Author: Sreelatha M

Categories
Corporate

AceVector sets ₹30-32 price band for ₹420-crore IPO

AceVector, the parent company of Snapdeal, has fixed the price band for its initial public offering (IPO) at ₹30-32 per share. The ₹420-crore public issue will open for subscription on September 25 and close on September 29, marking the company’s entry into the listed market.

The anchor investor portion will open on September 24. AceVector is expected to list its shares on October 5, according to the issue schedule. At the upper end of the price band, the company is seeking a valuation of about ₹1,741 crore.

The IPO comprises a fresh issue of shares worth ₹287 crore and an offer for sale (OFS) of 4.16 crore shares worth about ₹133 crore. The OFS will allow existing shareholders to sell part of their holdings, with the proceeds going to those investors rather than the company.

The issue is smaller than AceVector’s earlier IPO proposal. The company had initially planned a fresh issue of ₹300 crore along with an OFS of 6.38 crore shares. The revised offer has reduced both the fresh issue and the shares being sold by existing investors.

SoftBank-backed Starfish is among the shareholders participating in the OFS. Nexus Venture Partners and other existing investors are also selling shares. AceVector’s co-founders, Kunal Bahl and Rohit Bansal, are not selling any shares in the IPO. Together, they hold about 33.99% of the company, directly and through their jointly owned entity B2 Professional Services LLP.

The fresh capital will be used primarily to strengthen AceVector’s digital commerce operations. The company plans to spend part of the proceeds on marketing and business promotion for Snapdeal, invest in technology infrastructure and pursue acquisitions as part of its inorganic growth strategy. The remaining funds will be used for general corporate purposes.

AceVector has built its business around an asset-light digital commerce model that combines online retail, technology and consumer brands. Its main businesses include Snapdeal, Unicommerce and Stellaro Brands.

Snapdeal operates as a value-focused lifestyle e-commerce marketplace, targeting consumers looking for affordable products across categories. Unicommerce provides software and technology solutions to help online sellers and retailers manage their e-commerce operations. Stellaro Brands operates in the consumer brands and omnichannel retail segment.

The diversified structure gives AceVector exposure to different parts of the digital commerce value chain. While Snapdeal operates on the consumer side, Unicommerce provides technology infrastructure to businesses, creating a separate business-to-business component within the group.

Unicommerce, which is part of the AceVector ecosystem, was separately listed on the stock exchanges in 2024. Its IPO had received strong demand, with the issue being subscribed more than 168 times.

AceVector’s financial performance has also improved on several operating measures, although the company remains loss-making.

Revenue from operations rose 29.2% to ₹510.38 crore in financial year 2025-26 from ₹395.02 crore in FY25. Its adjusted EBITDA loss narrowed sharply to ₹15.94 crore from ₹39.16 crore a year earlier.

The company nevertheless reported a consolidated net loss of ₹60.7 crore in FY26, compared with ₹139.2 crore in the previous financial year. The numbers indicate that while revenue growth has accelerated and operating losses have narrowed, AceVector has yet to achieve overall profitability.

The company’s planned investment in Snapdeal’s marketing and technology infrastructure comes as the e-commerce business continues to focus on the value segment. Rather than competing across the entire online retail market, Snapdeal has increasingly positioned itself around affordable lifestyle products and price-conscious consumers.

AceVector‘s strategy also includes expanding through acquisitions. The company has identified inorganic growth as one of the uses for the fresh capital raised through the IPO, potentially allowing it to add businesses or capabilities to its existing digital commerce ecosystem.

The IPO comes during an active period for India’s primary market. Several mainboard and small and medium enterprise companies are accessing the capital markets this week, making the AceVector issue part of a broader increase in IPO activity.

For retail investors, the minimum application is 468 shares. At the upper price band of ₹32, one lot requires an investment of ₹14,976. Retail investors can apply for up to 6,084 shares, or 13 lots, according to the issue details.

Qualified institutional buyers will receive 75% of the offer, while 15% has been reserved for non-institutional investors and 10% for retail investors. IIFL Capital Services, CLSA India and Systematix Corporate Services are the book-running lead managers for the issue.

AceVector’s public offering represents an important transition for the Snapdeal parent as it moves from a privately held digital commerce company to a publicly traded business. The IPO will provide fresh capital for its next phase of expansion while giving existing investors an opportunity to partially exit their holdings.

The company’s performance after listing will be closely linked to its ability to sustain revenue growth, reduce losses and build scale across Snapdeal, Unicommerce and Stellaro Brands. Its use of IPO proceeds, particularly in technology, marketing and acquisitions, will also remain a key focus as AceVector begins its life as a listed company.

With the IPO opening on September 25, AceVector is entering the public market at a time when India’s digital commerce sector continues to evolve, with businesses increasingly combining e-commerce platforms, technology services and consumer brands under integrated models.

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Corporate

Sensex gains 300 points, Nifty rises 110 points

The stock markets bounced back on Wednesday, with the Sensex gaining nearly 300 points and the Nifty rising more than 110 points as softer crude prices, stronger domestic economic data and easing concerns over the US-Iran conflict lifted investor sentiment.

The BSE Sensex climbed 299.17 points, or 0.40%, to close at 74,828.25. The NSE Nifty 50 gained 117.80 points, or 0.50%, to end at 23,446.80. The recovery came a day after both benchmarks had fallen sharply during the closing session.

The Nifty opened at 23,352.15 and moved between 23,349.55 and 23,466.90 during the session before settling near the day’s higher levels. Market breadth was positive, with 36 of the 50 Nifty stocks ending in the green and 14 closing lower.

The rebound was supported by a combination of domestic and global factors. Investors took some comfort from September’s flash Purchasing Managers’ Index data, which pointed to continued strength in India’s economic activity without a matching rise in inflation pressures.

The data helped shift attention back to domestic growth after markets had been weighed down by geopolitical uncertainty and oil-price swings. Analysts said investors were also watching crude prices closely because any sustained rise in oil could put pressure on India’s import bill, inflation and the rupee.

Brent crude remained below the $100-a-barrel mark on Wednesday, providing some relief to Indian equities. Oil prices had earlier risen sharply because of concerns about supply disruptions linked to the conflict involving the US and Iran. Hopes of diplomatic progress helped ease some of those concerns.

Metal stocks were among the biggest drivers of the day’s gains. The Nifty Metal index rose more than 2%, with buying seen across several metal companies. Nifty FMCG gained 1.27%, Nifty Pharma rose 0.72%, Nifty PSU Bank advanced 0.97% and Nifty Auto added 0.25%.

Bajaj Finance emerged as the biggest Nifty 50 gainer, rising 3.41%. Hindalco Industries gained 3.17%, while Tata Steel advanced 3.16%. The strength in these stocks helped the broader market recover after Tuesday’s sharp sell-off.

Other stocks that supported the Sensex included Bajaj Finserv, Larsen & Toubro, Power Grid, UltraTech Cement and Reliance Industries. Economic Times market data showed several of these stocks among the leading Sensex gainers during the session.

The IT sector, however, remained a weak spot. The Nifty IT index fell more than 1%, making it the biggest sectoral laggard. Nifty Media also declined, slipping 0.63%.

Among individual Nifty stocks, HCL Technologies was the biggest loser, falling 1.08%. Titan Company declined 0.98%, while Infosys slipped 0.86%. These losses limited the overall rise in the benchmark indices.

TCS was also among the weaker Sensex constituents, while HCL Tech, Infosys and Titan remained under pressure. Economic Times data showed TCS, Infosys and HCL Tech among the major Sensex losers during the day.

The broader market also showed signs of recovery. Buying was not limited to a handful of large companies, with participation across several sectors helping improve overall market breadth. The positive advance-decline ratio suggested that investors were willing to return to stocks after the previous day’s volatility.

The rupee and foreign fund flows remained important factors for investors. The Indian currency has been under pressure from elevated crude prices, a firm US dollar and foreign investor selling. Lower oil prices provided some relief, although analysts continued to flag sustained foreign institutional investor outflows as a risk for Indian equities.

Global markets also offered some support. Asian equities were mixed, with Japan’s Nikkei, Taiwan’s benchmark and South Korea’s Kospi ending higher, while Hong Kong’s Hang Seng declined. The positive performance of several Asian markets helped improve the overall risk mood.

Investors are now likely to keep a close watch on crude oil, US-Iran developments, global bond yields, foreign institutional flows and upcoming corporate earnings. The market’s recovery on Wednesday showed that buyers were willing to step in after the previous session’s decline, but volatility remains high.

Gold and silver also moved lower during the session. Gold fell 0.54% to ₹1,52,889 per 10 grams for 24-carat purity, while silver declined more than 1% to ₹2,37,341 a kg at the time of reporting.

The Wednesday session therefore brought some stability back to Dalal Street. The Sensex regained ground above 74,800 and the Nifty moved back above 23,400, with metals, banks and consumer stocks leading the recovery. However, global geopolitical developments and crude prices remain key factors that could influence the next market move.

 

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Beyond

Adani firms settle SEBI cases for ₹1.51 cr

Five Adani Group companies have settled regulatory proceedings with the Securities and Exchange Board of India (SEBI) by paying a combined ₹1.51 crore. The cases were linked to disclosure and audit-related issues examined by the regulator after allegations raised in the 2023 Hindenburg Research report.

The companies involved are Adani Enterprises, Adani Green Energy, Adani Total Gas, AWL Agri Business and Adani Energy Solutions. AWL Agri Business was formerly known as Adani Wilmar, while Adani Energy Solutions was earlier called Adani Transmission.

The settlement order was passed by SEBI adjudicating officer Jai Sebastian on September 22. The proceedings were closed after the companies paid the agreed settlement amounts. Importantly, the settlement was made without the companies admitting or denying the findings of fact or conclusions of law.

Adani Enterprises paid the largest amount at ₹76.05 lakh. Adani Green Energy paid ₹45.50 lakh, while Adani Total Gas, AWL Agri Business and Adani Energy Solutions paid ₹9.75 lakh each.

The proceedings followed a SEBI examination into allegations and corporate governance concerns highlighted in the Hindenburg report. The regulator examined possible violations involving related-party transactions, disclosure requirements and audit reports.

One of the main issues involving Adani Enterprises concerned the alleged non-disclosure of certain related-party transactions in its annual report for the financial year 2012-13. SEBI’s notice referred to transactions involving Adani Estates, a subsidiary of Adani Enterprises, and Vakoder Investment.

The regulator also raised questions about audit and limited review reports submitted by several Adani companies. Some of these reports were allegedly signed by audit firms that did not have valid peer review certificates at the time.

The issues covered different periods between 2015 and 2021 and involved companies including Adani Enterprises, Adani Green Energy, Adani Total Gas, AWL Agri Business and Adani Energy Solutions.

SEBI had issued show-cause notices to the companies in February 2024. During the proceedings, the companies opted for settlement under the regulator’s settlement framework rather than continuing with the adjudication process.

Settlement terms were revised and proposed in May 2026. SEBI’s High Powered Advisory Committee recommended the payments, which were subsequently accepted by the regulator’s panel of whole-time members in August.

The companies informed SEBI on September 5 that the settlement amounts had been paid. With the regulator confirming receipt of the money, the adjudication proceedings were formally disposed of.

The latest development is significant because the cases were connected to SEBI’s broader examination of allegations raised in the Hindenburg report, which triggered intense scrutiny of the Adani Group and its listed companies in early 2023.

Hindenburg Research had accused the conglomerate of stock manipulation and improper use of offshore entities, allegations that the Adani Group has denied. The short-seller’s report led to a sharp fall in Adani Group shares and wiped out a large amount of market value at the time.

The current settlements, however, relate specifically to disclosure and audit-compliance issues examined by SEBI. The settlement itself does not amount to an admission of wrongdoing by the companies. Reuters reported that SEBI’s broader investigations into other allegations have not all been resolved by this settlement.

The distinction is important for investors. A regulatory settlement closes the specific adjudication proceedings covered by the order, but it does not necessarily mean every issue associated with the Hindenburg report has been settled.

SEBI’s order also leaves room for further action in certain circumstances. The regulator can restore or initiate proceedings if information provided during the settlement process is later found to be untrue, if the companies breach their undertakings or waivers, or if a discrepancy is found in the settlement process.

The development is likely to keep Adani Group stocks in focus in the market. The five companies involved include some of the group’s major listed businesses across infrastructure, energy, gas and renewable power.

The settlement also comes after other regulatory developments involving the group. Earlier in September, Adani Ports managing director Karan Adani and CFO B Ravi separately settled SEBI proceedings linked to transactions involving PMC Projects, paying ₹13.65 lakh each.

For investors, the immediate focus will be on whether the latest settlement reduces regulatory uncertainty around the companies and how the market interprets the closure of these specific cases.

The ₹1.51-crore settlement is relatively small compared with the size of the Adani Group’s listed businesses. Its larger significance lies in the fact that it formally closes five SEBI adjudication proceedings arising from the regulator’s examination of issues highlighted after the Hindenburg report, while leaving the distinction between these settled matters and any other regulatory proceedings intact.

 

Categories
Corporate

Sensex surges 350 points, Nifty crosses 23,400

The stock markets bounced back on Wednesday, with the Sensex rising more than 350 points and the Nifty 50 moving above the 23,400 mark in early trade. Buying returned to financial, metal, FMCG and realty stocks after the benchmarks ended lower in the previous session.

The Sensex opened on a firm note and gained around 350 points during morning trade. The Nifty 50 also moved higher, crossing 23,400 as investors picked up shares across several sectors. The recovery came after the Sensex had fallen nearly 330 points and the Nifty had declined more than 85 points on Tuesday.

Market breadth was positive, with more stocks advancing than declining. The broader market also saw buying interest, suggesting that the recovery was not limited to a handful of heavyweight stocks.

Financial stocks were among the biggest contributors to the gains. Bajaj Finance emerged as one of the top Nifty 50 gainers, rising more than 2%, while Bajaj Finserv also gained over 2%. The two stocks benefited from renewed buying interest, with Bajaj Finance also getting a boost after UBS upgraded its view on the stock.

Metal stocks were another major source of strength. The Nifty Metal index gained more than 1%, with steel and mining companies attracting buyers. JSW Steel, Tata Steel and Hindalco were among the prominent gainers. SAIL also moved sharply higher, gaining more than 4% at one point during the session.

The broader market followed the positive trend. Motilal Oswal, 360 ONE WAM and Radico Khaitan were among the stronger performers in the Nifty Midcap 150 index.

Among the top gainers, Bajaj Finance, Bajaj Finserv, JSW Steel, Tata Steel and Hindalco stood out in the Nifty 50. In the midcap space, Motilal Oswal, 360 ONE WAM, Radico Khaitan and SAIL were among the stocks seeing strong buying.

However, not every stock participated in the rally. Suzlon Energy, Paytm, Persistent Systems, Sundaram Finance and Lupin were among the notable laggards in the Nifty Midcap 150. Suzlon Energy fell more than 2%, while Paytm also declined over 2%. Persistent Systems remained under pressure as investors booked profits in the technology stock.

The IT sector was one of the weaker pockets of the market, continuing the pressure seen in the previous session. Some banking stocks also traded lower even as the broader banking index gained. ICICI Bank and Federal Bank were among the stocks in the red during morning trade.

One of the key factors supporting sentiment was the movement in crude oil prices. Brent crude slipped below $100 a barrel, easing some concerns for oil-importing economies such as India. Hopes of possible talks between the US and Iran also helped reduce some of the recent pressure on crude prices.

Lower oil prices are important for Indian markets because India imports a large share of its crude requirement. A sustained fall in crude can help contain inflationary pressure and reduce the cost burden for several businesses. It can also ease concerns around the rupee and India’s import bill.

Global cues were mixed but offered some support. US technology stocks helped the Nasdaq end at a record high in the previous session, while the Dow closed lower. Asian markets were also mixed, leaving investors to balance positive technology cues with concerns over global growth, interest rates and geopolitical developments.

Investors were also watching foreign institutional investor activity. Continued selling by overseas funds has remained a concern for Indian equities, particularly when global markets turn volatile. Market participants are closely tracking foreign fund flows, crude prices, the rupee and developments in West Asia for signs of the market’s next direction.

The primary market also added to the day’s activity. SS Retail made a strong stock market debut, listing at a substantial premium to its issue price. The stock opened at ₹639.10 on the BSE against an issue price of ₹424.

Hero Motors, meanwhile, had a weaker start, opening below its issue price on the NSE before recovering during early trade. The stock later moved sharply higher, reflecting strong buying interest after its initial decline.

Investors were also keeping an eye on corporate developments involving Adani Group companies, oil marketing companies and Persistent Systems. Persistent Systems said it had secured 83.25% of Nagarro’s outstanding share capital, adding to the stock-specific activity in the technology space.

 

Categories
Leaders

Jamie Dimon meets Sitharaman in Mumbai

JPMorgan Chase Chairman and CEO Jamie Dimon met Union Finance Minister Nirmala Sitharaman in Mumbai on Monday, as the US banking giant held its annual India Investor Conference.

The meeting came as global investors and senior corporate executives gathered in Mumbai to discuss India’s economy, markets and investment opportunities. The two-day conference, held on September 21 and 22, brought together more than 1,000 investors and business leaders.

The Finance Ministry confirmed the meeting between Sitharaman and Dimon but did not disclose details of their discussion. Sitharaman also addressed the investor conference and participated in a conversation with JPMorgan’s Asia economics chief Sajjid Chinoy.

Dimon’s visit highlights JPMorgan’s growing focus on India. The bank has expanded its operations across investment banking, technology, payments and financial services and now has a workforce of more than 55,000 in the country.

India has become an important market for JPMorgan as companies raise more money through stock markets, pursue acquisitions and expand overseas. The bank has been active in equity offerings and other capital-market transactions involving Indian companies.

Dimon is also meeting senior business leaders during his Mumbai visit. Executives from several major Indian companies are taking part in meetings with investors at the conference, giving global funds an opportunity to assess sectors ranging from manufacturing and financial services to technology and consumer businesses.

The bank sees opportunities in areas such as artificial intelligence, renewable energy, digital infrastructure, data centres, healthcare and cross-border mergers and acquisitions.

Dimon has maintained a long association with India. His first visit to the country was around 2005, when JPMorgan’s presence was much smaller. Since then, India has developed into one of the bank’s largest international bases, particularly for technology, engineering, cybersecurity and global support operations.

India’s economic growth is a major focus for investors attending the conference. Questions around domestic consumption, corporate earnings, infrastructure spending and policy reforms are shaping the investment outlook.

Dimon has spoken positively about India’s longer-term economic potential during his visit. He has said India could significantly expand its economy over the next decade if it maintains its growth momentum.

At the same time, the JPMorgan chief has pointed to areas that could concern international investors. Tax uncertainty and the way taxes are applied to certain business transactions remain issues that companies monitor when deciding where to invest.

Global energy policy is another issue on Dimon’s radar. He has urged policymakers to consider the impact on oil markets and India’s refining sector when dealing with countries that purchase Russian crude.

His comments come at a time when India’s energy imports and its relationship with Russia remain closely watched by international markets and governments.

The Mumbai conference also comes as the Indian government continues efforts to attract foreign investment. Sitharaman has repeatedly called on global companies to expand manufacturing and technology operations in India and use the country’s large pool of skilled workers.

The opportunity for JPMorgan extends beyond traditional banking. India’s expanding capital markets, rising corporate activity and growing technology sector are creating demand for investment banking, financing, payments and other financial services.

The meeting between Dimon and Sitharaman therefore comes at an important time for both sides. While details of their conversation were not released, their meeting brought together two key parts of India’s investment story, government policy and global financial markets.

As international investors continue to assess India’s growth prospects, JPMorgan’s expanding presence reflects the increasing importance of the country to global financial institutions.

 

Categories
Corporate

NSE IPO draws strong demand ahead of listing

The much-awaited initial public offering of the National Stock Exchange (NSE) has received strong investor interest, with the ₹22,561-crore issue subscribed 5.71 times by the time bidding closed on Monday.

The NSE IPO, one of India’s biggest public issues this year, received bids for about 50.58 crore shares against 8.86 crore shares on offer. The strong overall response was led by institutional investors, while retail participation remained relatively modest.

Qualified institutional buyers, or QIBs, subscribed to 12.68 times the shares reserved for them. Non-institutional investors subscribed 6.55 times their portion, while the retail category was subscribed 1.39 times. The employee portion received 2.4 times subscription.

The issue attracted bids worth around ₹90,300 crore at the upper end of the price band, showing the level of interest among large investors. The NSE IPO is entirely an offer for sale, meaning the money raised will go to existing shareholders selling their stake rather than directly to the exchange.

The IPO was open for subscription from September 17 to September 21. Allotment is expected to be finalised on Tuesday, September 22, while NSE shares are scheduled to make their stock market debut on the BSE on September 24.

The strong institutional response reflects the importance of NSE in India’s financial markets. The exchange is the country’s largest stock exchange by trading activity and has become a major part of India’s growing equity and derivatives markets.

NSE’s market position has been one of the key attractions for investors. Its platforms handle a large share of India’s equity trading, while the exchange also operates major indices such as the Nifty 50 and provides clearing, market data and other services.

The IPO has also attracted attention because of the exchange’s long-awaited move to the public markets. NSE had first sought to list its shares years ago, but regulatory issues and other hurdles delayed the process.

The exchange’s public debut comes after a major regulatory settlement earlier this year helped clear one of the final obstacles to the IPO. The long wait has made the issue particularly closely watched by India’s investment community.

Large global and domestic institutions participated in the anchor book before the IPO opened. The anchor investors included the Life Insurance Corporation of India, Norway’s Government Pension Fund Global, the Monetary Authority of Singapore and the Abu Dhabi Investment Authority, among others.

Retail investors, however, approached the issue more cautiously. Although the retail portion eventually crossed full subscription, demand was much lower than that seen in many recent Indian IPOs.

One factor weighing on retail interest was the NSE’s grey-market premium. Market data showed the premium falling sharply during the subscription period from earlier levels, reducing expectations of a large listing gain.

Valuation has also been a talking point. The IPO’s upper price band was set at ₹1,785 a share, below the exchange’s earlier unlisted-market peak. Analysts cited by Business Standard have also pointed to NSE’s earnings performance and its heavy dependence on derivatives trading as areas investors are watching.

The derivatives business is particularly important for NSE. Options trading accounts for a large share of the exchange’s transaction revenue. Changes introduced by the Securities and Exchange Board of India (Sebi) to curb excessive retail participation in derivatives have therefore become an important issue for investors assessing the exchange’s future earnings.

NSE’s net profit also declined in the financial year ended March 2026 compared with the previous year, while its operating margin narrowed. That has led investors to look beyond the exchange’s dominant market position and examine how its earnings may evolve as derivatives trading changes.

Despite these concerns, the strong institutional subscription shows that major investors continue to see value in India’s market infrastructure and the NSE’s position within it.

The exchange has benefited from the rapid growth of India’s equity markets over the past decade. Rising retail participation, greater use of digital trading platforms and growing interest in stocks and derivatives have helped NSE expand its business.

The upcoming listing will now give investors a chance to trade NSE shares directly on the stock market. It will also provide a market-based valuation for one of India’s most important financial institutions.

Attention will shift to the allotment process on September 22 and the listing on September 24. Investors will be watching how the shares perform after listing, particularly against the backdrop of changing derivatives regulations, market volatility and the broader outlook for India’s capital markets.

The NSE IPO has therefore become more than just another large public issue. It marks the long-awaited arrival of India’s biggest stock exchange on the listed market, bringing its own shares into the trading ecosystem it has helped build.

 

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Beyond

Starbucks to set up global tech centre in Chennai

US coffee giant Starbucks is setting up a Global Capability Centre (GCC) in Chennai, expanding its technology operations in India and creating around 800 jobs in the first phase.

The company has signed an agreement with the Tamil Nadu government for the new centre, which will support Starbucks’ global operations. The investment amount has not been disclosed.

The Chennai centre will be Starbucks’ first such technology hub in India. The company said the new facility will work with its technology and business teams in the US and other parts of the world.

Starbucks plans to use the centre for technology and other specialised functions, including software development, finance and research and development. The move reflects the changing role of Global Capability Centres in India, which are increasingly handling important global work rather than only routine back-office operations.

The company said Chennai was selected after considering its strong pool of technology professionals, talent retention and infrastructure. The city also fits Starbucks’ wider technology strategy, with teams expected to work closely with operations in locations including Seattle, Nashville, London and Hong Kong.

Recruitment for the new centre is expected to begin in the coming months, with Starbucks planning local hiring and office preparations before operations are fully established. The company has said it is still in the early stages of building the new hub.

The expansion comes as Chennai continues to attract major international companies looking to establish technology and global capability centres. The city already hosts technology operations of global firms such as Citi, Barclays and American Express.

Starbucks’ move follows a similar announcement by US pharmacy company Walgreens, which recently signed an agreement with the Tamil Nadu government to establish a GCC in Chennai. The two developments underline the city’s growing importance as a destination for multinational technology operations.

India has become one of the world’s largest hubs for GCCs. These centres have evolved significantly over the past decade. Instead of focusing mainly on administrative and low-cost support work, many now handle areas such as artificial intelligence, software engineering, product development, cybersecurity, finance, analytics and research.

According to a 2026 Nasscom-Zinnov report cited in the latest reports, India’s GCC sector employs more than 2.36 million people and generates nearly $100 billion in annual revenue. Chennai accounts for about 10% of India’s GCC infrastructure.

The growth of GCCs has also become an important source of high-skilled employment in India. Companies are increasingly using the country’s large technology talent pool to support operations across different global markets.

Starbucks already has a sizeable presence in India through its joint venture with Tata Consumer Products. The coffee chain operates nearly 500 stores across the country, making India one of its important international markets.

The new technology centre is different from Starbucks’ retail business. Its primary role will be to support the company’s global technology and business requirements.

Starbucks’ global technology chief Anand Varadarajan said the Chennai hub will allow the company to bring more work currently handled by third-party service providers in-house over time. The centre is expected to become part of Starbucks’ broader technology network rather than operate as a separate unit.

The company has also said the Chennai team will work closely with technology and business teams in other countries. This means the centre is expected to contribute directly to Starbucks’ global operations rather than focus only on India-specific requirements.

The decision comes at a time when Tamil Nadu is aggressively attracting investments in technology, manufacturing and other high-value industries. Chennai’s established IT infrastructure, engineering talent and large pool of skilled professionals have helped it compete for global technology projects.

The expansion of GCCs in Chennai is also changing the nature of employment opportunities available in the city. High-skilled jobs in software, data, finance, research and technology are increasingly being created alongside traditional IT services roles.

The Chennai centre offers access to this growing talent pool while allowing Starbucks to build a more connected global technology organisation. The company said its aim is to create teams that can work across locations and support its partners, coffeehouses and customers worldwide.

The initial 800 jobs are expected to be only the first phase of the project. Starbucks has not announced the total size of the centre or the final investment, leaving scope for the operation to expand as hiring and infrastructure plans develop.

The move adds another major global brand to Chennai’s growing GCC ecosystem and strengthens the city’s position as a technology and innovation hub. With Starbucks joining other multinational companies in establishing specialised operations, the competition among Indian cities to attract high-value global projects is also set to intensify.

 

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1 Minute-Read

Nestle baby food faces FSSAI scrutiny

The Food Safety and Standards Authority of India (FSSAI) has initiated three cases against Nestlé India over alleged violations involving infant nutrition products.

Two cases concern claims made for NAN Excella Pro Stage 1 and Lactogen Pro 1, including statements about human milk oligosaccharides and whey protein.

A third case involves a follow-up formula sample that allegedly failed prescribed biotin levels even after re-testing. Nestlé has said its products comply with applicable regulations and that the claims were scientifically supported and approved by an FSSAI expert committee.

The cases will now go through the regulatory adjudication process.

Categories
Beyond

FSSAI acts against Nestle baby food

The Food Safety and Standards Authority of India (FSSAI) has initiated three separate cases against Nestlé India over alleged regulatory violations involving infant nutrition products. The action covers promotional claims made for two baby food products and a separate issue involving the biotin content of a follow-up formula.

The regulator examined products and promotional material available on e-commerce platforms before taking action. The cases involve NAN Excella Pro Stage 1, Lactogen Pro 1 and a follow-up formula.

Two cases relate to the way NAN Excella Pro Stage 1 and Lactogen Pro 1 were promoted. FSSAI has questioned claims associated with five human milk oligosaccharides, or HMOs, and whey protein in NAN Excella Pro Stage 1.

HMOs are complex sugars naturally found in breast milk and are increasingly used in infant nutrition products. FSSAI has also objected to a claim on Lactogen Pro 1 that described its whey protein as easy to digest.

The regulator has said such promotional claims are restricted under India’s rules governing infant food and milk substitutes. These rules are designed to ensure that marketing does not encourage the sale of infant milk substitutes through claims or presentation that could influence parents’ feeding choices.

The issue is particularly sensitive because infant formula is not treated like an ordinary packaged food in India. The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992, places strict limits on advertising and promotion of these products.

The Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020, provide additional requirements for infant nutrition products. Together, the rules cover areas including labelling, nutritional composition and promotional claims.

The third case involves a different concern. FSSAI said a sample of a Nestlé follow-up formula was found to have non-conforming levels of biotin during laboratory testing. The sample was subsequently sent for re-analysis, and the referral laboratory also found that it did not meet the prescribed requirement.

Biotin, also known as vitamin B7, is a water-soluble vitamin that plays a role in several metabolic processes. Infant foods are required to meet specified nutrient levels because babies and young children have particular nutritional requirements during early growth.

The biotin finding is separate from the promotional claims involving NAN Excella Pro Stage 1 and Lactogen Pro 1. One set of cases concerns how products were marketed, while the other concerns the nutritional composition of a tested sample.

Nestlé India has rejected any suggestion that its infant nutrition products do not comply with regulations. The company has said NAN Excella Pro and Lactogen Pro are fully compliant with applicable requirements. It has also said the labels under scrutiny were approved by an FSSAI expert committee and that the claims were supported by scientific evidence.

The company has said it will continue to cooperate with the regulator and has submitted its response to the proceedings.

The cases are now part of the regulatory adjudication process. The initiation of legal action does not, by itself, amount to a final finding of guilt or establish that the products are unsafe. The proceedings will determine whether the alleged violations are established and whether any penalty or further action is required.

The development has brought fresh attention to the importance of labelling and marketing in India’s infant nutrition market. Parents often rely on information printed on packaging or displayed on shopping websites when choosing formula and other baby food products. Claims about digestion, nutrients and ingredients can therefore have a direct influence on how a product is perceived.

The FSSAI action also highlights the growing importance of monitoring online marketplaces. Product descriptions and promotional material on e-commerce platforms can reach consumers just as directly as advertisements or packaging. Regulators are increasingly examining such information as part of food safety and compliance checks.

Nestlé has faced regulatory scrutiny in India before, most notably during the 2015 Maggi noodles controversy. That episode involved allegations over lead levels and resulted in a temporary ban on the product before it returned to the market after subsequent testing and legal proceedings. The present matter concerns infant nutrition and involves different regulatory questions.

The latest action comes as food safety authorities continue to focus on product standards, labelling and claims made to consumers. Infant nutrition remains one of the most closely regulated parts of the food sector because of the vulnerability of the consumers involved.

The outcome of the three FSSAI cases will determine what action, if any, Nestlé India faces. Until then, the regulator’s allegations and the company’s response remain part of an ongoing legal and regulatory process.

 

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Leaders

Air India CEO weighs merger of Air India Express

Air India is considering a possible merger of its budget carrier, Air India Express, with the parent airline as incoming CEO Tewolde Gebremariam looks for ways to reduce costs and simplify operations.

The proposal is still being discussed and no final decision has been taken. If approved, Air India Express could continue as a separate brand while being brought under a common operating structure with Air India.

The idea has emerged as Gebremariam prepares to take charge of the Tata Group-owned airline. People familiar with the matter said the incoming CEO has questioned whether Air India and Air India Express need to maintain separate operating structures and licences.

Combining parts of the two airlines could help remove duplication across management, engineering, administration and other support functions. A common structure could also allow the group to share resources more efficiently and reduce some operating expenses.

Air India Express would not necessarily disappear as a brand. The low-cost airline could continue serving price-sensitive travellers and short- and medium-haul routes, while Air India focuses on its full-service operations and longer international network.

The proposal would represent another step in the Tata Group’s effort to streamline its aviation business. When the group took control of Air India in 2022, it inherited several airlines and brands. Tata has since worked to bring them under a simpler structure.

Air India merged with Vistara in November 2024, creating a larger full-service airline. AirAsia India was also integrated into Air India Express, which became the group’s main low-cost carrier. The latest proposal could take consolidation a step further by bringing the two airlines under one operating framework.

Gebremariam is expected to focus heavily on costs and operational efficiency when he takes over at Air India. The airline has faced financial pressure despite the Tata Group’s investments in new aircraft, technology, airport facilities and passenger services.

Reports have put Air India’s loss for the financial year ended March at around ₹22,000 crore. The airline is also dealing with higher fuel and operating costs, international route disruptions and the impact of geopolitical tensions on its network.

The incoming CEO has already started examining areas where Air India can improve. Discussions have included aircraft utilisation, cargo operations and maintenance, with a focus on reducing delays and improving the use of the airline’s fleet.

Gebremariam brings extensive aviation experience to the role. He previously led Ethiopian Airlines and was associated with its expansion into a major international carrier. His appointment comes at a crucial stage in Air India’s transformation under the Tata Group.

The airline has been investing heavily in its fleet as part of a wider turnaround plan. Air India and Air India Express have placed large aircraft orders and are expanding their domestic and international networks. The group is also working to improve passenger experience and bring its fleet and services closer to global standards.

The possible merger could help the group reduce overlapping functions while giving management greater control over its combined fleet and workforce. However, bringing two separately structured airlines together would also involve regulatory, operational and organisational challenges.

Air India Express has grown significantly since becoming the group’s dedicated low-cost carrier. It operates a large domestic network and several international routes, particularly to destinations in the Gulf and Southeast Asia.

Keeping the Air India Express identity could allow the group to serve different passenger segments even under a common corporate or operating structure. Air India would continue to target full-service travellers, while Air India Express could retain its low-cost positioning.

The proposal is therefore still at the discussion stage and could change before any formal announcement. Any restructuring would require the necessary regulatory and internal approvals.

The possible Air India Express merger highlights the new management’s focus on simplifying the Tata Group’s airline operations. As Gebremariam prepares to begin his tenure, cutting costs, improving efficiency and strengthening operational performance are emerging as key priorities.