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BUSINESS EYE JUNE 17, 2022 | The Indian Eye 36

New challenges, new models: Businesses advised

to tackle impacts of financial crisis, war and Covid-19

RBI Governor points out that the number of unicorns, or new businesses valued at over $1 billion, is rising very fast

OUR BUREAU
Mumbai

usinesses are facing multiple
challenges posed by shocks
Bsuch as the global financial
crisis, COVID-19 pandemic, and now
the war in Europe and the success of
Indian entrepreneurs in the coming
years will depend on how quickly and
efficiently they are able to make nec-
essary adjustments in their business
models, Reserve Bank of India (RBI)
Governor Shaktikanta Das said on
Thursday.
“If Indian businesses aspire to
remain competitive and attain world-
class status, it is important that they
gear up to make the right investments
sooner than later. I believe the pan-
demic-induced changes in strategy,
management, operations and pri-
orities are going to stay,” Das said
while addressing ‘iconic week of Aza- RBI Governor Shaktikanta Das speaks at the Central Board of Indirect Taxes and Customs (CBIC) program in Mumbai on Thursday (ANI)
di ka Amrit Mahotsav’ celebrations
organized by the Central Board of these are things which should always excessive risks in their balance sheets. realistic strategic assumptions, par-
Indirect Taxes and Customs in Mum- be kept at the back of one’s mind for RBI Governor noted that the ticularly excessive optimism about
bai. “Therefore, the success of Indian long term sustainability of any busi- common characteristics of some in- capabilities, growth opportunities and
entrepreneurs will depend on how ness,” he said. appropriate business models or strat- market trends which may lead to poor
quickly and efficiently they are able to Das suggested that businesses egies that are observed include, inap- strategic decisions that imperil busi-
make necessary adjustments in their should avoid having an aggressive propriate funding structure; building ness model viability; and over-focus on
business models,” he said. short-term reward-seeking culture asset-liability mismatches which are business considerations with neglect of
Das said policy actions taken by without considering the build-up of highly risky and not sustainable; un- risk, control and compliance systems.
the Government and the Reserve
Bank since the onset of the pandemic
in early 2020 have mitigated the disrup- DATA CENTER CAPACITY SEES A HUGE JUMP
tive effects of the pandemic while re-
storing market confidence and ensur- ata centre capacity in India ty Data Centre providers. Given the STT India, are also expanding their
ing a quick revival in economic activity. is estimated to post a five- segment’s potential, in the Budget capacities.
“Alongside, businesses are going Dfold jump in the next five 2022-23, Finance Minister Nirmala “In the past few years, there
through a redefining phase and are years and attract an investment of Sitharaman granted infrastructure has been a flurry of investments in
adapting to the new realities emerg- around Rs 1.20 lakh crore during status to the data centre industry. the data centre segment, resulting
ing from the pandemic,” he added. this period, as per a recent report All these factors ensure that the data from the confluence of many fac-
RBI Governor pointed out that by rating agency ICRA. centre business in India continues to tors. The favorable regulatory envi-
the number of unicorns, or new busi- The Indian data centers in- boom at a steady rate. ronment and the push toward the
nesses valued at over $1 billion, is ris- dustry has been clocking impres- Many Indian organizations have digital economy have been key driv-
ing very fast. These start-ups are sup- sive growth for the last five years, started investing in Indian data cen- ers for the growth in this segment.
ported by a new ecosystem of angel and the coming years are expected ters to cater to the increased de- Pockets such as Navi Mumbai, Hy-
and venture funding, incubators and to be even better. Around 3,900- mand. Both Hiranandani Group and derabad, Chennai, Bangalore and
accelerators - as well as new patterns 4,100 MW of capacity is estimated Adani Group have been making stra- Noida have gained immensely from
of consumption in society. to be added. The sector will attract tegic moves in the space. the proliferation of data centers.
“A word of unsolicited advice to investment to the tune of Rs 1.05- There is also significant interest It is expected that the data
these young entrepreneurs and start- 1.20 lakh crore, the report said. In from foreign investors such as Am- centre market in India will contin-
ups: they should constantly evaluate the last few years, large hyper-scal- azon, EdgeConnex, Microsoft, Cap- ue to grow at a favorable pace and
the build-up of risks and vulnerabil- ers like Amazon web services, Goo- itaLand, and Mantra Group have will touch $4 billion in the next 3-4
ities in their businesses. I recognize gle, Microsoft, Facebook, IBM, started investing in Indian Data Cen- years,” said Vinit Dungarwal, Di-
that many of them may already be Uber, and Dropbox are outsourc- tres. Even existing players in the seg- rector at AMs Project Consultants
doing it and risk-taking is a part of ing their storage needs to third par- ment, such as NTT, CtrlS, Nxtra and Pvt Ltd.
their business model, but nonetheless,

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