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, December 16, 2024. This is Nelson John, let's get started.
If you're considering flying between India's major cities at the end of the year, you're in luck—airfare prices have significantly dropped. Data from ticket booking platforms indicates that airfares on key metro routes have decreased by as much as a third compared to last year. For instance, flights between Chennai and Kolkata have seen the largest reduction, with fares down by 28%, followed by Kolkata to Bengaluru with a 27% drop. This decrease in prices is partly due to lower demand for metro-to-metro travel during the holiday season, compounded by the economic slowdown which has affected spending habits. However, if you're planning to head to smaller towns or popular holiday destinations, expect to pay more. Daanish Anand reports on the dwindling airfare between metro cities, in today’s Primer.
The Indian government is considering a fresh capital infusion for its struggling public sector general insurers in the next fiscal year to bolster their operations and help them meet regulatory standards. This move, potentially involving ₹4,000-5,000 crore, is aimed at improving the solvency ratios of National Insurance, United Insurance, and Oriental Insurance, which currently fall well below the mandatory threshold. The solvency ratio, critical for insurers, measures the excess capital they hold over potential claims, with a regulatory minimum set at 150%. Despite some intermittent profits, these insurers have generally underperformed, with solvency ratios lingering in the negatives by the end of FY24. The government's potential capital support is contingent on the insurers demonstrating consistent improvement in financial metrics, Subhash Narayan and Rhik Kundu report.
In the branding world, IndiGo’s squabble with Mahindra and Mahindra over the "6E" label is a classic case of how a simple code can evolve into a significant brand asset. For over 16 years, IndiGo has used "6E" more than just as a flight code—it's become a key part of their brand identity, even cleverly marketed to sound like "sexy." The issue popped up when Mahindra decided to use "6e" for its new electric SUV. This led to a debate over trademark rights across different product classes—IndiGo’s trademark is registered for transport under Class 39, not vehicles - which falls under Class 12. Legal experts Gaurav Laghate spoke to, suggest that if IndiGo had also registered in Class 12, they might have had a stronger case. As it stands, the chance of customer confusion seems low. As both companies wait for a legal resolution expected next year, with Mahindra holding off on using "6e”.
After clinching the title as the youngest World Chess Champion ever, Gukesh Dommaraju's fame has quickly caught the attention of marketers looking for fresh faces to endorse their brands. Over just one weekend, companies from various sectors, including FMCG and gaming, were keen to align with the chess prodigy, reports Varuni Khosla. Gukesh now commands an endorsement fee ranging from ₹70 lakh to ₹1 crore annually. His historic victory over Ding Liren in Singapore not only broke a record previously held by Garry Kasparov but also elevated him to a status comparable to chess legend Viswanathan Anand. His triumph has rekindled interest in chess as a sport that's both intellectually rigorous and "cool," shifting its public perception significantly.
In a flourishing sector, India's table grape growers are reaping significant benefits, with profits soaring in good crop years. The country has risen to become one of the top five global exporters of table grapes, finding a strong market in high-standard international supermarkets. This success is primarily driven by meticulous adherence to quality standards demanded by Western consumers, such as specific berry sizes and sugar content. In the fiscal year 2023-24, India exported grapes valued at ₹3,461 crore, marking a 36% increase year-on-year and a significant growth over the past decade. Nashik, Maharashtra, has been pivotal in this expansion, contributing nearly half of the export volume, thanks to its conducive climate and expertise in viticulture. Sayantan Bera writes about how the grapes of Nashik, have been conquering the world.
