Tag: Views

View: The curious case of insolvency battle over Rasna

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

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On an application filed by a company that provided transportation services to Rasna Pvt. Ltd, the National Company Law Tribunal (NCLT) at Ahmedabad passed an order directing the commencement of insolvency proceedings against Rasna. This may not have been an event of note, in usual course, but it came under the limelight owing to the fact that most of us growing up, or even now, enjoyed Rasna’s products which became a brand name eponym for summer beverages in India.

Now, as per provisions of the Insolvency and Bankruptcy Code, 2016, (IBC) Rasna had a right to appeal before the National Company Law Appellate Tribunal (NCLAT), which it duly did. Before the appeal could be heard, Rasna received a communication from the Resolution Professional appointed to take charge of the company asking it to not operate its bank accounts etc. While this is a routine correspondence, Rasna approached the Gujarat High Court by filing a writ petition asking for a stay on the NCLT order, even though it had already filed an appeal in NCLAT and presumably would have sought a stay of the NCLT order in its appeal as well.

Extraordinarily, the high court passed an order granting interim relief staying the NCLT order till the time NCLAT heard the statutory appeal. I use the term ‘extraordinarily’ because high courts are reluctant to interfere with judicial orders where another forum has statutory jurisdiction to sit in appeal. It is a self-imposed judicial restriction even though Articles 226 and 227 of the Indian Constitution grant High Courts very wide powers to issue appropriate orders, with Article 227 specifically granting the power to quash judicial orders from subordinate courts within a high court’s territorial jurisdiction.

This is not the first time that a high court has interfered with orders of NCLT passed under IBC. In another high-profile case, the Karnataka High Court in 2019 stayed similar insolvency proceedings initiated against Flipkart India Pvt. Ltd. despite an alternate remedy of appeal under IBC having been available to it. The stay was issued as Flipkart had raised issues related to the jurisdiction of the NCLT in the case, and subsequently, it had filed and succeeded in appeal before NCLAT. Coincidentally, both cases had been filed by operational creditors (vendors) against the companies and not by lenders.

Some statutes, like the ones pertaining to debt recovery and enforcement of securities by banks and financial institutions, specifically bar the jurisdiction of civil courts. In that regard, even the Supreme Court of India has consistently held that high courts should desist from entertaining writ petitions challenging such recovery or enforcement actions as the relevant statutes bar intervention of other courts and there exists a hierarchy of tribunals and courts to to take care of aggrieved parties. However, despite there being a similar bar against civil courts from exercising jurisdiction under IBC, there is no judgment from the Supreme Court restraining high courts from exercising their writ jurisdiction.

Arguably, and as the law on this aspect is not settled yet, high courts can exercise writ jurisdiction under Articles 226 and 227 of the Constitution against NCLT orders if an issue of jurisdiction to pass such orders under IBC is raised by an aggrieved party before a high court. If an aggrieved person is able to demonstrate perversity in any order by NCLT then a high court may interfere in the interest of justice. Even in Rasna’s case, the interim stay order was passed to protect it till the company was able to get a hearing before the NCLAT.

Secondly, while NCLAT is the statutory Appellate Tribunal under IBC, it has not been granted supervisory powers over NCLTs. Occasions may arise where the NCLT may deviate from, or act contrary to, the procedure laid down under IBC. In such cases, the territorial high court would have jurisdiction to issue writs against such errant benches of the NCLT. Similarly, delay in the disposal of cases or interlocutory applications by the NCLT may not result in a judicial order that can be appealed under IBC. In such a scenario an aggrieved party cannot be left remediless, and it would be appropriate for a High Court to exercise writ jurisdiction to ensure speedy disposal by the NCLT, as it would be an effort to meet the ends of justice. This power becomes especially relevant now when the NCLT is over-burdened with cases which ends in a delay in conforming to statutory timelines under IBC. Such delays defeat the purpose for which the IBC was enacted, and it would not be out of place for high courts to interfere in appropriate cases.

I would like to conclude with a caveat that while high courts have powers to interfere with NCLT orders, they should only do so in extraordinary cases where non-interference would result in defeating the purpose of IBC, or cause a miscarriage of justice.

—Chitranshul Sinha is Partner at Dua Associates – Advocates & Solicitors. The author was not arguing for or adivising any of the parties for this case. Views 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

View | Digital Personal Data Protection (DPDP) Act, 2023: A step towards bridging the digital divide

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

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“If you talk to a man in a language he understands, that goes to his head. If you talk to him in his language, that goes to his heart.” — Nelson Mandela

Language is one of the founding pillars of civilisation. It is the essence of culture, helping to build communities, relationships, intellectual capital and trust, among other things. However, while a language can unite people, it can also alienate those who do not speak it. Especially in the digital world.

According to a joint report by industry body IAMAI and market data analytics firm Kantar, ‘Internet in India Report 2022’, more than half of India’s population — 759 million citizens — actively used the internet and accessed it at least once a month in 2022. The report further states that 399 million of these active users are from rural India, which is higher than the 360 million users from urban India. Thus, rural India appears to be driving internet growth in the country.

While increased internet penetration is an encouraging sign, it is equally important to bridge the digital divide. The Organisation for Economic Co-operation and Development (OECD) defines digital divide as “the gap between individuals, households, businesses and geographic areas at different socio-economic levels with regard to both their opportunities to access information and communication technologies (ICTs) and to their use of the Internet for a wide variety of activities”. Therefore, when we talk of a digital gap, merely having access to a device or the internet is not enough. There needs to be equity in terms of information access and the ability to use that information in the right manner.

This is a major challenge, with the UN Deputy Secretary-General Amina Mohammed stating that the digital divide has the potential to be the “new face of inequality”.

In my opinion, one of the primary reasons for the growing digital divide in India is the limited use of languages apart from English. According to the last Census done in 2011, only approximately 10.6 percent of Indians spoke English. While this figure may have improved a bit since, there is clearly a case for multilingualism to bridge the digital divide, combined with concerted measures to build a multilingual digital ecosystem in the country.

The enforcement of multi-language options in the areas of consent and notice in the recently passed Digital Personal Data Protection (DPDP) Act, 2023, is a significant move towards mainstreaming multilingualism across digital platforms.

The act states that every request for consent under its provisions or rules made thereunder shall be presented to the data principal (owner of personal data, people like you and me) in clear and plain language, giving one the option to access such a request in English or any of the 22 languages specified in the Eighth Schedule to the Constitution. Requests made to a data principal for obtaining consent shall be accompanied or preceded by a notice given by the data fiduciary to the data principal, informing them about:

1. The personal data and the purpose for which the same is proposed to be processed.
2. The manner in which they may exercise their rights
3. The manner in which the data principal may make a complaint to the Board, in such manner and as may be prescribed.

Data principals have the choice to opt for English or any of the 22 languages specified in the Eighth Schedule to the Constitution.

Not only is this provision path-breaking, but also presents many opportunities for individuals and businesses alike.

Offering multi-language options can promote inclusivity and accessibility, allowing more people in India to access information as well as services. Many countries have implemented multi-language options to promote inclusivity and accessibility. For instance, countries like Canada, Switzerland and Singapore have embraced multiple languages due to their diverse populations. This can help bridge linguistic barriers and foster a more progressive and diverse society. Close to home, UPI, which gives users the option to receive voice messages and alerts in one’s preferred language, is one example of digital empowerment. Such innovations can help in bridging the digital gap and bring about a paradigm shift in the way businesses function.

Localisation is the way to go for businesses. A multilingual approach can help businesses expand market reach, attract a wider customer base, and facilitate business transactions. It can build credibility and thereby build brand loyalty.

Some sectors will benefit from it more than others — for instance, e-commerce, a market that is expected to reach $111 billion by 2024 and $200 billion by 2026, according to the India Brand Equity Foundation. The rural Indian market is critical to this projected growth of e-commerce in India and is also significant from the standpoint of Atmanirbhar Bharat. Using language to enable rural consumers to make more informed decisions and further build their confidence is imperative.

Effective communication is key to building trust, and communication can be effective only if the audience can comprehend it. If people don’t understand English, they need to be communicated with in their preferred language.

In today’s world, such digital inclusivity is a significant step toward social inclusivity and equity. Initiating a discourse around creating a robust digital communication roadmap for all citizens of the country, in their language of choice, should be a priority. It is heartening to see some concrete measures being taken to build a multilingual economy so that India can harness its linguistic dividend.

— Sivarama Krishnan is Partner & Leader — Risk Consulting, PwC India, and Leader, APAC Cybersecurity & Privacy, PwC. Views expressed herein 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

View | First-quarter GDP at 7.8% is not as strong as it seems at first glance

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

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India’s first-quarter Gross Domestic Product (GDP) at 7.8 percent gives us more reason to argue that ours is the fastest-growing large economy. But an equally important test of growth is whether we are growing as well as, or better than, our own previous or pre-COVID pace, and here the answer is still “no”. There are red flags thrown up from the fine print of the Q1 GDP numbers and other data.

But first, the positives: The financial sector stands out with the “Financial, Real Estate and Professional Services” cluster growing at 12.2 percent over the 8.5 percent a year ago. Likewise, the construction sector, with 7.9 percent, has clocked its fifth straight quarter of robust growth, thanks primarily to increased central and state government capital spending.

The disappointment comes from agriculture and manufacturing. Rabi harvest was normal despite some unseasonal rains in February. Forecasters projected at least a 4 percent growth, but it came in at just 3.5 percent. Likewise, Q1 corporate results were good, and manufacturing was expected to post at least a 7-8 growth. The 4.7 percent that came in for this sector was a shocker.

FIRST-QUARTER GDP — THE BIG NUMBERS

“Trade, hotels, transport communication and broadcast”, a large services sector accounting for 15-18 percent of the GDP, grew by 9.2 percent, over the 25.7% a year ago. At first glance, this sounds impressive. But most economists had pencilled in a 12-13 percent growth, simply because this segment had been maimed seriously during the pandemic in 2020,  and hasn’t even caught up with its pre-COVID level. The total output produced by this sector in April-June was Rs 6.49 lakh crore; in the corresponding period in 2019 (pre-pandemic), the output from this sector totalled Rs 6.6 lakh crore.

Clearly, over four years, this essentially labour-intensive sector has seen zero growth.

GDP, measured from the expenditure side, shows two huge positives. Private final consumption expenditure is up 5.9 percent, up from 2.8% in the fourth quarter of last fiscal, and 2.1% percent in the third quarter of the same fiscal. This pick-up portends well, especially because it is also accompanied by continued robust growth in gross fixed capital formation at 7.9 percent, which, while lower than the previous four quarters, still indicates that capital spending remains robust.

That said, one can’t ignore that the growth of the overall economy has not been able to overcome the gap caused by the COVID quarters. Here are two data points — Q1 GDP output is historically lower than Q4 since the first three months of the year months are India’s strongest, with friendlier weather and a zeal to hit targets by March. April, May, and June, on the other hand, are the start of the slack season with extreme heat and then rains sapping output and stalling construction work.

Pre-COVID, Q1 GDP output used to be 2-4 percent lower than the preceding quarter. But post-COVID, Q1 output has been 7-8 percent lower. That was the case this year too — the Q1 GDP output at Rs 40.3 lakh crore is 7.5 percent lower than the fourth-quarter output at Rs 43.61 lakh crore. This seminal fall is worrying.

Likewise,  Even if one compares April-June 2023 with April-June 2019 (pre-COVID), the GDP output has grown from Rs 35.49 lakh crore to Rs 40.37 crore, a growth of 13.7% percent, which works out to a four-year compounded annual growth of just over 3 percent.

There are other telltale signs of a slowdown: the April July-2023 gross tax receipts are up only 2.8% percent; the February budget estimates had pencilled in a 10.4 percent growth. Income tax collections for July 2023 are even lower than in July 2022. Secondly, credit growth in July (excluding HDFC) is down to 14.8 percent versus 18.7 percent in June.

The impact of RBI’s rate hikes, and more recently,  liquidity tightening, the increasing likelihood of El Niño and food grain shortages and most importantly, possible slowdown in the global economy, can add further headwinds to growth.

In all probability, the RBI, in its next policy, may have to revise its GDP forecast downward from the current 6.5 percent to 6.2 percent or thereabouts.

Also read: India to achieve 6.5% GDP growth in FY24 and maintain fiscal deficit target of 5.9%, says CEA

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

View | AI technology innovations in smartphones revolutionise the mobile experience

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

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Beckon the Google Assistant on your phone, hum a tune, and ask it to recognise the song. You will be surprised by how accurate the answer is. Then, use Google Lens on your device to identify a pair of sneakers or an outfit. In response, your smartphone will quickly search the internet to instantly display the product’s details, including its price and where you can buy it.

Impressive, isn’t it? This ladies and gentlemen, is the Artificial Intelligence built into your device that puts the “smart” into your smartphone.

According to a 2023 report by Exactitude Consultancy, the global mobile AI market size is projected to grow to a whopping $80.28 billion by 2029, at a staggering rate of 28.5 percent every year.

But AI is not new. You have been using it on your smartphone for years. Ever wondered how your keyboard’s predictive text function is always one step ahead of you? Simple. It uses AI and learns your typing patterns, vocabulary, and phrasal use to complete your sentence even as you are typing it.

What is not so simple are the algorithms that work behind the scenes—trained on massive datasets, your text inputs, and usage patterns—to constantly improve and refine their recognition capabilities through machine learning techniques.

With AI as your smartphone’s secret weapon, you are armed with an extraordinary device that works hard to make your life simpler.

Take a day in your life; you wake up in the morning and say, “Ok Google, what’s the weather like today?” The algorithms on your phone are smart enough to consider your location to provide you with the most accurate forecasts it can pull from the Internet.

Your handset is like having your own personal butler; it understands context, and natural language, answers questions, sets reminders, and so much more.

Indeed, Alan Turing—the father of AI—would have been amazed by how far we have come since 1950 when he postulated the Turing Test for machines – essentially, its ability to exhibit intelligent behaviour equivalent to, or indistinguishable from, that of a human.

Smartphones, nowadays, like humans, are trained to recognise you with an accuracy that was unimaginable a decade ago. Your device uses sophisticated facial recognition algorithms to analyse features like the distance between your eyes, the depth of your eye sockets, the distance from forehead to chin, the shape of your cheekbones, and the contour of the lips, ears, and chin before it even unlocks your handset – and it does this in milliseconds. These algorithms even compensate for changes in appearance, such as a new hairstyle or a beard.

But wait, there’s more! Facial recognition systems do not just recognise your face; they have evolved to detect a real live person—by reading micro-movements and more—so they cannot be fooled by a static photograph.

Speaking of photographs, AI even powers the camera on your handset. When you snap a portrait photo, it identifies the human subject, separates them from the background, applies a few beautification algorithms, and then blurs the background to give it that sweet DSLR-like bokeh effect.

With AI’s keen eye, your smartphone recognises when you are snapping pictures of food, sunsets, quick-moving objects, pets, children and landscapes to produce the best possible image by automatically adjusting camera settings. Smarter algorithms can detect skin tones, the sex of the subject, and even their age to apply appropriate beautification filters.

The smarts built into your device not only recognise you; they can also help you to get to where you want to be. Google Maps allows you to input destinations or search nearby places using voice commands. You can say things like “Find the nearest coffee shop” or “Navigate to the Red Fort”, and the intelligent navigation system will provide you with directions with traffic data that it has culled from other map users. And when you are driving, AI-powered voice-recognition systems enable hands-free operation that allows you to make calls, dictate messages, and even search the web simply by speaking to your devices.

And here’s where it gets even more fascinating. Through the power of machine learning, your smartphone evolves and learns with every interaction. It refines its understanding of different accents and even dialects.

When you’ve had a long day—commuting out and about—AI even kicks in to conserve your device battery. Call it self-preservation if you please. Modern smartphones offer a battery-saver mode wherein algorithms optimise system performance, reduce background activity, and limit features to extend battery life. You can activate this mode when your battery is running low to ensure your device lasts longer until you can recharge it. With the power of AI and machine learning, algorithms learn our habits, identify energy-draining apps or processes, and optimise device settings to maximise battery.

At the same time, your smartphone can also protect you and keep you healthy. You can set your phone to track your physical activity; your step count, distance covered on your walks and jogs, and calories burned. Through machine learning, they can track your heart rate and sleep patterns, as well as recognise irregularities that may indicate potential health issues. Your butler is also your caretaker. Your smartphone can provide personalised insights and suggestions for maintaining a healthy lifestyle, reminding you to take breaks, stay hydrated, or engage in physical activities.

But this is just the beginning. Imagine an intelligent digital entity, much like Tony “Iron Man” Stark’s JARVIS (Just A Rather Very Intelligent System). A voice-activated genius that is a whiz at answering questions, making executive decisions, following orders, and adding a playful twist with funny banter. Like JARVIS, your phone will learn, adapt, and contextualise your requests and commands. It will grow smarter with each interaction; it will become the only device you will need to control multiple gadgets in your home – from your lights to your security systems, your smart appliances and even your grocery orders. It will use context to dim the lights whenever you choose to listen to Michael Bublé on your streaming music system, and even nag you about your health checkups…

Now, I know this sounds like some fancy Jetson sci-fi stuff. But guess what? AI is here, and here to stay. In fact, I have a confession to make. I did not really write this piece, I got ChatGPT to do it as I listened to some AC/DC.

— Damyant Singh Khanoria is the Chief Marketing Officer at OPPO India. Views expressed herein 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

Bottomline | An ageing China is India’s opportunity

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

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Last week, Moody’s put the spotlight on China’s ageing population, saying: “The declining labour contribution to growth will be a key drag on China’s economic potential should policy measures fail to boost the birthrate and promote productivity.” The global rating agency went on to point out that an ageing population will impact demand for homes and reduce the labour pool available, leading to higher wages and an impact on China’s competitiveness. Moody’s notes in a separate piece that: “Demographics will support housing demand in Indonesia and Vietnam over the next decade”, this even as China experiences quite the opposite.

Is this another cause for concern for China, given that demographics are only one factor that drives economic trends? Yes. We’ll tell you why. But this isn’t China’s only problem at the moment. As El Erian, the Chief Economic Advisor to Allianz puts it, “China faces the risk of two major economic/financial problems coming together … and having them fuel and be amplified by financial instability: First, insufficient domestic growth drivers in the face of external headwinds; and second, long-standing pockets of excessive debt and leverage turning into system-wide detractors of growth, confidence, and capital availability. The authorities’ policy responses are yet to deal with either in a determined fashion”.

DEMOGRAPHICS MATTER FOR CHINA

While demographics haven’t historically been the only factor driving or pulling back growth across the world, their impact also varies from economy to economy. We looked at the correlation of the trend in growth and demographics for key countries and found that the correlation for US and India was very weak, moderate for Japan, but clearly of some significance for China, with a reading of 0.57 for the past 10 years.

What’s important to note here is that the age dependency ratio after dropping sharply for China in the early part of this century has started trending up, while it is moving down for India. What’s more important to factor is that this is due to a sharp increase in the dependency of the older age population and not those of young dependants. This suggests more need for healthcare services and more pension payouts as the years go by. Harvard professor economics and demography David E Bloom pointed out in a piece on the subject: “Three decades ago, the world was populated by more than three times as many adolescents and young adults (15- to 24-year-olds) as older people. Three decades from now, those age groups will be roughly on par.” And the skew could be worse for ageing economies.

Age dependency ratio (% of working age population)

Age dependency ratio, old (% of working age population) 

(Source: World Bank data)

INDIA WILL NEED MORE THAN YOUTH

India hasn’t shown any significant change in its growth trajectory due to demographic factors historically. But some of that can change with a concerted effort to maximise productivity of a growing working class by creating the right kind of opportunities.

As Bloom says: “It is an overstatement to say that demography determines all, as it downplays the fact that both demographic trajectories and their development implications are responsive to economic incentives; to policy and institutional reforms; and to changes in technology, cultural norms, and behavior.” He adds: “Technological innovations are likely to ameliorate the effects of population aging. New drugs to slow the process of aging and add healthy years to people’s lives and the invention and deployment of assistive devices such as robots are two among many such improvements. Institutional innovations like new models of home health care, public transportation systems, the design of urban layouts, and financial instruments are also on the horizon.”

Be this as it may, demographics are not without influence. Provided they are harnessed well. With China + 1 already being a key trend, India has an opportunity to tap into China’s worsening demographic. Can India seize the moment? Or will the likes of Vietnam and Indonesia steal the thunder.

I remain hopeful.

Also read: China steps up efforts to stabilise markets as confidence slumps

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

View | Sustainable electronics: Manufacturers must design products with extended lifecycles and reduce e-waste

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

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In today’s fast-paced world, electronic devices have become an integral part of our lives. However, the rapid advancement of technology and the increasing demand for new products have led to significant environmental challenges. Sustainable electronics, which focus on designing for extended lifecycles and reducing electronic waste (e-waste), have emerged as a promising solution. This column explores the importance of sustainable electronics, the key principles of designing for extended lifecycles, and strategies for e-waste reduction.

Importance of Sustainable Electronics

Sustainable electronics address the environmental and social impacts associated with the entire lifecycle of electronic devices. The production of electronic devices consumes valuable resources, including energy, water, and rare minerals. Moreover, improper disposal of e-waste releases toxic substances into the environment, endangering human health and polluting ecosystems. To address these concerns, sustainable electronics strive to minimise adverse effects by adopting a comprehensive approach.

Designing for Extended Lifecycles

Designing for extended lifecycles is a fundamental principle of sustainable electronics. By extending the useful life of electronic devices, we can reduce the need for frequent replacements and lower overall resource consumption. Here are the key strategies for designing extended lifecycles:

1. Durability: Manufacturers can prioritise robust construction and high-quality components to enhance product durability. This includes using reliable materials and implementing rigorous testing standards to ensure longevity.
2. Modularity: Designing devices with modular components allows for easy repair and upgradeability. In the event of a particular component becoming outdated or malfunctioning, it can be easily swapped out without the need to replace the entire device. This approach effectively minimises electronic waste.
3. Standardisation: Promoting standardisation in design and interfaces enables compatibility between different devices. This allows users to reuse accessories, such as chargers and cables, across multiple products, reducing e-waste and the need for redundant accessories.
4. Repairability: Manufacturers can design devices with easily accessible parts and provide repair guides and spare parts to encourage repairs. Repair-friendly design contributes to the longevity of electronic devices.

E-Waste Reduction Strategies

Reducing e-waste is crucial to achieving sustainable electronics. Here are some effective strategies to tackle this challenge:

1. Take-back Programmes: Electronics manufacturers can establish take-back programmes wherein consumers can return their old devices for proper recycling or refurbishment. These programmes ensure responsible disposal and minimise the amount of e-waste that ends up in landfills or incinerators.
2. Recycling and Recovery: Implementing efficient recycling and recovery processes helps extract valuable materials from electronic waste. Recovering metals, plastics, and other valuable components reduces the demand for virgin resources and lowers environmental impact.
3. Consumer Education: Raising awareness among consumers about the importance of responsible e-waste disposal is crucial. Educating users on how to recycle and dispose of electronic devices properly can help prevent them from ending up in the wrong waste stream.
4. Circular Economy Approaches: Adopting circular economy principles can contribute to e-waste reduction. This encompasses the design of products with recyclability in mind, advocating for remanufacturing and refurbishment, and establishing closed-loop systems that facilitate the reuse of materials in the production of new electronic devices.

Nokia phones, known for durability, contribute to less e-waste. HMD Global facilitates proper recycling by encouraging customers to return phones at their end-of-life cycle. Nokia phones are made with high-quality materials, then go through product testing more vigorous than the industry average. And with up to three years of security patches, Android OS upgrades, and manufacturer’s warranty, your phone is made to last, inside and out.

Sustainable electronics play a vital role in minimising the environmental and social impacts of electronic devices. Designing for extended lifecycles and implementing effective e-waste reduction strategies are key components of sustainable electronics. By prioritising durability, modularity, standardisation, and repairability, manufacturers can extend the lifespan of electronic devices. Additionally, take-back programmes, recycling initiatives, consumer education, and circular economy approaches are crucial for reducing e-waste. Together, these efforts can contribute to a more sustainable and responsible electronics industry, protecting our planet and conserving valuable resources for future generations.

— Ravi Kunwar is Vice President, India & APAC, for HMD Global — the home of Nokia phones. Views expressed herein 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

In India, it’s advantage Tesla as Chinese automakers face heat | Analysis

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

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China’s loss in India could be Elon Musk’s gain.

Tesla has had a red-carpet welcome from India for its proposal to invest in the country, while its largest rival in electric vehicles, China’s BYD, has been stopped cold by increased scrutiny from New Delhi.

The result could be an opening for Tesla to negotiate terms for an entry to the world’s third-largest auto market without the competitive threat from BYD that it faces in other emerging markets, like Thailand.

“The future of who wins in India will have some bearing on who wins globally in the EV race,” said Jasmeet Khurana of the World Economic Forum.

Since a meeting between Musk and Prime Minister Narendra Modi in June in New York, Tesla has fast-tracked closed-door discussions with Indian officials on a potential plant investment and plans to build a new low-cost $24,000 EV.

Those talks continued over the past week with Tesla discussing minute details of its plans to gain access to India’s fast-growing EV market, and Modi personally tracking developments, sources say.

Those meetings, though, have been strictly kept under wraps, with officials putting out no photos on social media of handshakes with executives which otherwise is a usual affair after high-profile meetings.

Also Read | Tesla executives hold discussions on market entry talks with India investment agency: Sources

BYD, meanwhile, appears to be taking a backseat. Months after seeking clearance for its own $1 billion investment in India, BYD is no longer keen to pursue the approval, Reuters reported. In a further setback, BYD is facing an investigation over allegations that it underpaid import tax in India.

Among other concerns, Indian officials are worried about the national security implications of Chinese-made vehicles and the data they could collect. India is “uncomfortable with Chinese automakers,” an official said.

While all investments from China have faced tightened approval requirements in India since a border clash between the two in 2020, there could be an outsized effect on the developing market for EVs in India because of China’s dominance in battery materials, battery production and other technology.

Tesla, too, has Chinese suppliers that have helped it slash production costs at its Shanghai factory and it now wants to bring them to India – where it appears to have an upper hand in talks with New Delhi.

India has told Tesla it will allow its Chinese suppliers into the country if they forge partnerships with local firms, just like Apple did. But at the same time, India is hesitant on BYD’s $1-billion plan even though that too was proposed as a partnership with a domestic engineering firm.

Also Read: In challenge to Tesla, automakers launch US EV charging network

The Global Times, a Chinese state-run newspaper, said the reported pushback on BYD’s investment plan “will lead to a chain reaction and deal a blow to the overall confidence of Chinese companies in investing India.”

BYD did not respond to requests for comment on the status of its India investment plan or the import tax claim. In a statement to Reuters, the company noted it had been active in the Indian market for 16 years and sells commercial vehicles and passenger cars there.

Tesla did not respond to a request for comment on its talks with Indian officials. Musk had said in June that Modi was “pushing us to make significant investments in India, which is something we intend to do.”

India’s growth EV market

Tesla wants to sell 20 million cars globally by 2030, up from 1.31 million in 2022, but faces hurdles to expanding its Shanghai factory.

BYD was the world’s biggest seller of EVs and plug-in hybrids in 2022 with a total of 1.86 million units – the vast majority in China. It trails Tesla in terms of sales of fully electric cars.

“Tesla sees competition mainly with BYD, and both are expanding globally at great speed,” said Gaurav Vangaal of S&P Global Mobility.

“If they want volumes, they have to come to India,” he said, adding that with the government incentivising companies to build EVs locally, India can also serve as an export base.

Annual production of light electric vehicles in India is expected to rise to 1.4 million by 2030, close to 19% of total forecast production of 7.25 million, according to estimates by S&P Global Mobility. It was less than 50,000 in 2022.

India’s nascent EV market is dominated by local player Tata Motors, whose best-selling Nexon EV sells for as high as $19,000 while Chinese carmaker MG Motor’s ZS EV starts at $28,000 while BYD’s Atto 3 retails at around $41,000 in India.

Toyota Motor, Hyundai Motor and Kia all sell mid-sized gasoline SUVs priced at around $24,000, Tesla’s identified entry point.

Tesla does not currently sell vehicles in India.

“Tesla has become a desirable product in name alone,” said Sam Fiorani of AutoForecast Solutions. “Add to that an affordable product tailored for the Indian market and it has the potential to be a hit locally.”

Also Read: Elon Musk hints at more Tesla price cuts, with autonomy still tricky

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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

View | Building an omnichannel strategy in a digital-first India

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

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The retail landscape in India is rapidly expanding as consumers are evolving and becoming more aware of their needs. With consumers increasingly turning to online channels for their shopping needs, retailers are compelled to drive an effective retail strategy that not only embraces the digital transformation but also fosters seamless integration between the virtual and physical marketplaces

In this highly competitive market, it has become important for brands to differentiate themselves. As per the latest Salesforce report, 92 percent of Indian customers say that customer experience is just as important as the product/service. To meet the rising demand and ensure a great purchase experience in a digital-first world, brands have the responsibility of empowering their customers with an omnichannel experience, advanced digital tools, a customer-first, personalised approach, and the right support at every touchpoint. 

Providing convenience and accessibility for a seamless purchase experience 

In the pursuit of making products readily available in the market, brands must prioritise convenience for their customers. Recognising that customers have diverse preferences, it becomes crucial for brands to establish a presence where their target customers are. Some prefer exclusive stores and multi-brand outlets, while others may prefer purchasing through online platforms. 

In the case of physical stores, adopting a unique design language that embodies the brand’s ethos can foster a sense of attachment and create an immersive experience, further strengthening the customer-brand relationship. Similarly, online platforms must prioritise user interface and experience, as they play a pivotal role in enhancing customer convenience during the online purchase journey. By aligning distribution channels, brands can ensure that their products are easily accessible to consumers. When this is coupled with a diverse range of payment options, such as buy now pay later (BNPL) and no-cost EMI, brands can offer a flexible purchasing experience that aligns with the evolving needs and preferences of their customers.  

Using AI and ML to generate quality customer insights

Tech-savvy customers are actively interacting with brands through various digital channels, resulting in the generation of substantial data. This information can be used to identify valuable trends and insights, allowing brands to enhance their products, services, and operational efficiency. By integrating advanced AI and ML tools, brands can personalize customer engagement and offer customised product recommendations based on individual purchasing behaviour and preferences. For example, customers can leverage chatbots not only for receiving quick resolutions to their queries but also for obtaining personalised product suggestions. This seamless integration of technology enables brands to provide a highly responsive and satisfying customer experience, fostering loyalty and driving business growth.

Creating a feedback loop

Constantly collecting feedback is not only essential for creating a positive customer journey but also serves as a valuable source of insights for businesses. Regardless of their size, businesses rely on customer feedback to gain a deeper understanding of their customer’s needs and expectations. This feedback is collected through a wide range of platforms, including social media channels, online reviews, and word of mouth, providing a comprehensive view of customer sentiment. By effectively analysing and interpreting this data in real-time, businesses can gauge their brand’s perception in the market, identify areas for improvement, and build long-lasting brand loyalty.

Training customer executives

Training on-ground customer executives and sales personnel is vital for enabling effective customer engagement. As customer awareness grows and their inquiries become more sophisticated, it is essential to equip the customer support team with a diverse set of skills. This includes not only soft skills but also the necessary knowledge of upselling and cross-selling techniques. By providing comprehensive training, businesses can ensure that their customer support team delivers a seamless and personalised experience. This ultimately leads to increased customer satisfaction. 

— Atul Mehta is Senior Director & General Manager, India Consumer Channel, Dell Technologies.

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

View | The pitfalls of resisting hybrid work

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

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As organisations navigate the shifting landscape of work, a crucial decision arises whether to embrace the emerging paradigm of hybrid work or remain rooted in traditional practices. While Indian employees strongly favour a hybrid work model as they believe it improves their productivity and gives them a much-needed work-life balance, they also feel that there is still much work to be done in ensuring a truly equitable, tech-savvy, and collaborative future of work. While hesitations around adopting hybrid work may exist, it is crucial to recognise the potential drawbacks that come with denying employees this flexible arrangement.

By gaining a deep understanding of the hidden drawbacks of resisting hybrid work, organisations can unlock invaluable insights, realising that embracing hybrid work goes beyond personal preference—it becomes a strategic imperative for long-term success, in the evolving work landscape.

Increase in Operational Cost

Maintaining large office spaces and infrastructure can be costly for organisations. Embracing a hybrid work model allows for downsizing office space, resulting in potential cost savings related to rent, utilities, and maintenance. However, in a hybrid work setup, collaborative and shared spaces remain crucial. While employees have the flexibility to work remotely, it is essential to provide dedicated spaces where they can come together for collaborative work, meetings, and team interactions. These shared spaces serve as a core for fostering collaboration and building a sense of community among team members while complementing the benefits of remote work in a hybrid setup.

Impeding Work-Life Balance and Limiting Employee Productivity 

The hybrid work model empowers employees to create a work environment that suits their needs and preferences. It encourages employees to take greater ownership of their time management and improve productivity while at the same time encourage work-life balance. Giving employees the flexibility to schedule work tasks and personal activities in a way that optimises productivity and allows them to get meaningful breaks and downtime. Another important aspect is long commutes every day which contributes to burnout and heightened stress levels. In the absence of a hybrid work model employees may find it challenging to disconnect from work and experience adequate rest and recovery.

Limiting Diversity and Inclusion Opportunities

Inclusion and diversity are critical drivers of innovation and creativity. Without a hybrid work model, organisations are often limited to hiring employees who are located near their physical office. This geographical constraint can hinder efforts to diversify the workforce and may result in a lack of representation from different regions, cultures, and backgrounds. Embracing hybrid work allows organisations to tap into talent pools from diverse locations, promoting inclusivity and expanding the opportunity for a more diverse workforce.

Limiting Talent Acquisition and Retention

In a competitive talent landscape, organisations that resist hybrid work risk losing and acquiring top talent. Many professionals now prioritise flexibility and remote work options when considering job opportunities. Organisations that do not offer hybrid work arrangements may struggle to retain employees who prefer the freedom and work-life balance provided by remote work. Implementing a hybrid work model can enhance employee retention and attract new talent by meeting the evolving expectations of the workforce.

Creating a ‘Progressive’ Perception

The perception of progressiveness is often associated with adaptability to evolving trends and employee preferences, including embracing flexible work arrangements like hybrid models. Companies that adhere strictly to a traditional office-based model may be seen as falling behind the changing expectations. Employees value companies that align with their values, including the desire for a modern, flexible work environment. A lack of a hybrid work model can indicate a company’s resistance to change and innovation, potentially resulting in a disconnect between the organisation and its employees.

Collaboration and innovation often thrive in environments that foster diverse perspectives and ideas.

To achieve cross-functional collaboration in a hybrid work model, organisations must prioritise the implementation of suitable technology, including video conferencing solutions, audio equipment, and the right hardware. By ensuring employees have access to the right tools, organisations can facilitate seamless collaboration and bridge the gap between remote and office-based workers. Striking the right balance between office-based and remote work is paramount for organisational success, allowing companies to adapt and excel in today’s dynamic work landscape.

— Vickram Bedi is Senior Director, Personal Systems, HP India

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

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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

Bottomline: Need for pragmatism on finfluencers

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

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SEBI Chairperson Madhabi Puri Buch in a press meet following the regulators board meet weighed in on the hot topic of influencers in the investment arena. What was notable about her remarks was that she distinguished between influencers focusing on “investor education” and those offering “inducements”. That is a fine balance that will need to be maintained while framing rules and regulations as well, lest a few black sheep lead to the entire herd being branded in one light and an important initiative to educate the masses being nipped in the bud.

There’s good influence out there

I did a cursory check, with not very high expectations, on the content being put out there by some of the leading influencers. And I was positively surprised. There is some sage advice and good knowledge being spread there, and more effectively than in several of the staid investor camps.

For the first time, in a long time, there are many people with knowledge of investing taking the right kind of information to the masses to increase financial literacy. Killing this initiative before it has had the opportunity to achieve its true potential can be detrimental to the entire nation. It can increase participation in the capital market and help mobilise savings for productive use in a capital-starved country.

But a need to level the field

Influence is good for those who wield it. It gets them the power to influence the actions of several others. But like with every other power, there must come responsibility. It should not be that we have two parallel systems, one regulated and one unregulated co-existing. That cannot be. Here it may be noted that some of the bigger influencers have now got organised as enterprises and registered with SEBI, but there is a big ecosystem out there that operates without any checks and balances.

Hence, there must be rules that align the minimum qualifications of investment advisors registered with SEBI and those offering advice as influencers. And, perhaps, a separate set of rules for those not looking to offer advice but only educate investors. But no one in the capital market system should be outside the purview of the regulator, as that poses a risk to both individual investors and the entire ecosystem.

Present SEBI regulations require investment advisors to have a relevant qualification in finance from a recognized institution to be eligible for a license. Advisers also need to have a minimum five years of relevant professional experience in the financial or securities sector and must have a minimum networth of Rs 5 lakh. There are no such rules for influencers, all you need is a social media account to get started. Such dichotomy must not continue.

The rules may be revised to align them, but no one should have a free run while another set is asked to also comply with a general set of responsibility obligations scripted by the regulator. This should help address the issue of “inducements” and “misrepresentation” by certain influencers.

Influencers and risks of oversimplification

In my reviews of content offered by some influencers I found a few cases where well-intended effort was made to simplify concepts and investing for the uninitiated. For instance, age-old stock market wisdoms of invest in businees you understand or the Peter Lynch doctrine of buy brands you use and like were contextualized for the lay investor. However, some of this tends to oversimplify the investment and stock identification process. Imagine buying Hindustan Unilever just because you like Dove soap or buying Nestle because you like Nescafe. That’s hardly reflective of the companies in their entirety. Several lay investors may not even be aware of the entire portfolios of these companies. Often limited information can be more dangerous than no information at all.

A conservation from an ace fund manager spotlighted a folly several individual investors make, of using casual advice/comments from smart investors on stocks as buy recommendations. These money managers take a portfolio approach and hence their bad bets will often be more than offset by their right bets. An investor who picks one of the losers may suffer a much worse fate. Hence, for most investors taking the mutual fund route or being guided by a professional investment adviser is the best option. Dabbling in stocks directly should be generally avoided by individual investors unless they are equally qualified as an investment advisor to judge the merits of a specific stock investment and the risks associated.

Go passive, invest wisely.

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