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Term of Week

In Focus

Opinion

Personality

Tech World

Hedge Funds | 7

FlashBattery |13

Rajeev Chandrasekhar |12

Investor Activism | 4

MARCH 15, 2015 | A FINNICHE INITIATIVE

Reducing Import Duty

On Gold | 2

Disclaimer: FinXpress takes no responsibility for the opinions expressed in the magazine.

With the whole IMT is preparing for Convocation 2015 which is scheduled on 18th of this

month, the students are also eagerly waiting to listen to Mr. Rahul Bajaj who would be

chief person for this years’ convocation.

Club FinNiche releases its weekly magazine FinXpress, with the In Focus talking about

the ‘Reducing Import Duty on Gold’. The Opinion gives an overview of ‘Investor

Activism’.

The term of the week describes ‘Hedge Fund’, a process to decide which long term

investment to make. Do have a look at the market section, Tech world which brings to

you about Flash Battery and Personality of the week, Rajeev Chandrasekhar.

Club FinNiche welcomes any comments, suggestions or criticism regarding the

magazine. Please do write to us and share your ideas.

Happy Reading!

Regards

The Editorial Team

Club FinNiche

March 15, 2015 | Volume 38

Reducing Import Duty on

Gold

Investor Activism

Hedge Funds

Rajeev Chandrasekhar

Flash Battery

- By Shikha Sharma

As per data released by the

Commerce Ministry this month,

The gold shipments in

February jumped 48.78

percent on a year-on-year

basis.

India is the largest importer

of gold, which is mainly

utilised to meet the demand

of the jewellery industry.

Government cuts import levy on gold and

amid the first fortnight of the month, the tax

esteem on transported in gold was altered at

USD 393 every 10 grams and on silver at USD

549 every kg. The import levy quality is the

base cost at which traditions obligation is

resolved to counteract under-invoicing.

The administration has sliced import tax

esteem on gold to USD 375 every 10 grams

and silver to USD 512 every kg taking after

powerless worldwide value patterns. Amid

the first fortnight of the month, the duty

esteem on foreign gold was altered at USD

393 every 10 grams and on silver at USD 549

every kg. The import tax worth is the base

cost at which traditions obligation is resolved

to anticipate under-invoicing. It is modified

on a fortnightly premise considering

worldwide costs. The abatement in duty

esteem on transported in gold has been

advised by the Central Board of Excise and

Customs, as per an authority proclamation

discharged toward the end of last night. Gold

in New York, which regularly sets value

incline on the residential front, declined from

a high of USD 1,162 every ounce and is as of

now controlling at USD 1,158.60 every ounce.

Silver excessively has dropped, making it

impossible to USD 15.64 every ounce. In

February, gold imports had bounced by 49

percent to USD 1.98 billion when contrasted

with the year-back period, while silver

shipments shrunk by 60.47 percent to USD

121.42 million in the same period.

Gold is the second-biggest import thing for

India after petroleum. Higher gold import bill

unfavorably influences the nation's present

record shortage (CAD). The legislature has

been more than once asking individuals to

stop from purchasing gold and rather put

resources into other sparing instruments. In

spite of facilitating in gold import standards,

the shipments had dropped strongly in

December 2014. The December import figure

remained at USD 1.34 billion, around one-

fourth of the amount in November. According

to information discharged by the Commerce

Ministry not long from now, the gold

shipments in February bounced 48.78 percent

on a year-on-year premise. India is the biggest

shipper of gold, which is basically used to

take care of the demand of the adornments

business.

In November 2014, the RBI had facilitated

confinements on gold imports by scrapping

the dubious 80:20 plan. Under the 80:20

standard, put set up in August 2013 to check

high gold inflows that was augmenting the

current record shortfall, no less than 20

percent of the foreign gold must be

obligatorily sent out before getting new parts.

Government has been more than once asking

individuals to halt from purchasing gold and

rather put resources into other sparing

instruments. Higher gold import bill

antagonistically influences the nation's present

record shortfall (CAD).

The information further uncovered import of

silver shrunk by 60.47 every penny in

February to USD 121.42 million. Imports of

petroleum, unrefined and its items shrank

55.49 percent. Gold request in the nation is

relied upon to ascend to 10% this wedding

season, which commences not long from now

and proceeds till ahead of schedule June

contrasted with a year-back period, helped by

a critical fall in its costs, exchange insiders say.

Bachhraj Bamalwa, executive at All India Gem

& Jewelry Trade Federation, said the business

expects gold request in the gems portion to

climb 5-10% over a year ago. "Value fall will

unquestionably be a driver for adornments

deals," he told ET.

Costs of the yellow metal fell by Rs 1,000

every 10 gm in the previous one week to

around Rs 26,400 on March 9. Goldsmiths feel

Indian buyers have ended up flexible to high

import obligation administration and are no

more sitting tight for a cut in obligations.

Diamond setters began restocking for the

wedding season after a fall in imports in

February as the exchange was expecting a

drop in import obligation from 10% to no less

than 4% in the Union Budget. The exchange

now expects this repressed interest to be

unleashed as buyers no more expect a

diminishment in the import obligation soon.

In spite of the fact that figures are yet to be

declared, exchange appraisals gold imports of

40 ton in February, down from around 60 ton

in January. Strict import controls and high

obligations cut down India's gold request by

13.5% in 2014 to 842.7 ton as gold venture

interest dove by more than half, as indicated

by the World Gold Council. Gold adornments

request in the nation climbed 8% last year to

662 ton from 612.7 ton in 2013. Speculation

request, then again, drooped to 180.6 ton from

362.1 ton amid the same period, in sharp

complexity to the worldwide pattern of 2%

general development. Bamalwa of All India

Gem & Jewelry Trade Federation said the

speculation interest will stay less as

universally gold costs have fallen. On

Monday, however, gold edged up in

worldwide markets, yet it stayed close to a

three-month low as the US dollar hit a 11-year

high after solid US employments report

helped desires that the Federal Reserve would

soon build premium rates.

Somasundaram PR, MD (India) at World Gold

Council, said the basic driver of gold request

in India is the social fondness towards gold

coupled with a rich local shrewdness about

the financial aspects of gold in a family unit

portfolio. Social changes and new resource

classes have on a very basic level strengthened

the part of gold as a key diversifier and as a

long haul support against expansion. "Interest

of this nature can't be reshaped by supply

checks and higher duties. While India can't

expand its nearby supply through mining, it

unquestionably can build supply through

reusing," said Somasundaram. "Presently just

0.5% of aggregate stocks are reused in India,

yet the late strategy declaration presenting a

standard India gold coin, securities and

another monetisation conspire rightly try to

address fluctuated purchaser inclination

connected to gold, which are likewise liable to

effect reusing," he said.

- By Mukul Gupta

"We believe the best way to ensure improved

performance at PepsiCo is to separate global

snacks and beverages, putting the future of

each business in the hands of empowered and

focused management". This was written in the

letter posted to the management of Pepsico by

Trian Partners headed by the Activist Investor

Nelson Peltz. Investor activism, which started

in 1980s - then called ‘Corporate Crusaders' -

has grown in importance with more and more

companies targeted every year, be it Bill

Ackman’s public failure at JC Penney, or Carl

Icahn’s argument for a buyback at Apple, one

of America’s most loved and successful

companies.

An activist shareholder uses equity stake in a

company to put pressure on its management.

The trick is simple. Buy upto 5% stake in the

company and get a seat at the Board. Once

comfortable, make demands that would in all

belief increase shareholder value. In case the

Board refuses, fight a proxy battle. If the

demands seem legitimate to other

shareholders, chances of winning are high

post which a new 'friendly' Board would be

appointed. In case the proxy fight is lost,

nevermind. Liquidate and look for another

target. This is the standard way an investor

activism exercise works.

While much of investor activism is practiced

outside the public eye, there has been a

consistent increase in public actions, whereby

activists' play a key role in changing either the

strategy or the governance of companies they

have invested in. This has resulted in growing

acceptance of the many policy changes that

the activists are seeking to effect. Post the

financial crisis of 2008, activist activity has

increased, and new money is beginning to

flow into activist funds mostly in search of

returns which are uncorrelated with other

asset classes. The Assets Under Management

(AUM) of this asset class are quickly growing

and returns are consistently outperforming

the average hedge fund. In 2013, according to

Schulte Roth & Zabel, public actions of

activism were launched at a total 237

companies worldwide including giants like

Apple, Hess and Proctor & Gamble.

What Attracts Activist Shareholders?

N o t u n e x p e c t e d l y , f u n d a m e n t a l

underperformance is the most likely

weakness that triggers an activist investor

campaign. Activists most often focus on

underperformance relative to competitors,

rather than absolute declines in performance.

Other factors include poor revenue growth,

lagging shareholder returns vis-a-vis the

industry peers in the previous two years, and

an increasing gap in margins relative to

competitors. Recurring restructuring charges

and large cash balances are also strong

indicators of looming activism. According to

McKinsey & Company however, company’s

gap in consensus earnings and executive

compensation are not significant indicators of

activist interest. In certain sectors, it has also

been observed that those companies where

the breadth of the corporate portfolio has a

market value which is lower than the sum of

independent businesses are attractive targets.

An activist shareholder uses

an equity stake in

a corporation to put public

pressure on its management.

Financial Goals (increase of

shareholder value through

changes in corporate policy,

financing structure, cost

cutting, etc.)

Non - financial Goals

(disinvestment from

particular countries, adoption

of environmentally

friendly policies, etc.).

Major Activist Trends in FY 2013

According to Schulte Roth & Zabel, the year

2013 saw an increase in activism activity with

237 companies being targeted worldwide as

compared to 218 in 2012. Out of these, more

than 70% of the total cases were observed in

the United States, followed by 18% in Europe

and only 6% in Canada. Sectors like

Technology, Services and Basic Materials were

the most preferred and comprised of around

75% of the total investor focus. Also, 2013 saw

twice the number of companies targeted with

a market capitalisation of more than $10

billion than the previous year. A total of 42

such big size investments including UBS and

Celesio were made in 2013 compared to only

23 a year ago. This is leading to an increased

perception that size no longer matters for

activism.

According to consultancy firm McKinsey &

Company, three out of every four activism

campaigns start collaboratively, but half of

those eventually turn hostile. This suggests

that management teams should focus not just

on whether to accept activist proposals but

also on how they engage with an activist.

On the performance side, activist hedge funds

enjoyed a strong year in 2013. They beat the

MSCI World Index by over five percentage

points in the period of bullish growth.

According to Activist Insight’s Activist Index,

which is made up of 30 activist funds, a return

average of 21.7% was achieved over the first

three quarters of 2013, which compared

favourably to S&P 500 Index’s 17.9% and

MSCI’s 16.3%. Therefore, there is plenty of

evidence to suggest that with investors closely

watching the performance of activists, money

will continue to increasingly flow into activist

funds in FY 2014. Gregg Feinstein of Houlihan

Lokey believes that activism has been grossly

undervalued by the market in general.

According to him it has been proven to

increase value for shareholders.

Defence Techniques to Counter Activism

Accompanying the rise in activism has been a

burgeoning defence industry in the US which

is experimentation with new bylaws designed

to frustrate activists. Although bylaws vary

widely from organization to organization,

they generally cover topics such as how the

Board is elected, how the meetings of

Directors are conducted, officers the

organization will have and description of their

roles and responsibilities. However, it remains

to be seen how long lasting their impact will

be. Some of these defence mechanisms include

the following:

13D Pills: In US, an investor is required to file

either form 13D or 13G when an ownership

threshold of 5% shares in a publicly traded

corporation is reached. An activist investor

files a 13D whereas a passive investor who

does not intend to influence the management

or wage a proxy contest is required to file 13G.

However, many companies now include a

special clause with filing a 13D which

prevents activist investors from increasing

their holdings beyond 10%. The same

threshold is 20% for passive investors who file

13G. This clause prevented Bill Ackman from

taking a significant ownership position at Air

Product & Chemicals.

Tax Pills: This is a slightly more obscure use

of poison pills. It takes advantage of tax

regulations and helps companies keep activist

ownership below the 5% threshold. These tax

pills trigger increased burdens for investors at

this level, rather than the traditional 10%. This

is because a change of ownership would mean

tax-beneficial operating losses are abandoned.

In order to avoid an activist campaign,

company executives should run a pre-emptive

audit to evaluate their company’s

performance and review their strategic and

operating plans in that light.

An unbiased and rigorous pre-emptive audit

that helps in identifying weak spots and

evaluates all alternatives can help in keeping

activists at bay and bring forth many

opportunities for value creation.

The Road Ahead

In 2013, many big name activist funds

including Pershing Square, Third Point,

Clinton Group and ValueAct saw their stock

picks work well for them. All saw their stock

choices increase by an average annualized

value of 75% or more. Analyst forecasts

suggest strong growth in activism activity in

the US, but a continuing weakness in Japanese

and eurozone equity markets. Activists are

testing these markets with certain optimism

and also because of the growing acceptance of

increase in shareholder value via this asset

class. In case these regions enjoy an upswing

in growth, the activists will be the first to

enjoy the benefits. In India also, anecdotal

evidence suggests that activism by both

foreign and domestic investors is on the rise.

However, so long as the Government has

large interests in companies and the legal

system is slow and onerous, activism would

continue to remain hindered in India.

The fundamental question however still

remains – do activist investors save companies

by influencing incompetent management and

increasing shareholder value or do they play

corporate crusaders who intend to make short

term gains by shaking things and finally

exiting at attractive multiples. As a follow up

to the discussion however, it certainly seems

the trend is moving from the latter to the

former. It also seems highly likely that this

year will prove to be ‘the end of the

beginning’ phase of an invigorated age of

investor activism.

Hedge Funds are the alternative investments

consisting of pools of underlying assets that

are used for hedging, speculation and

arbitrage. They use derivatives of high

leverage in International as well as domestic

market to earn active returns or alpha for

their investors. They are setup as private

investment limited partnerships and are

mainly applicable for sophisticated investors

like institutions or individuals with

significant assets and are not offered to

general public.

Hedge funds are similar to mutual funds on

the grounds of possessing similar kind of

pools of underlying assets. But unlike Mutual

Funds, they are relatively unregulated and

can be invested on a wider scale of securities.

They can be considered as mutual funds for

super rich.

Hedge Fund managers tries to invest on

securities that have a higher rate of return and

that mitigates or hedges maximum amount of

risk, but they have to also foresee the risk

whether the security will be able to perform

as per expectation, failing to which may cause

huge losses. Fees charged by managers is 1 to

2% of the amount invested, plus 20% of the

profit earned.

Some of the Hedge Fund strategies are—

Equity Market Neutral

Identification of overvalued and

undervalued stocks, in turn

neutralizing portfolio’s exposure to

market risk by undertaking short and

long positions.

Convertible Arbitrage

Exploitation of mis-pricings in

convertible securities.

Fixed Income Arbitrage

Identification of overvalued and

undervalued FI bonds.

Distressed Securities

They are applicable to companies

tending towards bankruptcy.

Merger Arbitrage

Takes advantage between the current

market price and price after merger of

the security.

Hedge Equity

They are mainly used for assets under

management.

Global Macro

Trades in currencies, futures, options

in line with global market

Emerging Markets

Focuses on emerging and less mature

markets.

Funds of Funds

Is a fund invested in number of

underlying hedge funds.

Once the Investment strategy is formulated

by the Hedge fund manager, he generally

tries to measure the risk to which the fund is

exposed. Based on this, he decides which of

the risks are acceptable and which needs to be

hedged. On a later stage he uses derivatives

to mitigate the unacceptable risks.

- By Shreyans Dhariwal

A fund, usually used by

wealthy individuals

and institutions, which is

allowed to use aggressive

strategies hat are unavailable

to mutual funds,

including selling short,

leverage, program trading,

swaps, arbitrage and

derivatives.

They have low regulations

as compared to Mutual

funds

Have wider range of

securities for investment.

Investment done with prime

motive to gain higher rate of

return with mitigation of

maximum amount of risk.

Different hedge fund

strategies are used.

INDIAN MARKETS

With the selling pressure intensifying during the closing stages, indices in the Indian

equity markets went further down and closed the day deep in the red. Thus, the BSE-

Sensex ended lower by around 427 points (down 1.5%). Similarly, NSE-

Nifty succumbed to all round selling and was quoting lower by 128 points at closing, or

1.55 %. S&P BSE Midcap and S&P BSE. Small cap indices were hurt relatively lesser but

still closed 1.3% and 1.6% lower respectively. Prominent losers that dragged down the

key indices were FMCG, banking and capital goods sector.

BSE SENSEX

CNX NIFTY

Open High Low Close

SENSEX 29134.93 29,183.76 28,448.48 28503.30

NIFTY 8,844.05 8,849.75 8,631.75 8647.75

COMMODITIES

EXCHANGE RATES

INTERNATIONAL MARKETS

Commodity Unit Rs / Unit % Change

Gold 10 grams 25890 0.91

Silver 1 kg 35533 0.59

Crude Oil 1 bbl 2866 -4.05

INR/ 1 USD 62.67

INR /1 EURO 66.42

INR/ 100 JAPAN YEN 51.60

INR / 1 POUND STERLING 93.16

Open High Low Close

NYSE Comp 10,784.09 10,784.09 10,677.59 10751.02

NASDAQ 4,885.54 4,904.47 4,842.80 4871.76

S&P 500 2,064.56 2,064.56 2,041.17 2053.40

FTSE 100 6,761.07 6,777.77 6,713.50 6740.58

CAC 4,997.94 5,010.80 4,969.47 5010.46

DAX 11,845.90 11,903.33 11,744.93 11901.61

NIKKEI 225 19,119.58 19,335.80 19,042.25 19254.25

SSE 50 2,494.34 2,532.15 2,477.40 2495.28

Hang Seng 23,808.97 23,918.71 23,790.83 23823.21

Land Acquisition Bill passed in Lok Sabha; faces sterner test in Rajya Sabha

The contentious bill was passed by the lower house of Indian Parliament on Tuesday. There

were nine official amendments made to the original bill that was proposed by the ruling

government( BJP). This was done in order in to win over allies such as Akali Dal and Shiv

Sena. The opposition which is led by the congress party staged a walk out when their

proposed amendments were not accepted by the BJP. The bill has been labelled as “Anti

Farmer” by the opposition. How the industry reacts to the nine amendments which have

been made, remains to be seen.

The government agreed to include mandatory employment to at least one member from the

affected families of a “farm labourer”, which was one of the proposals by the opposition. The

government rejected amendments to consent clause and social impact assessment. Rural

Development Minister, Birender Singh, dismissed allegations made by the opposition and

said that “ By bringing the bill, my party and our government want to make sure that the

farmers get a chance to progress and be a part of the overall development of the country.”

IMF revises India’s growth forecast to 7.2% for current fiscal year

The International Monetary Fund labelled Indian Economy a “bright spot” on the

international economic landscape. It asked India to take steps to revive the investment cycle

and accelerate the structural reforms promised in order to achieve 7.2% growth. The new

forecasts have been made on the basis of revised methodology adopted by India earlier in the

year. The new method was termed as “Puzzling” by RBI governor, Raghuram Rajan, who

has worked with IMF in the past. The IMF believes that the revival of Indian Economy has

been helped by positive policy actions of the government and lower prices of oil in the global

market. IMF also said that the country is well equipped to cope with volatility of

international markets( External Shocks).

RBI Issues new norms for NPA sales

In a move that would give boost to banks which are facing issue of rising NPA’s, the central

bank has allowed such lenders to reverse the extra provision on sale of bad debts to their

P&L account. This is valid only for transactions that took place before 26 February,2014.

Most of the banks, including private players, have been dealing with non-performing assets

and lower profits since they have to make space for bad loans. This move by the RBI would

look to give incentives to the bank to recover fair value in respect to non-performing assets.

The notification also said that “ The quantum of excess provision reversed to profit and loss

account will be limited to the extent to which cash received exceeds NBV of the NPA’s sold.

Shiv sena abstained from

voting while TRS and BJP

staged a walkout. Government

does not have a majority in

Rajya Sabha. Reaction of

Analysts and Industrialists

remains to be seen.

Previously IMF had predicted a

growth of 5.6% for the current

year.

Government Expenditure on Aadhaar project is Rs 5630 crore

The parliament was informed on Friday that the public expenditure on the UID project

currently stands Rs 5630 crore. In total 78.65 crore Aadhar numbers have been generated till

date under the scheme. The approved budget for the UID scheme for the period 2009-2017 is

Rs 13,633.22 crore. The UID project came into existence in January 2009. One of the main

objectives of the project was to eliminate fake and duplicate ID’s.

Planning minitser, Rao Inderjit Singh, also said that people can register their complain on the

official website of UIADAI and there is also the facility of downloading E-Aadhar from the

website. The planning minister also said that a bill ,introduced on December 2010, regarding

providing legal status to UIDAI project is pending in Rajya Sabha.

Foreign Firms producing in India might get to sell online

Foreign companies who decide to set up manufacturing facilities in India, would be given

access to the fast growing online market in India. This initiative is a part of government’s

plan to attract foreign capital in the manufacturing sector. The Department of Industrial

Policy and Promotion, has floated a cabinet note to implement the policy announced by the

government in it’s first full budget. The cabinet note that has been floated explicitly defines

manufacturing in order to prevent any misuse of the policy. To ensure consistency and to

avoid tax issues in future, government would use the same definition of manufacturing as

given in the income tax law.

Once this policy is implemented, manufacturers would be able to sell directly to the

customers through the online platform. This will be provide a significant incentive to foreign

players to invest in India. The policy is in line with government’s vision that a manufacturer

should be able to sell his goods to the customer in whatever way he wants. This move will

help players like FabIndia, which manufactures 70-80% of the merchandise it sells to the local

Indian local market but it is registered as a single brand retailer. Though 100% FDI is allowed

in B2B E– Commerce, foreign direct investment is not allowed in companies selling directly

to the consumers.

Ratan Tata picks up stake in Paytm

Paytm revealed this week that Ratan Tata has invested an undisclosed amount in the mobile

commerce company. The investment in the firm is in his personal capacity. Analysts have

said that though Ratan Tata’s investment in companies like Paytm, Snapdeal and Urban

Ladder is not substantial but it shows the perspective which the investors have towards the

growing E-commerce market of India.

An engineering graduate, Mr. Chandrasekhar

is a product of Manipal College of

Engineering, he has done his masters from

Illinois Institute of technology, United States.

He is currently the member of parliament

from Karnatka.

Entrepreneur

He is first and foremost a Venture Capitalist,

being an engineering graduate, he pioneered

a startup in college called Softtech. He then

developed his own venture capitalist reform

called Jupiter Capital which has more than

$600m of investments in diverse fields such as

media, infrastructure and aviation. In terms

of investment in the relative investment

scenario in the current venture capitalism

scenario, Jupiter Capital stands out and is one

of the poles in the industry. His own venture

which he founded in 1991 is called BPL

Mobile, which was valued at $1.1billion in

2005.

Mr. Rajeev Chandrasekhar was also awarded

an honorary doctorate degree by

Visveswaraya Technological University,

Belgaum, Karnatka.

Member of Parliament

In April 2012, he was re-elected to the Rajya

Sabha for a second six year term as an

Independent Parliamentarian representing

Karnataka. He has advocated for governance

reforms, institution building, Internet

freedom, national security, welfare of the

Armed Forces Personnel and sustainable city

building of Bangalore and Karnataka. He has

also served as the President of FICCI in 2007.

He initiated a series of seminars on

Governance reforms including a Conference

on Administrative Reforms and Ethics in

Governance which brought the Government

and industry together.

He is an outspoken critic of the recent

proposal to the UN for control of the internet

through a 50 member inter-governmental

body.

Personal Life

He was born in Ahmedabad, Gujarat,

to Indian Air Force Officer, Air Commodore

M. K. Chandrasekhar and Mrs. Valli

Chandrasekhar. He is married to Anju

Chandrasekhar, daughter of BPL

Group patriarch TPG Nambiar. They have a

son, Ved, and a daughter Devika.

1964

Manipal Institute of Technology

Illinois Institute of Technology

Indian

1994: Founded BPL Mobile

2005: Founded Jupiter Capital

2007: President of FiICCI

2013: Awarded the honorary

doctorate by VTU.

Every person using a smartphone should

have experienced how their phone’s battery

have troubled them. In fact the biggest

bottleneck the technology wasn’t able to solve

till today is smartphone’s battery. Israel-based

start-up Storedot is saying that they can

change this. No, they did not create another

battery which will last for a week or so.

Strictly speaking they are not at all working to

increase the battery life. They are working on

the other side of the problem i.e. the charging

time. The battery life of these batteries is

similar to old batteries but the changing time

i.e. the time taken by the battery to charge

fully in drastically reduced. It just takes 30

seconds now.

At Microsoft’s Think Next Conference in Tel

Aviv, StoreDot unveiled its battery charging

prototype. StoreDot used a very popular

phone to give a demo on their new battery

technology, Samsung Galaxy S4. Galaxy S4’s

battery was charged on 30 seconds—an

exceedingly brief time in a world dominated

by chargers that can take hours to replenish

battery life.

It uses the technology called super capacitor

technology, it charges faster than any other

traditional Li-Ion battery (LiB) battery. This

combination of fast charging and high power

has paved the way for the new-generation

FlashBattery.

Despite the technology's seeming promise, it

won't be available anytime soon.. The

company hopes to start producing consumer

ready chargers in late 2016.

It's not clear when the devices might actually

hit store shelves.

- By Mohana Krishna Kummara

According to StoreDot’s CEO

and founder Dr Doron

Myersdorf, the fully functioning

prototype that fits inside the

phone for commercialization

will be ready the second half of

2016 and by early 2017, it will

be on the market.