India and Singapore have recently signed a Letter of Intent (LOI) to develop a Green and Digital Shipping Corridor (GDSC), marking a significant advancement in maritime collaboration between the two nations. This initiative focuses on maritime digitalization and decarbonization projects, aiming to drive innovation, accelerate the adoption of low-emission technologies, and strengthen digital integration in the marine sector. The Economic Times
Understanding the Green Shipping Corridor
A Green Shipping Corridor is a designated maritime route where vessels operate using low or zero-emission technologies, supported by digital innovations to enhance efficiency and sustainability. The primary objectives are to reduce greenhouse gas (GHG) emissions, promote the use of alternative fuels, and implement advanced digital systems for optimized maritime operations.
The India-Singapore Green and Digital Shipping Corridor (GDSC) is an ambitious initiative to make maritime trade between the two nations more sustainable and efficient. With both countries being key players in global trade, this corridor has the potential to revolutionize the shipping industry by integrating eco-friendly fuels, digital tracking systems, and AI-driven operational efficiencies.
Implications for India and Singapore
For India and Singapore, establishing the GDSC is an environmental initiative and a strategic economic move with significant long-term benefits.
India’s Perspective
Becoming a Green Fuel Hub: India has made strides in renewable energy, mainly green hydrogen and biofuels. This initiative allows India to position itself as a major supplier of green marine fuels, attracting foreign investments and boosting local industries. To achieve its ambitious goal of 500 GW of non-fossil fuel power by 2030, India requires an annual investment of ~ USD 68 billion and a total of USD 300 billion by 2030.
Technological Advancement: Developing smart ports, automated logistics, and AI-driven tracking will enhance India’s maritime infrastructure. This could lead to the creation of high-skilled jobs in AI, data analytics, and naval engineering.
Strengthening Trade and Logistics: With reduced emissions and improved efficiency, India’s ports—especially in Mumbai, Chennai, and Visakhapatnam—could see increased traffic, making them more competitive in global shipping networks.
Regulatory Compliance and Cost Savings: The International Maritime Organization (IMO) has set strict carbon emission targets. By adopting green shipping early, India can avoid potential carbon taxes and non-compliance penalties, giving its maritime sector a competitive edge.
Singapore’s Perspective
Maintaining Leadership in Maritime Innovation: As the world’s busiest transshipment hub, Singapore has long been a leader in maritime technology. This initiative further solidifies its status as an innovation-driven port city.
Enhancing Port Efficiency: AI-powered logistics management and blockchain-based documentation can significantly reduce operational delays, making Singapore’s ports even more attractive for global shipping companies.
Sustainability as a Competitive Advantage: With major economies shifting towards carbon-neutral shipping, ports that offer green fuel bunkering and digital efficiencies will be preferred. Singapore stands to gain as an early adopter.
Strengthening Regional and Global Alliances: Partnering with India on this initiative demonstrates Singapore’s commitment to sustainable trade practices and improving diplomatic and economic ties between the two nations and beyond.
Economic Impact of the Collaboration
The economic ramifications of the GDSC are profound and multifaceted:
Boost to Renewable Energy and Green Fuel Industry: With rising global demand for low-carbon shipping, India’s investment in green hydrogen, biofuels, and ammonia-based fuels will create a multi-billion-dollar export industry.
Increase in Trade Volume and Efficiency: Enhanced digital integration, including real-time tracking and AI-driven forecasting, will improve shipping efficiency, reducing delays and operational costs. This will make trade between India and Singapore more cost-effective and predictable.
Job Creation and Skill Development: The shift towards digital and green shipping will require new expertise in software development, AI-driven logistics, renewable energy technologies, and environmental engineering. This could create thousands of new jobs across both nations.
Reduction in Carbon Costs: Shipping contributes around 3% of global CO2 emissions. By transitioning to greener fuels, India and Singapore can save millions in carbon credits and compliance costs.
Increased Competitiveness of Indian Ports: Major shipping players may choose Indian ports over higher-cost alternatives, leading to increased revenue and global positioning.
Global Implications of the India-Singapore Corridor
The India-Singapore GDSC is a bilateral initiative and a potential blueprint for future maritime sustainability projects worldwide. Its impact can be categorized into three key areas:
Setting a Benchmark for Sustainable Shipping: If successful, this corridor could inspire similar agreements between other major trading hubs, accelerating the global transition to green shipping corridors. This aligns with the IMO’s target of cutting GHG emissions by 50% by 2050.
Catalyzing Global Investments in Green Shipping: The success of this project could attract global investments from companies and nations looking to develop their eco-friendly shipping solutions. Major shipping lines like Maersk and MSC are already investing in green fuels, and initiatives like this make large-scale adoption more viable.
Reducing Global Maritime Emissions: According to the International Energy Agency (IEA), maritime transport accounts for roughly 940 million tonnes of CO2 emissions annually. The widespread adoption of green shipping corridors could significantly lower this figure, contributing to global climate goals.
Global Shipping Industry CO₂ Emissions (1990-2023)
Enhancing Indo-Pacific Trade Relations: Given that the Indo-Pacific region accounts for nearly 60% of global maritime trade, a sustainable corridor between India and Singapore could encourage further regional cooperation on green trade policies.
Conclusion
The India-Singapore Green and Digital Shipping Corridor represents a significant step towards sustainable maritime trade. By leveraging green energy, digital advancements, and regulatory foresight, both nations stand to gain economically and environmentally. Moreover, this initiative sets the stage for a broader global shift towards decarbonized shipping, reinforcing the economic and environmental sustainability of the maritime industry.
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 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.
This week continued the last week’s gains of the primary market indices, with NIFTY50 and SENSEX closing green on Monday. Joining this rally was a steel stock that rose 13% after announcing the conversion of preferential shares. This steel stock, Rathi Steel & Power Limited, also became a multi-bagger, gaining around 750% in the last five years. What fueled the price rise over the years and on Monday? Let’s understand.
Rathi Steel & Power Limited Overview:
Rathi Steel & Power Limited has been a prominent name in the Indian steel industry for over six decades. It is a part of the P.C. Rathi Group. The company has consistently focused on innovation and quality. It was among the first in North India to produce TMT bars using Thermex Technology. It played a major role in introducing CTD reinforcement rebars, improving efficiency in the construction sector.
The company has manufacturing facilities capable of producing around 2 lakh TPA of rolled products and approximately 85,000 TPA of melting capacity, and it serves both retail and industrial markets. Its latest innovation, Stainless Steel Rebars (RU SS Rebars), is designed to replace traditional MS TMT rebars, addressing durability concerns in construction. Rathi Steel markets its products under the RATHI brand and has a strong distribution network with 1,000 retail outlets across Northern India.
The company’s FY2024 revenue stood at Rs.492.82 crore, lower than the FY2023 figures. The net profit ratio has dropped from 0.12 in FY2023 to 0.05 in FY2024. However, the debt-equity ratio improved in FY2024, reducing from 3.19 in FY2023 to zero. Additionally, in the third quarter of FY2025, the company recorded an improvement in its quarterly net sales that increased 3.17% y-o-y and reached Rs.104.43.
The stock became a multibagger that recorded a gain of around 750% over the past five years due to the following reasons-
Strong Financial Recovery:
Over the past five years, the company shifted from a net loss of Rs.25.6 crore in FY2020 to reporting a profit of Rs.87.22 crore in FY2023. Although profitability declined to Rs.23.53 crore in FY2024, the overall financial trajectory has significantly improved. Revenue also grew substantially, increasing from Rs.37.53 crore in FY2020 to Rs.726.54 crore in FY2023 before adjusting to Rs.492.83 crore in FY2024.
A significant milestone for the company has been its transition to a debt-free status in FY2024. Reducing total debt to zero has helped lower interest expenses and financial liabilities, potentially directing more capital toward business operations and expansion. Generally, companies with minimal or no debt are often considered financially stable, which can impact investor sentiment.
Market Revaluation Post Trading Suspension:
From December 2018 to July 2023, Rathi Steel was suspended from trading due to non-compliance with financial disclosure regulations. Once trading resumed on 3rd July 2023, the stock experienced renewed interest, leading to a significant revaluation. The relisting coincided with improvements in the company’s financial performance, contributing to changes in market perception and subsequent price movements.
Recent Share Price Changes:
On 24th March 2025, the share price jumped around 13% following the announcement that the company is converting its preferential shares, taking the total gains of the stock to 24.84% over the past five market sessions.
Preferential shares are a type of equity often with specific rights, such as fixed dividends, and are typically issued to select investors, including promoters. When these shares are converted into regular equity shares, the new shares become part of the company’s outstanding share capital, which can impact ownership structure, liquidity, and stock price movements.
The impact of preferential share conversion varies. If promoters convert their preference shares into equity at a price significantly higher than the market rate, it may indicate long-term confidence in the company. On the other hand, such conversions also increase the total number of outstanding shares, which could influence factors like earnings per share (EPS) and overall market supply.
In Rathi Steel & Power’s case, the conversion price was Rs.55 per equity share, allotted to PCR Holdings, an entity owned by the company’s promoters. This transaction resulted in an increase in the company’s paid-up equity share capital, which rose to Rs.86,36,30,040 (Rs.86.36 crore), now divided into 8,63,63,004 (8.63 crore) equity shares with a face value of Rs.10 each. Following this corporate action, the stock price increased by 13.82% the next trading day.
What It Means for Investors?
Rathi Steel & Power’s financial recovery, debt-free status, and preferential share conversion have influenced its stock movements. A debt-free balance sheet reduces financial risk, while a share conversion at a premium price signals promoter confidence, which can impact market sentiment. If you’re evaluating the stock, consider these factors, along with industry trends, future earnings potential, and broader market conditions, before making any investment decisions.
Bottomline:
While past performance has been strong, it is suggested that you evaluate future growth potential, industry trends, and market conditions before making investment decisions. Monitoring financial results and corporate actions will be important in assessing the company’s long-term trajectory.
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-Venezuela Oil Ties: A Longstanding Energy Partnership
India and Venezuela have maintained strong energy trade relations for decades. With Venezuela possessing the world’s largest proven oil reserves, Indian refiners have consistently sourced heavy crude that aligns well with domestic refinery configurations.
Key Milestones in the India-Venezuela Oil Trade:
Early 2000s: India began importing Venezuelan crude, with key refiners like Indian Oil Corporation (IOC), Reliance Industries Ltd. (RIL), and Nayara Energy becoming major buyers.
2010s Boom: Bilateral trade peaked in 2012, with India importing nearly 475,000 barrels per day (bpd) of Venezuelan oil, making it the second-largest buyer after the U.S.
2019 U.S. Sanctions: India ceased Venezuelan crude imports following U.S. sanctions on the Maduro government.
2023 Resumption: In December 2023, India resumed purchases after the U.S. temporarily lifted restrictions, with RIL and Nayara securing significant shipments.
2025 Tariff Shock: Trump’s 25% tariff now jeopardizes India’s cost advantage, forcing Indian refiners to rethink their sourcing strategies.
India’s Dependence on Venezuelan Oil
India resumed importing Venezuelan crude in December 2023 after a three-year hiatus due to prior U.S. sanctions. By January 2025, India was importing over 254,000 barrels per day (bpd) from Venezuela, accounting for nearly half of Venezuela’s total oil exports of approximately 557,000 bpd for that month. Major Indian refiners, such as Reliance Industries Ltd (RIL) and Nayara Energy (NEL), have been key buyers, attracted by favorable pricing and the specific qualities of Venezuelan crude that suit their refining capacities.
Economic Implications of the Tariff
1. Increased Import Costs
The tariff would raise the effective cost of Venezuelan crude by 25%, eroding the pricing benefits Indian refiners previously enjoyed. This would lead to higher refinery operational costs, which could eventually be passed on to consumers.
Impact of U.S. Tariff on India’s Oil Imports & Fuel Prices
Month
Import Volume (bpd)
Petrol Price (INR/Litre)
Diesel Price (INR/Litre)
Dec 2023
191,600
90
80
Jan 2025
254,000
112.5 (Projected)
100 (Projected)
Sources: Kpler data via The Indian Express, projected fuel prices based on estimated tariff impact.
2. Inflationary Pressures
Higher crude import costs could push up fuel prices, leading to inflationary pressures across multiple sectors, from transportation to manufacturing, impacting consumer purchasing power and economic growth.
3. Supply Chain Disruptions
Indian refiners may have to shift to alternative crude sources, such as the Middle East or Africa. However, these adjustments come with logistical hurdles and potential compatibility issues with existing refining processes.
The tariff doesn’t just affect trade—it carries significant diplomatic implications:
Trade Relations: India’s reduced Venezuelan oil imports could strain bilateral trade relations. Venezuela relies on oil exports as a primary revenue source, and losing a major buyer like India could exacerbate its economic challenges.
Geopolitical Consequences: India’s compliance with the U.S. tariff may be perceived as aligning with U.S. foreign policy, potentially affecting India’s stance as a non-aligned nation and its relations with other oil-producing countries under U.S. sanctions.
How Will India Respond?
1. Diversification of Oil Sources
Indian refiners will likely increase imports from the Middle East, such as from Saudi Arabia, Iraq, and the UAE, or explore alternative suppliers like Brazil and Guyana to cushion the tariff’s impact. However, this shift may come with higher transportation costs and supply constraints.
2. Diplomatic Engagement with the U.S.
New Delhi may seek tariff exemptions or negotiate reduced levies by highlighting its economic dependence on affordable crude. India’s past diplomatic engagements, such as negotiating waivers for Iranian crude imports, suggest a similar approach could be pursued with Washington.
3. Strengthening Domestic Refining & Energy Security
India may expand its strategic petroleum reserves (SPR) and invest in domestic crude production and refining capacity to reduce its vulnerability to external shocks. Policy measures such as fuel subsidies or tax adjustments may also be considered to stabilize domestic fuel prices.
4. Closer Energy Ties with Venezuela
India might explore long-term crude supply agreements with Venezuela that bypass U.S. dollar transactions, similar to its earlier rupee-rial arrangement with Iran. This could allow India to continue importing Venezuelan crude at competitive rates despite U.S. sanctions.
Conclusion
President Trump’s 25% tariff on Venezuelan oil imports presents a significant economic challenge for India, impacting import costs, inflation, and diplomatic relations. How India navigates this trade twist will determine its long-term energy security and global positioning in an increasingly complex oil market.
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.
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.
An eventful week awaits in the SME IPO market with a mix of opportunities for investors. This week features Desco Infratech Ltd., aiming to raise ₹185 crore, along with three other SME IPOs—Shri Ahimsa Naturals Ltd, ATC Energies System Ltd, and Identixweb Ltd—set to launch. These IPOs span multiple sectors, offering investors a chance to participate in emerging Indian businesses. Before diving into the details, let’s examine their objectives, financials, Grey Market Premium (GMP), and other key aspects. Here’s a closer look at what’s in store!
Desco Infratech Limited
Desco Infratech Limited is launching its SME IPO with a fresh issue of 20.50 lakh shares, aggregating to Rs 30.75 crores. The IPO subscription opens on March 24, 2025, and closes on March 26, 2025. The allotment is expected to be finalized by March 27, 2025. Desco Infratech IPO is set to list on the BSE SME platform, with the tentative listing date scheduled for April 1, 2025.
The minimum application size is 1,000 shares, requiring a retail investor investment of Rs 1,47,000. However, bidding at the cutoff price of Rs 1,50,000 is recommended to avoid oversubscription risks. HNI investors must bid for at least two lots (2,000 shares), amounting to Rs 3,00,000.
GMP (Grey Market Premium)
As of March 24, 2025, Desco Infratech’s SME IPO is trading at a GMP of Rs 20. Given the price band of Rs 150 per share, the estimated listing price is Rs 170, indicating a potential listing gain of 13.33% per share.
Objectives of the IPO
Funding capital expenditure for setting up a corporate office in Surat, Gujarat – Rs 10.43 million.
Purchasing machinery to enhance operational capabilities – Rs 16.8 million.
Funding working capital requirements – Rs 180 million.
General corporate purposes.
Company Overview
Desco Infratech Limited (Founded in 2011) is an infrastructure company engaged in engineering, planning, and construction across City Gas Distribution (CGD), renewable energy, water management, and power infrastructure. Operating in 55+ cities across 14 states, it has laid over 4,000 km of MDPE pipelines and provided 200,000+ piped natural gas connections. The company also develops water distribution networks, open wells, sump wells, and overhead tanks.
Financials
Desco Infratech Limited has shown steady growth in revenue and profitability. As of September 30, 2024, revenue stood at ₹22.75 crore, following ₹29.49 crore in FY24 and ₹29.28 crore in FY23. Profit After Tax (PAT) reached ₹3.38 crore in H1 FY25, maintaining momentum from ₹3.46 crore in FY24—a sharp rise from ₹1.23 crore in FY23 and ₹0.83 crore in FY22, highlighting improved profitability.
Established track record in infrastructure development, especially in CGD and renewable energy.
Strong execution capabilities with over 4,000 km of MDPE pipelines laid.
Presence in multiple states and cities, reducing geographical concentration risk.
Robust financial growth with increasing revenue and profit margins.
High working capital requirements necessitating external funding.
Exposure to regulatory and environmental approvals can delay projects.
Dependence on government contracts and policies for infrastructure development.
OPPORTUNITIES
THREATS
Growing demand for sustainable energy solutions, including CGD and renewable power projects.
Expansion into new geographical markets and infrastructure segments.
Increased government spending on infrastructure projects can boost contract opportunities.
Market volatility and economic downturns affect infrastructure investments.
Rising competition in the infrastructure sector from other large players.
Delays in project execution due to external factors like raw material shortages or policy changes.
Shri Ahimsa Naturals Limited
Shri Ahimsa Naturals Limited is launching its SME IPO with a total issue size of ₹ 73.81 crores. The offering consists of a fresh issue of 42.04 lakh shares worth ₹50.02 crores and an offer for sale (OFS) of 19.99 lakh shares amounting to ₹23.79 crores. The IPO will be open for subscription from March 25, 2025, to March 27, 2025.
The allotment is expected to be finalized on March 28, 2025, with a listing scheduled on the NSE SME platform on April 2, 2025. The minimum lot size is 1,200 shares, requiring a retail investor investment of ₹1,35,600. To avoid potential oversubscription risks, bidding at the cutoff price of ₹1,42,800 is recommended. HNI investors must apply for at least two lots (2,400 shares), amounting to ₹ 85,600.
GMP (Grey Market Premium)
As of March 24, 2025, Shri Ahimsa Naturals SME IPO is trading at a GMP of ₹10. With the price band set at ₹119 per share, the estimated listing price is ₹129, indicating a potential listing gain of 8.40% per share.
Objectives of the IPO
Investment in its wholly-owned subsidiary, Shri Ahimsa Healthcare Private Limited (SAHPL), for setting up a manufacturing unit in Sawarda, Jaipur, Rajasthan – Rs 350 million.
Shri Ahimsa Naturals Limited (Incorporated in 1990) manufactures and trades Caffeine Anhydrous, Green Coffee Bean Extracts, and Crude Caffeine, serving the food & beverage, nutraceuticals, cosmetics, and pharmaceutical industries. It exports to the USA, Germany, South Korea, the UK, and Thailand. As of September 30, 2024, export revenue was Rs 3,530.91 lakhs, with previous figures of Rs 7,463.71 lakhs (FY23) and Rs 9,988.01 lakhs (FY22). The Jaipur-based manufacturing unit adheres to international standards, including ISO 9001, ISO 22000, ISO 45001, ISO 14001, HACCP, and GMP.
Financials
Shri Ahimsa Naturals Limited has shown steady growth in assets, revenue, and profitability over the years. Revenue for the first half of FY25 is ₹41.37 crore, following ₹78.7 crore in FY24. However, this marks a decline from the ₹106.14 crore revenue reported in FY23. Profit After Tax (PAT) has followed a similar trend, with ₹9.74 crore recorded for the half-year ending September 2024, compared to ₹18.67 crore in FY24 and a peak of ₹38.21 crore in FY23.
Good presence in the nutraceuticals and herbal extract market with a diverse product portfolio.
Well-established export network across major international markets.
The manufacturing facility is certified with global quality and safety standards.
Consistent revenue generation from international markets, contributing to business stability.
Dependency on export markets exposes the company to forex fluctuations and international trade policies.
Declining revenue trend in recent years, indicating potential business challenges.
High working capital requirements due to raw material procurement and production costs.
OPPORTUNITIES
THREATS
Growing global demand for natural caffeine and herbal extracts in health-conscious consumer markets.
Expansion into new geographies and increasing domestic market penetration.
Rising preference for organic and natural ingredients in the food, cosmetics, and pharmaceutical industries.
Competition from domestic and international players offering similar products.
Regulatory and compliance challenges in different export markets.
Fluctuations in raw material prices may impact profit margins.
ATC Energies System Limited
ATC Energies IPO is a book-built issue worth Rs 63.76 crores, comprising a fresh issue of 43.24 lakh shares aggregating to Rs 51.02 crores and an offer for sale of 10.80 lakh shares amounting to Rs 12.74 crores. The IPO subscription opens on March 25, 2025, and closes on March 27, 2025. The allotment is expected to be finalized on March 28, 2025, with a tentative listing date on NSE SME scheduled for April 2, 2025.
The IPO price band is set between ₹112 and ₹118 per share. Retail investors must invest a minimum of ₹1,34,400 for one lot (1,200 shares). To avoid oversubscription issues, it is advisable to bid at the cutoff price, bringing the investment to ₹1,41,600. HNI investors must purchase at least two lots (2,400 shares) for ₹2,83,200.
GMP (Grey Market Premium)
As of March 24, 2025, the Grey Market Premium (GMP) for ATC Energies SME IPO stands at ₹0. With the price band at ₹118, the estimated listing price remains at ₹118 per share, with no expected gain or loss.
Objectives of the IPO
Repayment and/or pre-payment of borrowings related to the purchase of the Noida factory – ₹95.28 million
Capital expenditure for refurbishment and upgrades at the Noida factory – ₹67.22 million
IT upgradation at the Noida factory, Vasai factory, and the registered office – ₹74.69 million
Funding working capital requirements – ₹95 million
General corporate purposes
Company Overview
ATC Energies System Limited, incorporated in 2020, specializes in energy solutions, focusing on lithium and Li-ion batteries. The company provides energy storage solutions for industries like banking, automobiles, and industrial UPS systems. With factories in Vasai, Thane, and Noida, it manufactures customized battery solutions using advanced equipment. Its products cater to POS machines, ATMs, electric vehicles, and energy storage applications.
Financials
ATC Energies System Limited has shown significant revenue growth, reaching ₹22.57 crore as of September 30, 2024, following ₹51.51 crore in FY24, ₹33.22 crore in FY23, and ₹36.52 crore in FY22. Profit After Tax (PAT) stood at ₹5.77 crore in H1 FY25, after reporting ₹10.89 crore in FY24, ₹7.76 crore in FY23, and ₹11.86 crore in FY22. The company’s financial performance reflects strong revenue expansion and profitability, with steady net worth growth and controlled borrowing levels.
Diverse product portfolio catering to multiple industries
Steady revenue growth and improving profitability
Short operational history compared to established competitors
High dependency on battery technology advancements
Need for continuous investment in R&D
OPPORTUNITIES
THREATS
Rising demand for lithium and Li-ion batteries in various industries
Expansion into emerging electric vehicle markets
Growing emphasis on energy storage solutions
Competition from established battery manufacturers
Fluctuations in raw material prices affecting production costs
Regulatory changes in the energy sector
Identixweb Limited
Identixweb IPO is a book-built issue worth Rs 16.63 crores. The issue consists entirely of a fresh issue of 30.80 lakh shares. The subscription for the IPO opens on March 26, 2025, and closes on March 28, 2025. The allotment is expected to be finalized on April 1, 2025. Identixweb Limited is set to be listed on BSE SME, with a tentative listing date of April 3, 2025.
The minimum lot size for an application is 2,000 shares. Retail investors are required to invest a minimum of ₹1,02,000. However, due to the possibility of oversubscription, it is suggested to bid at the cutoff price, which amounts to ₹1,08,000. High Net-Worth Individuals (HNI) must apply for at least two lots (4,000 shares), amounting to ₹2,16,000.
GMP (Grey Market Premium)
No major movement has been observed in the Grey Market Premium (GMP). The same trend is expected to continue until the listing day.
Objectives of the IPO
The company intends to utilize the net proceeds from the IPO for the following purposes:
Investment in marketing to support the organization’s growth plans in India and internationally – ₹25 million.
Investment in market research and product development through talent hiring for the issuer company – ₹42 million.
Investment in the subsidiary for product development through talent-hiring – ₹41.58 million.
General corporate purposes.
Company Overview
Incorporated in 2017, Identixweb Limited is a technology company specializing in Shopify app development and custom web solutions. The company offers services, including Shopify app development, web app development using PHP and React, and WordPress plugin development. Identixweb has a team of over 50 professionals and has developed over 35 public Shopify apps while completing over 100 projects. The company serves e-commerce, fashion, fintech, and SaaS industries.
Financials
Identixweb Limited has demonstrated steady growth in its financial performance over the years. Revenue for the first half of FY25 is ₹4.79 crore, following ₹6.66 crore in FY24 and ₹6.27 crore in FY23, indicating stable earnings. Profit After Tax (PAT) has improved, reaching ₹2 crore for the six months ending September 2024, compared to ₹2.77 crore in FY24 and ₹1.35 crore in FY23. Total borrowings remain minimal at ₹0.11 crore, reflecting a strong financial position with low debt dependency.
Dependency on changing policies of Shopify and other third-party platforms.
Cybersecurity threats and data privacy regulations.
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 is poised to contribute 6% to global trade growth over the next five years, positioning itself as the third-largest driver after the United States and China. This projection underscores India’s burgeoning role in the global economy and invites a closer examination of its implications from an economic standpoint.
Global Trade and Its Major Contributors
Global trade has been a cornerstone of economic development, facilitating the exchange of goods, services, and capital across international borders. Trade routes like the Silk Road and transatlantic trade networks have shaped civilizations and economies. In the modern era, global trade has expanded exponentially, driven by technological advancements, policy liberalizations, and the rise of multinational corporations.
The United States and China have traditionally been the primary engines of global trade growth. With their vast consumer markets and technological innovation, the U.S. and China, the world’s manufacturing hubs, have significantly influenced global trade dynamics. However, emerging economies like India are now playing increasingly pivotal roles.
After independence, India adopted a protectionist trade policy, focusing on self-reliance and import substitution. This approach led to a highly regulated economy with limited global integration. However, the economic reforms of 1991 marked a paradigm shift toward liberalization, privatization, and globalization. These reforms dismantled the ‘license raj’ and opened the Indian economy to global markets.
Since then, India’s trade landscape has transformed remarkably. Merchandise exports have grown from just over $1 billion in 1948 to $451 billion recently. The country’s export portfolio has diversified from traditional goods like jute and tea to engineering goods, petroleum products, and pharmaceuticals.
Initiatives such as the Production-Linked Incentive (PLI) scheme aim to boost manufacturing and exports further.Financial Times, Vox
Economic Implications of India’s Growing Trade Contribution
Diversification of Global Supply Chains: India’s increased participation in global trade offers an alternative to existing manufacturing hubs, contributing to the diversification of global supply chains. This shift can enhance global economic resilience by reducing over-reliance on a single country or region.
Attraction of Foreign Direct Investment (FDI): A robust trade environment makes India an attractive destination for FDI. Investors seeking to capitalize on India’s growing market and export potential may inject capital into various sectors, fostering economic growth and employment.
Technological Advancement and Innovation: Engagement in global trade exposes domestic industries to international competition, compelling them to innovate and adopt new technologies. This dynamic can lead to productivity improvements and the development of high-value industries.
Enhancement of Infrastructure: To support increased trade activities, India may invest heavily in infrastructure development, including ports, highways, and logistics networks. Such investments can have multiplier economic effects, improving efficiency and connectivity.
Geopolitical Influence: A more significant share in global trade enhances India’s geopolitical clout. As an emerging economic power, India can be more influential in international trade negotiations, standard-setting, and global economic governance.
Challenges and Considerations
While the prospects are promising, several challenges need addressing to sustain and enhance India’s contribution to global trade growth:
Infrastructure Bottlenecks: Despite progress, infrastructural deficits, particularly in logistics and transportation, can hinder trade efficiency. Continuous investment and modernization are crucial.
Trade Policy Reforms: Regulatory frameworks must be simplified and bureaucratic red tape reduced to facilitate smoother trade operations and attract foreign investors.
Skilling the Workforce: Aligning the workforce’s skills with industry requirements ensures that India can meet the demands of global markets, particularly in high-tech and specialized sectors.
Global Economic Conditions: India’s trade growth is susceptible to global economic fluctuations, protectionist tendencies, and geopolitical tensions. Diversifying trade partners and products can mitigate some of these risks.
Future Outlook
India’s anticipated contribution to global trade growth signifies an economic milestone and a strategic opportunity to reshape its position in the global economic order. By leveraging its demographic dividend, expanding its manufacturing capabilities, and enhancing its service sectors, India can sustain its upward trajectory in global trade.
Moreover, embracing digital technologies and e-commerce can open new avenues for trade, allowing small and medium enterprises (SMEs) to access international markets. Sustainable and inclusive trade practices will ensure that the benefits of globalization reach a broader section of society, fostering equitable growth.
Conclusion
India’s projected 6% contribution to global trade growth is a testament to its evolving economic landscape and integration into the world economy. This development presents numerous opportunities for economic advancement, technological progress, and geopolitical influence.
However, realizing this potential requires strategic planning, infrastructural development, policy reforms, and a commitment to sustainable and inclusive growth. As India navigates this path, its role in global trade will become increasingly significant, heralding a new chapter in its economic narrative.
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.
We all loved stories as kids, right? Begging grandparents for “just one more” at bedtime. Or remember the thrill of sleepovers, whispering bhoot ki kahaniyan until someone got too scared to sleep? Stories have always had a hold on us—thrilling and comforting us.
From cave paintings to oral traditions, written manuscripts to print, visual media to digital, and now audiobooks and podcasts—storytelling has come a long way, so much so that it’s a $6.63 billion industry today.
As we celebrate Poetry and Storytelling Day on 21 March, let’s tell you a story—of how one simple idea transformed into the world’s leading audiobook platform worth ~ $36 million.
Curious? Let’s rewind
A Frustration, and A Billion-Dollar Idea
Sometime in the mid-90s, Rolling Stone journalist Don Katz was out for a jog at Riverside Park, New Jersey, listening to an audiobook on his Sony Walkman.
When he needed to flip the cassette, Katz stopped in frustration and wondered why storytelling was still stuck in outdated formats.
A storyteller at heart, he envisioned a way to make books digital, seamless, and on-demand. His research showed that 93 million Americans commuted alone daily, stuck in traffic. What if they could listen to digital content instead?
Katz crunched the numbers—if just 9% subscribed to a new storytelling format at $10/month, that meant 8.37 million users and $83.7 million in monthly revenue.
So, at 43, he quit his successful career, took an 85% pay cut, and founded Audible in 1995.
Of Digital Audio
In 1997, Audible launched the Audible MobilePlayer, a game-changer with 4MB of memory and two hours of audio digitally. Modest now but a marvel back in the day.
Audible.com went live with “Men Are from Mars, Women Are from Venus” as the first download, and a new era began. Sounds exciting. Except… it wasn’t.
Digital audio was new, slow, clunky, and expensive. Investors weren’t convinced, and customers weren’t interested.
Of Highs, Lows, & the Dot-Com Bust
Things started to look up for Audible as it went public on NASDAQ in 1999, valued at $538 million.
However, tragedy struck with the unexpected passing of CEO Andrew J Huffman, proving to be a challenge for the company. But the company soldiered on.
In 2000, Audible pioneered the subscription model—a flat monthly fee for access. But then came the dot-com bubble burst, causing financial strain with a $32.3 million loss.
Startups were crashing everywhere, and Audible was barely hanging on. A desperate Katz cut his salary to zero and fought to keep his vision alive.
AppearsWith the Launch of iPod
In 2003, when Steve Jobs launched the iPod, Katz saw an opportunity and struck a deal with Apple as the exclusive provider of audiobooks for iTunes.
Boom! Suddenly, audiobooks became calm, and more and more people tuned in. Audible was no longer struggling to survive but growing as another tech giant watched from the shadows.
From A Struggling Startup To an Industry Leader
In 2008, Jeff Bezos saw what Katz had built. And, just like that, Amazon bought Audible for $300 million, in what’s called one of Amazon’s smartest acquisitions because Audible was about to explode.
The Kindle + Audible integration made audiobooks more accessible than ever. People could now seamlessly switch between reading and listening. Thus, with Amazon’s backing, Audible went from a struggling startup to an industry giant.
Of the Audiobook Empire
From that moment, Audible became unstoppable. It launched ACX (Audiobook Creation Exchange) in 2011, giving independent authors and narrators a platform to produce audiobooks.
In 2012, it rolled out the A-List Collection, featuring Hollywood voices like Anne Hathaway & Samuel L. Jackson. Whispersync for Voice followed in 2013, which let users switch between reading on Kindle and listening on Audible.
Since then, Audible has added a catalog of over one million titles, collaborating with renowned global names and emerging talent.
The exclusive Originals, audiobooks, and podcasts reach listeners in over 180 countries and 50 languages.
Of the Future
Audible’s valuation as of August 2024 was $36 million and shows no sign of slowing down.
The audiobook market, valued at $6.63 billion in 2024, is projected to grow to $7.42 billion by 2025. Of this, Audible holds the lion’s share at 63.4%. The market is poised to reach $21.79 billion by 2034, with a CAGR of 12.29% over the forecast period (2025–2034).
Because no matter how technology evolves, one thing remains the same: we will always crave a good story. And with Audible, you don’t have to wait for bedtime to hear one!
The electric vehicle (EV) market is rapidly transforming the global automotive industry, with key players like Tesla leading the charge towards a more sustainable future. As the demand for EVs continues to grow, manufacturers are increasingly looking for ways to diversify their supply chains, reduce manufacturing costs, and take advantage of emerging markets.
Tata, one of India’s largest and most influential conglomerates, is becoming a key player in Tesla’s global supply chain, and this relationship holds the potential to reshape the landscape of the electric vehicle industry.
Tesla is reportedly looking to source components locally while negotiating for tax benefits and incentives. Ongoing discussions with various Indian states are focused on boosting Tesla’s local manufacturing presence and opening up new opportunities for Indian suppliers.
As Tesla expands its operations, particularly in India, Tata Group companies are preparing for an even bigger role, providing vital components and expertise that will support Tesla’s operations both in India and globally.
India has set an ambitious target to significantly boost the adoption of electric vehicles (EVs) by 2030. Electric vehicle sales saw a notable surge in 2023, with a 49.25% increase, reaching 1.52 million units. Moreover, in May 2024, sales grew by 20.88%, hitting 1.39 million units.
Tata Motors aims to generate 30-40% of its sales from Electric Vehicles (EVs) by FY30 and intends to invest around Rs. 18,000 crore (US$ 2.16 billion) to build a strong ecosystem for its EV business. According to Fortune Business Insights, the Indian EV market is forecast to grow from US$ 3.21 billion in 2022 to a massive US$ 114 billion by 2029, marking a CAGR of 66.52%.
India aims for 30% of private car sales, 70% of commercial vehicle sales, 40% of bus sales, and 80% of two-wheeler and three-wheeler sales to be electric by 2030. It has set a target of having 80 million EVs on Indian roads by 2030. Furthermore, the country is committed to achieving 100% domestic EV production through the ‘Make in India’ initiative, reinforcing its drive toward sustainable transportation and reducing reliance on imports.
Global EV Market
Globally, the EV market is also experiencing significant growth. In 2023, the global electric vehicle market was valued at US$ 255.54 billion and is projected to reach an impressive US$ 2,108.80 billion by 2033, growing at a remarkable compound annual growth rate (CAGR) of 23.42% from 2024 to 2033. This rapid growth signals a transformative shift in the automotive industry, with opportunities for innovation and expansion in key markets like India.
As the global shift towards electric vehicles accelerates, new opportunities are opening up for automotive suppliers, particularly in the growing Indian market. One of the key areas of growth is in the EV battery market, which is expected to grow from US$ 16.77 billion in 2023 to US$ 27.70 billion by 2028.
Tata Group and Tesla: A Partnership with Global Implications
Tata Group is a name that resonates across multiple industries, from automotive to IT services, engineering, and aerospace. The group’s reach and influence in the global marketplace have made it an ideal partner for Tesla as the American EV giant seeks to diversify its supply base and scale its operations worldwide.
Over the years, Tata Group companies have developed strategic partnerships with Tesla, providing critical components for the production of electric vehicles. These collaborations span various industries, from electronics and automotive components to software and engineering services.
Tata Group’s Role as a Key Global Supplier to Tesla
In FY24, Tata Group companies contributed significantly to Tesla’s supply chain, providing essential components worth nearly $2 billion. Among the Tata companies involved are Tata AutoComp, Tata Electronics, Tata Technologies, and Tata Consultancy Services (TCS), each specializing in different areas critical to Tesla’s operations.
Tata AutoComp – Tata AutoComp is a key player in the automotive supply chain, specializing in the manufacture of components specifically designed for electric vehicles. This company has played a crucial role in providing parts like electric motors, battery management systems, and other EV-specific products. With the rapid growth of the EV market, Tata AutoComp’s contribution to Tesla’s success is expected to grow significantly in the years to come.
Tata Electronics – Tata Electronics, known for its expertise in circuit boards and semiconductor technologies, is another important partner for Tesla. The company is expected to provide Tesla with crucial components like chips, printed circuit board assemblies, and other high-tech parts. These components are essential for Tesla’s advanced vehicle control systems, battery management systems, and other electric vehicle technologies.
Tata Technologies – Tata Technologies offers end-to-end product life cycle management, ensuring that Tesla’s vehicles are designed, developed, and produced efficiently. From concept to production, Tata Technologies provides valuable support in streamlining Tesla’s manufacturing operations.
Tata Consultancy Services (TCS) – TCS, the global IT services giant, has provided crucial software solutions, including circuit board technologies and data management systems, which are integral to the functioning of Tesla’s electric vehicles.
While Tata Group has been a significant supplier to Tesla for years, the next chapter in their partnership could be even more transformative, particularly as Tesla considers expanding its operations in India. Tesla has been exploring the possibility of setting up local manufacturing in India, aiming to take advantage of the country’s growing talent pool, cost-effective labor, and incentives from state and national governments.
The Importance of Local Sourcing for Tesla
One of Tesla’s major goals in expanding its operations to India is to source critical components locally. By manufacturing more parts in India, Tesla can reduce the overall cost of production, streamline its supply chain, and become more competitive in the Indian market. This shift toward local sourcing is not just limited to Tata Group but also extends to a growing number of Indian suppliers. Companies like Samvardhana Motherson, Suprajit Engineering, Sona BLW Precision Forgings, and Bharat Forge are already supplying Tesla with key components, including wiring harnesses, electric motors, and forged parts.
Indian suppliers are becoming increasingly important to Tesla as the company seeks to reduce its dependence on traditional manufacturing hubs like China and Taiwan. Tesla’s decision to source from India is a strategic move to diversify its supply chain, ensuring that it can continue to meet global demand for EVs without disruption. By establishing strong relationships with Indian suppliers, Tesla is laying the foundation for a more resilient and sustainable global supply chain.
India’s government is keen to attract foreign investment, particularly in the electric vehicle sector, by offering a range of incentives and tax benefits. These include exemptions on import duties for certain EV components, grants for setting up manufacturing plants, and subsidies for research and development in the EV sector. Tesla is reportedly negotiating these incentives with various state governments, which is likely to influence its decision to set up a manufacturing facility in the country.
Tesla’s engagement with Indian states like Maharashtra, Tamil Nadu, and Gujarat highlights the company’s commitment to strengthening its presence in India. These states are already home to large automotive manufacturing hubs, and the availability of skilled labor, coupled with favorable government policies, makes them attractive locations for Tesla to establish a local manufacturing base.
Strengthening the Indian EV Supply Chain
As Tesla moves forward with its plans to expand in India, the company’s engagement with Tata Group and other Indian suppliers is set to become even more critical. The development of a robust local supply chain will not only benefit Tesla but also have far-reaching implications for India’s automotive and manufacturing sectors.
New Opportunities for Indian Suppliers
Tesla’s decision to manufacture locally in India will create significant opportunities for Indian suppliers. Companies that have already established relationships with Tesla are likely to see increased demand for their products and services. Tata Group’s extensive supply network is well-positioned to support Tesla’s local manufacturing efforts, providing critical components like electric motors, castings, forgings, sheet metal, suspension systems, and electronics.
For Indian suppliers, this represents a chance to tap into the growing global EV market. As Tesla ramps up its production in India, Indian companies will have the opportunity to increase their exports and expand their customer base beyond Tesla. This could lead to greater collaboration between Indian suppliers and other global automakers as the demand for EVs continues to grow.
Skills Development and Job Creation
The expansion of Tesla’s operations in India would also lead to significant job creation and skills development. As Tesla sets up local manufacturing facilities, it will require a skilled workforce to manage production, design, and assembly operations. Tata Group, with its vast experience in engineering and technology, is well-equipped to provide the training and expertise needed to support this transition. This will help to build a strong local talent pool, enhancing India’s position as a global hub for electric vehicle production.
Tesla’s Presence in the Indian Market
Tesla’s entry into this market could tap into the rising demand for electric vehicles, supported by favorable government policies, such as incentives for EV manufacturers and consumers. Additionally, India’s growing infrastructure for electric mobility, including charging stations, further strengthens the potential for EV adoption. As the country transitions toward cleaner energy alternatives, Tesla’s presence in India could contribute to the overall growth of the EV ecosystem.
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’s the core focus of a Tata-Tesla EV collaboration?
It centers on building a robust EV supply chain in India, leveraging Tata’s manufacturing and Tesla’s technology, potentially including battery production and component sourcing.
How will this collaboration impact India’s EV market?
It’s expected to accelerate growth, drive down costs, and boost local manufacturing, contributing to the projected $114 billion market size by 2029.
What specific areas might Tata and Tesla partner in?
Potential areas include battery cell production, EV component manufacturing, charging infrastructure development, and joint vehicle production for the Indian market.
Why is India’s EV market projected to grow to $114B by 2029?
Government incentives, rising fuel costs, increasing environmental awareness, and growing investments in EV infrastructure are driving this substantial market expansion.
What are the potential benefits for consumers from this collaboration?
Consumers may gain access to more affordable, technologically advanced EVs, expanded charging infrastructure, and improved after-sales service, boosting EV adoption.
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.
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