Posts in category: business

Influencer marketing is a billion-dollar industry, and its recent meteoric rise has sparked curiosity about which factors makes some influencer posts more popular than others. In a new paper, researchers analyzed more than 55,000 Instagram posts from the top 763 influencers worldwide during a six month period and discover that posts that read as more authentic to the influencer, for example posts that show close family or friends, receive the highest engagement. They offer considerations for how to harness their findings to improve brand-influencer post success.

Based on industry data, the average discounts by the top 13 players in 2023 were Rs 34,630, which increased to Rs 38,816 so far in 2024. According to data shared by Jato Dynamics, Toyota and Honda are the two companies that have more than doubled their discounts so far in 2024 (See Chart I). The average discounts by Toyota jumped 140 per cent to Rs 49,914 this year, compared to Rs 20,795 in 2023. Similarly, Honda saw a 120 per cent rise in discounts during the same period from Rs 15,412 to Rs 33,930.

Among the other companies, Volkswagen saw a 70 per cent, Tata Motors around 64 per cent, Hyundai around 50 per cent, and Mahindra around 29 per cent rise in discounts compared to last year.

According to industry experts, this festive season is seeing high discounts, following a dip in recent sales, owing to lower rural demand. “We are seeing one of the highest discounts in recent years across companies. October is a crucial month with several festivals coming up. As discounts may differ from dealer to dealer and state to state, it will be difficult to come up with an average,” said CS Vigneshwar, who took charge as the 37th president of the Federation of Automobile Dealers Associations (FADA) on Wednesday.

Jeep India is seeing one of the highest discounts in the market, going up to around Rs 3,15,000 on the Compass, including a cash discount of around Rs 2,15,000.

Market leader Maruti Suzuki is offering discounts starting from Rs 15,000 to Rs 1,00,000 till the end of September, across models like Swift, Celerio, Brezza, Alto K10, Eeco, Jimny, Fronx, Baleno, and Ignis. Jimny is seeing one of the highest discounts among Maruti models, ranging up to around Rs 1,00,000. On the other hand, a Hyundai dealer in Chennai said that Hyundai Alcazar is seeing the highest discount in its fold at around Rs 2,00,000, while for Verna it can go up to around Rs 70,000, and around Rs 55,000 for Venue. In addition to this, dealers are also adding insurance discounts and several other sops. “On average, discounts range between Rs 40,000-80,000 across models,” the Chennai dealer said.

For Tata Motors, the discounts start from Rs 30,000 for Tigor, Rs 45,000 for Altroz, Rs 65,000 for Tiago, around Rs 80,000 for Nexon, around Rs 1,60,000 for Harrier, and Rs 1,89,000 for Safari. This week, the Mumbai-based automaker, which is India’s leading electric vehicle (EV) player, slashed prices of several EVs in its portfolio as part of the ‘Festival of Cars’ campaign that is running till October 31. Prices of Nexon EV have been reduced by up to Rs 3 lakh, and Punch EV has discounts of up to Rs 1.2 lakh. Tiago EV prices have been cut by Rs 40,000. In addition to price reductions, Tata.ev is offering six months of free charging at over 5,500 Tata Power charging points across India. Following the cuts, Tata Tiago EV will now start at Rs 7.99 lakh, while the Punch EV will cost Rs 9.99 lakh. The Nexon EV will start at Rs 12.49 lakh, the Tata group firm said in a statement. The company further added that the move would help in ‘mainstreaming’ electric vehicles in the country and accelerate adoption.

Ravi Bhatia, president and director, Jato Dynamics, said that the ‘pain’ of lower demand is likely to continue for some more time, and the industry will emerge healthier. “The car packaging and pricing moved up significantly over the last few years. I think we are witnessing a mild-mid correction. The festival window is short, and original equipment manufacturers (OEMs) are approaching it from four sides: price correction, incentives, extended financing, scrapping and trade-in, and production adjustment,” he said. Bhatia added that the pain is likely to continue for some more time, and the industry will emerge healthier. “We are beginning to see high discounts by all OEMs, and Maruti seems to be still holding back. We have also seen price cuts,” he said.

Mahindra & Mahindra (M&M) is offering discounts of up to Rs 1.1 lakh on XUV300 (diesel) and up to Rs 97,000 for petrol versions. The Bolero also has discounts of up to Rs 85,000-89,000 or so, while the Thar 4WD has discounts of up to Rs 15,000. Meanwhile, the Scorpio-N, particularly the 2023 models, has discounts ranging from Rs 40,000 to Rs 1,00,000. Although the regular XUV700 does not have any discounts this month, the 2023 models come with lucrative deals, offering discounts between Rs 1,10,000 and Rs 1,50,000 on various variants across the country. Mahindra’s electric offering, the XUV400, has significant discounts of up to Rs 2,75,000. A Chennai-based dealer said XUV700 offers are coming from Rs 1,90,000 and for Thar it is around Rs 1,50,000.

OEM price cuts come amid significant inventory buildup at dealerships. The Federation of Automobile Dealers Associations (FADA) said last week that passenger vehicle inventory levels at the end of August have reached alarming levels, with stock days now stretching to 70-75 days and inventory totalling 780,000 vehicles, valued at a staggering Rs 77,800 crore. The numbers in both volume and value terms are 7 per cent higher than July, indicating that dealers’ requests to car manufacturers to calibrate dispatches have gone unheeded.

Passenger vehicle (PV) wholesales in July have slipped by 2.5 per cent as OEMs have recalibrated their dispatches to dealers in the wake of high unsold inventory lying at the retailers’ end. This is after growing by 3 per cent in June.

Representative Image: Rajkiran Rai, Chairman, National Bank for Financing Infrastructure and Development (NaBFID) | Credit: Company website

NaBFID, a specialised Development Finance Institution (DFI), was set up in 2021, by an Act (The National Bank for Financing Infrastructure and Development Act, 2021).

The Bank was set up with the essential objectives of addressing the gaps in long-term non-recourse finance for infrastructure development, strengthening the development of bonds and derivatives markets in India, and sustainably boosting the country’s economy.

First Published: Sep 12 2024 | 8:06 PM IST

For business leaders, especially at relatively small companies, the idea of applying gen AI to strategic planning is mouthwatering.  This article explores the potential and limits of AI in helping such companies chart their strategies.  Through the lens of two disguised case studies the authors show how gen AI can help companies identify some challenges and opportunities that managers missed, overcoming the human biases, but by the same token missed some possibilities rooted in the company’s specific capabilities. And although gen AI was less able to imagine possible future scenarios because its forecasts were entirely rooted in historical data, clever promoting enabled it to surface issues and questions that human managers ignored.  The authors conclude that knowing gen AI’s weaknesses allows managers to take advantage of its strengths. The key is to view gen AI as a tool that augments, rather than replaces, your strategic thinking and decision-making.

Investors also parsed Tuesday night’s US Presidential debate to gauge potential policy shifts after the November election.

All three major US stock indices pulled a U-turn, transforming a sell-off into a rally by mid-afternoon. Tech stocks, particularly chips, were clear outperformers, putting the Nasdaq ahead of the pack.

The Labor Department’s Consumer Price Index (CPI) showed the annual inflation rate CPI shed 0.4 percentage points to a cooler-than-expected 2.5 per cent. The core measure – which excludes food and energy – posted a hotter-than-expected monthly gain of 0.3 per cent, and an annual increase of 3.2 per cent.

At last glance, financial markets have baked in an 85 per cent probability that the Fed will cut its key policy rate by 25 basis points at next week’s policy meeting, with a dwindling 15 per cent chance of a double-sized 50 bp cut, according to CME’s FedWatch Tool.

Market participants also paid close attention to late Tuesday’s US presidential debate, listening closely for potential policy clues from Vice President Kamala Harris and former President Donald Trump.

That apart, investors in India would have their eyes peeled for index of industrial production (IIP) for July and August’s consumer price index (CPI) set to be released late on Thursday. Economists polled by Reuters expect CPI to rise 3.5 per cent year-on-year, compared to 3.54 per cent in July.

The Dow Jones Industrial Average rose 124.75 points, or 0.31 per cent, to 40,861.71, the S&P 500 gained 58.6 points, or 1.07 per cent, to 5,554.12 and the Nasdaq Composite added 369.65 points, or 2.17 per cent, to 17,395.53.

European stocks ended the session essentially flat as investors shifted their focus to the European Central Bank and its rate decision expected on Thursday.

The pan-European STOXX 600 index rose 0.01 per cent and MSCI’s gauge of stocks across the globe gained 0.62 per cent.

Following that, markets in the Asia-Pacific region opened higher on Thursday. Japan’s Nikkei 225 jumped 3 per cent in early trades and Topix gained 2.48 per cent.

South Korea’s Kospi opened 1.2 per cent higher and the small cap Kosdaq advanced 2.5 per cent. Australia’s S&P/ASX 200 jumped 0.6 per cent, meanwhile, Hong Kong’s Hang Seng index futures were at 17,194, higher than the HSI’s last close of 17,108.71. Futures for mainland China’s CSI 300 stood at 3,181.6, lower than its Wednesday close at 3,186.13.

Oil prices steadied after Tuesday’s sell-off as a drop in US crude inventories and potential supply disruptions from Hurricane Francine balanced against concerns over softening global demand.

US crude jumped 2.37 per cent to settle at $67.31 per barrel, while and Brent settled at $70.61 per barrel, up 2.05 per cent on the day.

Gold prices dipped as hopes dimmed for a larger interest rate cut from the Fed at next week’s policy meeting. Spot gold dropped 0.2 per cent to $2,512.30 an ounce.

Mother Dairy aims to increase its revenue by at least 10 per cent in the current financial year (2024-25), driven by strong summer demand and expectations of robust sales during the festival season.

The dairy giant, which holds a dominant position in New Delhi and the National Capital Region (NCR), also plans to expand its presence in other markets.

“Summer has been good, and most of our summer categories have performed exceptionally well. We have also increased some of our capacities and expect to see healthy growth across all three sub-brands (Dairy, Dhara, and Safal),” Manish Bandlish,

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MARS Growth Capital invests in future-ready AI platforms in the Asia-Pacific and Europe. Backed by Liquidity Group’s experienced team of entrepreneurs and data scientists, MARS Growth Capital is a leading option for high-performing global technology companies in a new age of funding.

This is one of the largest transactions to date by Mars Growth, said Ron Daniel, co-founder and CEO, Liquidity Group, and CEO, Mars Growth.

“AI is redefining the way businesses operate and create value, and InMobi is well-positioned to leverage its capabilities across multiple spaces in consumer and advertising technology,” says Navas Ebin, head of Asia-Pacific, managing director at Liquidity and MARS Growth Capital.

InMobi is a consumer technology firm with two core businesses, Glance and InMobi Advertising, where AI is harnessed to elevate digital experiences. Glance, an AI-powered content discovery platform, delivers personalised content and entertainment directly to users’ smartphones, creating more interactive and immersive journeys.

Headquartered in Singapore, with a large presence in San Francisco and operations around the globe.

First Published: Sep 11 2024 | 6:42 PM IST

The operation is under progress and details being ascertained, the PRO Defence said. | File Photo: PTI

The BSF said in a statement that the unprovoked firing from across the border occurred around 2:35 am on Wednesday and it was befittingly responded by its troops.

“One BSF personnel sustained injuries in the firing from the Pakistan side. Troops are on high alert,” stated the BSF, which guards the India-Pakistan border.

The India-Pakistan border stretches approximately 3,323 kilometres, dividing the two countries including various sectors with differing levels of tension and security challenges.

The India-Pakistan border, particularly in Jammu and Kashmir, has been a flashpoint for frequent skirmishes and ceasefire violations. Tensions have fluctuated over the years, with sporadic cross-border firing incidents often escalating into major security concerns.

First Published: Sep 11 2024 | 4:23 PM IST

Sebi chairperson Madhabi Puri Buch (right) and her husband Dhaval Buch (left)

“We categorically state that we have not, at any point, requested Sebi for any preferential treatment. We maintain the highest standards of corporate governance,” said the automaker in an exchange filing.

Dhaval is on the board of Bristlecone, a subsidiary of M&M.

“He joined Mahindra Group almost three years before Ms Puri Buch was appointed Sebi chairperson. Compensation has been specifically and only for Mr Dhaval Buch’s supply chain expertise and management acumen, based on his global experience at Unilever,” said M&M.

The group added that none of the orders or approvals referred to in the Congress party’s allegations were relevant, as three of them did not pertain to the company or its subsidiaries, while one was a fast-track rights issue that did not require any approval from Sebi.

Another order claimed by the Congress as a conflict of interest was from March 2018, before Dhaval started working with Mahindra Group.

The Opposition party also alleged that Buch’s consultancy firm, Agora Advisory, received income from M&M, Dr Reddy’s Laboratories (DRL), Pidilite, ICICI Group, and two other organisations while Puri Buch was holding positions in the market regulator.

DRL also clarified that they engaged the services of Dhaval for leadership coaching for a limited period from October 2020 to April 2021, based on his past role at Unilever.

In an exchange filing, the pharmaceutical (pharma) major said that the total remuneration of Rs 6.58 lakh to Dhaval was in line with that offered to other coaches.

“The assignment started and ended well before Ms Puri Buch’s term as Sebi chairperson. Any suggestion that the company was treated differently by Sebi as a result of this would be baseless and malafide. The company has and continues to operate in compliance with all applicable laws,” said DRL.

Pidilite too responded to the allegations by stating that it had engaged Agora Advisory and Dhaval’s services for his expertise in supply chain and procurement as part of its routine requirements. The company added that there has never been any enquiry or cases from Sebi concerning the company.

“The company engages with multiple partners and consultants who are renowned professionals in their respective fields. As part of its routine requirements, the company in 2019-20 had engaged Agora Advisory’s Mr Dhaval Buch, a globally renowned supply chain and procurement professional, for his services in these areas. We further state that there have never been any enquiries or cases from Sebi vis-à-vis the company,” Pidilite said in an exchange filing.

Agora Advisory is a consultancy firm co-founded by Puri Buch and her husband Dhaval.

“This is a case of wilful concealment and conflict of interest,” said Congress leader Pawan Khera, adding that his party will release more information this week. “The companies that have financial relationships with Agora are all being adjudicated by Sebi.”

Khera reiterated that the advisory firm was “active” while the Sebi chairperson had claimed it to have become dormant during her time at Sebi.

Hindenburg Research, a US-based short seller, had in its follow-up report stated that Agora generated Rs 2.54 crore in income between 2020-21 and 2023-24.

The website of the Ministry of Corporate Affairs showed Dhaval as a director of Agora Advisory.

Earlier, Khera had alleged that the rental income from a firm affiliated with Wockhardt, a pharma and biotechnology company, was a case of corruption. It accused Buch of maintaining a financial relationship with the company while overseeing Sebi’s investigation into Wockhardt, claiming that it amounted to a conflict of interest.

“We categorically deny these allegations and state that these are completely baseless and misleading. The company has acted and continues to act in compliance with all applicable laws,” said Wockhardt in an exchange filing on Friday.

Puri Buch was first appointed Sebi whole-time member in April 2017. She demitted office in October 2021 and once again joined the securities regulator as chairperson in March 2022.

Following  Hindenburg’s allegations, both Sebi and the Buchs issued separate statements rebutting all the allegations, terming them baseless and an attempt at character assassination.

The Congress party has also raised questions about the alleged payments and employee stock ownership plans (Esops) to Puri Buch from her former employer ICICI Bank, both in terms of the amount and the frequency of payouts.

The private lender rejected the allegations, saying Puri Buch was not paid a salary or granted any Esops after her retirement in October 2013.

The bank added that its employees had the choice to exercise their Esops anytime up to a period of 10 years from the date of vesting.

First Published: Sep 10 2024 | 4:24 PM IST

“While as an NBFC we will keep raising funds as and when required, this capital should be good enough for us to grow to Rs 3,500 crore in AUM,” said Deepak Jain, co-founder, FlexiLoans.

The firm is targeting to disburse around Rs 5,000 crore in loans in FY25.

In the next 3-4 years, the company might look to go public, Jain said. “We want to do it at the right time when we hit the right size and scale,” he said, adding that the company has been profitable for the last three years and is targeting double-digit profit in the current financial year and triple-digit profits in the next financial year.

“Our credit cost is around 3.3 per cent as of the June quarter. We have always remained sub-5 per cent as far as credit costs are concerned,” he said.

Unitus Capital acted as the exclusive advisor to the transaction.

Before this round, the company raised capital from Sanjay and Falguni Nayar, Maj Invest, Fasanara Capital, along with other prominent family offices.

First Published: Sep 11 2024 | 12:14 AM IST