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.
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