Best of the Week: Living the Mumbai dream (briefly)
- Inside a Sebi probe, Trudeau resignation, and India's GDP numbers
Dear reader,
As someone who grew up in a small town—a tier-3 city, to be precise—I had always romanticised the allure of the big city. And among all the cities, none held my imagination quite like Mumbai. The city with an unbroken spirit, where dreams never let you sleep, and where every cosmopolitan cliché comes alive.
Last week, I found myself in Mumbai, eager to experience the vibrant culture everyone raves about. It wasn’t my first visit to the Mayanagri, but it was my longest stay. Now, I know many of you reading this either live in Mumbai or have been there often enough to roll your eyes at an outsider’s over-romanticised perspective. But for someone like me, coming from Bengaluru—a chill, laidback city with a pace that feels almost leisurely—Mumbai was a wake-up call.
Surprisingly, most of the clichés about Mumbai hold true: it really doesn’t sleep. From bars and eateries open till the wee hours to the ever-reliable vada pav stalls on every corner, the city offers countless conveniences that make its chaotic rhythm slightly more bearable. Yet, it’s not just the fast pace or the food that makes Mumbai stand out.
Walking through the colourful streets of Bandra, I couldn’t help but admire the Bollywood-inspired graffiti splashed across Portuguese-style homes. These brightly painted walls seemed to tell stories of Mumbai’s layered history—a small fishing village that evolved into a thriving port city under colonial rule, eventually becoming the nation’s financial and entertainment capital.
The tale of Mumbai is no less gripping than a Bollywood blockbuster. A city born of resilience, chaos, and ambition it leaves you breathless but undeniably inspired.
On to the best of Mint’s journalism from this week:
🔍 💵 Ketan Parekh, once celebrated as a prime mover of India's stock market, found himself implicated in a new scandal. Decades after being banned for a major 2001 market scam, Parekh is accused of using insider information to manipulate trades, profiting ₹38.7 crore. Additionally, a Singapore-based trader linked to him earned ₹27.07 crore in commissions, leading the Securities and Exchange Board of India (Sebi) to seek a return of ₹65.77 crore from those involved. The investigation, lasting over two and a half years, involved deep dives into financial records, phone data, and digital communications across multiple platforms. Sebi’s detailed probe revealed Parekh’s use of various tactics to disguise his involvement, including using multiple mobile numbers registered under different names and employing pseudonyms. Neha Joshi takes an in-depth look at the 30-month investigation undertaken by the market regulator, which ended up with Parekh’s implication.
🏰 2024 marked a significant increase in ultra-luxury real estate transactions in India, with Delhi-NCR, Mumbai, and Bengaluru seeing record deals for homes costing over ₹100 crore. Speaking to Mint’s Khushi Malhotra, Ritesh Mehta of JLL highlighted the growth in this sector, noting high-value transactions on Gurugram's Golf Course Road and South Mumbai's Malabar Hill. This surge reflects a robust confidence in ultra-luxury real estate as a stable investment. Data from Anarock Group shows that 99 ultra-luxury residential deals worth a collective ₹8,069 crore were closed over the past three years.
🇨🇦 With Justin Trudeau stepping down as Canada’s prime minister, the country's political landscape and international relations, including with India, are set for significant changes. Canada's parliament is in recess until March, delaying immediate political developments such as a no-confidence motion. Relations between India and Canada have been strained, particularly after Trudeau’s administration accused Indian agents of involvement in the killing of a Sikh separatist in British Columbia—a claim India has vehemently denied. Trudeau's resignation could herald a shift in Canada’s stance on key issues such as trade tariffs, climate change, and immigration, potentially steering the country away from its liberal policy framework. Shweta Singh, associate professor at South Asian University’s Department of International Relations, weighs in on the implications of Trudeau’s resignation for India-Canada relations.
🥕 India’s consumer goods companies are bracing for a tough third quarter with expected low single-digit revenue growth and margin contraction. Despite price hikes aimed at combating inflation, weak urban demand and a delayed winter have dampened the sector's performance. Suneera Tandon spoke to Nitin Gupta from Emkay Global, who told her that only a few companies like ITC, Marico, and Bikaji might report double-digit revenue growth. Marico has seen some support from rural markets and has raised prices on products like Parachute coconut oil to cope with rising costs. However, overall urban demand for packaged consumer products is expected to remain subdued for a few more quarters, with further price hikes likely as companies grapple with high input costs affecting essentials like soaps and edible oils.
📈 India's economy is forecast to grow at 6.4% in FY25, marginally lower than the Reserve Bank of India’s revised projection of 6.6%, according to government advance estimates. The estimated 6.4% growth is also the slowest since the pandemic years, when India's GDP contracted 5.8% in FY21. Despite the dip, India remains one of the fastest-growing major economies. Agriculture and construction have emerged as key growth drivers, even as private investment continues to remain sluggish, Rhik Kundu and Vaamanaa Sethi report. Looking ahead, increased government spending, particularly on public infrastructure, is expected to provide a boost to economic momentum, helping to offset challenges in the urban economy, which is grappling with high inflation and slow credit growth. The government also anticipates a modest uptick in private consumption, driven by robust agricultural output and potential improvements in rural incomes, signaling cautious optimism for the coming fiscal year.
💻 Infosys is stirring things up with a new "Be The Next Business Incubator" programme, designed to ignite innovation among employees and transform their ideas into viable business opportunities. Open to employees at all levels and locations, the initiative invites teams of three to pitch digital ideas that align with the company's business model and strategy. Proposals will be reviewed by an Incubator Council comprising leaders from various domains within Infosys. Selected ideas will receive full funding and necessary resources to bring them to life, though the exact funding details remain undisclosed. This initiative underscores Infosys' commitment to fostering growth and empowering employees to drive creative solutions, reports Jas Bardia.
💱 Major players in Indian industry, including Hindustan Unilever, Bharti Enterprises, and Tata Group, are refocusing on their core business areas. This strategic shift aims to sharpen their competitive edge, reduce debt, and enhance shareholder value. Devarajan Nambakam of Goldman Sachs told Priyamvada C. that high-interest rates and the potential to unlock value from mature investments are key drivers of this trend. He anticipates this focus on core strengths will persist well into 2025 as companies navigate a rapidly evolving economic landscape. For example, Adani Enterprises recently divested its stake in a joint FMCG venture, and Bharti Enterprises exited its food business. Such moves allow companies to redirect resources toward their primary operations, where they foresee the greatest growth and stability.
🏭 The Indian government is rolling out a strategy to transform the northern region into a manufacturing hub, aiming to boost economic growth and reduce regional disparities. Spearheaded by the Prime Minister's Office, the initiative focuses on driving significant infrastructure investment and implementing policies to promote regional manufacturing equity. At the heart of the plan is the ₹10,037 crore Uttar Poorva Transformative Industrialization Scheme (UNNATI—2024), a decade-long programme designed to incentivize industries across North India. Key regions such as Kanpur, once hailed as the 'Manchester of the East,' and Jammu & Kashmir, known for its rich crafts and agricultural produce, are central to this effort. The initiative seeks to leverage the untapped potential of these regions to address the stark economic divide between India's northern and southern states—a disparity that has led states like Karnataka, Kerala, and Tamil Nadu to question the fairness of federal financial allocations.
♋ Noida-based Astrotalk has skillfully brought the ancient practice of astrology into the digital age. The platform connects over 41,000 astrologers with more than 450,000 users. Astrotalk’s financials reflect its success, with revenues soaring to ₹651 crore and profits reaching ₹100 crore in a single fiscal year. The company’s growth has been fuelled by a $30 million venture capital injection, pushing its valuation to $300 million. However, challenges have also emerged. A recent shift in the platform’s revenue-sharing model has sparked discontent among astrologers. While earnings were initially split equally, Astrotalk now retains a larger share of revenue from the initial minutes of consultations, reports Samiksha Goel. This change has left some astrologers feeling like they’re operating in a call center, incentivized to prolong conversations to secure fair payouts. The pressure has strained relationships, with some astrologers walking away, frustrated by what they perceive as a shift from genuine astrological guidance to profit-driven dynamics.
🫀 The sudden passing of Amit Banerji, founder of Table Space, from cardiac arrest has sent shockwaves through the startup community, highlighting the toll of intense pressure and poor work-life balance in the industry. Banerji’s death is the second such incident in a month, sparking renewed concern about the health and work habits of startup founders. Industry leaders, including Kunal Bahl of Titan Capital and Snapdeal, are urging a shift toward sustainable work practices, emphasizing that long-term business success depends on prioritizing health, reports Sneha Shah. Recent high-profile cases, such as Rohan Mirchandani of Epigamia and Ambareesh Murty of Pepperfry, who also succumbed to fatal health issues, underscore the risks of high-stress startup leadership. In response, there is a growing call for founders to adopt a healthier balance between their professional and personal lives. Some are turning to therapy, while others are being encouraged by boards and investors to take breaks, pursue hobbies, and focus on downtime to avoid burnout.
That's all for this week. I hope you have a pleasant weekend!
If you have any feedback, want to talk about food, or have anything else to say about our journalism, write to me at siddharth.sharma1@htdigital.in or reply to this mail. You can also write to feedback@livemint.com.
Best,
Siddharth Sharma
Community Editor
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First Published:11 Jan 2025, 09:09 AM IST
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