Data recap: Godrej split, Wipro CEO pay, Big 6’s lens

Srinivas Pallia, chief executive officer of Wipro Ltd. Photo: Bloomberg
Srinivas Pallia, chief executive officer of Wipro Ltd. Photo: Bloomberg

Summary

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The Godrej group, which began its journey as lock-maker 127 years ago, is now dividing its assets as the descendants have decided to go their separate ways. Meanwhile, Wipro’s new chief executive officer Srinivas Pallia, who took over for five years on 7 April, stands to earn up to $7 million ( 58.5 crore) in remuneration in his first year.

Legacy split

Two branches of the Godrej family have decided to divide the 127-year-old business empire between them. With divergent visions for the future, third-generation siblings Adi and Nadir (sons of Burjor) have decided to part ways from cousins Jamshyd and Smita (children of Naval). 

Nadir and Adi will inherit listed companies Godrej Industries Ltd, Godrej Properties Ltd, Godrej Agrovet Ltd, Godrej Consumer Products Ltd and Astec Lifescience Ltd — known collectively as Godrej Industries Group. Jamshyd and Smita will get an unlisted company called Godrej & Boyce Mfg Co Ltd, which will continue under the Godrej Enterprises Group.

Jobs scenario

Estimates compiled by the Reserve Bank of India (RBI) indicate that the number of employed people increased by nearly 5% to 580 million during the financial year 2022-23, a Mint report said, quoting unidentified officials. 

The data, part of the RBI’s annual KLEMS database, is likely to be released officially in a couple of months. The estimates are based on an analysis of the Periodic Labour Force Survey data for the same period. The growth was likely influenced by the relatively low base of the pandemic years.

Money matters

$7 million: That's the remuneration Wipro's new chief executive officer Srinivas Pallia could get in his first year. Pallia, who took charge on 7 April, will get a basic salary of between $1.75 million and $3 million and a targeted variable pay of up to $3 million, depending on the company's growth and profitability. He also gets stock options worth $4 million, one-fourth of which will vest to him on 2 May 2025. That means he could earn up to $7 million in his first year.

Services firm

The services sector saw an increased share in new company registrations in FY24, indicating a rapid formalisation trend in an industry with few entry barriers. 

Of the more than 185,300 new companies registered in FY24, services firms accounted for 71%, against 65% in FY23. Industry represented less than a fourth, and agriculture about 6%. Within services, community, personal, and social services saw the highest growth, with 49,241 new registrations, nearly twice as many as in the previous year.

Audit trends

A majority of India's largest listed companies chose to work with the ‘Big 6’ audit companies — Deloitte, EY, Grant Thornton, KPMG, MSKA & Associates, and PwC — in FY24. 

These audit giants scrutinised about two-thirds (67%) of the 483 Nifty 500 companies, a sharp rise from 61% in FY23, showed data from primeinfobase.com. 

Among the 'Big 6', EY group emerged as the leader, conducting audits for 164 companies in FY24, compared to 148 in the previous year. KPMG was a close second with 141 assignments, while Deloitte handled 119.

Renewed push

2.5 trillion: That's the estimated cost of the union government's plan to set up six thermal power generation hubs with a total capacity of 30 GW. The projected per-megawatt (MW) cost is more than 8 crore. 

Last year the power ministry had estimated that the construction of 1 MW of capacity would require up to 8.39 crore. According to a Mint report, public-sector undertakings such as Coal India will form joint ventures with power-generation companies and invest equity in these projects.

Sweltering heat, soaring prices

Parts of India are in the grip of a heatwave, with temperatures soaring to 43-46 degrees Celsius in Telangana, Odisha, Jharkhand and Maharashtra, and four to eight degrees above normal in West Bengal and Bihar. The India Meteorological Department (IMD) has forecast heatwaves across various states in May. 

Heatwaves threaten the production, storage and transportation of perishable crops such as fruits and vegetables, and thus have the potential to cause food inflation. Tomato prices have surged by 62% from the previous year as of 30 April. Extreme heat has also affected mango production in Karnataka, Gujarat and Maharashtra, leading to higher prices.

Chart of the week: Wealth gaps

Inequality and wealth redistribution has been a hot electoral topic in recent days. A study published by the World Inequality Lab shows the richest 1% of Indians now own as much as 40% of the country’s wealth, while the top 10% hold 64.6% of it.

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