In an article titled “Tata can restore public faith in India inc” by Himangshu Watts (a journalist with Times Group), there are some juicy information about the current worries of Indian corporate moneybags.
“the image of the billionaires has taken a severe beating. As a result, politicians are under no pressure to take steps to help troubled businesses, fearing that the public will suspect that something murky is going on.”
So it is only a matter of image and what the public will suspect. As long as you manage the image, anything goes to fill the coffers of billionaires with more money.
“The common man tends to believe, wrongly [?!], that billionaires are villains who have made their fortunes from daylight robbery of public money.”
But, the author fails to explain what is wrong in believing that billionaires are villains? They have indeed filled their moneybags by daylight robbery of workers hard work and from looting public money.
“This is why the metropolitan and cosmopolitan electorate of Delhi, which gained a lot from liberalisation [?!], had no problems with the Aam Aadmi Party’s wild allegations against captains of Indian industry.”
Himangshu seems to be talking about himself when he says “gained a lot from liberalisation”. Otherwise, the metropolitan and cosmopolitan public with any practical sense agree that the allegations against captains of Indian industry, wild or not, are valid.
Then Mr. Watts states that “not long ago, most Indian respected the corporates” for ‘quality telecom service’, ‘customer-friendly banking’, ‘toll roads that were a pleasure to drive on’, ‘superior entertainment on radio and TV’, ‘classy airports’, ‘reliable petrol pumps’, ‘efficient ports’ and ‘healthy returns from equity investments’. Now, we have no doubt that Himangshu talks about himself when he says Indian public. The majority of Indian public does not invest in equities, does not fly around the world, or drive a cart on toll roads.
“This good will [?!] has soured in recent years due to mega-scams during the previous government [?!], high-profile IPOs where people lost money, unscrupulous builders who have left customers hight and dry, poor road builders who charge heavy tolls for dug-up roads, and some corporate black sheeps who wilfully defaulted on loans.”
In other news, Flipkart lightens cart to reduce burn rate. To infuse minimum fresh capital till new investor arrives, aims to save $150-200 million by December 2017 to achieve 80-100% growth and not to take up 40% space in new campus. Will take up 1.2 million sqft as opposed earlier plan for 2 million sqft.
Further bad news in corporate world in the shape of “Cognizant cuts FY16 revenue guidance 3rd time this year”. The company also said it had identified $5 million (Rs 35 crore) of potentially improper payments and that certain members of senior management had been aware of the payments.