Posts in category: business

Tamil Nadu govt inks Rs 900 cr deals with Microchip, Nokia, PayPal during Stalin’s US visit | Photo: Stalin’s X account

Key investments announced by the chief minister include:

Microchip

The memorandum of understanding (MoU) signed with Microchip, a manufacturer of microcontroller, mixed-signal, analog and Flash-IP solutions, includes setting up a new research and development (R&D) centre for semiconductors in Semmancherry, Chennai.

 

A total of Rs 250 crore will be invested into the project that is poised to generate 1,500 new jobs.

Nokia

Nokia plans to set up a new R&D centre in SIPCOT, Siruseri, Chengalpattu. The centre is planned to be the world’s largest ‘fixed network’ test bed for innovations in 10G, 25G, 50G, and 100G PON, fixed wireless access, and MDU solutions.

A total of Rs 450 crore will be invested into the project which is poised to generate 100 new jobs.

Ohmium

US-based Ohmium plans to develop a manufacturing facility in Chengalpattu for components related to electrolyser manufacturing and hydrogen solutions systems, with an investment of Rs 400 crore. This initiative will also create 500 jobs.

Applied Materials

Materials engineering solutions major Applied Materials will launch an advanced AI-enabled technology development centre dedicated to semiconductor manufacturing and equipment in Taramani, Chennai. This project is anticipated to generate 500 jobs.

GeakMinds

GeakMinds is establishing an IT and analytics services centre in Chennai, expected to generate 500 jobs. Similarly, Infinx is setting up a Technology and Global Delivery Centre at ELCOT Vadapalanji, Madurai, with an investment of Rs 50 crore, which will create 700 jobs.

Yield Engineering Systems

Yield Engineering Systems is launching a product development and manufacturing facility for semiconductor equipment in Sulur, Coimbatore, with an investment of Rs 150 crore, generating 300 jobs.

Paypal

PayPal is establishing an Advanced Development Centre in Chennai, focusing on artificial intelligence, which will create 1,000 jobs.

Telangana vying for deal with Foxconn

M K Stalin’s US visit

Chief Minister Stalin’s trip will continue with meetings and discussions aimed at attracting more investments. He is set to address the Tamil community on August 31 and engage with US-based companies’ representatives in Chicago on September 2. During this trip, he will also meet CEOs of Fortune 500 companies to further promote Tamil Nadu as an investment destination. The delegation is scheduled to return to Chennai on September 14.

 

First Published: Aug 30 2024 | 11:52 AM IST

There are significant trade-offs inherent in traditional knowledge-sharing tools and mechanisms, such as operating manuals or trainings. The more comprehensive the instructions, the less likely that they’ll be absorbed and understood by employees. The more precise the instructions, the less they allow for customization or employee initiative. And the more rigid the instructions, the less they can evolve as circumstances change. The authors instead propose an approach they call an “evolvable script” — a concise, modular instruction set outlining the purpose of a task alongside the most critical actions for accomplishing it. By focusing only on the essential actions, it allows for easy absorption and daily use. Moreover, it leaves room for employee discretion in how exactly to carry out tasks, enabling workers to tailor their approach to the situation at hand or try out new variations. These interpretations can be easily reviewed, alongside their outcomes, to evolve the script over time to reflect new circumstances and learnings.

As more users migrate to 5G, Jio’s 4G network’s capacity is opening up, uniquely positioning the telco to absorb over 200 million 2G users in India, Ambani said. Photo: Bloomberg

Jio Platforms (JPL), the holding company for Jio and other digital businesses of the Reliance group, has also become among the top-12 companies in India by net profit, Ambani said. JPL reported a 11.7 per cent year-on-year (Y-o-Y) increase in net profit to Rs 5,698 crore for the first quarter of the current financial year (Q1FY25) on robust subscriber growth, he added.

Announcing that the telco has completed its pan-India 5G rollout, Ambani hinted that material and capex deployment towards this would begin to ease now. The telco currently has more than 130 million 5G users and over 85 per cent of the 5G radio cells belong to it, he said.

The RIL chairman stressed the company is keeping the home broadband business front and centre, and is targeting 1 million new home broadband service every month. Jio currently has nearly 30 million home customers across digital broadband and digital TV services.

JioAirFiber, the company’s 5G-based home Wi-Fi service launched in October last year, acquired 1 million customers in the first six months, and the next 1 million in the succeeding 100 days, Ambani said.

At the AGM, Reliance Jio Chairman Akash Ambani announced a bouquet of new offerings in the home entertainment space, including Jio TvOS, a new operating system for Jio TV. He also unveiled the Jio TV+, a bundled offering, including content from over a dozen OTT apps, hundreds of live TV channels, and a library of on-demand movies and shows.

Over a million small and medium businesses in India have embraced Jio and it is the trusted partner for over 80 per cent of the top-5,000 large enterprises in the country, the RIL chairman said. “We are also targeting over 20 million small and medium businesses, bringing them the connectivity to thrive in today’s digital age,” he added.

As more users migrate to 5G, Jio’s 4G network’s capacity is opening up, uniquely positioning the telco to absorb over 200 million 2G users in India, Ambani said.

The industry-wide tariff hikes, which took effect from July, has seen rival Bharti Airtel raising tariffs by a lesser margin than Jio’s 12-25 per cent. However, Airtel’s hike included its 2G subscriber base as well, a category Jio did not touch.

“Nearly all smartphones over Rs 8,000 sold in India are 5G-ready. As 5G phones become more affordable, 5G adoption on Jio’s network will accelerate, further boosting data consumption. With Jio’s lead in 5G coverage, capacity, and quality, we expect to capture the lion’s share of the accelerating 5G adoption,” Ambani said.

The company’s efforts are being boosted by its JioBharat phones, launched last year, Ambani said. “Today, nearly half of 2G customers upgrading their devices choose JioBharat,” he added.

1 mn: Subscribers JioAirFiber aims to add in the next 100 days

1 mn: Customers it acquired during the first six months of launch 

130 mn+: Jio’s 5G users 

It has completed its pan-India 5G rollout

First Published: Aug 29 2024 | 7:18 PM IST

This marks a big leap from 2003–2007, when India ranked in the top five for only four technologies, according to the report. The tracker covers critical technologies across a wide range of fields, including space, defence, energy, environment, AI, robotics, biotechnology, cybersecurity, advanced computing, advanced material, and quantum technology. It compiles data spanning from 2003 to 2023, tracking high-impact research —defined as the top 10 per cent of the most-cited papers — as an indicator of a country’s research performance, strategic goals, and future technological potential.

 

China tops the global research charts, dominating in 57 out of 64 critical technologies. In contrast, the US, which led in 60 technologies between 2003 and 2007, now holds the top spot in just seven areas (based on 2019-2023 rankings), including quantum computing and vaccine and medical countermeasures.

 

The UK has also seen a decline in its standing, now ranking in the top five in 37 technologies, down from 44 last year. The European Union, counted as a bloc, leads in two areas — small satellite and gravitational force sensor — and ranks second in 30. Germany remains strong, placing in the top five for 27 technologies.

 

Although India has yet to lead in any critical technology, it has secured the second position in areas such as high-specific machine process, advanced composite material, mesh and infrastructure-independent network, smart material, and biofuel.

 

India also ranks third in several key technologies, including electronic warfare, autonomous underwater vehicle, sonar and acoustic sensor, photonic sensor, post-quantum cryptography, photovoltaic, nuclear waste management, supercapacitor, and advanced aircraft engine.

 

However, the report highlights a big drawback of India’s research efforts: the lack of standout research performers. Only five Indian institutions feature in the top five across the 64 technologies over the past two decades (2003-2023).

 

“This lack of standout performers (where research is very fragmented) may be limiting India’s ability to attract foreign research talent and motivate Indian scientists and technologists to stay at, or come back to Indian institutions,” the report observes.

First Published: Aug 29 2024 | 9:55 PM IST

Numerous researches have shown that we forget much of what we experience in a day. Knowing this, how do you create messages so there is a better chance of people remembering them? The author uses concepts from memory science to help you craft messages — whether it’s a presentation, an email, or a speech — that will be likely to stick. One way to craft a memorable message is to chunk it up. Explicitly tie together the points that you want to convey under the umbrella of a central idea. With this approach, your listener can stitch the pieces together in a meaningful way and build a rich memory for that material. Or, when communicating about a complex topic, you can make your message memorable with a concrete example instead of something vague. Remember to provide callbacks as recalling something that we previously learned can make it stronger and easier to access when we will need it. Lastly, spark their curiosity. The key to memorable communication lies not in conveying the answer, but in establishing a compelling question.

Stock Market LIVE Updates, Thursday, August 29, 2024: The Indian benchmark indices BSE Sensex and Nifty 50 opened in the red on Thursday, tracking weakness in the overnight US market following Nvidia’s results. 

At opening bell, the BSE Sensex was down 0.08 per cent at 81,717, while the Nifty 50 was at 25,023, down 0.11 per cent. 

Meanwhile, investors in the domestic market would also have their eyes peeled for the Mukesh Ambani-led Reliance Industries Annual General Meeting, scheduled for today afternoon. 

Global equity markets eased while the US dollar rebounded on Wednesday. However, chipmaker Nvidia’s better-than-expected results failed to impress some investors and the company’s stock fell 7 per cent in extended trading.

Wall Street’s main indexes finished lower. The Dow Jones Industrial Average fell 0.39 per cent to 41,091.42, the S&P 500 lost 0.60 per cent to 5,592.18 and the Nasdaq Composite lost 1.12 per cent to 17,556.03.

Europe’s benchmark STOXX index climbed 0.33 per cent while Japanese stocks closed 0.22 per cent higher. MSCI’s gauge of all stocks across the globe was 0.42 per cent lower at 827.32.

Nvidia’s third-quarter revenue forecast of $32.5 billion surpassed Wall Street estimates after markets closed. The report still failed to impress the most bullish investors who have driven a dizzying rally in its shares as they bet billions on the future of generative artificial intelligence. Shares of the Santa Clara, California-based company fell 3 per cent in extended trading.

Asia-Pacific markets fell on Thursday, tracking losses on Wall Street as investors assess results from tech giant Nvidia.

Investors in Asia will watch for any spillover to tech stocks in the region, which is home to companies along Nvidia’s value chain like Taiwan Semiconductor Manufacturing Company and SK Hynix.

South Korean chip heavyweight SK Hynix plunged 6 per cent on its open, while Samsung Electronics fell more than 3 per cent, dragging the Kospi down 1.3 per cent. The small-cap Kosdaq was down 0.55 per cent.

Japan’s Nikkei 225 dropped 0.56 per cent, while the broad based Topix was down 0.14 per cent. Australia’s S&P/ASX 200 was down 0.47 per cent.

Hong Kong Hang Seng index futures were at 17,648, lower than the HSI’s last close of 17,692.45.

A preliminary estimate of second quarter US gross domestic product is due on Thursday. The Fed’s preferred inflation measure – the core personal consumption expenditures (PCE) index – will be released on Friday.

Markets, which are fully priced for a 25 basis point US interest rate cut next month, see just over 100 basis points of easing by the end of the year.

Gold prices were hurt by the stronger US dollar with spot gold lost 0.68 per cent to $2,507.50 an ounce, and US gold futures settled 0.6 per cent lower at $2,537.80.

Oil prices fell on concerns about Chinese demand and risks of a broader slowdown. Brent crude futures settled down 1.13 per cent at $78.65 a barrel. US West Texas Intermediate crude futures fell 1.34 per cent to $74.52.

In the wake of the decision, Yelp may not be the only company reassessing its options | Photo: Bloomberg

Yelp drew from US District Judge Amit Mehta’s decision to show how Google used its monopoly in the market for all-purpose search engines to dominate other spaces, Yelp General Counsel Aaron Schur said in an interview. 

Mehta’s findings “really do serve as the brick-and-mortar foundation for our own claims,” Schur said. “Our case is asserting that Google has abused that illegal monopoly in general search that has already been decided by Judge Mehta, and it’s using that monopoly to self-preference that inferior content in the adjacent market of local search and also the local search advertising market.”

A Google spokesperson said in a statement that the company would “vigorously defend against Yelp’s meritless claims.”

“Yelp’s claims are not new,’’ Google said, noting that similar allegations were thrown out years ago by the Federal Trade Commission, and recently by the judge in the US Justice Department’s case.  “On the other aspects of the decision to which Yelp refers, we are appealing.”

In its complaint, Yelp recounts how Google at first sought to move users off its search page and out onto the web as quickly as possible, giving rise to a thriving ecosystem of sites like Yelp that sought to provide the information consumers were seeking. But when Google saw just how lucrative it could be to help users find which plumber to hire or which pizza to order, it decided to enter the market itself, Yelp alleges.

Yelp hopes its suit will bar Google from placing its own reviews above those of competitors, Schur said. 

“First and foremost we want Google to end its unlawful self-preferencing, which hurts consumers, hurts competition and hurts the businesses that pay for local search advertising,” Schur said. “That is really what we are focused on in this case.”

Yelp has fought a multi-year battle in the US and the European Union against Google, which it has long accused of maintaining an illegal monopoly over the internet search market and in particular of abusing its dominant position by putting its own reviews higher in search results than those of its rivals.

The Justice Department is now considering seeking to break up Google in what would be Washington’s first push to dismantle a company for illegal monopolisation since unsuccessful efforts to break up Microsoft Corp. two decades ago. Less severe options include forcing Google to share more data with competitors and measures to prevent it from gaining an unfair advantage in AI products, Bloomberg News has reported. 

Google has said it will appeal the judge’s ruling. The US plan will need to be accepted by Mehta, who would have to direct the company to comply. A forced breakup of Google would be the biggest of a US company since AT&T was dismantled in the 1980s.

In the wake of the decision, Yelp may not be the only company reassessing its options.

“I can’t speculate as to what other companies will do, but the self-preferencing that we describe in the complaint as a general matter isn’t unique to Yelp,” Schur said. “It’s not a unique story.”

First Published: Aug 29 2024 | 8:09 AM IST

Nearly all transformation efforts face significant challenges that can derail the whole program. These can range from exogenous shocks, such as inflation, supply-chain disruption, or political events; operating-model issues, such as the need to change technology, governance, or ways of working; or human dynamics, such as employee confidence in or ownership of the change. How can leaders identify these turning points — and get things back on track? New research, based on surveys of more than 1,600 leaders and employees involved in transformations, suggests that changes in a team’s emotional energy — their collective mood, vibe, and intensity of emotions — often signals that there’s an issue. Organizations that successfully navigate these turning points look for shifts in the team’s emotional energy, dig into the underlying issues at play, and quickly take action to create the conditions where teams can thrive.

RBI Governor, Shaktikanta Das (Photo: Reuters)

The RBI had called for applications for SROs in the fintech sector and had issued a framework for SROs last year.

Das highlighted that the sustainable and orderly development of the fintech sector requires an appropriate balance between innovation and prudence. “Our endeavour is to carefully craft regulations to achieve this delicate balance, while simultaneously ensuring trust, security, accessibility, risk management, and competition,” he said.

According to Das, a preferred approach for achieving balance between innovation and prudent regulation involves self-regulation within the fintech sector.

Meanwhile, Das highlighted that based on the encouraging response received from several jurisdictions, the focus is now on making the Unified Payments Interface (UPI) and RuPay truly global. He further stated that the deployment of UPI-like infrastructure in foreign jurisdictions, facilitating QR code-based payment acceptance through UPI apps at international merchant locations, and interlinking UPI with Fast Payment Systems (FPS) of other countries for cross-border remittances are on top of the RBI’s agenda.

Additionally, the governor on Wednesday proposed five policy priorities for the future of India’s financial system. They include digital financial inclusion, digital public infrastructure (DPIs), consumer protection and cybersecurity, sustainable finance, and global integration and cooperation.

Das emphasised that while significant strides have been made in expanding financial inclusion by ensuring banking access to every village within a 5 km radius or hamlet of 500 households in hilly areas, and opening 530 million Jan Dhan bank accounts, the evolving landscape demands a shift towards digital financial inclusion (DFI), i.e., promoting secure and digitally enabled financial services and products for the financially excluded and underserved population.

“… the next two decades will predominantly be about leveraging technology to deliver accessible and tailored financial services that meet diverse needs,” Das said.

On DPIs, Das said that apart from banks and non-banking finance companies (NBFCs), the RBI is now focusing on the inclusion of other lenders like cooperative credit institutions through NABARD on the Unified Lending Interface, which the RBI is looking to launch in due course.

Earlier this week, Das had said that the RBI’s ULI will transform India’s lending sector, similar to how the Unified Payments Interface (UPI) revolutionised the payments ecosystem.

As far as consumer protection and cybersecurity are concerned, Das directed banks and fintech NBFCs to adopt a customer-centric approach; implement robust security measures; offer transparent financial products; and adopt fair lending practices.

“As financial transactions increasingly migrate online, the threat landscape is expanding exponentially. Investing in state-of-the-art technologies such as AI-driven threat detection, analysis, and mitigation, along with a clear focus on improving human resource capabilities, are necessary to bolster the resilience of information systems,” the governor said.

Commenting on sustainable finance, Das highlighted that in the following two decades, fintechs will be instrumental in driving progress in transition finance, climate finance, and nature-based solutions. “By harnessing the transformative power of technology and promoting innovation in sustainable finance, India can accelerate its transition towards a resilient and low-carbon economy,” he said.

First Published: Aug 28 2024 | 7:08 PM IST

“The good thing is that most standard indemnity-based health insurance policies in India will cover hospitalisation expenses incurred for treating diseases like Mpox. Indemnity policies are designed to cover a wide range of illnesses, including new and emerging infectious diseases that require hospitalisation,” explains Bhaskar Nerurkar, Head of the Health Administration Team at Bajaj Allianz General Insurance.

Siddharth Singhal, Head of Health Insurance at Policybazaar.com, adds, “While there might not be exclusive plans only for emerging infectious diseases, they are all generally covered under the broader umbrella of hospitalisation under health insurance.”

Nerurkar also mentions, “Some insurers may offer additional riders that enhance coverage during pandemics or epidemics, but these are not disease-specific.”

So, if you have a comprehensive health insurance plan, any hospitalisations due to the Mpox virus will likely be covered by your insurer. However, as Nerurkar advises, “It’s wise to review your policy details and consult with your insurer to ensure you have comprehensive coverage for any emerging infectious disease.”

Costs covered by insurers for outbreaks

“Health insurance plans offer a range of benefits, including coverage for hospitalisation expenses, daycare procedures, ambulance charges, consumables, and room rent,” says Mahesh Yelapur, Head of Health Underwriting & Health Claims at Go Digit General Insurance. The specifics of coverage, however, depend on the chosen plan and its terms.

But, yes, there are some out-of-pocket costs that policyholders should be aware of.

While most hospitalisation expenses are covered, you might still face out-of-pocket costs for things like OPD treatment or certain policy coverages. “For example, if your plan includes a co-payment clause, you may need to pay a specified portion of the medical bill. Additionally, while cashless claims at network hospitals eliminate upfront payments, non-network hospitals may require you to pay upfront and later claim reimbursement,” Yelapur points out.

Common out-of-pocket costs

According to Singhal, some common out-of-pocket costs include:

Consumables: Health insurance typically doesn’t cover the cost of medical items and supplies used during hospitalisation or treatment.

Co-payment: Some plans may have a co-payment clause, meaning the policyholder has to pay a certain percentage of the claim amount.

Deductibles: A deductible is the amount the policyholder must pay before the insurance company starts covering the costs.

How to ensure you are covered during an outbreak?

Nerurkar suggests the following steps to ensure adequate coverage during an outbreak:

1. Keep your policy active: Ensure you have an active health insurance policy that covers hospitalisation since most policies will include coverage for infectious diseases requiring hospital treatment.

2. Review your coverage: Regularly review and update the sum insured based on your needs. Considering the rising costs of healthcare due to medical inflation, it’s essential to choose a sufficient sum insured.

3. Consider additional riders: Adding riders that cover consumable items, often excluded from standard policies, can help minimize out-of-pocket expenses for items like gloves, masks, and other necessary supplies.

4. Select a comprehensive plan: Choose a health insurance plan that includes coverage for modern treatments, as these may be essential if advanced medical procedures are needed during an outbreak.

Policy Bazaar lists out some options for a 30-year-old individual looking for a base cover of Rs 1 crore in Delhi:

1. Care Health – Care Advantage: Rs 15,479 (Premium including GST)

2. Star Health – Smart Health Pro: Rs 15,515 (Premium including GST)

3. Manipal Cigna – Lifetime Health: Rs 13,297 (Premium including GST)

4. Aditya Birla Health Insurance – Activ Fit Plus: Rs 17,058 (Premium including GST)

5. Niva Bupa Health Insurance – Reassure 2.0 Platinum: Rs 24,605 (Premium including GST)

6. HDFC Ergo – Optima Secure: Rs 25,781 (Premium including GST)

7. Bajaj Allianz General Insurance – My Health Care Plan: Rs 22,438 (Premium including GST)

Documentation required for claims

To ensure a smooth claim process, you need to have the following documents ready:

1. Original claim form, duly completed and signed.

2. Valid identity proof (e.g., Aadhar card, PAN card, Voter ID).

3. Doctor’s prescription recommending hospitalisation.

4. Doctor’s prescription advising diagnostic tests, medicines, and consultations.

5. Original pharmacy bills for medications and treatments.

6. Policy details, including the policy number, name of the insured, and the disease being treated.

For cashless treatments at a network hospital, you’ll need to provide a claim pre-authorization form and valid ID proof with a photograph. The hospital will handle the submission of required documents to your insurer.

In contrast, for reimbursement claims, you’ll need to collect and submit all relevant documents, including medical bills, from the hospital where you were treated. After the insurance company verifies the submitted documents, the claim amount will be transferred to your bank account.

What should you consider when choosing a health insurance plan?

Singhal suggests the following points when choosing a health insurance plan that covers emerging diseases:

1. High-sum insured: Such diseases can lead to expensive medical treatments, so ensure you have a plan with a high sum insured. For metro cities, a minimum cover of Rs 1 crore is recommended.

2. Buy early: Purchase the insurance as soon as possible, as there is usually a waiting period associated with most conditions.

3. Add-ons: Consider buying add-ons like consumables to reduce out-of-pocket expenses.

4. No room rent capping: Opt for a plan with no room rent capping to ensure comfort during treatment.

5. OPD cover: Consider buying OPD cover as some conditions may not require hospitalisation but will still incur costs for doctor consultations, medicines, and diagnostics.

Nerurkar advises that specific preventive measures can impact your coverage, including:

Travel restrictions: Travelling to areas with government-issued travel restrictions due to health risks might affect your coverage.

Regular health screenings: Insurers encourage regular health check-ups, which can lead to lower premiums or discounts.

Vaccinations: Keeping up with recommended vaccinations can influence coverage, especially for diseases like influenza or hepatitis.

Lifestyle choices: Healthy lifestyle practices, like regular exercise and a balanced diet, can positively impact your coverage, often resulting in lower premiums or additional benefits.

How are insurers adapting to the rising number of outbreaks?

“Insurers are enhancing their standard health insurance offerings to ensure better coverage and flexibility,” Nerurkar says. They are improving claim processes by incorporating digital tools and AI-driven technologies, ensuring timely support for policyholders, especially during high-demand periods.

Recently, the Insurance Regulatory and Development Authority of India (Irdai) mandated that all cashless claims be processed within three hours of receiving a discharge authorisation request from the hospital. Insurers are also gradually adopting the National Health Claims Exchange (NHCX) platform, promising faster and simpler claim settlements.

High stress at work can destabilize people’s ethical compass, putting them at heightened risk of ethical lapses. When employees focus solely on achieving their targets, deadlines, or personal financial goals at the expense of ethical considerations — when doing the right thing feels burdensome compared to seemingly less-costly shortcuts — they can teeter on “ethical burnout.” To prevent this, it’s crucial to spot the signs and root out the contributing forces early. The authors present four warning signs that your employees may be heading toward ethical burnout — and strategies to counteract these forces before it’s too late.

Everyone has experienced stress-inducing pressure at work: ambitious financial targets, tough performance reviews, and shrewd competitors, and so on. The resulting stress can harm not just people’s personal well-being, research shows it can also erode their commitment to ethical behavior. This phenomenon, known as ethical fatigue, makes it challenging to take the high road and maintain integrity when faced with complex decisions.

Buy Radico Khaitan (Rs 1,817): | Target: Rs 1,990, 2,090 | Stop-loss: Rs 1650

Stock has broken out from multi week consolidation pattern on the weekly charts. Price rise was accompanied by healthy volumes. Stock is trading above all important moving averages, indicating bullish trend on all time frames. Indicators and oscillators have turned bullish on daily and weekly chart. Stock price has started forming higher tops and higher bottoms on the daily charts.

(Vinay Rajani, senior technical and derivative analyst at HDFC Securities. Views expressed are his own.)

First Published: Aug 28 2024 | 6:22 AM IST