Artificial Intelligence (AI) is quickly reshaping industries across the globe, and India is eager to become a major force in this transformation. Understanding the importance of high-end computing infrastructure for AI advancement, the Indian government introduced the IndiaAI Mission. In March 2024, the Union Cabinet approved the initiative with a significant allocation of ₹10,371 crore to be invested over five years.
This ambitious initiative aims to provide affordable access to Graphics Processing Units (GPUs), essential for AI computations, by subsidizing 40% of their cost. This subsidy reduces the price to under one dollar per hour of GPU usage, making it the most cost-effective rate globally.
Talking about the global scenario, international tech giant Nvidia is also riding the AI tech boom as the company reported solid performance. Nvidia’s revenue jumped 78% to $39.33 billion in the three months ending in January 2025. Its profit also rose by 80%, reaching $22.09 billion. These numbers show that the demand for Nvidia’s A.I. chips remains strong.
Nvidia’s quarterly results surpassed Wall Street expectations, beating forecasts of $38.32 billion in sales and $21.08 billion in profit. For the current quarter, the company expects revenue to grow by 65% year-on-year to $43 billion. While this marks a slower pace compared to the previous quarter, it still exceeds analyst estimates by around $1 billion.
Last month, Nvidia lost $600 billion in market value in just one day. This drop happened because some investors started worrying about the future of the company. After the Chinese start-up DeepSeek claimed it developed its artificial intelligence (A.I.) systems using significantly fewer A.I. chips and at a much lower cost than other companies, it led to question Nvidia’s strong position in the A.I. chip industry.
Coming back to India’s AI future, the Government’s initiative to offer affordable GPU access has garnered attention from leading technology and telecom companies. Industry giants such as Google, Airtel, Tata Consultancy Services (TCS), and Infosys participated in a pre-bid meeting on March 26 for the second round of applications under the IndiaAI Mission’s GPU initiative.
Other notable participants included AMD, BSNL, Dell, Deloitte, Hewlett-Packard Enterprise (HPE), IBM, L&T, NetApp, Netweb, NTT, Oracle, Palo Alto Networks, Salesforce, ST Telemedia, Ola Krutrim, and Neysa. These companies are evaluating potential involvement in the project, though some may choose not to apply formally. The deadline for bid submissions in this round is April 30.
In the first round, which concluded on January 28 2025, the government empaneled ten companies, including Reliance Jio, Yotta, E2E, and NxtGen. These firms collectively offered 14,517 GPUs, surpassing the initial target of 10,000 GPUs. Other technically qualified companies from this round include CMS, CtrlS, Locuz, Orient, Tata Communications, and Vensysco.
Winners of the second round of the tender will need to either match or beat the lowest rates set in the first round. In that initial round, the average cost per AI compute unit stood at ₹115.85 per hour, while the rate for a high-precision unit was ₹150 per hour.
In March 2024, the Union Cabinet approved the IndiaAI Mission with a substantial budget of ₹10,371 crore allocated over five years. The primary goal of this mission is to establish a scalable AI ecosystem through public-private partnerships. A significant component involves creating a supercomputing infrastructure equipped with over 10,000 Graphics Processing Units (GPUs). These GPUs are essential for handling complex AI and machine learning tasks, offering faster data processing capabilities compared to traditional CPUs.
Expanding AI Horizons
Experts view the involvement of established IT companies in the IndiaAI Mission as a shift from a “Make in India for India” approach to a broader “Make in India for the World” vision.
They observed that the mission is now attracting a wider range of participants beyond just startups and data center providers, highlighting the growing involvement of IT/ITeS, BPO, and KPO giants that cater to global markets from India.
Government’s Commitment to AI
By subsidizing GPU costs, the government aims to provide affordable computing access to startups and researchers. Additionally, the mission supports firms building foundation models within the country.
Union Minister for Electronics and IT, Ashwini Vaishnaw, highlighted that India is working across five layers of AI: the chip layer, foundational model layer, application layer, data center and hyperscaler layer, and the talent layer. The goal is to develop three foundational models by the end of this year and have an indigenous GPU ready in the next three to four years.
India’s proactive steps in subsidizing GPU costs and fostering collaborations with major tech companies underscore its commitment to becoming a global AI hub. By building robust AI infrastructure and encouraging participation from both startups and established firms, the IndiaAI Mission is poised to drive significant advancements in the AI landscape, benefiting not only India but also contributing to the global AI community.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Leading logistics company Delhivery has announced its acquisition of Ecom Express for ₹1,407 crore in an all-cash deal. While the transaction is significant in itself, the story behind it makes it more compelling. Once valued at nearly ₹7,000 crore, Ecom Express is now being acquired at an 80% discount. This shift reflects a downturn for one company and the changing dynamics of India’s startup and logistics ecosystem.
Here’s a breakdown of the deal, its structure, the reasons behind the valuation cut, what it means for Delhivery, and the larger signals it sends across the industry.
The Deal: What’s on the Table
Delhivery will acquire a 99.4% stake in Ecom Express in an all-cash deal. The deal provides a complete exit to Ecom Express’s current shareholders, including global investors like Warburg Pincus, CDC Group (British International Investment), Partners Group, and the company’s founders.
Delhivery had previously invested in Ecom Express in 2017 through its fund, making this an acquisition and a full-circle return on an earlier strategic bet. This deal also provides Delhivery with an immediate expansion of service capacity, especially in regions where Ecom Express has already built strong infrastructure. It creates opportunities for streamlining logistics operations and boosting last-mile delivery performance.
The deal’s structure also reflects a growing trend of companies using stock options with cash to preserve liquidity while securing strategic acquisitions. For Delhivery, this is a capital-efficient way to expand aggressively without overstretching financially. Source: Economic Times
Why the Valuation Drop?
The detail that stands out the most is the steep markdown from a ₹7,000 crore valuation in 2021 to ₹1,407 crore in 2024. A number of operational and market realities contributed to this:
Ecom Express lost its largest client, Amazon, which pulled back a significant portion of its business.
The company saw the exit of key leadership, including co-founder and CEO T.A. Krishnan.
Revenue growth remained largely flat, failing to keep pace with competitors.
With mounting costs and a challenging funding environment, existing investors hesitated to provide further capital.
As investor confidence weakened and internal momentum stalled, Ecom Express faced limited options. The decision to sell to Delhivery was likely the most viable outcome, offering stakeholders a complete exit and some value recovery.
Furthermore, as the e-commerce logistics market evolved, Ecom Express struggled to innovate or diversify its services. In contrast, competitors like Delhivery leveraged technology and data analytics to improve efficiency and gain market share, creating a clear gap in strategic positioning. Source: Economic Times
For Delhivery, this acquisition isn’t just opportunistic—it’s strategic.
By acquiring Ecom Express, Delhivery gets:
Increased last-mile delivery capacity, particularly in Tier 2 and Tier 3 cities
Stronger rural reach, helping the company serve customers in underpenetrated markets
Higher shipment volumes, especially in the fast-growing e-commerce segment
Operational synergies through the integration of delivery networks, hubs, and technology platforms
It also offers cost optimization opportunities. With overlapping delivery zones and infrastructure, Delhivery can consolidate operations, shut redundant facilities, and optimize manpower.
This is especially important in a sector where margins are thin, and efficiency often determines profitability. Delhivery is aiming to become a long-term profitable logistics company, and this acquisition supports that direction.
The move also allows Delhivery to neutralize competition by absorbing a former rival. With fewer players vying for the same contracts and customer base, Delhivery will likely gain pricing power, better contract terms, and increased share-of-wallet from enterprise clients.
Revenue: Flat Growth vs. Upward Momentum
The operating revenue figures are key data points that explain the deal’s rationale. While Delhivery and Blue Dart posted steady growth between FY2023 and FY2024, Ecom Express showed only a marginal increase:
This flat growth underlines Ecom Express’s struggle to scale revenue in a rapidly expanding market, making Delhivery’s acquisition offer both timely and logical. Delhivery’s consistent revenue climb positions it as a consolidator with the financial muscle to absorb and revitalize underperforming players.
What This Means for the Industry
This acquisition isn’t just about two companies. It reflects a broader trend in Indian logistics and startup funding:
Consolidation is accelerating as market leaders buy out weaker or slower-growing peers
Profitability is being prioritized over high valuations
Private equity and venture capital are more cautious, especially in capital-heavy sectors
Publicly listed companies like Delhivery have an edge thanks to easier access to funding and deal-making tools
As investors increasingly demand returns and not just growth, companies are under pressure to rethink their business models. Asset-heavy firms like Ecom Express, without significant tech-driven differentiators or consistent revenue upticks, are becoming targets for buyouts rather than fresh capital.
What’s also becoming clear is that the logistics industry is no longer just about delivery; it’s about data, network intelligence, and the ability to adapt quickly. Companies like Delhivery that are betting on end-to-end integration and real-time tracking solutions are setting the pace for the future.
The Road Ahead for Delhivery
With the acquisition completed, Delhivery will begin integrating Ecom Express’s assets. This includes:
Unifying sorting centers, warehouses, and delivery fleets
Aligning technology platforms and back-end systems
Restructuring teams and roles for efficiency
Successful execution could lead to:
Lower cost-per-delivery through scale
Faster turnaround times
Better customer satisfaction metrics
However, integrations are never easy. Delhivery will need to carefully manage cultural alignment, system migrations, and operational disruptions to realize the benefits of this deal fully.
Conclusion
Delhivery’s acquisition of Ecom Express marks a turning point in India’s logistics story. It brings together two players in a rapidly evolving space but also highlights the hard truths facing startups today. The message is clear for founders and investors alike: valuations must be earned, not assumed.
As Delhivery strengthens its presence and works toward profitability, this deal could set the tone for more such consolidations in the near future. It also raises the bar for performance in logistics—where technology, efficiency, and adaptability determine who thrives and who exits.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
Why did Ecom Express agree to a sale at such a low price?
Due to operational struggles, leadership exits, funding constraints, and stagnant revenue, the company had limited options. A sale provided a clean exit for investors.
What does Delhivery gain from this deal?
Delhivery gets a wider reach, better infrastructure in rural India, and increased shipment volumes—all of which support its long-term growth plans.
Will Ecom Express continue to operate under its name?
No official announcement has been made, but full ownership suggests Ecom Express will likely be absorbed into Delhivery’s operations.
How did the market respond to the deal?
Delhivery’s shares saw a small increase post-announcement, indicating cautious optimism from investors.
What does this deal signal for the future of logistics in India?
It shows that growth alone isn’t enough. Companies must prove their ability to scale sustainably, manage costs, and deliver returns.
The effects of the US-declared sweeping tariffs were evident in the red zones that covered the market yesterday. However, positivity made a comeback today, 8th April 2025, and along with it brought a stock under the limelight- Bharat Electronics Limited (BEL).
BEL share price started the trading session with a jump of nearly 4% in the initial hours after the announcement of bagging a significant order from the Ministry of Defence (MoD). What was the announcement, and how did it affect the company’s share price? Let’s decode.
The Announcement:
The Navratna PSU, Bharat Electronics Limited, on 8th April 2025, announced that it secured an order worth Rs.2210 crore from the Indian Air Force. The order is to supply an indigenously developed Electronic Warfare Suite for the IAF’s Mi-17 V5 helicopters. The suite includes a Radar Warning Receiver (RWR), a Missile Approach Warning System (MAWS), and a Counter Measure Dispensing System (CMDS). According to the company’s exchange filing, the EW suite has been designed by CASDIC and DRDO and will be manufactured by BEL.
With this order, BEL’s total order inflow for the current financial year (FY25) is Rs.2,803 crore. A few other orders during the year that contributed to the order book were
14th March 2024: BEL entered a contract with Larsen & Toubro Limited (L&T) to supply 14 Communication and Electronic Warfare (EW) sensors and systems, which were agreed to be manufactured by BEL domestically. The contract was worth Rs.847.70 crore
12th March 2025: Rs.2,463 crore order from MoD for the supply of Ashwini Radars for IAF
Additionally, BEL signed another crucial contract worth Rs.593.22 crore with the IAF for the Akash Missile System maintenance services.
Effect Of The Announcement:
Over the years, every announcement of a new order or project by BEL has garnered a positive reaction from the market towards its shares. Even this time, the BEL share price reached an intraday high of Rs.288 and jumped nearly 4% in the initial trading hours after the announcement of the new IAF order.
As of 8th April 2025, the stock has given a return of 25.16% in the past year and 250.19% in the past three years.
Overview Of Bharat Electronics Limited:
Established in 1954, BEL is a leading Public Sector Undertaking (PSU) under the Ministry of Defence, specializing in designing, manufacturing, and supplying advanced electronic equipment and systems primarily for the defense sector. The company was conferred with the Navratna status in 2007 and with a strong presence across 29 strategic business units (SBUs) – including Cybersecurity, Unmanned Systems, and Arms & Ammunition – BEL’s defense segment contributed 81% to its revenue in FY24, marking steady execution and innovation.
BEL is also tapping into global opportunities. Its exports – ranging from radar modules to communication systems – grew over 236% between FY22 and FY24, making up 4% of its revenue. The company has set up overseas marketing offices in Oman, Vietnam, and Sri Lanka while expanding operations in Singapore and New York, reflecting its ambitions to become a global defense player.
As of July 2024, BEL has signed strategic MoUs with domestic and international players, including AAI, Delhi Metro, IISC, Rosoboronexport (Russia), and Reliasat Inc. (Canada). The company operates nine manufacturing units across India, with major facilities in Bangalore and Ghaziabad. It invested Rs.650 crore in capex during FY24 to further focus on new plants and modernization.
BEL has kept innovation central to its growth, with 7% of its revenue consistently plowed into R&D. The company also drives Indigenous development – contributing to 77% of its revenue from in-house products. With 1,199 IPRs filed and 40 new products introduced in FY24, BEL continues to evolve, embracing new business models and forming joint ventures, such as the newly formed BEL IAI AeroSystems Pvt. Ltd. with Israel Aerospace Industries.
The company’s year-on-year revenue growth rates were 6% in FY20, 8.9% in FY22, 15.22% in FY23, and 16.23% in FY24. Multiple factors contributed to this trend, including the execution of orders from its order book, increased demand in the defense sector, and diversification into non-defense and export markets.
For FY2024, the company’s revenue reached Rs.20268.24 crore, of which the net profit was Rs.3985.24 crore, with the PAT margin being 20%. Additionally, the consistent expansion and profits have kept the net worth positive, reaching Rs.16,082 crore in FY2024.
Takeaway For Investors:
Bharat Electronics Limited has reported consistent revenue growth over the last five financial years, supported by a strong order book and a steady stream of contracts from defense and non-defense segments. The company has consistently maintained its presence in core defence electronics while gradually expanding its reach in civilian markets and exports. Its operational scale, R&D investments, and ongoing capital expenditure reflect its intent to sustain long-term capabilities.
Conclusion:
While recent developments and financial performance highlight BEL’s role in India’s defense ecosystem, investment decisions should be based on a comprehensive evaluation of the company’s fundamentals, market conditions, and individual risk appetite. It is thus suggested that before investing, you conduct your due diligence or consult financial experts to make the most suitable choice for your portfolio.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
India’s insurtech sector has experienced remarkable growth, attracting over USD 2.5 billion in funding and positioning itself as a significant player in the global insurance technology landscape. This surge is driven by technological innovation, evolving consumer needs, and strategic international expansions. Let’s explore the factors fueling this boom, examine key players making strides, and address their challenges in sustaining this momentum.
The Rise of India’s Insurtech Sector
According to a report by Boston Consulting Group (BCG) and the India InsurTech Association (IIA), India is home to over 150 insurtech companies, including 10 unicorns and “soonicorns” and more than 45 “minicorns.” Over the past five years, the sector has witnessed a 12-fold increase in revenue, reaching USD 750 million.
Cumulative funding has surpassed USD 2.5 billion, bringing the total ecosystem valuation to over USD 13.6 billion. While global insurtech funding has slowed, the Asia-Pacific region, including India, has shown resilience, indicating significant growth opportunities. Source: Economic times
AI’s influence on the insurance sector is profound and multifaceted. A report by PwC highlights that 75% of European insurers are increasing investments in AI-driven underwriting and claims automation, with five out of six firms expecting AI to be central to their operations within the next three to five years.
The need for operational efficiency, enhanced customer experiences, and competitive differentiation drives this paradigm shift. Indian Insurtech startups, with their expertise in AI and automation, are seizing this opportunity to offer tailored solutions to international insurers.
Key Drivers of Growth
Several factors contribute to the rapid expansion of India’s insurtech sector:
Technological Advancements: Integrating artificial intelligence (AI), machine learning, and blockchain has revolutionized underwriting, claims processing, and customer service, making insurance more accessible and efficient.
Regulatory Support: Initiatives by the Insurance Regulatory and Development Authority of India (IRDAI) have created a conducive environment for innovation, encouraging startups to develop new solutions.
Increased Digital Adoption: The proliferation of smartphones and internet connectivity has enabled insurers to reach a broader audience, particularly in underserved regions.
Changing Consumer Behavior: A growing middle class with rising disposable income is more aware of the importance of insurance, leading to increased demand for diverse insurance products.
Ensuredit, a Bengaluru-based insurtech firm, assists insurers and brokers in optimizing distribution. The company has expanded into West Asia and Europe and is preparing for a US launch later this fiscal year. In the fiscal year ending March 31, 2024, Ensuredit generated ₹22.63 crore in revenue, with expenses totaling ₹32.67 crore, resulting in a loss of ₹3.51 crore.
InsuranceDekho and Heph
InsuranceDekho’s SaaS platform, Heph, is gearing up for international expansion, with plans to enter West Asia by the second quarter and Southeast Asia by the end of FY26. Since FY25 was its first year of operations, revenue figures are unavailable.
Turtlemint
Turtlemint, which operates the SaaS platform Turtlefin, is actively exploring acquisitions to enter newer geographies like Southeast Asia. The company is already present in West Asia. Its insurance arm saw revenue from operations surge 3.2 times to ₹505.05 crore in FY24, according to its annual financial statement filed with the Registrar of Companies. Source: Livemint
International Expansion: Opportunities and Challenges
Indian insurtech startups are no longer content with the domestic market. Facing intensifying competition at home and comparatively smaller transaction sizes, these firms are aggressively expanding into West Asia, Southeast Asia, and Europe—regions where insurers are ramping up digital adoption and willing to pay more for advanced tech solutions.
Opportunities:
Higher Margins: Clients in international markets often have a greater propensity to pay for innovative solutions, allowing Indian Insurtech to secure higher take rates than the domestic market.
Growing Demand for Digital Solutions: Insurers worldwide are accelerating digital investments to modernize operations, creating opportunities for Indian SaaS-driven Insurtech, known for their cost efficiency and expertise in automation.
Smaller Transaction Sizes: The relatively modest size of transactions in India limits revenue potential, encouraging firms to target regions with higher-value deals.
Advancements in Artificial Intelligence (AI): AI is revolutionizing underwriting, claims processing, and distribution, prompting insurers worldwide to invest in modernizing their operations.
Expertise in Niche Areas: Indian Insurtech excels in micro-insurance, embedded insurance, and B2B2C partnerships, making them attractive partners for Southeast Asia and the Middle East insurers.
Challenges:
Regulatory Compliance: Navigating diverse regulatory landscapes requires significant effort and time, as securing approvals and forming partnerships with local authorities can be lengthy.
Local Competition: Indian startups must compete against well-entrenched local players with deep market knowledge and existing distribution networks.
Customization: Adapting products and services to align with region-specific insurance models and customer preferences is essential for success in new markets.
Strategic Approaches for Successful Expansion
To navigate these challenges, Indian insurance is adopting strategic measures:
Forming Local Partnerships: Collaborating with firms that have established operations in target markets can facilitate smoother market entry and compliance navigation.
Product Localization: Tailoring solutions to meet each market’s specific needs and regulatory requirements enhance acceptance and effectiveness.
Compliance Readiness: Proactively engaging with regulatory bodies and ensuring adherence to local laws can expedite approval and build trust. Source: Livemint
The Road Ahead
The future of India’s insurtech sector appears promising, with continued investments and innovations on the horizon. However, startups must strategically navigate the complexities of international expansion, regulatory compliance, and market competition to sustain their growth trajectory. Collaborations with global partners, ongoing technological advancements, and a customer-centric approach will be pivotal in shaping the next growth phase for Indian insurtech.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What is Insurtech?
Insurtech refers to using technology innovations designed to find cost savings and efficiency from the current insurance industry model. It encompasses various applications, including AI, machine learning, and blockchain, to improve underwriting, claims processing, and customer service.
Why is India’s insurtech sector attracting significant investment?
India’s insurtech sector draws substantial investment due to its rapid growth, technological advancements, supportive regulatory environment, and a large, underinsured population that presents significant market opportunities.
What challenges do Indian insurtech startups face when expanding internationally?
Challenges include navigating complex regulatory environments, competing with established local players, and customizing products to meet different markets’ specific needs and preferences.
How are Indian Insurtech companies leveraging technology to enhance insurance services?
Indian insurance firms utilize AI, machine learning, and blockchain to streamline underwriting, automate claims processing, detect fraud, and personalize insurance offerings. Cloud-based SaaS solutions also enable insurers to scale operations efficiently.
Which Indian insurtech startups are expanding internationally?
Companies like Ensuredit, InsuranceDekho’s Heph, and Turtlemint are aggressively expanding into markets like West Asia, Southeast Asia, and Europe. They aim to capitalize on higher margins, increasing digital adoption, and growing demand for AI-driven insurance solutions in these regions.
As the United States, under President Donald Trump, initiates its “reciprocal tariffs” on April 2, 2025, India stands at a critical juncture, evaluating multifaceted strategies to mitigate potential economic repercussions. These tariffs, aimed at addressing perceived trade imbalances, have prompted India to assess various scenarios and formulate comprehensive responses to safeguard its economic interests.
Understanding the Implications of U.S. Tariffs
The U.S. tariffs are designed to impose additional duties on imports from several countries, including India, to encourage fair trade practices and reduce trade deficits. For India, a nation with significant export ties to the U.S., these tariffs could impact various sectors, particularly those heavily reliant on the American market.
In the fiscal year 2023-24, the U.S. accounted for approximately 18% of India’s total goods exports, underscoring the importance of this trading relationship (Economic Times).
India’s Strategic Response
In anticipation of the tariffs, India has adopted a measured approach, focusing on several key strategies:
Bilateral Negotiations: India has engaged in extensive discussions with U.S. officials to address trade concerns and explore avenues for mutual concessions. These negotiations have led to finalizing the Terms of Reference for a Bilateral Trade Agreement (BTA), facilitated by the Prime Minister’s Office. The BTA aims to establish a framework for reducing trade barriers and enhancing economic cooperation between the two nations.
Tariff Adjustments: To demonstrate goodwill and foster a conducive environment for trade talks, India has proposed lowering tariffs on select U.S. agricultural products and is considering reductions on liquefied natural gas (LNG) imports. These measures address specific U.S. concerns and pave the way for broader trade agreements (MoneyControl).
Diversification of Trade Partnerships: Recognizing the risks of over-reliance on any single market, India actively seeks to diversify its trade relationships. Notably, China has expressed a willingness to import more Indian products, presenting an opportunity to offset potential losses from decreased U.S. market access. Strengthening ties with alternative trading partners can help mitigate the impact of U.S. tariffs (Reuters).
Economic Impact Assessment and Policy Formulation: Indian authorities are conducting thorough assessments to understand the potential financial impact of the U.S. tariffs. This includes analyzing affected sectors, evaluating the implications for the Indian rupee, and formulating policies to support industries that may be adversely impacted. The rupee, which had seen a 3% gain against the U.S. dollar after a five-month losing streak, is projected to decline, potentially reaching 87.80 per dollar by March 2026 (Reuters).
Potential Scenarios and India’s Preparedness
Indian officials have outlined several scenarios to anticipate the possible outcomes of the U.S. tariffs:
Product-Specific Tariffs: If the U.S. imposes tariffs targeting specific products, countries like China, Mexico, Canada, and the EU might be more affected, potentially making Indian exports more competitive in those segments. For instance, if steel and aluminum tariffs increase by 15%, India’s current steel export volume of 6.7 million metric tons to the U.S. (valued at $4.3 billion) could shift towards higher European and ASEAN demand.
Sector-Specific Measures: Tariffs affecting entire sectors, such as pharmaceuticals or textiles, would increase costs globally, impacting all players, including India, by reducing profit margins and altering competitive dynamics. The Indian pharmaceutical sector, which exports $7 billion worth of generic drugs to the U.S. annually, could see a significant hit if tariffs increase by 10-12%.
Country-Specific Tariffs: The direct impact could be severe if the U.S. implements tariffs specifically targeting India. India exported $78 billion worth of goods to the U.S. in 2024. A 5% across-the-board tariff would immediately add nearly $4 billion in additional costs for Indian exporters, forcing them to either absorb losses or increase prices, potentially reducing demand.
Secondary Tariffs: Indirect effects, such as tariffs on other countries that disrupt global supply chains, could have cascading impacts on India’s economy. If China faces a 20% tariff on electronics, Indian semiconductor firms, which rely on Chinese inputs for manufacturing, could face increased costs and supply chain disruptions.
Collaborative Efforts and International Relations
India’s approach also involves active participation in international forums to advocate for fair trade practices and seek collective responses to protectionist measures. Some of the key collaborative efforts include:
WTO Dispute Resolution: India, along with the EU, Canada, and Japan, has initiated discussions at the World Trade Organization (WTO) to challenge the legality of the U.S. tariffs under global trade rules. If the WTO rules against the U.S., it could open the door for retaliatory actions or exemptions.
Regional Economic Partnerships: India is accelerating its engagement with trade blocs such as ASEAN, the European Union, and the BRICS nations. India’s recent Free Trade Agreement (FTA) negotiations with the UK and Australia have gained momentum, ensuring market diversification. Bilateral trade between India and ASEAN, which stood at $110 billion in 2023, is expected to increase by 20% as India redirects exports.
Strengthening Domestic Manufacturing: To reduce reliance on imports and enhance self-sufficiency, India has intensified the implementation of the Production-Linked Incentive (PLI) schemes, offering $26 billion in incentives across sectors like electronics, automobiles, and renewable energy.
Conclusion
As the U.S. implements its reciprocal tariffs, India’s multifaceted strategy—encompassing diplomatic engagement, economic diversification, policy adjustments, and international collaboration—reflects a proactive and balanced approach to navigating the complexities of global trade dynamics. By carefully assessing potential impacts and exploring diverse avenues to mitigate risks, India seeks to protect its economic interests while fostering an environment conducive to sustainable growth and international cooperation.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Though the market started with a slight drop in the primary indices, a few stocks saw a jump in share prices owing to different announcements, including equity conversions (Vodafone Idea) and contract deals (Hindustan Aeronautics Ltd.).
One such highlight of the initial market hours is ITC’s acquisition of Aditya Birla Real Estate’s pulp & paper arm, Century Pulp and Paper. How will this affect the companies, and what was the strategy for doing so? Let’s understand it in detail.
Overview of Century Pulp and Paper
Category
Details
Established
1,984.00
Location
Lalkuan, Uttarakhand
Total Capacity
~5 lakh metric tonnes per annum
Manpower
6,000+ employees
Trees Planted
105 lakh (as of Sept 2024)
Established in 1984, Century Pulp & Paper (CPP) is a leading player in the paper industry, manufacturing paper, board, tissue, and pulp products. It operates one of India’s largest single-location integrated manufacturing facilities, located in Lalkuan, Uttarakhand, near the foothills of the Himalayas. CPP has a strong presence in domestic and export markets, with a network of service centers and sales offices across India. The company’s product offerings include
Writing & Printing Paper
Copier Paper (70-85 GSM)
Tissue Paper
Paperboard (Prima Plus & Omega Plus Boards)
Rayon Grade Pulp
Century Green Pulp (Produced from bagasse)
Acquisition Details:
ITC Limited has announced the acquisition of Century Pulp & Paper (CPP) from Aditya Birla Real Estate for Rs.3,498 crore through a slump sale transaction. Under this structure, ITC will take over CPP’s entire business – including assets, contracts, and employees – as a single entity without assigning individual values to specific assets or liabilities. This approach allows for a streamlined transfer and aligns with ITC’s rapidly expanding Paperboards and Specialty Papers Business strategy.
The deal, disclosed in a stock exchange filing on 1st April 2025, is expected to close within six months, subject to regulatory approvals, including from the Competition Commission of India (CCI). Here’s how it affects both ITC Limited and Aditya Birla Real Estate:
Outcome Of The Deal For ITC Limited
Revenue Increase:
In FY24, ITC’s paperboards, paper, and packaging segment contributed Rs.8,344 crore to its Rs.69,446.20 crore total revenue.
With CPP generating Rs.3,375 crore in revenue and Rs.500 crore in EBITDA in FY24, these figures will immediately be reflected in ITC’s financials post-acquisition. Since CPP is already profitable, its revenue will directly boost ITC’s earnings, increasing ITC’s Earnings Per Share (EPS) from the first year.
Production Capacity:
The deal is also poised to increase ITC’s total paper production capacity by 60%, from 8 lakh MT per annum to 12.8 lakh MT per annum, positioning it strongly in a market where demand for paper and paperboards grows at 6-7% annually.
Operational Edge:
Additionally, CPP’s location in Uttarakhand offers ITC an operational edge, providing efficient customer servicing, proximity to raw materials, and a hedge against operational risks by diversifying its production footprint.
ITC expects to leverage synergies from the acquisition, targeting a 30-40% increase in EBITDA per tonne and improved Return on Capital Employed (RoCE) over the medium term.
Outcome Of The Deal For ABRE
The divestment is part of a broader strategic shift for Aditya Birla Real Estate. Formerly known as Century Textiles Limited, the company rebranded itself as ABRE in September 2024 to reflect its sharpened focus on real estate. The sale of its pulp and paper business will allow it further to pursue growth opportunities in its core real estate business.
The divestment will also free up capital from a non-core segment. It can then be channeled into high-growth areas such as real estate, paints, and jewelry retailing, where it has made significant capital investments. The slump sale structure ensures a clean exit from the paper business while unlocking shareholder value.
Changes In Share Price Of ITC and ABRE:
Following ITC’s announcement, the company’s share price slightly increased. On Tuesday, the stock rose by 0.11%, reaching Rs.410.2 per share on the National Stock Exchange (NSE) at 9:24 am. Despite this uptick, ITC’s share price has fallen by 0.18% over the past five trading days. However, over the past month, the stock has gained 3.22%, reflecting some positive momentum in the market ahead of the deal’s completion and the expected acquisition benefits.
As for Aditya Birla Real Estate’s share price saw a 3% increase, reflecting a positive market reaction to the divestment of its pulp and paper business.
The acquisition of Century Pulp and Paper by ITC will immediately impact its revenue and earnings, with a notable increase in paper production capacity. This development adds scale to ITC’s paper business and positions it for further growth.
For Aditya Birla Real Estate, selling its pulp and paper business allows the company to concentrate on its real estate operations, freeing up capital for reinvestment. Overall, ITC’s financials will reflect the added capacity and revenue, while Aditya Birla Real Estate will focus on its core sector moving forward.
Bottomline:
The acquisition of Century Pulp & Paper (CPP) by ITC marks a strategic move that will significantly bolster ITC’s Paperboards and Specialty Papers Business. ITC positioned itself for more substantial growth in an expanding market. ABRE is now ready to focus on its core real estate business, freeing up capital for further investments in high-growth areas. However, as investors, whether to invest in these stocks or stay invested if you are already a shareholder is a decision to be made after thoroughly analyzing the effects of the deal on share price, the market scenario, and other external factors.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Stocks from the Anil Dhirubhai Ambani Group (ADAG) made a sharp upward move today, catching the attention of investors across Dalal Street. While benchmark indices like the Sensex and Nifty saw a pullback, Reliance Power jumped 11% intraday, Reliance Infrastructure surged 10% yesterday, and Reliance Capital climbed 2%, continuing a strong rally from earlier this week.
So, what’s driving this sudden surge in Anil Ambani’s legacy companies?
The Catalyst: Reliance Capital Acquisition
The key trigger was the successful acquisition of Reliance Capital by IndusInd International Holdings Ltd (IIHL) for ₹9,650 crore. This milestone comes after a three-year resolution process, significantly boosting investor confidence in the broader ADAG group. (Source: livemint)
According to Sugandha Sachdeva, Founder of SS WealthStreet, “The official takeover by IIHL, coupled with their first board meeting, has acted as a confidence booster. It signals a more stable, growth-oriented future for the group’s companies. This optimism is clearly reflected in the sharp price action we’re seeing today.”
Stock Performance Snapshot
Let’s take a closer look at how individual ADAG stocks are performing:
Reliance Power (RPower)
11% up intraday
13.35% up over the past month
12% down YTD
43% up in the last one year
203% return over two years – a true multi-bagger
RPower has the largest power generation portfolio under development in India’s private sector. The stock has been quietly building momentum, and today’s rally may reinforce bullish sentiment among long-term investors. (Source: livemint)
As a major shareholder in RPower, RInfra is also benefiting from the positive sentiment. The company has been focusing on deleveraging and improving operational efficiency, which seems to be resonating with the market. (Source: livemint)
Profit booking in banking and IT stocks weighed heavily ahead of monthly derivatives expiry
Despite this, ADAG stocks defied the trend, suggesting that the rally was backed by more than just market momentum. In fact, it signals a shift in investor perception around Anil Ambani’s business group. (Source: livemint)
What Does This Mean for Investors?
The strong rebound in ADAG stocks serves as a reminder of how quickly sentiment can change, especially when corporate restructuring and debt resolutions come into play.
While today’s rally is a positive signal, it’s also worth approaching with measured optimism. These stocks have a volatile history, and sustainable performance will depend on continued governance improvements, business clarity, and financial discipline.
If the group continues to deliver on these fronts, it may mark the start of a longer-term turnaround story.
Final Thoughts
Today’s gains in Reliance Power, RInfra, and Reliance Capital reflect more than just numbers; they represent a renewed vote of confidence in Anil Ambani’s ability to turn things around.
It’s too early to call this a full-fledged comeback, but the momentum is undeniable. And for investors watching the Indian infrastructure and power sectors closely, ADAG stocks are again part of the conversation.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What triggered the sudden rally in ADAG stocks?
The rally was triggered by the successful acquisition of Reliance Capital by IndusInd International Holdings Ltd (IIHL) for ₹9,650 crore, which restored investor confidence in the group.
Why is Reliance Power gaining interest again?
Reliance Power has shown significant long-term returns, with a 203% gain over two years, and has a large power generation portfolio under development. Recent positive sentiment has revived interest.
Is Reliance Infrastructure related to Reliance Power?
Yes, Reliance Infrastructure is a major shareholder in Reliance Power and often moves in tandem with its performance.
How did the broader market perform on the same day?
Despite the rally in ADAG stocks, the Sensex fell by 728 points, and Nifty 50 declined by 181.80 points due to profit booking in banking and IT sectors.
Should investors consider entering ADAG stocks now?
While the current momentum is positive, investors should exercise caution due to past volatility. Focusing on governance, debt reduction, and clear strategy will be key indicators of sustainable growth.
As India’s quick commerce and food-tech giant Zepto gears up for its highly anticipated IPO, it’s making headlines for a planned $250 million secondary share sale. This strategic move aims to increase Indian investor ownership and provide liquidity to existing shareholders. The private equity arms of Motilal Oswal Financial Services Ltd. and Edelweiss Financial Services Ltd. are in discussions to acquire shares in this secondary sale. Collaborating with these reputable financial institutions can enhance Zepto’s credibility and market positioning as it approaches its IPO.
Objectives Behind Zepto’s Secondary Sale
While this move does not impact the company’s operating cash flow or funding runway, it serves multiple important strategic purposes for Zepto’s long-term positioning.
As of October 2023, domestic shareholding in Zepto was around 22%. In November 2024, it secured a $350 million funding round, which included significant Indian investors, increasing domestic ownership to around 35%.
The company aims to increase this to approximately 50% before its IPO. This shift has both strategic and regulatory advantages. A higher percentage of domestic ownership increases alignment with Indian capital markets and can make the IPO more attractive to domestic institutional investors. It also ensures that Indian stakeholders have a stronger influence over the company’s direction and governance post-listing.
Providing Liquidity to Existing Shareholders:
The secondary sale offers early investors and employees an opportunity to monetize their holdings, rewarding them for their contributions and potentially boosting morale ahead of the IPO.
Maintaining Valuation Consistency:
Zepto plans to conduct these transactions at a valuation of just over $5 billion, consistent with its most recent funding round. This stability can instill confidence among potential IPO investors regarding the company’s market value.
Avoiding Dilution by Not Raising Fresh Capital:
Zepto has opted not to raise new funds through a primary round. The reason is simple: the company is currently well-capitalized from previous rounds and is reportedly on track toward profitability in select markets. By sticking to a secondary sale, Zepto avoids diluting the ownership of existing shareholders. This approach also helps maintain a clean cap table, which is often considered a positive signal by IPO-bound companies.
What the Secondary Sale Means for Zepto Despite Being Controversial
Secondary stock sales have traditionally been viewed with skepticism, as they allow executives and employees to liquidate part of their holdings before an IPO or acquisition—raising concerns about reduced long-term commitment. However, in recent years, such transactions have evolved into a tool for employee retention and investor confidence, serving as a reward mechanism to boost morale and as a means for early backers to exit and partially realize returns.
Zepto operates in a highly competitive and low-margin industry, contending with giants like Amazon India, Swiggy, Zomato, and Tata Group’s BigBasket. By increasing Indian investor ownership and providing liquidity to stakeholders, Zepto aims to strengthen its financial foundation and strategic positioning ahead of its public offering.
Conclusion
Zepto’s planned $250 million secondary share sale reflects a multifaceted strategy to bolster Indian investor participation, reward existing shareholders, and maintain a stable valuation leading up to its IPO. As the company prepares to enter the public market, these initiatives may enhance its appeal to potential investors and solidify its standing in the competitive quick commerce sector.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQ
What is a secondary share sale?
A secondary share sale refers to existing shareholders—such as early investors, employees, or founders—selling a portion of their equity to other interested investors. The money from such a transaction goes to the selling shareholders, not to the company. In Zepto’s case, the $250 million transaction is entirely secondary, meaning no new shares will be created, and the company’s valuation will remain unchanged.
Why is Zepto increasing Indian investor ownership before its IPO?
Increasing Indian investor ownership to around 50% can make the company more appealing to domestic investors and align with regulatory preferences for local ownership in Indian startups.
Who are the potential buyers in Zepto’s secondary sale?
The private equity arms of Motilal Oswal Financial Services Ltd. and Edelweiss Financial Services Ltd. are reportedly in discussions to acquire shares in the secondary sale.
Will Zepto raise new capital through this secondary sale?
No, the secondary sale allows existing shareholders to sell their shares, providing them with liquidity without raising additional capital for Zepto.
How does this secondary sale impact Zepto’s valuation?
The transactions are expected to occur at a valuation of just over $5 billion, consistent with Zepto’s most recent funding round, indicating valuation stability as the company approaches its IPO.
When you slip into stylish international brand footwear, you might assume they come straight from some of the world’s most developed countries. But here’s a surprise—many of these brands are manufactured in the remote villages of Tamil Nadu.
Tamil Nadu has become a global powerhouse in footwear manufacturing, producing for top brands like Nike, Puma, Crocs, and Adidas. Interestingly, non-leather footwear now makes up 86% of global footwear demand. Recognizing this shift, foreign manufacturers are pouring ₹17,550 crore into the state, a move expected to generate around 2.3 lakh jobs.
These once-quiet villages are now bustling with factories and job opportunities. But this transformation didn’t happen overnight—it took years of policy changes, strategic planning, and relentless efforts to position Tamil Nadu as a key player in non-leather footwear manufacturing. Source: LiveMint
Today, international investors are placing their confidence in Tamil Nadu, reshaping its industrial landscape and creating employment at an unprecedented scale. But how did the state achieve this remarkable turnaround? Let’s dive into the journey.
India’s Footwear Market
Before exploring the details, let’s examine the global and domestic footwear industry. India is the second-largest footwear producer, accounting for 13% of global production. China remains the leader, commanding a dominant 67% market share.
In 2024, India’s footwear market was valued at $17.89 billion and could reach $80 billion by 2030. This expansion could generate over 3 million job opportunities and significantly boost entrepreneurs in the SME sector.
The Indian footwear market is primarily driven by casual footwear, which accounts for nearly two-thirds of total retail sales. Men’s footwear dominates the market, contributing around 58% of retail sales. Additionally, non-leather footwear holds a significant share, making up approximately 1.23 billion pairs, or 56% of the overall market.
Tamil Nadu has long been known for its leather exports, accounting for 47% of India’s leather trade. However, global trends are shifting towards non-leather footwear, which makes up 86% of worldwide shoe consumption. Recognizing this opportunity, the state government pivoted towards synthetic footwear production. Source: LiveMint
Tamil Nadu’s Minister for Industries, Investment Promotion, and Commerce highlights that the non-leather footwear sector strikes the right balance—it demands minimal technical skills while creating widespread employment. This makes it a perfect opportunity for rural areas where jobs are limited.
Foreign manufacturers are responding positively, with major companies setting up facilities in the state. The influx of investment is expected to create 2.3 lakh jobs, reinforcing Tamil Nadu’s role in India’s ‘China+1’ strategy (The China+1 strategy is a business approach where companies diversify their manufacturing and supply chain operations by setting up production in countries other than China, while still maintaining a presence there).
Several global contract manufacturers have already begun operations in Tamil Nadu or are in various stages of setting up their units. Some of the key players include:
JR One Kothari Footwear Pvt. Ltd.: A joint venture between Kothari Industrial Corp. Ltd. (KICL) and Taiwan-based Shoe Town Group. Their Perambalur facility, operational since November 2023, currently employs 2,500 workers (90% women) and has produced 2 million pairs of Crocs. With a planned investment of ₹1,700 crore, the factory aims to generate 15,000 jobs and manufacture 40 million pairs annually.
KICL-Adidas JV: Another significant investment by KICL and Shoe Town Group, this ₹5,000 crore project near Karur and Eraiyur will create over 50,000 jobs.
Feng Tay Enterprises: One of Nike’s largest contract manufacturers, Feng Tay set up its first Tamil Nadu factory in 2006 and has since expanded to Bargur and Tindivanam. The company employs over 37,000 workers and produces 25 million pairs of shoes yearly.
Other Manufacturers: Companies like Pou Chen Group, Hong Fu Industrial Group, and Dean Shoes Company are also establishing their production units. Source: LiveMint
Top non-leather footwear contract manufacturers in Tamil Nadu
India could have become a global footwear hub 25 years ago, but it wasn’t ready.
In the late 20th century, major global footwear brands had already moved non-leather shoe production to China due to its low wages and abundant labor. By the early 2000s, rising labor costs in China forced manufacturers to look for alternative destinations. This was India’s chance—but it failed to capitalize on it.
Instead, countries like Vietnam, Thailand, Indonesia, and Cambodia benefited as brands expanded their operations there. India’s policymakers remained focused on leather, ignoring the growing market for synthetic footwear. Feng Tay was the only global player to invest in India, but its operations remained small.
Why India is Now an Attractive Destination
A mix of economic and geopolitical factors has presented India with a second chance:
Rising Wages Elsewhere: The labor cost in China has risen to $3 per hour, compared to $2 in Vietnam, $1.5 in Indonesia, and just 90 cents in India. This makes India highly competitive.
Disruptions in Supply Chains: The US-China trade war (2017) and the COVID-19 pandemic exposed vulnerabilities in global supply chains. Many companies began diversifying their production, benefiting India.
Growing Domestic Demand: India’s rising per capita income and evolving consumer preferences have made the country an attractive market for non-leather footwear.
Proactive State Government: Tamil Nadu was the first to seize the second chance, actively courting foreign investors since 2018 and intensifying efforts post-COVID.
Building the Ecosystem for Growth
Despite its advantages, Tamil Nadu had to work hard to convince foreign companies to invest. Here’s how the state addressed key concerns:
Land and Infrastructure: Investors wanted large land parcels with easy port access. Tamil Nadu offered locations connected to ports within eight hours, ensuring smooth logistics.
Workforce Availability: Companies preferred women workers, who were readily available in rural Tamil Nadu. The government provided skill development programs to train them for factory jobs.
Regulatory Support: To ease concerns over bureaucracy and corruption, the state streamlined approval processes, offering a single-window clearance system for investors.
Why Non-Leather Footwear?
While the state has long been a manufacturing hub for automobiles, textiles, and electronics, industrial growth remained concentrated in select urban centers. The government realized the need to create jobs in less-developed areas, particularly in industries that do not require highly specialized skills. Non-leather footwear emerged as an ideal sector due to:
Growing Global Demand: Non-leather shoes comprise 86% of global footwear sales.
Scalability: The industry requires large-scale production, ensuring employment for thousands.
Lower Skill Barriers: Many roles do not require advanced qualifications, making them accessible to rural workers.
Export Potential: India’s ‘China+1’ strategy encourages global companies to shift manufacturing operations.
With these factors in mind, the government aggressively promoted the sector, aiming to establish the state as India’s non-leather footwear capital.
Convincing the Investors: A Tough Battle
Despite its strategic advantages, convincing international manufacturers to invest was impossible. Investors had major concerns, such as:
Workforce Quality: Would local laborers meet global standards?
Bureaucratic Red Tape: Could they set up operations smoothly?
Infrastructure Challenges: Was there adequate connectivity and logistics support?
Cultural Differences: Would foreign companies feel welcomed and supported?
The state government tackled these concerns through a series of policy measures:
Skilled Workforce Development: Special vocational training programs were introduced to upskill workers.
Fast-Track Approvals: A single-window clearance system was set up to eliminate bureaucratic delays.
Infrastructure Investment: Ports, roads, and industrial parks were upgraded to improve connectivity.
Proactive Investor Support: Dedicated teams were assigned to assist foreign investors in navigating local regulations.
These initiatives paid off, and foreign manufacturers began to take notice.
What Lies Ahead for Tamil Nadu’s Footwear Industry
With major investments flowing in and production ramping up, Tamil Nadu is well on its way to becoming India’s non-leather footwear capital. The sector generates jobs, fostering inclusive growth, uplifting rural communities, and making India a serious competitor in global footwear manufacturing.
As global brands expand in India, Tamil Nadu’s bold vision is turning into reality—one shoe at a time.
Major Investments Pouring In
Several leading non-leather footwear contract manufacturers are now operating in the state. Companies from Taiwan, Vietnam, and China are committing massive investments to establish large-scale production facilities. Some key developments include:
A Taiwanese manufacturer is investing ₹1,700 crore to build a facility that will employ 15,000 workers and produce 40 million pairs of shoes annually.
Another global footwear company committing ₹5,000 crore for a joint venture, generating over 50,000 jobs.
Multiple factories in various stages of development ensure continued growth in the sector. Source: LiveMint
The influx of such large-scale investments is boosting employment and positioning the state as a major export hub for global brands.
What Took India So Long?
Interestingly, India had the opportunity to attract these manufacturers 25 years ago but failed to do so. The global shift in footwear manufacturing began in the late 20th century when companies moved from high-cost regions to low-cost destinations like China, Vietnam, and Indonesia. While India had the labor advantage, it lacked the necessary infrastructure and policy support.
By the time global manufacturers started looking for alternative destinations in the 2000s, India had already lost out to competitors like Thailand and Cambodia. However, rising wages in those countries and geopolitical disruptions such as the U.S.-China trade war and COVID-19 supply chain challenges have given India a second chance.
India’s Competitive Edge Today
India is now an attractive destination for footwear manufacturing due to several key factors:
Lower Wage Costs: Labor costs in India are 90 cents per hour compared to $3 in China and $2 in Vietnam.
Growing Domestic Market: Rising per capita income increases demand for footwear in India.
Government Incentives: Special economic zones and tax benefits are encouraging foreign investment.
Improved Logistics: Better road networks and port access are facilitating smoother exports.
These advantages have convinced global brands that India is a viable alternative for large-scale footwear production.
Challenges and Opportunities
While the progress is commendable, challenges remain. The state must now focus on:
Building a Local Ecosystem: Encouraging ancillary industries such as sole and material production to reduce import dependence.
Enhancing Skill Development: Expanding training programs to create a highly skilled workforce.
Ensuring Sustainability: Implementing eco-friendly practices to align with global environmental standards.
Strengthening Global Partnerships: Continuing efforts to attract more international brands and investment.
Conclusion: A Success Story in the Making
The state’s journey to becoming India’s non-leather footwear capital is a story of vision, perseverance, and strategic planning. The transformation has been remarkable, from overcoming investor skepticism to creating thousands of jobs.
As global brands continue to shift their manufacturing bases, this state stands poised to become a key player in the international footwear industry. This achievement could inspire other states to follow suit.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What is the total investment by Nike, Adidas, and Puma in Tamil Nadu?
The combined investment is ₹17,550 crore, aimed at boosting footwear manufacturing and infrastructure, supporting India’s goal for an $80 billion market by 2030.
Why are these companies investing in Tamil Nadu?
Tamil Nadu offers robust infrastructure, skilled labor, and favorable policies, making it a strategic hub for footwear production to serve the growing Indian market.
What market size is India targeting by 2030?
By leveraging the investments, India aims to achieve an $80 billion footwear market by 2030, driven by increased domestic demand and export potential.
What kind of impact will this investment have?
It will create jobs, enhance manufacturing capabilities, and stimulate economic growth in Tamil Nadu, contributing significantly to India’s footwear industry expansion.
If you’ve been watching the IT sector, you might have noticed a sudden drop in Infosys and Wipro’s stock performance on the New York Stock Exchange (NYSE). On March 20, 2025, the American Depository Receipts (ADRs) of Infosys fell by 3.6% to $17.9, while Wipro’s ADRs dropped by 3.2% to $2.97. This came right after Accenture released its second-quarter earnings and raised the lower end of its full-year revenue forecast, expecting growth between 5% and 7%, up from the earlier 4% to 7% range. Source: Economic Times
So, what exactly happened, and why did Infosys and Wipro’s ADRs take a hit despite Accenture’s optimistic forecast? Let’s break it down step by step.
Before we dive into the details, let’s clarify what ADRs are. American Depository Receipts (ADRs) allow foreign companies to trade their shares on U.S. stock exchanges. Instead of buying shares directly from Infosys or Wipro on the Indian stock market, U.S. investors can purchase ADRs, representing a specific number of shares in the company. This allows global investors to trade these stocks without dealing with foreign exchanges.
Since Infosys and Wipro are major players in the Indian IT industry with significant business in the U.S., analysts and investors worldwide watch their ADR performance closely.
Accenture’s Earnings Report: The Key Trigger
Accenture, one of the biggest IT services firms globally, released its second-quarter earnings report, showing signs of steady growth. The company raised its full-year revenue forecast, expecting annual growth of 5% to 7%, citing strong demand for AI-powered tools and cloud migration services.
However, market expectations were slightly higher. Analysts had anticipated a more optimistic forecast, closer to 5.7%, and Accenture’s slightly conservative guidance triggered a ripple effect in the IT sector.
Some key takeaways from Accenture’s Q2 earnings report:
Revenue: Reported at $16.66 billion, slightly above estimates of $16.62 billion.
New bookings: Declined 3% to $20.9 billion, raising concerns about future revenue streams.
Consulting services revenue: Stood at $8.3 billion, falling short of the expected $8.54 billion.
Despite these numbers showing overall stability, the market’s reaction was mixed. The report signaled a robust demand for AI-driven solutions and hinted at macroeconomic uncertainties affecting IT spending. Source: The Mint
Now, you might be wondering—if Accenture is reporting solid demand for AI-led digital transformation, why did Infosys and Wipro’s ADRs drop?
The answer lies in competition and investor sentiment. Accenture’s earnings reports are often viewed as an industry barometer, especially for Indian IT firms that derive a large chunk of their revenue from global IT services. With Accenture aggressively expanding its AI-driven service offerings and securing major deals in banking, telecom, and other industries, investors may have felt that Infosys and Wipro could face stiffer competition in securing future contracts.
This cautious outlook led to a sell-off in Infosys and Wipro’s ADRs, even though their performance in the Indian stock market remained stable. On the Bombay Stock Exchange (BSE), Infosys closed 1.74% higher at ₹1,614.15, while Wipro ended 0.83% up at ₹267.95. Source: Economic Times
How the Broader Market Reacted
Accenture’s earnings didn’t just impact Infosys and Wipro. The broader IT sector felt the effects as well:
The Nifty IT index closed at 36,676.65, up 1.25%, indicating that the domestic market still had confidence in the sector.
The Nasdaq Composite was trading at 17,830, reflecting a generally positive sentiment in the U.S. tech sector.
Indian benchmark indices, however, opened lower on March 21, 2025, as IT stocks faced pressure, with major players like Tata Consultancy Services (TCS), Wipro, HCL Technologies, and Infosys seeing a decline of 1.5% to 2.5%.
While the immediate reaction to Accenture’s report led to a sell-off in Infosys and Wipro’s ADRs, the bigger picture remains dynamic. Indian IT giants now face both challenges and opportunities in this evolving landscape.
AI and Digital Transformation: The IT industry is shifting toward AI-driven solutions. Infosys and Wipro must double down on AI investments to stay competitive.
Diversifying Revenue Streams: Companies will likely focus on expanding their offerings beyond traditional IT services, including cloud security, data analytics, and industry-specific AI solutions.
Global Partnerships: Like Accenture, Indian IT firms may strengthen partnerships with banks, telecom companies, and large enterprises to secure long-term projects.
Conclusion
The market’s reaction to Accenture’s earnings shows how connected global IT firms are. While Infosys and Wipro’s ADRs faced a temporary dip, it’s important to see this in the larger context of shifting industry trends. With AI and digital transformation reshaping the sector, Indian IT companies must adapt quickly to maintain their market position.
For investors and industry watchers, the next earnings season—starting in April with Tata Consultancy Services (TCS)—will clarify where the Indian IT sector is headed in this competitive global environment.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
India and New Zealand have set an ambitious 60-day deadline to finalize a Free Trade Agreement (FTA), which could significantly reshape bilateral trade and investment flows between the two nations.
Announced during high-level talks in early 2024, this development signals a renewed push towards economic cooperation, underpinned by India’s growing global trade ambitions and New Zealand’s strategic need to diversify its export markets. Additionally, both countries have signed a defense cooperation pact, marking a crucial step toward stronger strategic and security ties in the Indo-Pacific region.
The trade relationship between India and New Zealand has historically been underdeveloped, with bilateral trade at approximately $2.5 billion in 2023 (Economic Times). Given India’s $5.6 trillion equity market and its position as the world’s fifth-largest economy, this agreement presents an opportunity for both nations to capitalize on each other’s strengths. If structured effectively, the FTA could increase trade volume tenfold in the next decade, as industry experts have projected (Financial Express).
Beyond trade numbers, this agreement comes at a critical juncture when India is strengthening its global economic footprint, leveraging its $640 billion forex reserves to build resilient trade partnerships.
Source: Reserve Bank of India (RBI), Statista
For New Zealand, the deal holds the potential to counterbalance its over-reliance on China, its largest trading partner, and establish a sustainable growth pathway in South Asia. Furthermore, the India-New Zealand defense pact enhances strategic cooperation, particularly in maritime security, military training exchanges, and defense technology sharing, reinforcing New Zealand’s role in the Indo-Pacific security architecture.
Economic Implications for India
1. Strengthening India’s Trade Position in the Indo-Pacific
The proposed FTA would significantly enhance India’s presence in the Indo-Pacific trade corridor, providing Indian businesses access to New Zealand’s consumer base and agricultural expertise. This is crucial as India seeks to deepen trade relations in the Pacific region after opting out of the Regional Comprehensive Economic Partnership (RCEP) in 2020.
2. Boosting Indian Exports and Key Sectors
Pharmaceuticals and Healthcare: New Zealand currently imports a significant portion of its medicines, and Indian pharmaceutical giants could see a boost in exports driven by cost-competitive generics.
IT and Digital Services: India is a leader in IT services and software solutions, and a tariff-free arrangement could enable Indian firms to expand into New Zealand’s digital economy.
Manufacturing and Engineering Goods: The ‘Make in India’ initiative could gain traction with increased auto components, machinery, and engineering product exports.
3. Strengthening Forex Reserves and Currency Stability
With India’s forex reserves crossing $640 billion, this trade deal could further bolster inflows by expanding the export surplus and attracting FDI from New Zealand. The influx of foreign capital could also support the rupee’s stability, ensuring resilience against global economic fluctuations.
4. Attracting New Zealand Investments into India
New Zealand investors could find opportunities in India’s booming agri-tech, renewable energy, and infrastructure sectors. With India planning to invest $1.4 trillion in infrastructure projects by 2025, the FTA could pave the way for collaboration in urban development, water management, and green energy initiatives. \
Economic and Strategic Implications for New Zealand
1. Market Diversification Beyond China
China accounts for nearly 30% of New Zealand’s exports, particularly in dairy, meat, and wood products (Statista). However, increasing geopolitical uncertainties and economic dependencies have prompted New Zealand to explore alternative trade partnerships. Strengthening ties with India—one of the world’s fastest-growing economies—could mitigate trade risks and reduce over-reliance on China.
2. Boosting Agricultural Exports to India
New Zealand’s dairy and agricultural sectors stand to gain from expanded market access in India, provided tariff reductions can be negotiated. India, however, has historically protected its dairy industry, and any compromise on milk and dairy imports will likely be a contentious point in negotiations.
3. Strengthening Services Trade
New Zealand’s education and tourism sectors could be boosted through greater inflows of Indian students and travelers. With over 100,000 Indian students pursuing education in Australia and New Zealand, easing trade restrictions could enhance bilateral student exchanges and collaborative research programs.
4. Expanding Investment Opportunities in India
With India rapidly expanding its renewable energy infrastructure, New Zealand firms specializing in green technology, solar energy, and sustainable agriculture could find lucrative investment opportunities.
5. Strengthening Defense and Security Cooperation
The signing of the India-New Zealand defense pact highlights the growing strategic alignment between the two nations. The agreement includes:
Joint military training programs to enhance interoperability.
Maritime security cooperation in the Indo-Pacific, countering regional threats.
Technology-sharing in defense manufacturing, potentially opening doors for Indian firms to collaborate with New Zealand defense contractors.
By strengthening defense ties, New Zealand will secure a more prominent role in regional security, while India will solidify its leadership in Indo-Pacific defense diplomacy.
Key Challenges That Could Affect Investment Flow
While the economic potential of the India-New Zealand FTA is significant, several challenges remain:
Tariff Sensitivities: India is unlikely to lower tariffs on dairy imports, which New Zealand seeks access to. This could slow down negotiations.
Regulatory Hurdles: Aligning trade standards between the two nations remains challenging, particularly in pharmaceutical approvals and agricultural imports.
Logistical Barriers: The geographic distance between India and New Zealand challenges shipping costs, supply chain management, and logistics efficiency.
A Transformative Deal
The proposed India-New Zealand FTA represents more than just tariff reductions—it signifies a geopolitical and economic realignment. India can enhance its global trade stature by fostering deeper trade ties, bolstering forex reserves, and attracting high-value investments. Meanwhile, New Zealand stands to gain a diversified export market, reduced dependency on China, and enhanced economic security.
Furthermore, the defense cooperation agreement signals a broader Indo-Pacific security partnership, reinforcing regional stability. This deal could be a successful model trade and security alliance, unlocking unprecedented economic and strategic opportunities for both nations.
With India’s forex reserves at record highs, foreign investment inflows growing, and trade partnerships expanding, the India-New Zealand FTA could be a stepping stone toward greater economic integration.
Will this trade deal unlock a new era of economic cooperation, or will old challenges stall progress again? The coming months will be decisive.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
As India’s real estate market faces a slowdown, developers are looking for ways to boost their sales. One of the key avenues they are turning to is the growing interest from Non-Resident Indians (NRIs).
With their strong purchasing power, mainly fueled by the depreciation of the Indian rupee, NRIs are increasingly looking to invest in luxury properties in India. This growing demand from the Indian diaspora, especially in key regions like the United States, the United Kingdom, the United Arab Emirates (UAE), Singapore, and Canada, is becoming a crucial development lifeline.
As sales in the domestic market slow down, developers are organizing roadshows in these countries to attract overseas buyers, hoping to tap into the potential of the NRI market.
According to developers, NRIs are becoming an essential part of the real estate ecosystem, accounting for a significant portion of sales. This trend is confined to metropolitan cities and extends to emerging urban centers, with NRIs diversifying their investments beyond traditional hot spots like Delhi NCR and Mumbai. Source: Economic Times
The Rapid Growth of India’s Real Estate Market
India’s real estate market has witnessed remarkable growth in recent years, and projections indicate that this growth will only accelerate in the coming decades. The sector, which was valued at Rs. 12,000 crore (US$ 1.72 billion) in 2019, is expected to reach an impressive Rs. 65,000 crore (US$ 9.30 billion) by 2040. Furthermore, India’s real estate sector is forecasted to hit a staggering US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021.
Looking further into the future, India’s real estate market is projected to soar to US$ 5-7 trillion by 2047. Some experts believe the market could surpass US$ 10 trillion, making India one of the largest real estate markets globally. Source: IBEF.org
A major factor fueling this growth is the increasing demand for infrastructure across various sectors. The retail, hospitality, and commercial real estate sectors have seen substantial expansion, driven by the rapid urbanization of Indian cities and the country’s evolving economic needs.
Moreover, the real estate sector’s contribution to India’s GDP will reach 13% in 2025. This growth reflects a shift in the country’s development priorities, emphasizing modern infrastructure to support economic growth and a growing middle class. Source: Economic Times
Factors Driving NRI Interest in Indian Real Estate
The growing interest from NRIs in the Indian real estate market can be attributed to several factors.
Strong Purchasing Power Due to Currency Depreciation The depreciation of the Indian rupee has made Indian real estate significantly more affordable for NRIs. With incomes often earned in stronger currencies like the US dollar or British pound, NRIs are seeing increased purchasing power, allowing them to invest in high-value properties at attractive prices.
Key Regions Contributing to NRI Demand NRIs from countries with large, affluent Indian communities, such as the United States, United Kingdom, UAE, Canada, and Singapore, are showing strong interest in the Indian real estate market. These regions host financially capable Indian expats motivated to invest in premium properties in India.
Growing Share of NRI Buyers in Sales NRIs accounted for 23% of DLF’s total sales in FY24, a significant rise from 14% in FY23 and just 5% in FY22. This surge highlights the increasing role of NRIs in shaping the future of India’s real estate market.
Shift Toward Luxury Properties and High-End Developments
NRI Preference for Luxury Living A notable trend is the growing demand for luxury properties among NRIs. For example, nearly 27% of the units sold in DLF’s Privana West project in Gurugram were purchased by NRIs. This demonstrates their strong preference for high-end living spaces.
Developers Responding to the Shift As demand for luxury properties continues to rise, developers are focusing on offering world-class amenities and infrastructure that align with the expectations of global buyers, ensuring that Indian real estate matches the standards of international cities. Source: Economic Times
The Role of Roadshows and Overseas Engagement
To further capitalize on this NRI interest, real estate developers in India are actively reaching out to Indian communities abroad. They organize roadshows and exhibitions in key overseas markets such as the US, UK, Australia, Singapore, and Dubai.
These roadshows are designed to directly engage with potential buyers and promote India’s diverse range of real estate projects. Developers emphasize the importance of these efforts in connecting with NRIs. They mention that NRIs’ trust in India’s growth story, robust infrastructure development, and evolving lifestyle preferences make Indian real estate a compelling investment destination.
One of the highlights of these efforts is the market in Delhi NCR, which stands out as the only region among India’s top eight cities to register positive growth in home sales during the October-December period of 2024. This growth in Delhi NCR is particularly noteworthy given that, on average, housing sales in India’s major markets dipped by 26% during the same period.
NRIs Expanding Beyond Traditional Metros
Traditionally, cities like Delhi, Mumbai, and Bangalore have been the focal points for NRI real estate investments. However, there is a noticeable shift in focus as NRIs now look beyond these metropolitan areas to invest in Tier II and III cities.
According to industry experts, NRIs are increasingly expanding their portfolios to include emerging urban centers, recognizing the growth potential these cities offer. With their affordable property prices and good future prospects, these cities are becoming attractive to NRIs seeking both residential properties and investment opportunities.
One region that is growing interest is the tri-city area of Chandigarh, Mohali, and Panchkula in northern India. Known for its modern infrastructure and quality of life, this area has become a hub for NRI investments.
Similarly, areas on the outskirts of Delhi, such as Bahadurgarh and Rohtak, are also gaining traction. These locations offer more affordable property prices and the potential for higher rental yields, which make them appealing to NRIs looking for significant returns on investment.
A real estate developer like AIPL, which is undertaking a large-scale project in Ludhiana, is also seeing a surge in interest from overseas buyers. This illustrates how even more miniature cities are becoming increasingly popular among NRIs. The lower cost of living and higher rental yields make these areas good alternatives to the high-priced real estate markets in metro cities.
The Road Ahead for India’s Real Estate Market
India’s real estate sector is entering a new era of global integration, where investment from domestic buyers and NRIs will play an integral role in shaping its future. The growing confidence in India’s economy, supported by strong fundamentals, a rapidly expanding infrastructure network, and its emergence as a preferred destination for multinational corporations, is fuelling the demand for premium real estate.
This is further boosted by the increasing number of Global Capability Centers (GCCs) being set up in India, which are creating high-paying job opportunities and driving the demand for luxury housing.
The NRI segment will likely continue playing a pivotal role in this growth, with developers seeking to connect with Indian communities worldwide. As long as the global appeal of India’s real estate market remains strong and the purchasing power of NRIs continues to grow, India’s luxury property market is set to head in the right direction.
Conclusion
As India faces a slowdown in its domestic real estate market, the NRI community’s interest is becoming more important than ever. With their strong financial backing and increasing interest in luxury homes, NRIs are helping stabilize and propel India’s real estate sector forward.
Developers actively reach out to these buyers through roadshows and targeted marketing efforts in key international markets, ensuring that the NRI community remains an integral part of the Indian real estate landscape.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
Why are realtors targeting NRIs now?
Slowing domestic sales has made realtors seek NRI investment, leveraging their higher purchasing power and interest in Indian real estate, especially with long-term market growth projections.
What benefits do NRIs find in Indian property?
NRIs find investment potential, emotional connection, and diversification in Indian real estate. Long-term growth forecasts of US$5-7 trillion by 2047 make it a good option.
How is the market expected to reach US$5-7 trillion?
Urbanization, rising incomes, and infrastructural development are key drivers. Government policies and increased foreign investment contribute to the projected growth by 2047.
What types of properties are NRIs typically interested in?
NRIs often prefer luxury apartments, villas, and commercial properties in prime locations. They seek investments with high rental yields and long-term appreciation potential.
What challenges do NRIs face when investing in India?
NRIs encounter challenges like legal complexities, documentation issues, and currency fluctuations. Reputable realtors assist in navigating these, ensuring smooth transactions and secure investments.
Today’s market is set against major economic events, corporate earnings, geopolitical developments, and central bank policies that could influence market movements across Asia, the U.S., and Europe. Each factor shapes the day ahead, from Wall Street’s overnight performance to crude oil fluctuations and China’s economic measures.
Whether you’re an active investor, a day trader, or someone keeping an eye on the markets, staying ahead of global cues is crucial. So, let’s break down the key market-moving triggers straightforwardly so you can grasp the bigger picture and make sense of what’s happening.
Asian Markets: Positive Momentum
Asian markets have started the week on a positive note. Japan’s Nikkei 225 opened 0.99% higher, with the broader Topix index gaining 1.10%. South Korea’s Kospi climbed 1.23% at the open, and the small-cap Kosdaq edged up 0.32%.
China’s announcements partly drive this optimism to boost domestic consumption through various economic measures. The Chinese State Council revealed plans to increase residents’ income and implement a childcare subsidy scheme to stimulate spending, supporting expectations for a revival in Chinese demand.
The U.S. Federal Reserve is set to begin its two-day Federal Open Market Committee (FOMC) meeting tomorrow, March 18. The central bank is expected to keep interest rates unchanged in the 4.25%-4.50% range after cutting rates by 100 basis points since September 2024. Fed Chair Jerome Powell recently warned that rising tariffs could complicate inflation management. Investors will closely monitor the Fed’s statements for insights into future monetary policy.
New Tariffs and Global Responses
Trade tensions remain a key concern as President Trump’s tariff policies rattle global markets. The U.S. has implemented new tariffs, prompting retaliation from the European Union and others, resulting in significant weekly market losses over the past month. These developments have added to market uncertainty, influencing investor sentiment worldwide. Source: Money Control
U.S. Markets: Rebound Amidst Volatility
On Friday, U.S. stocks experienced their best rally since the election. The S&P 500 index increased by 2.1%, the Dow Jones Industrial Average rose by 1.7%, and the Nasdaq Composite climbed by 2.6%. Despite these gains, the week ended with declines across all major indexes: the S&P 500 fell by 2.3%, the Dow by 3.1%, and the Nasdaq by 2.4%. Investors remain cautious due to ongoing concerns about a potential recession.
Crude Oil Prices: Geopolitical Tensions and Supply Concerns
Oil prices increased significantly on Monday amid geopolitical tensions from the U.S. Defense Secretary’s remarks on Yemen’s Houthis, raising concerns about supply disruptions. Brent futures rose 1.06% to $71.33 per barrel, while U.S. West Texas Intermediate grew by 1.12% to $67.94. These developments could impact sectors sensitive to energy costs.
Currency Markets: Dollar Weakness and Euro Strength
The U.S. dollar remains close to a five-month low against major currencies due to inconsistent trade policies and weak macroeconomic data. The euro is near a five-month high after German parties agreed on a fiscal deal to boost defense spending and economic growth. The euro stands at $1.0881, and the dollar index is at 103.71, down almost 6% from January highs. Currency fluctuations can have broad implications for international markets and corporate earnings. Source: Financial Express
Gold prices crossed the $3,000 mark for the first time on Friday, marking the 13th all-time high this year. This surge comes as investors seek safe-haven assets amid growing trade war tensions and fresh tariffs imposed by President Trump, adding to market uncertainty. Elevated gold prices often reflect investor caution regarding economic stability.
Corporate Developments: Earnings and Market Movers
United Airlines Holdings Inc. shares rose by 5.4% to $73.67 on Friday, ending a six-day losing streak. Despite this increase, the stock remains 36.5% below the 52-week high of $116 achieved in January. Additionally, Nvidia’s upcoming GTC event, where the company may unveil its GB300 AI chip, is anticipated to influence the market, particularly for AI stocks such as Nvidia, Broadcom, and Taiwan Semiconductor. These corporate events can have ripple effects across related sectors. Source: Investors
Political Developments: Government Spending and Market Sentiment
The stock market received a boost with news that the U.S. government would likely avoid a shutdown. Senate Minority Leader Chuck Schumer supported a six-month provisional bill proposed by Republicans, alleviating concerns about a prolonged government closure. This decision removed a layer of uncertainty in an already volatile week, bolstering investor confidence. Political stability often plays a crucial role in market performance. Source: Business Insider
Economic Indicators: Consumer Sentiment and Industrial Output
U.S. consumer sentiment hit a two-and-a-half-year low, reflecting concerns about tariffs and inflation. In contrast, China’s industrial output grew by 5.9%, though property investment continued to lag. These indicators provide insights into economic health and potential future demand.
Conclusion
Market sentiment is being steered by a mix of economic data, corporate actions, and geopolitical factors, all of which will play a role in influencing how stocks, commodities, and currencies perform.
While U.S. markets are bouncing back after last week’s turbulence, Federal Reserve policies remain key concerns. Asian markets are off to a positive start, but investors still weigh China’s economic measures. Meanwhile, oil prices, gold trends, and currency movements complicate the day’s outlook. Market conditions can shift rapidly; being informed is your best asset in navigating the uncertainties. Stay tuned, stay alert, and invest wisely!
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
In a move that marks one of the biggest private equity (PE) transactions in India’s food and snacks industry, Singapore government’s private equity arm Temasek has agreed to buy a 10% stake in Haldiram Snacks Food Pvt. Ltd. — the parent company of India’s iconic snacks brand Haldiram’s. The deal, worth ₹8,500 crore, puts the total value of Haldiram’s business at a staggering ₹85,000 crore (about $10 billion), according to people familiar with the matter.
The agreement with Temasek is more than just a financial transaction; it’s a significant development that reflects the growing global interest in India’s booming consumer market, especially the packaged foods and snacks sector where Haldiram’s is a dominant player.
A Long Wait, But a Big Win
This investment comes after over a year of intense discussions between Haldiram’s and several potential investors. According to people aware of the deal, the family behind Haldiram’s may also sell an additional 5% stake to other suitors like Blackstone or Alphawave Global. These talks are reportedly happening at similar terms to Temasek’s offer, but nothing has been finalized yet.
The agreement with Temasek has been signed, and talks are ongoing with Blackstone and Alphawave. If successful, these additional stake sales could further consolidate Haldiram’s position as one of India’s most valuable and sought-after consumer brands.
Before we get into more details of the deal, let’s take a quick look at India’s savory snacks market — a space that’s growing fast. In FY22, the market was valued at over ₹750 billion, and it’s expected to cross ₹1 trillion by 2026. What’s more, western-style snacks hold the biggest share in the organized savory snacks segment in India.
A Rare $10 Billion Valuation in the Indian Snack Market
To understand the size of this deal, a $10 billion value for an Indian snack brand is unheard of. It shows how big Haldiram’s has become and how much potential global investors see in India’s growing packaged food market.
For Temasek, writing a cheque of this size signals deep confidence in both Haldiram’s brand power and India’s consumer story. It is also an indication of how attractive India’s homegrown businesses have become for global private equity players looking for growth opportunities in emerging markets.
Interestingly, Haldiram’s controls over 40% of India’s snacks and savory market, making it a leader by a huge margin. Its annual revenue stands around ₹14,000 crore, and its EBITDA (earnings before interest, taxes, depreciation, and amortization) margins are reportedly between 20-21% for FY24 — a sign of strong profitability in a competitive industry.
This major stake sale comes on the heels of a crucial family business reorganization. Last year, the two major branches of the Haldiram family — the Delhi and Nagpur groups — merged their businesses to create a unified entity: Haldiram Snacks Food Pvt. Ltd. (HSFPL).
Before this merger, the Delhi unit, Haldiram Snacks Pvt. Ltd. (HSPL), and the Nagpur unit, Haldiram Foods International Pvt. Ltd. (HFIPL), operated somewhat independently, often leading to confusion and internal competition.
Under the new arrangement, HSPL shareholders now hold 56% in the new company, while HFIPL shareholders own 44%.
The Delhi business was mainly led by Manohar Agarwal and Madhu Sudan Agarwal, while the Nagpur business was run by Kamalkumar Shivkisan Agrawal, a grandson of the founder Ganga Bhishen Agarwal, who first started Haldiram’s as a small sweet shop in Bikaner in 1937.
This consolidation streamlined operations and opened doors for major investors such as Temasek.
What started as a modest sweet shop almost nine decades ago has transformed into a global snack empire. Today, Haldiram’s boasts a portfolio of over 400 products, ranging from namkeens, sweets, and ready-to-eat meals to frozen foods, biscuits, beverages, and pasta.
The brand’s reach extends far beyond Indian shores. Haldiram’s exports to more than 100 countries, including major markets like the United States and Europe.
Despite the increasing competition from global giants like PepsiCo and Indian brands like Balaji Wafers, Bikanervala, ITC, Parle Products, and Prataap Snacks, Haldiram’s continues to dominate thanks to its deep market penetration, strong distribution network, and unmatched brand loyalty.
Interestingly, there are also plans to take Haldiram’s public within the next 24 to 36 months, according to people close to the development. This potential IPO would not only provide an exit route for private equity investors like Temasek but could also turn Haldiram’s into one of India’s most valuable publicly traded consumer companies.
Though nothing official has been announced yet, a listing of this magnitude would mark a significant moment for Indian family-run businesses entering global capital markets.
Why Everyone Wants a Bite of Haldiram’s
Investors’ growing interest in Haldiram’s is easy to understand when one looks at the numbers and the broader market trends:
Strong Market Position: Controlling over 40% market share in India’s organized savory snacks market is no small feat. This leadership provides a strong base for further growth.
Steady Revenue and Profitability: With ₹14,000 crore in revenue and 20-21% EBITDA margins, Haldiram’s is not just big, but also highly profitable — a rare combination in India’s snacks industry.
Consistent Growth: The company has been growing at a compounded annual growth rate (CAGR) of 16-17%, demonstrating its ability to scale up consistently.
Strong Brand Recall: In India, Haldiram’s is almost a household name. Whether it’s packaged snacks on supermarket shelves or quick bites at Haldiram’s outlets, the brand connects deeply with consumers.
Global Potential: As Indian cuisine gains popularity worldwide, brands like Haldiram’s are well-positioned to ride this wave in international markets.
A Sign of Maturing Indian Consumer Market
Deals like this highlight how India’s consumer market is maturing and gaining popularity among global investors. The growing middle class, increasing urbanization, and a shift toward branded packaged food are trends that are here to stay.
It’s not just about snacks. India’s food and beverages sector is set to see major transformations in the coming years, with global funds lining up to back strong, homegrown brands.
The Road Ahead for Haldiram’s
While Temasek’s entry brings in capital and global expertise, the company still faces challenges ahead.
Keeping up with changing consumer tastes, especially with the health and wellness trend picking up pace.
Managing competition from both established brands and emerging players.
Navigating regulatory hurdles and supply chain complexities, especially when expanding internationally.
And, of course, successfully executing a public listing when the time comes.
Final Word
Temasek’s high-profile investment in Haldiram’s is not just about snacks — it’s a story of a homegrown brand that has stood the test of time, evolving from a small sweet shop to a ₹85,000 crore giant.
As the deal unfolds and possibly opens doors to other investors, Haldiram’s journey could become a defining chapter in India’s consumer brand success stories — a reflection of how traditional family businesses can adapt, modernize, and scale with the right partnerships.
If the IPO comes through in the next few years, Haldiram’s may very well become a brand that not only fills snack shelves across the world but also captures the imagination of investors on Dalal Street.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
FAQ
Why did Temasek invest in Haldiram’s?
Temasek sees Haldiram’s strong market position and growth potential in India’s booming packaged food sector, aiming to capitalize on its global expansion.
How much did Temasek invest, and what stake did they acquire?
Temasek invested ₹8,500 crore, acquiring approximately a 10% stake in Haldiram’s, signaling a significant vote of confidence in the company.
What impact will this investment have on Haldiram’s?
The investment will fuel Haldiram’s expansion plans, enhance its infrastructure, and support its ambitions to strengthen its global footprint.
How does this deal affect Haldiram’s existing market position?
The investment reinforces Haldiram’s market leadership, providing financial backing and strategic support to further solidify its dominance and accelerate growth.
India’s digital landscape is on the verge of a major shift. Elon Musk’s Starlink, the ambitious satellite-based internet service by SpaceX, is gearing up to make its mark in the Indian market. Its arrival has set off a race among telecom giants, policymakers, and industry leaders, all eager to stake their claim in this next-gen connectivity revolution. But what does this mean for India’s internet future? Let’s break it down.
Starlink’s Foray into India: A New Frontier
Starlink, a satellite-based internet service by SpaceX, is designed to provide global high-speed internet coverage through a network of low Earth orbit (LEO) satellites. Starlink’s technology enables direct internet access from space, unlike traditional broadband services that rely on fiber-optic cables or cellular towers. This eliminates the dependency on extensive ground infrastructure, making it an ideal solution for countries like India, where network accessibility remains challenging in many regions.
India has one of the world’s most significant internet users, but over 40% of its population still lacks reliable connectivity, particularly in rural and remote areas. According to recent reports, rural internet penetration in India remains significantly lower than in urban areas due to infrastructural limitations, high deployment costs, and challenging terrains. Traditional broadband infrastructure has failed to reach many villages in states with difficult topographies, such as Ladakh, Arunachal Pradesh, and parts of Uttarakhand.
Bridging the Connectivity Gap
Starlink’s LEO satellite technology offers a potential solution by providing uninterrupted, high-speed internet coverage regardless of terrain. Unlike geostationary satellites, which orbit 35,786 km above Earth, Starlink satellites operate at a much lower altitude of around 550 km. This reduces latency (the delay in data transmission) and improves internet speed, making it suitable even for bandwidth-heavy applications such as video streaming, gaming, and telemedicine.
If successfully launched in India, Starlink could bring connectivity to over 700,000 unconnected villages, boosting digital inclusion, e-governance, remote education, and online healthcare services. Moreover, it could enhance internet reliability during natural disasters, as satellite-based services are less vulnerable to infrastructure damage than traditional fiber-optic networks. Source: The Hindu
Telecom Titans Aligning with Starlink
Recognizing the potential of satellite internet, major Indian telecom companies have strategically moved to collaborate with Starlink rather than compete against it. This shift is significant, as India’s telecom sector has historically relied on fiber-optic and cellular networks for internet expansion. However, any collaboration is subject to SpaceX receiving its authorization to sell Starlink in India.
Bharti Airtel: On March 11, 2025, Bharti Airtel, India’s second-largest telecom provider, announced a partnership with SpaceX to explore bringing Starlink services to India. Airtel, which already has a presence in the satellite broadband market through its stake in OneWeb, sees this collaboration as a way to enhance connectivity in remote and mountainous regions.
Airtel’s strengths lie in its deep regulatory expertise, customer base, and existing network infrastructure, which could be crucial in facilitating Starlink’s rollout. The company is expected to integrate Starlink’s satellite technology with its terrestrial infrastructure, improving service reliability in areas where fiber-optic expansion is not viable.
With India prioritizing rural broadband expansion, Airtel’s partnership with Starlink could significantly contribute to government initiatives like Digital India and BharatNet, which aim to provide broadband access to villages and underserved regions.
Reliance Jio: Not to be outdone, Reliance Jio, the country’s largest telecom operator, revealed its agreement with SpaceX on March 12, 2025. Unlike Airtel, which has a stake in OneWeb, Jio has no prior satellite broadband investments, making this collaboration a strategic move to enter the space-based internet market.
Jio’s approach differs from Airtel’s in that it plans to leverage its extensive retail network to distribute Starlink equipment, simplifying purchasing, setting up, and activating satellite internet services across India. Jio’s dominance in the 4G and fiber broadband market, with over 450 million subscribers, gives it a significant edge in reaching a broader consumer base.
Additionally, Jio’s partnership could help bring down the cost of Starlink’s user terminals, making the service more affordable for middle-class and rural consumers. Given Jio’s history of disrupting the Indian telecom industry with aggressive pricing, its involvement in satellite broadband could push competition further, benefiting consumers with cheaper internet plans and better service coverage. Source: LiveMint
Government Policies Shaping the Satellite Internet Landscape
The Indian government’s stance on spectrum allocation has been pivotal in shaping the satellite internet sector:
Spectrum Allocation: In January 2025, India decided to allocate satellite spectrum without auction, aligning with global practices. This move lowers entry barriers for foreign companies like Starlink, fostering a more competitive environment.
Licensing and Approvals: While partnerships are forming, Starlink still awaits operating licenses to commence services in India. The government’s approach to these approvals will significantly influence the timeline and success of satellite internet deployment.
Implications for Internet Users in India
The advent of satellite-based internet services like Starlink brings several potential benefits and challenges for Indian consumers:
Enhanced Connectivity: For residents in remote or underserved areas, satellite internet can provide reliable access where traditional networks are absent or unreliable.
Competitive Pricing: The entry of new players could lead to more competitive pricing and improved service quality across the board.
Technological Adoption: Users may need to invest in specific equipment to access satellite services, which could be a consideration for widespread adoption. Source: Economic Times
Navigating the Future: Opportunities and Considerations
As Starlink and its partners navigate the regulatory and operational landscape, several factors will influence the future of internet connectivity in India:
Regulatory Compliance: Securing the necessary licenses and adhering to local regulations will be crucial for a smooth rollout of services.
Infrastructure Development: Collaborations with local telecom providers can facilitate the establishment of ground infrastructure, ensuring seamless integration with existing networks.
Consumer Awareness: Educating potential users about the benefits and requirements of satellite internet will be essential for adoption, especially in rural areas.
In conclusion,
Starlink’s entry into India, backed by partnerships with telecom giants like Bharti Airtel and Reliance Jio, marks a significant milestone in the country’s digital journey. As government policies evolve to accommodate new technologies, the landscape of internet connectivity in India is poised for a transformative shift, promising broader access and enhanced services for millions.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Sun Pharmaceuticals, India’s largest drugmaker by market value, has announced that it will acquire Checkpoint Therapeutics, a NASDAQ-listed biotechnology company, in a deal valued at $355 million. This strategic move, announced on March 10, 2025, marks an essential step for Sun Pharma as it aims to strengthen its presence in oncology and immunotherapy — two of the fastest-growing segments in the global pharmaceutical industry. Source: Economic Times/Reuters
With this acquisition, Sun Pharma will gain access to UNLOXCYT — an FDA-approved anti-PD-L1 treatment for advanced cutaneous squamous cell carcinoma (cSCC). This deal will strengthen Sun Pharma’s cancer drug portfolio and offer a new treatment option for cSCC patients. The acquisition is expected to be completed by the second quarter of 2025.
Overview of the Global Oncology Drugs Market
Before diving into the deal details, let’s look at the global oncology market landscape. The global oncology drugs market was valued at USD 201.75 billion in 2023 and is expected to grow to USD 518.25 billion by 2032, expanding at a CAGR of 11.3% from 2024 to 2032. In 2023, North America led the market, holding a 45.92% share.
Oncology drugs include a wide range of treatments like targeted therapies, chemotherapy, immunotherapy, and hormone therapies used to fight cancer. Factors such as the rising number of cancer cases, frequent new drug launches and approvals, and increased research and development by pharmaceutical companies drive the market’s growth.
Once the deal is completed, Sun Pharma will acquire all outstanding shares of Checkpoint. Shareholders will receive $4.10 in cash per share, without interest, along with a non-transferable contingent value right (CVR) that could give them up to an additional $0.70 per share in cash, based on milestone achievements.
Upon completion of the transaction, Checkpoint will become a wholly-owned subsidiary of Sun Pharma, giving the Indian drug giant full control over Checkpoint’s pipeline of cancer therapies. Source: cnbcTV18:
What Does Checkpoint Therapeutics Do?
Founded in 2014, Checkpoint Therapeutics is a clinical-stage biotechnology company that develops and commercializes novel immunotherapies and targeted oncology drugs. Its lead product candidate is cosibelimab, an anti-PD-L1 antibody designed to treat various types of cancer.
The company holds a U.S. FDA license for UNLOXCYT (cosibelimab-ipdl) — an anti-PD-L1 therapy approved for treating adults with metastatic cutaneous squamous cell carcinoma (cSCC) or locally advanced cSCC who are not eligible for curative surgery or radiation. Source: Economic Times
Sun Pharma’s Perspective on the Acquisition
According to Sun Pharma, adding UNLOXCYT, an FDA-approved anti-PD-L1 treatment for advanced cutaneous squamous cell carcinoma (cSCC), to its portfolio will help make this important therapy accessible to more patients worldwide. The company also noted that the acquisition would enhance its innovative offerings in the onco-dermatology space.
Checkpoint’s View on Partnering with Sun Pharma
The company believes that partnering with Sun Pharma to bring the first and only FDA-approved anti-PD-L1 treatment for advanced cSCC to market is a crucial next step in ensuring UNLOXCYT reaches patients in need of a unique immunotherapy option. They also believe that this transaction will maximize shareholder value while helping to speed up UNLOXCYT’s availability in the U.S., Europe, and other global markets.
Acquiring Checkpoint could help Sun Pharma diversify beyond its traditional strengths in generics and dermatology. It may also help the company gain a foothold in the U.S. specialty drugs market, particularly in oncology, where innovative therapies command higher prices and longer exclusivity periods.
Checkpoint’s expertise in developing immune checkpoint inhibitors also means Sun Pharma could leverage existing research and development (R&D) capabilities for future immunotherapy products. This would be important as the global oncology drug market is expected to grow rapidly over the next decade, driven by increasing cancer incidence and demand for innovative treatments.
Industry Context
Sun Pharma’s move comes at a time when global pharmaceutical companies are actively pursuing acquisitions to strengthen their oncology pipelines. Immuno-oncology has become one of the most promising areas in cancer treatment, with PD-1/PD-L1 inhibitors generating billions in annual sales worldwide.
Entering this space through an innovative asset like cosibelimab reflects Sun Pharma’s attempt to position itself in next-generation cancer therapies.
Looking Ahead
After the acquisition, Sun Pharma will become an essential new player in immunotherapy, opening up new revenue streams in both the U.S. and global markets. Furthermore, the expertise and intellectual property gained from Checkpoint could pave the way for future oncology innovations under the Sun Pharma umbrella.
This acquisition also reflects a broader trend of Indian pharmaceutical companies moving beyond generics, focusing on innovative biologics and specialty drugs to tap into higher-margin markets.
Sun Pharma’s $355 million acquisition of Checkpoint Therapeutics signals a strategic shift toward cutting-edge oncology and immunotherapy treatments. With a growing need for affordable cancer therapies, this deal could reshape Sun Pharma’s role in the global pharmaceutical landscape.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
FAQs
Why did Sun Pharma acquire Checkpoint?
Sun Pharma aims to strengthen its oncology portfolio, capitalizing on the growing market. Checkpoint’s assets align with their strategic expansion in cancer therapies.
What does Checkpoint bring to Sun Pharma?
Checkpoint provides access to innovative cancer treatments and research, enhancing Sun Pharma’s pipeline. This acquisition will boost their presence in the competitive oncology space.
How does this acquisition relate to the oncology market’s growth?
With the oncology market projected to reach $518 billion by 2032, Sun Pharma’s move positions them to capture a significant share of this expanding market.
What is the significance of the $355M deal?
The $355 million investment reflects Sun Pharma’s commitment to oncology, signaling a major strategic move to acquire assets and drive future growth.
What impact will this have on cancer patients?
The acquisition may lead to faster development and wider availability of new cancer treatments, potentially improving patient outcomes and expanding therapeutic options.
In the bustling streets of India’s cities, a new kind of shopping experience has taken root: quick commerce, or Q-commerce. This model promises ultra-fast delivery of essentials, often within minutes, catering to the ever-increasing demand for speed and convenience.
Leading the charge are platforms like Blinkit, Zepto, and Swiggy Instamart. Now, global e-commerce titan Amazon is gearing up to challenge these players with its own secret weapon – “Amazon Now”.
This move positions Amazon alongside rapid delivery services from companies like Zomato’s Blinkit and Swiggy’s Instamart, which offer deliveries as quickly as 10 minutes.
The Rise of Quick Commerce in India
India’s quick commerce industry has experienced extraordinary growth, with sales soaring by over 280% in the past two years, according to a report by financial services firm Chryseum. As of 2024, the sector was valued at USD 3.3 billion and is expected to expand significantly, reaching USD 9.95 billion by 2029.
This growth is driven by a compound annual growth rate (CAGR) of over 4.5% during the forecast period (2024-2029), which highlights the increasing consumer demand for ultra-fast delivery services.
Amazon’s Foray into Quick Commerce
Recognizing the potential of this growing market, Amazon initiated trials for its quick commerce service, ‘Amazon Now,’ in early 2024. The initial pilot was launched in Whitefield, Bengaluru—an area where Amazon enjoys high customer density, particularly among its Prime subscribers. The company set up four dark stores to manage local deliveries and soon scaled operations to 2,000 daily orders.
After laying the groundwork throughout 2024, and a limited launch in January-February, Amazon is now scaling up Amazon Now. The company plans to establish 300 dark stores across India’s top three cities—Delhi-NCR, Mumbai, and Bengaluru—by the end of 2025.
According to sources, the number of dark stores had grown to five by last week, with an immediate goal of reaching 100 stores within the next three to six months. Amazon’s next step will be expanding Amazon Now to more areas within Bengaluru.
The company’s quick commerce approach is similar to that of existing players. Each dark store caters to a 2-3 km radius, ensuring delivery within 10-15 minutes. The average order value is around INR 550, with a strong focus on grocery essentials—just like Blinkit, Zepto, and Instamart.
However, it has a unique advantage—its extensive Prime membership base. With an estimated 16-20 million Prime users in India, Amazon already has access to a massive pool of urban, convenience-driven shoppers. These users comprise over half of India’s 30 million quick-commerce buyers. Leveraging its vast data and AI capabilities, Amazon is poised to personalize and optimize its offerings better than its competitors. Source: Economic Times
The Power of Prime: Amazon’s Secret Weapon
Amazon’s Prime subscribers could be the key to its quick commerce success. In the Whitefield pilot, Amazon opened ‘Amazon Now’ access to only 1% of its Prime customers. Even at this limited scale, the results were promising. The giant’s quick commerce business could grow exponentially once the service expands to all Prime users.
Despite being one of the biggest brand names, it wasn’t all smooth sailing for Amazon, as the company faced its fair share of challenges. By mid-2024, Amazon reached a critical point in India, struggling with growing regulatory hurdles and a shifting political landscape.
The global e-commerce giant was forced to reassess its strategy—once known for its aggressive expansion, it adopted a more cautious approach. Regulatory changes compelled Amazon to distance itself from the large sellers it had previously depended on, resulting in layoffs and leadership reshuffles.
Despite these hurdles, Amazon pushed forward. It launched ‘Bazaar,’ a low-price merchandise business, to counter Meesho’s dominance in the unbranded, value-commerce space.
The Team Driving Growth Now
Amazon has assembled a top-tier team to lead its quick commerce division. To build this new business, Amazon aggressively hires across multiple functions, including planning, forecasting, customer acquisition, business analytics, and product management. Many hires are sourced from Amazon’s existing Grocery and Everyday Essentials teams.
Why Quick Commerce Now?
Amazon, like Flipkart and BigBasket, initially underestimated the quick commerce trend. The company viewed it as a passing phase, believing that traditional e-commerce with scheduled deliveries would remain dominant. However, as market leaders like Blinkit and Zepto scaled rapidly, Amazon realized it needed to adapt.
One of the reasons for Amazon’s slow entry was its decision-making structure. Unlike its startup-style competitors, Amazon India’s major business moves require approval from its Seattle headquarters. This resulted in a long lead time from conceptualization to execution. Despite this slow start, Amazon is now fully committed to catching up. thearcweb.com
The Competitive Landscape and Amazon’s Strategy
Amazon’s biggest challenge is that it is starting behind well-established players. Zomato Blinkit handles around 1.2 million daily orders, Zepto processes 1.1 million, Swiggy Instamart serves 900,000, and Tata BigBasket delivers 300,000. Flipkart, Amazon’s direct rival, has also entered quick commerce, crossing 100,000 orders per day.
What changed Amazon’s mind? Blinkit’s financial performance played a role. The company reported an adjusted EBITDA-positive quarter in March 2024, proving that quick commerce could be profitable. Blinkit posted INR 769 crore in revenue with a loss of just INR 37 crore for the January-March 2024 quarter, showing significant growth and improved unit economics.
Amazon believes it has certain advantages that will help it succeed despite its late entry:
Prime Subscriber Base – With millions of loyal Prime users, Amazon already has a built-in customer base for quick commerce.
Tech and AI Capabilities – Amazon’s data-driven approach could improve inventory management and demand forecasting.
Logistics Strength – While Amazon is a logistics powerhouse, it partnered with last-mile delivery firm LoadShare for quick commerce fulfillment.
Focus on Urban Markets – Amazon expects a major shift in delivery preferences in metro cities, making quick commerce an essential part of its future strategy.
Looking Beyond India: Amazon’s Global Quick Commerce Plans
Interestingly, Amazon’s quick commerce expansion isn’t limited to India. The India team is also playing a role in developing similar operations in the UAE and Saudi Arabia. This suggests that Amazon sees quick commerce as a global opportunity, not just an Indian market trend.
Challenges Ahead
Despite its strengths, Amazon faces notable challenges in this competitive landscape:
Established Competitors: Players like Blinkit, Zepto, and Swiggy Instamart have already captured substantial market share and have fine-tuned their operations to cater to local preferences.
Operational Complexity: Quick commerce demands meticulous coordination between inventory management, order processing, and last-mile delivery. Ensuring seamless operations at scale will be a critical test for Amazon.
Regulatory Environment: Navigating India’s regulatory landscape requires compliance with various laws and guidelines, necessitating a strategic approach to align with local regulations.
Can Amazon Win the Quick Commerce Race?
Amazon has already invested over $6.5 billion in India. With quick commerce gaining traction, it cannot afford to sit on the sidelines. The company is betting that the demand for instant deliveries will only grow, particularly in urban areas. However, success in this space will require rapid expansion, aggressive customer acquisition, and efficient operations.
The challenge? Competition is fierce, and Blinkit, Zepto, and Swiggy Instamart have a strong first-mover advantage. Amazon must scale quickly while ensuring profitability—something even established players struggle with.
Despite these hurdles, Amazon’s deep pockets, technological expertise, and loyal Prime user base could make it a formidable player in the quick commerce battle. If it executes its strategy well, Amazon Now could soon become a major contender in India’s instant delivery revolution.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
FAQ
What are Amazon’s dark stores?
They’re small, localized warehouses optimized for rapid delivery, not customer visits. Amazon uses them to fulfill quick commerce orders, competing with existing players.
Why is Amazon entering the quick commerce market?
The market’s projected $9.95 billion value by 2029 presents a significant growth opportunity. Amazon aims to capture a share by leveraging its logistics and reach.
How does Amazon’s strategy differ from existing quick commerce giants?
Amazon leverages its existing infrastructure and vast product selection, while others focus on hyper-local, limited assortments, and often, exclusive partnerships with local vendors.
What impact will Amazon’s entry have on the quick commerce market?
Increased competition, potentially driving down prices and improving delivery times. It could also consolidate the market, with Amazon’s scale posing a challenge to smaller players.
What does the $9.95 billion market projection signify?
It indicates strong consumer demand for ultra-fast delivery. This growth is driven by changing consumer habits and the increasing convenience of online shopping.
India’s retail market has experienced remarkable growth over the past decade, expanding from ₹35 lakh crore in 2014 to ₹82 lakh crore in 2024, reflecting an annual growth rate of approximately 8.9%.
This growth highlights India’s economic progress and rising consumer spending. The retail sector is set to expand further, with estimates suggesting it could exceed ₹190 lakh crore by 2034.
A report titled “Winning in Bharat: The Retail Kaleidoscope” by Boston Consulting Group (BCG) and the Retailers Association of India (RAI) attributes this growth to India’s strong economy and its diverse, evolving consumer base. Economic Times
This growth offers huge opportunities for retailers who can understand India’s diverse shoppers and changing buying habits.
4 key Factors Driving India’s Retail Growth
Several key elements have contributed to this robust expansion:
Economic Prosperity: India’s consistent GDP growth has elevated disposable incomes, enabling increased consumer spending across various retail segments. The number of affluent households in India is expected to triple by 2030, creating significant opportunities in premium and luxury retail segments. dtnext.in
Urbanization: The rapid shift towards urban living has driven the growth of modern retail stores, offering city shoppers more convenience and variety.
Evolving Consumer Demographics: The increasing participation of women in the workforce and the prominence of Gen Z and millennials are reshaping consumption patterns, leading to heightened demand in categories like beauty, personal care, and fashion. dtnext.in
Digital Adoption: The expansion of urban centers and the rise of digital technology are shaping shopping habits as consumers embrace online and offline retail experiences. The report also emphasizes the increasing significance of an omnichannel approach fueled by the growth of digital payments and online shopping. However, more than 58% of purchases still occur in physical stores.
Global trends and brands increasingly inspire Indian consumers. However, a strong sense of local pride also influences purchasing decisions and brand preferences. The report highlights that retailers who understand and adapt to India’s diverse demographics and contrasting consumer behaviors will have the greatest growth opportunities.
Retailers that combine deep consumer insights with sharp execution—whether online, offline, or both—can keep up with India’s rapid retail expansion and set new benchmarks for the next decade of growth.
Opportunities and Challenges
The path forward is filled with both opportunities and challenges:
Tier II and III Cities: These regions are emerging as new retail hubs, contributing over 50% of e-commerce transactions. Consumers in these areas exhibit a blend of aspirations and value-consciousness, prompting brands to expand aggressively beyond metros.
Omnichannel Strategies: The modern Indian consumer no longer distinguishes between online and offline shopping. Retailers are adopting omnichannel strategies, integrating physical stores with digital platforms to provide a seamless shopping experience.
Sustainability: With rising environmental consciousness, consumers actively seek eco-friendly products and ethical sourcing. Brands launching recyclable packaging and sustainable supply chains are attracting environmentally conscious shoppers. Economic Times Retail
Conclusion
India’s retail market is set to grow further, with estimates suggesting it could cross ₹190 lakh crore by 2034—more than double its current size. This growth offers huge opportunities for retailers who can adapt to India’s diverse consumers and changing shopping habits.
Reaching ₹82 lakh crore in 2024 shows the retail sector’s strength and ability to adapt. As it grows further, businesses must stay flexible, inclusive, and innovative to meet the needs of India’s diverse and ever-changing consumer base.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What are the primary drivers propelling India’s retail market from ₹82 Lakh Cr to ₹190 Lakh Cr by 2034?
Key factors include E-commerce expansion, rising disposable incomes, urbanization, and a young, tech-savvy population. Increased internet penetration fuels online shopping, while higher incomes boost discretionary spending. Urban migration concentrates on consumers, and a youthful demographic embraces modern retail formats and digital platforms, driving substantial growth.
How does e-commerce contribute to this projected retail market expansion?
E-commerce democratizes access, reaching remote areas and offering vast product ranges. Digital payment adoption simplifies transactions, and personalized online experiences enhance customer engagement. Logistics improvements ensure faster deliveries, while competitive pricing attracts budget-conscious consumers. This convenience and accessibility significantly expand the market reach, contributing to the projected growth.
How does rising disposable income impact India’s retail sector growth?
Increased disposable income allows consumers to spend more on non-essential goods and services. This drives demand for premium products, fashion, electronics, and lifestyle experiences. The growing middle class seeks better quality and brand experiences, leading to higher average spending per customer and boosting overall retail revenue.
How does urbanization influence the projected retail growth in India?
Urbanization concentrates populations, creating dense consumer markets. This fosters the development of organized retail formats like malls and supermarkets. Improved infrastructure and connectivity in urban areas facilitate efficient supply chains and logistics. The concentration of consumers also attracts investments in retail infrastructure and modern shopping experiences.
What role does India’s young, tech-savvy population play in this retail growth?
India’s youthful demographic readily adopts digital technologies, driving online shopping and digital payments. Their preference for convenience and personalized experiences fuels demand for e-commerce and omnichannel retail. They are early adopters of new trends and brands, influencing broader market dynamics and accelerating retail sector growth.
In the bustling streets of India, a culinary revolution has been simmering, transforming a modest Himalayan dumpling into a colossal ₹30,000 crore industry. The momo, once a humble snack, has become a national obsession, captivating taste buds and carving a significant niche in the fast-food sector.
The Momo’s Journey: From Niche to Nationwide
In the late 1990s, momos were a rare delicacy found primarily in small eateries run by Tibetan refugees and Nepalese migrants. These establishments served traditional steamed dumplings filled with meat or vegetables and spicy chili sauce. Fast forward to today, and momos have become a ubiquitous street food, available in myriad variations across the country. Whether roadside stalls, high-end restaurants, or packaged frozen food aisles in supermarkets, momos are now integral to India’s food scene.
The momo industry in India remains unorganized mainly, with street vendors and small businesses dominating the landscape. However, Wow! Momo has emerged as a benchmark for gauging the industry’s growth, setting the standard for organized momo retail and expansion.
Leading the charge is Wow! Momo was founded in 2008 by Sagar Daryani and Binod Homagai with a modest investment of ₹30,000. From a single kiosk in Kolkata, Wow! Momo has expanded to over 680 outlets across 30 cities, offering innovative momo varieties that cater to diverse palates. The company’s success has attracted significant investments, including ₹130 crore from Tiger Global Management in 2019, valuing the chain at ₹860 crore. By 2024, Wow! Momo’s valuation soared to over ₹2,400 crore, following a ₹410 crore funding round led by Khazanah Nasional Berhad and OAKS Asset Management (Livemint).
The success of Wow! Momo has inspired many other food startups to follow a similar business model, creating more structured and scalable momo businesses. This has resulted in the emergence of brands such as Prasuma, which focuses on high-quality frozen momos, catering to the growing demand for ready-to-eat products.
Recognizing the growing demand for ready-to-eat options, momo brands have ventured into the fast-moving consumer goods (FMCG) sector. Wow! Momo’s FMCG division, launched in 2023, achieved ₹60 crore in revenue within its second year, offering frozen momos and cup noodles through retail channels.
Similarly, Prasuma, a Gurugram-based brand known for its frozen momos, has gained popularity for providing convenient, high-quality products. In February 2025, ITC Ltd. announced plans to acquire Prasuma, aiming to strengthen its presence in the frozen foods market, which boasts an annual size of over ₹10,000 crore (Livemint).
This shift toward the FMCG sector signifies the momo industry’s transformation beyond street food. The ability to reach supermarket shelves has allowed momo brands to tap into India’s evolving consumer habits, where convenience and quality play a crucial role. It also signals potential global expansion, as Indian brands may begin exporting frozen momos to international markets.
Cultural Integration and Regional Adaptations
The momo’s widespread appeal can be attributed to its adaptability. Vendors and restaurants have introduced variations tailored to regional tastes, incorporating local spices and ingredients. From tandoori momos in North India to chocolate-filled momos for dessert enthusiasts, the versatility of this dish has endeared it to a broad audience. Momos have become an integral part of the street food culture in cities like Kolkata, with establishments like Blue Poppy Thakali serving hundreds of plates daily (Livemint).
The Road Ahead
As the momo industry continues to flourish, companies are exploring new avenues for growth. Wow! Momo, for instance, plans to go public within the next two years, aiming to replicate the success of global fast-food giants. The brand also seeks to expand its store count to 1,000 and double its revenue to ₹1,000-1,200 crore by 2027. With the increasing popularity of frozen and ready-to-eat momos, the industry’s trajectory points toward sustained expansion, driven by innovation and an ever-growing consumer base (Livemint).
In essence, the momo’s evolution from a regional delicacy to a national sensation exemplifies the dynamic nature of India’s culinary landscape. Its journey reflects changing consumer preferences and the potential for traditional foods to achieve commercial success on a grand scale.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
Why have momos become so popular in India?
Momos have gained popularity due to their affordability, versatility, and ability to cater to a variety of tastes with different fillings and cooking styles.
Which are the leading momo brands in India?
Some of the leading momo brands in India include Wow! Momo, Prasuma, and several street food vendors who have built strong local reputations.
How big is the Indian momo industry?
The Indian momo industry is valued at approximately ₹30,000 crore and continues growing rapidly with increasing demand for street food and frozen momos.
What are the different types of momos available?
Momos come in various forms, including steamed, fried, tandoori, and pan-fried. They can be filled with vegetables, paneer, chicken, pork, or sweet fillings like chocolate.
Are frozen momos as good as freshly made ones?
Frozen momos have improved significantly in quality and taste, making them a convenient alternative. Brands like Prasuma and Wow! Momo offers high-quality frozen options that closely resemble freshly made momos.
SpiceJet, one of India’s prominent budget airlines, recently announced a return to profitability in the third quarter of the financial year 2024-2025, reporting a net profit of ₹26 crore. This marks a significant turnaround from the ₹300 crore loss recorded during the same period the previous year.
Despite this positive development, the airline’s shares experienced a 6% decline on 27th February 2025, leaving investors puzzled. Let’s delve into the factors contributing to this unexpected market reaction.
The December 2024 quarter showcased SpiceJet’s resilience, with total revenue surging by 35% to ₹1,651 crore. This growth was primarily driven by robust passenger demand and enhanced operational efficiency. Notably, for the first time in a decade, the company’s net worth turned positive, underscoring the success of its turnaround strategy. Economic Times
SpiceJet’s Financial Highlights
Quarterly Comparison
In the previous quarter ending September 2024, SpiceJet had reported a loss of ₹441.7 crore.
Revenue Decline
Revenue from operations fell 35% YoY to ₹1,140.7 crore from ₹1,756.6 crore last year.
Quarterly Revenue Performance
For Q3FY25, operational revenue stood at ₹817.1 crore.
EBITDA Growth
EBITDA surged to ₹210 crore from ₹3 crore; excluding forex impact, it rose to ₹316 crore from ₹30 crore.
Net Worth Improvement
The company achieved a net worth of ₹70 crore, turning positive for the first time in a decade.
Despite the encouraging financial results, SpiceJet’s shares fell by 6% following the announcement. Several factors may have contributed to this decline:
Profit Margins and Sustainability Concerns: While a ₹26 crore profit is a positive sign, it remains modest relative to the airline’s revenue base. Investors might be cautious, questioning whether this profitability is sustainable in the long term, especially given the competitive nature of the aviation industry.
Historical Financial Instability: SpiceJet has faced financial turbulence, including delayed earnings announcements and significant losses. This history may lead investors to adopt a “wait and see” approach, affecting immediate market confidence. LiveMint
Operational and Legal Hurdles: The airline has been entangled in various operational challenges and legal disputes. For instance, two former pilots recently approached the National Company Law Tribunal (NCLT), seeking insolvency proceedings against SpiceJet over unpaid dues. Such legal issues can raise concerns about the company’s financial health and management practices.
Broader Market Sentiments: The overall stock market environment is crucial in individual stock performances. If the broader market is experiencing volatility or bearish trends, even companies reporting positive results might see their share prices decline as part of a wider market movement.
Operational Highlights
In January 2025, SpiceJet reintroduced its first grounded Boeing 737 MAX aircraft into service to enhance operational capacity and cater to high-demand routes such as Jeddah and Riyadh. This move was anticipated to boost revenue and improve market share. LiveMint
However, the airline continues to grapple with challenges, including resolving disputes with lessors and vendors. The airline mentioned that approximately 70% of claims with lessors and vendors have been settled, indicating progress and highlighting ongoing financial obligations. Moneycontrol
For current and potential investors, it’s essential to weigh both the positive strides and the existing challenges:
Return to Profitability: The shift from a substantial loss to a profit within a year showcases effective management strategies and operational improvements.
Positive Net Worth: Achieving a positive net worth after a decade signifies a strengthened financial position.
Areas of Caution:
Modest Profit Levels: The relatively small profit margin may raise questions about long-term profitability and growth prospects.
Ongoing Legal and Financial Issues: Pending disputes and financial obligations could impact future earnings and operational stability.
Conclusion
SpiceJet’s return to profitability in Q3 FY25 is a significant achievement, reflecting the company’s resilience and strategic efforts amidst a challenging environment. However, the subsequent 6% decline in share price underscores the complexities of investor sentiment, influenced by factors such as profit sustainability, historical financial instability, ongoing legal challenges, and broader market conditions.
As the airline navigates these challenges, stakeholders will keenly observe its strategies to maintain and enhance profitability, resolve outstanding disputes, and strengthen its market position in the competitive aviation sector.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
Why did SpiceJet’s shares drop despite a profit?
Despite a ₹26 crore Q3FY25 profit, shares fell due to concerns about the profit’s sustainability, ongoing financial restructuring, heavy debt load, and operational challenges like fleet availability and competitive pressures. Investors are wary of long-term stability amidst these factors.
What are the key reasons for the market’s adverse reaction?
The market reacted adversely due to high debt, uncertain profits, reliance on one-time gains, and operational challenges. Investors worry about SpiceJet’s long-term stability and competitiveness despite its quarterly profit.
Is the profit indicative of a turnaround for SpiceJet?
While the profit is a positive sign, it doesn’t guarantee a full turnaround. Significant debt and operational hurdles remain. Future profitability hinges on successful restructuring, consistent operational efficiency, and addressing financial liabilities, making long-term stability uncertain.
What operational challenges does SpiceJet face?
SpiceJet faces challenges like fleet availability due to maintenance and financial constraints, intense competition impacting yields, and fluctuating fuel prices. These operational hurdles affect profitability and investor confidence. Consistent operational efficiency and cost management are crucial for sustained financial health.
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An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
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An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
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