Week 2

The Monopoly King 😤

July 18, 2020

Good Morning,

Welcome! I hope you have your “Subah Kee Chai” ready and you're excited to read your weekly 10-minute digest. 

This week saw the breakdown of the world's 9th richest man and also India's richest man, Mukesh Ambani, and his wide range of connections and investors. It also saw more speeches from Prime Minister Modi with plans to digitalize the Indian economy. Lastly, our newsletter got a new section, called the "Sports Section" which highlights some of the top Indian sports stories. I hope you enjoy your newsletter. 

Now let’s get into the news.

Markets

Both equity markets jumped in value between Monday and Friday ending the week positively.

sat as some of the top gainers on Friday, the last trading day for the week. On the other hand, Infosys, TCS, and Tech Mahindra were among the top losers. Apart from the equity markets, the price of gold saw a steady decline throughout the week, with crude oil sitting in the red as well. 

In addition, the number of coronavirus cases is still rising around the world. As a result, Reuters reported that the globe will collectively face an

due to expenditures to prevent the further spread of the virus. The global corporate debt is predicted to jump by 12% to $9.3 trillion by the end of the year. 

The Ambani effect

Mukesh Ambani's Monopoly

With a recent boost in foreign and domestic investment,

challenging the future plans for Amazon, Walmart, and Zoom who are seeking to enter the Indian market. Mukesh Ambani over the past 5 years strategically built his empire to place such a strong foothold in the global market. Reliance Jio, which launched four years ago, dethroned veteran Vodafone and Bharti Airtel to become India's most popular telecommunications company. In addition, Reliance's new JioMart is set to compete directly with US-based Amazon and Walmart's Flipkart by creating a platform for small creators/businesses to connect directly with consumers. One of the key advantages the Ambani family holds is the tight relationship with the Indian Government. As a result, regulatory and licensing procedures are a lot more lenient towards Reliance as compared to their rivals Amazon and Flipkart, who face strict regulatory measures in the Indian market. Lastly, Reliance is also set to launch JioMeet which allows users to host video meetings competing directly with a well-known platform called Zoom. 

 

The Ambani team

Apart from a number of domestic investors, Reliance Industries and Reliance Jio, in the past months

. Recently, Google and Facebook confirmed investments towards the digital branch of Reliance. Through Facebook-owned Whatsapp, which is highly used in India, Reliance JioMart will be able to directly connect with consumers. In addition, Reliance has also partnered with 45 top brands including Tiffany & Co, Burberry, Jimmy Choo, etc. to provide a wide range of products on their digital market. 

Zoom out:

Attracting large foreign investors will further strengthen Reliance Industries as a big competitor in the global market and will also boost future foreign direct investments into India proving beneficial for the economy as a whole. 

Reliance Jio

The list of investors keeps getting bigger. In early June, Reliance Jio also attracted large investors such as Saudi Aramco, Vista Equity Partners, Silver Lake Partners, KKR & Co, and General Atlantic. On Wednesday, Mukesh Ambani stated that Reliance Industries has created its own

, which will be ready to launch next year in collaboration with Google, who will aid in developing affordable smartphones compatible to the new 5G technology. 

Big picture:

Mukesh Ambani's agenda to make India "2g mukt" (free from 2g) is heading in the right direction, as he wants every Indian to enjoy high-speed internet connections at an affordable price. 

Not all positive...

In early June, Reliance Industries signed a $15 billion dollar deal with Saudi Aramco to boost Reliance's foothold in the oil-to-chemical (O2C) sector. However, not even the richest Indian man was able to escape the slowdown caused due to the novel coronavirus as the deal between

. The deal did not meet the original timeline, and as a result, has been postponed with the aim to complete the progress by early 2021. 

Development, Development, Development 

Prime Minister Modi 

On Wednesday, Prime Minister Modi addressed the

via video conferencing highlighting the need for collaboration. As tension rises at the border between India and China, Prime Minister Modi is strengthening India's relationship with the western powers. At the summit, PM Modi called for an action-oriented collaboration to be implemented in a short time period to curb the economic challenges resulting due to COVID-19. In addition, after 13 years of collaboration, India and the European Union finally sealed a civil nuclear cooperation agreement as well. Lastly, the summit also discussed the long term goal to tackle climate change by promoting renewable forms of energy. 

The India-EU Summit was not the only virtual conference Prime Minister Modi attended on Wednesday, as he addressed the Digital Skills Conclave as well. Celebrating

Prime Minister Modi called for the younger generation of India to "skill, reskill and upskill" to stay relevant in the rapidly changing business and technology environment. The Skill India Mission, which was launched five years ago, created infrastructures for individuals to develop and acquire new skills. Lastly, PM Modi highlighted the potential opportunities for Indians to capitalize on in the healthcare sector as global demand for good healthcare is surging.

Digitization

For the first time in the fourth quarter of 2019,

(INR 10.57 lakh crore) exceeded ATM cash withdrawals (INR 9.12 lakh crore). This was a monumental moment in Indian economic history as it was the first step towards a digital economy. As of now, ATM withdrawals reduced a further 5% to (INR 8.66 lakh crore) and digital payments valued at (INR 10.97 lakh crore). The lockdown, as a result of coronavirus, helped speed the process of transferring payment methods online as cash became the last resort for a number of businesses over fears of the virus spreading. Bankers are confident the progression will only get better as the public realizes the ease and quickness of digital payments. 

Big Picture:

This transition into a rapidly growing digital economy fulfills the government's agenda to reduce "untaxed" money in the economy. In 2016, the demonetization of the 500 and 1000 rupee notes was a controversial step towards reaching this goal, however, the recent boost in digital payments will be beneficial for the Indian Government to reduce corruption in the economy.

Another sector aiming to improve its technology is transportation. The Minister of Railways, Piyush Goyal stated that railways are to become

making India the owners of the largest clean railways. Following on from last week, this project towards 100% electrification highlights India as a role model when transitioning to a renewable form of energy. 

  Foreign expansion

On Monday, Prime Minister Narendra Modi held a

to discuss a number of different topics. Google announced that it will be investing $10 billion dollars (INR 75,000 crores) into India over the next five to seven years, under the project title "Google for India". During the meeting, they discussed the new virtual work environments that individuals are facing as a result of COVID-19 and the range of technological advancements being made to adapt to the new situation. Securing Google as a key investor in India, Prime Minister Modi hopes to digitalize education, the economy, and a range of other sectors.  

Sports Section

The Deccan Controversy 

An

between the Deccan Chargers (a former IPL team) and BCCI finally came to a close with the arbitration judge passing in favor of Deccan Chargers. BCCI had terminated the Deccan Charger's contract in September 2012 over claims that the franchise was not paying their players and that the company was being mortgaged to lenders without informing the BCCI. The judge, CK Thakkar, ruled the termination illegal and asked for BCCI to pay Deccan Chargers INR 4800 crore by September end. 

Olympics

If the world was normal, we would currently be glued to our TV screens watching our nation's battle at the Tokyo Olympics, but unfortunately, times have changed, and the Olympics have been postponed till next year. This setback, however, has not prevented the

from continuing their training as they set to open their camp against New Zealand on July 24, 2021. The Indian hockey men's team is desperate to break their medal jinx next year at the Olympics as they hope to finish on the podium. Similarly, the women's hockey team will face the Netherlands on July 24, 2021. Despite the Olympics getting postponed, I am eagerly awaiting to see our national teams compete next year!  

Cricket is back soon!

Yes, you heard it right. Cricket is back soon! The BCCI is in talks of hosting the

, as lockdown measures in the country have reduced. Currently, the plan is to host the IPL at the end of September to mid-November, however, it will only go forward if it is safe to do so. The UAE has also become the top choice for the Indian Men's Cricket National Team to restart their training camp to prepare for their 2021 season and the IPL. While nothing is yet confirmed, the talks being held between the BCCI and the ICC show positive signs towards the return of cricket. 

Stay-at-Home Tips

While this may not apply to everyone, I thought today’s “Stay-at-Home tips” could be targeted at the individuals tirelessly working from home virtually. 

How to set up the ideal virtual environment?  

  • Have a computer and a good internet connection: Your PC or Laptop should have a good quality web camera, and a high-quality mic, to make sure everyone can see and hear you clearly. Also, having a good broadband connection will prevent your meeting from cutting out, and also allow everyone to hear what you are saying without facing any lag.

  • Don’t ignore aesthetics: Dress as if you were conducting/attending the meeting in real life. Wearing your Pj’s may seem comfortable, but it looks really unprofessional and also kills the mood. Your background should also be plain and away from any distractions, it would be embarrassing if you are hosting a meeting and your 3-year-old is playing in the background. Also, it is best to stay somewhere quiet to ensure you are not disturbed by any outside noise (such as cars honking). 

  • Choose the right software platform:This is a crucial decision and depends on what you are most comfortable with. My personal recommendations are Zoom, Microsoft Teams, or GoToMeeting. They are easy to use, safe, and can accommodate many people. 

  • Use virtual presentations and tools: Most video conferencing software allows you to share data with your class. Organizing PPTs, interactive workshops, and other digital activities will boost the morale of your meeting and ensure everyone is engaged.

Other News

1. Due to a rise in demand for hygiene products, Godrej is planning to grow its business

to widen its hygiene products portfolio. 

2. Tik Tok's Indian rival,

on Wednesday. That is almost double of what the video-making company had before the ban on Tik Tok. 

3. With heavy rainfall, the

got significantly worse claiming 4 more lives, and raising the death toll to 71. 

4. Telecom regulator Trai asked Vodafone, Airtel, and Idea to

as they believe it was being done at the expense of users who opt for cheaper tarrif plans. 

5.

, the founder of Microsoft, has high hopes for India's pharmaceutical industry as he believes India will be able to supply COVID-19 vaccines to the entire world. 

Quiz

A common riddle but let’s see if you guys can get it! 

What comes once in a minute, twice in a moment and never in a thousand years? 

Get thinking!

See you next week!

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See you next week!

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Quiz Answer: the letter 'm'

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Written by: Adnan Bahrainwala (Founder of Subah Kee Chai)