Month: April 2024

Investing in India’s booming e-commerce infrastructure: A game-changing opportunity

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

India’s e-commerce market is on a rapid growth trajectory, with online sales forecasted to skyrocket from $60 billion to $300 billion by 2030. This exponential growth has spurred robust demand for Grade A warehouses across the country.

India is in a structural sweet spot with respect to warehousing, with industrial and consumption led demand outstripping the supply addition in most key markets across the country. Multinational tenants (across industrial categories, E-commerce players and 3PL Logistics companies) are increasingly gravitating towards larger, higher-quality warehouses.

While 7 in 10 online shoppers reside in Tier 2+ cities, only around 28% of the warehousing stock is in Tier II cities, which is driving demand for Grade A warehousing assets in cities like Jaipur, Lucknow, Kolkata, Nagpur and Ludhiana. Between 2017-2022, institutional players have invested close to around $10 billion towards building Grade A warehousing assets.

Property Share – India’s first and largest commercial real estate investment platform, recently unveiled its latest real estate investment opportunity — a prime distribution centre leased to a leading e-commerce company, a subsidiary of the largest retailer in the world.

This rare investment opportunity offers retail investors a chance to invest in a brand-new built-to-suit Grade A+ warehousing facility. This opportunity marks Property Share’s first foray into the Indian warehousing space, having already invested around £20 million across 3 warehousing assets in the UK.

Key highlights of the investment opportunity are:

Impressive Rental Yield: 9.1% per annum

Reputable Tenant: Leased to an Indian e-commerce giant

Long Lease Tenure: A secure 9-year lease with a 4.3-year tenant lock-in period

Location Advantage: Situated in Jaipur’s largest industrial market, conveniently located off NH48

Superior Build Quality: A meticulously crafted, A+ built-to-suit facility tailored to the tenant’s needs

Favourable Returns: Offering an attractive target IRR of 16.1% and a 1.70x multiple

Comprising three boxes totaling more than half a million square foot of warehousing area, this distribution centre serves as the largest distribution and fulfilment centre in the West for the e-commerce giant.

Processing a staggering 2 lakh orders per day (5 lakhs during peak periods), the tenant has spared no expense in outfitting the facility with state-of-the-art infrastructure, including advanced racking systems, turnstiles, offices, training centres, cafeteria, and employee recreation zones.

Furthermore, the location of the asset, Ajmer Road stands out as Jaipur’s premier warehousing location with a roster of esteemed tenants like Amazon, Coca Cola, Hindustan Unilever, Delhivery, Havells, and ECom Express operating out of the area.

Strategically positioned just 45 minutes from the Jaipur airport and in proximity to Mahindra World City, the warehouse enjoys seamless connectivity to key highways, enhancing its appeal to tenants and investors alike.

The investment opportunity is a direct play on the logistics and warehousing market which is one of the fastest growing segments within real estate on the back of rising e-commerce and online shopping post the pandemic.

To know more about the investment opportunity, visit here.

This is partnered post.

Authors Note: The writer of this article is Ganesh Arunachalam, Vice President – Investments (North & West), Property Share. The views are expressed are personal. 

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PayPal executives focus on branded checkout growth, firm raises 2024 profit forecast

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

PayPal executives on Tuesday emphasized plans to reignite growth in branded checkout products that have struggled in recent years as big tech expanded market share, after the payments firm raised its forecast for full-year adjusted profit.

The company’s stock had struggled last year on fears that the entry of Apple and Alphabet’s Google in digital payments could take away a big chunk of PayPal‘s mainstay business.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Lok Sabha Election 2024: Baramati election outcome will decide the future of Pawar dynasty, says expert

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

With just about a week remaining for the third phase of the Lok Sabha election, a high-stakes political battle is in the offing in Maharashtra and Gujarat.

In Maharashtra, where 13 seats have already witnessed voting in the initial phases, the upcoming third phase will see 11 seats up for grabs. Among these, the spotlight is particularly intense on several high-profile constituencies including Baramati, Sangli, Satara, Ratnagiri-Sindhudurg, and Kolhapur.

The contest in Baramati, a stronghold of the Nationalist Congress Party (NCP), has become the epicenter of attention, as Ajit Pawar’s wife Sunetra Pawar is taking on Sharad Pawar’s daughter Supriya Sule.

Senior journalist Sudhir Suryavanshi emphasised that the battle symbolises a deeper power struggle between Sharad Pawar and his nephew, Ajit Pawar. He noted that the outcome will have significant implications for the future course of Maharashtra’s political landscape.

“In Maharashtra, Baramati is the most watched battle in this Lok Sabha election. The battle is not between Supriya Sule versus Ajit Pawar’s wife Sunetra Pawar; the real battle is between uncle and nephew, that is between Sharad Pawar and Ajit Pawar. Whoever wins or whoever loses, it will have larger repercussions in state politics. If Ajit Pawar’s wife wins the seat then it is the end of Supriya Sule for carrying forward Sharad Pawar’s legacy, and then Ajit Pawar will be the main person who will carry forward the Sharad Pawar legacy. However, if Ajit Pawar loses then he will be completely cut to size in the state politics. In 2019, Ajit Pawar’s son has already lost an election, and now his wife is contesting, so stakes are very high for Ajit Pawar,” Suryavanshi stated.

He added that while the BJP-led NDA looks strong on paper, there is some kind of anti-establishment feeling among the people of Maharashtra because of the way the two parties (NCP and Shiv Sena) were broken. He highlighted that the NDA is looking like a divided house with both partners wanting a big pie in the entire share.

Meanwhile, in Gujarat, all constituencies except Surat are set for polling in the third phase. Voting will not take place in Surat as BJP candidate Mukesh Dalal was declared elected unopposed last week after Congress’ Nilesh Kumbhani’s nomination was rejected while other candidates withdrew from the contest.

Senior journalist Ninad Sheth highlighted the formidable grip of the BJP in Gujarat’s political arena, attributing it to both Narendra Modi’s influence and the state’s vibrant economy.

“On the central level, there is no political space in Gujarat, the political space does not exist. This is first and foremost a place where Narendra Modi’s personal connection works, secondly, Gujarat has a relatively dynamic economy. It is not easy to have two consecutive clean sweeps in a general election, that just tells you that there is no political space for any other party. I see a lot of noise from the opposition, but I do not see any substance coming out of this election. This is a one-way street, this is a one-way ticket to power for the BJP,” Sheth stated.

Notable figures such as Amit Shah and Mansukh Mandaviya are among the key contenders in Gujarat, where the BJP has historically clinched all 26 seats in both the 2014 and 2019 general elections, leaving the Congress without representation.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

DFS, Home Ministry hold workshop to bridge gap between fintechs and law enforcers, tackle financial fraud

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

In a concerted effort to bolster cybersecurity measures and combat financial fraud, the Department of Financial Services (DFS), Ministry of Finance, and the Indian Cyber Crime Coordination Centre (I4C), Ministry of Home Affairs, orchestrated a half-day workshop in New Delhi on Tuesday, April 30.

The event, chaired by DFS Secretary Vivek Joshi, aimed to foster collaboration between Law Enforcement Agencies (LEAs) and stakeholders in the Startup and Fintech ecosystem.

The workshop, which saw participation from over 60 Fintech companies, four Fintech Associations, 23 State Police Departments, and various governmental bodies including the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED), highlighted the critical need for synergy between government bodies, regulators, and private enterprises to fully leverage the potential of India’s burgeoning Fintech sector.

Joshi emphasised the pivotal role of Startups and Fintechs in India’s economic growth trajectory, stressing the importance of cohesive efforts in harnessing their innovative potential.

He urged for a unified approach towards addressing challenges such as cybersecurity and digital financial frauds, highlighting the necessity for proactive measures to build trust and confidence within the ecosystem.

Key discussions during the workshop revolved around strategies to mitigate cyber threats, including the role of technology in enhancing accessibility to financial services, combating money mule networks, and real-time monitoring of data breaches.

Additionally, the workshop delved into the establishment of mechanisms for account freezing/unfreezing to expedite the recovery of defrauded funds and ensuring data privacy.

Following points were deliberated during the proceedings of the workshop:

• Role of technology in providing accessibility to financial services
• Strategy to control the money mules
• Appointment of key contact point or nodal officer by the Fintech companies to liaise with the LEAs
• Real-time monitoring of data infringement by both the Fintech companies and LEAs
• Geotagging of digital transactions to track the money trails
• Creation of suspicious registry of BCs and fraudsters involved in the financial frauds
• Conducting regular audits of digital KYC for fostering trust and accountability
• Establishing a mechanism for freezing and unfreezing of accounts for faster recovery of defrauded money
• Devising a mechanism to ensure data privacy and prevention of data theft
• Modernisation of digital infrastructure by leveraging technologies like IPv6, API integration etc.

Insights shared by LEAs from Gujarat, Haryana, and Uttarakhand shed light on emerging trends in cybercrime and financial frauds, providing valuable inputs for devising comprehensive preventive measures. The event concluded with a panel discussion featuring LEAs, focusing on collaborative strategies for prevention and mitigation of cyber threats.

The workshop served as a platform for dialogue and knowledge exchange, bringing together stakeholders from across sectors to collectively address the evolving challenges posed by cyber threats and financial frauds. It highlighted the imperative for sustained cooperation and innovation to safeguard India’s digital financial landscape.

Among the attendees were representatives from key governmental bodies including the Ministry of Electronics and Information Technology (MeitY), Reserve Bank of India (RBI), and National Payments Corporation of India (NPCI), underscoring the collective commitment towards bolstering cybersecurity and ensuring the integrity of India’s financial ecosystem.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SEBI Board meeting: Key amendments for REITs and InvIT investments, VC, MFs and MIIs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Market Regulator SEBI, in its board meeting, approved a series of amendments around REITs and InvITs investments, venture capital (VC) funds, mutual funds, and market infrastructure institutions (MIIs). The decision was taken in SEBI’s 205th board meeting. This is the second board meeting after March 15.

Here’s a list of all important announcements from the SEBI board meeting today:

SEBI on REITs & InvIT investments

SEBI, in its board meeting, approved the proposal to provide a framework for Unit Based Employee Benefit (UBEB) schemes for the employees of investment manager/manager of InvIT/REIT. The investment manager can now receive units of InvIT/REIT in lieu of management fees, for the purpose of providing unit-based employee benefits. Such units shall be allotted directly to the Employee Benefit Trust so that these units are used exclusively for the UBEB scheme.

Flexibility to venture capital funds

SEBI has allowed some relaxations for Venture Capital Funds wanting to migrate to the new SEBI (Alternative Investment Funds) Regulations, 2012 (‘AIF Regulations’) and have not been able to fully liquidate their positions before doing so. Such VC funds will have the option to migrate into AIF Regulations and avail the facilities available for such AIFs to deal with unliquidated investments.

Level-playing field for passive mutual fund equity schemes

To create a level playing field for all mutual fund equity schemes, SEBI has approved amendments to allow equity passive schemes, on indices to be specified by SEBI, to take exposure up to the weightage of the constituents in the underlying index. This exposure would be subject to an overall cap of 35% investment in the group companies of the sponsor.

Currently, mutual fund schemes are not allowed to invest more than 25% of their net asset value (NAV) in group companies of the sponsor. This restricts the passive funds from effectively replicating the underlying index, in cases where group companies of sponsor comprise more than 25% of the index. This also puts such AMCs at a relative disadvantage as compared to other AMCs who may not have a sponsor group of companies comprising more than 25% in the underlying index.

Institutional mechanism for deterrence of potential market abuse including front-running at AMCs

Considering the recent front-running instances observed by SEBI, the market regulator approved amendments to mutual funds regulations for enhancing the existing regulatory framework by requiring Asset Management Companies (AMCs) to put in place a structured institutional mechanism for identification and deterrence of potential market abuse including front-running and fraudulent transactions in securities. The mechanism shall consist of enhanced surveillance systems, internal control procedures and escalation processes to identify, monitor and address specific types of misconduct including front running, insider trading, and misuse of sensitive information. In this regard, SEBI has also approved amendments to the Regulations to a) enhance responsibility and accountability of management of AMCs for such an institutional mechanism; and b) foster transparency by requiring AMCs to have a whistle-blower mechanism.

SEBI also approved an exemption to the requirement of recording face-to-face communication, including out-of-office interactions, during market hours. This exemption would be applicable after implementation of the institutional mechanism by the AMCs

Ease of doing business for market infrastructure institutions (MIIs)

SEBI, in its board meeting, also approved a slew of measures to ease out compliance requirements for MIIs like exchanges, depositories and clearing corporations.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IndiGo will be able to fly directly from Patna to Paris, says CEO Pieter Elbers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

IndiGo CEO Pieter Elbers on Tuesday (April 30), said that the airline will be able to directly connect Patna to Paris and Delhi to Southern Europe with the wide-body A350 and narrow-body A321 XLR planes that will join its fleet in the coming years.

Replying to questions in the analyst call on the recent Airbus A350 order, Elbers stated that the order for 30 wide-body planes is sizable enough to make an impact in a new space and scale up later.

Talking about the Airbus narrow-body A321 XLR that is expected to start arriving in 2025, Elbers said, “The (A321) XLR will help us to make sure that we can further extend our range. We can reach from Delhi to the southern part of Europe, which cannot be reached today. So it helps us extend our range. But it also helps us to increase the number of routes.”

“These recent expansions that we have done, be it Mumbai to Nairobi or Bangalore to Bali, are all limited by today’s capabilities of the LR. The XLR will help us expand those openings to more cities in India,” Elbers added.

IndiGo‘s huge order of 500 Airbus narrow-body planes announced in June 2023 includes 69 A321-200NY (XLR)s.

Airbus claims the A321 XLR is an Xtra Long Range plane with a range of 4,700 nautical miles (nm), 180–220 seats and 30% less fuel. It opens new opportunities for non-stop, 11-hour flights linking primary and secondary cities all around the globe.

The narrow-body plane can enable airlines to connect distant destinations such as New York to Rome, London to Vancouver, Delhi to London and Sydney to Kuala Lumpur.

The direct connectivity to longer routes that Pieter Elbers is talking about is expected with the wide-body Airbus A350-900, which accommodates 300–350 passengers in a standard three-class configuration and flies non-stop from short-range segments to ultra-long-range routes of up to 9,700 nm (18,000km).

“Clearly, the A350 will have even more range and bring different opportunities, and part of the world will be able to connect directly to India. And a lot of that traffic today is connecting to other parts of the world and we feel that it could connect to India. I shared a few examples—Patna to Paris is a great way to connect India on IndiGo in the future to the rest of the world,” the IndiGo CEO said.

While IndiGo has not yet decided the exact configuration of the two planes and the routes it wants to fly them to, the IndiGo CEO clarified that since the A321XLR has a narrow body with a limited number of seats, it can fly to the “thinner” markets and the A350 can be used for the “larger” markets.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Kotak Mahindra Bank’s joint managing director KVS Manian resigns

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Private sector lender Kotak Mahindra Bank on Tuesday (April 30) said KVS Manian has resigned as Joint Managing Director of the bank effective immediately.

“…please note that Krishnan Venkat Subramanian (KVS Manian), ceases to be the Whole-time Director designated Joint Managing Director, with immediate effect on account of his resignation considered, noted and accepted at the above referred Board Meeting,” the lender said in a regulatory filing.

“Consequently, KVS Manian ceases to be a Director and a Key Managerial Personnel of the Bank,” the bank said.

In February this year, CNBC-TV18 reported that Federal Bank shortlisted Kotak Mahindra Bank’s KVS Manian as a Chief Executive Officer (CEO) candidate.

According to sources, the bank has listed two internal candidates for the Managing Director (MD) and CEO roles. The bank is expected to submit three names to the Reserve Bank of India (RBI) for approval. The process is part of the succession planning at the Kochi-headquartered bank.

Shares of Kotak Mahindra Bank Ltd ended at ₹1,623.75, down by ₹16.50, or 1.01% on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Lok Sabha Elections 2024: ECI releases voter turnout — Phase 1 at 66.14%, Phase 2 at 66.71%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Election Commission of India (ECI) has finally released the overall voter turnout data for the first and second phases of the Lok Sabha elections. According to official data, in the first phase, a voter turnout of 66.14% was recorded, while in the second phase, it increased slightly to 66.71%.

This turnout has been recorded across 102 parliamentary constituencies (PCs) in the first phase and 88 PCs in the second phase. The turnout for registered third-gender voters stood at 31.32%. Comparatively, in the 2019 polls, the turnout in the first phase was 69.43%.

According to the data provided by the ECI, the voter turnout in the first phase was 66.22% for male, 66.07% for female, and 31.32% for third-gender voters, resulting in an overall turnout of 66.14%. In the second phase held on April 26, the turnout was 66.99% for male, 66.42% for female, and 23.86% for third-gender voters, with an overall turnout of 66.71%.

Bihar recorded the lowest voter turnout of 49.26% in the first phase, while Uttar Pradesh recorded the lowest (55.19%) in the second phase.

The EC highlighted that out of the 21 states and union territories that went to polls in the first phase, 11 recorded a higher turnout of women voters — Arunachal Pradesh, Assam, Jammu and Kashmir, Lakshadweep, Manipur, Meghalaya, Nagaland, Puducherry, Tamil Nadu, Uttarakhand, and West Bengal.

In the second phase, where 13 states and UTs went to polls, six registered a higher women voter turnout — Assam, Bihar, Jammu and Kashmir, Uttarakhand, Kerala, and West Bengal.

The final turnout, the EC clarified, would only be available post-counting with the counting of postal ballots and its addition to the total vote count. This includes postal ballots given to service voters, absentee voters, those above 85 years of age, persons with disabilities, those on essential services, and voters on election duty.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Elon Musk sacks entire Supercharger team in a bid to be ‘hardcore’ about cost reduction

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Tesla CEO Elon Musk has eliminated the company’s entire Supercharger team, including senior director Rebecca Tinucci. The move, confirmed by leaked internal emails, has raised concerns within the company and the EV industry.

Tinucci, the company’s most senior female executive, and an estimated 500 Supercharger employees were dismissed. This action follows similar patterns to Musk’s layoffs at Twitter and recent company-wide job cuts at Tesla.

Confirmed – @Tesla @elonmusk has let our entire charging org go. What this means for the charging network, NACS, and all the exciting work we were doing across the industry, I don’t yet know. What a wild ride it has been.

— willjameson (@willjameson) April 30, 2024

The decision is surprising given the Supercharger network’s importance to Tesla’s success and its role in reducing range anxiety for EV customers. Analysts and industry experts have expressed concerns about the move, especially with other automakers now adopting Tesla’s charging standard.

This development comes just weeks after Tinucci presented Tesla’s Supercharger strategy at Investor Day.

Musk has also fired another senior executive, Daniel Ho, head of new products, in a continued round of job cuts attributed to poor sales, reports The Information. Ho and affected employees were notified via email.

CEO Elon Musk’s email emphasised cost reduction, stating, “We need to be absolutely hardcore about headcount and cost reduction.” Additionally, Tesla’s public policy team, previously led by Rohan Patel, has been dissolved. Patel left the company shortly before Musk cancelled a planned trip to India, where Tesla’s market entry was anticipated.

Also read: Tesla’s Full Self-Driving system gears up for China, intensifying global autonomous vehicle race

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow