Negotiations 🤝
RIL adds to cart, Food wars, and A security IPO.
🗓 Morning, folks!
February has been rough for Indian markets. On Friday, Sensex and Nifty logged their 8th straight losing session, the longest streak in over two years.
A mix of tariff fears and slowing consumer demand is keeping investors on edge.
💡 Spotlight: India’s auto exports jumped 40.2% YoY in January, with passenger vehicles up 17%, two-wheelers up 46.2%, and three-wheelers up nearly 20%.
While domestic sales were steady, utility vehicle exports surged 61%, reflecting strong global demand for Indian-made vehicles.
Let’s hit it. 🚀
1 Big Thing: When a ‘negotiator’ & ‘deal-maker’ sat together 🤝
When Modi and Trump sit down, there’s always something big on the table. This time, it was everything, defense, trade, energy, and tech.
India wants advanced military tech, the US wants trade balance, and both want to dominate AI and semiconductors.
But with Trump doubling down on tariffs and India pushing for more access, the negotiations weren’t all smooth sailing.
Here’s what went down. 👇
Defense was the headline act. The US is considering selling F-35 stealth fighters and undersea warfare systems to India—marking a major shift in military cooperation. India is also set to buy six more P-8I Maritime Patrol aircraft, boosting surveillance in the Indian Ocean.
Trade talks got real. The two sides locked in a target of $500 billion in bilateral trade by 2030. India agreed to lower tariffs on bourbon, motorcycles, and metals, while the US promised easier market access for Indian mangoes and pomegranates.
India is increasing oil and gas imports from the US, and in return, the US backed India’s entry into the International Energy Agency (IEA). On the nuclear front, India is moving forward with US-designed reactors, backed by planned legal reforms.
Tech and AI got a major push. The two countries announced the US-India TRUST initiative, focused on AI, semiconductors, and space. A roadmap for AI infrastructure will roll out by year-end, aiming to bring big private investments into India’s expanding data center ecosystem.
And then there were tariffs—Trump didn’t hold back. Right next to Modi, he called India’s tariffs "unfair" and reaffirmed his reciprocal tariffs stance — which is set at 25%. The US is now drafting a framework for retaliatory tariffs against countries imposing high duties on American exports, putting India in a tricky spot.
Zoom Out: India and the US are doubling down on trade, defense, and tech, but tariffs remain a sore point. With Trump pushing for a tougher stance on trade, the coming months could define whether this partnership moves forward smoothly, or hits a few speed bumps.
2. BSNL makes a comeback 🗼
The last of the telecom giants to report was BSNL, and as far as BSNL’s history goes, this was a pretty robust quarter for the state-run telco player.
For the first time since 2007, BSNL posted a profit, signaling a turnaround fueled by customer additions and cost-cutting measures. But while revenue streams are picking up, competition remains intense.
By the numbers:
Profit stood at a solid ₹262 crore
Mobility services revenue grew 15% YoY, FTTH (Fiber-to-the-Home) surged 18%, and leased line services rose 14%.
Cost-cutting measures reduced overall losses by ₹1,800 crore compared to last year.
BSNL credits its network expansion and service innovations for the turnaround.
Zoom out: BSNL’s comeback coincides with a ₹6,000 crore financial package from the government to boost 4G expansion and 5G readiness. The spending which improves services, coupled with consumers ready to pay generally higher prices, is helping the telco chart its recovery.
While we are on earnings…☝️
Ola Consumer, the company’s ride hailing biz had a rough FY24, as revenue slipped but profitability improved.
Total revenue fell 21% YoY to ₹2,368 crore, down from ₹3,000 crore last year.
But EBITDA surged to ₹271 crore, showing better cost management.
Ola is betting big on premium ride-hailing (Prime Plus) and expanding two- and three-wheeler services into smaller cities.
Its EV fleet strategy is also in full swing, aiming for lower costs and higher driver incentives.
Moreover, Ola is experimenting with financial services, food delivery, and a lot more that would make it a digital super app.
3. Reliance adds another FMCG brand to its cart 🛒
Reliance Consumer Products (RCPL) acquired Velvette, the personal care brand that pioneered sachet packaging in India.
The deets: founded in Chennai by CK Rajkumar, India’s original "sachet king", Velvette changed the game with its PVC pillow pouch shampoo packs, making personal care more accessible.
Over time, the brand expanded into a wider range of personal care and household products.
The strategy: RCPL is aggressively expanding its FMCG footprint by reviving legacy brands. Reliance’s playbook is clear: scoop up well-known legacy brands, give them a fresh push, and take on the incumbents
Last month, it snapped up SIL Foods, entering direct competition with Tata Consumer and Cremica in packaged foods.
Similarly, it has also revived Campa Cola in a bid to shake up the beverage market.
Bottomline: household and personal care account for nearly 50% of India’s FMCG market, with the D2C segment set to hit $21 billion in 2025.
4. Quick IPO in focus 🔍
Innovatiview India, a security and surveillance solutions provider, filed for a ₹2,000 crore IPO, entirely an offer for sale (OFS).
What do they do: the company dominates India’s exam security space with a 73.7% market share, by providing tech-driven security and surveillance solutions for exams, elections, and large-scale events across India.
It is also one of the first companies in India to integrate AI in CCTV surveillance and accurate touchless biometric verification solutions for impersonation control in examinations.
As of FY24, the company reported ₹638 crore in revenue, a sharp rise from ₹381 crore the previous year, with profits at ₹197 crore.
Worth noting: this is a pure OFS, meaning no fresh capital, just a stake sale by promoters.
5. Stocks that kept us interested 📈
Bharat Heavy Electricals Ltd (BHEL) bagged a ₹6,700 crore order from Singareni Collieries Company (SCCL) to set up an 800 MW thermal power unit in Telangana.
FYI, BHEL is India’s largest power equipment manufacturer, with over 1,70,000 MW of utility power capacity installed nationwide.
Why it matters: the project will be built on an Engineering, Procurement & Construction (EPC) basis. BHEL’s scope includes design, engineering, manufacturing, supply, and commissioning of the plant.
The company has already installed over 75% of Telangana’s coal-based power capacity, further cementing its role in the state’s energy sector.
Shares surprisingly tanked on Friday.
What else are we snackin’ 🍿
🎨 Paints off: Asian Paints is exiting Indonesia, selling its business to Australia's Omega Property Investments for $5.6 million.
🍔 Food fights: Rebel Foods has launched ‘QuickiES’—a 15-minute food delivery app to take on Zomato and Swiggy.
💊 Zepto pharma: Zepto has added a “pharmacy and wellness” section to its app in Mumbai, Bengaluru, and Hyderabad.
🌎 Map wars: Mexico is considering suing Google after the tech giant changed its maps to rename the Gulf of Mexico as the “Gulf of America.”
That’s a wrap! Don’t let the Monday blues get to you.
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I can feel you drafting this newsletter and shouting like Pam in the gif 😂