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Thursday, October 09, 2025

Industry and Sector - Newspaper Summary

 This detailed summary draws on the provided sources, focusing on news regarding major industries, sector performance, technology shifts, and corporate movements.

Detailed Summary of Industry and Sector News

I. Technology, Software, and Artificial Intelligence (AI)

The technology sector is undergoing a massive pivot toward AI, attracting significant investment and restructuring strategies from major players.

1. IT Services and AI Investment

  • TCS's AI Pivot: Tata Consultancy Services Ltd (TCS) reported its weakest sequential second-quarter growth in six years, though Q2 revenue was up 2.4%, beating the outlook. Revenue was $7.47 billion, up 0.61% sequentially but down 2.66% yearly. In response, TCS announced a significant pivot to AI, planning to invest at least $6 billion over about six years to establish a 1 GW AI data center capacity in India. The company expects every future project to be AI-led.
  • Workforce Adjustment: TCS laid off over 12,000 middle- and junior-level employees due to a skill and capability mismatch, while offering severance packages. The company's headcount decreased by 19,755 to 593,314.
  • Google vs. Microsoft: Google Cloud is intensifying competition with Microsoft Corp. and OpenAI by launching its AI platform Gemini Enterprise. Meanwhile, Microsoft is strengthening its Copilot assistant, particularly in healthcare, by incorporating licensed content from Harvard Health Publishing to provide credible health information, while also working to build its own AI models internally, reducing reliance on OpenAI.

2. AI Infrastructure and Venture Capital

  • Graphcore Investment: British chip designer Graphcore, owned by SoftBank Group Corp., plans to invest £1 billion ($1.3 billion) in India over the next decade. This investment will include opening a new research hub in Bengaluru that will create 500 jobs, focused on specialized chips designed for AI services.
  • VC Expansion (a16z): Venture Capital giant Andreessen Horowitz (a16z) is establishing an office in Bengaluru. The fund is scouting for early-stage deals, primarily focusing on AI-focused and Software-as-a-Service (SaaS) firms being built in India for global clients.
  • PM Modi on AI Compute: Prime Minister Narendra Modi confirmed that India is building high-performance computing capacity under its AI mission to ensure that every innovator and startup has low-cost and easy access to new technologies.

II. Financial Services, Fintech, and Banking

  • Razorpay’s Expansion: Fintech major Razorpay, which is preparing for an IPO in the next 12–18 months, plans to expand into three to four new South-East Asian markets (including the Philippines, Thailand, and Vietnam) by the end of 2026. The company is also piloting AI-driven agentic payments on ChatGPT with merchant partners like BigBasket and Vodafone.
  • Canara HSBC Life Insurance IPO: The company is proceeding with its Initial Public Offering (IPO), offering up to 237.5 million equity shares. The price band is set between ₹100.00 and ₹106.00 per equity share. The company relies heavily on the bancassurance channel, which accounted for 92.33% of its total new business premium in the three months ended June 30, 2025.
  • Zeta's Banktech Deals: Software startup Zeta expects to onboard two large banks by mid-2026 for end-to-end technological revamps, focusing on digital services like credit cards, credit lines on UPI, and UPI payments. The company aims to be profitable globally in FY26.
  • MSME Credit: Swiggy announced a partnership with PayU Finance to offer credit solutions to its restaurant partners. They target an annual run rate of ₹300 crore in credit disbursements in the next fiscal year.
  • Cooperative Banking Digitization: The Gujarat State Cooperative Bank Ltd (GSC Bank) was rated by SKOCH for its Technology Umbrella initiative, launched in 2013, which provides smaller cooperative banks (DCCBs and UCBs) access to advanced digital payment systems (RTGS, NEFT, UPI, etc.) through a shared infrastructure, bridging the technological gap between rural and urban areas.

III. Manufacturing, Capital Goods, and Infrastructure

  • Capital Goods Performance: The S&P BSE Capital Goods index gained 21% over the prior six months. The sector generally expects a decent Q2 FY26 earnings season, anticipating 15% year-on-year revenue and Ebitda growth.
    • High Growth Segments: Solar equipment makers are expected to grow nearly 40%. Transmission and distribution (T&D) companies anticipate over 20% revenue growth driven by data centers and power T&D demand.
    • Slow Segments: Industrial machinery and firms manufacturing abrasives/adhesives expect muted growth due to weaker exports and Chinese dumping. Defence companies face margin pressure from rising commodity costs like copper and aluminum.
  • Private Capex Decline: The value of new private capital expenditure announced dropped 46% in Q2, reaching a five-quarter low of ₹5.2 trillion, suggesting a continued drag on the sector.
  • Shipbuilding Industry: Shipbuilding stocks are generally stable, trading above their 200-day moving average, though year-to-date returns have been modest for most major counters (e.g., Mazagon Dock up 6%, Cochin Shipyard up 12%). The sector is supported by a ₹69,725 crore incentive package aimed at accelerating growth and improving return on equity (ROE). Delays in large defence contracts, such as orders for three Kalvari-class submarines worth an estimated ₹1.5 trillion for Mazagon Dock, are impacting growth visibility.

IV. Energy, Oil & Gas, and Renewables

  • Asset Sale/Acquisition: Jindal Power is in advanced talks to purchase the Jhajjar Thermal Plant from Apraava Energy (a joint venture of CLP and OTPP). Apraava plans to use the proceeds of the sale (estimated at ₹4,000 crore) to fund its renewable energy portfolio, particularly solar and wind projects.
  • Solar Manufacturing Localization: Avaada Electro, the solar module arm of Avaada Group, plans to achieve full domestic manufacturing of the entire solar component value chain (polysilicon, wafers, ingots, cells, and modules) by FY28. The company is expanding its capacity from 8 GW of modules to include 6 GW of solar cell manufacturing.
  • ONGC Financing: State-run Oil and Natural Gas Corp (ONGC) provided a guarantee for a rupee-denominated bond sale—its first such guarantee in 15 years. The bond, likely issued by its subsidiary OPAL, aims to raise ₹5,000 crore ($563.22 million).
  • Foreign Investment: BP Plc’s India head indicated that the company could invest $3-4 billion in India’s oil & gas exploration and production over three to four years, jointly with partners Reliance Industries and ONGC.

V. Real Estate and Urban Development

  • Navi Mumbai Market Catalyst: The real estate market in Navi Mumbai is back in the spotlight following the inauguration of the first phase of the Navi Mumbai International Airport in Ulwe. Land prices in areas like Panvel, Ulwe, and Kharghar have surged significantly, with Panvel plot rates rising 93% between 2020-21 and 2024-25.
  • New Development Focus: While residential momentum is expected (e.g., Adani Realty planning a 1,000-acre township), the area is also attracting investment as a data centre hub and a logistics/industrial real estate center. The proposed Aerocity adjacent to the airport is expected to further transform the region, although its master plan is yet to be finalized.
  • Lodha Developers Outlook: Lodha Developers reported H1 FY26 pre-sales of ₹9,020 crore (up 8% Y-o-Y). Hitting its full-year target of ₹21,000 crore requires over ₹12,000 crore in the second half (H2 FY26), making timely new launches crucial, especially since the Mumbai Metropolitan Region (MMR) market is deemed mid-cycle and premium housing demand is becoming selective.

VI. Pharmaceuticals and Healthcare

  • Drug Pricing and Generics: In a significant ruling, the Delhi High Court granted a nod to Natco Pharma to sell a generic version of Roche's life-saving drug Risdiplam (used for spinal muscular atrophy or SMA). Natco plans to launch the product immediately at an MRP of ₹15,900 per bottle, substantially lower than Roche's price of over ₹6,00,000.
  • Medical Device Exports: India's Department of Pharmaceuticals (DoP) is preparing a strategy to support domestic medical device manufacturers facing stiff US tariffs and regulations. Proposed measures include subsidies for SMEs, mutual recognition agreements with the US FDA, and expanded accredited testing labs. The goal is to increase export value to the US by 25% and reverse the trade deficit. The industry is valued at $12 billion and projected to grow to $50 billion by 2030.

VII. Consumer Goods, Food, and Retail

  • Petcare Boom: Nestlé SA sees India emerging as a major market for its Purina petcare division, potentially becoming one of the world's top three petcare markets after the US and China. The Indian petcare market, valued at $3.6 billion in 2024, is expected to reach $7 billion in three years.
  • Snack Reformulation: PepsiCo Inc. is revamping its Lay's barbecue potato chip brand, shifting to only natural colors and flavors by replacing synthetic dyes with vegetable juices and carob powder. This effort is driven by pressure from health advocates in the US.
  • Festive Sales: The consumer durables sector is optimistic about festive sales following recent GST cuts, which have spurred consumer interest in ACs and TVs.

VIII. Logistics and Aviation

  • Airline Co-founder Exit: Neelu Khatri, one of the nine co-founders of Akasa Air and former senior vice president of International Operations, resigned. This is the first high-profile departure from the founding team since the carrier launched in 2022. The exit follows Akasa’s recent ₹1,200 crore funding round in August 2025.
  • Go First Dispute: Bankrupt airline Go First filed a plea with the NCLT seeking the release and disclosure of several aircraft components (primarily small tyres and wheels) allegedly withheld by the MRO firm Air Works India, citing unpaid dues.

IX. Trade and Export Industries (Textiles and Seafood)

  • Textile Tariff Crisis (Tiruppur): The introduction of additional US tariffs (up to 50%) on Indian textile imports has severely impacted Tiruppur, India's knitwear capital, making its products uncompetitive. Tiruppur generates 34% of its exports from the US market. Manufacturers are countering this by offering 20% discounts in renegotiated contracts. The industry is seeking immediate government intervention, including extending the NPA classification period for loans to 180 days and a moratorium on term loans.
  • Seafood Exports: India received a major relief as the US National Marine Fisheries Service (NMFS) certified that Indian seafood exports comply with America's mammal protection standards, allowing continued shipments. This approval is crucial as export rivals like China, Mexico, and Ecuador were denied certification. India exported seafood worth $7.39 billion in fiscal year 2025 (FY25).

X. Media and Entertainment

  • Bollywood Slump: The opening of the festive season has failed to pull Indian movie theaters out of their slump. Despite the festival period typically contributing 30% of annual box office income, exhibitors anticipate only 5-10% income growth over the previous year, remaining below 2023’s box-office peaks.
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