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SPECIaL ISSUE
OC
www.businesstoday.in I January 28, 2018 I ` 100
IndIa's
BEST
CEOs
The BT-PwC India study
throws up new champions
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SPECIaL ISSUE
www.businesstoday.in January 28, 2018
IndIa's
BEST Kenichi Ayukawa
MD & CEO,
Maruti Suzuki India
CEOs
The Champion of
Champions
SPECIaL ISSUE
www.businesstoday.in January 28, 2018
Y.C. Deveshwar
Chairman, ITC
IndIa's
BEST
A.M. Naik
CEOs
Winners of The Lifetime
Chairman, L&T Achievement Award
FROM THE EDITOR
http://www.businesstoday.in
THE LEADERSHIP
Editor-in-Chief: Aroon Purie
Group Editorial Director: Raj Chengappa
I
Editor: Prosenjit Datta
CONNECTION
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Managing Editor: Rajeev Dubey
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I
L
SPECIAL PROJECTS AND EVENTS
Senior Editor: Anup Jayaram
eadership research – to identify what is common among I
CORRESPONDENTS
successful leaders – has been taking place for over a century now. Senior Editors: P.B. Jayakumar, Nevin John, Goutam Das,
Mahesh Nayak, Ajita Shashidhar, Joe C. Mathew
And much of the leadership research has focussed on successful Senior Associate Editors: E. Kumar Sharma, Anilesh Mahajan,
Dipak Mondal
(and unsuccessful) corporate leaders and CEOs, possibly Associate Editors: Manu Kaushik, Sumant Banerji
because it is easier to find empirical data on them and their Senior Assistant Editor: Nidhi Singal
Special Correspondent: Sonal Khetarpal
performance over sufficiently long periods, and to study large I
RESEARCH
samples in different countries. Principal Research Analyst: Niti Kiran
I
The initial leadership research focussed on trying to identify COPY DESK
common traits that all leaders exhibited. Since then, leadership Senior Editors: Rishi Joshi, Mahesh Jagota
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research and theories have become far more complex. Researchers Assistant Editor: Sapna Nair Purohit
Chief Copy Editor: Gadadhar Padhy
have tried to study whether all leaders flourish in all situations or Senior Sub Editor: Devika Singh
I
do different situations call for very different leadership qualities PHOTOGRAPHY
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biological basis for leadership and C-suite suitability. I
ART
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or rather the genetic markers – of leadership. A research, conducted Assistant Art Director: Rajkumar Wahi
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Vol. 27, No. 2, for the fortnight January 15-28, 2018.
all leaders (and high-performance CEOs) do tend to have some things Released on January 15, 2018.
in common. In fact, the Business Today-PWC Best CEO survey offers Editorial Office: India Today Mediaplex, FC 8, Sector 16/A, Film City, Noida-201301; Tel: 0120-
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COVER BY
JANUARY
Nilanjan Das
28, 2018
VOLUME INSIDE COVER PHOTOGRAPH
27 BY: Reuben Singh (Kenichi
Ayukawa), Shekhar Ghosh
NUMBER (Y.C. Deveshwar), Rachit
2 Goswami (A.M. Naik)
44
R STORY
COVER
Pushing
shing
g the
Boundaries
undaries
alculated risks and thinking long term
Taking calculated
d the best CEOs from the good ones
separated
THE INDIA'S
BUZZ > BEST CEOs
18 GLOBAL BUSINESS
28
20
46
NPAs: FRESH TROUBLE
GRAPHITI:
UNDER STRESS Perfect Drive
22 SEAPLANES: FLIGHT From elevated risk due Kenichi Ayukawa's tenure
nure
OF FANCY to poor asset quality to has seen Maruti stem the
improving credit growth, we slide in market share and
38 KA-CHING! bring you the latest trends in further consolidate its
s hold
the banking space on the Indian market
56
BUSINESS-
Niche Play
By following the strategy
of doing a few things well,
TODAY.IN >
V.C. Nannapaneni has
helped Natco Pharma
carve out a space for itself
STAY CONNECTED WITH US ON

Enlarging the Pie
www.facebook.com/BusinessToday@BT_India
Varun Berry aims to make
Britannia Industries a total NEWS:
foods company in Will the PE Dream Run Continue in 2018?
another three years
With close to $16 billion being raised by PE/VC
funds in past three years, investments in key
sectors may continue to remain buoyant this year.
52 66 businesstoday.in/pe-vc.investment
Oiling New Wheels
How the Ministries Spent Their Funds in 2017
After his success at Indian
About 70 per cent of the ministries so far have
Oil, B. Ashok takes on the
spent over 50 per cent of their Budget estimates
challenge of building a
in fiscal 2017/18. It is the highest share spend
mega refinery
over five years.
businesstoday.in/budget.estimates-expenditure
Marketers Need to Talk to Gen X, Not Millennials

102 The Gen X category (41 to 50 year olds) is the
fastest-growing population segment in India.
Beyond Tobacco
businesstoday.in/genX-business
Y.C. Deveshwar has been
successful in using cash
flows from the tobacco
business to build multiple
drivers of growth
Mr. Infrastructure
96
A.M. Naik transformed 111 The Top 100 CEOs
the company into a global
engineering & technology The Top 30 CEOs (BFSI) 120
powerhouse
Full Electric Mobility in India Only by 2047: SIAM
THE BREAKOUT ZONE >

Though the industry's timelines are much more
conservative vis-a-vis government's ambitions,
they do seem to be more practical.
businesstoday.in/autoindustry-EV
Direct Tax Contribution Falls Below 50%
128 Indirect taxes are regressive in nature as they do

not distinguish between poor and rich. So, higher
proportion of indirect taxes in total tax collection
Tech Trends in 2018
is not considered ideal.
The New Year looks promising
businesstoday.in/direct.tax-contribution
with AI becoming more pervasive
and augmented reality making
a comeback COLUMN:
̦2G scamˇ Will Continue to Create Headlines
It is doubtful if any of the companies which won
An Feature
the 122 licences would have been able to
From time to time, you will see pages titled “An Impact Feature” or
survive the battle that is taking place
“Advertorial” in Business Today. This is no different from an
advertisement and the magazine’s editorial staff is not involved in after Jio's entry, says Business Today
its creation in any way. Editor Prosenjit Datta.
businesstoday.in/2g-technology
12 I BUSINESS TODAY I January 28 I 2018

THE BUZZ
CALENDAR
15-17 21-22
BOOSTER DOSE HANDLING IFIS
WHAT: India Pharma 2018 WHAT: International Financial
Institution Bootcamp
WHEN: February 15-17, Bangalore
WHEN: February 21-22, Edmonton,
WHAT TO LOOK FOR: The FICCI Alberta
event provides a platform
to the global investment WHAT TO LOOK FOR: The gov-
community to connect with ernment of Alberta province in
stakeholders in the pharma Canada will be hosting a two-day
sector. India Pharma 2018 covers seminar on how to do business
the whole process of pharmaceuti- with the International Financial
cal manufacturing, from various Institutions (IFIs). The semi-
kind of manufacturing/processing nar will include presentations by
machinery to lab equipment, ana- the World Bank Group, Asian
lytical instruments, APIs and Development Bank and Caribbean
other total solutions. Development Bank.
23
23 ENFORCING INFRA
SPOTLIGHT ON GST CONTRACTS
WHAT: Conference on
WHAT: CII Session on GST
Infrastructure Contracts
WHEN: February 23, Panaji Goa Management
WHAT TO LOOK FOR: The Union WHEN: February 23, New Delhi
Budget for 2018-19 is expected
WHAT TO LOOK FOR: There has been
to be announced in Feb 2018 and
a global recognition of the impor-
will contain proposed changes in
tance and benefits of effective
customs and GST. The various
contract management. The aim
indirect tax changes proposed
of the FICCI conference is to give
in the Budget and also the GST
a platform to the infrastructure
legislation would be examined in
sector for analyzing new trends in
detail at this one day programme.
contract management and share
best practices & case studies.
1 19-23
REINVENTING LAND GOVERNANCE
EMPLOYEE RELATIONS
WHAT: Land and Poverty
WHAT: CII Industrial Relations Conference 2018
Summit 2018
WHEN:March 19-23,
WHEN: March 1, New Delhi Washington, DC
WHAT TO LOOK FOR: The event WHAT TO LOOK FOR: The Land and
will focus on top leadership role Poverty conference, organised by
in shaping the employee rela- the World Bank, will present the
tions climate. Then, the summit latest research and practice on the
would explore ways to ensure diversity of reforms, interventions,
employee engagement on the and innovations in the land sec-
shopfloor. There would also tor around the world. The confer-
be a debate on grievance han- ence has become one of the largest
dling and ensuring that labour international events on land
reforms are a win win for all. governance.

THE BUZZ
GLOBAL BUSINESS
GOOGLE’S STASH MANUFACTURING BOOM IN US SOFTBANK-UBER DEAL
Search giant Google moved $19.2 A survey by the Institute for Ride-hailing firm Uber ended
billion to a Bermuda shell company Supply Management shows that its trouble-torn year on a posi-
in 2016, thus saving billions of dol- the factory index, a tool measuring tive note as it struck a $7.7 bil-
lars in taxes, according to regula- factory activity, climbed from 58.2 to lion deal with the Japanese
tory filings in the Netherlands, a 59.7 in December 2017 and the conglomerate SoftBank for 15
Bloomberg report reveals. The set- measure of new orders rose to 69.4, per cent stake. According to a
up involves shifting revenue from the highest ever recorded by a Reuters report, Uber co-founder
one Irish subsidiary to a Dutch com- growing manufacturing sector since and former CEO Travis Kalanick
pany with no employees, and then January 2004. The heightened is also planning to sell 29 per
on to a Bermuda mailbox owned by activity brings the 2017 average to cent of his shares for around
another Ireland-registered company. 57.6, the best in 13 years. $1.4 billion.
SPOTIFY TO GO PUBLIC OIL RECOVERS DELIVEROO’S INDIA FORAY
Music-streaming service Spotify, Oil has recently seen the biggest London-based food delivery
valued at about $15 billion, has recovery since mid-2015, with the start-up Deliveroo is looking
filed confidentially to go public. The crude oil benchmarks opening for an India head who will set
company is planning a first-quarter above $60 a barrel. While Brent, the up a full-fledged team to enter
direct listing on New York Stock international benchmark, hit $67.29, the local market, as per media
Exchange. A direct listing allows US benchmark WTI reached $61.50. reports. Deliveroo is funded by
companies to list shares without Prices have risen due to massive a bevy of investors, including
raising money. The process cuts anti-government protests in Iran, Fidelity, T. Rowe Price and Accel
through the usual red tape, but the OPEC’s third-largest producer, and Partners, and is reportedly val-
stock misses the opening boost co-ordinated output curb by other ued at $2 billion. It now operates
that comes with a traditional float. OPEC countries as well as Russia. in 140 cities across 13 countries.

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H-1B VISA: THE IMPLICA- CYBERSECURITY: THREAT FROM NOTE BAN DEPOSITS: I-T
P.22 P.24 P.26
TIONS OF 'HIRE AMERICAN' MELTDOWN AND SPECTRE CAUGHT IN REDTAPE
NPAs
Fresh
Trouble
RBI’s MOVE TO ASK
BANKS TO FILE
FOR BANKRUPTCY
IN TWO DOZEN
MORE CASES WILL
FURTHER INCREASE
PROVISIONING
REQUIREMENTS.
By ANAND ADHIKARI
ILLUSTRATION BY RAJ VERMA
E
ven as the sword of ‘liquidation’ is to 100 per cent. for stressed accounts.
hanging over the heads of banks Public sector banks are already Experts believe that the additional
for dozen large corporates under reeling under deteriorating asset load of incremental provisioning in
bankruptcy proceedings, the quality, higher provisioning and the two dozen new cases will affect the
banks have been directed to file reduced profitability and have done capital of public sector banks; and with
for bankruptcy in over two dozen over 50 per cent provisioning in the capital absorbed in provisioning, their
new stressed accounts. These include dozen large accounts which owed them profitability will be hit.
consumer durables major Videocon, over `2 lakh crore. Close to 30 per cent The banks, meanwhile, are
infrastructure unit IVRCL, Monnet provisioning has already been made hoping against hope that the 12 large
Power and steel major Uttam Galva. for the second list too. stressed accounts would be resolved in
Under the provisioning In the past, stressed accounts 2018/19 and are looking at some profits
requirements of the RBI, banks have – which not all banks rate as NPAs if assets from stressed accounts can be
to provide for 50 per cent NPAs for – were only assessed for stepped-up sold at a price higher than their value
assets referred for bankruptcy from provisioning during the Asset Quality on the books.
profits. If these assets are liquidated, Review. Now, however, the RBI has
the provisioning requirement shoots up become proactive in demanding NPAs @anandadhikari

THE BUZZ
TELECOM
DoT’s Money
Recovery
A report that the Depart-
ment of Telecom (DoT) is
planning to seek `2,578
crore from five telecom
operators – Reliance Jio,
Tata Teleservices, Telenor,
Videocon Telecom and
Quadrant – has officials in
these firms in a tizzy. The
DoT wants to recover the
money based on a Comp-
troller and Auditor General
of India (CAG) report saying
these operators under-
stated their gross revenues;
deducted discounts offered
to customers and dealers,
SEAPLANES interest earned from invest-
ments, free talk-time offers,
and asset sales. The telecom
FLIGHT OF FANCY operators pay Spectrum

Usage Charges and licence
fees annually to DoT from
their gross revenues. In July
TRANSPORT MINISTER Nitin Gad- is an argument that regular aircraft last year and a year before
kari recently chose to stick his neck cannot be compared to seaplanes; that, the CAG had pointed
out when he said that India has the but if Trans Maldivian Airways, at similar concerns about
potential to start 10,000 seaplanes. which operates the world’s largest Airtel, Vodafone and Idea
This, he felt, was possible because seaplane fleet, works with just 49 Cellular. Since there is no
India has 3-4 lakh ponds, 2,000 river aircraft, it’s difficult to fathom that definite way of calculating
ports, 200 small ports and 12 major India will suddenly spawn operators gross revenues, the matter
ports that could be used to operate which are bigger than the more es- is being hotly contested by
flying boats. The number, however, tablished seaplane operators around operators. Some smaller
seems a bit over the top. For one, the world. Meanwhile, taking its cue operators named in the
even in the mature civil aviation sec- from the government’s intent, Spice- CAG report have exited the
tor, the total aircraft fleet of sched- Jet has announced that it plans to business and, therefore,
uled commercial airlines stands at induct 100 seaplanes in its fleet at a recovering money from
cost of $400 million. – Manu Kaushik them will be a huge task.
492, with 923 more on order. There
And those that remain are
unlikely to take this jab lying
down. – Manu Kaushik
H-1B VISA
HIRE AMERICAN OR FIRE INDIAN?

INDIA’S IT export sector services companies. – what is seemingly good
is aflame with reports that Not just the US, former for local employees is
the US is considering a colonial powers are all not necessarily good for
new regulation to prevent raising protectionist bar- businesses. There is no
foreign workers from get- riers, be it the UK, other guarantee ‘Hire American’
ting H-1B visa extensions countries in the EU, and would work. Businesses
while their green card even Australia and Singa- do not think morally about
applications are pend- pore. What does this mean these issues; they do what
ing. They fear this could for Indian exporters? The is profitable. The big word
mean “self deportation” cost of doing business will here is automation. If they
of thousands of work- go up several times. This don’t get cheaper talent,
ers, particularly software will also have implications they may unleash robots to
engineers employed by IT for American businesses do the job. – Goutam Das

THE BUZZ
CYBERSECURITY
PROCESSOR
SECURITY FLAW
UNIFIED EXCHANGE
SECURITY RESEARCHERS have decade or more.

detected major flaws that leave mil-
lions of computers, smartphones,
As soon as news of the vulner-
ability was public, every major firm
NOT A
tablets, wearables, servers and smart released security updates. Experts, BIG DEAL
devices vulnerable. The flaws, Melt- however, are concerned that these
down and Spectre, allow hackers to will slow down systems. Linux-based In December, the Securities
trick applications and access pass- systems could slow down as much as Exchange Board of India
words and sensitive data. 17 per cent, whereas systems running announced that India’s
They hit devices running Win- Intel processors could slow down
anywhere between 5 per cent and 30
stock exchanges could begin
dows, MacOS, Linux, iOS, Android
and almost any other operating per cent depending on the processor. commodity trading from
system. Meltdown lets hackers bypass Rajpreet Kaur, Senior Research Ana- October this year and vice
hardware barriers on Intel chips to lyst, Gartner, says allocating suff icient versa. With this, India will
steal data, whereas Spectre hits every memory to accommodate become the first country with
single device with chips from Intel, the security patch is crucial now.
universal exchanges where
AMD and ARM designed over the past – Nidhi Singal
equities and commodities
are traded on a single
platform. This, however, is
not as good for investors,
market intermediaries or
exchanges. This is because
BLOCKCHAIN once an exchange gains
market share, be it in equities
Governance Headstart
or commodities, it is difficult
for a new entrant to grab a
foothold. Even in the current
scenario, if we examine the
ANDHRA PRADESH’S tech-savvy Chief dynamics between NSE
Chandrababu Naidu, hopes to beat
Minister, N. Chandrab
and BSE in equities or
PHOTOGRAPH BY A. PRABHAKAR RAO
Dubai by making AP the th world’s first blockchain-

powered state. He told officers recently that between MCX and NCDEX
he expects all digital records
r in the state to be in commodities, dominant
blockchain-compliant by the end of 2019. The players continue to enjoy
secretary and IT advisor, J.A.
CM’s special chief sec the lion’s share. The need
Chowdary said the state
sta had already begun
of the hour is to widen the
Project Blockchain 202019 to ensure that each
department is blockchain
blockch ready. The tender pro- scope of participants and
cess to select companies
compan will commence shortly increase liquidity and depth.
and would be also be open to bidders who have Hopefully, with mutual fund
implemented blockchain
blockch projects in Estonia, and portfolio management
Sweden and Israel. TheTh work undertaken for dif- services expected to be
ferent divisions will be separate. Chowdary said
extra care is being exercised
exe regarding protec- allowed in commodity
tion of consumer data by sticking to the “triple exchanges, there would be
S” model (Safe, Secure
Secur and Smart). some relief on the liquidity
- E. Kumar Sharma. front. -Mahesh Nayak

THE BUZZ
FUNDING
WINDFALL
NOTE BAN DEPOSITS
FOR VC
INVESTORS
I-T CAUGHT
IN REDTAPE The last year was an
encouraging one for
venture capitalists. Many
exited their investments
at handsome multiples by
selling their shares to larger
funds. Japanese SoftBank
Corp and Chinese Ali-
baba emerged as the clear
AFTER TALL claims by the Modi making the rounds of various sections saviours for early inves-
government that investigation of and departments and officials say tors in start-ups. Going
“unaccounted” for deposits would un- any ‘meaningful findings’ will only by the data from Venture
earth large amounts of black money, be available by September. Senior Intelligence, 2017 saw
the Income Tax Department appears officials defend the situation saying 63 VC exits worth $2.23
to be dragging its feet on the said explanations submitted by individuals billion through the M&A
investigation. Initially, around 23 lakh will have to be scrutinised and tallied route – the highest in three
individuals were identified with tax with the returns filed for assessment years. In 2016, there were
profiles that did not match their post- year 2017/18. Further movement can 67 deals, but these were
demonetisation deposits. Verification be made only if any discrepancies are valued at $1.17 billion. Soft-
notices were sent to these persons. detected then. Bank’s purchase alone to-
Now, the paperwork in these cases is -Dipak Mondal tals $1.2 billion. It acquired
Tiger Global’s shares, or
part of it, in Flipkart as well
as SAIF Partners’ stake in
One97 Communications.
10,00,000 9,85,044 Alibaba also consolidated
MAR-09 its position in One97. While
New
investment
VC investing is expected to
projects SLOWDOWN gain momentum in 2018,
announced the exit front will be worth
(` crore) watching. Expect further
8,00,000
Investments see consolidation in India’s
a sharp slide
e-commerce space as the
market is largely polarised
between Amazon and
NEW INVESTMENT proposals worth
Flipkart. - Goutam Das
`76,838 crore were announced in
6,00,000
December quarter, the lowest since
the June 2004 quarter. According to
the CMIE database, the announce-
ment of new investment projects
dropped sharply in fiscal 2017-18. In
4,00,000 the first three quarters of 2017/18, just
1,721 projects with investments worth
`4,01,935 crore were announced,
registering a fall of over 50 per cent (in
value terms) from the corresponding
period of the previous year. -Niti Kiran
2,00,000
JUN-04 DEC-17

THE BUZZ
GRAPHITI
UNDER
STRESS
From elevated risk due to poor asset quality
to improving credit growth, we bring you the
latest trends in the banking space.
Graphic By Tanmoy Chakraborty
Research by: Niti Kiran
7.8%
DEPOSIT GROWTH
` 51,900 cr
CAPITAL INJECTED BY
IN SEPTEMBER THE GOVERNMENT IN
2017, FROM 11.1% IN PUBLIC SECTOR BANKS
MARCH 2017 SO FAR UNDER THE
INDRADHANUSH PLAN
35%
SHARE OF BANK
3/4th
SHARE OF DELIN-
CREDIT IN THE TOTAL QUENT LOANS CON-
FLOW OF FINANCIAL CENTRATED IN THE
RESOURCES IN 2016/17 NON-PRIORITY SECTOR
Source: RBI
CAPITAL
HUNGER
This year, the government is trying
to reverse the trend of giving a
pittance to banks owned by it
90,000
Capital infusion (`crore)
75,000
60
60,000
45,000
30,000
BASIS POINTS 15,000
INCREASE IN GROSS NON- 0
PERFORMING ASSETS 2007/08 *includes the `80,000 cr
cleared by Lok Sabha; Rajya
2017/18*
Sabha approval is awaited
RATIO OF SCHEDULED
COMMERCIAL BANKS
Stable Returns…
BETWEEN MARCH AND
Return on assets (%)
SEPTEMBER 2017 2
2015/16
1.5
2016/17
20.8%
1
0.5
0
RECOVERY RATE
OF BANK NPAs, -0.5
FROM 61.8 PER Public Private Foreign All Scheduled
CENT IN 2009 Sector Sector Banks Commercial
Banks Banks Banks
1.8
…mask sharply
worsening asset quality
(Restructured standard advances
%AGE POINTS as % of gross advances)
8
RISE IN CREDIT
7
GROWTH, FROM
6
4.4 PER CENT
TO 6.2 PER 5
CENT, BETWEEN 4
MARCH 3
AND SEPTEMBER 2
2017 1
0
2007/08 2017/18
Public Sector Banks

Private Sector Banks
Foreign Banks
All Scheduled
Commercial Banks
THE BUZZ
U.S. Tax Reform Has

Global Implications
THE TAX REFORM SUGGESTS A DRASTIC CUT IN
CORPORATE TAX, BUT THE FINE PRINT INDICATES AN
ADDITIONAL TAX BURDEN ON U.S. MULTINATIONALS. COLUMN BY
MUKESH BUTANI
MANAGING PARTNER,
BMR LEGAL
P
resident Donald Trump signed a landmark tax Most U.S. MNCs used creative ways such as buyback of
reform on Christmas Eve to replace a 30-year- shares to repatriate earnings from India until India levied
old, complex U.S. tax system. The 429-page law, an additional tax to bring buyback on par with dividend
Tax Cuts and Jobs Act 2017, reflects his resolve to declaration and I see the limited impact of this.
fulfil an election promise, impacting citizens as
well as domestic and international businesses. Limitation of interest expense deduction: All net interest
Here we discuss the changes impacting the expense that exceeds 30 per cent of taxable income will
cross-border tax regime and the U.S. multination- now be subjected to a limitation capped at 110 per cent of
al corporations in India. Besides a 20 per cent reduction in the corporation’s shares of the group’s net interest ex-
corporate tax rate, there are four key changes: pense. The interest disallowed can be carried forward for a
● A move to the territorial tax system, as opposed to the period up to five years based on FIFO. It is in line with the
resident taxation system OECD-led BEPS action points, and a similar provision was
● Imposition of transition tax for U.S. multinationals repa- legislated by India in its 2017/18 budget (section 94B).
triating earnings kept in foreign jurisdictions
● Limitation of interest deductions in line with the G- New excise tax: All deductible payments made by U.S. com-
20-led and OECD-led base erosion and profit sharing panies to their related foreign companies will be subjected
(BEPS) initiative. to a 20 per cent excise tax. Deductible payments include the
● Excise tax on imports to boost domestic manufacturing cost of goods sold and cost that forms the basis of amortisa-
tion of assets, royalties and services. It is the most debatable
Territorial tax system: Under the new and burdensome part of the law. Although
system, U.S. corporations will no longer be the Bill has not used the term border adjust-
taxed on foreign earnings of their subsid- ment tax, which is much talked about and
iaries and dividends distributed from such debated since the new Presidency, the fea-
foreign subsidiaries will enjoy an exemp- tures are somewhat similar. The EU leaders
tion, provided the U.S. corporation owns 10 have reacted negatively, and most analysts
per cent in its foreign subsidiary. predict that such tax will have to pass the
Logically, no foreign credit will be al- WTO scrutiny. Imports from related parties
lowed for taxes paid in foreign jurisdictions. located in high-tax jurisdictions such as In-
AJAY THAKURI
It will replace a complex U.S. tax system to dia could be spared from an additional U.S.
tax global income with complex foreign tax tax burden as the risk of shifting profits to
credit mechanism and in line with the Eu- India would remain low given India’s tough
ropean participation exemption. Given that transfer pricing regime.
India levies dividend distribution tax, which Even though the tax reform suggests a
is not creditable under the U.S. foreign tax credit rules, the drastic corporate tax cut, the fine print indicates an addi-
move could encourage U.S. subsidiaries to repatriate earn- tional tax burden on U.S. multinationals, reaching upwards
ings more efficiently unless they have sent dividends to the of $60 billion over a 10-year period.
regional subsidiaries outside the US. While the best minds in the US have worked to design
the tax reforms, international business heads and politi-
Repatriation tax on accumulative foreign earnings: U.S. cal heads have expressed their views on policies that could
corporations, in pursuance of the change in the territorial potentially harm their businesses and national interests,
tax system, will now be encouraged to repatriate foreign respectively. A few EU countries have also reacted negative-
earning representing post-1986 profits, which have not ly, but reactions from emerging markets are yet to come in.
been subjected to U.S. tax. A one-time tax of 12 per cent The tax fraternity feels that the changes in the U.S. territo-
will be levied on such accumulated foreign earnings rep- rial system are welcome although it could lead to aggres-
resenting cash, cash equivalent or short-term assets (5 per sive transfer pricing audits and questions about reported
cent tax on assets such as property, plant and machinery). offshore earnings.

THE BUZZ
REFINANCING
3 MILLION
NUMBER OF CARS
AND SUVs SOLD IN
2017, 9.2 PER CENT
MORE THAN IN
2016, THE STEEPEST
RISE SINCE 2013.
MAKE IN INDIA
TATA STEEL MAY
RAISE $5.1 BILLION
Tata Steel has approached banks for raising $5.1 billion through
loans and a bond issue, according to wire reports. The funds will be used
to refinance debt. This will mark the company's return to
international debt markets for the first time after the middle of 2016. The
company is increasing focus on the Indian market after selling
unprofitable assets in the UK. Govt Drops
`32,000 Cr
MCMV Project
The Ministry of
Defence has scrapped
PMI the `32,000 crore project
for building 12 advanced
MANUFACTURING INDEX mine counter-measure
AT FIVE-YEAR HIGH vessels (MCMVs) or
minesweepers. The
The Nikkei India Manufacturing Purchasing Man- project, to be carried out
agers' Index (PMI) rose to 54.7 in December from by Goa Shipyard Ltd in
54.7
52.6 in November. The number is the collaboration with South
highest in the past five years. Experts attribute this Korea-based Kangnam
to an uptick in new orders. Growth was recorded
in all three verticals — consumer, intermedi- Corporation, fell through
DECEMBER
ate and investment. The index has crossed the due to ‘commercial
52.6
50-point mark for the fifth consecutive month. complications’. Advanced
A reading above 50 shows economic expan- minesweepers can track
sion, while a reading below 50 points a contrac- and destroy underwater
tion. Meanwhile, core sector growth touched a
13-month high of 6.8 per cent in November. NOVEMBER mines, and the Indian
Navy requires them on a
priority basis.

THE BUZZ REAL ESTATE
AFFORDABLE
HOMES DO WELL
Residential launches fell 35 per cent in 2017, according
to a study by Cushman & Wakefield. The number of
residential units launched across top eight cities last year was
74,000, with Mumbai accounting for 31 per cent of the total new
SALARIES units, followed by Pune (15 per cent). Only the affordable housing
segment saw year-on-year growth, of 6 per cent, it said.
PAI SAYS IT
COMPANIES
HAVE FORMED
CARTEL
POLL FUNDING
Big information
Government Issues
technology compa-
nies have formed a
cartel to keep salary
of entry-level engi-
neers low, alleged
Details of Electoral Bonds
IT industry veteran
To curb the use of illegal money in politics, the
TV Mohandas Pai,
according to a PTI refinance ministry has notified the details of the
port. He agreed with proposed electoral bonds. Donors will be able
Infosys Co-founder to buy these through select SBI branches The
N.R. Narayana Murthy, bonds will be available for 10 days in January,
who had said that in April, July and October. This period will be
the last seven years, extended to 30 days in the year general elec-
salaries of freshers in tions are held. The donors will have to buy in
the software industry multiples of `1,000, `10,000, `1 lakh, `10 lakh
have stayed stagnant, or `1 crore. These will be interest-free instru-
while the same for
ments resembling promissory notes; SBI will
senior-level employ-
ees have grown be the custodian of the funds until the par-
multi-fold. Pai was ties are paid. The name of the payee will not
earlier a CFO at appear on the bonds, though the donors will
Infosys. have to make KYC disclosures to SBI.
QUOTE
"If 2017 was the year of major

structural reforms, then 2018
will be the year for reaping the
benefits of these reforms."
RAJ VERMA
Finance Minister Arun Jaitley

in an interview to a TV channel
THE BUZZ
SOCIAL UNIVERSE
KA-CHING!
Social media
companies finally
ILLUSTRATION BY AJAY THAKURI

see growth in
earnings in India.
BY DEVIKA SINGH
There was a time when digital advertising

in India meant advertising on Google.
And only after a substantial portion of
the advertising budget was spent on the
search engine would advertisers con-
sider ‘experimenting’ on social media.
But the times are a-changin’.
According to a recent filing with
the Ministry of Corporate Affairs by
Facebook, the social networking site’s
revenue doubled to `341.8 crore in FY17,
compared to `177 crore in FY16. Its profit
rose to `40.7 crore in the last financial
year, from `31 core in FY16. Similarly,
micro-blogging site Twitter recorded
a turnover of `50 crore in the 2016/17
fiscal, as compared to `42.7 crore in the
previous fiscal. Professional networking
site LinkedIn, too, registered an increase
in revenue from `368 crore in 2015/16 to
`457 crore in 2016/17.
All these companies have a user base
of millions in the country, but had been
struggling to monetise it. The recent INCREASE IN SMARTPHONE Nimesh Shah, Head Maven, Windchimes
growth in revenue is an indication that a USAGE, WITH BETTER Communications.
change is underway. According to Neil AND CHEAPER DATA NOW Another reason why advertisers are
Shah, Director, Counterpoint Research,
AVAILABLE, HAS ADDED TO keen on advertising on social media plat-
THE RISE IN REVENUES OF forms today, according to Shah, is that
marketers in India are warming up to the
SOCIAL MEDIA COMPANIES
idea of advertising on social media plat- the once popular banner ads have lost
forms as they realise the potent opportu- their sheen. “We have a lot of ad blockers
nity these present for targeted marketing of the time spent on the platform. So it now so banner ads are becoming less
beyond TV and print. has become a logical choice,” says P.G. effective. Besides, social media platforms
The increase in smartphone usage, Aditiya, Creative Director, Copy, Dentsu have started offering better targeting
with better and cheaper data now avail- Webchutney. features which is contributing to their
able, has added to the rise in revenues of Experts also credit the rising user growth in the country,” he adds.
social media companies. base of social media platforms as a rea- This does not, however, alter the su-
“Moving from Google to Facebook, son for their preference over other digital premacy of Google as the most preferred
is akin to moving from desktop to mobile. platforms for advertising. “Marketers are destination for advertising.
If you see, most digital advertising is realising that Facebook commands a
mobile-first and in mobile, Facebook wins greater share of eyeballs now; and that
is what’s showing in the revenues,” says @DevikaSingh29
over search engines any day, because

INTERACTIVE
ADVERTISING BUREAU HAS
ESTIMATED THAT GLOBAL
DIGITAL AD REVENUES
WILL BE AROUND $85
BILLION IN 2017, MARKING
A 17 PER CENT RISE
FROM 2016
RECOMMENDED AD SNAPCHAT will follows. The social

EXPERIMENT experiment with networking site
POSTS
a new ad display has recently seen
strategy on its a fall in its aver-
Instagram has introduced a new
platform, where- age view time of
‘recommended posts’ feature for in users would ads as users skip
its users, which would suggest have to watch ads without even
them posts based on their activi- video advertise- viewing them for
ties and the accounts they follow. ments on its site a second. Wary of
These posts can be accessed by for at least three imposing ads on
clicking the thumbnail above the seconds, before users, Snapchat
feed. To hide the feature, users they can view the hopes this move
can tap on the camera icon above content – similar will give a boost to
the post and select hide. to what YouTube its ad revenues.
TARGETED 82% OF ALL CONSUMER INTERNET

FOR TRAFFIC WILL BE VIDEO BY 2018,
CISCO HAS FORECAST
TARGETING
ProPublica and The New York Times
have released a report criticising com-
panies such as Facebook, Amazon,
Target, Verizon and Goldman Sachs, for
targeting employment ads based on the
age of users in the US, a strategy it has
called ‘ageism’. Defending the move,
Facebook, which had been earlier criti-
cised for targeting ads based on the race
and mental condition of users, said the
strategy is helpful for companies to cre-
ate customised ads promoting employ-
ment and that the report misconstrues
how most employers use targeting tools.
January 28 I 2018 I BUSINESS TODAY I 39

THE BUZZ
Y.V. Ratna Kumar:

Chairman & MD,
Y Screens
START-UP
Y SCREENS:
ROCKING THE
PHOTOGRAPHS BY V. NAVADHEER
HINTERLAND
THE COMPANY AIMS TO
ENTERTAIN, EMPOWER AND
EDUCATE RURAL AND
SEMI-URBAN MASSES.
By Sonal Khetarpal
KEY NUMBERS
Founded:
FEBRUARY 2016
Revenue:
GROSS INCOME OF
`5.4 CRORE FROM
FLAGSHIP PROJECT
IN VIJAYAWADA AT
PANDIT NEHRU BUS A YSTD centre in
STATION Vijayawada
1) Founder: Started by Y.V. Ratna Funding:

Kumar in February 2016. While BOOTSTRAPPED;
KUMAR PUT IN `16
running his Vijayawada-based own. Kumar claims that each YSTDC
CRORE IN THE PAST
business consulting firm APIMS 18 MONTHS will generate 100 jobs. Its team of 35
India, Kumar realised that rural comprises local youths, all of them
India needed a huge boost in terms of Operational centres: 2 aged below 30, and 30 per cent of
entertainment, information them are women. The Y Square
and services. also on private lands in Tier-II, Tier-III Business Incubation programme
and Tier-IV cities. The area required promotes entrepreneurship, helping
2) Big Idea: The concept of Y is an acre, the investment required is locals to implement their business
Screens Trade Development (YSTD) `3.5-4 crore and construction time is ideas, raise funds and network with
Center to serve semi-urban and rural six months. the right people. Also, rent from
areas is unique. Each centre houses unused spaces on which the centres
a movie theatre, a government 3) Rivals: No direct competition. are built is an additional source of
services centre called Mee Seva, Companies such as PVR only have income for the government. Kumar
and a Y Square Business Incubator movie theatres but not an integrated claims to have paid `2.4 crore to the
to mentor youngsters who want to format like YSTD centres. Andhra Pradesh government in the
start a business. There are also other form of tax, rent and power tariff.
value-added services such as health 4) What Sets It Apart: The start-
kiosks, banking (ATMs/e-banking up only operates in semi-urban and 5) Milestones: The first project
services), food courts/restaurants, rural areas, and engages with local in Vijayawada at Pandit Nehru Bus
gaming zones and branded retail youths in a number of ways – ensuring Station was completed in June 2016.
outlets. These centres are built on affordable entertainment (a movie As of now, two centres are operational,
unutilised public spaces near bus ticket is priced at `100), giving them 11 are under construction and
terminals and railway stations where jobs at the centres and providing 25 MoUs have been signed under
people often wait for long hours, and them support to start up on their partnership plans.

THE BUZZ
From Beauty to
Attraction
IF WE GO ABOUT SYSTEMATICALLY IMPROVING THE
QUALITY OF OUR LIVES, THAT WILL AUTOMATICALLY
MAKE INDIA MORE ATTRACTIVE TO TOURISTS. COLUMN BY
ASHOK V. DESAI
ndians know how much In- and lousy power supply. is how much we Indians travel – in
dia has to offer a tourist; a life- The next factor that holds India particular, our villagers. And how poor
time is not enough to see it all. back is health and hygiene. The indica- the facilities for them are – there are
But the world does not see it tors are obvious ones such as sanita- few cheap and clean places for them
that way. In 2016, India’s rank tion, drinking water, hospital beds, to stay in cities; so they mostly land
in World Economic Forum’s physician density and incidence of up in the homes of their relatives. It
travel and tourism competi- malaria and HIV. India’s poor sanita- must be pretty trying for a villager who
tive index was 55. Last year, it tion and scarcity of drinking water are moves to a small residence in a town to
went up to 40. But still, it has far to well documented. entertain his visiting relatives.
go. What does it lack? There is not India also falls behind in safety If we go about systematically
much point in comparing ourselves and security, and tourist service infra- improving the quality of our lives, that
with Spain and France, the most at- structure. The poor performance of the will automatically make India more
tractive countries in the world, whose police and the ubiquity of watchmen attractive to tourists. Tourist facilities
concentration of leisure activities and in offices are relevant; tourist service may not be equally important to them
infrastructure India cannot match. infrastructure is assessed from the and us. But by and large, the better we
The only country with India’s size and live, the more comfortable tourists will
diversity is China; its rank is 15. Where We should get be. So we should get down to making
does it score over India? down to making India the bourgeois paradise; then the
Its biggest lead (87-25) is in what world’s bourgeoisie will flock to India.
India the bour-
the World Economic Forum calls hu- If we want to improve, we should
geois paradise;
man resources and global market. It look for lessons, not at China, but at
depends partly on workers’ education
then the world’s the world’s best destinations. And we
and training, and partly on the flexibil- bourgeoisie will should concentrate on improving in
ity of the labour market – ease of hir- flock to India. If we those areas where we do poorly. They
ing and firing, of employing foreigners want to improve, are mostly related to government
and women’s labour participation. It we should look for activity – prioritisation of tourism,
is reflected in the quality of service, lessons, not at tourist service infrastructure, health
especially its reliability. China, but at the and hygiene, and environmental
Next comes prioritisation of travel best destinations sustainability. Surely, it is not beyond
and tourism (104-50). This vague con- us to have cleaner hotel rooms, more
cept is based on the priority the gov- automatic teller machines, more and
ernment gives to travel and tourism, better car rental companies. Nor
its expenditure on it and on publicity. availability of accommodation, car would it be difficult to employ more
Then comes ICT readiness. It is rentals and ATMs. women in tourism infrastructure; they
odd that India, which has built up These indicators may matter to are better at making tourists welcome.
such a reputation for its skills in infor- tourists; but what struck me was And why just them? Local males
mation and communications technol- that they matter just as much to us would welcome it too.
ogy and has made so much money out indigenes, especially our middle class.
of it should score below China; what National Sample Survey recently put The writer is a senior economist
pulls it down is lower domestic ICT, out a report on domestic tourism. and was chief consultant in the
less developed mobile communications What I found remarkable about it finance ministry from 1991 to 1993

INDIA’s BEST CEOs
Pushing the
Boundaries
Taking calculated risks and thinking long term
separated the best CEOs from the good ones.
W
hat separates the best CEOs from their merely
good peers? It is a question that is being asked by
researchers across the world as disruptions – both
digital and policy – become increasingly frequent and
upend entire sectors and markets.
The Business Today PWC Best CEO survey offers
some clues. The survey is based on a rigorous quanti-
the boundaries of their businesses and expand, and
thinking about long term requirements. None of them
were satisfied with status quo even when their busi-
nesses were doing well. They also focused relentlessly
on operations to make their companies more efficient.
So whether it is Kenichi Ayukawa of Maruti
Suzuki India, Sajjan Jindal of JSW Steel, Romesh
tative analysis of three year performance followed by a Sobti of IndusInd Bank, Yadupati Singhania of
qualitative round in which an eminent panel of jurors JK Cement, B. Ashok of Indian Oil, I.S. Jha of
studied each CEO’s track record. In the review period, Power Grid Corporation, Varun Berry of Britannia,
the stock market performed but earnings growth was Kapil Wadhawan of Dewan Housing Finance, V.C.
a big challenge for CEOs. Nannapaneni of Natco Pharma, Navin Agarwal of
At first glance, the winners seemed to have little in Vedanta or M.K. Jain of Indian Bank, you will find a
common. The group had highly visible extroverts as common strand in their very different stories. You will
well as painfully shy introverts, inheritors, self made particularly appreciate the risk taking abilities and the
entrepreneurs as well as professionals. But scratch be- nationalistic pride of our two lifetime achievement
low the surface and there were a few things common winners, A. M. Naik of L&T and Y.C. Deveshwar of
in all their different stories. ITC, both of whom built institutions and expanded
Without exception, all of them had a yen for taking into different businesses even years ago, when tech-
risks, were always looking for opportunities to push nology disruptions was not the norm as it is today.

ILLUSTRATION BY NILANJAN DAS
INDIA’s BEST CEOs
KENICHI AYUKAWA, MD and CEO, Maruti Suzuki India
Perfect
Drive
Kenichi Ayukawa's tenure has seen Maruti
stem the slide in marketshare and further
consolidate its hold on the Indian market. BEST CEO
BY SUMANT BANERJI (Champion of
Champions,
W
Large Companies,
Auto and
Ancillaries Sector)
Total Income/ 3-yr CAGR
70,418.2 cr/ 16.5%

PBIT/ 3-yr CAGR
10,030.7 cr/ 37.8%

PAT/ 3-yr CAGR
7,337.7 cr/ 38.1%

3-yr Average TSR
53.2%
Average Mcap YoY growth*
50.0%
hen Kenichi Ayukawa was appointed Managing Director and Chief Ex-
ecutive Officer of Maruti Suzuki India Ltd in April 2013, the company was ROE/ ROCE
not in the best of shape. Following two years of labour unrest at its Manesar
factory, its market share had slid to less than 40 per cent. The morale within 22.2%/ 30%
the company was low and rivals had their tails up. Not quite a sinking ship, CASH/ DEBT
but in 2012/13, Maruti was in a state of disarray.
Within four years, the 62-year-old Ayukawa has effected a complete 13.1 cr/ 483.6 cr
reversal in the company’s fortunes. Maruti Suzuki is sitting pretty with a
Net Profit Margin
market share of 50.4 per cent (April-November 2017), the highest since
2000/01. It accounts for four of the top five and seven of the top 10 best 9.5%
selling cars in the country. Revenues grew a staggering 36.7 per cent in
*For Oct 2016-Sept 2017
2016/17, and 20 per cent in 2017/18 (so far). Its share price has almost Standalone data; Total Income,
doubled in the last 12 months and recently breached the `10,000 mark. It is PBIT & PAT net of extraordinary
items; TSR: Total shareholder
now the fifth most valuable company in the country. return; Source: ACE Equity
This success is a result of team work, but Ayukawa’s signature can be
seen in each of the areas where Maruti has excelled of late – right from
improved industrial relations, graduation from Budget to a semi-premium

PEOPLE ARE VERY
IMPORTANT AND OUR
WORKERS IS WHAT
WE ACTUALLY OWN IN
BUSINESS. HOW WE
MAKE FULL USE OF
THEIR CAPABILITY IS
ALWAYS THE KEY”
PHOTOGRAPHS BY REUBEN SINGH

INDIA’s BEST CEOs
The Ayukawa Effect

Maruti’s market share (%) started rising again
after the new CEO took charge in 2013/14 50.4
2017/18*
50.4
2001/02
45.3 47.4
2010/11 2016/17
42.1
2013/14
38.3
2011/12
*April-November; source: SIAM
carmaker and reduction in recalls to had 15-16 models but only one channel. capability to develop a world-class car
improvement in quality and agility That put a lot of pressure on distribu- but never got an opportunity. When
in managing crises. It is no surprise tion. Also, people focussed on models we designed Brezza, we realised that
that Ayukawa has swept the Best CEO that sold easily; others were forgotten. potential. In future, we will have more
awards, achieving the rare feat of win- That is why, it was better to have a opportunities to develop cars designed
ning in three categories – best CEO for separate channel for some models. The by Indian engineers. This is important
auto and ancillaries, for large companies Indian side had these ideas, but they for the morale of our engineers.”
(an award he had won in 2016) and needed to be integrated with Japan
champion of champions. before going ahead.” Cometh the Hour,
The blockbuster success of Brezza, Cometh the Man
Growth Drivers Maruti’s belated entry into the compact Maruti’s performance is particularly
Bulk of the growth in market share has SUV segment, is a source of immense significant in the context of develop-
been driven by transformation from a personal satisfaction for Ayukawa. The ments in the Indian economy in the
value-for-money to a semi-premium project was led by Indian engineers last 12 months. From demonetisation
carmaker with its Nexa outlets and and the confidence Brezza’s success has in November 2016, which sucked out
products such as Dzire, Baleno and given them is something Ayukawa be- 86 per cent liquidity from the market,
Vitara Brezza. It was Ayukawa who lieves will be important for the future. to implementation of the Goods and
was instrumental in convincing the “Maruti has very good and capable Services Tax in July last year, the
parent, Suzuki, about the need to in- people. The challenge is to create an economy has been in a flux. Given its
vest in a separate distribution channel. atmosphere so that they can realise scale of operations, Maruti should
He also gave Indian engineers freedom their potential. Our engineers had the have been particularly vulnerable to
to design and develop cars in-house. these shocks. Yet, Ayukawa remained
This is something Suzuki had been unfazed. “Ayukawa is composed and
resisting for long. “Even before I came does not get hassled with anything.
in, there were discussions on setting That is a big advantage in a market
up a premium network. The scale of like India,” says I.V. Rao, Executive
Maruti, at over a million cars a year, is Advisor, Engineering, Maruti. “He
big, and customer preference is shifting is an extremely good listener and a
towards premium products. We did MARUTI HAS VERY GOOD meticulous planner.”
AND CAPABLE PEOPLE.
not have any premium product. We “I have seen a lot of surprising things,
THE CHALLENGE
communicated this to Suzuki Japan. IS TO CREATE AN so I don’t get that surprised anymore,” he
They recognised the need. The timing ATMOSPHERE SO THAT says. “Demonetisation was a big shock
matched,” he says. “Our marketing THEY CAN REALISE for us. Everybody froze for at least 10
people were also a bit frustrated. We THEIR POTENTIAL” days. After that things started moving

INDIA’s BEST CEOs
gradually. It was very difficult to explain than any other Maruti CEO ever and integral to the firm. As a result, they
to Japan (Suzuki). I told them this thing maintains utmost discipline while also do their bit during exigencies. In
has happened, but nobody knew how there. When we wanted to get him pho- May 2016, when a blast at one of the
to manage this. So, we reacted day by tographed in a business suit at the floor company’s main suppliers, Subros,
day.” Ayukawa gave full freedom to the of the factory, he refused saying it was brought production to a standstill, the
marketing department and offered full a place where everybody had to wear workers took their two-week annual
support from Suzuki in Japan. the same uniform. The message – in the earned leave straightaway to reduce the
“He encouraged us to take whatever factory, there cannot be a distinction impact. “Even our worker associates
steps were necessary to tide over the between a CEO and a worker. knew that our target was to sell two
crisis, not only for the company but Workers are now informed more million units by 2020. So, everybody
also for our dealer associates, as they regularly about the company’s targets has some responsibility on how we will
were facing the brunt,” says K.S. Kalsi, and aspirations so that they feel more achieve that,” he says. “So, when we are
Senior Executive Director, Marketing able to achieve it, everybody has a sense
and Sales, Maruti Suzuki. “Our prime of fulfilment. I tried to implement a
focus was to liquidate stocks at dealers. culture where success or failure is not
In a short span, we ensured that card for the individual but for everybody.”
swiping machines were installed at all
The Ayukawa
our showrooms. We encouraged banks Stamp Getting Ready for Electric
to offer 100 per cent financing. I do not 1. Directly engaged with Despite being in an impregnable
think any other company in the industry workers in factories, position, Maruti and Ayukawa are not
worked as hard as we did during those improving the taking things for granted. The advent
company’s industrial
two months.” The result – Maruti re- relations record of electric mobility is set to challenge
corded its highest-ever retail sales of 1.82 industry norms. Maruti cannot remain
2. Stringent focus on quality
lakh units in December 2016. A poten- insulated from the potential disruption.
and stress on zero defects
tial calamity was turned into a blessing. have significantly reduced In fact, as a market leader, it may be
product recalls more vulnerable than others. Ayukawa
The Worker’s Hero 3. Instilled confidence among admits that Suzuki is relatively weak in
His biggest contribution to the com- Indian engineers, gave this area than many other global manu-
pany, however, is the marked improve- them freedom to develop facturers. But he says the company
cars such as Vitara Brezza
ment in labour relations. Following will do all it takes to find a solution.
from scratch
two consecutive years of unrest in Suzuki’s tie-up with Toyota to develop
2011 (a 59-day strike) and 2012, when 4. Spearheaded diversification electric cars and the lithium ion battery
into premium cars, leading
workers went on the rampage with iron to the success of Nexa plant being set up in collaboration
rods and wooden sticks at the Manesar dealerships with Denso and Toshiba are examples
plant and killed a senior manager, the 5. Does not get fazed by
of that. Maruti says its first electric car
atmosphere within the company when challenges, helped the will be on roads by 2020. “We have to
Ayukawa took over was toxic. Ayukawa company overcome shocks remain relevant and attractive to our
tion
built a direct line of communication such as demonetisation consu
consumers at all times. Otherwise we
with the workers and union leaders, ers, will n
not survive,” he says.
an-
restoring their trust in the top man- “So sometimes, if consumer prefer-
“So,
agement. “During my career, before ore I ence oor rules or some policy changes,
joined the marketing department, nt, I we ha
have to be ready with an answer.
had experience of working in human man Comp
Competitors can be ahead with their
resources and finance. Maybe that at has produ
products, in that case, we have to catch
versee
given me an idea about how to oversee up. That’s
Th competition, but at the end
operations,” he says. “People are very of the day customers will decide. Even
important and our workers are what if you force some rule, if the customer
we actually own in business. How w does nnot accept it, it will not work.”
ity is
we make full use of their capability W focus squarely on the con-
With
always the key.” sume
sumer and the calming presence of
Ayukawa is from the old Japanesenese Ayuka
Ayukawa at the top, there is no stop-
p
culture that treats its factory shop ping tthe Maruti juggernaut.
ship.
floor, or gemba, as a place of worship.
He spends more time at the shop floor @sumantbanerji
108
110
088 I BUSINESS
BU
BUS
B USIN
US NES
NE SS
S TODAY
TOD
T
TO
OD
O DAY
AY I JJanuary
aanu r y 28 I 2
nuaary 201
20
2018
0 8
INDIA’s BEST CEOs
B. ASHOK , Chairman, Ratnagiri Refinery and Petrochemicals
Oiling New
Wheels
After his success at Indian Oil, B. Ashok takes
B
on the challenge of building a mega refinery.
BY ANILESH S. MAHAJAN
Ashok, who was appointed RRPL is a new joint venture the three
Chairman and Managing Director of state oil marketing companies – IOCL,
Ratnagiri Refinery and Petrochemicals Hindustan Petroleum (HPCL) and
Ltd (RRPL) in November last year, had Bharat Petroleum (BPCL), owning 50
an outstanding record during his three- per cent, 25 per cent and 25 per cent
year stint at Indian Oil Corporation respectively – decided upon in
Ltd (IOCL) in the same capacity. But mid-2017.
the challenge of building a new, state- Under Ashok’s charge, IOCL’s net
of-the-art refinery cum petrochemical profit surged from `5,273 crore in
complex from scratch – with a capacity 2014/15 to `10,399 crore the following
of 60 million metric tonne per annum year. In 2016/17, the company went on
(MMTPA), making it one of the largest to record a further 70 per cent rise in
in the world – is of a different kind. net profit to `19,106.40 crore, and was
PHOTOGRAPH BY RACHIT GOSWAMI
BEST CEO
(Super Large
Companies,
Oil & Gas)
3,64,289 cr/ -8.6%

PBIT/ 3-yr CAGR
29,786.3 cr/ 30.8

PAT/ 3-yr CAGR
19,106.4 cr/ 53.6%

3-yr Average TSR
53.2%
69.9%
ROE/ ROCE
20.5%/ 20.2%
CASH/ DEBT
86.5 cr/ 54,819.5 cr

Net Profit Margin
4.3%
*For Oct 2016-Sep 2017; I DOUBT THE NEAR
Standalone data; Total Income,
PBIT & PAT net of extraordinary
FUTURE WILL
items; TSR: Total shareholder re- SEE A SCENARIO
turns; figures for Indian Oil; he WHERE NEITHER
was chairman till May 2017;
Source: ACE Equity PETROL NOR DIESEL
IS REQUIRED AS
VEHICULAR FUEL”
INDIA’s BEST CEOs
B. ASHOK , Chairman, Ratnagiri Refinery and Petrochemicals
cum-petrochemical complex at Paradip,

Orissa. This was a much-delayed project
which had been plodding along for over
two decades and was considered jinxed
by the industry. Sanjiv Singh, who has
since succeeded Ashok at IOCL, was
then Director (Refineries), and the two
worked together to iron out the last
bottlenecks and get the plant going.
They expanded and upgraded a number
of other refineries as well. Out of 23
refineries in India, IOCL runs 11 with
VIVAN MEHRA
total capacity of 80.7 MMTPA.
Relevance of Oil
It is Ashok’s responsibility not only to
build RRPL, but also to equip it to face
the next decade. He will have to look
adjudged India’s most profitable public for ways to keep purchase costs down,
High Points
sector enterprise, even surpassing the where his knowledge of inventory man-
usual winner, Oil and Natural Gas Com- 1. Net profit surged from `5,273 agement, acquired at IOCL, will be a
mission (ONGC). No doubt the plunge crore in 2014/15 to `19,106.40 big asset. He will also have to cope with
crore in 2016/17
in crude prices – from $108 a barrel, a changing market, given the govern-
when Ashok took charge in July 2014, 2. Reduction in operational ment’s expressed intention of encourag-
to $46.17 a barrel in June 2017 when expenses, partly due to falling ing electric vehicles so aggressively that
interest rates
he left office, contributed, as did the by 2030 there are only these vehicles on
government’s steps during this period 3. Improved financial position streets. If this market shrinks or withers,
meant oil purchases were
to dismantle the oil subsidy regime. But made swifter; the deal closure what will happen to refineries and oil
Ashok’s adroit use of the opportunity time was brought down from marketers?
also made a difference. weeks to 36 hours “I doubt the near future will see a
4. Commissioning of the scenario where neither petrol nor diesel
Imparting Speed challenging 11 MMTPA is required as vehicular fuel,” says Ashok.
“I saw it as a chance to free up cash refinery-cum-petrochemical He points out that a purely electric
complex at Paradip, Orissa
flows,” he says. “In earlier years, the gov- future for road transport is based on
ernment of the day kept up the subsidy numerous assumptions – that the cost
mechanism since global prices of crude of storage batteries will continue to fall,
and its products were high. This led to that their capacity will dramatically im-
under-recoveries. The government’s ed financial flexibility which allowed me prove and that there is enough lithium
compensation to oil marketing com- to clear up our oil purchase processes,” available to manufacture the vast
panies for under-recoveries was often says Ashok. “Purchases have been made number of batteries that will be needed.
delayed, and sometimes did not come swifter. We close deals within 36 hours, Without any one of these, electric ve-
at all.” This forced IOCL to seek debt to unlike before, when they would take hicles are unlikely to be viable on a large
cover its operational expenses, which weeks.” Top IOCL officials revealed that scale. “Electricity is a good alternative
stood at `86,263 crore in 2014/15, but after Ashok moved on, the process has for vehicles, but we have to see the time
by 2016/17 had been brought down to been speeded up even further and now frame in which the infrastructure for it
`54,820 crore. This, along with falling barely takes nine to 10 hours. “The glut can be built,” he says. He is convinced it
interest rates, brought IOCL’s annual in oil prices has made spot market pur- will take a lot more time than envisaged.
interest payments down from `5,084 chases advantageous, but to make the “In the short-term future, the country’s
crore to around `2,000 crore in the most of them, decisions have to be taken appetite for fuel can only increase
same three-year period. The debt- quickly,” Ashok adds. and so will consumption of crude
equity ratio has improved to 0.55 Another major IOCL’s achievement oil,” he adds.
from 1.31 in 2014/15. during Ashok’s tenure was the commis-
“The improved cash position provid- sioning of the new 11 MMTPA refinery- @anileshmahajan

INDIA’s BEST CEOs
NAVIN AGARWAL, Chairman, Vedanta Ltd
Showing
the Way
Navin Agarwal spearheaded the
consolidation, debt reduction
and capacity expansions plans
of Vedanta group companies.
He has more on his plate. BEST CEO
BY NEVIN JOHN
(Medium Companies)
A
46,373.8 cr/ 15.2%
PBIT/ 3-yr CAGR
13,370.1 cr/ 72.1%

PAT/ 3-yr CAGR
9,744.6 cr/ 100.6%

3-yr Average TSR
58.7%
153%
bout a decade ago, London-listed Vedanta Resources first tried to sim- ROE/ ROCE
plify its corporate structure. But barely two weeks after announcing what it
called a mega-restructuring plan, the metals and mining giant had scrapped
14%/ 12.5%
the proposal as the swap ratio fixed for the merger and demerger of busi- CASH/ DEBT
nesses was not favourable for investors. Promoter Anil Agarwal didn’t give
up the consolidation plans and also continued with his aggressive acquisi- 1,413.9 cr/ 43,233.1 cr
tions in the Indian market – in iron ore and oil & gas. Around this time, Net Profit Margin
younger brother Navin Agarwal, who had played second fiddle for long,
emerged from the shadows to do micro level management of the Indian 28.7%
businesses. When Vedanta completed the $8.67 billion acquisition of Cairn
*For Oct 2016-Sep 2017
India in 2011, Navin was the first choice for becoming the chairman (he Standalone data; Total Income,
replaced Bill Gammell, founder of Cairn Energy). Later, in 2013, when Sesa items; TSR: Total shareholder re-
Goa and Sterlite Industries merged to form Sesa Sterlite – renamed later as turns; Source: ACE Equity
Vedanta Ltd, a subsidiary of Vedanta Resources – Anil handed over the top
post to his brother.

CHALLENGE
IS TO REMAIN
As chairman of both the entities, COMPETITIVE, at Vedanta Ltd (it operates in the zinc,
Navin pursued the consolidation plan ESPECIALLY IN lead, silver, aluminium, copper, iron
and merged cash-rich Cairn with THE COMMODITY ore, oil & gas and commercial power
Vedanta Ltd in the beginning of this DOWNTURN ” sectors). He also benefited from the
financial year despite the hiccups in recovery in the global commodity
the stock market. Cairn India share- markets during 2016/17. Together,
holders were not too pleased with the gas company. A section of shareholders these factors translated into a strong
merger and called it a raw deal for still feel that Cairn would have been in consolidated EBITDA of `21,437
them. The merger was seen by some a better position as a standalone entity crore, up 41 per cent, and free cash
as giving Vedanta the access to Cairn as it is now exposed to the volatility flow of `13,312 crore, a 15 per cent
India’s massive cash reserve of `17,000 and the lesser margins of the metals rise, in the last financial year. In the
crore at a time when it was saddled business (except zinc). past two years, Vedanta delivered total
with huge debt. Navin denied such Meanwhile, Agarwal has spear- cost and marketing savings of about
intentions and said that the move will headed the cost optimisation and `4,500 crore. It reduced gross debt
deliver economies of scale for the oil & productivity enhancement programme by over `4,000 crore in 2016/17 and

INDIA’s BEST CEOs
NAVIN AGARWAL, Chairman, Vedanta Ltd
View From The Top management adopted a disciplined

Zinc is the lifeline of the Vedanta group, accounting for approach in capital allocation, priori-
almost half its EBITDA in 2016/17 tising high-return low-risk projects to
maximise cash flows,” says an execu-
tive. In the last financial year, Vedanta
completed a $700 million capital
2015/16 2016/17
expenditure programme against the
3 original investment plan of $1 billion.
6
7 Ramping up existing capacities will
14 boost the cash flows with minimal
8 incremental capex requirement, says
9 the company. Subsidiary Hindustan
46 49
Zinc’s production capacity is expected
4 11
to touch 1.2 million tonnes (MT) by
2020. For Aluminium, the production
24 19 outlook in FY 2018 is around 1.5 MT.
It has also ramped up iron ore and
power production capacity.
Going forward, the company
Zinc Oil&Gas Aluminium Power Copper Iron Ore expects a modest escalation in their ca-
pex programme, as it explore opportu-
Figures in per cent; Source: Company
nities to expand the zinc and oil & gas
businesses. The company’s focus will
continue to remain on maintaining
strong credit metrics and using free
cash flows to drive further reduction in
gross debt. Former CEO Tom Albanese
is in the process of reducing it further when one should keep focus on the had said in the last annual report :
by `6,200 crore in this financial year. basics and get them right,” he explains. “We will only invest in high return
Vedanta Ltd registered consolidated Even during the weak commodity projects in our existing businesses.” He
profits of `9,873.26 in 2016/17, after a cycle, Vedanta’s output had buyers had added that the best days are ahead
loss of `17,862.62 crore in the previous though prices were low. “Hence we for the company as the commodity
year, on revenues of `71,721 crore, up remained focused on maximising markets had gradually started improv-
12 per cent. volume, reducing cost and operating ing from 2017.
“We are a large cap private sector at global best efficiency,” says Navin, Agarwal says that the group hopes
Nifty 50 company with a topline detailing their strategy. to be a major contributor to India’s
of about $12 billion and delivered Agarwal, who spearheaded the oil requirement and the ‘Make in
shareholder returns of over 200 per completion of organic projects and India’ thrust - it aims to ensure import
cent in FY 17, which demonstrates our acquisitions, plays a key role in the substitution of major commodities.
resilience to the cycle,” says Navin. “We strategic and governance framework “Towards this, we plan to invest $7-8
also contributed around $6 billion to of the group. He was the driving force billion over next few years to increase
the exchequer during the year, highest behind ramp up of production across domestic crude oil production, be the
amongst large conglomerates. With categories – zinc, aluminium, power world leader in zinc and successfully
debt-equity ratio of 0.6 and net gear- and iron ore businesses – and it even- run biggest roof top aluminium smelter
ing at 16 per cent, our balance sheet is tually strengthened revenue growth besides doubling the copper business in
probably the strongest in the country.” over the past two years. India.” With these initiatives, the com-
Navin feels that the produc- When the commodity cycle was pany has the potential to double its top
tion growth from their assets gives sluggish between 2012 and 2016, line and bottom line in the foreseeable
them a clear edge over competition. Vedanta remained focused on the future, Agarwal sums up.
“Challenge is to remain competitive, long-term strategic priorities. “The
especially in the commodity downturn assets continued to deliver, but the @nevinjl

LET THE PRODUCT
BE BIG, THE REST
WILL FALL INTO
PLACE”
BEST CEO
(PHARMA &
HEALTHCARE AND
SMALL COMPANIES)
1,971.2 cr / 45.6%
PBIT/ 3-yr CAGR
651.6 cr / 54.8%
PAT/ 3-yr CAGR
494.8 cr / 65%
3-yr Average TSR
102.1%
46.5%
ROE/ ROCE
P H OTO G R A P H BY N I LOT PA L B A R UA H
32.9% / 38.7%
CASH/ DEBT
25.1 cr / 220.6 cr
NET PROFIT MARGIN
24.7%
*For Oct 2016-Sep 2017;
items; TSR: Total shareholder re-
turns; Source: ACE Equity
INDIA’s BEST CEOs
V.C. NANNAPANENI, Chairman and Managing Director, Natco Pharma
Niche
Play
By following the strategy of doing a
few things well, V.C. Nannapaneni
has helped Natco Pharma carve
out a space for itself.
BY E. KUMAR SHARMA
A
t a time when stock prices of most big players in the phar-
maceutical industry have plummeted sharply on the bourses,
Hyderabad-based Natco Pharma stands out – the `2,078-crore
company has stood its ground despite ups and downs. Consider
this: in the past three years, Sun Pharma, the biggest Indian
pharma company, has seen its share price tumble from `827.2
to `578.8, taking its market cap down from `171,316.3 crore to
`138,860 crore. Lupin’s story is similar – its share price fell from
`1,429.7 to `899.2 and market cap slipped from `64,223.8 crore
to `40,644.1 crore.
Analysts often refer to how most companies are currently
trading at less than 50 per cent of their peak share prices two
years ago. However, Natco saw its share price move up from
`299.5 to `998.9 – closer to the 52-week high of `1,080. One
could argue that Natco’s US business had a low base, unlike the

INDIA’s BEST CEOs
other Indian players, but that it grew and competitor. We can live with that.”
dramatically since then is what made
the difference. Natco Pharma’s prolific Selective Strategy
run led the jury to unanimously choose Explaining the strategy for success
Chowdary V. Nannapaneni as the best in the past two to three years, Rajeev
CEO in two categories – pharma and says, “We never go after scale or vol-
healthcare and small companies. ume or multiple filings for marketing
So, what did Natco do right in this products in the US. The strategy has
period? Analysts say it is Natco’s ability always been to do limited number of
to pick its battles and capitalise on things, but all niche or hard-to-do
the opportunities, steered by a nimble generics.” The company tries to either
leadership structure that ensures More Than a Cancer be the first in the market or launch
quick decision-making. Nannapaneni, Slayer in India a product that is linked to a tricky
Chairman and Managing Director, patent litigation or have a product
1. Natco leads in the domestic
believes that the company’s strategy oncology market that is based on tough chemistry and,
of identifying niche opportunities has therefore, hard to replicate. “Tamiflu
2. It is growing in Hepatitis C
paid off. He credits his team – led by and gastro too
is a case of patent litigation, hepatitis
his son, the over-six-ft-tall Rajeev C was about technology and Copaxone
Nannapaneni, who is the vice chair- 3. Of the domestic sales of `880 generic is peptide chemistry with its
crore last year, Hepcinat,
man and CEO of the company – for a leading brand, alone very difficult characterisation
doing things right. Both analysts and contributed `170 crore challenges.”
industry folk see Rajeev, 40, as a pro- The Copaxone generic demonstrat-
fessional with a sharp ability to spot ed its chemistry skills – the API (active
opportunities and adept at keeping a pharmaceutical ingredient) going into
pulse on the happenings within the the drug is made by Natco. The drug is
sector. in two formats, 20 mg and 40 mg. For
Natco’s product launches in the 20 mg, Natco makes both the API and
US and India had a big impact on the formulation, and for the 40 mg, it
its growth. One was the launch of makes the API.
the first generic version of Tamiflu Analysts rate Natco’s chemistry
(Oseltamivir oral capsules), used to capabilities as noteworthy. Even in
treat influenza, for which Natco tied oncology, a key therapy area for the
up with marketing partner Alvogen company, the focus has been more on
in the US. In India, it was among the chemistry than biotech. It has 350
first to launch the hepatitis C basket employees in the R&D team out of the
of products – the drug and its combi- total 4,600 employees, up 30 per cent
nations – last year under a licensing
Big Recent from about two years ago. It has raised
agreement with Gilead Sciences. The
Launches in the US `915 crore from qualified institutional
launch of the generic version of Teva’s 1. Tamiflu generic capsules investors (QIPs), most of which will be
drug Copaxone for multiple sclerosis used on complex generics for the US
2. Generic version of Teva’s
in the US, with its partner Mylan, in drug, Copaxone, for multiple market, which has a longer gestation
the second half of 2017 was another sclerosis period, and on Indian branded gener-
major move. 3. Fosrenol generic – the key ics. In terms of therapeutic segments,
Typically, Natco’s strategy has been molecule here is lanthanam the focus is on three areas – oncol-
to work with a partner in markets like carbonate, used to deal with ogy, peptide chemistry-based therapy
the US. The partners handle litigation end-stage renal disease areas like drugs to deal with multiple
costs and marketing and share the 4. Doxil generic – ovarian cancer sclerosis, applications in oncology and
revenues in return. Alvogen, Mylan, injection diabetes, and drugs for cardiology and
Breckenridge Pharmaceuticals, Dr 5. Copaxone generic diabetology. The QIP incidentally
Reddy’s and Lupin are among its many 6. Generic Tamiflu suspension
has brought promoter holding down
partners. G.V. Prasad, Co-chairman from over 51 per cent to a little over
and CEO of Dr Reddy’s, says, “Natco is 48 per cent.
a smart company. It has been a partner How did the three product launch-

INDIA’s BEST CEOs
es impact the company financially? on the approaches then for this market
“Three financial years ago, we were a and he says it could include patent
`800-odd-crore company and became challenges and perhaps also options
a `2,100-crore (total consolidated like seeking revocation of compulsory
revenues) company in two financial licences.
years – the more-than-doubling of
revenues can be largely attributed to Journey So Far
these developments and our focus on It has not been a smooth ride for
doing a limited number of things,” says Natco. Nannapaneni was just 36
Rajeev. when, in 1981, he chose to return to
The company is also investing in India after working in the US in vari-
hiring bright brains from outside the ous pharmaceutical companies. He
company – it has hired people from founded Natco with a small loan that
Mylan and Dr Reddy’s – and also nur- he managed to secure and with sup-
turing and promoting those in-house. port from family. But it was not until
Of the 10-member core team, seven 2003 – 22 years since its founding –
have been with the company for that Natco got global attention when
15-20 years. it launched Veenat, the generic version
Big Launches of Swiss multinational Novartis AG’s
Revenue Split Coming Up anti-cancer drug Glivec (or Gleevec,
The company earns an equal amount 1. Revlimid (Natco and its as it is referred to in the US) in India
of revenue – about 40 per cent – from partner have settled the at one-tenth the cost of the listed
the US and India, though the senior litigation with the innovator price, and later in 2013 when it beat
management admits there are avenues Celgene Corporation for Novartis in its patent protection battle
launching the generic version
to grow the business further in India. of its blockbuster anti-cancer for the drug.
“Two years ago, about 70 per cent of drug – multiple myloma “Let the product be big and the rest
the resources were used for the US capsules) will fall in place,” says Nannapaneni,
market and a bulk of the rest for India. 2. Generic version of who takes fitness seriously and is up
Now it is 50:50.” GlaxoSmithKline’s anti-cancer everyday at 4 am and in office at 8.40
The US market poses multiple drug Tykerb am. He says it is pointless if the focus
challenges, the biggest being 3. Generic for Bayer’s Nexavar, is only on making the company big.
consolidation of customers. “This has the anti-cancer tablets While he is around to mentor and
(molecule – Sorafenib) for
led to price erosion in a lot of products, liver and kidney cancer. (This guide, it is Rajeev who is seen as driv-
and unless you have a unique generic was the product for which it ing Natco’s operations.
in the US, it has become very difficult got a compulsory licence in In the next one year, Natco will
to sell there. Plus, filings by Indian India from Bayer. Natco hopes build on its strategy to launch more
to eventually launch this in
companies continue, leading to more the US too) niche products in the US linked to
competition. All of this is unlikely to patents and regulatory approvals. In
change dramatically in the coming India, Natco harbours hopes of moving
years, so it makes sense to focus on In- up in the pecking order. From among
dia,” Rajeev says, quickly adding, “You the top 25 today, it wants to break
should still do US because you cannot into the top 20 in the next three years.
ignore the world’s largest generic mar- “We have a good portfolio in India
ket, but you need to choose the battles which has the potential to double in
you want to fight.” the India opportunity. “In hindsight, I the next three years. Last year, we did
In India, the market is fairly think the industry, including us, made about `880 crore in revenues in the
competitive and that’s the real chal- a mistake. We should have done more domestic market, largely on account
lenge; but because it is a branded products in India than we actually did. of the hepatitis C portfolio. We are
generic market, one needs to make We all ended up overdoing US and hoping to double this in the next three
smart products to be more financially undervaluing India. This needs correc- years or earn about `1,500 crore,” says
stable. Pricing issues, in terms of price tion. India offers a lot of potential – it Rajeev.
controls, and regulatory challenges are is a growing economy and the purchas-
other hassles. But Natco is bullish on ing power is rising each day.” Ask him @EKumarSharma

INDIA’s BEST CEOs
VARUN BERRY, MD, Britannia Industries
Enlarging
the Pie
Varun Berry aims to make Britannia
Industries a total foods company
in another three years.
BY AJITA SHASHIDHAR
THE BIGGEST WIN

HAS BEEN THE TEAM.
IT’S VERY YOUNG,
PASSIONATE AND
OPEN TO IDEAS”
f you are under 30 and aspire to make board-level decisions, Britannia Industries may
be just the place for you. The `10,000 crore biscuit maker has a young management team
that takes crucial decisions related to new product launches as well as categories the com-
pany should venture into. The team members also travel across the globe to understand
P H OTO G R A P H S BY N I LOT PA L B A R UA H
trends and get ideas for Britannia's product portfolio.

Earlier this year, the company entered into a joint venture with a Greek company,
Chipita SA, to make long shelf-life croissants with chocolate filling. The idea, says Varun
Berry, Managing Director, came from this very team of managers. “They told us they
are always in a hurry and need a snack which is filling, delightful, an on-the-go kind of
an offering. To give it a more Indian context, they said they were looking for a healthier
samosa-type option. After listening to them, I looked across the globe for partners who
could help us create such a product and finally zeroed in on Chipita.” The croissant facility
is coming up near Pune. The product should be on shop shelves towards the end of 2018.
Thanks to initiatives such as these, Britannia Industries, ever since Berry took over
in 2013, has been registering an impressive revenue growth of 15 per cent. Profits have
grown by close to 40 per cent a year in the last five years. Berry, 56, admits the company’s
stellar growth has been instrumental in attracting the young talent he is so proud of. “The

BEST CEO
(FMCG)
8,559.2 cr/ 10.5%

PBIT/ 3-yr CAGR
1,252.5 cr/ 30.2%

PAT/ 3-yr CAGR
843.7 cr/ 29.4%

3-yr Average TSR
69.6%
18.3%
ROE/ ROCE
36.8%/ 54.5%
CASH/ DEBT
53.5 cr/ 0.6 cr

Net Profit Margin
9.7%
Standalone data; Total income,
return; Source: ACE Equity
biggest win has been the team.

It’s young, passionate and open to
ideas. I don’t think many compa-
nies can do so many things at the
same time with such a tight team.
That’s my biggest pride.”
While a young team helps the
company connect with consumers,
60 per cent of whom are below 30,
Berry’s people skills and ability to
attract talent is well known. “Varun
has the ability of spotting potential
in people who are lost in the crowd.
I am one of them,” says Hemant
Rupani, Director (Sales), Mondelez
India, who was earlier head of sales
at Britannia.
INDIA’s BEST CEOs
VARUN BERRY, MD, Britannia Industries
SLICING THE MARKET such as breads, cakes and croissants

Britannia is the market leader in sweet biscuits and bread (a `1,300 crore business, which Berry
expects to grow by another `1,200 crore
SWEET BISCUITS MARKET SHARE
in the next couple of years), but also in
dairy. Berry wants Britannia to become
a total foods company. He has been
talking about going back to the drawing
Britannia board as far as his `400 crore dairy busi-
Parle Products
Industries ness is concerned for a while now, and
Pvt. Ltd
31.20% 28.50% that is finally seeing the light of day. The
ITC Group company is experimenting with milk
15.40% collection in villages around Pune and
would soon venture into value-added
milk products. “To become big in the
Source: Euromonitor value-added milk space, it’s important
to have our own back-end. At present,
BREAD MARKET SHARE we are just traders (the company’s dairy
products are outsourced),” he says. He
plans to hire a high-profile CEO for the
Britannia Modern Food
dairy business. “We are in talks with
Industries Ltd Enterprises ID Fresh Food
several European, American and Dutch
31.20% Pvt Ltd (India) Pvt Ltd
5.70% 0.80% companies for a possible partner-
ship.” Vishwanth of Vertebrand says
Britannia is in a sweet spot as it has the
distribution and supply chain in place.
“The moment you fix the backend, you
are on a stronger platform to get into
joint ventures. The foundation is strong
Focus on Basics Berry has also made the company enough to move from second gear to
The key to an FMCG company’s success, much more cost conscious. Apart from fourth gear.”
apart from great products, is a robust ensuring that the distributors follow a The cookie major is also considering
distribution network, and that is exactly ’zero days’ inventory model, he also let expanding its international footprint
what Berry has been focusing on. He go of third-party resources, both in sales more aggressively. While 2018 will
has been adding 2.5 lakh retail stores and manufacturing. He replaced a lot of see a new manufacturing plant in
to the direct distribution network every third-party manufacturing by building Nepal, Berry’s target is to enter a new
year. “This year again, we will add 2.5 new plants in Gujarat and Orissa. “We geography every year (mostly emerging
lakh outlets, so we will probably end continuously work on getting costs out markets such as Myanmar, Bangladesh
up covering 17.5 lakh outlets directly. of the system. The team, right to the and African countries) from now on.
The difference in market share between frontline, is aware of our cost-conscious Britannia Industries, under Varun
where we go directly versus where we go approach,” points out Berry. Berry, is undoubtedly on a high. So,
through wholesalers is about 20 share Raghu Vishwanath, MD of brand what sets it apart from other food com-
points,” says Berry. Of these, 13,200 are valuation company Vertebrand, has two panies, especially the multinationals?
rural distributors. The company had just words to describe Berry — ‘efficient’ and “Our P&L spine is such that our cost
1,000-odd rural distributors in 2013. ‘effective’. “Berry has focused on get- is very tight. The total margins in this
Hindi-speaking markets have been a ting the backend right rather than new category are nowhere compared to what
weak area. But Berry says they are now launches. This has resulted in efficiencies MNCs are used to. These companies
doing exceedingly well in these markets in sales & distribution,” he says. don’t have the P&L spine to support a
after strengthening the distribution net- low gross margin product. We are struc-
work and selling the right products. “In Future Growth tured such that we can support these as
the last two-three months, we have been While biscuits, where Britannia is well as higher gross margin products,"
facing shortages in these markets as our market leader, will continue to be the says Berry.
products are being sold out earlier than mainstay, the company is looking at
expected,” claims Berry. growing in not just adjacent businesses @ajitashashidhar

INDIA’s BEST CEOs
YADUPATI SINGHANIA, Chairman and Managing Director, JK Cement
King of
Cawnpore
The 64-year-old chairman and managing director
of JK Cement is a self-effacing mix of legacy and modernity
who remains rooted to Kanpur.
BY SUMANT BANERJI
A
s a member of one of India’s oldest and most prosperous busi-
ness families — the JK Group, 64-year-old Yadupati Singhania is
averse to any ostentatious show of wealth. Still operating out of
the 90-year-old Kamla Towers in Kanpur's busy Jareeb Chowki
area, Singhania disregards the luxury of a big German sedan and
opts for a modest Maruti Ciaz for the half-hour drive to office
from his ancestral home, Ganga Kutir. Even the smaller and less
stately Mercedes B Class that was bought for him a couple of years
ago has been discarded. “Look at the congestion and narrow roads
here. A Maruti is best for Kanpur,” he says.
Dressed casually in a woollen pullover, seated atop an antique
80-year-old family chair, Singhania looks frail for his age the day
we meet him on a particularly foggy December morning. It is a
picture of a contented man who has seen much in life. Singhania
feigns a mock surprise when told he has been adjudicated as the
best CEO for the cement industry and is at a loss to explain what
makes him special.
“The vision is to grow just like any other company aspires to.
I don’t think we have done anything different. We are doing what

BEST CEO
(Cement)
3,848.6 cr/ 10.6%

PBIT/ 3-yr CAGR
609.4 cr/ 28.3%

PAT/ 3-yr CAGR
278.9 cr/ 42.2%

3-yr Average TSR
70.7%
42.0%
ROE/ ROCE
14.4% / 13.2%
CASH/ DEBT
418.9 cr / 2,677.4 cr
PHOTOGRAPH BY REUBEN SINGH
Net Profit Margin
5.90%
*For Oct 2016-Sep 2017;
returns; Source: ACE Equity
we have been doing all the time. It just taxed heavily. There is also a perception
happens that we are performing bet- that the industry is opaque; charges
ter,” he says. “Compared to others, you of cartelisation often surface, and it
would have a better idea as an observer OUR GROWTH IS is continually under the radar of the
(outsider) to gauge what we are doing A TESTAMENT TO Competition Commission of India.
differently. Because internally, I do not OUR PERSISTENT Despite these challenges, JK Ce-
see anything different.” EFFORTS IN COST ment has been an out-performer. Its
REDUCTION,
Cement is a rather peculiar in- BROWNFIELD revenues, `3,848.6 crore between Oc-
dustry in India. For all its importance EXPANSIONS AND tober 2016 and September 2017, have
in nation building — construction of OTHER EFFICIENCY grown by an average of 10.6 per cent in
houses, bridges, roads and ports, it is INITIATIVES” the last three years. In the same period,

INDIA’s BEST CEOs
YADUPATI SINGHANIA, Chairman and Managing Director, JK Cement
profit after tax has grown by 42.2 per been the case in the last five-six years,”
cent. The growth has been recognised says Singhania. “There is lot of talk on
by investors. Its average market capi- infrastructure but there is not so much
talisation in the last one year has gone (work) on the ground. There is surplus
up by 42 per cent. in housing in big cities. That segment
Till a few years ago, the company is gone right now. I do not see a sudden
was dragged by its factories which, like change or uptick in demand.”
the head office, were antique. Unlike a The negative image of the industry
heritage building, though, factories do also acts in the way of the government
not get any brownie points for being acting in its favour. Cement is one of
old and need to be continually up- the most taxed at 28 per cent under
graded. That is what the company did. the new GST regime. In contrast, steel,
“There has been a general slowdown in which has much the same use, is taxed
the industry that is affecting everybody. Factsheet at a much lower rate. “The industry has
From our own end, we have added definitely a negative image. Taxes were
1. It was on Singhania's
new capacities, as old factories have a always high.”
insistence that JK Cement
tendency to be inefficient. The realisa- forayed into white cement Personally, he is more disappointed
tion that we needed to upgrade our in 1984. It is reaping the with the situation of his city. Once the
capacities was there all the time. It was dividends now industrial hub of north India, Kanpur
just that we were not able to do things 2. He has modernised most of was often referred to as the Manchester
because of certain constraints,” he says. his factories, bringing down of the East in the pre-independence
the cost of fuel and improving
“Once we were able to do it, we did era. JK Group’s genesis in the city be-
efficiency
it. We have to be modern and plants fore part of the family branched out to
have to be efficient. Energy is a big cost 3. He is an avid reader and Kolkata, Mumbai and Delhi, had a big
a collector of antiques. A
factor as new plants consume much 20-acre property, Kamla impact on the city. Even though all of
less energy. So, one has to be competi- Retreat, in Kanpur houses his JK Cement’s factories are in Rajasthan
tive and keep investing in modernisa- collection. and Karnataka, Singhania remains
tion. When you are financially strong, 4. His fleet of vintage cars rooted to the city of his birth.
you can do it. So, 70 per cent of our includes two Rolls Royce “Some parts of the company and
capacity today is new.” Another major Silver Ghost 1918 & 1922, one some other industries have moved out.
New English Phantom I 1925,
contributor has been the early mover 1 Buick, a Studebaker and a But I have been born and brought up
advantage in white cement and wall very rare Daimler Double Six in this city so you can say it is inertia,”
putty. White cement is a niche design- Model 1928. he reminisces. “If you ask a third
oriented commodity where margins person, he will say Kanpur is a horrible
are more than five times that of grey place. Nobody has a good opinion
cement. The IIT-Kanpur alumnus about this city. There is disappoint-
foresaw the opportunity way back in ment with what the city has become.
1984 when JK Cement set up country’s When UltraTech came up with its Other small places which did not exist
first dry process white cement factory. own white cement plant in 1987/88, it earlier have moved ahead. Noida for
Today, white cement accounts for 37 simply followed what we had done. We example. In UP, for the last 20-25
per cent revenues, among the high- have established ourselves very well in years, no industry has come up. This
est in the industry. JK Cement is the this segment and our market share is city has been neglected.”
second-largest player in this segment growing in both these categories.” His preference for Kanpur over
with nearly 40 per cent market share. The company is expanding even in all the other fancy cities he can settle
“You can say we sowed the seeds three grey cement. It plans to add up to eight in—his wife is from Chennai -- is very
decades ago and the result has been million tonnes per annum capacity in much in consonance with Singhania’s
more visible in the last four-five years,” the next five years, which will take its personality. Just like he opts for a
he says. overall capacity to 18 million tonnes. Maruti over a Mercedes. His favourite
“Our white cement business, Capacity expansion in cement is a however, remains parked inside his
especially the wall putty, is growing at tricky issue as predicting demand is garage in Ganga Kutir. It is a 100-year-
a 14-15 per cent rate year on year,” says nearly impossible. “We may project old Rolls Royce Silver Ghost.
Chief Financial Officer A.K. Saraogi. demand and ramp up capacity but the
“It took time as it was a new product. demand may not happen. That has @sumantbanerji

INDIA’s BEST CEOs
SAJJAN JINDAL, Chairman and Managing Director, JSW Steel
Steely
Resolve
Steel baron Sajjan Jindal
beefed up capacities
and turned around sick
steel mills during the
commodity downturn.
R
BY NEVIN JOHN
ecent economic turbulence has made steel magnate Sajjan Jindal mised logistics and procurement costs
resilient and wiser. In 2015/16, when demand was picking up in India, he and refocused on improving yields and
shifted JSW Steel's focus to the domestic market, widening its footprint in productivity. As a result, the standalone
the south and developing new markets in the east and north east. Besides, operating profit (earnings before inter-
he enriched the product mix with new steel grades, enhanced quality bench- est, tax, depreciation and amortisation
marks and rationalised cost structure to reduce erosion of margins. But the or EBITDA) for 2016/17 grew by 81 per
steel demand scenario changed after the central government demonetised cent to `11,543 crore, and the EBITDA
high value currencies in September 2016. Jindal demonstrated his agility by margin increased to 22.1 per cent from
boosting exports and changing the product mix to offset the domestic slow- 17.4 per cent. The sales of high margin
down. Consequently, export volume sales rose by 153 per cent in 2016/17. value-added steel, which comes to a
The export turnover increased by 295 per cent to `10,922 crore. sizeable 34 per cent of the overall sales,
During the lean phase in recent years, Jindal has initiated performance climbed 17 per cent to 5.06 million
improving initiatives. He introduced a diversified sourcing strategy; opti- tonne (MT). Net debt to EBITDA im-

BEST CEO
(Metals & Mining)

57,789.8cr/8.2%
PBIT/ 3-yr CAGR
8,774.1r/11.2%
PAT/ 3-yr CAGR
3,576.5 cr/ 5.7%

3-yr Average TSR
32.8%
54.2%
ROE/ ROCE
16.1%/ 14.7%
CASH/ DEBT
1,027.0cr/
38,595.5cr
Net Profit Margin
6.3%
proved to 3.41 from 6.39 and net debt in future. We have a very aggressive
to equity improved to 1.85 from 2.18. growth strategy and a very efficient
In the last financial year, JSW Steel project monitoring team. It ensures
produced 15.8 MT crude steel – highest that we continue to build steel plants at
“WE HAVE A VERY ever for the company – after the addi- nearly 50 per cent cost compared to our
AGGRESSIVE GROWTH tion of new capacities at its plants in competitors globally,” he says.
STRATEGY AND A VERY Vijayanagar, Dolvi and Salem. JSW Steel has also outlined a
EFFICIENT PROJECT Jindal told Business Today that JSW `26,800 crore capital expenditure
MONITORING TEAM Steel will add capacities organically and (capex) programme to expand overall
WHICH ENSURES THAT WE
CONTINUE TO BUILD STEEL inorganically to stay ahead of competi- steelmaking capacity to 23 MT by
PLANTS AT NEARLY 50 PER tion. “Today we are the largest steel March 2020, up from 18 MT. "These
CENT COST COMPARED TO producing company in India and we key projects will be set-up at a very
OUR COMPETITORS.” will continue to be in the same position competitive capital cost and will im-

INDIA’s BEST CEOs
SAJJAN JINDAL, Chairman and Managing Director, JSW Steel
prove our return ratios,” Jindal said in THE PECKING five iron ore mines in Karnataka with
the company's annual report. The capex ORDER an estimated reserve of 111 MT in Oc-
plans have been outlined to achieve The top three in steel tober 2016. These are expected to meet
backward and forward integration, capacity around 20 per cent of the Vijaynagar
capacity expansion and cost reduction. plant's requirements. The company also
JSW Steel won a mine in Jharkhand, which has
Risk Appetite extractable coal reserves of 30 MT.
Jindal’s JSW Steel had contrasting Jindal believes that there are enor-
fortunes when the steel cycle slipped
twice in the past two decades. In the
18 mous opportunities in India. “JSW
Group has performed well in a chal-
late 1990s, when the young Jindal was lenging environment. I always tell my
building the steel plant at Vijaynagar SAIL colleagues and team members to look
in Karnataka, the industry was in at each crisis as an opportunity,” he says.
the doldrums and steelmakers had Why is Jindal bullish on steel? JSW
become loan defaulters. Jindal’s Jindal 17.5 forecasts a shortage of steel in 2021.
Vijaynagar Steel Ltd (later merged with The effective capacity of steel compa-
JSW Steel) was one among them and it nies is 110MT in the country. Last year,
took five years for the company to come TATA the country consumed 97 MT of steel
out of corporate debt restructuring STEEL and steel demand is growing at 4-5
(CDR). The second time the steel in- per cent. With an incremental demand
dustry crashed, post the global financial
downturn, JSW Steel was financially 12.7 of 5MT a year, the surplus of 13 MT
available today will be absorbed in the
sound enough to play the predator, next two years. So, there will not be any
Figures in
scouting for sick assets. JSW Steel million tonnes capacity available to meet the growth
acquired Ispat Industries and Welspun in demand by 2021 and will lead to
Maxsteel and evinced interest in acquir- imports, underscores Jindal.
ing sick steel assets like Bhushan Steel Indeed, nobody is investing in steel
and Monnet Ispat before they were despite the price pick up. Steel prices
taken to the National Company Law have risen 10 per cent in the past six
Tribunal by its lenders for defaulting on months. “Banks are not funding steel
loans. The struggle of the steel industry dumped steel at predatory pricing – because of NPAs. Steel companies are
hasn’t reflected much in the financials over the past few years was hurting the not being able to spend on new projects
of JSW Steel in these years. The com- domestic industry, he elaborates. because of stress in balance sheets.
pany has always posted operational Overall, the import duty on Chinese There is a problem. JSW Steel is finan-
profits – even after the global financial steel products helped the Indian cially well positioned to take a call on
crisis and fall of commodity businesses. industry recover. However, JSW Steel investments. So we can be ready by the
Since the downturn (between 2008 was always better placed than its peers. time there is a demand growth,” Rao
to 2017) its standalone revenues have "Our company can convert iron ore into recently told Business Today.
grown nearly five times to `56, 913 steel at a cost of $115 per tonne, which JSW is doubling crude steel capacity
crore and its profit more than doubled is the world's most economical," said at Dolvi to 10 MT at an investment of
to `3,576.5 crore. It has expanded its Seshagiri Rao, Joint Managing Director `15,000 crore. The company has taken
range of steel from flats, long, special and group CFO of JSW Steel, recently. up revamp and capacity upgradation
and value-added categories to include The average cost of the players without of third blast furnace at Vijayanagar
high value-added, auto and electrical mines in India is above $250 a tonne. at an estimated project cost of `1,000
grade steel as well. It had a net debt of The Supreme Court’s decision of crore. The company is also investing
`41,549 crore at the end of last fiscal. August 2011 to ban mining in Karna- in downstream projects – cold rolling,
“Between 2009 and 2012 a lot of taka's Bellary-Hospet region was one galvanizing, tin plate and colour coated.
capacities were created in India in vari- of the major hurdles for JSW Steel. It JSW is mainly into core sectors and
ous sectors. This led to excess capacity was sourcing 50 per cent of the iron ore with GDP growth estimated at 7-8 per
in most industries,” says Jindal. Even for its Vijaynagar plant from there. It cent “enormous opportunities will come
though the Indian steel sector is one of was a lesson for Jindal and he pursued our way”, believes Jindal.
the most competitive in the world, the acquisition of iron ore and coking coal
strategy of distress exports by China – it mines thereafter. JSW Steel acquired @nevinjl

INDIA’s BEST CEOs
ROMESH SOBTI, MD & CEO, IndusInd Bank Ltd
Double
the Bank
Romesh Sobti, who has turned around the mid-sized
private sector bank over the past 10 years, is now
working on doubling the size in the next three years.
BY ANAND ADHIKARI
W
IT’S AN AMBITION
(DOUBLE THE BANK). WE
HAVE DONE IT TWICE IN
THE LAST TWO PLANNING
CYCLES DURING 2011/14
AND 2014/17. HOPEFULLY,
WE WILL DO IT AGAIN.”
hen foreign banker Romesh Sobti took charge at the mid- revenues are in upwards of `10,000
sized IndusInd Bank a decade ago, there were not many who crore and balance sheet is nearing the
would have believed in his vision to transform the private bank. `200,000 crore mark. Yes Bank, Kotak
The new generation private bank had legacy issues (Ashok Bank and IndusInd Bank are all mid-
Leyland Finance was merged with it), belonged to a corporate sized banks in terms of balance sheet.
house (Hindujas) and other private banks like HDFC Bank, There’s more. This Mumbai head-
ICICI Bank and Axis Bank (earlier UTI Bank) had taken a quartered bank has generated immense
huge lead both in terms of brand acceptability and also perfor- wealth for the shareholders. The bank’s
mance. The global financial meltdown was gradually spreading market capitalisation has risen from
from the US and Europe to emerging markets like China and `4,000 crore a decade back to close to
India. It was probably the most difficult business cycle for any `100,000 crore. Sobti is now more am-
new CEO. But Sobti did the unthinkable and succeeded in bitious. He plans to double the business
turning around the fortunes of the bank. Take a look. When numbers (loans, profits and customers)
Sobti joined the bank, profits were paltry at around `100 crore, over the next three years. “It’s an ambi-
revenues stood at `500 crore and balance sheet size at just tion. We have done it twice in the last
`20,000 crore. Today, profits have pole valuted to `3,000 crore, two business target cycles during 2011-

BEST CEO
(Banks)
18,577.2 cr / 22.3%
PBT/ 3-yr CAGR
4359.7 cr / 27%
PAT/ 3-yr CAGR
2,867.9cr / 26.8%
3-yr Average TSR
43.5%
36.9%
ROE/ ROA

15.3% / 1.9%
NET NPA
0.4 %
Net Interest Margin
4.0%
*For Oct 2016-Sep 2017
PBT & PAT net of extraordinary
14 and 2014-17. Hopefully, we will do

it again,” says Sobti, who has over four
decades of work experience in public,
foreign and private banks.
This exceptional performance year
after year has put Sobti amongst the top
performing CEOs in India. The 67-year-
old has emerged as the Best CEO in the
banking category in Business Today's
annual listing of Best CEOs.
Sobti’s journey at the bank started
with diversifying the portfolio as there
was excessive dependence on commer-
cial vehicle financing. Today, the bank
is much more broad based. In fact, the
bank has always been on the lookout
INDIA’s BEST CEOs
ROMESH SOBTI, MD & CEO, IndusInd Bank Ltd
The Turnaround … and also

improved
Journey
67.21%
efficiency and
profitability
598
Revenues (Source:
46.7%
10,234 Annual Reports,
Sobti Scaled Up presentations)
36.9%
75 The Bank...
Profits
2,868
(In `Crore)
15.26%
19,037
15.7%
Deposits
1,26,572
6.76%
1.86%
0.34%
12,795
Advances
1,13,081
23,261 Cost To Return

Total Assets Income On Assets
1,78,648
CASA Return
2007/08 2016/17 Deposits On Equity
for diversification in products, customer Later, Sobti managed this business at Sobti says the full ecology of players –
base and also geography. In the last ABN Amro where he was the head for banks, payment companies like Visa and
decade, the bank exploited the oppor- almost a decade. IndusInd's own mi- Mastercard, payments banks, FinTechs,
tunity in urban and semi-urban areas. crofinance book before the merger was business correspondent using technol-
Sobti, like every other banker, saw a `3000 crore. With the acquisition, the ogy – are available for collaboration. “It
huge opportunity in the rural and semi- book will swell to `13,000 crore. is not so much about competition. It is
urban areas. In fact, in the last two years The expanded network in the more about collaboration. This whole
the bank has been strategising how to semi-urban and rural areas would ecology will collaborate,” says Sobti.
cover these new emerging centres. The help the bank in pushing many of the IndusInd bank is already working with
market got more clarity when Sobti’s banking products. “We can do savings, Fintechs like Mobikwik and PayTM Pay-
bank pounced on micro lender Bharat payments, micro insurance, consumer ment Bank.
Financial Inclusion. This micro finance goods financing and other banking Sobti is using digitisation to increase
institution fitted very well into the bank’s products,” says Sobti. The new network productivity in the backend and to cre-
strategy of diversifying products, cus- has also opened many new possibili- ate lower cost delivery to customer. The
tomer and geography. “This acquisition ties. For example, consumer durable changes are already visible. Typically, a
will do all that for us,” says Sobti, who financing is something the bank plans metro branch of IndusInd Bank used to
is getting a network of 1,400 branches, to explore in future. NBFCs are already be 2,500 square feet. It is today 1100 sq.
loan book of close to `10,000 crore and raking in money in this low ticket size, feet. “What we do inside the branch has
6.8 million micro loan customers.. high volume business. Some banks are changed because everything is central-
Sobti has actually never shied away exploring the potential in this business ised,” says Sobti.
from acquisitions. The bank acquired because of digitisation. The bank is also Clearly , Sobti has set the agenda for
Deutsche’s credit card business in 2011. betting big on emerging business like future. The bank’s board will now have
It was the bank’s entry into the card insurance and wealth management. to take a call on Sobti’s successor. “I can
business. Similarly, five years later, it The bank also has domain expertise in only give my advice. The board will take
bought RBS’s diamond and jewellery vehicle financing, micro finance and the final decision,” says Sobti, whose
business to grow this new business. diamond financing. “Taking leadership three year extension ends in January this
Just before Bharat Financial, the bank in domains takes years,” says Sobti. year. Currently, the bank’s top manage-
bought IL&FS Securities Services that Sobti is also using the partnership ment is from foreign banks. Sobti, who
was into loan against shares, depository model to grow the bank. “Why should can continue till 70, says there is a desire
and custodial services to investors. you invent what somebody else does to create continuity of thoughts and
Micro finance business is not some- better than you,” says Sobti. The bank action. “ We have a deep bench strength,”
thing new to Sobti. He did it as a banker has a very long term partnership with he signs off.
at the largest bank in the country, the HDFC Ltd for housing loans. In the
State Bank of India, in his initial years. new emerging digital banking world, @anandadhikari

INDIA’s BEST CEOs
KAPIL WADHAWAN, Chairman and Managing Director, DHFL
Bringing in
New Energy
Kapil Wadhawan has built a large financial
services empire by serving people at the
bottom of the pyramid.
BY ANAND ADHIKARI
W
IT'S BEEN 33 YEARS.
WE HAVE A LONG
JOURNEY AHEAD.
WE ARE WELL SET
TO GROW AND FACE
COMPETITION”
hen Kapil Wadhawan came to India after getting a management degree `10,826 crore, loan book of `1,31,415
in finance from Australia, his father Rajesh Kumar Wadhawan, who crore and net profit of `2,896 crore.
had founded Dewan Housing Finance Ltd (DHFL) in the early 1980s, Reasons for such high growth have
gave him the task of inspecting expense vouchers. The housing finance been aggressive organic growth as well
company, with focus on lending to people in lower- and middle-income as acquisitions that Wadhawan has
groups, reported a marked drop in costs. Wadhawan, now the chairman been able to successfully execute. The
and managing director, loves to share the cost management insights that journey has involved diversifying from a
he gained during that stint with his colleagues. “These are important home loan company to a much broader
things for people to look at,” he says, sitting at his office in the Bandra financial services player offering educa-
Kurla complex. tion/SME loans and also entering life/
Wadhawan took the company’s reins from his father in early 2000. That general insurance and mutual fund
time, sales revenue, loan book and profits were `103 crore, `1,033 crore businesses. More new businesses are on
and `16 crore, respectively. In 2016/17, the company reported a revenue of Wadhawan’s radar.

BEST CEO
(Financial Services)
8,945.4 cr/ 21.6%

PBT/ 3-yr CAGR
3,371.8 cr/ 66.2%

PAT/ 3-yr CAGR
927 cr/ 20.6%

3-yr Average TSR
64.1%
86.1%
ROE/ ROCE
45%/ 12.9%
NET NPA
0.6%
Net Interest Margin
3%
PBT & PAT net of extraordinary
and exceptional items; TSR: Total
shareholder returns;
Source: ACE Equity
Small Beginning housing became the buzzword. He made was first exposed to the company in the
It was in the early 1970s, when the frequent trips to the United States to early ’90s, while he was studying for his
Wadhawan family, led by grandfather understand the two big housing finance undergraduate degree. His father asked
Kuldeep Singh Wadhawan alongwith institutions there – Fannie Mae and him to understand credit underwriting
Kapil’s father Rajesh Wadhawan and Freddie Mac. DHFL was the second and deposit mobilisation. “I used to take
uncle Rakesh Wadhawan, entered the housing finance company to be set up interviews of potential homebuyers.
real estate business starting with the in the country in 1984, the first being There were also senior people guiding
outskirts of Mumbai. In the ’80s, Kapil HDFC in 1977. me,” says Wadhawan, who joined the
Wadhawan’s father saw potential in the Over the next few years, DHFL company as executive director in 1997.
bottom of the pyramid – housing, after adopted a hub-and-spoke model and His father was not keeping well and died
all, was one of the items on the national went about opening branches in bigger in 2000. The responsibility of managing
agenda, part of the famous roti, kapda places and service centres in semi-urban the company fell on his shoulders.
aur makaan – decades before affordable and rural areas. The young Wadhawan “It was too early to make a change.

INDIA’s BEST CEOs
KAPIL WADHAWAN, Chairman and Managing Director, DHFL
26
,8
3
10
69
The Journey
s
It was more about settling down,” says
ue
The company has seen huge
en
Wadhawan, who is all praise for the
improvements on all financial
ev
senior management for their support
sR
parameters over the years
during those days. The policy of hiring 1,31
103
,415
os
young MBAs also helped him. Though
85
Gr
the foundation of a business with focus
on Tier-II and Tier-III cities had already
Cumulative D
been laid, Wadhawan brought in new isbursements
energy. Insiders say he started engaging 1998/99
12
with big institutions, regulators, govern-
9,368 16 2000/01
ments and banks. As a non-banking
financial services player, the company 2009/10
91
was facing resource mobilisation chal- 2016/17
PA
lenges. Around the same time, banks Figures in ` crore,
33
T
1,0
were also entering the secured home Source: Company
loan space. The challenges included

mobilising resources, building the asset 9
2,896
70
side and taking on the might of the Wadhawan’s
banks. One of the first things Wadhawan Contribution
did was to connect with top consultants
for business process engineering. The 1. Stabilised the company after insurance licence. The mutual fund
consultants suggested a new technologi- his father’s death business is also now fairly
cal architecture involving things such 2. Created a successful business well established. Going forward, Wad-
as different scoring models for salaried model serving people at the hawan is closely watching the distressed
and non-salaried people. “It was a bottom of the pyramid assets space.
good tightrope walk. We slowly started 3. Made a successful acquisition DHFL will face challenges from new
maturing in our approach,” he says. True in the housing finance space finance banks that are setting shop in
to its DNA, DHFL still caters to the 4. Expanded into life insurance small town and cities. Then there are af-
middle-income group with average loan and mutual fund fordable housing finance NBFCs that are
size of `14-15 lakh. 5. Secured licence for general on an expansion spree. The banks are
insurance only growing bigger in mortgages. “It’s
Growth Push been 33 years. We have a long journey
A major highlight of Wadhawan’s jour- ahead of us. We are set to grow and face
ney over the last one and a half decades competition,” says Wadhawan. While
has been inorganic growth. Within a DHFL is the flagship company, Wad-
few years, he pounced on the home hawan has created a holding company,
loan division of ING Vysya Bank. What Wadhawan Global, for housing financial
upset him that time was the buzz in the Home Finance) in December 2010. This services businesses.
market that DHFL would become an company, with focus on slightly more A decade ago, the family started a
acquisition target. “We are an acquirer,” affluent sections, was later merged with process for an amicable settlement of
he had thundered that time. The acqui- DHFL. Acquisition is one area where cross-holdings. Wadhawan now inde-
sition got DHFL a base in South India Wadhawan still keeps his eyes and ears pendently manages DHFL, while his
and accounts from the Vysya trading open. uncle Rakesh Kumar Wadhawan and
community. This business was later Wadhawan is also betting on a larger cousin Sarang Wadhawan manage real
merged with Aadhar Housing Finance – financial services play. In the lending estate firm HDIL.
an initiative to provide housing finance business, he has already expanded into When asked about his favourite
to economically weaker sections in UP, SME loans, loan against property and leaders, he responds without blinking an
MP, Orissa, Jharkhand, Chhattisgarh education loan. He has also entered life eye: “I admire my entire management
and Bihar. Aadhar, with International insurance.“We are going to see a lot of team. They have taken on the mantle of
Finance Corporation as a partner, has consolidation in the life insurance sec- doing extraordinary things. They are my
average loan size of `7.5 lakh. Wadha- tor,” says Wadhawan. “We will surely put real heroes.”
wan also acquired Deutsche Postbank our hat in the ring.”
Home Finance (renamed as First Blue Wadhawan has also bagged a general @anandadhikari

INDIA’s BEST CEOs
INDU SHEKHAR JHA, CMD, Power Grid
Power-packed
Performance As head of Power Grid, Indu Shekhar Jha’s
role is crucial to achieving the government’s
ambitious energy objectives.
BEST CEO
BY ANILESH S. MAHAJAN
PSU (Ex-BFSI)
and Power
26,730.9 cr/ 18.6%

PBIT/ 3-yr CAGR
15,919.8 cr/ 10.8%

PAT/ 3-yr CAGR
7,520.2 cr/ 18.7%

3-yr Average TSR
26.2%
34.4%
ndu Shekhar Jha possesses a special There was practically a tradition at
ROE/ ROCE ability to take people along with him. It Power Grid to treat contractors with
17.4%/ 10.2% is one that has stood him in good stead
in his current position as chairman
disdain and delay their payments. Jha
was aware of the practice, having been
Cash/ Debt and managing director of Power Grid director (projects) at the company
Corporation of India – the centrally since September 2009, and once he
3,340.6 cr/ owned public sector unit (PSU) that took charge, he determined to break it.
1,18,697.9 builds and maintains cross-country
transmission lines – which he has held
“Power Grid engineers are not supposed
to erect towers or lay transmission lines
Net Profit Margin since November 2015. “In the last two – it is all done by contractors,” he says.
29.2% years, one of my biggest achievements,
I think, has been changing the mindset
“Contractors are crucial to our function-
ing and should be treated like business
*For Oct 2016-Sep 2017 of the people who work with me,” he partners. Payment delays to them in
Standalone data; Total Income, says. “This is what has enabled me to turn lead to delays in project execution.
items; TSR: Total shareholder speed up the execution of projects and Now every month we clear bills of more
return; Source: ACE Equity
improve their quality. I treat everyone than `2,000 crore. The advice to our
with respect, including the contractors people, engineers and contractors alike
who work for us.” is – maintain standards, maintain trans-

PHOTOGRAPH BY REUBEN SINGH
parency, focus on the goal and respect Mantra for Team tween 2013/14 and 2016/17, its revenue
time schedules.” Building has also risen at a compound annual
Between March 2014 and March growth rate (CAGR) of 18.6 per cent to
2017, for much of which Jha was in 1. Build confidence and reputation reach `26,581.41 crore. In 2016/17, it
charge, Power Grid’s network expanded 2. Make sure colleagues enjoy was awarded projects worth `30,000
from 291,336 circuit km (CKM) to their work/task crore, almost twice the `16,000 crore of
366,634 CKM, thereby making it 3. Build rapport: Align yourself projects it got the previous year. Since
capable of transporting 722,949 mega with your boss, make colleagues 2011, when India introduced bidding
volt ampere (MVA) of power, up from comfortable in sharing for transmission projects, Power Grid
thoughts, ensure transparency
530,546 MVA three years ago, accord- has won 11 of
in decision-making
ing to power ministry data. In Novem- the 25 auctioned so far.
ber 2015, when Jha took over, Power 4. Build emotional bond
with junior staff
Grid’s network strength was 3,41,551 Greening India
CKM, which could carry 6,58,949 MVA. 5. Build trust: focus on goals, Power Grid’s performance is critical to
respect time schedules, be
It expects to add another 100,000 CKM strict on lapses/indiscipline,
meeting the government’s commit-
by 2022, with an additional investment accommodate new ideas. ments at the Paris climate talks in 2015,
of `2.6 lakh crore, of which its own as well as to achieving its ambition of
contribution will be `1 lakh crore. Be- increasingly replacing fossil fuel use

INDIA’s BEST CEOs
INDU SHEKHAR JHA, CMD, Power Grid
with renewable energy. The govern- Dayal Upadhyaya Grameen Jyoti Yojna
ment’s goal of achieving 175 GW of (DDUGJY) and the more recent Sahaj
renewable energy capacity by 2022 Bijli Har Ghar Yojana (SAUBHA-
will be meaningless, if energy can- GYA). The main hurdle to achieving
not be transmitted effectively. The this is not power generation, but
hurdle is that renewable power is distribution, especially last-mile
intermittent or “infirm” in nature, connectivity. The country already
and thus requires greater grid has installed power capacity of
stability for effective transmis- 335 GW, while the current peak
sion than conventional power. power demand is only 159.8 GW,
At present, both interstate and according to a Central Electricity
intra-state transmission networks Authority (CEA) report. Even by
are plagued with fluctuations and 2021/22, peak demand is expected to
evacuation problems, which will have rise to around 235 GW.
to be overcome if renewable power use Power Grid is already working with
has to become more widespread. some state governments to take power
In 2013, Power Grid was entrusted to every home. “We have set up a joint
the `43,000 crore project of building a venture company with Bihar to build its
nationwide green corridor for renew- Key Drivers transmission network, and are working
able energy – extending and upgrading with Uttar Pradesh, too,” says Jha. These
the grid to connect all renewable energy 1. In 2016, the power ministry are states whose power distribution
decided to allocate all
plants across the country. Power Grid transmission projects of
companies are in such dire straits that
is making inter-state transmission lines strategic importance to lenders want to have as little as possible
connecting ultra mega solar parks in Power Grid to do with them, but with the Power
five states. Its responsibility increased 2. Power Grid is implementing Grid link – which contributes credibility,
with the new National Tariff Policy of a `43,000 core Green along with its technical expertise – there
2016, which mandated that transmis- Energy Corridor to evacuate is hope that the situation may change.
renewable energy
sion projects of “strategic importance” “The state governments are working
would not be auctioned, but awarded 3. The transmission sector is against tight budgets,” adds Jha. “Our
to Power Grid alone. Private players expected to invest `2.6 lakh joint ventures with them will not only
till 2022, out of which Power
have protested the decision, but the Grid is expected to put in give their transmission companies fi-
government has so far stuck to its guns. `1 lakh crore. nancial independence, but also access to
“Tariff-based competitive bidding is a newer technologies. It is a win-win situ-
proven model for building transmis- ation for both of us.” Besides, the Ujjwal
sion networks in India. Competition Discom Assurance Yojana (UDAY),
in the sector will encourage use of which most states, including Bihar and
technological innovation, which will UP, have joined, is also helping to turn
lead to faster completion and lower 500- MVA transmission system for the around their ailing discoms.
costs to the end-consumer. A healthy ultra mega solar park (UMSP) in Anan- Again, greening India does not mean
PPP project pipeline would benefit the tpur, Andhra Pradesh. Similar systems green power alone – green transporta-
sector and all industry players,” says will be built for eight more UMSPs tion is equally important. Jha is a con-
Pratik Agarwal, Group CEO, Sterlite across seven other states. In May 2017, sultant to both Indian Railways, which
Power. Obviously, the officials in the it also started work on the 800 kV ultra is trying to reduce its use of diesel-
power ministry don’t agree. Thus Power high voltage direct current (UHVDC) powered trains, and the urban transport
Grid has been loaded with a number of transmission lines that will connect ministry, which has an elaborate plan to
important time-bound projects, such as Raighar in Chhattisgarh to Pugalur in introduce electric cars. “He is the right
the four 765 kV transmission lines from Tamil Nadu. man in the right place at the right time,”
Bikaner to Moga, which will link green says R.P. Singh, former CMD of Power
energy from Rajasthan to the rest of Better Distribution Grid. “He is a go-getter, takes decisions
North India. Power Grid’s performance is also in tough times, and gets work done
And Power Grid is sticking to its crucial to fulfilling government’s goal without creating controversies.”
schedule. It has already commissioned of providing electricity to all by March
the first phase of the green corridor – a 2019, under schemes such as the Deen @anileshmahajan

INDIA’s BEST CEOs
M.K. JAIN, Former MD & CEO, Indian Bank
Trusted Banker M.K. Jain led a successful transformation of
South-based Indian Bank. He is now heading the
much bigger IDBI Bank with multiple challenges.
A
BY ANAND ADHIKARI
BEST CEO
PSU (BFSI)
18,251.1 cr/ 3.2%

PBT/ 3-yr CAGR
1,758.2 cr/ 6%
PAT/ 3-yr CAGR
1,405.7 cr/ 6.6%

3-yr Average TSR
round two and a half years ago, rently holds an equally challenging role at
64.1% 56-year-old Mahesh Kumar Jain, then
executive director of Indian Bank, found
IDBI Bank. He has also been named the
Best CEO in the PSU (BFSI) category in
Average MCap YoY growth* himself all alone at the helm as two of his the Business Today Best CEO Study 2017.
111.8% senior colleagues left the South-based
bank. T.M. Bhasin, then managing direc-
Sitting at the Mumbai headquarters
of IDBI, Jain gives credit to Bhasin for
ROE/ ROA
tor and Chief Executive Officer, demitted guiding him along. “You have to drive the
his post to take up the role of Vigilance bank. You will get my full support,” Bhasin
10.1%/ 0.7% Commissioner in Central Vigilance Com- had told Jain when the latter joined Indian
mission while Executive Director B. Raj Bank in September 2013 and became an
NET NPA
Kumar was superannuated. Jain had to essential part of its key initiatives. Later on,
4.4% run the show all by himself for nearly six
months (he was elevated to the post of MD
as the bank’s MD and CEO, Jain focussed
on creating a strong foundation to kick-
Net Interest Margin and CEO in November 2015). During his start its lending activity. His priority was
2.6% stint, he effected a turnaround and created
a strong institutional set-up to implement
to improve the bottom line as the bank
was facing profitability pressure due to a
*For Oct 2016-Sept 2017; Standalone HR reforms and digitisation. Jain’s suc- high-cost structure, lower other income
data; Total Income, PBT and PAT net of
extraordinary items; TSR: Total share- cess at Indian Bank catapulted the highly and deteriorating asset quality. He did suc-
holder returns; Data for Indian Bank;
Jain was MD & CEO at Indian Bank till
regarded but little-known executive into ceed in improving performance. Plus, there
April 3, 2017.Source: ACE Equity the limelight, turning him into a much- were other achievements. Customers still
sought-after CEO in public sector banking remember how the bank tested its business
space. So, it is not surprising that he cur- continuity plan at the time of Chennai

INDIA’s BEST CEOs
M.K. JAIN, Former MD & CEO, Indian Bank
floods in 2015. Armed with laptops, Turnaround Strategy to 5.71 per cent from 7.14 per cent.
the bank employees offered doorstep Jain reduced operating cost at Indian
services and even managed to bring a Bank through space auditing, introduc-
micro-ATM on a boat. ing centralised operations and ensuring
energy efficiency. His initiative impacted
Early Days cost-to-income ratio, which fell from
A postgraduate in Commerce, Jain start- Focus on asset-light businesses 47.78 per cent to 45.69 per cent in three
ed his career with Delhi-based Punjab years. His strategy remains the same for
National Bank (PNB) in the mid-1980s IDBI and in the next one year, the target
and specialised in credit, covering the is to reduce operating cost by at least
markets in Haryana, Chandigarh and 10-15 per cent.
Himachal Pradesh. In December 1999, He faces another problem in cross-
he was part of a four-member team that selling and other income. There is not
Sell non-core assets
developed a risk management architec- enough cross-selling at IDBI. So, he is
ture for the bank in association with the focussing on third-party sales and has
Boston Consulting Group. In addition, activated the treasury to generate more
he completed his MBA, did a course on fee-based income.
financial risk management and trained Jain has created a dedicated vertical
as a chartered financial analyst to hone to monitor non-performing assets and
his credit analysis skills. Preserve capital slippages as well as recovery. He has also
It was a hectic period. Jain still re- identified non-core assets, including
members how he struggled to commute stakes in Small Industries Development
from his East Delhi home to reach his Bank of India, National Stock Exchange,
office in South Delhi and then headed to National Securities Depository Ltd,
the North Campus to attend his MBA National Seeds Corporation Ltd, insur-
classes. “I used to reach home at around Reduce cost ance companies and real estate firms.
10 in the night,” he says. It was necessary, “We have realised `1,500 crore in the
though, because “If you stop learning, first half (of FY2017/18). In the second
you are stopping your development. It half, we should get `2,500 crore from
eventually impacts job satisfaction and offloading non-core assets,” he says.
organisational development.” Working For him, the path to profitability and
on risk management at PNB also helped Digitise on a large scale leadership matters most when it comes
him as he was “able to understand the to turnaround. At Indian Bank, he took
nuances of credit, risk, capital”. several initiatives for HR reforms, which
His next move to Syndicate Bank as would be carried out at IDBI.
an assistant general manager (credit) That his efforts at Indian Bank have
required shifting base from North to borne fruit is all too apparent. There
South. He worked in the risk manage- its profits and capital. “This journey may has been a huge jump in market cap,
ment department during 2005-2011, be long, but it should be smooth,” says from `3,000 crore to `13,800 crore. The
but got a plum position in January 2012 a confident Jain. Many tend to believe industry now expects him to run IDBI
when he was appointed the zonal head him as he had delivered in the past when along the same lines and he remains
of Mumbai. In a year and a half, he was leading Indian Bank. unfazed. “We expect the turnaround to
able to ensure 20-25 per cent year-on- Under Jain’s direction, Indian Bank take place post-September, 2018.”
year growth across key areas, including worked on the liabilities side, reducing The man who has worked across four
retail and corporate credit, operating reliance on high-cost bulk deposits and banks over the past three decades has
profits and cost of deposits. pushing low-cost current and savings ac- clear strategies in place. “We should be
counts (CASA). In three years, the CASA transparent in all our dealings, and we
The Man Who Delivers ratio jumped to 37.65 per cent from the should also be fair. If you are transpar-
According to industry experts, Jain previous 28.01 per cent. At IDBI, too, ent, there is nothing to hide. And if you
faces the toughest challenge as the Jain is trying to bring down high-cost are fair to all, prejudice and bias will
MD and CEO of IDBI. His mandate deposits. “We have paid off most of never enter your decisions.”
is to turn around the ailing bank as its our bulk deposits,” he says. Within six
deteriorating asset quality is eating up months, cost of deposits has come down @anandadhikari

INDIA’s BEST CEOs
A.M. NAIK, Chairman, L&T/Lifetime Achievement
Mr. Infrastructure
A.M. Naik transformed the
company into a global engineering
& technology powerhouse.
BY P.B. JAYAKUMAR
A
nil Manibhai Naik's life revolves
around L&T. He has always been
willing to talk passionately about the
company and its future. A hard task-
master, Naik set high standards for
his staff while at the helm and is the
man behind L&T's success story. Naik,
next generation technologies. The
target is to double the company's turn-
over by 2021. Then, he has taken on
the task of training the next generation
leaders for L&T. “I also spend time
on my social work (Naik has pledged
spending 75 percent of his earnings for
now the non-executive Chairman of charity) and taking care of my health,
L&T, has added another feather to which I ignored while working almost
his crowded cap. He's been conferred 16 hours a day for the last 53 years,”
Business Today's Lifetime Achieve- says the workaholic Chairman, who
ment Award – a new category in our ensures most of his senior subordi-
annual Best CEO awards. nates maintain a punishing schedule THERE MAY BE
When Business Today met him at like him. SPECIALIST
his corner office in Landmark building Soon we realise, from the numerous ENGINEERING
at Mumbai's Andheri, Naik appeared calls he attends to, that AM Naik is COMPANIES IN
keen on ceding the spotlight to his suc- still hands on at L&T and tracks where CERTAIN AREAS,
cessor. “To know anything related to his key executives are, what they do BUT THERE IS NO
COMPANY IN THE
the current business of L&T, you will and whom they are meeting. He al-
WORLD WHICH
have to speak to S.N. Subrahmanyan ways has been aggressive, assertive and CAN DO ALL THAT
(MD&CEO). My roles are different authoritative both in business dealings L&T DOES ... MY
now”, says Naik. Subrahmanyan took and handling subordinates. AMBITION HAS
over in June 2017. In fact, it was Naik who made the ALWAYS BEEN TO
Our conversation with Naik re- `1.2 lakh crore L&T an engineering WORK FOR L&T”
vealed that even after spending more behemoth, currently operating in
than 53 years with L&T, Naik is still about 85 businesses. After he took
thinking about L&T and its businesses. over as its CEO and MD in 1999, Naik
The 76-year-old devotes most of his professionalised the company, brought
time to the company that he regards as in entrepreneurial aggression into an
his ‘temple’. He regards himself as the entity that was working more like a
‘keeper’ of that temple. His unflagging public sector company and made it
energy is now focussed on evolving a part of the various initiatives that
a new strategic vision for L&T. It in- independent India is proud of - from
cludes deciding the business areas L&T satellites, major airports, defence
should enter and exit in the coming projects (from nuclear submarines
years and how to make the company to missiles) to moon or mars mis-
ready for a future rooted in high-end, sions. He also ensured L&T became

INDIA’s BEST CEOs
Life and Times of A.M. Naik a multinational, with 35 percent

of revenue coming from overseas
1942 business. Since 1999, L&T’s revenues
Born on June 9 in Surat to have grown 25 times and market
school teacher Manibhai and capitalisation by 85 times. Almost
Maniba, a housewife
all marquee infrastructure projects
1944 in India are now handled by L&T.
Parents move to Mumbai What's more, Naik transformed an
where his father joins Hansraj 1989
Morarji Public School as a Joins as director. engineering company into a new age
senior teacher. business conglomerate operating
1993
1952 Launches L&T’s Vadodara in diverse high end technology and
Parents return to their Knowledge City engineering services, IT, finance,
largely tribal village, Endhal, defence, infrastructure and of late,
in Gujarat, influenced by 1999
Becomes CEO and managing ship building, smart cities and water.
Mahatma Gandhi’s ideas on
transforming villages. director at the age of “There may be specialist engineering
57. Launches efforts to companies in certain areas, but there
1953 professionalise the company.
Naik joins K.V.S. High School, is no company in the world which
Kharel, from where he passes 2003 can do all that L&T does,” says Naik
Class XI with flying colours. Appointed as chairman.
with pride.
1958 2004 Reliance Industries' Chairman
16-year-old Naik joins V.P. Thwarts hostile acquisition and Managing Director Mukesh Am-
Science College, Anand, to bids, forms L&T Employees
Welfare Foundation and allots bani, who closely knows Naik for the
prepare for engineering.
stock options to employees past 35 years, since he was a general
1964 to ring-fence management manager with L&T, points out that
Graduates in mechanical control. Employees become
some of AM Naik’s best qualities are
engineering from Birla largest shareholders. Sells
Viswakarma Mahavidyalaya, cement business to Grasim. his engineering brain and passion to
Anand, and joins Nestor take L&T ahead of the competition.
Boilers, Mumbai, at a salary 2005-10
Launches Lakshya 1 “I still remember that in the middle
of Rs 350.
to make L&T a Rs 47,000 80s, we had a Japanese compres-
1965 crore company. sor. It was a titanium and we had a
Joins L&T as junior engineer
2009 problem. I called Mr Naik and he
in the unionised category at
a salary of Rs 670. Awarded Padma Bhushan, said 'I will fix it for you'. Within six
India's 3rd highest civilian days, we fixed the problem in India,"
1967 award.
Promoted to supervisory said Ambani recently at a function in
A grade with a salary of Rs 2011 Mumbai to launch Naik's biography,
1,500. Lists L&T Finance
'The Nationalist.'
1968 2010-16 When L&T was confined to just a
Becomes assistant Launches Lakshya 2 and
single engineering workshop facility
general manager. doubles turnover to over
Rs 1 lakh crore with the concept at Powai in Mumbai, Naik had the
1970 of independent companies. vision to create new big engineering
Promoted as Creates defence and ship- facilities to accommodate the needs
production manager. building capacities.
of the future. In 1980s, he created
1973 2016
Becomes works manager and Lists subsidiaries L&T Infotech
re-designated as deputy and L&T Technology Services.
general manager next year. Announces he will give
75 per cent income to
1983 charitable causes.
As joint general manager,
Group II, launches the Hazira 2017
manufacturing complex Appointed non-executive MY ROLE MODEL IS
project to create huge chairman for three years. MY FATHER, WHO
capacities for L&T. S.N. Subramanian takes over as ALWAYS TOLD ME TO
Managing Director and CEO. STAND FOR VIRTUE,
VALUES AND WHAT
IS RIGHT”

INDIA’s BEST CEOs
2,00,000
1,76,102.67
ON A TEAR Dec 2017
L&T's market cap has soared under A. M. Naik
1,50,000
1,00,000
1,02,667.60
Jan 2016
50,000
4,649.74
April 1999
0
Figures in `crore; Source: BSE
the huge Hazira engineering complex, never insulted or humiliated them. to foremen in the shopfloor of their
now spread over 755 acres in coastal Many of them still respect me and they factories. Unlike most CEOs, who are
Gujarat, and followed it up with a could come up in life as they realised afraid of speaking against the govern-
knowledge city in Vadodara. Currently their mistakes,” says Naik. ment, Naik is very often critical. “That
L&T’s facilities are spread across the Naik is a seasoned street-smart is because my role model is my father
country in different locations, with the CEO. After joining L&T as a junior who always told me to stand for virtue,
latest available facilities and technolo- engineer at a salary of `670 in 1965, he values and what is right”, says Naik.
gies, and have an imprint of his vision. soon became the most commanding Also, unlike many Harvard or
Independent observers say Naik’s voice in the company. He still main- Wharton educated CEOs, who get the
stature has grown beyond even the tains that there are not many CEOs in top job simply because they belong to
Danish founders of the company – India who have such a cordial relation- the promoter clan, Naik had to fight
Henning Holck Larsen and Soren ship with the staff, from top executives his way to the top. He studied at a
Kristian Toubro – who founded L&T tribal area school in Gujarat and a
way back in 1938. That is mainly nondescript engineering college, Birla
because Naik successfully fought Viswakarma Mahavidyalaya, Anand.
hostile takeover attempts by two of In his first job interview itself, Naik
India’s leading corporate houses in
Key Achievements was told to improve his crude English
early 2000s and made its employees 1. Headed the company for to survive. A hardworking Naik
the largest shareowners. For that, he 18 years; L&T’s revenue listened to audio tapes and rehearsed
floated an L&T Employees Welfare grew 25 times and market before the mirror to improve his Eng-
capitalisation 80 times during
Trust, a way to ring-fence any future this period. lish skills. In the initial five years at
takeover attempts, which eventually L&T, his hardwork earned him a good
2. Ensured L&T's participation
helped many employees become mil- in most of India’s landmark salary and five promotions to become
lionaires through stock options. infrastructure, defence and an assistant general manager. Then
Such battles were not new to him, space projects. there was a phase when he was denied
a natural leader and organiser. At 3. Nullified hostile takeover promotion for almost a decade as the
school, where his father was the head- attempts by leading company slipped into the hands of
master, he had led an agitation of stu- corporate houses and made seniority conscious bureaucratic lead-
employees the leading
dents to improve the quality of English stakeholders. ers. “I am not someone who bothered
education. Even the decision to quit much about promotions or wealth and
4. Built a huge part of what
his first job at Nestor Boilers in Mum- L&T is today; the company
my ambition has always been to work
bai after a year was a fallout of a revolt operates in over 85 sectors for L&T”, says Naik. Indeed, he would
against the humiliation of a very senior and has a turnover of be known in history as the man who
colleague by the then promoter's son. over Rs 1.20 lakh crore. moulded the modern L&T.
“In my career, I had fired thousands
of non-performing employees, but I @pb_pbjayan

INDIA’s BEST CEOs
Y.C. DEVESHWAR, Chairman, ITC/Lifetime Achievement
Beyond
Tobacco
Y.C. Deveshwar has been hugely
successful in using cash flows
from the tobacco business to
build multiple drivers of growth.
M
BY RAJEEV DUBEY
ore than two decades ago, Y.C. e-Choupals and created a new era of
Deveshwar had just taken charge as technology-led farming but is also
the managing director at ITC when a the bedrock of most of ITC’s current
senior executive came up to him to in- and future businesses — FMCG,
form him about his resignation as ITC retail, food, exports, chocolates, dairy,
had decided to sell the international among others.
commodities trading business that This foundation of the ITC of WE DIVERSIFIED AT
he was heading. It so happened that today was laid more than two decades A TIME WHEN THERE
after completing the negotiations, De- ago when Deveshwar revisited ITC’s WAS NO THREAT
veshwar changed his mind (to sell the vision. It was clear in the mid-90s (TO THE TOBACCO
BUSINESS). AS A
business) — and so did S. Sivakumar, that sin goods such as cigarettes and
MATTER OF FACT,
the executive. liquor would come increasingly under YOU SHOULD
That would be the defining mo- regulatory pressure and discouraged DO THINGS
ment for ITC and its future. For, with high taxation. WELL AHEAD OF
Sivakumar went on to conceptualise, “Without ceding ground in that, THE THREATS
build and lead the highly complex agri in the interest of all our stakeholders, EMERGING”
business, which has not just trans- ITC had this aspiration to make an
formed millions of rural lives through increasing economic contribution to

PHOTOGRAPH BY SHEKHAR GHOSH

INDIA’s BEST CEOs
Y.C. DEVESHWAR, Chairman, ITC/Lifetime Achievement
High on Growth in the UK) and preventing it from
3,40,673*
diversifying into new areas. Devesh-
war was able to reason with the gov-
ITC's Journey After ernment and financial institutions to
Y.C. Deveshwar Took Over keep BAT at bay and let ITC remain
in 1996
an independent, board-managed
organisation, just like Larsen & Tou-
1996 2017 bro. This ensured that BAT was not
just unable to increase its stake but
was also unable to prevent ITC from
diversifying. It worked. Deveshwar
got just the breather he needed to
prove that his strategy was working.
54,216 In the process, Deveshwar, with
57,434
his undying faith in the Indian

growth story, transformed ITC
25,136
15,526
10,201
forever.
5,188
2,584
5,571
1,363
A lot of businesses ITC has

536
261
incubated over decades now have

0
Total Net PBIT Profit Assets Market the size and scale to be on their own.
Income Segment After Em- Capitali- Take the case of Aashirvaad Atta.
Revenue# Tax ployed sation
It has made ITC the second-largest
Figures in `crore; #other than cigarettes; *As on 31st March, 2017 Source: Company website
buyer of wheat in the country after
Food Corporation of India; it buys
nearly one million tonnes every year.
The agri and e-choupal business has
worked towards providing liveli-
the economy,” says Sanjiv Puri, CEO conclusion. Also, we did not have hoods, improving agri quality and
& Executive Director and Devesh- a proper strategy to nurture those productivity and promoting climate-
war’s successor. That time, ITC had businesses. This time, what we resilient agriculture. The choupal 4.0
revenues of around `800 crore and did was to have a proper selection will be equipped with latest digital
market cap of `100 crore. In its 95th process, divesting those not match- technologies. Not to forget ITC’s
year, in 2006, ITC had revenues of ing ITC’s strengths, and focusing on ability to leverage distribution and
around `5,000 crore and market cap those that made sense for us,” says creating large brands: between these
of `5,000 crore. In 2017, in its 106th Deveshwar. businesses, it has 25 mother brands
year, revenues are around `57,000 This was also the period when which are either No. 1, 2 or 3 in their
crore and market cap `3.2 lakh crore just like his predecessor K.L. Chugh, categories.
(as on Jan 2, 2018). Deveshwar has Deveshwar was struggling to prevent Besides, Deveshwar follows the
been at the helm for much of this ITC’s largest shareholder, British strategy of incubating and nurturing
journey. American Tobacco (BAT), from tak- businesses in their early lifecycle
ITC decided to shed businesses ing control of ITC; BAT was asking through healthy cash flows from
such as financial services, FMCG/ed- ITC to stick to the knitting (as it did tobacco until they are on their feet.
ible oils, international commodities “The reason we failed in edible oils
trading (though it wasn’t sold finally) was because we created a separate
and focus on businesses where company. When you start a separate
it believed it was strong: hotels, business, it’s not easy to establish it.
paperboard and agri. And then, it It takes time, it takes blood, it takes
got into information technology and ITC HAS 25 MOTHER a lot of inputs. That is why we folded
re-entered FMCG. BRANDS WHICH paperboard and hotels businesses
ARE EITHER NO.
Why did the diversification fail back into ITC so that they could be
1, 2 OR 3 IN THEIR
before? “We did not give it our best CATEGORIES. nurtured by cash flows from our
shot. We moved on to the next busi- tobacco business,” he says.
ness without taking any of these to Even while pursuing profitability,

growth and diversification, Deveshwar no sugar; even juice made from real The trick to succeed with such a di-
was convinced that all this could be fruit rather than fruit pulp. “One litre verse set of businesses was to leverage
achieved via triple bottom line – social, of tetrapack is made of 25 pomegran- the economies of scale in manufactur-
ecological and financial. So, even as ates,” says Puri. And finally, the ‘Super ing and distribution. This means mak-
ITC has a robust bottom line and Safe’ spices. To meet global standards, ing more businesses ride piggyback
reported a net profit of `10,201 crore they are tested for 470 contaminates on common manufacturing and dis-
in 2016/17, it’s also a carbon positive versus 9-10 that are required under tribution infrastructure to distribute
company, a water positive company Indian norms. “The trick was to work fixed costs and share variable costs.
and a solid waste recycling positive with farmers with a package of prac- So, it started integrating factories and
company. It has also created six mil- tices so that these kinds of spices can warehouses. ITC can now build a fac-
lion livelihoods. At the heart of all be developed,” says Puri. tory that has one biscuit unit, one juice
that Deveshwar has done is to build unit, one soap unit, one confectionary
the organisation to last. As Puri says, unit, one shampoo unit, one noodles
“We’re not here for five or 10 years, we line, etc. The idea is to build such fac-
are looking at the next century”. tories at multiple locations to get close
If there’s one business ITC believes to markets. Each time a product is
has the highest potential to take manufactured, it has to be transported
the company into the next century, to a warehouse and then to distribu-
it’s FMCG. Not just because India’s tors. If factories can have warehouses
FMCG penetration and per capita con- too, that’s a cost saved. “That is what
sumption levels are way lower than the we are engaged in building now so that
world average but also because it’s the the cost of delivery is the lowest that
space where ITC’s enterprise strengths anybody can have,” says Deveshwar.
can be best leveraged. “We are hoping “When we were diversifying
FMCG will be that business. It is a initially, if you look at the media
formidable opportunity. But it won’t reports then, the media was on the
happen overnight,” says Deveshwar. side of what our overseas shareholder
In foods, the synergies are even was saying — stick to your knitting.
more pronounced. “For good quality But now I am being credited with
produce, you need good quality inputs. enormous foresight. Remember we
And we have hotels where chefs help THE LONG JOURNEY diversified at a time when there was
us with design and testing of food no threat (to the tobacco business). As
products,” says Puri. FMCG is where 1. Y.C. Deveshwar joined ITC in a matter of fact, you should do things
the company expects the steepest spike 1968; appointed director on well ahead of the threats emerging,”
April 11, 1984, and became
in growth with the `10,000 crore Chief Executive and Chairman
says Deveshwar.
business projected to grow 10 times to on January 1, 1996. “Our strategy is extremely simple.
`1 lakh crore in revenue. “That is how To use tobacco cash flow to build
2. He is an alumnus of Indian
we are gearing the enterprise. We are Institute of Technology, Delhi, multiple drivers of growth. And to
building step by step. We’ve got into and Harvard Business School. build world-class Indian brands for
dairy, coffee, chocolates. The latest is 3. Between 1991 and 1994, he Indian consumers and maximise the
sea food with shrimps,” says Puri. led Air India as Chairman and capturing of value within India,” says
What’s driving the FMCG space is Managing Director. Deveshwar.
ITC’s science and technology centre 4. Harvard Business Review But Deveshwar isn’t still sound-
where over 350 scientists focus on ranked him as the 7th Best ing the death knell for the tobacco
creating products for the new age Performing CEO in the world business: “I don’t think the tobacco
lifestyle, especially in health and well- 5. The company's businesses business is going to die out despite the
ness space. The centre has over 500 generate livelihood for pressures. Do you think you can just
around six million people
patents to its credit. In fact, some of snuff it out and rob people employed
ITC’s most successful products have 6. ITC e-Choupal is the in the sector of their livelihood?” he
been born at the centre — Aashirvaad world's largest rural digital says. True, as it is, this is as much a
infrastructure
sugar control release Atta; digestive reality as it is a challenge.
biscuits from 100 per cent Atta with
no artificial sweetener, no maida and @rajeevdubey

INDIA’s BEST CEOs
METHODOLOGY
How
PHOTOGRAPH BY MILIND SHELTE

We
Did It
From left: Shashank Tripathi, Partner and Leader, PwC Strategy&; Kewal Handa,
T
Chairman, Union Bank of India; Prosenjit Datta, Editor, Business Today; Bobby K. Parikh,
Managing Partner, Bobby Parikh Associates; Ashish Kumar Chauhan, MD & CEO, Bombay
Stock Exchange; Rajesh Mokashi, MD & CEO, CARE Ratings
counting period was only between nine income and PBIT. For banking, financial
and 15 months in these periods were services and insurance (BFSI) compa-
considered. Companies whose latest nies, profit before tax was considered in
audited financial year results were not place of PBIT. Both absolute growth and
available were eliminated from the CAGR carried an equal weight of 16.6
list. We also removed companies that per cent. TSR was calculated by taking
reported a net loss in any of these three into account the net price change plus
financial years. Companies that listed dividends. Companies were scored on
during the study period were also not three-year TSR average and were given
considered. To qualify for the rankings, a weightage of 33.3 per cent. All three
CEOs must have been on the post for the scores were added to arrive at the final
full study period. In case of PSUs, the score. Non-BFSI and BFSI companies
his is Business Today’s sixth ranking period was a minimum of one fiscal. were assigned a separate score.
of Best CEOs in India. We published our A total of 243 companies qualified For better comparability, the compa-
first such ranking in 2012 in partnership for the study. To arrive at the rankings, nies were split into four categories based
with INSEAD and Harvard Business growth in total income, profit before on their total income - super large, large,
Review. In 2013, Business Today teamed interest and tax (PBIT) and total share- mid-sized and small. Companies with
up with PricewaterhouseCoopers (PwC) holder returns (TSR) were considered. total income of `1 lakh crore and above
to work out a new methodology and These parameters were taken net of ex- were placed in the super large group,
conduct the survey. We have been using traordinary income and expenses. Only while those between `50,000 crore and
this methodology that takes into account standalone numbers were used. `1 lakh crore were considered large.
both quantitative performance as well as Companies were assigned a score Mid-sized companies were between
qualitative aspects since then. on the average of year-on-year absolute `10,000 crore and `50,000 crore and
We started with the quantitative exchange and three-year compounded small companies had total income of
ercise to shortlist the top three perform- annual growth rate (CAGR) in total `1,000-10,000 crore.
ers in each segment. Before calculating Our knowledge support partner,
the quantitative performance, we used PwC India, reviewed and validated the
a series of checks and filters. Our study process. Names of three top CEOs in
universe was the BT500 ranking of each group - overall, and sector-wise -
India's most valuable companies. Only were placed before the jury, comprising
companies with revenues of more than Kewal Handa, Chairman, Union Bank
`1,000 crore within the BT 500 universe of India, Rajesh Mokashi, MD & CEO,
THIS METHODOLOGY
were considered. The data was sourced TAKES INTO ACCOUNT CARE Ratings, Bobby K. Parikh, Man-
from Ace Equity. Our study period BOTH QUANTITATIVE aging Partner, Bobby Parikh Associates,
was three years: 2016/17, 2015/16 and PERFORMANCE AS WELL AS and Ashish Kumar Chauhan, MD &
2014/15.Then, companies whose ac- QUALITATIVE ASPECTS CEO, Bombay Stock Exchange.

100
INDIA’s BEST CEOs
The Top
Despite disruptions of the past few years,
CEOs
many corporate leaders showed remarkable
performance over the period under review.
Presenting the BT-PWC list of India’s top
100 CEOs from non-BFSI sectors, based on
quantitative performance only. (Final winners
were based on the quantitative performance
and qualitative evaluation by the jury.)
2 7
5
Siddhartha Lal Prasan Firodia
Managing Director & Navin Agarwal Managing Director
CEO, Eicher Motors Executive Chairman, Vedanta Force Motors
SECTOR – Auto & Auto Ancillaries SECTOR – Mining & Metals SECTOR – Auto & Auto Ancillaries
SECTORAL RANK– 2 SECTORAL RANK – 1 SECTORAL RANK – 3
Total Income/3-Yr CAGR PBIT/3-Yr CAGR 3-Year Avg TSR Total Income/3-Yr CAGR PBIT/3-Yr CAGR 3-Year Avg TSR Total Income/3-Yr CAGR PBIT/3-Yr CAGR 3-Year Avg TSR
7,265.3/ 59.7% 2,279.8/ 84.4% 87.7% 46,373.8/ 15.2% 13,370.1/ 72.1% 58.7% 3,153.9/ 14.9% 239.6/ 49.4% 153.7%
1 3 8
Kenichi Ayukawa
Managing Director & CEO, Rajesh Ajay G. Piramal
Maruti Suzuki India R. Mandawewala Chairman, Piramal
MD, Welspun India Enterprises
SECTOR – Auto & Auto Ancillaries
SECTORAL RANK – 1 SECTOR – Others SECTOR – Others
SECTORAL RANK – 1 SECTORAL RANK – 2

Total Income/3-Yr CAGR PBIT/3-Yr CAGR 3-Year Avg TSR
70,418.2/ 16.5% 10,030.7/ 37.8% 53.2% 5,711.3/ 16.3% 975/ 72.9% 165.8% 4,123.4/ 21.8% 2,098.3/ 70.3% 56%
6 9
4
V.C. Nannapaneni Alluri Indra Kumar Venu Srinivasan
Chairman & Managing Director, Chairman & MD, Chairman & MD,
Natco Pharma Avanti Feeds TVS Motor Company
SECTOR – Pharma & Health Care SECTOR – Agriculture & Allied SECTOR – Auto & Auto Ancillaries
SECTORAL RANK – 1 SECTORAL RANK – 1 SECTORAL RANK – 4
1,971.2/ 45.6% 651.6/ 54.8% 102.1% 2,671.8/ 33% 316/ 42.3% 108.1% 12,308.7/ 15.5% 742.6/ 24.9% 78.6%
*Retired on July 31, 2017; **Up to May 11, 2017; #Retired on Nov 30, 2017; ##Till February
20, 2017; Ûp to May 2017; This is a list of top 100 CEOs of non-BFSI companies based on
Total Income/ Profit Before Interest 3-Year Average Overall overall quantitative rankings. The winners were chosen after both quantitative and qualita-
3-Year CAGR & Taxes/3-Year CAGR Total Shareholder Return Ranking tive evaluation; standalone data; PBIT: profit before interest & taxes; TSR: total shareholder
return; Total income and PBIT figures in ` crore; Total income & PBIT are net of extraordinary
income and expenses for the latest financial year. NA: not available. Source: Ace Equity
INDIA’s BEST CEOs
TOP 100 CEOs (ex-BFSI)
Total Income/ Profit Before Interest 3-Year Average Overall

3-Year CAGR & Taxes/3-Year CAGR Total Shareholder Return Ranking
10 14 18 21
Anil Kumar Jain P.P. Gupta Suresh Krishna Balram Garg

Executive Chairman, MD, Techno Electric & Chairman & MD, Managing Director,
Indo Count Industries Engineering Company Sundram Fasteners PC Jeweller
SECTOR – Others SECTOR – Infrastructure & Engg. SECTOR – Auto& Auto Ancillaries SECTOR – Others
SECTORAL RANK – 3 SECTORAL RANK – 1 SECTORAL RANK – 5 SECTORAL RANK – 5
Total Income/3-Yr CAGR PBIT/3-Yr CAGR 3-Year Avg TSR Total Income/3-Yr CAGR PBIT/3-Yr CAGR 3-Year Avg TSR Total Income/3-Yr CAGR PBIT/3-Yr CAGR 3-Year Avg TSR Total Income/3-Yr CAGR PBIT/3-Yr CAGR 3-Year Avg TSR
2,084.7/ 13.1% 386.4/ 33.9% 338.4% 1,278/ 27.6 231.9/ 34.9% 114.2% 2,947.6/ 12.5% 470.7/ 27.2% 100.6% 8,208.6/ 15.2% 848.1/ 10.9% 88.9%
11 15 22
Arvind Uppal
Chairman & Non- K. Narasimha Sajjan Bhajanka
Executive Director, Reddy Chairman, Century
Whirlpool of India MD, KNR Construction Plyboards (India)
SECTOR – Consumer Durables SECTOR – Infrastructure & Engg. SECTOR – Others
4,013.8/ 11.9% 474.4/ 39.3% 98.8% 1,571.3/ 22.7% 196/ 32.4% 164.4% 1,805.1/ 11.8% 262.3/ 28.2% 262.6%
12 16
19 23
Anoop Kumar Dinesh Nandwana Varun Berry A.A. V Ranga Raju

Mittal MD & CEO, Managing Director, Managing Director,
CMD, NBCC (India) Vakrangee Britannia Industries NCC
SECTOR – Real estate & Construction SECTOR – IT & ITES SECTOR – FMCG SECTOR – Infrastructure & Engg,
6,420/ 15.4% 541.9/ 14.9% 190.9% 3,962.5/ 26.1% 869.5/ 31.3% 52.5% 8,559.2/ 10.5% 1,252.5/ 30.2% 69.6% 8,040.3/ 8.6% 713.2/ 15.0% 116.6%
13 17 20 24
Rajesh Mehta Yogesh Agrawal Bĳon Nag Arun Kumar

Executive Chairman, Managing Director, Executive Chairman, Founder & Chairman,
Rajesh Exports Ajanta Pharma IFB Industries Strides Shasun
SECTOR – Others SECTOR – Pharma & Health Care SECTOR – Consumer Durables SECTOR – Pharma & Health Care
44,991.4/ 24.1% 837.1/ 10.7% 99.6% 1,871.3/ 18.4% 643.5/ 26.1% 84.2% 1,751.9/ 19.4% 66.0/ 27.9% 219.6% 2,285.9/ 34.1% 317.1/ 21.3% 76.2%

*Retired on July 31, 2017; **Up to May 11, 2017; #Retired on Nov 30, 2017; ##Till February 20, 2017;
Ûp to May 2017; This is a list of top 100 CEOs of non-BFSI companies based on overall quantitative
rankings. The winners were chosen after both quantitative and qualitative evaluation; standalone
data; PBIT: profit before interest & taxes; TSR: total shareholder return; Total income and PBIT
figures in ` crore; Total income & PBIT are net of extraordinary income and expenses for the latest
financial year. NA: not available. Source: Ace Equity
25 29 32 36
Nirmal K. Minda R.S. Jalan Akhil Gupta Ashok Kajaria

Chairman & MD, Managing Director, Executive Chairman, Chairman & MD,
Minda Industries GHCL Bharti Infratel Kajaria Ceramics
SECTOR – Auto & Auto Ancillaries SECTOR – Others SECTOR – Telecom SECTOR – Others
1,664.3/ 13.5% 132.9/ 41.2% 141.5% 2,791.5/ 7.8% 638.7/ 21.9% 97.6% 8,547.1/ 15.6% 3,375.1/ 30.9% 27.7% 2,553.3/ 10.7% 409.8/ 26.3% 59%
26 30 33 37
Kochouseph Glenn Saldanha
D.K. Himatsingka Chittilappilly Chairman & MD, H.M. Bangur
Executive Chairman, Chairman, Glenmark Managing Director,
Himatsingka Seide V-Guard Industries Pharmaceuticals Shree Cement
SECTOR – Others SECTOR – Others SECTOR – Pharma & Health Care SECTOR – Cement
1,440/ 13.1% 309.6/ 43.1% 87.2% 2,164.1/ 12.4% 212.3/ 22.5% 97.3% 8,137.5/ 49.0% 2,941.9/ 76.7% 15.2% 8,994.7/ 13.3% 1,660.2/ 17.4% 35.9%
27 31 34 38
Shobhana
M.R. Jaishankar H.M. Bharuka Sanjay Dhingra Ramachandhran
Chairman & MD, Vice Chairman & MD, Managing Director, Managing Director
Brigade Enterprises Kansai Nerolac Paints Kwality TVS Srichakra
SECTOR – Real estate & Construction SECTOR – Chemicals SECTOR – FMCG SECTOR – Auto & Auto Ancillaries
1,748.5/ 24.1% 434.6/ 24.5% 68.8% 4,097.3/ 8.9% 759.4/ 35.2% 50.8% 6,144.5/ 10.3% 405.3/ 15.3% 81.9% 1,970.2/ 5.6% 238.4/ 33.5% 174.2%
35 39
28 S.V.
Yadupati Singhania Shreekant Somany Balasubramaniam
Chairman & Managing Director, Chairman & MD, Chairman – Executive
JK Cement Somany Ceramics Bannari Amman Sugars
SECTOR – Cement SECTOR – Others SECTOR – Agriculture & Allied

3,847.6/ 10.6% 609.4/ 28.3% 70.7% 1,855.7/ 13.7% 153.9/ 35.2% 72.7% 1,757.5/ 39.1% 283.9/ 44.5% 32.1%

INDIA’s BEST CEOs

40 43 47 51
R.G. Krishna Prasad Chirayu Amin
Chandramogan Chigurupati Saugata Gupta Chairman & CEO,
Chairman & MD, Chairman & MD, MD & CEO, Alembic
Hatsun Agro Products Granules India Marico Pharmaceuticals
SECTOR – FMCG SECTOR – Pharma & Health Care SECTOR – FMCG SECTOR – Pharma & Health Care
4,205.3/ 18.9% 239.5/ 24.8% 41% 1,364/ 10.7% 239.0/ 19.4% 90% 5,113.2/ 9.3% 1,154.7/ 15.6% 45.8% 2,988.8/ 17.4% 552.8/ 19.7% 33.8%
41 44 48 52
Sanjay Koul Arun Bharat Ram Sunder Genomal Ajay Bijli

Chairman & MD, Chairman, Managing Director, Chairman & MD,
Timken India SRF Page Industries PVR
SECTOR – Capital Goods SECTOR – Others SECTOR – Others SECTOR – Others
1,066.1/ 13.4% 139/ 27.8% 82.4% 3,929.1/ 4.5% 625.6/ 22.4% 82.7% 2,154.5/ 21.7% 414.3/ 18.5% 41.2% 2,070.8/ 17.3% 232.1/ 22.1% 45.1%
45 49 53
Pankaj Mital K. Nityananda
Whole-time Director & Reddy M.B. Parekh
COO, Motherson Sumi Whole-time Director & Chairman,
Systems VC, Aurobindo Pharma Pidilite Industries
SECTOR – Auto & Auto Ancillaries SECTOR – Pharma & Health Care SECTOR – Chemicals
6,454.7/ 11.7% 1,185.2/ 14% 42% 9,743/ 10.7% 2,223.7/ 7.1% 47.5% 4,975.5/ 8.3% 1,244.7/ 24.4% 38.4%
46 50 54
42
I.S. Jha Madhukar Dev Vikram Somany Punit Goenka
Chairman & MD,Power Grid Managing Director, Chairman and MD, MD & CEO, Zee Enter-
Corporation of India Tata Elxsi Cera Sanitaryware tainment Enterprises
SECTOR – Power SECTOR – IT & ITES SECTOR – Others SECTOR – Others
26,730.9/ 18.6% 15,919.8/ 10.8% 26.2% 1,249.4/ 15.4% 262.3/ 30.7% 47.2% 1,019.6/ 15% 159.3/ 21.5% 75.7% 5,275.5/ 17.4% 1,775.0/ 14.5% 26.3%

55 59 62 66
Mukesh Kumar Satyanarayan Bharat Hari
Sharad V Parekh Surana Nandlal Nuwal Singhania
Managing Director, Chairman & MD, Chairman & ED, Chairman & MD,
Nilkamal Hindustan Petroleum Solar Industries (India) JK Lakshmi Cement
SECTOR – Others SECTOR – Oil & Gas SECTOR – Chemicals SECTOR – Cement
1,968.7/ 6% 183.1/ 22.5% 118.5% 1,88,538.4/ -5.8% 9,556.5/ 34.2% 103.2% 1,151.3/ 7.7% 210.9/ 18.4% 107.5% 2,980.2/ 12.4% 262.9/ 7.6% 80.8%
56 60 63 67
N. Srinivasan Sudhir Mehta Deepak Nanda Anil Kumar Mittal

Vice Chairman & MD, Executive Chairman, Managing Director, Chairman & MD,
The India Cements Torrent Power Trident KRBL
SECTOR – Cement SECTOR – Power SECTOR – Others SECTOR – Agriculture & Allied
5,794/ 8.5% 620.5/ 25.0% 39.7% 10,177.6/ 4.9% 1630.5/ 20.9% 41.7% 4,798.0/ 7.3% 587.5/ 7.3% 85.6% 3,153.9/ 3.4% 594.1/ 13.4% 121.9%
57 61 64 68
Ramesh
Rajendra V Gogri S.P. Oswal Kumar Dua Urrshila Kerkar
Chairman & MD Chairman, Managing Director, Whole Time Director,
Aarti Industries Vardhman Textiles Relaxo Footwears Cox & Kings (India)
SECTOR – Chemicals SECTOR – Others SECTOR – Others SECTOR – Others

3,052.7/ 4.9% 496.1/ 15.9% 97.7% 6,328.7/ 6.4% 1,429.9/ 10.7% 56% 1,743.6/ 12.8% 196.5/ 18.5% 53.5% 3,210.6/ 89.4% 346.0/ 13.1% 29.1%
65 69
58 Pradeep R. Rathi
Sajjan Jindal Chairman & MD,
Chairman & Managing Director, Sudarshan Chemical Vinita Gupta
JSW Steel Industries CEO, Lupin
SECTOR – Mining & Metals SECTOR – Chemicals SECTOR – Pharma & Healthcare
57,789.8/ 8.2% 8,774.1/ 11.2% 32.8% 1,315.6/ 8.5% 147.5/ 16.2% 112.4% 12,841.6/ 11.1% 4,208.5/ 10.1% 28.4%

INDIA’s BEST CEOs

70 74 78 82
Jayadev Galla Sanjay Gupta Venu Srinivasan Aniruddha Basu

Vice Chairman & MD, Executive Chairman, Chairman & MD Managing Director,
Amara Raja Batteries APL Apollo Tubes Sundaram-Clayton CESC
SECTOR – Auto & Auto Ancillaries SECTOR – Capital Goods SECTOR – Auto & Auto Ancillaries SECTOR – Power
5,367.1/ 15.5% 708/ 9.4% 40.5% 2,881.5/ 12.8% 99.3/ 5.1% 79.1% 1,468.9/ 6.0% 145.9/ 17.2% 108.3% 7,625.6/ 10.8% 1,658.9/ 9.2% 26.7%
71 75 79 83
Bhuvaneswari P.R.Ramasubra-
Sanjay Labroo Gautam Adani Nara hmaneya Rajha **
Managing Director & Chairman, Vice Chairman & MD, Chairman & MD,
CEO, Asahi India Glass Adani Ports and SEZ Heritage Foods The Ramco Cements
SECTOR – Others SECTOR – Others SECTOR – FMCG SECTOR – Cement
2,365.6/ 3.9% 351.1/ 52% 65.9% 6,363.9/ 8.1% 4,491.3/ 14.9% 28.9% 2,277.9/9.7% 110/ 12.6% 75.5% 3,992.3/ 1.9% 954.2/ 40.6% 46.7%
72 76 80 84
Abhijit Roy K.B.S. Anand K.M. Singh * Bhadresh K. Shah

MD & CEO, MD & CEO, Chairman & MD, Managing Director,
Berger Paints India Asian Paints NHPC AIA Engineering
SECTOR – Chemicals SECTOR – Chemicals SECTOR – Power SECTOR – Capital Goods
4,170.2/ 6.9% 614.4/ 19.3% 45.7% 12,948.0/ 6.9% 2,680.4/ 15.5% 27.6% 8,734.2/ 7.2% 4,264.9/ 17.5% 24.6% 2,204.7/ 6.7% 627.2/ 11.4% 57.9%
73 77 81 85
Samir Mehta Ramesh Narain
Executive Chairman, K.P. Ramasamy Misra # N. Chandrasekaran ##
Torrent Chairman, Chairman & MD, CEO & MD, Tata
Pharmaceuticals KPR Mill SJVN Consultancy Services
SECTOR – Pharma & Health Care SECTOR – Others SECTOR – Power SECTOR – IT & ITES
4,892.3/ 12.6% 1,157.4/ 4.4% 49.4% 2,246.3/ 4.1% 355.3/ 12.1% 152% 3,120.4/ 13.9% 1,929.1/ 12.2% 22% 97,261/ 12.8% 30,082/ 8.5% 7.5%

86 90 94 97
Deepak Chhabria Sanjay Johri Sunil Bharti Mittal Sunil Lalbhai

Executive Chairman, Managing Director, Chairman, Executive Director &
Finolex Cables Voltas Bharti Airtel Promoter, Atul
SECTOR – Others SECTOR – Consumer Durables SECTOR – Telecom SECTOR – Chemicals
2,545.1/ 1.9% 423.6/ 19.5% 80.4% 5,665.2/ 2.4% 666.7/ 34.1% 40.7% 64,802.7/ 8.5% 14,015.9/ 12.2% 6.1% 2,737/ 4.4% 421.5/ 8.7% 84.5%
87 91 95 98
Rajiv Mittal Arvind Poddar Rajnikant Shroff B.N. Kalyani

Managing Director, Chairman & MD, Chairman & MD, Chairman & MD,
VA Tech Wabag Balkrishna Industries UPL Bharat Forge
SECTOR – Infrastructure & Engg. SECTOR – Auto & Auto Ancillaries SECTOR – Agriculture & Allied SECTOR – Auto & Auto Ancillaries
1,820/ 16.0% 213.7/ 13.9% 38.2% 3,980.6/ 3.5% 1,077.1/ 13.2% 50% 7,361.0/ 11.7% 710.0/ -4.5% 66.2% 3,964.2/ 4.1% 877.2/ 6.2% 66.3%
88 92 96 99
Virendra D. Prakash P.
Mhaiskar Kishore Biyani Pawan Munjal Chhabria
CMD, IRB Infrastruc- Group CEO, Future CMD & CEO Executive Chairman,
ture Developers Lifestyle Fashions Hero MotoCorp Finolex Industries
SECTOR – Infrastructure & Engg. SECTOR – Others SECTOR – Agriculture & Allied SECTOR – Others
3,644.9/ 13.2% 597.7/ 4.4% 45.8% 4,112.2/ 8.3% 177.7/ -4.3% 91.6% 28,997.4/ 4% 4,664.5/ 17.4% 15.3% 3,012.7/ 6.5% 532.3/ 12.1% 45.4%
89 100
93
Kalanithi Maran B. Ashok^ C.P. Gurnani
Executive Chairman, Chairman, MD & CEO,
Sun TV Network Indian Oil Corporation Tech Mahindra
SECTOR – Others SECTOR – Oil & Gas SECTOR – IT & ITES
2,755.0/ 8.2% 1491.4/ 11.1% 37.3% 3,64,289/ -8.6% 29,786.3/ 30.8 53.2% 24,425.4/ 13.3% 3,942.5/ 7.2% 6%

300
INDIA’s BEST CEOs (BFSI)
The Top CEOs
A H M
Aditya Puri Hemant Kanoria M.R. Rao

Managing Director, Chairman & Managing Director, CEO & Managing Director,
HDFC Bank SREI Infrastructure Finance Bharat Financial Inclusion
81,602.5/ 18.5% 22,139.1/ 20.1% 26.9% 2,301.5/ 8.4% 148.4/ 19.2% 41% 1,727.9/ 40.4% 192.8/ 40.3% 58.7%
Arundhati Bhattacharya^^^ M.G. George Muthoot

Chairman, Chairman,
State Bank of India Muthoot Finance
K
2,10,979.2/ 10.8% 14,855.2/ -2.8% 21.9% 5,746.7/ 5% 1,921/ 17.2% 42.3%
K. VenkataramanΩ Mahesh Kumar Jain***

Managing Director & CEO, Managing Director & CEO,
Karur Vysya Bank Indian Bank
C
6,404.6/ 4.1% 883.5/ 27.5% 30.2% 18,251.1/ 3.2% 1,758.2/ 6% 64.1%
Chanda Kochhar Kapil Wadhawan Murali M. Natrajan

Managing Director & CEO, Chairman & Managing Director, Managing Director & CEO,
ICICI Bank Dewan Housing Finance Corpn. DCB Bank
73,660.8/ 10.5% 11,278.6/ -6.9% 7.8% 8,945.4/ 21.6% 3371.8/ 66.2% 64.1% 2,325.6/ 22.4% 306.7/ 26.5% 55.7%
Keki Mistry
Vice Chairman & CEO,
HDFC Limited
D N
33,184.1/ 11.1% 10,726.6/ 13% 23.5%
Duruvasan Ramachandra Kishore Kumar Sansi### N. Kamakodi

Managing Director, Managing Director & CEO, Managing Director & CEO,
Shriram City Union Finance Vijaya Bank City Union Bank
4,434.6/ 11.0% 853.6/ 3.1% 36% 14,030.7/ 7.1% 914.5/ 26.9% 35.9% 3,657.7/ 9% 692.8/ 17.7% 45.8%

The financial sector continues to face huge challenges such as poor
credit growth and huge bank NPAs. Some players crossed these
hurdles with aplomb. Here is the list of Top 30 CEOs from the BFSI sector.
P S T
P. Jayarama Bhat#^ Sameer Gehlaut T.T. Srinivasaraghavan

Managing Director & CEO, Founder & Executive Chairman, Managing Director,
The Karnataka Bank Indiabulls Housing Finance Sundaram Finance
5,994.7/ 8.5% 468/4.6% 22.3% 11,410.5/ 25.8% 3,680.8/ 24.6% 74.8% 2,468.7/ 2.2% 720.2/ 3.7% 48.1%
Shikha Sharma
Managing Director & CEO,
Axis Bank
R U
56,233.5/ 13.9% 5,467.6/ -16.4% 27.2%
R. Varadarajan Shyam Srinivasan Uday Kotak

Managing Director, Managing Director & CEO Vice Chairman & MD,
Repco Home Finance The Federal Bank Kotak Mahindra Bank
1,045.9/ 25% 280.2/ 23.4% 34.6% 9,759.2/ 8.5% 1,306.5/ 2.5% 37.6% 21,176.1/ 27.7% 5,148.1/ 31.3% 33.4%
Rajeev jain Sudhin Choksey

Managing Director, Managing Director,
Bajaj Finance Gruh Finance
V
10,003.3/ 34.2% 2,817.5/ 37.2% 95.2% 1,487.4/ 20.7% 442/ 21.8% 42.5%
Rana Kapoor Sunita Sharma*^ V. Vaidyanathan

Managing Director & CEO, Managing Director & CEO, Executive Chairman,
YES Bank LIC Housing Finance Capital First
20,581.4/ 20.7% 5,044.1/29.4% 68.6% 14,218.3/ 14.8% 2,955.8/ 17.4% 42% 2,728.7/ 36.2% 332.3/ 101.1% 67.7%
Romesh Sobti Suresh N. Patel V.P. Nandakumar

Managing Director & CEO, Managing Director & CEO, Managing Director & CEO,
IndusInd Bank Andhra Bank Manappuram Finance
18,577.2/ 22.3% 4,359.7/ 27.0% 43.5% 20,335.7/ 9.2% 359.3/-21.2% -0.5% 3,008.4/ 12.4% 1,114.9/ 48.1% 86.4%
Vellayan Subbiah^^
Managing Director,
^^Till August 18, 2017; *Ûp to April 11,2017; ***Till April 3, 2017; ### Retired in August 2017; ^^^Retired on October 6,
Cholamandalam Investment &
2017; #^Till April 11, 2017; ΩTill August 31, 2017; This is a list of Top 30 CEOs of BFSI companies in alphabetical order;
Finance Company
Standalone data; PBT: profit before taxes (excludes provisions & contingencies); TSR: Total shareholder return; Total
income and PBT figures in ` crore (net of extraordinary income and expenses) for the latest financial year.
4,896.8/ 13.2% 1,105.6/ 26.2% 54.6%
Source: Ace Equity

300
INDIA’s BEST CEOs
The Top BFSI CEOs

The financial sector continues
to face huge challenges such
as poor credit growth and huge
bank NPAs. Some players crossed
these hurdles with aplomb. Here
is the list of Top 30 CEOs from the
BFSI sector.
4 8 11
Rajeev jain Uday Kotak Murali M. Natrajan

Managing Director, VC & MD, MD & CEO,
Bajaj Finance Kotak Mahindra Bank DCB Bank
Total Income/3-Yr CAGR PBT/3-Yr CAGR 3-Year Avg TSR Total Income/3-Yr CAGR PBT/3-Yr CAGR 3-Year Avg TSR Total Income/3-Yr CAGR PBT/3-Yr CAGR 3-Year Avg TSR
10,003.3/ 34.2% 2,817.5/ 37.2% 95.2% 21,176.1/ 27.7% 5,148.1/ 31.3% 33.4% 2,325.6/ 22.4% 306.7/ 26.5% 55.7%
1
5 9 12
Kapil Wadhawan
CMD, Dewan Housing Finance V. Vaidyanathan M.R. Rao Aditya Puri
Corporation Executive Chairman, CEO & MD, Bharat Managing Director,
Capital First Financial Inclusion HDFC Bank
Total Income/3-Yr CAGR PBT/3-Yr CAGR 3-Year Avg TSR
8,945.4/ 21.6% 3371.8/ 66.2% 64.1% 2,728.7/ 36.2% 332.3/ 101.1% 67.7% 1,727.9/ 40.4% 192.8/ 40.3% 58.7% 81,602.5/ 18.5% 22,139.1/ 20.1% 26.9%
2 13
6
Rana Kapoor Romesh Sobti Sunita Sharma *^
MD & CEO, MD & CEO, MD & CEO,
Yes Bank IndusInd Bank LIC Housing Finance
20,581.4/ 20.7% 5,044.1/29.4% 68.6% 18,577.2/ 22.3% 4,359.7/ 27% 43.5% 14,218.3/ 14.8% 2,955.8/ 17.4% 42%
3 7 10 14
Sameer Gehlaut Vellayan Subbiah ^^
Founder & Executive V.P. Nandakumar MD, Cholamandalam Keki Mistry
Chairman Indiabulls MD & CEO, Investment & VC & CEO,
Housing Finance Manappuram Finance Finance Company HDFC
11,410.5/ 25.8% 3,680.8/ 24.6% 74.8% 3,008.4/ 12.4% 1,114.9/ 48.1% 86.4% 4,896.8/ 13.2% 1,105.6/ 26.2% 54.6% 33,184.1/ 11.1% 10,726.6/ 13% 23.5%
^^ Till August 18, 2017; *ûpto April 11,2017; ***till April 03, 2017; ### retired in August 2017;
^^^ retired on October 06, 2017; #^ till April 11, 2017; Ω till August 31, 2017;
Total Income/ Profit Before Tax/ 3-Year Average Overall This is a list of top 30 CEOs of BFSI companies. Standalone data; PBT: Profit before taxes
3-Year CAGR 3-Year CAGR Total Shareholder Return Ranking (excludes provisions and contingencies); TSR: Total shareholders’ return; Total Income and
PBT figures in `crore; Total income and PBT: Net of extraordinary income and expenses for
the latest financial year. Source: Ace Equity

INDIA’s BEST CEOs
TOP 30 CEOs (BFSI)
Total Income/ Profit Before Tax/ 3-Year Average Overall

3-Year CAGR 3-Year CAGR Total Shareholder Return Ranking
20 26
15 M.G. George Arundhati
Mahesh Kumar Jain *** Muthoot Bhattacharya ^^^
MD & CEO, Chairman, Chairman,
Indian Bank Muthoot Finance State Bank of India
Total Income/3-Yr CAGR PBT/3-Yr CAGR 3-Year Avg TSR Total Income/3-Yr CAGR PBT/3-Yr CAGR 3-Year Avg TSR
5,746.7/ 5% 1921/ 17.2% 42.3%
18,251.1/ 3.2% 1,758.2/ 6% 64.1% 2,10,979.2/ 10.8% 14,855.2/ -2.8% 21.9%
21
27
Shyam Srinivasan T.T.
MD & CEO, Srinivasaraghavan
The Federal Bank Managing Director,
Sundaram Finance
Total Income/3-Yr CAGR PBT/3-Yr CAGR 3-Year Avg TSR
9,759.2/ 8.5% 1,306.5/ 2.5% 37.6% 2,468.7/ 2.2% 720.2/ 3.7% 48.1%
16 22 28
Duruvasan
Sudhin Choksey Ramachandra Chanda Kochhar
Managing Director, MD, Shriram City MD & CEO,
Gruh Finance Union Finance ICICI Bank
1,487.4/ 20.7% 442/ 21.8% 42.5% 4,434.6/ 11% 853.6/ 3.1% 36% 73,660.8/ 10.5% 11,278.6/ -6.9% 7.8%
17 23 29
Kishore
Kumar Sansi ### K. Venkataraman Ω P. Jayarama Bhat #^
Vijaya Bank Karur Vysya Bank The Karnataka Bank
14,030.7/ 7.1% 914.5/ 26.9% 35.9% 6,404.6/ 4.1% 883.5/ 27.5% 30.2% 5,994.7/ 8.5% 468/ 4.6% 22.3%
18 24 30
N. Kamakodi Shikha Sharma Suresh N. Patel

City Union Bank Axis Bank Andhra Bank
3,657.7/ 9% 692.8/ 17.7% 45.8% 56,233.5/ 13.9% 5,467.6/ -16.4% 27.2% 20,335.7/ 9.2% 359.3/-21.2% -0.5%
^^ Till August 18, 2017; *ûpto April

19 25 11,2017; ***till April 03, 2017; ### retired in
August 2017; ^^^ retired on October 06,
2017; #^ till April 11, 2017; Ω till August 31,
2017; This is a list of top 30 CEOs of BFSI
R. Varadarajan Hemant Kanoria companies. Standalone data; PBT: Profit
Managing Director, Chairman & MD, SREI before taxes (excludes provisions and
Repco Home Finance Infrastructure Finance contingencies); TSR: Total shareholders’
return; Total Income and PBT figures in
`crore; Total income and PBT: Net of ex-
1,045.9/ 25% 280.2/ 23.4% 34.6% 2,301.5/ 8.4% 148.4/ 19.2% 41% traordinary income and expenses for the
latest financial year. Source: Ace Equity

PERSONAL TECH: TECHNOLOGY LIFE HACKS: FIGHTING LUXURY: GUIDE
P.128 P.134 P.136
TRENDS OF 2018 ANXIETY TO THE HIGH LIFE
WIRELESS CONNECTIVITY
TALKING
OBJECTS
ILLUSTRATION BY RAJ VERMA
3D-PRINTED OBJECTS CAN BE CONNECTED TO THE

INTERNET WITHOUT ELECTRONICS OR BATTERIES.
R
esearchers at the Amazon using a smartphone. AI
University of Wash- The implications of being
SMART CROSSINGS
ington have come able to provide everyday things
up with something with connectivity are enormous.
seemingly impos- “Such a capability democratizes
sible. They have the vision of ubiquitous con-
found a way to print nectivity by enabling designers to
objects in 3D and download and use our computa-
then connect them tional modules, without requir-
to the Internet and ing the engineering expertise to
other objects without their own integrate radio chips and other
Wi-Fi or batteries, creating, in electronics in their physical cre-
effect, ‘talking objects’. ations,” says the paper.
The University of Wash- “Further, as the commoditi-
ington News reports that the zation of 3D printers continues,
research team, led by Vikram such a communication capability
Iyer, Justin Chan and Shyam- opens up the potential for indi-
nath Gollakota, wanted to create viduals to print highly custom-
a way for people to 3D-print ised wireless sensors, widgets and A company called Umbrellium
something right at home using objects that are tailored to their has set up an interactive
available plastic raw materials, individual needs and connected crossing at Starling Cross in
South London. While it uses
and be able to use the creation to the Internet ecosystem.”
familiar and understandable
almost immediately. It’s all about
road markings and colours,
small sensors, switches and
the Starling Crossing reacts
gears. “Our goal is to 3D-print
dynamically in real time to dif-
wireless sensors, input widgets ferent conditions, and is able
and objects that can commu- to modify the patterns, layout,
nicate with smartphones and configuration, size and orien-
other Wi-Fi devices, without the “OUR GOAL IS tation of pedestrian crossings
need for batteries or electronics,” TO 3D-PRINT in order to prioritise pedes-
says their paper. “To this end, WIRELESS trian safety. The entire road
we present a novel toolkit for
SENSORS, surface at the crossing area
wireless connectivity that can
INPUT WIDGETS is monitored by cameras and
embedded with computer-
AND OBJECTS
be integrated with 3D digital
models and fabricated using controlled LEDs that can be
commodity desktop 3D print- THAT CAN seen from all angles, during
ers and commercially available COMMUNICATE both day and night.
plastic materials.” WITH WI-FI Using a neural network
A 3D-printed sensor picks DEVICES” framework, cameras track
up from an existing ambient objects moving across the
Wi-Fi from any router and either Excerpts from the paper road surface, distinguishing
absorbs or reflects signals from released by researchers at between pedestrians, cyclists
the University of Washington and vehicles, calculating their
it to indicate zeroes or ones. A
precise locations, trajectories
3D-printed switch attaches to a
and velocities and anticipat-
spring and presses against it and
ing where they may move to
makes contact with a 3D-printed
in the next moment.
antenna of conductive filament. Examples of what the
At different times of day,
When it does so, the signal research team created to and in different situations, the
is sent out to a receiver like a demonstrate the technique road can alter its configura-
smartphone. Physical movement included a wind meter, a water tion in real time. When there
is turned into electronic data. meter and a scale. These were are fewer pedestrians, the
The researchers give the made to connect to a device. crossing may only appear
example of a bottle of Tide deter- The kit is available to anyone when people approach, guid-
gent fluid to which one can at- who has a 3D printer, ing them to the crossing loca-
tach a 3D-printed sensor. When materials and can design an tion that it has learned over
the level of the fluid is running object they can put to use – time to be the safest, leaving
low, the sensor will be able to such as a slider that can the road otherwise free for
automatically order a refill on adjust volume. vehicular traffic.

THE BREAKOUT ZONE
ast year, Artificial PERSONAL TECH
TECH TRENDS IN
Intelligence (AI) and
machine learning were
the buzzwords in the
tech world. This year,
technology companies are
expected to take it a notch
higher. We will witness
the implementation of
AI in the form of virtual
companions, voice-
controlled home appliances and next
generation smartphones. On the
hardware front, the much-awaited
under-display fingerprint scanner
will arrive. Augmented reality will
make a big comeback with major
players opening AR development
kits to developers, allowing them to
come up with innovative AR apps.
Here is a look at the top technology
trends in the consumer space.
Voice Assistant: For long, the job

description of voice assistants has
been rather mundane – fetching
information or launching an app
THE NEW YEAR LOOKS PROMISING WITH AI
on smartphones. Then they were BECOMING MORE PERVASIVE AND AUGMENTED
equipped to make our lives easier REALITY MAKING A COMEBACK.
through smart speakers. The
By NIDHI SINGAL
year 2018 will see voice assistants
become an important part of
our home, in the form of voice-
enabled home appliances. Moving
beyond connected appliances
that can be operated using an
app, manufacturers are looking
at incorporating microphone and d
access to information on the cloudud
for the appliance to respond to a
voice command. Imagine this: iff
your child accidentally spills milkk on
he
the floor, instead of picking up the
mop, you can command the vacuum uum
cleaner to clean the mess.
ce-
Although the options for voice- Google Home
controlled appliances are limited d speaker and voice
assistant can play
currently – washing machines, music, make calls,
air conditioners, vacuum cleaners rs and control your
and dishwashers from companies es home
such as Candy Blanca, LG, iRobot, ot,
Hoover, GE Appliances and
Whirlpool, to name a few – manyy
more products are expected to
launch soon. This year, consumers rs
lled
can look forward to voice-controlled

Gatebox’s
holographic home
assistant Azuma
Hikari is capable
of having human-
like interactions
with its owner
a virtual (almost human) companion

that humans can interact with, just like
they would with a friend. The virtual
companion could take any form – a
spouse waiting for you to return home,
a nurse that can take care of the elderly
or an app that can entertain you.
Japanese research lab Gatebox
Inc. hopes to create a world in which
people can live together with virtual
characters. Its first project Gatebox
has a holographic home assistant
named Azuma Hikari, equipped
with a screen and a projector with
microphone, camera and sensors
to detect temperature and motion.
The sensor helps Hikari to recognise
faces and voices, and interact with the
owner on a personal level and send
messages when he/she is away. Those
who find entering an empty house
depressing, Hikari’s warm welcomes
are a good idea. Care Coach is another
company focussing on patient support
ecosystem. Using avatars, patients are
offered care reminders, therapeutic
engagement, and safety supervision
in an engaging and fun way. Several
start-ups are working on creating such
garage doors, window blinds, coffee Google Home and Apple HomeKit. virtual companions.
machines, precision cooking devices, Manufacturers will have to choose
among other products. Samsung has which of these leading voice assistants Under-display Fingerprint
announced that it will launch voice to support when launching smart Scanner: Synaptics is expected to
recognition capability for its Family appliances. unveil a new technology, called Clear
Hub refrigerators and, by 2020, ID, at the CES 2018 to be held in Las
incorporate smart features into all its Virtual Companion: An extension to Vegas. Designed for smartphones with
appliances. voice assistants, a virtual companion infinity display or bezel-less screens,
Most appliances today support could be in the form of a robot or an Clear ID in-display fingerprint sensors
Amazon Alexa, many others support app. Manufacturers are trying to make work the same way as the home button

THE BREAKOUT ZONE
time yyou look at the screen, preventing

your ddata from prying eyes, and will
autom
automatically adjust the camera
Asus NovaGo setting
settings based on the environment.
is a 2-in-1 Windows AI-po
AI-powered chipsets can even show
10 laptop
powered by a real-ti
real-time language translations when
smartphone chip in offli
offline mode. By learning the usage
that promises all- patter
patterns, smartphones will be able
day battery life pre-em
pre-empt and prioritise activities for
the us
user.
Video
Video: The depth effect was all the
rage in 2017, thanks to dual-camera
smart
smartphones. Moving on, video will
be the next big thing. With traction
on video
vid content increasing rapidly,
smart
smartphones, drones and action
camer
cameras have been improving their
video capturing capabilities. The new
flagsh
flagship smartphones will be able
to cap
capture premium quality, high-
definit
definition videos; and app stores will
brim with
w video editing apps that offer
easy-t
easy-to-use professional tools. 4k TVs
will finally
fin find relevance (they have
existed for over half a decade) as 4k
conten
content becomes more easily available.
Streaming devices such as Apple 4k
TV, Chromecast Ultra and FireTV, too,
fingerprint sensor, except they can be will become much sought-after.
activated by actually pressing on the
display part of the touchscreen. The Augmented Reality: While virtual
company has just announced plans to reality made hay – given its ease of
mass-produce the optical in-display implementation – augmented reality
fingerprint sensor and is already (AR) got sidelined. This promising
working with five OEMs. Reports technology is about to get a facelift
suggest that Samsung, too, has applied Apple ARKit with Apple and Google focussing on
for a new patent application for an is a platform for AR in a big way this year. Thanks to
in-display fingerprint scanner which developors to Apple’s ARKit and Google’s ARCore,
create immersive
will be first incorporated in the Galaxy and engaging developers have started making
S9 launching early this year. augmented reality games, educational and interactive
apps apps, shopping apps and medical
Bigger Batteries: The focus will, apps, utilising the power of AR. The
yet again, be on mobile computing application of the technology will go
as laptops and convertibles will offer beyond gaming and entertainment,
bigger batteries that can last a day or to areas such as retail, science and
more. Many new convertibles will be education. For instance, IKEA has
powered by Qualcomm’s Snapdragon AI Fervour: Brace up for super- come up with an AR app to help
835 chip, which, along with power, will smart phones as manufacturers people design their homes. People
offer 20 hours of battery back-up. LG’s incorporate AI in chipsets. Not only will be able to have a more immersive
Gram laptops will come with a full-day will they respond to our queries, but shopping experience using the AR app,
battery life. Samsung has also updated will automatically suggest apps based eliminating the need to visit a store.
its Ultrabook Series 9 with bigger on our usage. Smartphones will be
batteries. able to hide notifications until the @nidhisingal

FRONT
CAMERA
13-MP; captures
good selfies
HONOR VIEW 10
AI
MAGIC
By NIDHI SINGAL
5.99-INCH
DISPLAY
great for
streaming
content
H
uawei may not be launching
its flagship Mate 10 in India,
but is offering the same AI
experience in the Honor View 10
that boasts a 5.99-inch display
with 2,160x1,080p resolution.
The device is comfortable to hold, and
the screen offers bright colours, good FINGER-
PRINT
viewing angle and is a delight to stream SENSOR
content on. embedded
in home
Under the smart assistance setting, button
system navigation gives users the
KIRIN 970
option to switch between the off-screen CHIPSET
navigation button and the virtual powers AI
features
navigation bar. Under the navigation
dock, a tap on the home button takes
one to the previous page, touch and hold
takes one to the home screen, and hold
and slide to the multitasking page.
The Honor View 10 runs on EMUI
built on Android 8.0.0, which comes
with the usual Google apps, along with
some bloatware. The device is powered
by Kirin 970 processor paired with 6 adjusted while editing images.
GB of RAM and performs most tasks PRICE For real time translation, there is a
with ease. The AI capabilities of the ` 29,999 Translator app powered by Microsoft
processor have been put to good use that supports a wide range of languages
in the camera, translator app and to and works in the offline mode as well.
enhance the overall performance. The Unlike other apps that support image or
default mode in camera can detect up THE HONOR VIEW voice translation, this one also supports
to 13 subjects, including flower, green
plants, text, cat, food and more, and
10 COMPETES text and conversational voice translation.
Honor will offer smart recognition
enhance settings automatically. The WITH NOKIA 8 AND features, powered by AI, such as facial
dual camera (20 MP + 16 MP) at the
rear is good at capturing depth images
ONEPLUS 5T unlocking, intelligent display rotation
and an intelligent notifications lock with
in wide aperture mode, which can be the next update.

THE BREAKOUT ZONE
LIFE HACKS
TURN ANXIETY
BEING BLESSED rather acknowledge that you ried about whether your
unfairly with the ability are anxious. One good boss is likely to be un-
to see into what we think old trick to do this is to happy with your work,
INTO ENERGY
the future may be gives write your worries down. it’s a thought that can
humans the ability to It may seem counterpro- effectively be turned into
worry beyond the limits ductive but, according energy. Logical steps will
of reasonability where to anxieties.com, it’s one include finding out what
WRITING THAT WORRY LIST ISN’T anxiety is no longer way to meet the trouble is missing from your
AS SILLY AS IT MAY SEEM. IT CAN helpful or constructive. head on. Start by writing efforts and equipping
ACTUALLY BE THE FIRST STEP TO
TACKLING TROUBLES There are degrees of the anxious thought yourself with the ability
generalised anxiety built down as soon as it rears to meet expectations.
into each person; but its head, and no matter Margarita Tar-
when it begins to disrupt how many times it does takovsky, a writer on
daily life in some way, so. If the thought that psychological issues,
it’s time to seek help. If your work may not be like many experts,
you can’t concentrate on acceptable to your boss thinks one can even try
doing a good job on your is eating away at you, blocking some time for
presentation because write it down each time sheer worrying. Make
you’re too busy visualis- it occurs. a meal of it, as it were.
ILLUSTRATIONS BY SAFIA ZAHID
ing negative reactions And flood a piece of

and, hence, end up put- USE YOUR PHONE paper with the worries.
ting up a poor show, it’s a (NOTES APP) TO JOT “When your brain is
red flag – your anxiety is THOUGHTS DOWN bursting with worries,
not constructive or goad- INSTEAD OF A DIARY write them down. Re-
ing you into action, but as it is usually at hand. lease all those cooped-
instead is crippling. In a short time, you’ll up worries from the
Before heading to get tired enough of corners of your mind,
the counsellor or trying, the exercise and will and let the paper deal
unwisely, to take pills, be compelled to think with them. By writing
one can have a good shot about what you can do down your worries, you
at tackling anxiety better. to turn it positive and feel as though you’re
One common advice take action on avoiding emptying your brain,
from experts on the sub- the outcome you fear so and you feel lighter and
ject is to recognise and much. If you’re that wor- less tense.”
Travel
Bag It Right
A CHOICE BETWEEN soft versus hard lug- is sturdier, obviously, but it may be a heavier.
gage has never been more important than Polycarbonate bags are light, but check
it is today, with travel having gone up and out the weight with four wheels because
luggage allowances being restricted. If it’s a two-wheel luggage is passé (nobody looks
carry-on bag you’re after, it’s a good idea to elegant zipping through an airport with
opt for a soft case because you’re handling trailing luggage).
it yourself and need it to be light. Just as On the other hand, soft luggage typically
long as you find a safe pocket inside for made of nylon is actually washable and
your electronics or cushion them well with flexible, apart from being lighter and easier
whatever else you put in. The flexibility will to handle. But think of what you usually
allow you to store it in overhead bins more carry. You may want to shrink-wrap your
easily. With larger cases, hard-shell luggage soft bag, lest it gets tampered in transit.

Right to Mental
EXECUTIVE HEALTH
DON’T LOSE YOUR DAY Healthcare

TO STRESS
We still do not have a broad-
based ‘right to healthcare’
in India, but at least we do
have the ‘right to mental
IT MAY SEEM FREUDIAN TO health’. The new Mental
SEE NEUROSIS AS THE PRICE
Healthcare Act makes
PEOPLE PAY FOR PROGRESS
BUT WORKPLACE STRESS access to mental healthcare
CANNOT BE IGNORED. a right. This could improve
services for people with
mental illnesses. Dr Rahul
Shidhaye, an Associate
If you have a nagging neck pain, Professor at Public Health
frequent palpitations, persisting Foundation of India and
stomach flu, constant acidity or heading its mental health
division, says, “It is a pro-
ILLUSTRATIONS BY SAFIA ZAHID

poor-quality sleep, it is time to take
gressive Act and a very
notice. Simple but persistent ail- strong legal instrument that
ments could be an indicator that can help improve mental
all is not well. There are adviso- health services in the coun-
ries in cyberspace on how to cope try. As it provides access
with these issues, but seeking to mental healthcare as a
expert medical help is the right right, it also means that the
person concerned can take
thing to do. “Pain can be
the government to court if
a symptom of psycho- appropriate services are not
logical stress,” says Dr M. provided.” It also decriminal-
Phani Prasant, a consultant psychiatrist sleep adequate? What about my energy ises suicide, which means
from Hyderabad. In many cases, it is levels? What is my concentration level people who attempted to kill
linked to workplace anxiety and depres- at work? Does my work interest me? themselves may now easily
seek medical help without
sion. Companies and executives need to Addressing the causes will solve a major
facing the trauma of a police
deal with it at the earliest. Ignoring the part of the problem. Those who are probe. Then there is the
symptoms could be disastrous for indi- undergoing psychiatric treatment must provision of ‘advance direc-
viduals and costly for organisations. take their medicines religiously and tive’ whereby people, when
Dr Anand Nadkarni, a consultant should avoid double shifts or frequent healthy, can state in advance
psychiatrist at the Institute for Psycho- shift changes. their preferences for treat-
logical Health in Mumbai, also works ment. One needs to observe
how its application takes
with companies such as Reliance, Sie- Deal with other causes: You may think
place as some psychiatrists
mens, Cipla and Indoco Remedies. To you are living a blissful life, but it could may not be comfortable with
figure out if one is stressed, he looks at still leave you stressed. “If you are getting it. Setting up mental health
certain quantifiable (productivity drop, promoted, building a new house or review boards could also
absenteeism) and qualitative param- expecting a baby, life may seem exciting. open up the field to multiple
eters (lack of initiative while working in However, such things also bring addi- stakeholders, which again
a team, succumbing to monotony, reluc- tional responsibilities, and you may feel may not go down well with
tance to learn new things, withdrawal stressed,” says Dr Prasant. some clinicians.
from work-related meetings or staying
aloof even in the office cafeteria). “Do Try CBT, REBT: Dr Nadkarni thinks us-
not wait till the qualitative parameters ing cognitive behavioural therapy (CBT)
emerge,” he warns. should help. CBT is a psychosocial
intervention to improve mental health
Manage stress better: To manage and focusses on building coping strate-
stress, understand what is triggering it, gies, be it around thoughts, practices or
says Dr Prasant. “Drop or postpone the beliefs. For some of his patients, he has
things you are handling at the moment also applied rational emotive behaviour
to reduce the load.” But to get there, therapy, or REBT, developed by Ameri-
the first step is to monitor yourself and can psychotherapist and psychologist
ask some basic questions like: Is my Albert Ellis.

THE BREAKOUT ZONE
LUXURY
NEW INDULGENCES
SELECT PICKS FROM
THE WORLD OF
LUXURY ACROSS
The Urus will accelerate
from 0-100 km/h (62 mph)
in 3.6 seconds and will do
0-200 km/h (124 mph) in
12.8 seconds
AUTOMOBILE,
FOOD, FASHION
AND ART.
Auto Lamborghini revealed its than most of its rivals, (478 kW) at 6000 rpm and
first ‘super SUV’, the Urus, mainly because of the a max torque output of 850
Wheels
in early December. Prompt- extensive usage of carbon Nm (626,93 lb.-ft.) at 2,250-
ly after its global debut, the fibre reinforced polymer, 4,500 rpm. The Urus has
Italian marque will launch although it is based on a front-engine, all-wheel-
of Fancy the SUV in India, priced at

`3.5 crore, in January. The
name Urus comes from
the same platform as the
Audi Q7, Bentley Bentayga,
Porsche Cayenne and
drive layout, and a top
speed of 305 km/h, which
makes it the world’s fastest
aurochs – the ancestors of Volkswagen Touareg. The production SUV, beating
domestic cattle. At 2,200 engine is rated at a max the Bentley Bentayga’s
kg, the Urus is much lighter power output of 650 HP 301 km/h.
Food
LONDON ACCENT
London now has its plate full with modern Indian cuisine
– traditional with a creative spin. Chor Bizarre, Rohit
Khattar’s signature London restaurant has made way for
the very swish Indian Accent. The cool new interiors and
famous address (right next to London’s oldest Brown’s
Hotel, which opened its doors in 1837 and had regulars
such as Agatha Christie) couldn’t be a better mix for
Manish Mehrotra’s inventive food that regularly finds
mention in global fine dining top 50 lists. Will London be
as successful as the Indian Accent in New York and its
new address in Delhi, The Lodhi? With Mehrotra in the
kitchen, you can bet on it.

Watch
Time
on Call
Greubel Forsey is a
watchmaking com-
pany, specialising in ultra
high-end timepieces,
launched in 2004 by
Robert Greubel and
Stephen Forsey in La
Chaux-de-Fonds, Swit- Travel
zerland. The Greubel
In Defence of Art
Forsey Art Piece watches
tend to be philosophical
statements. The latest in
the series is meant to be Nahargarh Fort once formed the defence of Jaipur along
a memento mori of sorts,
with Amer and Jaigarh forts. One of its palaces, Madhav-
one that shows time only
on demand, with the endra Bhawan, built by Sawai Madho Singh, had suites for
dial being dominated the queens of Jaipur and at the head was a suite for the king
by an extra-large power himself. The rooms are linked by corridors and still have
reserve display instead. some delicate frescoes. Nahargarh was also the hunting
The Art Piece Edition 2 is residence of the Maharajas. But the only shooting being
a truly evolved creation done there now will hopefully be by enchanted tourists. The
for the bespoke times we Sculpture Park at Madhavendra Palace, a unique collabora-
live in, serving only when tion between the Government of Rajasthan and Saat Saath
commanded to do so.
Arts, co-founded by gallerist Aparajita Jain, finds itself host-
ing stunning sculptures by the best in the business, from
Bharti Kher to Subodh Gupta and Jitish Kallat to Anita Dube.
Fashion
DESIGNER
HUB
One Style Mile in
Mehrauli was meant
to be the new culi-
nary and couture hub
of Delhi. Food may not be
high on its agenda, except
for A.D. Singh’s trusty Olive, but
fashion stores are sure making a beeline for the
historic area in the shadow of the Qutb Minar. After
Tarun Tahiliani and Sabyasachi, Mumbai girls Anita
Dongre and Payal Singhal have now moved into the
plush Art Deco style buildings, eyeing the well-
dressed and well-heeled Delhi girls.

THE BREAKOUT ZONE
EX-LIBRIS
New On
The Shelf
THE LATEST TITLES
FROM THE WORLD
OF BUSINESS
AND ECONOMY
LES
LD
THE STARTUP WAY:

How Modern Companies es Use
Entrepreneurial Management
ement
to Transform Culture and
d
Drive Long-Term Growth h
By Eric Ries
Penguin UK; 384 pages;
s; `699
The book has insights,s,

ices
stories and best practices
ll
for organisations of all
up
sizes to harness start-up
techniques to embracee
hrive.
change, survive and thrive.

A BIOGRAPHY OF
INNOVATIONS:
From Birth to Maturity
By R. Gopalakrishnan
Penguin Random House
256 pages; `399
THE INHERITORS
By Sonu Bhasin
THE NEW WEALTH OF NATIONS: Penguin Random House
By Surjit S. Bhalla 304 pages; `299
Simon and Schuster; 224 pages; `599
Through a series of arguments, studies and

calculations, the book reminds us that education is
the new wealth and is, in fact, currently of a greater
magnitude than financial wealth and much more
equally distributed.
CORPORATE AVATARS:
How to Deal With Quirks
at Work
By Disha
Jaico Publishing House
193 pages; `299
SYSTEMS THINKING FOR

EFFECTIVE MANAGERS
By Prashun Dutta
Sage Publications
220 pages; `395
RESET:
My Fight for Inclusion and Lasting Change
By Ellen Pao MASTER OPPORTUNITY
Random House US; 288 pages; `699 AND MAKE IT BIG
A detailed account of a whistle-blower who By Richard M. Rothman
sued a powerhouse Silicon Valley venture capital Jaico Publishing House
firm, calling out workplace discrimination against 256 pages; `350
women and other underrepresented groups.
THE BREAKOUT ZONE
ONE
EX-LIBRIS
Realistic
View
THE BOOK OFFERS
CES
PRACTICAL EXPERIENCES
CUT THE CRAP
AND JARGON:
FOR ENTREPRENEURS, BUT Lessons from
FALTERS IN BITS. the Start-up
Trenches
By Alok Mittal By Shradha
Sharma
and T.N. Hari
Penguin
Random House;
CUT THE CRAP AND JARGON,, is a 328 pages; `499
take by Shradha Sharma and T.N. Hari
aimed at providing lessons from m the
repre-
start-up trenches to young entrepre-
eness
neurs. It recognises the uniqueness
ature
of start-ups relative to more mature
ain-
companies, in terms of uncertain-
cterise
ties and dynamism that characterise
ment.
a start-up’s operating environment.
trepre-
It has an interesting mix of entrepre- Unitary Helion), to the table. Their to do to be effective – MRMs and all.
neurs’ personal experiences, expert b
ability to distil start-up execution into Those topics are start-up -neutral and
views and theoretical construct around actionable steps will help entrepreneurs much better dealt with in other books.
management. get the basics right. Hiring a head Some other chapters like the one on
The book shines when Sharma of sales is one of the trickiest jobs in data science are also not specific to the
speaks from her experience. Her scaling a start-up, especially in the B2B start-up context.
fundraising story stands out as an domain, and Bala provides a practical Finally, the book fails to keep up
illustration of an entrepreneur’s quest guide to key considerations in this its promise of cutting the jargon as it
and her dilemmas, as also the battle process. Sanjeev offers good guidance falls back onto “five habits”, “FOMO”,
against disbelief that most external around driving execution to move quotes from HBR, and advising
parties approach a start-up with. She towards a high performance start-up. entrepreneurs to “consult extensively
explains clearly the importance of Beyond these gems, the book with local leaders and influencers”.
raising money for the right reasons, as really meanders. Often, it fails to focus You can find some real learnings if
well as the humility required not just on its core audience – the start-up you hunt for it. These appear especially
to raise money, but in everything one entrepreneur. It starts to enumerate on account of the real experiences
does as an entrepreneur. Similarly, her examples and commentaries that are brought to the fore in the book. Feel
piece on ‘nuts and bolts of hiring’ is irrelevant to her – instances of global free to gloss over the large sections
instructive and practical. leaders scheduling conference calls though, as you prioritise your time to
The authors have also done a good and debates on whether Softbank focus on the most important task at
job in bringing advice from experienced will make money for its LPs are hand – building your company.
entrepreneurs, especially Sanjeev unlikely to be useful to most Indian
(Aggarwal, Co-founder of Helion entrepreneurs. Very often, the authors The reviewer is Co-founder and CEO,
Ventures) and Bala (Srinivasa, MD, delve deep into what managers need Indifi Technologies, a fintech start-up
4 I BUSINESS
January TODAY
28 I 2018 I BUSINESS 30 I 2017
I AugustTODAY I 141
THE BREAKOUT ZONE
BT HR FORUM
THE HR QUESTION
touched upon the two topics listed
for discussion – how critical is culture
when hiring for a start-up and how
to keep productivity high in a slow-
growing economy. The highlight of the
BUSINESS TODAY KNOWLEDGE FORUM ON HR evening was a powerful speech by K.T.
DISCUSSES STAFFING ISSUES AT START-UPS AND Rama Rao, a young Cabinet Minister
PRODUCTIVITY CHALLENGES. of Telangana and the Chief Guest of
By E. KUMAR SHARMA the event.
Power of Jugaad
Calling India a country that has the
world’s largest ‘thinkforce’ as against
‘workforce’, the Minister urged HR
professionals to explore innovative
ways to harness human resources.
Citing the example of the Telangana
government, he said that for the state’s
four lakh government employees,
serving a total of four crore citizens is
a difficult task that requires collective
thought and purposeful execution.
The Culture Quotient

The first panel discussion on the topic
– Is Culture Critical To Hiring For
Start-Ups – was moderated by Rama
Iyer, Senior Vice President and Head,
PHOTOGRAPHS BY ARSHANAPALLY SHIVA
“India is a country with

the world’s largest
‘thinkforce’... We need to
explore innovative ways to
harness human resources”
Innovation and Strategic Alliances,

at T-Hub. Other panellists included
Rishi Raj Gupta, HR Leader, Facebook
K.T. Rama Rao, Minister for IT, Electronics & Communication, Municipal India; Pradeep Dhobale, Co-founder
Administration & Urban Development, Industries & Commerce,
Mines & Geology, Public Enterprises and NRI Affairs and Director of Springforth Invest-
ment Managers, and Suryanarayana
T
Kodukulla, Director, People Ops,
he last month of 2017 saw get the most out of their most precious Google India.
some of the finest brains of resource – their employees. Iyer said culture could prove
India Inc. and the academic The event, held in the city for critical to hiring for start-ups as it is
world brainstorm on chal- the third time in a row, began with a important that the employee buys into
lenges facing HR manag- welcome address by Prosenjit Datta, the vision. Dhobale said for a start-up,
ers. The Business Today Editor, Business Today. “Despite the growth is so important that bringing
Knowledge Forum in Human advent of automation and technology, in culture as an additional component
Resources, held on December 14 in there is no company today that can while hiring may not work. Instead,
Hyderabad, saw HR practitioners from say it has reached success without its start-ups should look for basic values
different industries talk about how to people’s contribution,” he said. Datta such as integrity, teamwork and the

(L-R): P.N.S.V.
Narasimham, Sr VP &
Global Head - HR, Cyient;
Prof S. Ramnarayan, ISB;
B. Jaikrishna, President
- Group HR, Corporate
Communications & New
Business Development,
Amara Raja Group; S.
Bandyopadhyay, HR
Head, ITC Paperboard
& Speciality Papers
Division; K. NarayanRao,
Chief General Manager
- HR, NCC Ltd; B. Sheela
Rani, Director- Research,
Sathyabama University;
E. Johnn Bruce, Dean -
Placements & Corporate
Affairs, Sathyabama
University
(L-R): Rishi Raj Gupta,

HR Leader- Facebook
India; Rama Iyer, Senior
Vice President, Head -
Corporate Innovation &
Strategic Partnership,
T-Hub; Suryanarayana
Kodukulla, Director,
People Ops, Google
India; Pradeep Dhobale,
Co-founder and Director,
Springforth Investment
Managers
ability to fit in new roles. Google’s of Business (ISB). He talked about the aspects that sustain growth. These
Suryanarayana said culture is embed- attributes of some high-growth organ- had to do with not separating project
ded in the four attributes that they look isations, including clarity on the need execution and business development
for, and these include general cognitive for change and different mindsets roles. P.N.S.V. Narasimham, Senior
ability, role-related knowledge, googli- such as purpose-orientation, people- Vice President and Global Head,
ness and leadership. orientation and learning-orientation. HR, Cyient, mentioned some critical
Rishi Raj Gupta said getting the B. Jaikrishna, President, Group cultural aspects such as the element
right people on board was critical. Iyer HR, Corporate Communications of anticipation with a high level of
turned to the famous Peter Drucker and New Business Development, at active preparedness and flawless
line: Culture eats strategy for breakfast. Amara Raja Group, felt there were execution capabilities.
According to Gupta, what you do is both soft aspects (core values and Sibsankar Bandyopadhyay, Head
strategy and execution but how you do core purposes of an organisation, of HR, ITC Paperboard and Speciality
it is the culture component. communication and connect) and Papers Division, said the company
hard aspects (those around produc- had different approaches towards
Productivity Challenge tivity enhancement). skilling, from working with under-
The second discussion – How to K. NarayanRao, Chief General privileged people to tying up with
Keep Productivity High in a Slowing Manager, HR, NCC Ltd, said apart technical institutes such as ITIs.
Economy – was moderated by Profes- from leaders leading by example, The event was sponsored by
sor S. Ramnarayan of Indian School there would be some important Sathyabama University.

LEADERSPEAK
AJAY S. SHRIRAM
Chairman and Senior Managing Director, DCM Shriram

Q. The biggest challenge you Q. One management lesson
faced in your career for young people
A. DCM Ltd was split in 1990, and my brother A. There are many intelligent and practical
Vikram and I were responsible for the chloro- people, but one grows by having an open
vinyl and fertiliser complex at Kota and mind. The biggest negative is to think one has
Swatantra Bharat Mills in Delhi, all in bad a monopoly on brains. What’s most important
shape. Our biggest challenge was to know our is working with people and building a team of
people, interact with them and turn around competent people to achieve goals.
the businesses. It was done with support from
people who had been with us for over 10 years.
Q. Three essential qualities
a leader must have
Q. Your best teacher in business
A. Leaders must create an ethos where
A. The person I had always admired was teams can work for the common good of an
Dharma Vira (former Cabinet Secretary) from organisation. They should handle difficult
whom I learnt the value of relationships, fair play, situations with optimism. They must infuse trust
helping others and showing respect. I have tried and build a strong value system where there will
to imbibe these values in my day-to-day life. be mutual respect and understanding.
“PEOPLE GROW BY HAVING AN OPEN MIND. THE BIGGEST NEGATIVE

IS TO THINK ONE HAS A MONOPOLY ON BRAINS”
144 Vol. 27, No. 2, for the fortnight January 15—28, 2018. Released on January 15, 2018. Total number of pages 146 (including cover)
MONEY TODAY
RNI No. DELENG / 2006 /
18800 *Not for sale. To be
circulated free with Business
Today in Mumbai, Delhi & NCR,
Chennai, Bangalore and
Kolkata. “Supplement to
Business Today issue dated
January 28 2018”.
January 2018
How to ‘INDIA NEEDS Best

manage STANDARD mutual
health funds
insurance PROTOCOLS IN and loan
costs Pg 14 HEALTHCARE’ Pg 18 rates Pg 30
SAVING TAX
Tips to make the most of the
income tax exemptions
RNI No. DELENG / 2006 / 18800 *Not for sale. To be circulated free with Business Today in Mumbai, Delhi & NCR,
Chennai, Bangalore and Kolkata. “Supplement to Business Today issue dated December 31 2017”.
MONEY TODAY www.moneytoday.in
CONTENTS
COVER STORY
Editor-in-Chief: Aroon Purie

Group Editorial Director: Raj Chengappa

Editor: Prosenjit Datta
Group Creative Editor: Nilanjan Das,
Senior Editor: Mahesh Jagota
Senior Associate Editor: Teena Jain Kaushal
Assistant Editor: Renu Yadav
Correspondent: Priyadarshini Maji

Photo Editor: Reuben Singh
Deputy Chief Photographer: Shekhar Ghosh
Principal Photographers: Rachit Goswami,
Nilotpal Baruah
Senior Photo Researcher: Sudhansh Sharma

ART
Assistant Creative Editor: Safia Zahid
Associate Art Directors: Amit Sharma, Ajay Thakuri
4
Assistant Art Director: Rajkumar Wahi
Chief Designers: Vikas Gupta, Raj Verma
Senior Designers: Devender Singh Rawat
OPTIMISE YOUR

PRODUCTION
Chief of Production: Harish Aggarwal
Senior Production Coordinators:
Narendra Singh, Rajesh Verma
Publishing Director: Manoj Sharma

Associate Publisher (Impact): Anil Fernandes
Impact Team
Senior General Manager: Jitendra Lad (West)
General Manager: Upendra Singh (Bangalore)
TAX SAVINGS
A guide to aligning tax savings with the
Deputy General Manager: Kaushiky Gangulie (East) overall portfolio goals.
FIGURE OUT YOUR

14 UPHILL STRUGGLE 24 PRIORITIES TO
MOVE FORWARD
A sharp hike in health
insurance premiums leaves the IT professional Priya Gupta is
elderly in the lurch, but there planning to get married, but
are ways to safeguard one’s she has dependent parents and
sunset years. inadequate insurance. Setting
priorities and working on action
items will help her achieve key
goals, says financial planner
Pankaaj Maalde
20 MONEY MATTERS
Managing your money can be 30 THE WINNERS

tricky. Send your queries, and
top-notch industry leaders will Six-month returns of debt
help you resolve any issue. funds have been disappointing
Volume 13, Number 1, January 2018
Copyright Living Media India Ltd. All rights reserved throughout the
world. Reproduction in any manner is prohibited. Published & Printed
by Manoj Sharma on behalf of Living Media India Ltd. Printed at INTERVIEW
Thomson Press India Ltd., 18-35, Milestone, Delhi-Mathura Road, 18 ANTONY JACOB
Faridabad-121007, (Haryana). Published at K-9, Connaught Circus, New
Delhi - 110 001. Money Today does not take responsibility for returning
unsolicited publication material.
“India Needs Standard
Protocols in Healthcare”
Cover by Ajay Thakuri
IMPACT > SNIPPETS
BANKING
Invalid
Cheque
Books
If you are an account
holder in any of the six
erstwhile banks that
had merged with the
public sector behemoth
State Bank of India (SBI),
ILLUSTRATIONS BY RAJ VERMA

your chequebook has
become invalid from
January 1, 2018. These
banks include State Bank
of Patiala, State Bank of
Mysore, State Bank of
Bikaner and Jaipur, State
Bank of Travancore,
State Bank of Hyderabad
and Bharatiya Mahila
Bank. Now customers
will have to apply for
new chequebooks and
those will have a new
Indian Financial System
Code, or IFSC, an 11-digit
alpha-numeric system
that uniquely identifies
SMALL SAVINGS SCHEMES
all bank branches
participating in the
Reserve Bank of India’s Small Savings to Yield
Lower Returns
fund transfer system.
Recently, SBI changed
the names and codes of
nearly 1,300 of its 25,000
T
branches in the major he interest rate on small are also linked to the yield of
cities owing to its merger savings schemes such as government securities of similar
with the five associate public provident fund (PPF), maturity period. The interest
banks and the Bharatiya Sukanya Samriddhi Scheme (SSS), rate on PPF has been reduced
Mahila Bank. National Savings Certificate (NSC) from 7.8 per cent to 7.6 per cent.
and Kisan Vikas Patra (KVP) will The interest rate on the girl child
fetch lower interest rate in the savings scheme has dipped from
January-March quarter as the 8.3 to 8.1 per cent. KVP will
government has reduced the rate now fetch 7.3 per cent while the
of interest by 20 basis points (100 interest rate on Senior Citizen
basis points are equal to one per Savings Scheme (SCSS) has been
cent). Since April 2016, interest kept unchanged at 8.3 per cent,
rates on small savings schemes which is paid quarterly, but it is
have been market linked and fully taxable.
2 I MONEY TODAY I January I 2018

CRYPTOCURRENCY
Stay Away from Bitcoin

T he ongoing frenzy to invest in Bitcoin
and its ilk is not letting up even after
multiple warnings from the Reserve Bank
of India. Now the finance ministry has
issued a similar warning, cautioning peo-
ple against investing in virtual curren-
cies. The ministry said in a notification DIGITAL BOOST
that the virtual currency is not a legal
tender in India, does not have any intrin- GOVERNMENT TO PAY
sic value and is not backed by any asset. MDR CHARGES
T
The rise in price may be a mere specula-
o boost digital transactions,
tion and hence, can expose investors,
the government has decided
especially retail investors, to the sudden
to bear the merchant discount rate
risk of losing their hard-earned money.
(MDR) charges on transactions up
As these currencies are stored virtually,
to `2,000 made via debit cards,
they are also vulnerable to hacking, the
BHIM UPI or Aadhaar-enabled pay-
ministry says.
ment systems. The government will
pay the charges for two years start-
ing from January 1, 2018. MDR is the
fee paid by merchants for card ser-
MARKETS vices and installation of
34,057
swiping machines. For
SEBI MANDATE small merchants with
an annual turnover of
M arkets regulator SEBI has decided up to `20 lakh, MDR has

that any shareholder with 10 per been fixed at 0.40 per
cent stake in an asset management cent with a cap of `200
The new peak touched by S&P company cannot hold 10 per cent or per transaction. For
BSE Sensex in 2017. Equity more stake in another fund house to those with more turn-
markets performed well in avoid conflict of interest. It has also over, MDR charges will
2017 with the BSE Sensex, the come out with a consultant paper to be 0.90 per cent with a
broad equity market indicator, differentiate between mutual fund cap of `1,000 per trans-
delivering a return of 30 per distributors and advisors. action. For transactions
cent. But it failed to outperform via QR code, MDR rates
its smaller counterparts – BSE for small merchants will
Smallcap and BSE Midcap be 0.30 per cent while
– which delivered 63 per others will pay 0.80 per
cent and 51 per cent returns, cent (in each case the
respectively. cap will be as men-
tioned above).
QUOTE
Slower growth in 2016/17 reflects lower growth

in ind
industry and services. Economic growth
of
o a country depends on a number of
factors,
fa including structural, external,
fiscal and monetary
Arun Jaitley, Finance Minister

PHOTO
COVER STORY > TAXATION
OPTIMISE YOUR
TAX SAVINGS
A guide to aligning tax savings
with the overall portfolio goals.
By Renu Yadav
Illustrations by Raj Verma
W
e are approaching that time of the year again when we
have to look at our finances afresh to see if we are using all
the options available to us to save tax. As the deadline for
furnishing proofs of tax-saving investments approaches,
most of us rush to buy tax-saving products without look-
ing at their suitability to our larger portfolio. Financial
experts warn against this. “Saving tax should be an inci-
dental pursuit, not the main one. The investments being
done should be in line with the overall goals,” says Suresh
Sadagopan, Founder, Ladder 7 Financial Advisories.
There is a plethora of instruments for tax-saving with each having
different lock-in periods, duration and return/risk profile. Therefore,
one instrument may not be suitable for all. For instance, a young person
may find tax-saving mutual funds a better choice while an older person
close to retirement might go for fixed-income options. Also, with interest
rates on fixed deposits at a decade low, these are no longer the obvious
option for many. People are scouting for options.
January I 2018 I MONEY TODAY I 5

“A tax planning instrument could either be fixed income Tax saving instrument Returns Lock-in period
oriented, or 100 per cent equity, or hybrid, that is, a combina- (in years)
tion of equity and debt. Thus, the choice may vary depending ELSS Market linked 3
on the investor’s risk tolerance and comfort with volatility,” Ulip Market linked 5
says Vishal Dhawan, Founder and CEO, Plan Ahead Wealth NPS Market linked Till 60 years of age
Advisors.
EPF 8.65% Until retirement
Let’s understand the different tax-saving options that we
can avail of. PPF 7.60% 15
NSC 7.60% 5
Options Under Section 80C FD's- Banks and Post 6.50% 5
offices
There is a deduction of `1.5 lakh available under Section 80C. Senior citizen savings 8.30% 5
Here are some of the investments that are covered under this. schemes
Traditional insurance 5-6% 3
policies
1. Equity Linked Saving Schemes (ELSS)
Sukanya Samriddhi 8.10% 18
Scheme
These are mutual funds which invest in equity and related
instruments. These can be a good point for starting investing
in mutual funds. These work like normal equity funds but with
varying strategies — some have a higher exposure to mid- and Expenses you can Deduction
claim as deduction Limit
small-cap stocks while some focus on large-caps. Choose the
one that suits your risk profile. It is always advisable to invest Life Insurance premium `1.5 lakh under
paid during the year Sec80C
through a systematic investment plan rather than in one go to
average out costs and lower risk. Tution fee of up to
two children
Payment of home loan
Lock-in: Three years, the least among all tax-saving instru- principal
ments.
Stamp duty registration
charges paid
Returns: Will depend upon the performance of equity markets HRA against the rent
as well as the performance of stocks in which the fund man- paid
ager has invested. These have the potential to deliver the high- Health insurance up to `25,000
est returns among tax-saving instruments. The past one-year premium
average return from these funds is around 42 per cent, while Leave travel allowance LTA received as
the three-year return is 15 per cent. part of salary or
actual expense
Taxation of gains: As gains from equity after one year are tax
free, there will be no tax if you withdraw the money after the
lock-in period of three years.
2. Public Provident Fund (PPF)
It is one of the most popular tax-saving options. However, PPF

interest rates have fallen to a low of close to 40 years, in line
with the fall in yields on government bonds to which they have
been linked; the rates are revised quarterly. Still, they are far
above what banks are offering on fixed deposits. The best part
is that the returns are not taxed. Given these benefits, experts
strongly recommend this product for tax saving, especially to
those who fall in the 30 per cent tax bracket. “Self-employed
individuals could also consider investing the maximum per-
missible amount of `1.5 lakh. The salaried should put in an
amount such that the exposure to the EPF is also kept under
consideration. Roughly, these investors can invest one-fourth
of the amount in PPF and the rest in shorter lock-in products
like ELSS,” says Vishal Dhawan of Plan Ahead Wealth
Advisors.

certain specified circumstances.
Return: Fixed by the government once a year.
Taxation: Withdrawals are tax free. Just like PPF, it also falls
under the EEE tax regime – exempt at all three stages of
investment, accumulation and withdrawal.
4) National Savings Certificate
It is another popular small savings scheme which provides

guaranteed income. There is no investment cap.
42%
Lock-in: Five years.
Return: At present, NSC is offering 7.6 per cent. Like other

small savings schemes, the rate is aligned to yields on govern-
ment securities of the same maturity and revised every quarter.
The interest accrues every year but is paid at maturity.
Taxation: Interest is added to the income of the investor and

taxed. This reduces the effective return of the instrument.
The average annual 5) Unit-Linked Insurance Policy
returns of tax-saving It is a financial instrument which provides the benefit of both

funds in past one year life insurance and investment.
Lock-in: Five years.
Lock-in: Fifteen years. Partial withdrawal is possible under Return: As ULIPs invest in market instruments such as debt
certain circumstances from seventh financial year onwards. and equity, the returns will depend upon the performance of
In 2016, the government allowed premature closure after five the underlying instrument(s).
years for medical emergency and higher education after paying
a penalty of 1 per cent less interest as applicable from time to Taxation: If the premium paid on the policy is less than 10 per
time. cent of the sum assured for policies purchased after April 2012
and 20 per cent before that, the amount received on maturity
Return: PPF provides guaranteed return but the interest is exempt from tax. If it higher than 10 per cent, the entire
rate is aligned to yields on government securities with a small amount is added to the income and taxed as per the person’s
mark-up. The rates are subject to revision every quarter. The income tax slab.
latest is 7.6 per cent for quarter ended March 31, 2018. For a
person in the highest tax bracket of 30.9 per cent, the effective 6) Sukanya Samriddhi Scheme
tax rate comes to 10.86 per cent.
Parents or legal guardian of a girl child up to the age of 10
Taxability: All the gains are tax-free. years can open an account in the name of the child and invest
up to `1.5 lakh a year. The minimum investment is `1,000
3) Employee Provident Fund (EPF) every year. One can open up to two accounts under the
scheme. The third can be opened if case of twins.
It is a retirement benefit scheme available to all salaried em-
ployees. Under this, every month, you contribute 12 per cent Lock-in: The account can be closed after the child turns 21.
(basic plus dearness allowance) to your EPF account. Your Premature withdrawal of up to 50 per cent accumulated sum
employer makes a matching contribution. is possible after the child turns 18 but only for the purpose of
marriage or higher education.
Lock-in: You can withdraw the entire amount at the time of
retirement. You can also withdraw if you stay unemployed for Return: The interest rate is linked to G-sec yields with a mark-
more than two months. Partial withdrawal is possible under up and is subject to revision every quarter. The current interest

8.1%
The return on
Sukanya Samriddhi
Scheme
rate is 8.1 per cent. off for the loss was capped at `2 lakh per year. The remaining
amount can be carried forward for the next eight years. This
Taxation: It falls under the EEE tax regime. has substantially reduced tax benefits from second house
property. However, remember that deduction against interest
7) National Pension System paid on home loan can be availed of after the construction
of the property is complete. Also, the construction should be
This makes you eligible for three types of deductions. complete within five years from the date the loan is taken; if
a. Up to `1.5 lakh under Section 80C. the property is not constructed within five years, the deduc-
b. Apart from this, an additional deduction of `50,000 is al- tion limit gets reduced to `30,000 per year.
lowed under Section 80CCD (1B). This is over and above what
you can claim under Section 80C. 3)House Rent Allowance
c. An employee can also claim deduction against contribution If you are a salaried person staying on rent and house rent al-
made by the employer of up to 10 per cent of the salary (basic lowance, or, HRA, is part of your salary, you can claim deduc-
salary plus dearness allowance) under Section 80CCD(2). tion of the minimum of the these three amounts:
There is no limit on this deduction. a. Actual HRA received
b. 50 per cent basic salary plus dearness allowance if living in
Lock-in: Till retirement, that is, 60 years of age. a metro and 40 per cent if living in a non-metro.
c. Actual rent paid minus 10 per cent of salary.
Return: Market-linked, will depend on the allocation to equity
and debt. If you are staying with your parents, you can pay them
rent and claim deduction. They will have to show the amount
Taxation: At the time of maturity, 60 per cent amount can be received as their income.
withdrawn; the rest has to be invested in annuity. Of the 60
per cent withdrawable amount, 40 per cent is tax-free. 4) Deduction on rent paid for self-employed:
If you are not a salaried person or HRA is not part of your
EXPENSES THAT CAN BE CLAIMED salary, you can still claim this deduction if you are staying in
AS DEDUCTION a rented accommodation. The deduction amount will be the
least among the following.
The cap of `1,50,000 under Section 80C means you have to
look at other options too as your income rises. a. 25 per cent of the total gross income
b. `5,000 per month (till 2016, the limit was `2,000 per
1) Interest deduction on home loan: month)
c. Actual rent paid minus 10 per cent of total income
Home buyers are allowed a deduction of up to `2 lakh on
interest paid on home loan taken to buy a self-occupied house 5) Health insurance:
property. In case of second house property, the interest paid The premium paid by you is eligible for tax deduction of up
during the year is allowed to be deducted from income from to `25,000 for self, spouse and children. In case of senior citi-
house property. Till last year, the entire loss was allowed to zens, the deduction limit is `30,000. This includes preventive
be set off against other income, but in Budget 2017, the set health check-ups of up to `5,000.

6) Interest earned up to `10,000 from savings bank account is

exempt from tax.
7) Deduction on education loan:

If you have taken a loan for higher education of your child, self
or spouse or a child of whom you are a guardian, you can claim
deduction against interest paid for up to eight years or the
tenure of the loan, whichever is earlier. There is no deduction
on the principal repayment.
Save tax by restructuring salary
Making some tweaks in your salary structure can also help you
10.86%
save tax. Following are some allowances and reimbursements
which are not taxed and can be made part of the salary.
1. Conveyance allowance: One can claim an amount of up to
`1,600 per month under this.
2) Medical reimbursement: Non-taxable up to `15,000 per

annum subject to submission of medical bills (of self and
dependents).
3) Uniform allowance: Non-taxable subject to submission of The effective rate on

bills (self only). Even laundry and dry-cleaning bills can be
submitted. public provident fund
for a person in the
4) Knowledge update: Non-taxable subject to submission
of original bills of training, books, magazines, periodicals, highest tax bracket
seminars, etc.
Invest in the name of your adult child or parent: If you
5) Telephone/internet reimbursement: Non-taxable subject invest in the name of your minor child or spouse, the income
to submission of original bills of landline/internet connection, will be clubbed with your income for taxation, but if you gift
provided these amounts are not claimed as official expenses. money (gift tax does not apply in case of relatives) to your
parent or your adult child (above 18 years of age) and invest in
6) Meal voucher: Non-taxable up to `2,000-2,500 per month. their name, you can save tax, as the income will be taxable in
(` 50 per meal * 2 meals per day * working days) their hands. Suppose your parents are senior citizens and don’t
have any income of their own. In such a case, you can gift them
7) Gift Voucher: Non-taxable up to `5,000 per year money to invest; income of up to `3 lakh from the investment
(exemption for senior citizens) or `5 lakh in case of super
8) Leave Travel allowance: Exemption is available on submis- senior citizens will be tax exempt in their hands.
sion of travel bills. You can claim LTA twice for two domestic Pay health insurance premium for your parents: Apart
trips with family in a block of four years. ‘Family’ includes from the `25,000 deduction that you can avail of against the
spouse and children and parents, brothers and sisters who are health insurance premium paid for self, spouse and children
wholly or mainly dependent on you. Only expenses incurred under Section 80D, you can also get an extra deduction of
on travelling are covered. `25,000 (for parents less than 60 years old) or `30,000 (in
case of senior citizens).
Take help from family Create HUF (Hindu Undivided Family): You can also cre-
ate an HUF and transfer inherited property or corpus to the
Pay rent to parents: If you stay with your parents and HRA is HUF. Otherwise, the additional income will normally be taxed
part your salary, you can pay them rent and claim HRA deduc- in your or your spouse's name, which can be hefty sum if you
tion. Your parents will have to show the rental income in their fall in the 30 per cent tax bracket. The income would be taxed
returns. If their income is below the exempted limit, they will in the hands of the HUF. As the HUF can avail of an exemp-
not have to pay any tax on it. If they fall in a tax bracket that is tion limit of `2.5 lakh, the tax would be much less.
lower than yours, they will have or pay lesser tax than you. So,
as a family, you can save more tax. renuyadav08

INSURANCE > HEALTH
UPHILL STRUGGLE
A sharp hike in health insurance premiums leaves the elderly in the
lurch, but there are ways to safeguard one’s sunset years.
By Teena Jain Kaushal; Illustration by Raj Verma

R
etired serviceman C.M. Sardana, 72, is mulling tive Officer, Max Bupa Health Insurance, says, “Insurance
whether he should give up his health insurance. companies look at the age band, claim cost and incidents,
Last year, the premium doubled as the insurer and then rework the pricing models. So, it is not linked to a
‘rationalised’ the rates without giving specifics that particular person. It is based on a statistical model of certain
caused the sudden hike. “Every year the company groups and age bands.”
is raising premiums at an average rate of 10 per While rising health cost has been a serious concern, many
cent citing high medical costs. But last year, it in the industry are considering effective ways to reduce the
went up 100 per cent. It is too much to bear at my premium load for senior citizens. Antony Jacob, CEO, Apollo
age,” he says. According to Sardana, he has made Munich Health Insurance, says, “To provide a suitable solu-
only three claims over a span of 20 years and the last two tion to senior citizens, we have launched Health Wallet that
added up to `32,000. comes with a ‘reserve’ benefit. Every year, the unused amount
Delhi-based K.N. Bahadur, aged 70, has a similar story is carried forward and earns a bonus of 6 per cent. This ac-
to share. “It was a rude shock for me when the premium cumulated reserve can be used to pay up to 50 per cent of the
jumped by 40 per cent.” He bought a family floater policy in renewal premium, post five continuous renewals.”
2006, paying `15,000, and the premium rates have steadily Whatever might be the reason, with insurers more
risen ever since.“I wanted to increase the cover, but after the interested in roping in young people to have the favourable
premium hike, I dropped the idea.” Bahadur currently pays a law of numbers, senior citizens have been struggling to meet
premium of `56,000 for `4,80,000 sum insured. He claimed the high cost out of their savings. Here are some options to
`70,000 in 2016. tackle high health premiums.
At a time when their income has gone down sharply due
to declining interest rates, millions of senior citizens like Sar-
dana and Bahadur are struggling to cope with a sharp hike
in premium rates which have hit them hard. Many of them “Every year the company is raising
do not have additional funds to fall back on and hence, are
forced to pay high premiums during their sunset years.
premiums at an average rate
There are several reasons behind the jack-up in premium of 10 per cent citing high medical
costs. But last year, it went up
rates. Over the past decade, India is facing a double-digit
healthcare inflation rate of 15-20 per cent compared to gen-
eral inflation that is rising at the rate of 4-5 per cent. Experts
say if the price revisions (due to inflation) are applied at one 100 per cent”
go, the effective increase is bound to be significant. C.M. Sardana
Another reason could be cross-subsidy. Over the past few
years, premium rates for group insurance policies have come
down significantly because of stiff competition, and the retail
segment is cross-subsidising them. Commenting on the de-
velopment, S.K. Sethi, Vice President, Insurance Foundation
of India, says, “Insurance companies continue to offer lower
rates to group insurance policies to improve their market
share, but they keep increasing premium rates for retail poli-
cies, hitting senior citizens the most.” The industry regulator,
however, should consider senior citizens who are paying a
high cost for health insurance, he adds.
According to Vaidyanathan Ramani, Joint Head of the
Health Insurance Business Unit at Policybazaar.com, “The
health market has undergone significant rule changes over
PHOTOGRAPHS BY SHEKHAR GHOSH
the past five years. From guaranteed renewability to no-

claims-based loading, these terms have impacted pricing.
Products, which have been repriced for the first time under
these rules, are bound to show significant changes in pric-
ing.” In many cases, customers are migrated from an older
product to a newer one with more features like non-reducing
no-claims-bonus, Ayush coverage and so on, and that could
lead to a change in premium rates.
Does making a claim affect premium rates in the next
year? Ashish Mehrotra, Managing Director and Chief Execu-

INSURANCE > HEALTH
Underwriting, Reinsurance and Claim, ICICI Lombard

GIC. Therefore, senior citizens may consider reducing the
“It was a rude shock when the

sum insured in their basic health policies (which will reduce
premiums) and increase the cover via top-up plans.
premium jumped 40 per cent. I There is one catch. While creating an additional cover, go
for a super top-up plan as it takes into account all the claims
wanted to increase the cover, but submitted during a policy year and the deductible applies to
the total sum. But under a top-up plan, every hospitalisation
after the hike, I dropped the idea” is considered as a separate claim, and the deductible applies
to each hospitalisation.
K.N. Bahadur
So, what is cheaper, a top-up or a super top-up? “In case
of super top-up plans, the probability of triggering the cover
is higher compared to top-up plans (due to cumulation of
claims), and the premium is adjusted accordingly due to the
aggregate deductible,” explains Puneet Sahni, Head of Prod-
uct Development at SBI General Insurance.
Build a Health Fund
If you decide not to continue with your current policy

because the risk-return equation is not working out, invest
in debt funds or fixed deposits to build a substantial health
fund. Mutual funds are also launching health cards to help
people. For instance,ICICI Prudential Asset Management
Company has come up with ICICI Prudential Savings
Fund, a debt scheme that allows one to present the card at
the hospital and sign the redemption form. It is advisable
to start a health fund besides buying a health insurance
policy as many illnesses are not covered by insurers.
If you are not prepared for such crises, they can create
a hole in your pocket.
Go Porting
Porting has to be initiated within 45 days of policy renewal

and must be completed before the end of the 30-day grace
period. However, people with pre-existing diseases or those
Top-up and Super Top-up who had medical complications during the term of the origi-
nal policy are bound to face a lot of difficulties. For instance,
Top-up plans offer extra cover at a reasonable rate, aimed at applications from those with critical diseases are not accept-
bridging the gap between existing policy cover and the actual ed. A new insurer can also ask for fresh underwriting in case
cost. These are regular indemnity policies, but far cheaper a policyholder has any medical history. Moreover, the new
than buying a new policy. Top-ups take care of hospitalisa- company may insist on submission of documents of the past
tion expenses over and above the deductible amount – an four years or more to check whether any claim was made. So,
amount that has to be paid by a policyholder before a top-up porting a policy, especially in case of senior citizens, is easier
is triggered. For example, you can buy a regular health policy said than done.
with `5 lakh sum insured and then buy a top-up plan of `10 Finally, discontinuing the existing health insurance plan
lakh with a deductible of `5 lakh. In case of hospitalisation, and buying a new one from a different insurer is not at all
if the bill amounts to `8 lakh, you can claim `5 lakh from advisable as you will lose out on accumulated benefits earned
your basic policy and the remaining `3 lakh could be availed over the years. The chances are high that insurers may reject
from your top-up plan, which gets triggered when the your proposal due to higher age bracket. As medical costs
deductible is paid. tend to rise during old age, one should continue with the
“The premium for a top-up is cheaper than the premium existing policy and top it up with cheaper plans.
for a normal plan with similar features as the former mostly
acts as a supplementary policy that offers the dual benefits of
high sum insured and low pricing,” says Sanjay Datta, Chief, @Teena_Kaushal

INTERVIEW > ANTONY JACOB
“INDIA NEEDS
STANDARD
PROTOCOLS IN
HEALTHCARE”
H
ealth insurance is one of the fastest growing
segments in the insurance industry. However,
only 27 per cent of Indians have opted for
health coverage, according to a recent report
jointly published by FICCI and KPMG. The
study also reveals that out-of-pocket expendi-
ture accounts for 62 per cent of the total healthcare
spending against a global average of 18 per cent, un-
derlining a significant gap between requirement and
pre-financed health coverage. In a conversation with
Teena Jain Kaushal, Antony Jacob, CEO of Apollo
Munich Health Insurance, discusses the challenges
faced by the health insurance sector in India and
what will drive growth in 2018. Edited excerpts:
Q: What are your views on IRDAI’s recent move to

link Aadhaar with insurance policies?
A: Making Aadhaar-insurance linking mandatory is a

good initiative, in sync with the government’s digitisa-
tion mission. The new mandate will help streamline the
KYC (know your customer) process and prevent fraud-
ulent claims. It strengthens our capabilities to know our
customers better and service their needs. Such an initia-
tive will also make the claim process faster. Initially,

there could be short-term challenges, but in the long
term, it will help minimise inconveniences and improve
overall customer experience.
Q: What is your take on the use of wearables in

healthcare and health insurance space?
A: Wearables in healthcare and health insurance are

an enduring trend. A future with integrated wearable
devices looks promising, but our company has a different with our network providers to ensure better utilisation of our
approach. We think the use of mobile technology may equally customers’ health insurance.
serve the purpose. Smartphone apps provide the same cut-
ting-edge user experience that the trending wearable devices Q: Medical conditions such as depression are not yet
claim to deliver. Moreover, people tend to discard wearable covered in India. What should be done to expand
devices after some time, but they will never stop using their the coverage?
smartphones. So, it is wiser to use handheld devices.
Apollo Munich has launched Stay Active to help people A: In India, there are still taboos and stigmas around mental
to lead a healthy and avoid the hassles of buying wearable health problems due to which people don’t seek proper treat-
devices. The programme enables policyholders to earn up ment. Also, mental health professionals, especially those who
to 8 per cent renewal discount depending on the distance are well trained and certified, are too few in our country – 0.3
they walk during a year. Customers just need to download psychiatrists per 1,00,000 people. Nevertheless, health insur-
our Health Jinn app on their Apple or Android phones to
avail the benefit. We are trying to ensure better engagement
with the help of this app, and a renewal discount encourages
people to take more steps towards a fitter future. “In India, low adoption of standard
Q: How affordable is Indian healthcare compared to protocols for various treatments
the West?
leads to a difference in healthcare
A: Affordability and quality of healthcare are corroborated by
the growing number of medical visas issued by India, which
cost. A standardised system should
increased 45 per cent in 2016 compared to the year before. be established, which could help
develop appropriate
India is rapidly growing as a medical hub, and it is strength-
ening the country’s position as a preferred destination for
medical tourism. Medical treatments available here are cost-
effective – around one-tenth of what they cost in the US and insurance products”
Europe. So, India is taking a lead in this space.
Q: What are the global practices India should adopt?
A: In India, low adoption of standard protocols for various ers are taking necessary steps in line with he Mental Health-
treatments leads to a difference in healthcare cost. Hence, a care Bill 2016 to bring mental illnesses under insurance
standardised system should be established, which could help cover. Apollo Munich’s customised group health insurance
develop appropriate insurance products. Data standardisa- plans already cover this segment. But we are still working to
tion also plays a significant role in creating a common format include mental health under our existing products.
that allows all stakeholders to collaborate in an efficient
manner while using various information-processing tools. Q: How can we integrate technology for hassle-free,
Also, in developed nations, more importance is given to faster claim settlement?
safeguarding the health of an individual rather than just sup-
porting healthcare cost. In the developed countries, wellness A: Multiple stakeholders are involved here – providers,
programmes by insurers have proved to be instrumental in customers, insurers and so on. So, a lack of consolidated
this regard, and Indian insurers have started following suit. data and manual interventions sometimes slow down the
processes. Automating the entire claims process will reduce
Q: Why don’t insurance companies negotiate with turnaround time and provide a seamless experience to
hospitals to ensure standard procedures? customers. The use of technology further ensures better loss
control, ease of application and reduced processing cost.
A: Unlike health insurance, healthcare is a state and central Currently, we are working on data analytics that will help de-
subject. Hence, standard protocols are difficult to implement. termine the right package cost for our network of hospitals.
As a result, tools to regulate healthcare charges are currently Also, cashless reimbursement and claims processing will be
limited. From procedures to diagnostics to treatment – the much faster.
cost of each component depends on the cost incurred by in-
dividual providers. We are now negotiating certain packages @Teena_Kaushal

INVESTING > Q & A
MONEY
MATTERS
Managing your money can be
tricky. Send your queries, and
top-notch industry leaders will
help you resolve any issue.
ILLUSTRATIONS BY RAJ VERMA

Financial Planning funding through SIPs). Your travelling expenses can be met
from regular savings and also from annual incentives, if any.
Kanouj Das: I am 26 and currently working as It will also help avoid frugal spending of one’s surplus salary.
an assistant in an insurance company. I have For long-term investments, a total SIP of `10,000 every
completed nearly two years in this job. My gross month (surplus salary) in a diversified basket of t
salary is `24,000, take-home amount is `20,000, hree to five mutual funds (equity 75 per cent and debt
and I will retire in 2052. How should I invest and 25 per cent) is expected to generate a corpus of `4.5-5 crore
save so that I can buy a car after two years and by the time of retirement. As and when you get a salary
also travel abroad? My current liabilities hike, the SIP amount can go up accordingly, thereby in-
amount to `10,000. creasing the potential corpus generated over the long run.
In the equity space, we recommend Kotak Select Focus
Ashish Shanker, Head, Investment Advisory, Motilal Fund, Aditya Birla Sun Life Top 100 Fund, Motilal Oswal
Oswal Private Wealth Management, replies: MOSt Focused Multicap 35 Fund and HDFC Balanced
Fund. In the debt space, we recommend short-term funds
Your immediate goal is to buy a car and travel abroad. You where most of the income comes from an underlying cou-
can prioritise your goals further and think of buying a house pon of the bonds and not market movements. One can opt
at this stage as it is an appreciating asset. If you want to for Aditya Birla Sun Life Short Term Fund and Franklin
buy a car, a loan can be availed (with about 20 per cent self- India Short Term Income Plan.

INVESTING > Q & A
Real Estate/Loan Health Insurance

Aalka Banerjee: I took a home Harish Kumar Singh: One of my
loan of `50 lakh five years ago. friends has recently come to
Now I want a larger amount know that he is HIV positive.
for home improvement. I have Although he is in good health
already made a pre-payment of right now and getting treated
`15 lakh. Should I take a top-up in a government hospital,
loan or go for a loan he wants to buy a health
against property? insurance policy. Please
suggest if there is any good
Harshil Mehta, Joint Managing health insurance policy for
Director and CEO, DHFL, replies: the same?
A financial institution or a housing

finance company will be able to
extend a top-up on your existing Mutual Fund
home loan depending on the market
value of the property and customer Surabh Shukla:
eligibility. One can get a loan of up Infrastructure funds have
to 100 per cent of the improvement delivered close to 40 per
cost estimates as certified by an cent returns in 2017. Given
engineer/architect and duly verified the government’s focus
by a technical officer. The maximum on infrastructure, how
limit is 90 per cent of the overall are these funds likely to
market value of the property on a perform? Should one invest
loan amount up to `30 lakh (you get now?
whichever is lower). One can also
increase the loan amount by includ- Vidya Bala, Head of Mutual
ing an earning co-applicant. Fund Research, FundsIndia,
replies:
Sector funds need some time to

deliver. And the ideal time to Please send your queries to
enter this space is when the sec- moneytoday@intoday.com
tor is not doing well. Entering
sector funds based on high past
returns could put your invest- Yashish Dahiya, Co-founder and
ment into timing risk. While the CEO, Policybazaar.com, replies:
infrastructure sector has been
picking up, it remains highly Unfortunately, there are not many
cyclical and may go through options available in this case. Health
down phases. Unless an investor insurance mainly covers unknown
knows when to exit, it can be a risks, and most companies do not
risky affair. Holding a diversified provide health insurance to people
fund, which includes selective who have HIV/AIDS except the
infrastructure stocks based on Medi-classic plan from Star Health
the sector’s prospects, should be Insurance. But the policy is only
a prudent approach to long-term issued if the CD4 count is 350 at the
equity investing. time of purchase.

INVESTING > FINANCIAL PLANNING
FIGURE OUT YOUR

PRIORITIES TO
MOVE FORWARD
IT professional Priya Gupta is planning to get married, but she has dependent
parents and inadequate insurance. Setting priorities and working on action
items will help her achieve key goals, says financial planner Pankaaj Maalde.
PHOTOGRAPHS BY SHEKHAR GHOSH

P
riya Gupta, 28, is a senior software developer in an IT firm
located in the National Capital Region. She is planning to get
married soon and wants to get her finances back on track, buy
a car and go on a dream vacation. Her mother, aged 50, and
father, 54, live in Jharkhand and they are financially dependent
on her. Gupta maintains a contingency fund and controls
expenses with a proper savings ratio, which are, indeed, good
moves at her age. However, she solely depends on the employ-
er-provided health insurance for any medical emergency and
has ignored life and disability insurances, which are not ideal financial
decisions (see tables Current Assets and Inflow-Outflow). She should
review the following plan and rebalance her portfolio periodically, prefer-
ably every year.
Do-it-now Tasks
Contingency planning: Gupta is advised to keep a contingency fund that

equals three months’ expenses. An amount of `50,000 from her savings
Current Assets
Particulars Amount (`)
Cash (Savings Bank) 50,000
Debt (FD & EPF) 1,90,000
Equity & Equivalents 15,500
Total Assets 2,55,500
Inflow-Outflow
Particulars Current: Recommended:
Monthly (`) Monthly (`)
Net Take-home Salary 49,000 49,000
Total Inflow (A) 49,000 49,000
Household Expenses 16,667 16,667
Contribution to Dependants 13,000 13,000
Insurance Premium 0 3,333
- Life Insurance 0 667
- Health Insurance 0 1,917
- Disability Insurance 0 750
Total Outflow (B) 29,667 33,000
Savings (A-B) 19,333 16,000
Actual Investments 2,000 16,000
Surplus 17,333 0
·Recommended Investment: `16,000 for marriage
Contingency and Risk Planning

Current Monthly Expenses `33,000
Contingency Period 3 months
Contingency Funding Required `99,000
November I 2017 I MONEY TODAY I 53

INVESTING > FINANCIAL PLANNING
Asset Allocation: (only investment assets are considered)

Investment Avenue Current Allocation Recommended Recommended Allocation
Allocation (first year) (after one year)
Debt 94% 100% 25%
Equity 6% 0% 75%
Retirement Planning
Investment Assets Current Value (`) Term (Years) Assumed Rate Future Value (`)
of Returns
Equity MF 15,500 32 12% 5,82,500
EPF* 40,000 32 7% 73,36,500
Total 79,19,000
*Assuming contribution to EPF till 60
Home Purchase
Current Value `50,00,000
Growth Rate 7%
account and another `50,000 from her fixed deposits Present Age 28
have been earmarked for contingency (see table Contin-
Goal needs to be achieved at age 38
gency and Risk Planning). When her income goes up,
she must build an emergency fund to meet six months’ Future Value `1,00,00,000
expenses. The money kept for this purpose should be Self-funding (20%) `20,00,000
invested in ultra-short-term funds and must only be used Investment will start after 1 year
in case of an emergency. The key to success is discipline. Investment period 9 years
Rate of Returns 12%
Life insurance: She has a group life cover of `15 lakh
but it is not adequate, and she requires an additional Monthly Investment Required `10,000
life cover of `75 lakh. She should buy a term plan for 35
years, which will cost her around `8,000 per annum.
While buying a new insurance, disclose all information,
including health history, habits (if any) and existing
insurance plans in the proposal form.
Health and disability cover: Gupta has a health insur-

ance cover worth `5 lakh provided by her company. But
it is not advisable to rely solely on employer-provided
health insurance. She should immediately buy an ad-
ditional policy as the existing one will not be valid when
she leaves her job or retires. Moreover, benefits may
get reduced every year, and it will be difficult to get a
new health cover at a later age if one is suffering from a
specific illness. The new policy may not cover the medi-
cal condition or there could be a long waiting period.
Therefore, she should buy a health plan for `5 lakh sum
assured, which will cost her around `5,000 per annum.
Besides, she should buy a health cover worth `3 lakh for
her parents. It will cost another `18,000 a year. Gupta
should continue with the employer-provided health
insurance plan and must port the same to an individual
policy if she leaves her job. She should also get a critical

It is difficult to get a new health cover
illness cover worth `25 lakh and another `25 lakh for
accidental disability, totalling around `9,000 annually.
The premium paid up to `25,000 for self and family and
an additional `30,000 paid for parents will be deducted at a later age if one is suffering from a
from her total income u/s 80D of the Income Tax Act.
specific illness. The new policy may not
Planning for Future Goals cover the medical condition or there could
Now that the immediate to-do list is taken care of, Gupta be a long waiting period
must plan for future goals that require massive changes
in investment pattern (see table Asset Allocation).
Marriage: The software engineer is planning to marry

after a year and wants to spend around `7 lakh on that
occasion. Her fixed deposit of `1 lakh is allocated to-
wards this goal. Additionally, she can invest her monthly
surplus of `16,000 in ultra-short-term funds. Even then,
her marriage corpus will be `3 lakh, and she must cut
costs. Gupta should keep the budget tight and must not
opt for any personal loan with high interest rates.
Retirement: Retirement savings are paramount. Gupta

is planning to retire at 60, and she will require a corpus
of `3.5 crore to take care of her retired life till she is 80.
The corpus has been worked out assuming that house-
hold expenses will be `18,000 per month in present
term plus 7 per cent inflation.
Most of her investments have been allocated to fund
her retirement. Plus she must start a monthly investment
of `6,000 in a diversified equity mutual fund scheme via
SIP to build the desired corpus. She can also consider
ILLUSTRATIONS BY AJAY THAKURI

investing in ELSS schemes for tax benefits. But right now
Gupta has limited resources, and it may help if she starts
investing for retirement a year later, sometime after her
marriage (see table Retirement Planning).
Buying home: Ten years from now, buying a home will

incur a total cost of `50 lakh in present value (future
value will be `1 crore) and Gupta needs to build a
corpus of `20 lakh for down payment at the time. It is
a very long-term goal and needs to be reviewed periodi-
cally. She has to start a monthly investment of `10,000
in a diversified equity scheme via SIP to accumulate the plus, the goals do not seem realistic. She should concentrate
down payment. As funds are not immediately available on life’s major goals first as discussed above and postpone
for this goal, she should start investing after a year (see these two till her income rises substantially. Also, she should
table Home Purchase). buy a less expensive car or a pre-owned vehicle.
Dream vacation, car purchase: After two years, Gupta As told to Priyadarshini Maji
would like to go on a dream vacation with her family, If you need help on how to manage your money and
which will cost her `1.5 lakh. She would also like to buy a want expert advice, write to moneytoday@intoday.com.
car after four years and the cost will be around `6 lakh in
present terms. But looking at her present assets and sur- @PriyadarshiniM9

DATA > MUTUAL FUNDS
The Winners
SIX-MONTH RETURNS OF DEBT
FUNDS HAVE BEEN DISAPPOINTING
Annual
% Asset No. of Returns (In %)
Assets (In Report Net
Fund Name in Top 10 Hold-
` Cr) Expense Ratio
Holdings ings 6 Months 1 Year 3 Years 5 Years
(FY2016-17)
Large-Cap
Mirae Asset India Opp 5,600 43.68 56 2.23 11.49 35.69 15.77 20.84
Kotak Select Focus 15,935 40.29 60 2.05 8.06 32.04 15.12 20.34
DSP BlackRock Opportunities 4,273 33.72 74 2.58 13.57 34.81 18.18 20.31
Kotak Opportunities 2,158 35.43 63 2.47 7.87 31.19 15.11 18.45
SBI Blue Chip 16,944 34.08 67 2.30 8.21 27.74 14.09 18.32
Flexicap
Principal Emerging Bluechip 1,504 18.51 89 2.72 14.81 42.75 20.91 26.99
L&T India Value 6,464 29.15 81 2.52 9.59 34.51 19.84 25.60
Aditya BSL MNC 3,316 63.19 48 2.35 14.19 34.37 15.83 24.05
Franklin India High Growth Cos 7,638 57.15 34 2.31 12.89 32.32 13.87 23.49
Tata Equity P/E 2,235 36.74 57 2.79 9.59 34.28 17.81 22.47
Small/Mid-Cap
SBI Small & Midcap 888 44.72 37 2.62 36.62 68.75 30.63 36.61
Reliance Small Cap 5,664 22.51 94 2.54 19.70 53.53 24.58 33.09
DSP BlackRock Micro Cap 6,467 27.97 88 2.51 8.79 35.52 24.06 31.16
Mirae Asset Emerging Bluechip 5,031 32.88 62 2.28 11.58 43.37 24.03 30.62
Franklin India Smaller Companies 7,075 25.04 76 2.41 11.73 36.79 20.01 29.82
ELSS (Tax Savings)

Reliance Tax Saver 10,157 47.46 67 2.45 15.17 37.67 13.54 22.43
Axis Long Term Equity 15,408 53.88 52 2.55 9.80 32.78 13.27 22.32
Aditya BSL Tax Relief 96 4,349 51.97 52 2.45 15.72 39.44 17.23 21.83
IDFC Tax Advantage (ELSS) 798 27.42 77 2.86 15.13 47.28 18.14 21.16
Aditya BSL Tax 650 51.84 52 2.97 15.54 38.79 16.59 21.08
Balanced
HDFC Balanced 18,027 32.56 137 2.09 7.29 24.66 13.21 18.68
ICICI Pru Balanced 23,954 35.26 129 2.41 9.12 22.84 13.05 18.39
L&T India Prudence 8,313 25.37 125 2.52 5.38 25.30 13.45 18.19
HDFC Childrens Gift 2,021 32.26 101 2.33 8.04 26.22 12.95 18.14
SBI Magnum Balanced 17,955 37.52 122 2.43 10.79 23.24 12.43 17.70
Aver- Annual Returns (In %)
Assets (In Average age Report Net
Fund Name Eff Matu- Credit
rity (In Yrs) Quality Expense
` Cr) Ratio 6 Months 1 Year 2 Years 3 Years
(FY2016-17)
Liquid
Indiabulls Liquid 6,885 0.10 AAA 0.23 3.27 6.72 7.31 7.71
Franklin India TMA Super 3,942 0.08 AAA 0.19 3.26 6.71 7.21 7.67
Instl
JM High Liquidity 3,496 0.09 AAA 0.31 3.26 6.73 7.26 7.66
Aditya BSL FRF S/T 13,194 0.12 AAA 0.35 3.28 6.73 7.26 7.65
Principal Cash Mgmt 1,047 0.08 AAA 0.27 3.28 6.74 7.24 7.65
Short-Term Bond
HDFC Banking & PSU 4,729 3.96 AA 0.66 2.97 6.72 8.87 9.12
Debt
ICICI Pru Banking & PSU 7,954 5.17* AAA 0.78 2.02 6.19 9.42 9.09
Debt
UTI Banking & PSU Debt 1,423 2.32 AAA 0.28 2.92 6.59 9.23 8.99
Kotak Flexi Debt 1,333 4.23 AAA 1.26 2.16 6.03 9.82 8.93
HDFC Medium Term Opp 14,041 2.85 AAA 0.33 2.83 6.74 8.85 8.70
Dynamic Bond
ICICI Pru Long Term Plan 3,674 5.95 AAA 1.27 0.51 5.47 11.06 9.20
UTI Dynamic Bond 1,880 8.01 AAA 1.74 0.49 5.11 10.02 9.03
ICICI Pru Dynamic Bond 1,558 6.55 AAA 1.27 0.89 5.26 9.48 8.61
Axis Regular Savings 1,144 2.70 AA 1.23 3.23 7.52 9.74 8.57
SBI Dynamic Bond 3,965 10.91 AAA 1.66 0.01 4.52 9.94 8.33
Intermediate Bond
Aditya BSL Trs Optimizer 8,758 2.80 AAA 0.66 2.44 5.71 9.15 8.83
DHFL Pramerica M/T Inc 631 4.54 AAA 1.06 1.96 5.90 9.08 8.70
Rg Pl
Sundaram Flexible Flex 739 4.91 AAA 0.85 2.05 5.80 8.83 8.54
Inc
ICICI Pru Income Opps 4,360 4.71 AAA 1.00 1.63 5.46 8.46 8.30
ICICI Pru Income 2,075 10.04 AAA 1.94 -0.16 4.51 10.04 8.21
Corporate Credit
Franklin India Dynamic 2,974 2.80 A 1.77 3.63 8.75 9.50 9.67
Accrual
DHFL Pramerica Credit 944 2.94 A 1.83 3.10 7.50 8.93 9.41
Opps Rg Pl
Aditya BSL Medium Term 11,749 2.94 A 1.70 2.70 7.11 9.09 9.17
SBI Corporate Bond Fund 4,898 2.77 AA 1.64 2.80 7.06 8.89 9.07
Reliance Corporate Bond 8,342 4.24 AA 1.81 2.55 7.17 9.33 9.04
Returns (In %)
Fund Category
1-Yr 2-Yr 3-Yr 4-Yr 5-Yr * As of Oct'17 end
Returns as on 15th December'17
Large-Cap 29.25 17.93 10.83 18.29 14.76
Equity funds are ranked on the
Flexicap 32.55 20.49 14.25 23.63 18.35
basis of five-year performance
Small/Mid-Cap 39.47 24.18 18.82 31.08 23.93
Fixed income funds ranked on the
ELSS (Tax Savings) 34.12 20.60 14.36 22.80 18.76 basis of three-year performance
Balanced 21.60 15.01 10.52 16.00 13.49
AUM filter of minimum `500Cr is
Liquid 5.19 5.58 5.88 6.20 6.39 applied on all categories
Short-Term Bond 5.10 6.81 6.74 7.49 7.31
All portfolio related data is as of
Corporate Credit 6.16 7.70 7.71 8.43 8.08 November'17 end; unless specified
Intermediate Bond 3.41 7.49 6.78 8.40 7.66
Returns of time-period more than
Dynamic Bond 3.45 7.58 6.71 8.51 7.79 one year are annualised
Source: Morningstar
Bank 1 year
Bandhan Bank 7.15%
DATA > LOANS
RBL Bank 7.10%
It's A Deal
IDFC Bank 7.00%
Lakshmi Vilas Bank 7.00%
FIXED DEPOSIT
IndusInd Bank 6.85% For Amount less than
`1 Crore (Regular)
Bank 2 years Bank 5 years

The most competitive loan and IDFC Bank 7.25% IDFC Bank 7.20%
deposit rates in the market RBL Bank 7.20% RBL Bank 7.10%
Lakshmi Vilas Bank 7.00% Lakshmi Vilas Bank 7.00%
Bandhan Bank 6.80% Yes Bank 6.75%
IndusInd Bank 6.75% DBS Bank 6.70%
SMALL SAVINGS SCHEMES
Interest
Scheme rate (%)*
1-year Time Deposit 6.6
HOME LOAN: Floating Rate; 5-year Time Deposit 7.4
Interest Tenure - Up to 20 years
For Salaried Person 5-year Recurring Deposit 6.9
5-year Senior Citizens Savings Scheme 8.3
Bank `50 lakh
5-year Monthly Income Account Scheme 7.3
SBI 8.30%-8.35%
5-year National Savings Certificate 7.6
HDFC Ltd. 8.35%-8.40%
Public Provident Fund Scheme 7.6
LIC Housing Finance 8.35%-8.40%
Kisan Vikas Patra 7.3
ICICI Bank 8.65%-8.70%
Sukanya Samriddhi Account Scheme 8.1
Axis Bank 8.65%
*For quarter ending March 2018; Source: Deal4Loans; for small savings
schemes, CMIE
EDUCATION LOAN: PERSONAL LOAN:

CAR LOAN: Loan Amount - Up to `7.5 lakh Tenure - Up to 5 years
For New Cars, Tenure- 7 years Tenure - 15 years Loan Amount - Up to `15,00,000
Bank Interest Rates Bank Interest Rates Bank Interest Rates

SBI 8.70%-9.20% PNB 8.25%-10.15% Bajaj Finserv 10.99%-16%
PNB 8.75%-9.20% SBI 8.30%-9.95% Kotak Mahindra Bank 10.99%-17.99%
HDFC 9%-10.25% Canara Bank 8.30%-10.30% ICICI Bank 10.99%-18.49%
ICICI Bank 10.75%-12.75% IDBI Bank 8.40%-9.90% HDFC Bank 10.99%-20.7%
Axis Bank 11%-12% Central Bank of India 8.80%-10.30% SBI 11.85%-15.1%

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