Business
CAIT urge government to take action against e-pharmacy companies, including Amazon, Flipkart, Reliance
Training its guns on e-pharmacy companies, Confederation of All India Traders (CAIT) on Monday strongly raised the issue of malpractices being conducted in online pharmacy trade.
CAIT alleged that primarily Pharmeasy, Medlife, 1Mg, Netmeds (now owned by Reliance Group), Amazon (foreign company owned by Amazon) Flipkart (owned by foreign company Walmart) are conducting business practices in contravention of provisions of The Drug & Cosmetics Act, 1940 and misusing the e-commerce landscape by operating on rock bottom prices with 30 per cent-40 per cent discount and free shipping.
It’s a case of capital dumping in these e-pharmacies by foreign behemoths which is proving extremely detrimental to the future of the lakhs of crores of small chemists across the country . The retail chemists are the last mile connectivity and emergency provisioning is ensured by brick-and-mortar retailers who in turn also provide livelihood to millions of retail pharmacies, their families and employees
The CAIT has once again reiterated while its demand for issuance of a fresh press note in lieu of Press Note 2 of the FDI policy to make Indian e-commerce trade free from all glitches and a competitive level playing field for all stakeholders and formation of a Regulatory Authority to monitor and regulate e commerce business in India.
CAIT National President B.C. Bhartia and Secretary General Praveen Khandelwal said that mushrooming of e-pharmacy is causing huge hardships to the retail chemists and distributors in the wake of anti-competitive practices like capital dumping and deep discounting leading to predatory pricing. Brick and Mortar medicine retailers, including retail chemists and distributors are the first points of contact for needy patients across the country. E-pharmacies with their financial backing by large foreign players/funds have started disrupting brick and mortar retailers due to the unmatched and often unsustainable pricing.
They further said that It is important to note that sale of prescription drugs and medicines through online medium is illegal. The legal regime, under Drugs & Cosmetics Act, 1940, does not permit home delivery of prescription medicines for which a prescription “in original” is required.
Bhartia and Khandelwal said that the e-pharmacies like Pharmeasy and Medlife indulged in deep discounting on their platforms by giving a flat discount of 30 per cent. To capture the market even further, an additional cashback of 20 per cent is extended to customers with free shipping. Effectively, this translated to a whopping discount of around 40 per cent-45 per cent with free shipping.
Predatory Pricing is done with the sole intention of eliminating the market competition. E-pharmacies have indulged in predatory pricing immediately after the lockdown by offering a 25 per cent discount on medicines and an astronomical 75 per cent discount on wellness products, a market that had begun expanding after the recent Covid-19 pandemic. While even a 25 per cent discount on medicines is capable of distorting the market, a 75 per cent discount on a market that had just begun to swell up is daylight robbery since it not only erodes the customer base of traditional retailers but also creates an unhealthy competition, one that is unsustainable in the long run.
Bhartia and Khandelwal said that by using consumer data, which is otherwise not available to traditional players, e-pharmacies like Pharmeasy & Medlife (owned by Dharmil Seth and investment from Temasek, etc.) and 1Mg (Prashant Tandon, investment from Sequoia and now slated to merge in Tata Group) Netmed of Reliance, Amazon and Flipkart have offered a minimum discount of 30 per cent at the start of the month and approximately 40 per cent discount at the end of the month to cater to the analysis and resultant trend that spending reduces end of the month.
The CAIT has demanded that beside general e-commerce where rules and policies are being flouted at a high magnitude level, the e-pharmacy has become another trade which is being targeted by these heavily funded companies to capture and monopolised at the cost of uprooting of lakhs of chemists and medicine traders across the country. Therefore, immediate intervention of the government is required to stop this menace.
Business
Railways completes trial run on J&K’s cable-stayed Anji Khad Bridge
New Delhi, Dec 26: Indian Railways has successfully carried out a trial run of a tower wagon on the Anji Khad Bridge, the country’s first cable-stayed rail bridge, located in Jammu and Kashmir’s Reasi district.
The achievement is a major step forward in enhancing railway connectivity in Jammu and Kashmir, with services expected to commence in January 2025.
Railways Minister Ashwini Vaishnaw shared a video of the trial run on the social media platform X, highlighting the progress of the crucial project.
“The trial run on the Anji Khad Bridge, a key component of the Udhampur-Srinagar-Baramulla Railway Link (USBRL) project, has been successfully completed,” according to the Ministry of Railways.
Completed last month, the Anji Khad Bridge is an engineering marvel featuring a single pylon that rises 331 metres above the riverbed. It is supported by 48 cables on its lateral and central spans and stretches 473.25 metres in total length. The viaduct measures 120 metres, while the central embankment spans 94.25 metres.
This is the second-highest railway bridge in India after the Chenab Bridge, which is the highest in the world at a record 359 metres above the riverbed. Both bridges are part of the ambitious USBRL project aimed at increasing connectivity in Jammu and Kashmir.
The USBRL project stretches across 272 kilometres, of which 255 kilometres have already been completed. The remaining portion between Katra and Reasi is expected to be completed by the end of this month.
The Udhampur-Srinagar-Baramulla Rail Link (USBRL) is a 272 km railway project that connects Jammu and Kashmir to the rest of India. It is considered one of the most challenging railway projects in the Indian subcontinent.
The project will reduce travel time between Srinagar and Jammu from six hours to 3.5 hours. The railway projects have been constructed after overcoming natural challenges such as extreme temperatures, major earthquake zones, and inhospitable terrain.
Prime Minister Narendra Modi is expected to flag off the Vande Bharat train to provide a fast link for passengers travelling between Kashmir and Delhi in January 2025.
Business
Indian telecom industry’s revenue doubled in 5 years, Bharti Airtel biggest gainer
New Delhi, Dec 25: The revenue of India’s telecom industry increased 8 per cent (quarter-on-quarter) to Rs 674 billion (13 per cent growth year-on-year) in the second quarter of FY25, mainly driven by tariff hikes, according to a new report.
Driven by three rounds of smartphone tariff hikes, India’s quarterly telecom revenue has almost doubled (up 96 per cent) since September 2019, implying 14 per cent five-year industry revenue CAGR, according to the report by Motilal Oswal Financial Services Ltd.
Given the consolidated market structure in the Indian telecom industry, higher data consumption, lower ARPU, and inadequate returns generated by telcos, “we expect tariff hikes to be more frequent. We build in 15 per cent tariff hike in December 2025.”
The telecom industry’s average revenue per unit (ARPU) has almost doubled from Rs 98 in September 2019 to Rs 193 in September 2024, driven by tariff hikes.
However, as a result of sharp tariff hikes, the industry’s subscriber base at 1.15 trillion in September 2024 is lower than September 2019 levels (1.17 trillion).
Among telcos, Bharti Airtel has been the biggest beneficiary of tariff hikes with a 2.2 times increase in implied ARPU, registering a 17 per cent five-year CAGR.
“We believe the significant improvement in the data subs proportion has also been a key driver for Bharti’s industry-leading ARPU,” said the report.
Over the reporting period from 2019-2024, Bharti’s revenue has increased 2.6 times, implying 21 per cent five-year revenue CAGR, with incremental revenue market share significantly higher at 48 per cent.
“With Vi’s (Vodafone Idea) large capex plans, we believe the pace of market share gains may slow down. However, RJio and Bharti are still likely to continue gaining market share at Vi’s expense, in our view,” the report noted.
Business
AI to generate new revenue streams in 2025, innovate business processes: Experts
New Delhi, Dec 25: Enterprises will reimagine business processes and value streams with AI agents in 2025, while taking into consideration the practical and ethical challenges, industry experts have said, adding that it will be the year of small language models, scaled reasoning and business value realisation.
In the coming year, AI agents will generate new revenue streams, innovate business processes across industries, boosting profitability, operational efficiency, and customer experience.
“Humans will increasingly take on roles where they set up agentic teams, plan agentic workflows, and validate work done by AI Agents,” said Sandhya Arun, Chief Technology Officer, Wipro.
According to Mohammed Rafee Tarafdar, CTO of Infosys, in 2025, we will see a lot of AI initiatives that are currently under rollout, to be scaled across enterprises, and businesses will start realising some measurable business value along the lines of cost, growth, better experience, and risk protection.
“We are seeing increased investments in scaling inferencing which improves the reasoning capabilities, thereby enabling the agentic systems to be used to eliminate tasks and re-engineer the processes,” Tarafdar mentioned.
As the small language models become more specialised and can deliver higher accuracy at lower cost, the adoption of these models in enterprises is likely to accelerate.
Prativa Mohapatra, Vice President and Managing Director, Adobe India, said that fuelled by a healthy enterprise business, vibrant creator community, and upcoming technological advancements, 2025 represents a year of extraordinary opportunity.
“We are committed to leading the way in harnessing generative AI’s potential responsibly and empower businesses and creators alike, setting new benchmarks in personalised customer experiences and content creation while upholding trust and transparency through our content authenticity programmes,” she noted.
The idea of software-defined capabilities, which originated with cloud technology, has now evolved across various machines like vehicles and robots.
“In 2025, software defined machines will be powered by AI and ML and make informed decisions. We will witness an increase in autonomous machines with over-the-air (OTA) updates,” added Arun.
Autonomous industrial robots will proliferate, and software-defined medical devices will evolve towards autonomous preventive maintenance and self-healing with minimal human intervention and down time.
Augmented analytics will enable citizen users to gain access to intelligent insights from ready-to-use data visualisations for faster and informed decision making. Data marketplaces will grow across industries and industry ecosystems to unlock new revenue streams, said experts.
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