THE BIG IDEA | PAGE 22 COMPANIES | PAGE 4 Renewedfocus: Udaanplaces abillion-dollarbetonBharat BRANDWAGON | PAGE 9 Honda's e2Wstrategy falters amid unsold stock BENGALURU, MONDAY, AUGUST 25, 2025 Ad firms rely on tech to cut costs this festive season FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XXXVIII 111, 36 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 SMBC eyes 4.99% YES Bank stake from PE Players JAPAN’S SUMITOMO MITSUI Banking (SMBC) is poised to acquire an additional 4.99% stake, potentially from private equity (PE) playersAdvent International and Carlyle Group.The transaction comes on the heels ofRBI’s nod for SMBC to raise its holding to 24.99% from current 20%, report Kshipra Petkar and Mahesh Nayak. ■ PAGE 6 WestAsia emerges as new hub for Indian law firms EVEN AS THE Indian legal market continues to be plagued by squabbles over entry of foreign law firms, the UAE and Saudi Arabia are emerging as legal hubs. Top firms plan to set up branches in the region, reports Jyotsna Bhatnagar. ■ PAGE 3 MUKESH JAGOTA New Delhi, August 24 THE TOTAL OUTLAY for the Export Promotion Mission (EPM) is likely to be fixed at `25,000 crore through 203031, with annual allocation going up each passing year as various components of the mission get operationalised. Accordingtoofficialsources, themissionisawaitingclearance from the Expenditure Finance Committeeinthedepartmentof expenditure,beforeitistakento the Cabinet for approval. The exporters are waiting for the scheme in anticipation that it will help them navigate the overall export slump and the difficult situation caused bythe heftyUStariffs. The announcement of the EPM in this year’s Budget on February 1 predates US Presi- GROWTH CATALYST Expenditure on export promotion schemes (` Crore) 2021-22 2023-24 »INSIDE« ‘25% PENALTARIFFS, CLEARLYTILTED TO THE DOWNSIDE FOR GROWTH’ PAGE 2 dentDonaldTrump’sbarrageof tariff announcements starting April2withIndiabeinghischosen target. From August 27, Indian exports to the US,which is its biggest market, will face 50% duties, unless there is a 2,250 through FY31 2,718 ● Scheme to run 4,044 AFTER STATE BANK of India, Bank of India has classified the loan account of Reliance Communications as fraudulent and named its former director Anil Ambani, citing alleged fund diversion in 2016, reports Urvi Malvania. ■ PAGE 5 Newexportmission toget`25K-crboost 4,602 After SBI, BoI puts ‘fraud’ tag on Anil Ambani, RCom CABINETAPPROVALLIKELYSOON 5,139 IN THE NEWS 2025-26 ■ It targets MSMEs with credit & export boosting steps ■ Plan involves commerce, MSME, finance ministries, others last-minutechangeofplan.The uncertaintyaround the rapidly changing global trade dynamics will have to be factored in, while finalising the design of the mission,the sources said. The mission subsumes manyofthefunctionsthatwere being met through schemes that are eitherno longeroperational orneed changes. Continued on Page 11 Small beats big Toughtimesfor Kylaq doubles in FMCG space affordableHFCs Skoda sales SMALL FAST-MOVING consumer goods (FMCG) companies continue to outperform their bigger rivals in value and volume growth. The smaller players are aided by strong rural demand and easing inflation, says a report. ■ PAGE 4 INDIA’S AFFORDABLE HOUSING finance sector, driven by strong demand in tier-2 and tier-3 cities, has seen robust growth but faces rising credit costs and asset quality pressures, mainly among self-employed borrowers. ■ PAGE 6 THE KYLAQ SUB-4 metre SUV has sparked a dramatic transformation in Skoda India’s fortunes, more than doubling the brand’s sales in the first seven months of this year. Since January, Skoda has sold 27,091 units of the Kylaq. ■ PAGE 9 UDAN passengercount nosedives SWARAJ BAGGONKAR Mumbai, August 24 THE MUCH-HYPED JOURNEY from hawai chappal to hawai jahaaz (rubber slippers to aeroplanes) has hit a massive air pocket. Asthegovernment’sregional connectivity scheme – UDAN (Ude Desh Ka Aam Nagrik) – completes nine years (it was launched in 2016 though the first flight took off a year later), passengercounthasslumpedby morethanhalfinFY25fromthe peakseenjustthreeyearsearlier. Only 1.41 million passengers availed the benefit,a drop PROMISE vs REALITY 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 263,166 1,240,896 1498066 Passengers Travelled 2,991,337 3,299,861 2,497,361 1,865,101 1,410,499 Y-o-Y Change (in %) 371 141 -50 120 -24 -25 -24 Source: Ministry of Civil Aviation of 57% compared to the peak of 3.3 million clocked in FY22, and a 24% drop compared to FY24’s total of 1.87 million. FY25 marked three consecutive years of decline in passen- ger count for the scheme. UDAN was conceived to promote regional air connectivitybymaking flying affordable for the common citizen, the central idea being encour- aging airlines to operate flights on regional and remote routes through enabling policies and extending incentives. Continued on Page 11 350cc bikes may Dream11 exits as attract 40% GST cricket sponsor PRASANTA SAHU & SWARAJ BAGGONKAR New Delhi/Mumbai,August 24 MOTORCYCLES WITH AN engine capacity of 350cc and above maycome underthe specialGoodsandServicesTax(GST) rate of 40% under the ongoing restructuringofGSTslabs. At present,luxury cars and bikes with an engine capacity of 350cc or more attract 28% GST.With a 3% cess,the total tax incidence on this category of bikes is 31%, while the same is up to 50% for luxury cars with higher cess being applied. On the other hand, bikes below 350cc attract 28% GST without cess, which will be reduced to 18% as per the Centre’s proposal.The higher tax on the high-end bikes could mean a rise in their retail prices, if the manufacturers choose to pass it on. Royal Enfield varieties Classic, Meteor, Hunter and Honda H'ness are among the popular brands in the 350ccand-above category. Continued on Page 11 DEVENDRA PANDEY Mumbai, August 24 DAYS AFTER PARLIAMENT passed a law that made real money-based online games illegal, a key player, Dream11, has informedtheBoardofControlfor Cricket in India (BCCI) that itwill no longerbe able to sponsorthe nationalteam,leavingIndian cricketonthelookoutfora new partner with just a fortnightleftfortheAsia CupinDubai. “(Representatives of) Dream11visited the BCCI office and informed CEO Hemang Amin that they won’t be able to continue...As a result,theywon’t be the team's sponsors for the Asia Cup. The BCCI will float a new tender soon,”a BCCI official said. Pooja Sabharwal, vice BENGALURU president (communications) of Dream Sports, Dream11's parent company, declined to comment. Dream11 was started18yearsagoandbecame thebiggestfantasygamingplatform in the country,with avaluation of $8 billion,according to Bloomberg.It acquired the right tobetheBCCI'sleadsponsorina three-year deal worth `358 crore in July 2023,taking over from educational technology venture Byju's. Dream11 also hasabigpresenceinthe IPL with deals across franchises.Severaltopplayers have been its brand ambassadors, including Mahendra Singh Dhoni, Rohit Sharma, Hardik Pandya, Rishabh Pant andJaspritBumrah. Continued on Page 11