India is packing bags for summer holidays; Blockbuster elections for TV news
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, May 6, 2024. My name is Nelson John. Let's get started:
Summer's here and it’s vacation time in India, despite the sweltering heat waves and steep airfares. Air travel reached a daily peak in April and it looks like it's going to soar even higher through May and June. Interestingly, the extreme heat hasn't deterred travellers. Destinations traditionally known for their warmth are also attracting tourists. According to industry insiders, who spoke to Mint’s aviation correspondent Anu Sharma, this high demand has maintained elevated airfares. Aloke Bajpai, CEO of ixigo, said that there has been no decline in bookings due to the heat wave. In fact, flight searches for May have surged to record highs, with domestic and international flight searches for May and June up 20% and 70%. This uptick in travel is supported by a shift in the mindset of Indian travellers post-COVID, with more frequent travel becoming the norm, helped by the increase in airport accessibility and budget-friendly options.
Tata group’s Titan - the popular watchmaker - is gearing up to appoint a new CEO, marking only the fourth time in its 40-year history that it has done so. Currently led by C.K. Venkataraman, Titan is considering three internal candidates for his successor. Venkataraman, set to retire next October when he turns 65, took the helm on October 1, 2019. He has been granted an extension until the end of December 2025. According to an insider who spoke with Mint’s Varun Sood, the candidates in the running are Ajoy Chawla, CEO of the jewellery division which generates 81% of Titan's revenue; Suparna Mitra, CEO of watches and wearables; and Saumen Bhaumik, who leads the eyecare segment. Chawla appears to be the front-runner due to his significant impact on revenue, although Mitra being appointed would mark the first time a woman has taken the CEO role at Titan. Titan started as a watchmaker in a joint venture between Tamil Nadu Industrial Development Corp. and the Tatas in 1984 and has grown into a diversified lifestyle company. Despite the expansion into new business areas like eyewear and perfumes, jewellery remains its core revenue driver.
Having an opinion or protesting for a cause you believe in may cost you a job, if you are a student participating in protests across US universities. Recently, campuses like Columbia University, UCLA, Yale, University of Wisconsin-Madison, and University of Arizona have been buzzing with protests over Israel's actions in Gaza. The protests have taken an occasional violent turn, necessitating police intervention. However, the problem for students seems to be a much bigger one. Recruiters are taking notice of students participating in these demonstrations. Companies are wary of recruiting them, fearing they might struggle to integrate into a workplace where individual viewpoints are often superseded by that of the group, and one must know how to keep their opinions in check. Even Google's in the mix, having let go of employees who protested against its business deals over political issues. Mint’s workplace correspondent Devina Sengupta spoke to consulting firms responsible for hiring and HR heads who said they would like to maintain their distance from anyone with political leanings. One senior executive even said that the protesters would end up with a “blotch on their resume.”
2024 has truly been a blockbuster year for TV news channels, starting strong with the Ram temple consecration ceremony in January which spiked viewership and ad rates up to four times for a 10-second spot. Now, with the ongoing elections, channels are gearing up for even bigger gains. They've lined up everything from on-the-ground reporting and expert panels to interviews with key political figures and special election shows. It's all about covering every angle of the national and regional political scenes, and media experts are expecting a 25-30% bump in viewership during the two-month election period, ending on June 4. Advertising spending is anticipated to be massive, reports Mint’s media and entertainment correspondent Lata Jha. GroupM predicts spending of ₹1,500-2,000 crore across various media, with sectors like FMCG, automobiles, and building materials leading the charge in a bid to capture audience attention. Lata also spoke with executives from major news networks—all of whom expect a steady rise in their ad revenues.
When HDFC Bank introduced Eva, their AI-driven customer service chatbot, seven years ago, it was limited to answering simple queries. Today, Eva has evolved to perform complex tasks like issuing credit card statements and booking fixed deposits. As Eva learns from each interaction, the role of AI in customer service deepens, with HDFC Bank now automating a significant portion of their 30 million monthly interactions. The shift towards AI-driven solutions is evident across various sectors. For example, Voltas and Panasonic India are increasingly relying on bots for customer engagement, leading to a reduction in human-operated call centres. This transformation, fueled by advancements in AI, is reshaping the $120-130 billion global contact centre industry, projected to contract within the next few years. AI not only streamlines operations but also allows human agents to focus on more complex issues, potentially leading to considerable cost savings. However, the rapid adoption of AI poses challenges, including regulatory hurdles and the need for a human touch in certain situations. Despite the efficiency of AI, there's a growing understanding that a blended model, combining human expertise with AI efficiency, is essential. Mint’s Shelley Singh examines the rising use of bots for customer services and how their use could cut down on the outsourcing pie.
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Show notes:
Heat or not, Indians are flying high
Titan had just 3 CEOs in 40 years. Who will be the fourth?
The downside of campus protest: Wary employers
News TV kicks into high gear as elections rolls on
Customer care: How the bot army will shrink the outsourcing pie