direct-to-consumer (D2C) space is now showing signs of fatigue. Rising customer acquisition costs (CAC), digitalplatformfatigue,waning brand loyalty, and a tighter fundingenvironmentaremaking it increasingly difficult for many D2C companies to sustain growth.As Milan Sharma, founderandmanagingdirector of35NorthVentures,toldFE,“It turns out that building a brand iseasy,butscalingoneisbrutal.” This is reflected in investor appetite which has cooled sig- D2C GROWTH GLITCH ■ D2C startups raised $672.8 mn in 2024, down from $830.2 mn in 2023 ■ From 300 brands in 2018, there are now over 11,000 D2C firms ■ So far in 2025, D2C ■ Only 233 players have have crossed raised the `150 cr $488.48 mn revenue mark nificantly. D2C startups raised $672.8 million in 2024, down from $830.2 million in 2023 and $1.8 billion in 2022, data from Tracxn shows. So far in 2025, D2C players have raised $488.48 million, including beauty and personal care D2C brand SUGAR Cosmetics’ $5 millionfundraisefromexisting investorAnicutCapitalandothers.The sectorhas also become overcrowded. From just 300 brands in 2018, there are now over 11,000 D2C companies, but only 233 have crossed the `150 crore revenue mark, Tracxn data shows.“Just having a slick brand or Instagram presence isn’t enough as there are too many players,” said Somdutta Singh, founder and CEO of Assiduus Global. Several prominent D2C startups—including boAt, Wow Skin Science, Ustraa, and Wrogn—reported revenue declines in FY24.Mamaearth’s net profit fell 17% y-o-yin Q4 FY25, while Wakefit posted a netlossof`8.8croreinthefirst nine months of FY25. Continued on Page 6 HYDERABAD Weak margins dampen India Inc’s Q1 show INDIA INC’S JUNE quarter earningshavebeenlargelysubdued, with most companies posting modest numbers. Net sales for 771 firms (excluding banks and financials) rose 7% year-on-year, slower than the past two quarters, indicating weak demand. Operating profit margins contractedby8basispoints—the steepest decline in four quarters—despitelowerrawmaterial costs.Operatingprofitgrewonly 6%y-o-y.Netprofitalsorose6%, supported by a 20% increase in otherincomeanda76%surgein Reliance Industries’ profits, which,when adjusted,were up 19.5%y-o-y. ■ PAGE 4 Exportersseek higheroutlay forschemes TO REMAIN COMPETITIVE in the US market, Indian exporters have sought increasedgovernmentsupport through higherbudget outlays for export promotion schemes and revival of the Interest Equalisation Scheme (IES) to lower borrowing costs. This follows a 5–10% tariff gap created by recent US policy changes,putting India at a disadvantageagainstcountrieslike Vietnam and Bangladesh.At a meetinginMumbai,Commerce MinisterPiyushGoyaldiscussed challengeswithexporters.FIEO President SC Ralhan stressed the need for immediate action to safeguard exports. ■ PAGE 2