Cognizant’s Digital Makeover PlanWith tech budgets directed more to new-age digital projects, Cognizant is sprucing up this platform to stay ahead of rivals
The New Selling Plan: Chai Pe EcommerceHyper-local strategies like offering free tea to sellers and retailers, are becoming central to online marketplaces in India
Startups Design Tech in Local Languages Ecommerce websites are translating their platforms to make them accessible to users residing in tier-2 or tier-3 cities
Startups & Tech
MUMBAI | 20 PAGES | * .̀ 3.00 OR .̀ 6.00 ALONG WITH THE TIMES OF INDIA TUESDAY, 21 APRIL 2015
PAGES��6 & 7
BENNETT, COLEMAN & CO. LTD.THE ECONOMIC TIMES
WWW.ECONOMICTIMES.COM
Gandhi is a Blockbuster
PURE POLITICS
Rajiv, IndiraNo More inHindi Awards
Names of Indira Gandhi
and Rajiv Gandhi will no
more figure in the annual
awards given by home
ministry on Hindi Diwas
for progressive use of
Hindi in government,
reports Aman Sharma.
Yoga GurusDid Give‘Aum’ a Miss
Experts roped in for Yoga
Day celebrations con-
firmed that references to
‘Aum’ would be dropped,
contradicting BJP leader
Ram Madhav’s claims.
AAP ExpelsBhushan and Yadav
Shambhavi Anand & Evelyn Fok
New Delhi | Bengaluru: Online gro-cery and vegetable retailers are burningcash in advertisements to get more shop-pers, just like Flipkart and Snapdealhave been doing for more than a year, asinvestors have put .̀ 250 crore in threefunding deals within a week this month.
Specialised players such as LocalBa-nya, BigBasket and Mera Grocer are ad-vertising heavily while ecommerce gi-ants such as Snapdeal, Amazon andPaytm too plan to focus on a market seenas having huge potential. After all, foodand grocery make up for almost 70% ofIndia’s overall retail market, plus a hugenumber of Indian consumers is alreadyused to mobile and Internet shopping.
“Grocery forms a very large sector forany household and the local kiranaplayers have not been able to give ser-vices which a modern customer wouldlike to get,” said Mayank Khanduja,vice-president at SAIF Partners.
Short Purchase Cycle��19
Cos join ad bandwagon,
a la Flipkart & Snapdeal
Amazon India is inviting
wholesale merchants to
transact on a new website to
be launched this week, reports Aditi
Shrivastava from Bengaluru.��8
Amazon Opens Windowfor Wholesale Merchants
RAHUL GANDHIVice-President,Congress
Yours is a govtof suited-boot-ed people, whodo not under-stand that thereal power ofthe country lieswith its farmersand labourers,and not withthe corporates
New Road Safety Bill Seeks toDefine Taxi-hailing AppsIndia will for the first time clearly define online
taxi-hailing companies like Uber and Ola in the
road safety Bill that is in the works.
Companies��9
Centre Proposes to Change Rules of Benami Property OwnershipThe government could sharply restrict the rela-
tives in whose names property can be acquired
to spouses and unmarried daughters.
Economy ��17
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Expected Tax Rate Surge on GSTRollout may be Reined in The Centre and the states want to rein in surge in
service tax when GST is rolled out, perhaps by
taxing only a part of the service.
Economy ��17
Inside story
Do you agree with the govt's recentcrackdown on some NGOs?
www.economictimes.com
Is the sell-off in the markets indicative of deeper economic problems?
TODAY’S QUESTION
83%YES
12%NO
5%CAN’T SAY
D-St Loses Gripas a Mountain ofWorries LoomsConcern over dip in
corporate earnings,
Chinese trading curbs
& tax on foreign funds
Our Bureau
Mumbai: Indian stocks drop-ped on Monday for the fourthstraight day, weighed down by aheady mix of worries about cor-porate earnings slowdown, Chi-nese downturn, escalating debtworries in Greece and concernover retrospective taxation ofoverseas portfolio investors.
The rupee’s decline to amonth’s low against the US dol-lar also hurt sentiment as for-
eign institu-tional investors(FIIs) dumpedshares worth.̀ 1,500 crore.
Benchmark in-dices — Sensexand Nifty — fellbelow crucialsupport levels,mirroring the
weakness in rest of Asia, afterChina’s curbs on speculativetrading eclipsed its centralbank’s move to ease liquidity.
The BSE Sensex dropped 555points, or 1.95%, to close at27,886 on Monday, below thecrucial support level of 28,000.NSE’s Nifty index declined 157points, or 1.83%, to end at 8,448,below the psychological sup-port level of 8,500. Both indiceshave fallen 4% in the past fourtrading sessions.
Market Likely to Remain Dull��19
STOCKS ON THE SLIDE
Of 30 Sensexstocks, 28 fellwhile tworose. RIL,which fell4.5%, was the biggest index loser
Weak FootingCOMPANY
BoB
Lupin
BPCL
Sun Pharma
ACC
CMP % CHG
1.07
0.95
0.71
0.58
0.53
179.5
1786.95
803.5
1043.8
1529.75
NIFTY GAINERS
NIFTY LOSERSCOMPANY
NMDC Ltd
RIL
Hero Moto
IndusInd Bk
M&M
CMP % CHG
-5.09
-4.45
-3.91
-3.68
-3.01
126.75
885.65
2316.35
843.75
1187.7
SECTORAL LOSERSSectors
ET Retail
ET Teleservices
ET Realty
ET Power
ET Oil & Gas
ET Sugar
ET Hospitality
ET Media
ET Infotech
ET Fertiliser
ET Metal
Index Value % Chg
-2.51
-1.95
-2.81
-2.01
-2.59
-1.56
-1.57
-2.07
-2.03
-2.15
-1.11
1168.67
1930.55
2755.52
3649.24
4965.32
6788.61
6848.06
7227.09
8535.3
8590.97
11341.99
New Delhi: More trouble seemsto be brewing for Greenpeace withthe Intelligence Bureau askingthe finance ministry to withdrawthe environmental lobby group’sincome-tax exemption citing al-leged financial irregularities.
IB has written to Revenue Secre-tary Shaktikanta Das, giving de-tailed account of the alleged vio-lation of the provisions ofForeign Contribution (Regula-tion) Act as also some of its activ-ities that ran counter to its statedobjectives, two persons privy tothe matter said.
The move drew a scathing re-sponse from Greenpeace India.“We are not surprised the gov-ernment is using institutionalpower to orchestrate an attack onGreenpeace... This is yet anotheraction that we will contest and as-sert our legitimate status as anon-profit charity involved in en-vironmental protection,” Execu-tive Director Samit Aich told ET.
Errant NGOs in Line of Fire��19
Greenpeacein Crosshairs;I-T Break maybe Withdrawn
TIGHTENING SCREWS
IB alleges financialirregularities in letterto revenue secretary
IN EXIT MODE Japanese drugmaker gets ready to sell its entire 9% stake inSun Pharma for .̀ 18,000 crore, appoints Goldman Sachs to execute sale
Our Bureau
Mumbai: Japanese drugmaker Daii-chi Sankyo will exit from Sun Phar-ma by selling its 9% stake in India’slargest drugmaker by market valuefor roughly .̀ 18,000 crore in blocktrades in the stock market, two peo-ple with direct knowledge of the de-velopment said. Daiichi, which soldRanbaxy Laboratories to Sun Phar-ma for $3.2 billion in April 2014, hasappointed Goldman Sachs to executethe sale on Tuesday.
The sale will bring the curtainsdown on a harrowing chapter forthe Japanese drugmaker which be-gan when it purchased Ranbaxy in2008. It suffered a series of joltswhen the US FDA pulled up Ran-baxy for technical deficiencies andaccused the firm of faking test re-sults to obtain clearances for itsproducts. Daiichi was forced to pay
$500 million in settlement. Ranbax-y’s value dropped steeply due to thedisputes, so much so that its shareswere trading at .̀ 460 at the time ofthe Sun purchase last year. Daiichi’spurchase price from Ranbaxy share-holders was .̀ 737 in 2008 though the
Delhi-based firm’sshares never touchedthat level, havingpeaked out at .̀ 660.
Last year’s pur-chase of Ranbaxy bySun gave Daiichi a9% stake in India’sbiggest and mostprofitable pharmacompany by market
cap. Huge appreciation of Sun Phar-ma shares since the announcementof merger of Ranbaxy with SunPharma could be the reason for theJapanese drugmaker’s exit.
Sun Shares have Gained 68%��19
Sayonara! Daiichi Set to BidAdieu to India via Block Deal
The shareswill be soldat a discountto Sun’sclosing priceof .̀ 1,044 apiece onMonday
Kolkata: Sam Balsara’s MadisonWorld has roped in Vikram Sakhuja,global strategic development officerat GroupM, as the chief executive of-ficer and board member of MadisonMedia and Madison OOH, a personclose to the development told ET.
Sakhuja will also own a “low single-digit minority stake” in MadisonMedia and Madison OOH, whichwill go up over some years to lowdouble-digit stake, the person said.
This is the first time that Balsara,who owns Madison World alongwith his daughter Lara Balsara, isgetting into an equity partnership.
Sakhuja to Run Ops of the 2 Cos��19
Joins Madison Media, OOH as chief executive; to own stake in firms
Sakhuja is Latest Advertising StarREADY FOR A NEW ROLE
1984 Management trainee at DCM Ltd
1988 Associate Manager at Procter & Gamble
1996 Marketing Manager-Brands at The Coca-Cola Company
ALUMNUS OF IIT-DELHI & IIM-CALCUTTA
VIKRAM SAKHUJA
2000 EVP, Star TV
2002 MD, MindShare
2006 CEO, GroupM South Asia
2013 Worldwide CEO, Maxus
2014 Global Strategic Development Officer, GroupM
Rahul: Naam to Suna hi Hoga!
Special Feature
War over Zero RatingEight lakh emails arguing for a free In-
ternet hit Trai, Flipkart walked out of a
deal with Airtel, Mark Zuckerberg had
to step up and defend Internet.org.
Romit Guha unravels the fierce debate
around ‘zero-rating’, where a website
pays a telecom company to ensure it
can be accessed free by users.��16
The Story So Far June 2008Daiichi Sankyo buys controlling stake inRanbaxy Lab for
$4.6 BILLION
April 2014Sun Pharma buys Ranbaxy for
$3.2 BILLIONin a share-swap deal
June 2014Sun Pharmaannouncesdecision to MERGE WITHRANBAXY
Ranbaxy market value halves in four years as FDA clamps down on its Indian plants
DAIICHI GETS 9%STAKE IN SUN PHARMA
Sun Pharma market value rises 68% since announcement of merger with Ranbaxy
Gautam Bhandari, the for-
mer top Morgan Stanley
fund manager who quit in
2012 with nine colleagues to set up PE
firm I Squared Capital, on Monday
closed a $3-billion (.̀ 18,768 crore)
fund that will invest in both Indian
and global infrastructure assets, re-
port Sneha Shah & Baiju Kalesh.��9
Bhandari Closes$3-Billion Fund
With the stock market
correcting from record
levels, some investors
are feeling encouraged to dip their
toes in the water. ET speaks to
leading market players for their
insights on the equity MF schemes
that investors can buy into to bet
on India’s growth story.��11
Top Equity MFs toPlay India Story
The government plans to use former PM
Jawahar Lal Nehru and Indira Gandhi’s state-
ments on rehabilitation to counter Congress’
attack over the land Bill, reports Nistula Hebbar.��2
BJP Fishes Out Nehru Quote
Our Political Bureau
New Delhi: Surrounded, al-most like a protection team, bya handful of the not-so-manyCongress MPs, Rahul Gandhidelivered his maiden perform-ance in Lok Sabha since the2014 polls, charging the Modigovernment with abandoningfarmers to favour corporates.
“Yeh suit-boot ki sarkar hai…aapki sarkar bade logon ki sar-kar hai,” he said while takingadig at Transport Minister Ni-tin Gadkari on his reportedly“honest” comments that thefarmer should not depend on“Bhagwan” or “sarkar”.
Rahul Back in the Picture��19
Full SpreadBigBasket
LocalBanya
Mera Grocer
ZopNow
Grofers
PepperTap
GrocerMax
Oct-11
May-12
Jan-15
Sep-11
Dec-13
Nov-14
Dec-14
60
20
0.5
10
45.5
11.2
Early-stage funding from HNIs**
Founded Funding*
*($ Million) **(Amount not revealed)
Valuation*223.8
NA
NA
50
115
NA
According to India Brand Equity Foundation, food and grocery made up 69%
of India’s $490-billion retail sector in 2013, followed by apparel at 8%
Trouble Ahead?IB writes to revenue dept on alleged violations by NGO
Income-tax dept could cancel its registration
Greenpeace could lose tax exemption
Online Grocers Use Cartsof Cash to Lure Customers
AR
IND
AM
PAGES ��2, 3, 4
Aam Aadmi Party
has expelled rebels
Yogendra Yadav and
Prashant Bhushan, as
well as two others, for
“anti-party” activities.
