Startup
NCLT blocks Aakash’s attempt to change Articles of Association amid BYJU’S issue
The NCLT Bengaluru Bench on Wednesday ordered Aakash Educational Services Limited (AESL) not to implement any decisions made during an Extraordinary General Meeting on November 20 concerning the removal of Part-B of its Articles of Association.
The order was issued in response to a petition filed by Blackstone, a minority investor in AESL, through its entity Singapore VII Topco I Pte. Ltd. Blackstone argued that despite holding a 6.97% equity stake in AESL, they were “being deprived of all their rights”.
“In view of the above and in the interests of justice, this Tribunal directs the Respondents No.1 to 11 not to give effect to the resolutions, if passed, in relation to the Agenda Item No.8 in the Extra Ordinary General Meeting to be held on today i.e. 20.11.2024, till the disposal of the main Petition,” the National Company Law Tribunal (NCLT) order noted.
Respondents 1 to 11 include AESL, its CEO Deepak Mehrotra, Manipal Health Systems Private Limited, and J.C. Chaudhry. Agenda Item 8 involves a proposal to entirely remove Part-B of AESL’s Articles of Association (AoA).
The AoA are a set of rules that govern a company’s management and operations, and they define the rights and responsibilities of shareholders.
Lawyers representing Blackstone stated that although the investor’s stake in AESL has been reduced to 6.97% from the initial 38.5%, their rights under Part B are being proposed for removal, which violates Article 146. This article guarantees that the minority investor will retain its rights as long as it holds shares in AESL.
In 2021, BYJU’S acquired AESL for approximately $950 million, with around 70% of the deal paid in cash and the remaining portion meant to be adjusted against its parent Think and Learn Private Limited’s equity.
The Delhi-based test preparation firm is now said to be valued at approximately $700 million, with Ranjan Pai holding a 40% stake as the largest shareholder. In July, the Competition Commission of India approved the allotment of an equity stake in AESL to Pai’s Manipal Group.
In prior hearings, BYJU’S lenders and investors claimed the edtech’s former management sought to dilute their stake in AESL by changing the AoA, arguing that BYJU’S depended on AESL for its value.
The petitioners accused Manipal Group of collaborating with the company to violate their rights.
AESL and its shareholders argued the investors had no rights due to the failed Merger Framework Agreement (MFA) and ongoing arbitration, but the petitioners maintained they retained shareholder rights regardless of the MFA.
The case will be reviewed further on December 19 as the respondents’ lawyers acknowledged the notice and requested three weeks to submit objections. The petitioners will then have an additional week to respond, if needed.
Startup
Ricky Kej, Shobu Yarlagadda, and Biren Ghose on AI and tech integration in music and film industries
Technology shapes creative art forms such as music, film, and animation, notes Indian-American musical composer and environmentalist Ricky Kej, and Shobu Yarlagadda CEO, Arka Media Works.
Music and the way it has been created several changes and it has always depended on how people listen to music. From cassettes and CDs to streaming services such as Spotify and YouTube, the modes of consumption of music have also evolved over the ages, explained Kej.
The panelists Kej and Yarlagadda were speaking at the Bengaluru Tech Summit 2024 on Wednesday in a session ‘Lights, Camera & AI’, which discussed the integration of technology and Artificial Intelligence in the music and film industries. The session was moderated by Biren Ghose, a film producer and Managing Director, Asia Pacific, Technicolor Group.
Kej has won three Grammy Awards and has been nominated for a fourth for his album Break of Dawn at the 67th Annual Grammy Awards. Yarlagadda, a film producer along with Prasad Devineni founded Arka Media Works, a film production company known for its works in Telugu cinema industry.
While on cassettes, the listener would listen to all songs as recorded on it, the latest technology has enabled users to choose what they like to listen to. “Tech is great, it has democratised listening, but the negative is that there are related tracks on the sides so if the first five seconds are not captivating, the listener moves to another song,” Kej added.
As a result, composers create songs that try to grab the attention of listeners in this short span of time. Kej cited the recent song Tauba Tauba as an example of songs with catchy melodies that stay in the minds of the audience. Another trend, he noted, is that no song lasts more than 3-4 months— it trends for some time and another trend then takes over.
Similarly, the film industry has also seen a rapid evolution from heavy cameras to iPhone-shot movies. A common denominator in the two cases is tech adaptation and increased accessibility leading to democratisation of both creations as well as dissemination and consumption.
Before the arrival of modern tools, films were printed and shipped across India and the world in metal trunks and the journey took weeks. However, today, it takes only a click of a button for films to be transferred, which has helped in mass release of content.
“The consumption of content itself has evolved. While earlier it was just the theatres, it has moved to television and mobiles. From appointed viewing to anytime anywhere viewing, and the long-form content has become short-byte content to keep the audience constantly engaged is challenging. We do not have the luxury of time and the 2.5 hours of the film must keep them engaged, else they will quickly move to their mobile phones,” said Yarlagadda, who was a part of the Bahubali film production.
Karnataka is pouring resources into animation and visual effects. According to Ghose, the state has an active centre for excellence for animation visual effects, which is around 6-7 years old. And, the government plans to extend this initiative to four other cities in the state.
“There is a ground swell of talent that is coming from nooks and corners of states of the country and it will make it a great space to be in,” said Ghose. Technicolor Group provides visual effects, motion graphics, and animation services for the entertainment, media, and advertising industries.
“All of us in the industry are dancing at the crossroads of where creativity and technology meet,” he added.
Will AI make humans redundant?
While technology feels overwhelming at times, the differentiating factor will be human creativity and imagination, believes Yarlagadda.
Tracing the journey of technological integration in music, Kej explains that the early 2000s saw the introduction of Virtual Studio Technology Instrument, a plugin that allows for music creation on computers without the need for instrumentalists. “Violins, guitars and orchestra were all available on computers and were so authentic that it was impossible to discern the difference between real violins,” he said.
At the time, the technology sparked debate about whether musicians were needed in studios anymore. “Musicians who thrived brought creativity and improvisations to the table and took it to the next level,” Kej remarked.
Generic music for a horror movie can be AI-generated, but someone like Christopher Nolan in Oppenheimer would try and bring something new, amazing and unique and would require a human composer which will take the genre of music forward, said Kej.
Copyright issues and legal considerations go hand in hand with the integration of AI and technology in any field. This would imply that companies can not use animations of others to train their models but can use their own past ones to help with it, remarked the panellists.
Technology also helps in collaborations with people from across the world. For example, Mufasa the Lion King, which recently had its trailer released, has seen a substantial number of Bengaluru talent in its making, said Ghose.
Startup
Moglix acquires eco-friendly paper products manufacturer Khatema Fibres
B2B commerce company Moglix on Thursday said it acquired Khatema Fibres, a manufacturer of eco-friendly paper products.
Leveraging Khatema’s manufacturing expertise, Moglix plans to integrate and diversify its offerings, reducing lead times and ensuring efficient delivery, the company said in a statement.
With expansion plans in Uttarakhand, Moglix aims to support the state’s industrial growth by creating jobs, promoting skill development, and enhancing local manufacturing capabilities, it said.
“This acquisition not only expands our manufacturing footprint but enables us to deliver even greater value as we meet the dynamic demands of the market. Our commitment to supporting India’s vision of a Viksit Bharat by 2047 remains steadfast,” Rahul Garg, Founder and CEO, Moglix.
This acquisition will help Moglix to improve local infrastructure and open new market opportunities for farmers and artisans.
Founded in 1990, sustainable paper manufacturer Khatema Fibres, with an annual capacity of 50,000 metric tonnes, offers a diverse range of eco-friendly products, including speciality high-strength kraft paper, interleaving paper, machine-glazed and machine-finished papers, various tissue options, sublimation paper, virgin test liners, and food-grade packaging solution.
The acquisition complements Moglix’s recent launch of Next Day Delivery in over 12 cities, soon expanding to 40, the company added.
Startup
Zomato’s Chief of Staff role garners over 10,000 applications in just 24 hours
A day after
co-founder and CEO Deepinder Goyal announced an unconventional opening for a Chief of Staff (CoS), the role has already received over 10,000 applications.The surge in applications reflects a diverse mix of financial backgrounds, which Goyal categorised them as those who have all the money, those who have some of the money, those who claim they don’t have the money, and those who genuinely don’t have the money.
In a follow-up post on X, he stated that the application inbox will close at 2 PM IST on Thursday.
On Wednesday, Goyal shared a post on X that he is looking for a Chief of Staff, but with a unique catch: the candidate would receive no salary for the first year. Instead, the selected individual would be required to pay Rs 20 lakh as a donation to the company’s Feeding India initiative.
“Second year onwards, we will start paying you the usual salary (definitely more than Rs 50 lakh, but something we will only talk about at the start of the Year 2,” he added.
Goyal outlined his expectations for the role, stating, “Someone who is hungry, with common sense, empathy, and little experience (no conditioning/baggage), down to earth, with zero entitlement, willing to do the right thing even if it displeases others, has Grade A communication skills, and most importantly, a learning mindset,” he said.
He further said the job will offer 10 times more learning than a two-year degree from a top management school as the candidate will work with top CXO and stakeholders in consumer tech.
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