- #Nifty, #Sensex end mixed
- #Zee settles all merger-related disputes with #Sony
- #FSSAI withdraws directive on #A1, #A2 milk labels
Tune in to 'Profit 360' with Nupur Talwar Suri for these and more top news of the day. #NDTVProfitLive
- #Zee settles all merger-related disputes with #Sony
- #FSSAI withdraws directive on #A1, #A2 milk labels
Tune in to 'Profit 360' with Nupur Talwar Suri for these and more top news of the day. #NDTVProfitLive
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TVTranscript
00:00Banking sector was a key contributor in trade yesterday, up just about a quarter of a percent
00:05thereabouts today and that's where probably some bit of pressure came through. Nifty IT
00:10also largely flat. The underperformers largely were FMCG which stood out for me at least
00:15a percent down and Nifty Metal was also down around 0.6 odd percent. In terms of the top
00:22gainers the Nifty Media really stood out four percent higher in trade today.
00:28Thanks Harsh for that. Now India is an exciting market to look out for from a global investor's
00:37lens according to Jim Rogers. He joined us earlier to share his two cents on Indian market
00:44adding the lessons he learned about investing from Indian women. Listen in.
00:49I make many mistakes. I have missed many stock market moves in my career. I've certainly
00:56missed the Indian market. I'm embarrassed because I've invested in India many times
01:01in my life and here finally Delhi has the right attitude and I missed it. I watched
01:09it. I see it happening but I've missed it. And as far as I'm concerned I don't like to
01:14jump on a moving bus. If you jump on a moving bus sometimes you get hurt. I just want to
01:21say one thing that I learned about gold and silver from India markets and I went to some
01:27of those markets and I would say Indian women wives with unbelievable amounts of silver
01:33and gold. So I learned. I learned. You know Indians have taught me a lot about gold and
01:41silver in my career. In an official statement Zee Entertainment has said that the two companies
01:48namely Zee and Sony Pictures Networks India have mutually agreed to withdraw all respective
01:53claims against each other. This is with regards to the ongoing arbitration at the Singapore
01:59International Arbitration Centre. All related legal proceedings initiated in NCLT and other
02:04forums in a joint statement both companies said that the settlement stems from a mutual
02:09understanding between the companies to independently pursue future growth opportunities.
02:14Vehicle manufacturers have agreed to offer discounts for purchase of new vehicles against
02:22the scrapping of older vehicles with a valid certificate of deposit. But will this be enough?
02:27Tushar joins in with more on this. Tushar over to you. Thank you Hemakshi. So essentially the
02:35Transport Minister Nitin Gadkari has announced on Twitter that automakers have agreed to offer
02:42discounts against the purchase of new vehicles when they trade in for scrapping the older
02:47vehicles. While more details are awaited on this, the Transport Minister has said that this will
02:53definitely advance the circular economy efforts ensuring that cleaner, safer and more efficient
02:58vehicles are on roads. Remember this is also an extension of the National Vehicle Scrappage
03:02Policy which was first introduced in August 2021. Under this the lifespan of a passenger
03:07vehicle is 20 years. The lifespan of a commercial vehicle that is the buses and trucks is 15 years.
03:12So how does that give a fillip to more sales or scrapping is yet to be seen. We need more
03:19details on it. Hemakshi. So Tushar stay with us another company in our focus is Maruti. In its
03:26AGM Chairman R C Bhargava said that the company will roll out six EV models by 2031. Tushar
03:32very positive commentary coming in from Maruti. Tell us more about it. Yeah. So essentially
03:37Hemakshi we're looking at about six electric cars in the next six years or so. And that's
03:41actually significant because Maruti Suzuki is yet to launch an electric car in the Indian car market
03:47despite being the largest car maker in India. So R C Bhargava stated that EVs are a priority
03:54objective of Maruti Suzuki but it does not have an electric car or at least the first electric
04:00cars more than six months away. According to Bhargava the electric car the first electric
04:05car will get into production the next few months with a launch that is slated for the Auto Expo.
04:09That's in the first three months of 2025. So essentially it's quite a departure from Maruti
04:17Suzuki's hybrid focus so far. That has also allowed Tata Motors to actually steal a march over the
04:24largest car maker in the EV space. Remember Tata Motors EV business is already a billion dollar
04:30enterprise. That has also allowed Tata Motors to actually take a big step towards launch getting
04:38into the midsize SUV space with an EV with the curve. So essentially we have to still we have
04:43to see that whether this an opportunity lost for Maruti Suzuki or whether it will play catch up
04:49soon with the with companies that have already have products in the space. Hemakshi. Yeah Tushar
04:54thanks for those insights Tushar. So this Yamaha dealership has gone viral. Resourceful Automobile
05:01and SME with two showrooms and one workshop has come out with an IPO. The craze for IPOs is such
05:07that this dealership has got bits worth 4800 crore rupees and the IPO has been subscribed 418 times.
05:14My colleague Rishabh visited Resourceful Auto to see what the hype is all about. Here's a ground
05:20report. Right behind me is one of the two showrooms that is owned by Resourceful Automobile. Why I'm
05:28telling you this is because Resourceful Automobile's SME IPO has hit the markets and has caused quite
05:35the flutter. This IPO worth about 12 crores has been subscribed over subscribed by 400x making
05:44the bids at about 4800 crores. Now why this is intriguing is because this company has a revenue
05:51of only about 17 crores and the profit after tax of only 1.5 crores after this is for 11 months
06:00that have ended since February 29th. What we're also seeing is that this is the trend with SME
06:09IPOs we've seen quite a lot of bubbles like this being created 100x, 200x, 300x and now a 418x
06:16subscribed IPO right behind me. In terms of assets this showroom, another showroom and only one
06:23workshop that's all that this company has. It has about eight employees according to its RHP as
06:29well. It is a dealer of Yamaha motorbikes and that is what it sort of excels in. What we're also
06:37seeing is that this operates under the Saadi Automobile's name and the subscription is now
06:44closed. It will head for listing on August 29th and what we now see is whether the grey market
06:50premium holds up on listing day. Well thanks Rishabh. Now Hindustan Unilever has received a
06:57tax demand of more than 950 crore rupees which includes over 300 crore of interest from the
07:02Income Tax Department. The notice pertains to the acquisition of Horlicks brand from Glaxo Smith
07:08Clyde for over 3000 crore rupees. Sesha Sen joins in with more on this. Sesha over to you.
07:14Hindustan Unilever Limited has received a tax demand of rupees 963 crore which includes interest
07:21of 329 crore from the Income Tax Department. Now this is related to the TDS not paid while making
07:28of nearly 3000 crore for the acquisition of the Horlicks brand for India from GSK. Now remember
07:35in 2018 HUL acquired the health food drinks portfolio of GSK which includes brands like
07:42Horlicks, Boost among others in India, Bangladesh and 20 others predominantly Asian markets. Despite
07:49the hefty tax demand HUL has indicated that it does not expect any significant financial implications
07:56at this stage and the markets likewise have reacted marginally to the development. The
08:01FMCG major plans to appeal the order in response to the demand taking all necessary legal actions.
08:06It claims that income arising from the sale of intangible assets as in the case of the GSK deal
08:13are not subject to tax in India. Moreover HUL has said that it has an indemnification right
08:19which allows it to recover the tax demand raised by the ITU department from relevant parties. HUL
08:25is expected to undertake further steps to enforce this right. India is poised to have nearly 2000
08:33global capability centers which will employ 2 million people by 2025. That's the word coming
08:39in from Neeti Sharma the CEO of T-Blizz Digital. She added that the jobs role would be focused on
08:45generative AI, machine learning and cyber security and that the salaries offered would be 12 to 20
08:51higher than the IT services sector. Listen in to a snippet of this conversation.
09:21This report is actually evolving around demands of skill sets and employment trends
09:29that are panning across multiple job roles across multiple skill sets. We are also looking at how
09:35not only tier one but even tier two cities are now becoming hubs for tech talent hiring.
09:41So we've kind of analyzed about 10 sectors about three industries which are basically the IT
09:47products, GCCs and the non-tech industries. We see that within the GCCs and the non-tech
09:53industries sectors such as BFSI, retail, automobile, manufacturing, healthcare, pharma tech,
10:01all of these continue to bring in tech talent across levels and a lot of these are hiring
10:08pressures but there is an increasing demand for both lateral as well as senior leaderships.
10:15Two weeks after the World Health Organization declared mpox as a global health emergency,
10:20India has developed its own homegrown RT-PCR testing kit for detecting mpox.
10:25According to the latest report by ANI, the testing kit is developed by Simon's Healthineers.
10:31It has already received manufacturing nod from the Central Drugs and Standard Control Organization.
10:36The kit is expected to show results in 40 minutes which is significantly faster than
10:41the traditional testing kits taking one to two hours in giving the output. What is even better
10:47is that the new kits can be incorporated into the existing infrastructure created for COVID-19,
10:53hence creating no need for newer equipment. Clinically approved by ICMR, National Institute
10:58of Virology, the RT-PCR kits are likely to show 100% sensitivity and specificity.
11:05Taking a detour, Bharat Biotech announced the launch of its oral cholera vaccine.
11:11NDTV's Uma Sudhir caught up with Executive Chairman Krishna Ella
11:15on the current availability of the oral cholera vaccine and status of trials.
11:34We believe that we always work on neglected diseases. We want to help the communities at
11:39large. I don't want anybody to die because of infectious diseases. So I think it's very
11:44momentous because if we can save some of the people in Africa, I'm more than happy to be a
11:50part of that. The work for this started 10 years ago, I mean even before the world knew you as the
11:55man who brought the Indian COVID vaccine. I mean people know me but cholera is very specific to
12:02Africa right now. And so many people really feel that there's no market opportunity for that.
12:08So I think I'm passionate about it because you know many African businesses were there to our
12:14plan and we're working on most of the African continent disease. One of them, I mean typhoid
12:19conjugate, we were the first one. Now we made now cholera and we are focusing quite heavily on
12:24African specific diseases. The protest which was happening in Kolkata demanding justice for the
12:31gruesome RGK rape and murder case turned violent. Protesters tried to break barricades as Kolkata
12:37has turned fortress with 6,000 people personnel's, police personnel's on the roads. The protest was
12:43organized by an unclaimed student union who organized the protest march up till the state
12:48secretariat. We have more inputs coming in from the ground as Saurabh Gupta joins us. Saurabh,
12:53what is the update from the ground currently? Well protests of course have been going on against
13:01the RGK incident. But today of course there was a Noba Nobi Jan which the Trinamool Congress
13:05alleged was a ploy by the BJP and its affiliates to create anarchy and a situation of chaos in West
13:12Bengal to destabilize the state. The BJP says this is of course a call given by a student's body and
13:19the BJP has nothing to do with it. However what the police said was that this organization that
13:25had given the call for this protest was also not an organization that was registered as a
13:31student's body and they also said that one of the persons who gave a call for this protest
13:38had met a leader of a political party at a five-star hotel in Kolkata clearly indicating
13:46that there was political backing for this protest. Now obviously this has also led to a war of words
13:52between the Trinamool Congress and the BJP, exchange of rhetoric, blame game, all of that
13:57has happened. But on the streets of Kolkata today the police have had to use force including water
14:02cannons, tear gas shells to prevent people from marching to Noba Nobi Jan, which anyways is a
14:07high security zone and protests are not allowed like several other locations in the city. But
14:12this of course has become now a political war of words between the BJP and the Trinamool.
14:18Today also there were various barricades set up and till the time the protesters did not
14:24try to break the barricades or march towards Noba Nobi Jan and peacefully protested at where
14:30the barricades were, the police did not take action. However, upon protesters specifically
14:35at Shantarakachi trying to break the barricades and march towards Noba Nobi Jan, the police used
14:38force like water cannons, tear gas shells and lathi charge as well. These protests have also
14:44become a major talking point today with the Trinamool saying they are political and the BJP
14:49saying that they are a reflection of citizens' anger. The Supreme Court granted bail to BRS MLC
14:56K Kavita in the Delhi excise policy case. The court pulled up the CBI and Enforcement Directorate
15:02over the nature of the probe being conducted in the case. K Kavita, the daughter of former Telangana
15:07CM K Chandrasekhar has been in custody since March 15. The top court allowed her release on bail in
15:13both the CBI and ED cases on furnishing bonds for 10 lakh rupees each.
15:22Allegations have been raised against Malik Arjun Kharge's son and Minister Priyank Kharge and
15:27their family members in what looks like a land scam case. To give a context, a plot was allotted
15:33around 46 acre land on the Karnataka Industrial Area Development Port site in the high-tech
15:39Defence Aerospace Park. Out of the total land, 5 acres were approved for the
15:46Siddhartha Vihar Trust where Malik Arjun Kharge's family members are trustees.
15:52This has led to extensive discussions in political circles.
16:09We are talking about 5 acres of land meant for civic amenities that has been allocated to an
16:15educational trust, the Siddhartha Trust, which belongs to the Kharge family. Now,
16:20the owner of this trust is Rahul Kharge, who is the son of Malik Arjun Kharge.
16:25The Congress has been maintaining the fact that Rahul is a learned man. He is an IIT graduate
16:30himself and that this land is being used for R&D purposes and that is why, based on merit,
16:35this land has been allocated. But in the meantime, the BJP's allegation is that
16:40this is not allocated to an industry body. The fact that this has been given to an educational
16:45trust and the fact that this has been given to an educational trust owned by Kharge family
16:50points to flouting of rules, number one, and misuse of power, number two, and nepotism,
16:55number three. While the BJP has been levelling these allegations, these have been termed
17:00baseless and that this is based on merit is what the Congress has been maintaining.
17:05In the meantime, an activist has filed a complaint talking about these rules.
17:09First knocked the doors of the Chief Minister as well as Mr. Rahul Gandhi,
17:12but having got no response there, he finally resorted to taking the complaint forward to
17:17the Raj Bhavan. Now, the complaint lies with the Governor. We'll have to wait to see what
17:21kind of action would take place on that front. But in the meantime, yes, the political blame
17:26game continues as far as this Aerospace Park land near Bengaluru is concerned. Back to you.
17:33Three people are reported dead and 17,000 people have been evacuated as heavy rain lashes Gujarat.
17:39Saurashtra, Kutch, Kheda and Walsar are the worst hit. The Met Department has issued a red alert
17:45and said that heavy rains will continue for two more days. CM Bhupendra Patel held a high-level
17:50meeting. 13 NDRF and 22 SDRF teams have been deployed in the rescue work. Schools and colleges
17:56have been closed for the next two days.
18:02Tech giant Apple has brought in Kevin Parikh as their new Chief Financial Officer. He will
18:07be replacing veteran Luca Maestri on 1st January 2025. Experts see this move by Apple as very
18:14tactical, as the company is bringing their biggest software upgrade for the iPhone.
18:19Kevin was the key to the financial leadership team. Apple CEO Tim Cook said in a statement
18:25that Kevin is the perfect choice for the CFO position.
18:31Moving on Meta Platform, CEO Mark Zuckerberg alleged that Facebook was pressured by the
18:37Biden government to censor content related to COVID-19. In a letter to the US House of
18:42Representatives, Zuckerberg said that the platform had to make some changes in the content moderation.
18:48He then went on to say that he regretted the company's decision to accede to the US government's
18:54demands and also that he should not have compromised on the content standards due
18:59to pressure from administration. Japan military has accused China of violating the Japanese air
19:06space. It said that an airplane which belonged to the Chinese military entered Japan's air base.
19:12Government's official spokesperson has said in Japanese media that this is a security threat
19:18and unacceptable behavior by the Chinese. China said it was verifying claims by Japan.
19:24Now, let's hear a view coming in from Matthews of Julius Baer who believes that RBI as well as
19:33other central banks will follow suit after Fed cuts rate. Listen into a slice of this
19:38exclusive conversation my colleague Muralidhar Swaminathan had with him.
19:44I imagine the RBI will follow the Fed and many other central banks as well, by the way.
19:51But to come back to my earlier point, the relative attraction of India is there are
19:59two sides of the coin. One is that India is doing very well. I don't see that changing.
20:05But the other side is that the US is doing very well and you need to see the US do less well.
20:12I don't mean go into a bear market, but I just mean stop being the really incredible bull market
20:18that it has been for the last 10 plus years for interest to broaden out to countries like India.
20:28And I think what I'm trying to say is I don't really see the case for the US bull market ending
20:37anytime soon. And as long as that is the case, that the bull market in the US is intact,
20:43then you are not probably going to see a lot of investors trying to go out to other parts
20:50of the world to seek better returns. I mean, why should they?
20:53Right. Unless the election outcome or election results could play spoil sport,
21:00what's your view on how politics will play after the election results in the US?
21:06Well, that's a good point because a lot of things could happen. And one thing that could happen
21:12is that Kamala Harris could be president, but the Republicans could gain the Senate and keep
21:21the House of Representatives. And if the Republicans control both chambers of Congress,
21:27I think they will not be supportive of any spending bills from a Democrat White House.
21:33And that would slow the growth trajectory in the United States. And that might make
21:39the rest of the world more interesting from an equity perspective. But I would say
21:44that is not our base case scenario right now. Although Mrs. Harris is in the lead,
21:51Vice President Harris in the opinion polls. In fact, you must remember that in 2016,
22:00Hillary Clinton was vastly in the lead in the opinion polls at this time.
22:04And she lost to Donald Trump. And Biden was well ahead in the opinion polls in 2020.
22:14He just barely beat Trump by quite a small margin. So I would say a lot can happen.
22:22There are scenarios like the one I described with US politics that would cause a deceleration
22:30in growth in the United States and make the rest of the world more appealing. So we'll have to
22:36wait and see which one plays out. Starting October, YouTube is set to hike
22:41subscription prices across all tiers for Indian users. This change affects both current subscribers
22:47and new users. For a comprehensive breakdown of the changes, let's go to Malvika for the details.
22:54YouTube is hitting Indian users with a major price hike,
22:58raising subscription fees significantly across all tiers. Five years after its introduction
23:03in the country, the individual membership will see a 15% increase, with the monthly cost rising
23:09from Rs. 129 to Rs. 149. The family plan, which allows sharing up to six members,
23:15is experiencing the steepest hike, jumping a staggering 58.2% from Rs. 189 to Rs. 299 per
23:23month. This means that while the plan could still be a good value for larger families,
23:28it has become considerably more expensive for smaller groups. Students will also feel the pinch,
23:33as their plan rises by 12.65%, increasing from Rs. 79 to Rs. 89 per month. Prepaid plans are
23:41similarly affected by these price adjustments. Current subscribers are being alerted through
23:46emails about the upcoming changes, and must confirm acceptance of the new rates before
23:51their September billing cycle. Failure to do so will result in their subscription ending
23:55before the new prices come into effect in October. This move reflects broader trends
24:00in rising subscription costs, and prompts users to reassess their options based on new prices.
24:21Stay tuned to Eddy TV Profit for more fresh news and updates.
24:51you
25:21you
25:51you
26:21you
26:51you
27:21you
27:52you
27:54Well, if you're trying to know KPIT and what it will do in the future,
27:58you got to watch this show because we are in the Pune campus of KPIT Tech,
28:03and talking to the CEO Mr. Kishore Patil and his colleague Anup Sable about where KPIT is today,
28:10where mobility is today, and where both will be in the times to come.
28:15Join me.
28:28Thanks so much Mr. Patil and Anup for having us here. It's a fabulous campus that you have
28:32out here. Must be a delight to come and work here. Absolutely. I can imagine. And must be a delight
28:38to be in a company or be a part of a company that has grown at such a breakneck pace. I was
28:43telling our viewers that you've had what 16 consecutive quarters of growth. And arguably,
28:49as somebody told me a statistic, that if you map global companies for 30, 30, 30, 30% top line
28:55growth, 30% bottom line growth, great ROCs, there are very few companies who come. So it's been a
29:00great last four or five years for you post COVID. How does the future look like? Very promising,
29:06very exciting. I think we are as much excited about future as we were four or five years back,
29:14maybe more because I guess four or five years back, there was a bit of uncertainty. But now,
29:18we are more certain, more excited about the future. And we are really seeing
29:28changes in the business, changes in the technology, changes in the market,
29:33and changes in the business model. So a lot of changes we see and we see that opportunity
29:40in what we do. I'm sure you do. But just wondering, there's a lot of talk right around
29:45how, while I know technology is always changing, but everybody talks now about how AI having come
29:51in is actually the new big thing that happened since the internet. Now, and a lot of question
29:55marks around Indian companies ability to be able to not just adapt to AI, but to be able to give
30:01AI solutions as well. You are in a niche vertical to both of you. How do you see this big challenge
30:07from your perspective? I think there are, of course, good things and some misconceptions about
30:14AI. The first and foremost misconception about AI is, AI is going to replace everything. I don't
30:20think it's going to replace anything, it's going to augment everything. That means every problem
30:27that is there in the world, every problem that there is in the automotive world,
30:31AI is going to provide a better opportunity to solve the problem. And some of these problems
30:37in today's context are non-solvable, are difficult to solve. For example, a car production happening
30:45in less time, the time to market. That is because a lot of validation keeps on happening on that,
30:51and sometimes the validation is not complete. Most of these things will be able to accelerate
30:57because of it. And I think there is a great opportunity to make this happen and literally
31:04impact the industry as a result of it. Anup, you were saying that some misconceptions, AI will not
31:10do away with everything, and you will be able to adapt AI in order to give offerings to your
31:15clients. Is that something that is already happening and does that enhance your solution suite?
31:22Absolutely, yes. I wouldn't be able to go into much details about what we are doing. But as I
31:27said, we should look at AI from a tool that helps us to do much better things. Things that were in
31:37the realm of almost impossible will be possible to do. And as a result, then we'll be able to
31:42leverage many, many more opportunities that are there. Okay, fair. But sorry, Mr. Patil,
31:47you wanted to add something to this. Yes. So what I'm saying is the last CES, when we typically
31:53showcase the new products or new offerings, we can help our clients. We launched our first
32:02JNAI-enabled offering on diagnostics along with Microsoft. So that was the first one,
32:07but I guess that was the first one to demonstrate, and that's in the after-sales area.
32:15But there are many areas which we believe there could be much more that we can offer.
32:21The other aspect that is coming to the fore is people saying that the spends around electrification,
32:27EVs, etc. are all coming off, the impact of which will be seen in the next, let's say,
32:34a couple of quarters. And it will probably show up in the business that companies like you or
32:39automotive focused verticals of other ER&D players will show up. What's your view? Do you
32:45sense that? I think the first thing I said is propulsion is very core to the vehicle, right?
32:54There won't be any vehicle without a propulsion. Now, looking at that, there are multiple options.
33:03Propulsion, which is conventional, people are trying to make it more efficient.
33:07Electrification, which is there. Hybrid, it is there. Then there is a fuel cell or hydrogen
33:13vehicles which may come in the future, or in some way piloting is happening. So there is, in my view,
33:21it is an irreversible trend to go towards electrification or what you call no energy
33:26vehicle. I have zero doubt in my mind. It will move towards a new energy vehicle.
33:32Now, the pace may, even today, more electric vehicles, there is a growth in electric vehicles.
33:39It is just a little bit tapered down. And one of the main reason for that is most of the vehicle
33:47manufacturers are not making money by selling a vehicle. They're making a loss by selling a
33:52vehicle. And that's why they are adjusting because, as you know, the number of vehicles
33:58which will be sold, specifically, if you look at next 12 months or 18 months,
34:02it is expected that the number of vehicles sold will not grow, will be flattish or may
34:08reduce a little bit. In that case, they have to manage their profitability. So from that
34:14perspective, they have basically increased their portfolio, bringing hybrid and other things,
34:19because two things they have to bring in the vehicle, they have to make
34:23profits and they have to also make their commitments on emissions. So they have to
34:29manage their mix. But in my mind, there is no doubt that new energy vehicles is going to continue.
34:37It's an important point you mentioned. So I'm not sure you have the analysis ready,
34:42but if top of your mind, if the commitment to emission by all the large auto companies
34:48is a particular date, let's say, then would it mean that maybe growth rates are just a little
34:53bit in order to protect profitability, but the growth in electrification or non-fossil fuel
34:59vehicles, even if it takes a pause for six months or 12 months, will get accelerated?
35:04Absolutely, it will happen. Absolutely. But I'll give you one very interesting thing.
35:09And as you know, Japanese companies think very deep, very holistically. So Toyota, for example,
35:18they looked at that per the lithium, which is, if you would say, limited in terms of quantity,
35:28right, limited material. So per say, I'm just saying one ton of that, I'm just taking this,
35:35how they can maximize or minimize emission, maximize sustainability. So they came up with
35:44a formula that every EV, they will create seven hybrids to balance it out. So it's a little deeper
35:52thinking, but that's what their strategy was. So everybody is taking his own bets, dipping up on
35:58their thinking and et cetera. But NEV is going to be there. And pure electric is certainly a very
36:06dominant, will be a dominant player in the years to come. While this whole EV thing was on, there
36:12is a new, fast, high growth area of plug-in hybrids that has come in, which gives you an
36:18additional quote, unquote, line of business, if you will. Yeah. And the point is, our business
36:25does not depend upon how many number of vehicles which are being sold. It really depends upon the
36:31platforms. And so it will not get impacted if it gets, there are other opportunities like
36:38hybrid or this will be there. So I don't see it has any relevance with the general
36:45discussions which are happening in the industry. Actually, nothing is shutting down. It's, I think
36:49more streams are opening up to do things in parallel, do things much faster, focus on cost.
36:58So there is a good amount of challenge in the market available right now. Interesting. And
37:02that's where you come in. Okay. The other point is, I remember a conversation with Mr. Ravi
37:08Pandit last quarter or last quarter, and he said that your special expertise can be used in other
37:13industries. Now, in the release in Q1, I think you mentioned, right, that you are investing in
37:17adjacencies, newer geographical markets. Can you elaborate, both of you can elaborate on that?
37:22We are very bullish on mobility industry. Mobility industry brings the largest disruption in the
37:30technology and whole our play is around technology. So there are more opportunities we
37:37see in the tech world. However, when we started being only focused, when we talked about mobility,
37:48we just focused on passenger car largely and very few commercial vehicle. But now we thought,
37:55because it takes, we thought even we took, look at a medium term view, that even to develop some
38:03of these verticals, even to develop our knowledge about these verticals, it takes a bit of time.
38:08So we need to introduce them. And many of these technologies will work there. Over the period,
38:15these people will adapt it and our learnings will be invaluable to them. So from that perspective,
38:21we thought of getting into some of these verticals. And that's a point number one.
38:30Point number two, even in our T25 clients, actually, our large growth has come from 14,
38:3915 clients. And the other 10 clients are actually embracing SGB significantly now. So that is again
38:47our opportunity going forward. So one is this, the second is this. Now, third thing is in some
38:54of these, we keep on looking at who are the leaders. So now we see that some of the companies
39:00in China naturally have emerged as new leaders. So China becomes an important market and some of
39:05those become important clients for us. So we have included them as well as part of this.
39:10So I think it is always a dynamic situation, but not very dynamic. But we have to see a little bit
39:18ahead of time and see what can change in the industry, who can become a dominant.
39:25One of the hypotheses when we talked about 25 clients and that was, we look at the OEMs who
39:33are leaders in a particular area and geography. And if we service them well, the vehicles on the
39:39road, there will be maximum, we'll have our software. So that's what we keep on looking at it.
39:46Talk to us a bit about how this is happening, because one would assume that out there,
39:51they are not mobility companies which are introducing these. They are tech companies
39:55which are introducing mobility. How does an Indian ER&D company find business there?
40:02So China has many OEMs, right? I guess if you look at the OEMs across the world and OEMs in
40:08China, it would be the same probably. They have 30 EV companies and there are many other OEMs. So
40:14there will be 60-70 companies which are creating the vehicles, manufacturing the vehicles.
40:22Out of which there are about 4, 5, 6 which are what you can call ahead
40:30in thought leadership, technology, etc. Out of which few are what you said, people they started
40:36like from the software side or technology side and come into automotive. Some like BYD started
40:44from battery and came into automotive. So there are 4 or 5 or maximum 6 companies like that.
40:51Then there are in between 15 to 20 companies who are in the transition phase. And then there are
40:59rest who are behind the technology, old tech companies. So they have different
41:07requirements. So we are analyzing them. We are looking at what they really require. And
41:14I believe we have an offering or solution for each of them. We do not know how much
41:24we will be in a position to service right now, how big the business will be.
41:28But the first thing is we see acceptance from them to work with us. That is the point number
41:37one. They knew KPIT, they knew we work with rest of the world. The second thing we believe
41:44that they have certain problems which we could identify, including cost. We believe China has
41:52the lowest cost, but including cost they have certain problems. So we are trying to see how we
41:59can really come out with the offerings for that market, which will really help them in terms of
42:07profitability and market penetration. And the point here is we can take a lot of learnings from
42:19China and give it to the whole of the world, my other clients. So it is very important for us to
42:24be in China so that we can also learn and also take that learning back to all my clients globally.
42:31Got it. And Anup, it's probably not just a factor of how you reduce cost, but also addition,
42:37you're mentioning about how growing the time taken for the OEM to hit the market
42:41also gets woven in into all of your offerings and therefore helps the client, right?
42:46Yes, so I think reduction of cost also has multiple different dimensions, right? So there
42:53are certain dimensions that we will have a play in and those dimensions are also the ones that
43:01help go to market or faster time to market. And I think those areas we are extremely comfortable
43:07to take it and make it happen. And of course, as Kishore said, it's also a great opportunity
43:13to learn what has happened to take it to the global market. Okay, so with all these opportunities
43:18existing, where is mobility right now? Where do you guys see mobility 5 years or 10 years out?
43:25And coupled with that, where is KPIT right now? And how do you envision KPIT to be 5 years,
43:3110 years down the line? From a mobility perspective, you will see a lot of shifting
43:38happening in terms of the players and what positions they take. And I think even that
43:44shifting in my opinion will happen in two or three phases. So there may be a phase where
43:50some disruption happens, there may be a phase where the disruption sort of settles and there
43:54may be a phase where again, few things that were disrupted come up back to normal. Okay, so
44:01I don't think there is going to be anybody is going to vanish or anything from this space.
44:07More or less, the mobility space will remain stable from an external point of view.
44:12But internally, the brands, yeah, because I think the volumes, market shares, etc will go up and
44:18down. And then it will come down to some stabilized position in a couple of years. Okay, from a KPIT
44:24perspective, I think in that process, we have a larger role to play in terms of helping achieve
44:31these transitions for our customer, you know, because many of these things will result into
44:36new engineering things to be done. You know, the architectures are going to change,
44:41the fuel configurations are going to change, there are going to be transitionary things,
44:46for example, in commercial vehicles, like for example, before going to hydrogen fuel cell,
44:51there is going to be hydrogen internal combustion engines. So even there, there is a place to play.
44:57So there are many sort of options that are getting created in terms of how we would like
45:06to play. And I think what is happening is we are also through this process,
45:14getting to understand even the bigger role we have to play in this market. And of course,
45:20we have gaps to play that bigger role, but we are at it. And when we identify, we usually make it
45:27work. So till now, while we had a great contribution, fortunately, towards our client
45:38in technology, we focused on new technology areas, we see many new technologies still coming more
45:45exciting technologies coming in. So we see our role first going forward is some of the
45:52technologies which have been around, but are not necessarily adapted or stabilized as much
45:57like autonomous or etc. So help get it done that and realize that because people
46:03now are almost forgotten whether there will be really this kind of product on the road.
46:09So help some of this technology realize that's one interesting thing. There are new technologies
46:15which Anup talked about AI, there are many other new technologies which are coming. So we absolutely
46:21will play the role in bringing new technology faster, quicker, innovatively to the client.
46:29One thing which we did not do in last four years is we focused on largely on subsystem or this
46:36while we had an understanding of this, but I think we'll look at it more as overall vehicle
46:41and efficiency, overall efficiency of a vehicle across the systems across this,
46:49that is something we will do. No, sorry, I didn't get it. So you didn't do and what is it that you
46:54haven't done and you're doing now? No, no, what I'm saying is at a whole vehicle level, while we
46:59worked in all the areas, we did not look at it as a whole vehicle system. So not that we have not done
47:07anything, but we have done little on that. So we will probably play a bigger role.
47:11Latent opportunity. Oh, okay. And is there acceptance for something like that? Yeah, absolutely.
47:17That is the second part we'll look at. And the third part we look at it is actually
47:24there are different players, right? In Europe, they are used to work in a particular way
47:30because they are very diligent. They do the testing much more than other companies. They are
47:36very stringent on the quality. Similar maybe Japanese companies, while some are may or may
47:42not be as much, right? The point is, and that's why they are trying to take a shortcut on the
47:47cost or time, et cetera. We believe this gap can be significantly bridged through technology.
47:55So people don't have to compromise on quality. People don't have to do this, but technology will
48:02help them to really bridge this gap. Those kinds of solutions which we are working on, that means
48:10how the overall vehicle is planned, how they work across the ecosystem with tier one
48:18semiconductor companies, et cetera, how they actually use their internal process,
48:23and the actual working, their methodology or processes. That would also probably,
48:33they may have to tweak a bit to change to really achieve that. And that's why we always said that
48:38our role is 0.5 tier, which was, we never came as a service provider. Our clear goal was to come
48:46as a 0.5 tier, as we call it.