India’s media, entertainment industry to be fastest growing globally; to hit Rs 4 lakh cr by 2025: Report

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

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The country’s media and entertainment (ME) sector will be the fastest growing globally in terms of both consumer and advertising spends, and will be an over-Rs 4-lakh-crore industry by 2025, a consultancy said on Monday.

The sector is estimated to clock a compounded annual growth rate (CAGR) of 10.75 percent in the next four years to be a Rs 4,12,656-crore industry by 2025, PwC said in a report.

“Despite the pandemic, the Indian entertainment and media sector has shown remarkable resilience,” the consultancy’s partner Rajib Basu said adding that India will be the fastest-growing entertainment and media market globally in terms of consumer and advertising revenue. Technological advancement and deepening of internet access will continue to influence the way Indians consume content, he said adding that there will be more appetite for localised content, and newer business models will also evolve.

TV advertising grew to Rs 35,015 crore in 2020 despite the pandemic and will expand at the rate of 7.6 percent to contribute over Rs 50,000 crore to the overall pie, it said. Advertising on the internet is expected to grow at a faster clip of 18.8 percent per annum during 2020-2025 to over Rs 30,000 crore by the end of the cycle, it said.

The report added that the revenue from mobile internet advertising in India was Rs 7,331 crore in 2020, and will rise to Rs 22,350 crore by 2025, showing a 25.4 percent increase. The newspaper and consumer magazine industry is, however, estimated to grow at a much lower clip of 1.82 percent to Rs 26.299 crore by 2025, it said adding that print advertising revenues fell 12 percent and print circulation revenue was down by 4 percent in 2020 due to the pandemic in 2020.

Box-office revenue is expected to recover and grow at a CAGR of 39.3 percent to Rs 13,857 crore by the end of 2025, it said. PwC added that the cinema industry which has been deeply hit by the pandemic will be back to pre-pandemic levels by mid-2023.

India’s total music, radio and podcasts market revenues dropped in 2020 to Rs 4,626 crore, as the pandemic stripped almost Rs 522 crore from the country’s live music sector, it said. The overall music, radio and podcast industry will grow 19.1 percent per annum to reach Rs 11.026 crore in 2025, the consultancy added.

Video games and e-sports revenue reached Rs 11,250 crore in 2020 and is set to expand to Rs 24,213 crore in 2025, at an annual growth rate of 16.5 percent, it said.

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SC verdict: Banks explore option of invoking personal guarantee of promoters

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

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Armed with Supreme Court order, banks may invoke personal guarantees of tycoons ranging from Venugopal Dhoot to Kapil Wadhawan to recover unpaid loans from their delinquent firms, sources said Monday.

According to an estimate, the top 10 personal guarantors have guaranteed debt of over Rs 1.6 lakh crore. Among the big names, former promoters of Bhushan Steel and Power Sanjay Singhal and his wife Aarti Singhal had furnished personal guarantees worth up to Rs 24,550 crore to take loans from a consortium of bank-led by State Bank of India (SBI).

The former promoter of Reliance Communications, Anil Ambani, has also given a personal guarantee against the loan taken. Erstwhile promoter Wadhawan stands guarantee to loans taken by DHFL, which is sitting on a debt of about Rs 90,000 crore, while Dhoot has also given a personal guarantee to a portion of Rs 22,000 crore loan to Videocon.

The Supreme Court in May had held that the November 15, 2019 government notification allowing creditors, usually financial institutions and banks, to move against personal guarantors under the Insolvency and Bankruptcy Code (IBC) was ‘legal and valid’.

Post the judgement, a senior official of a public sector bank said banks are assessing the level of involvement of those directors who pledged their personal guarantee against the loan.

After the assessment, another banker said, banks would move National Company Law Tribunal (NCLT) for invoking personal guarantee as part of the recovery process.

The official said banks have started receiving calls from some of the promoters for exclusion of their personal guarantee from the non-performing assets. Some of them are coming forward to resolve bad loans to save their personal wealth.

Most of the promoters thought that once their case is admitted under IBC, their past sins and obligations cease, the official said. However, the order has generated fear among the promoters and directors who pledged their personal guarantee of losing their personal wealth as part of the resolution process, the official said, adding, the personal guarantee angle would expedite the resolution process as the guarantor stands at risk of losing personal property.

The creditor-debtor relationship has got a leg up and this will minimise chances of default in the future. The concept of ‘guarantee’ is derived from Section 126 of the Indian Contracts Act, 1872. A contract of guarantee is made among the debtor, creditor and guarantor.

If the debtor fails to repay the debt to the creditor, the burden falls on the guarantor to pay the amount. The creditor reserves the right to begin insolvency proceedings against the personal guarantor if the latter does not pay. Usually, promoters of big businesses submit personal guarantees to creditors to secure loans and assure repayment.

During the hearings, the government had justified the November 2019 notification extending bankruptcy proceedings to personal guarantors. Attorney General K K Venugopal argued that by roping in guarantors, there was a greater likelihood that they would arrange for the payment of the debt to the creditor bank in order to obtain a quick discharge

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Canada Pension Plan Investment Board invests $800 mn in Flipkart Group as part of $3.6 bn funding

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

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Canada Pension Plan Investment Board (CPP Investments) on Monday said it has invested $800 million (about Rs 5,968 crore) in the Flipkart Group. This is part of a larger $3.6 billion funding raised by the homegrown e-commerce major.

“One of the key investment themes for CPP Investments has been Asia’s domestic consumption. We believe India will be a leading source of global growth in the decades ahead, supported by positive demographics, a growing middle class and deepening Internet penetration, Agus Tandiono, Managing Director, Head of Fundamental Equities Asia at CPP Investments, said. Tandiono added that this investment in Flipkart builds on its programme to provide long-term capital to industry leaders.

“We look forward to supporting Flipkart’s efforts in growing India’s e-commerce market,” Tandiono said. Earlier in the day, Flipkart said it has raised $3.6 billion (about Rs 26,806 crore) in funding for a valuation of $37.6 billion, with its main owner Walmart joining SoftBank and several sovereign wealth and pension funds. Tencent Holdings Ltd, Blackstone Group-backed Antara Capital, Abu Dhabi’s sovereign fund ADQ, Singapore’s GIC Pte and Qatar Investment Authority and Canada Pension Plan Investment Board participated in the funding round.

Canada Pension Plan Investment Board is a professional investment management organisation that manages the Fund in the best interest of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income.

Headquartered in Toronto, CPP Investments has offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, Sao Paulo and Sydney. On March 31, 2021, the Fund totalled 497.2 billion Canadian dollars. “This investment by leading global investors such as CPP Investments reflects the promise of digital commerce in India, and their belief in Flipkart’s capabilities to maximise this potential for all stakeholders, Flipkart Group Chief Executive Officer Kalyan Krishnamurthy said.

He added that as the organisation serves its consumers, it will focus on accelerating growth for millions of small and medium Indian businesses. “We will continue to invest in new categories and leverage made-in-India technology to transform consumer experiences and develop a world-class supply chain, he said.

Founded in 2007, the Flipkart Group includes Flipkart, fashion specialty site Myntra and Ekart (logistics and supply chain arm). The Group is also a majority shareholder in digital payments platform, PhonePe.

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Virgin Galactic files for $500 mn stock sale, shares tumble a day after Branson’s successful flight into space

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

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Virgin Galactic Holdings Inc on Monday filed to sell up to $500 million in common stock, a day after the company completed its first fully crewed test flight into space with billionaire founder Richard Branson on board.

Shares in Virgin Galactic reversed premarket gains of 8% to trade down nearly 12%, wiping off more than $1 billion from the company’s market capitalization following the share sale announcement.

The sale would account for up to 4% of Virgin Galactic’s total outstanding shares as of their last close, according to a Reuters calculation.

Branson’s trip upstaged rival astro-tourism venture Blue Origin founded by Jeff Bezos, the former chief executive officer of Amazon.com Inc, who is slated to fly to space on July 20 along with his brother, Mark.

The rivalry popularized as the “billionaire space race” also includes SpaceX CEO Elon Musk and is underpinned by optimism that space travel will become mainstream with technological advancements and falling costs. Swiss investment bank UBS estimates space tourism could be a $3 billion annual market by 2030.

That sentiment has also led to shares in Virgin Galactic surging nearly 84% so far this year.

A Virgin Galactic spokesperson on Sunday told the Wall Street Journal that Musk had bought a ticket for his own space ride with Branson’s company.

Virgin Galactic has said it plans at least two further test flights of the spaceplane in the months ahead before beginning regular commercial operation in 2022.

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Online KYC fraud: SBI alerts customers, tweets safety tips

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

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The State Bank of India (SBI), the country’s largest public sector bank, has alerted its customers against online fraud. This alert comes in the background of several instances where Know Your Customer (KYC) frauds have occurred across India. The bank has confirmed the problem is for real and has to be dealt with.

“KYC fraud is real, and it has proliferated across the country. The fraudster sends a text message pretending to be a bank/company representative to get your personal details. Report such cybercrimes here: http://cybercrime.gov.in,” read the tweet.

In the tweet, the bank has also shared three safety tips for customers:

1. Think before you click any link
2. The bank never sends links to update the KYC
3.  Do not share your mobile number and confidential data with anyone

KYC fraud is real, and it has proliferated across the country. The fraudster sends a text message pretending to be a bank/company representative to get your personal details. Report such cybercrimes here: https://t.co/3Dh42iwLvh#StateBankOfIndia #CyberCrime #StaySafeStayVigilant pic.twitter.com/eVVFAnMgTN

— State Bank of India (@TheOfficialSBI) July 12, 2021

The bank took up this initiative after Chinese hackers recently targeted SBI customers. According to reports, the hackers asked the customers to use a particular link to update their KYC. In order to lure the customers, they sent a WhatsApp message promising gifts of up to Rs 50 lakh.

The hackers pretended that it was a KYC campaign by SBI. The overall landing page was also similar to that of SBI, but instead of the official bank website it was hosted on a third-party domain.

Two months ago, Airtel had issued a statement in this regard saying, “Anyone who calls or sends an SMS claiming to be from Airtel in regard to an incomplete KYC form should be preferably ignored. If anybody asks to install an ‘Airtel Quick Support’ app from the Google Play store it must be verified first.”

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Maserati to throttle in tier-II and tier-III cities

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

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Italian luxury car manufacturer Maserati on Monday said it will focus on emerging markets in India, as smaller tier-II and II cities fuel demand for luxury cars.

“Over the past few years, smaller cities like Mangalore, Jaipur, Chandigarh, Ahmedabad, Bhopal, Goa, among others, have shown an increase in demand for luxury vehicles,” said Bojan Jankulovski, head of India operations for Maserati.

In an interview with CNBC-TV18, Jankulovski said the company is foreseeing a sizable surge in demand and while focusing on traditional metros, the company will also try to drive sales in tier II and III markets in 2021 and 2022.

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The carmaker is gearing up for a product offensive in India with the launch of the Maserati MC20. The super sports car with the new V6 engine will be launched by March next year.

The Levante and Quattroporte are likely to be launched soon, with the Levante launch expected in the coming weeks. Powered by the V8 engine, Levante is one of the fastest SUV’s with a top speed of 304 km/hour.

Speaking about the company’s plans to roll out electric vehicles in India, Jankulovski said Maserati took a major step forward in its strategy for electrification, with the Ghibli Hybrid.

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“The India launch of Levante Hybrid is expected in Q4 2021. The Levante Hybrid SUV combines the 4 cylinder, 2 litre engines with a 48-volt Hybrid system to recover energy during deceleration and braking”, he said. Maserati will also be bringing the fully electric GranTurismo and GranCabrio to India in the future.

While India is a key part of Maserati’s regional and global strategy, the company has no plans of manufacturing vehicles in the country and will continue to utilise its plant in Modena, Italy to cater to India and other markets.

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

First Redmi 5G phone, Note 10T, to debut in India on July 20; all details here

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

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Xiaomi is all set to launch its Redmi Note 10T 5G in India on July 20. The launch event will be live-streamed via Xiaomi’s YouTube and social media handles. It will be Redmi India’s first 5G smartphone, said Xiaomi Global VP Manu Kumar Jain on Twitter. “RedmiNote10T5G is launching on July 20. The #FastAndFuturistic experience is now going to go mainstream,” he tweeted, adding, this “will help accelerate 5G adoption in India!”

Excited for @RedmiIndia‘s 1st ever #5G smartphone! 🚀

👉 #RedmiNote10T5G is launching on 20.07.21. The #FastAndFuturistic experience is now going to go mainstream!

This #RedmiNote will help accelerate 5G adoption in India! 🇮🇳

Get notified: https://t.co/tve1IwEy6E

I ❤️ #Redmi pic.twitter.com/WmNgppvs6G

— Manu Kumar Jain (@manukumarjain) July 12, 2021

This is the fourth smartphone in the Redmi Note 10 series after Redmi Note 10, Note 10 Pro and Note 10 Pro Max, launched in the country in March. The phone is expected to go on sale online on Amazon and the company website Mi.com shortly after its launch next week. The Redmi Note 10T 5G debuted in Russia last month.

Xiaomi has created a dedicated microsite to showcase the design of the smartphone ahead of its official debut. Amazon too teased the India launch of the Redmi Note 10T last week.

The price of the Redmi Note 10T in India is yet to be revealed. In Russia, its 4GB RAM + 128GB storage variant costs 19,990 roubles, which is around Rs 20,000 in India.

The smartphone will be powered by an octa-core MediaTek Dimensity 700 chipset with up to 6GB of RAM. The Note 10T 5G has up to 128GB of onboard storage.  As far as the battery is concerned, the phone is expected to carry a 5,000mAh battery with 18W fast charging.

The Redmi Note 10T 5G runs on Android 11 with MIUI on top. It will come with a 6.5-inch full HD+ 1,080 X 2,400 pixels screen with a 90Hz refresh rate.

For connectivity, it also has a 4G LTE option along with 5G. Besides, it has Wi-Fi, Bluetooth v5.1 and NFC connectivity options. It uses USB Type-C and a 3.5-mm headphone jack.

The camera is everyone’s point of interest when buying a smartphone. In this new device by the Chinese phone maker, there is a triple camera set-up at the back — a 48-megapixel primary sensor with an f/1.79 lens, a two-megapixel macro shooter and a two-megapixel depth sensor. For selfies, there is an eight-megapixel front camera.

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