Manthan 2018- Day 2: Arthneeti

Arthneeti, an intra-college event where the students take up the role of the finance minister and present the Union Budget, was conducted as part of Manthan 2018. The event was conducted in three rounds, each one being an elimination round. The first round was an online quiz on finance, economics and budget. The top 12 teams from the first round went on to the second round in which the teams had to present their analysis of the Union Budget 2018. The top 5 teams from this round went into the final round of Arthneeti where they donned the hat of Finance Minister and presented a sector-specific budget for the next 5 years based on a set of objectives and targets that the teams chose for their respective sectors. The event was judged by Ms. Mitali Chitre, Principal at Baring Private Equity Partners India, Mr. Kishor Baghri, Sr. VP and portfolio manager at ING Investment Management Pvt. Ltd and Mr. Gaurang Trivedi, an independent senior consultant with over twenty-eight years of experience.

The top five teams which presented the sector-specific budgets in the final round were Chennai Normal Kings (Industrial Production), Bong Finatics (Telecom sector), Vikings (Agricultural sector), Fin Champs (Infrastructure sector) and Chanakya (Automobile sector). The teams were given 10 minutes to present their budgets and explain the rationale behind their decisions. In the budgets presented by these teams, there were some great ideas ranging from focussing on skill development and increasing the contribution of the manufacturing sector towards the GDP to digitization and automation of the agricultural sector. Each presentation was followed by a Question & Answer session with the judges. The teams were grilled by the judges on the details of their analysis and the students impressively managed to defend their ideas before the judges.

Chennai Normal Kings were declared the winners of Arthneeti and the runners-up were Team Chanakya. The winners were facilitated during the closing ceremony.

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Manthan 2018: Day 2: “India as an emerging superpower”- Mr. Satyendra Nayak, Consultant, Spectrafin

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The second day of Manthan 2018 started off with a guest lecture from Mr. Satyendra Nayak, Consultant at Spectrafin. In his interactive session with the students, sir talked about India as the emerging superpower.

Mr. Nayak started by talking about the ancient history of India, how it has never been just a nation, but a continent. India is second largest in terms of the population today, and according to him, it is one of the greatest resources that we have.  It’s not just population, but also the demographic profile of India, which is growth conducive. 45% of India’s population is between the ages of 15-35; which is the productive segment of the population. This results in faster growth rate in the country’s GDP. In the last two decades, China was the highest growing nation in terms of GDP, he said. Overall GDP is affected by output produced and wealth of the nation. Also affecting the GDP of a country is the circular flow of income; the factor payments and factor income like wages and salaries, interest, rent, and profits. Thus, increased spending by the population generates more investment which leads to greater production and wealth creation. Assets such as houses, educational institutes, corporates, which last for a lot of years are wealth creations.

Apart from economic progress, Mr. Nayak talked about the agricultural, military, nuclear, infrastructure and qualitative or the spiritual strength of our country. He also mentioned that the vast natural resources of the country are a huge advantage to it. He called India the agricultural basket of the world but said that it will be underutilized as long as proper technological innovation is not initiated in rural segment of the population. In military strength, he said, we are the 4th largest, but we are also the largest importer of defense equipment. He declared that India is slowly moving towards developing the infrastructure to manufacture the equipment on its own. Indian railway connectivity is one of the largest in the world and thus, also adds to the strengths of the nation. Finally, he insisted that no territorial expansion is possible for a nation- economic progress is what makes a nation a superpower. And when a nation becomes a superpower and owns material prosperity and wealth, they pursue spirituality and religion. In this aspect too, India is superior as it has a storehouse of spiritual and religious knowledge, so much so, that many other major countries are now following our traditions and customs. Thus, he reiterated, India is emerging as, and is set to become a superpower soon.

Manthan 2018- Day 2: Samnidhy Investors Meet 2018

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On 11th March 2018, the Samnidhy Investors Meet for the year 2018, was held as part of the second day of the Annual Budget Conclave, Manthan 2018.

Samnidhy is a one-of-its-kind, student-management investment fund at TAPMI, and the only one to be legally registered in the country. It has completed 3 years of operation, since its inception in 2014. Comprising an official board of directors, it is regulated by strict guidelines and protocols and is mentored by an advisory board consisting of senior capital market professionals.

The Samnidhy 2017 Board of Directors included Mr. Abraham Mathew (CEO), Mr. Dhanyakumar M. H. (CIO), Mr. N. Phani Kumar (CRO), Mr. Dinesh Guna (CMO), Ms. Abhilasha Mathur (CHRO), and Ms. Bhargavi Mittal, the interim CIO. The team also comprised of 52 Analysts covering 13 sectors.

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Prof. Aditya Mohan Jadhav addressed the gathering and spoke about the roots of Samnidhy, and its evolution over the years. Ms. Mitali Chitre, Principal at Baring Private Equity Partners unveiled the Samnidhy Newsletter for 2017-2018.

This was followed by the formal presentation by the outgoing Board of Directors on the stock selection and review process. The key highlights of the presentation are as follows. For the year 2017, Samnidhy had a corpus of Rs. 7.9 Lakhs, wholly contributed by the students of TAPMI. The corpus has grown by 127% since their beginning in 2015, and the fund reaped in post-tax returns of 18.6% for the current year. They suffered a loss of 2.7% because of the bear market. The portfolio holdings mainly consisted of those in NBFC, Banks, Automobile, FMCG and Infrastructure sectors.

They also presented the key activities during the past year, such as weekly and quarterly publishing of the Samnidhy Newsletter, a periodic “Stock of the month” analysis shared with the TAPMI community, sector presentations by Samnidhy Analysts and guest interactions for Samnidhy Analysts.

This was followed by an interaction with the distinguished guests, who provided several suggestions ranging from analyzing and choosing stocks, to improving their marketing communication. The student investors also posed questions to the Board of Directors.

The meet ended with the introduction of the new Board of Directors for Samnidhy 2018 -19, consisting of Mr. Subhajit Bhattacharjee (CEO), Mr. Saket Golchha (CMO), Mr. Sanjay Sawhney (CIO), Mr. Akshay Salot (CRO) and Ms. Christina Sebastian (CHRO).

Manthan 2018 : Day 2: “Opportunities and Challenges of M&A” – Mr. Manas Datta, Group CFO, Wockhardt Group

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On 11th March 2018, Day 2 of Manthan 2018, Mr. Manas Datta delivered a guest lecture in our campus on the opportunities and challenges of mergers and acquisitions. He began his lecture by giving a brief overview of M&A and asked a few questions to the audience to understand their knowledge on the top as well.

Mr. Datta then showed some 2015 historical data points on M&A. About 52% of world’s M&A trade happens in USA and in India it’s just 1%. This shows the high competitive advantage USA possesses. He also showed Global M&A 2015 figures on relative performance by sector. The maximum M&A activity is happening in consumer products and technology. The least is in aerospace and defense.

He took the example of inbound and outbound data regarding M&A across the world. India amounts to approximately $8,911 million outbound and around $33497 million. India also clocked the highest M&A growth over a period of 5 years in 2016. India had an estimated M&A value of $48.5 billion in 2016 which was a huge increase from $27.7 billion on 2015. Mr. Datta then elaborated on the impact of geopolitical events on global M&A. Based on a survey by PE Outlook, the results showed that 41% of them believed in strategy M&A as the key driver of Global M&A, 26% believed in consolidation, 17% in attractive valuation and the rest on improved financial conditions.

Mr. Datta then focused on the visible global slowdown in M&A in 2018. The Q1 of FY 2018 showed a reduction in M&A activity across the world. Indian M&A declined from $15.8 billion in Q4 of FY 2017 to $6.8 billion in Q1 of FY 2018. These can be attributed to the Government policies across the world, changing market conditions and other external reasons. M&A according to him will definitely increase in healthcare industry in the future. That is a sector to watch out for. Pulling Rank by Baker McKenzie and Oxford Economics gives the ranking of a country based on its IPO and M&A activity. India ranks 33rd while Hong Kong is 1st and USA is 14th.

The motivations for M&A as an instrument for growth is critical but it is an iterative process. The key factors in achieving a successful M&A transaction are effective integration, economic certainty, accurate valuation, proper target identification, sound due diligence processes and stable regulatory and legislative environment. A way to refine M&A strategy is to map the business strategy to the M&A strategy, Setting target lists and Go/No-Go criteria, Aligning the executives and shareholders to the vision for the M&A strategy. A balance of these three results in an M&A success. He took a few questions from the audience bringing the curtains down on what has been a very informative and engrossing lecture. The audience was hooked throughout his lecture and gained valuable insights from him.

Manthan 2018: Day 1: Interactive Session by Mr. Vivek Law, Founder, CEO & Editor-in-Chief, The MoneyMile

Edited-2291On day 1 of Manthan 2018, students had an interactive session with Mr. Vivek Law. Mr. Law is the founder, CEO, and editor-in-chief of The Money Mile. He is also Co-president of Keiretsu forum in Delhi-NCR and Bangalore. Mr. Law started off his career as a crime reporter and since then have worked with organizations such as TV Today Ltd, Bloomberg TV, CNBC-TV 18, Economic Times, Business Standard and Financial Express as Editor. He has a rich industrial experience of 23 years and his areas of expertise include, but are not limited to, financial literacy, investigating economic crime, consumer protection, and the stock market.

Mr. Law began the session by giving a brief introduction about himself and shared some insights from his life’s journey. After working for 12 years in newspaper, Mr. Law shifted his career to magazine work and joined India Today, where he tried more writing on finance. In 2004, he again shifted the career path, this time to television. In 2017, Mr. Law launched a digital video platform for finance, called The MoneyMile. The aim of the session was to create a basic idea among the students about the importance and need for investment. Mr. Law said that the investment habits of the ultra-rich in the country are totally in contrast with the habits of the rest of India. 93% of the ultra rich invests in equities in comparison to others, which is one of the reasons why the rich always stay rich. Investing is not about telling one not to spend. Mr. Law expressed his opinion that one should start investing when they have the luxury of money, which is right from the time they start earning. Mr. Law said that, if there’s one thing that can change someone’s life, it is the compounding power of money. Unless and until the investment is not getting the power of compounding, it’s impossible to create wealth.

In the second half of the session, Mr. Law talked about the importance of setting a goal before venturing into investment. He asked the students to put the goals down, such as child education or health or retirement and choose a scheme for investment with these goals in mind. Mr. Law is of the opinion that one need not invest in multiple schemes. It’s always safe to choose one particular scheme or at times, a few select schemes across categories for investment. Talking about the risks associated with investing in equities, Mr. Law said that no one knows what is going to happen in the stock market and charting can help only to an extent. The trend in India is that we buy equities when prices are high and disposes of when the price is low or when the market falls. When one goes into the stock market without realizing how much risk they can take, loss occurs.

MANTHAN 2018: Inauguration Ceremony

Opening Ceremony CollageMarch 10th, 2018, the day was marked by the presence of esteemed guests from the industry, faculty and students who gathered at TAPMI for the inauguration ceremony of Manthan, the annual budget conclave. This year marked the 4th edition of the conclave which began on 2015. Manthan is a student run initiative that brings together Economists, CXO’s, Bankers, Regulators and Fund Managers to discuss recent trends, emerging issues, challenges and opportunities in the industry.
The two days of the conclave will witness exciting events from SMIC presentations by students at TAPMI, to Coffee Cookies and Conversations with respected guests, guest lectures and an event revolving around the theme for this year, A financial Clairvoyance.
Student Managed Investment Course also known as SMIC is the brainchild of Prof. Madhu Veeraraghvan, director Tapmi. It is a course where students are given real time money and they make investments in the real markets. During Manthan each team gets an opportunity to present a summary of their learning and the presentation is judged by an eminent panel of senior capital market professionals.
The events aim to create a platform for finance students to showcase their knowledge and network with senior industry professionals.
The inauguration ceremony began with the welcome speech by a member of Finance Forum followed by the lighting of the lamp and the invocation song.
Prof. Madhu Veeraraghavan couldn’t be present due to prior commitments, hence there was a message from him which was played on the screen where he spoke about the conclave and wished the students luck.
Next Prof. Raghunath Rudran addressed the audience and talked about the city of Manipal, the history of the institute and extended a warm welcome to all the guests.
We were honored to host esteemed professionals from the industry including Mr. Ashish Gupta, Ms. Mitali Chitre, Mr. Kishor Bagri, Mr. Satyendra Nayak, Mr. Manas Datta and Mr. Gaurang Trivedi.
Next Professor Meera Laetitia B. Aranha too had insights about the conclave and encouraged each student to learn from the experience.

Manthan 2018: Special FNS Session on “Private Equity” by Ms. Mitali Chitre, Principal at Baring Private Equity Partners India

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On 9th March 2018, Ms. Mitali Chitre took the special session of Friday Night Series (FNS) on the topic “Private Equity”. Ms. Chitre has eleven years of experience in private equity and is currently Principal at Baring Private Equity Partners India, one of the oldest PE funds in the country with the US $1.5 billion in assets under management. She leads investments in consumer durables, energy, logistics and capital goods sectors. Additionally, Ms. Mitali is the Chief Economist and head of Deal Origination at Baring.

Ms. Chitre started the session by sharing her experiences in the industry and how close the topic of the session, “Private Equity”, is to her heart. Before going into the crux of private equity, she gave a brief overview of what private equity is and the importance of venture capital funding in a business. Ms. Chitre then detailed the life cycle of a company which comprises of R&D, start-up, Take-off, Development, and Maturity & sale stages. She introduced the cohort of finance enthusiasts to the concept of Leveraged Buyout (LBO), which is still uncommon in India, but predominant in US and European countries. In US and Europe, 80% of private equity is LBOs and only the rest is growth capital. Next, Ms. Chitre discussed the functioning of a private equity firm, illustrating it with an example. She also discussed the difference between General Partners (GP) and Limited Partners (LP). Ms. Chitre explained that in private equity, the first stake to any claim goes to the Limited Partner and from the profit, the General Partner will first take out their fees and the rest is split between GP and LP.

The second half of the session was focussed on the various risks related to dealing in private equity, which include execution risk, currency risk, macro risk, geopolitical risk, technology risk, illiquidity risk and alignment of interest. Ms. Chitre said that currency risk is beyond the control of the firm and one of the easiest ways to overcome this risk is to invest in companies which are exporters, which earn dollar revenue, thereby creating a natural hedge in the portfolio. In order to avoid macro risk, she advised choosing the right sector rather than the right company for investment. However, in Ms. Chitre’s opinion, from the limited partner’s point of view, choosing the right manager to manage the fund is extremely crucial. She concluded the session by stating that, even with high levels of risk, LPs still invest in PE because they are getting paid for the risk that they take. She illustrated this through the trends in PE investments around the world and in India.

The highly insightful session saw the active participation of students, with Ms. Chitre encouraging the students to pose questions.