Author: Sreelatha M

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Corporate

Sensex tumbles 600 points, Nifty slips below 23,500

The markets came under heavy selling pressure on Wednesday as rising crude oil prices, renewed geopolitical tensions and weakness in technology stocks combined to unsettle investors. The Sensex fell more than 600 points in early trade, while the Nifty 50 slipped below the crucial 23,500 mark.

The BSE Sensex opened 584 points lower at 74,993.37, down 0.77%, while the Nifty 50 declined 147 points, or 0.62%, to 23,487.85. By around 10 am, the Sensex was down about 0.83% at 74,954, while the Nifty had fallen 0.67% to 23,474.40.

The sharp fall came after another weak session on Tuesday, when the Sensex had dropped 555 points and the Nifty closed 144 points lower. The latest decline pushed the benchmark indices deeper into a period of market volatility, with investors increasingly focused on crude oil, global interest rates and developments in the Middle East.

Crude oil emerged as the biggest concern for Indian equities. Brent crude moved closer to $100 a barrel after fresh escalation in the Iran-US conflict raised fears of further disruption to global oil supplies. Brent was reported at around $99.50 a barrel, after rising for a fourth consecutive session.

For India, which relies heavily on imported crude, a sustained rise in oil prices can quickly become a broader economic concern. Higher energy costs can widen the trade deficit, put pressure on inflation and affect corporate margins. Investors are also watching the possibility of higher interest rates in the US if inflationary pressures persist.

The pressure was particularly visible in technology stocks. The Nifty IT index fell around 3%, with major names including HCL Technologies, Tech Mahindra, Infosys and Tata Consultancy Services among the prominent losers. HCL Tech declined more than 3% at the open, while Tech Mahindra and Infosys also fell sharply. TCS was down around 1.8%.

Coforge was among the biggest individual casualties. The stock fell as much as 9% after chairman Om Prakash Bhatt resigned following concerns raised by an internal audit over the company’s board evaluation process. The development added another layer of pressure to an already weak IT sector.

Not every stock was caught in the sell-off. Sun Pharma emerged among the notable gainers in the early Sensex trade, while Larsen & Toubro and Kotak Mahindra Bank also posted modest gains. The resilience in pharmaceutical and select financial stocks provided some support, although it was not enough to offset the broader selling pressure.

Biocon was another stock in focus. Its shares gained more than 3% to around ₹404 after 1.65 crore shares changed hands in a block deal worth about ₹638 crore. The transaction involved Active Pine, which was looking to sell up to 1.66 crore shares, or roughly 1% of Biocon’s equity.

Sectoral performance reflected the cautious mood. IT and IT-enabled services were the biggest laggards, while auto, banks, financial services, FMCG, media and realty stocks also remained under pressure. Metals bucked the broader trend and traded higher, while oil and gas and healthcare stocks showed relative resilience.

Foreign portfolio investors are also becoming a source of concern. According to market updates, FPIs sold around $1.6 billion of Indian equities over five of the past six trading sessions after buying nearly $6.85 billion between mid-June and late August. Rising crude prices and higher global bond yields have reduced the appeal of emerging-market assets.

Domestic institutional investors have provided some cushion, but the shift in foreign flows has added to the pressure on large-cap stocks. At the same time, the growing pipeline of IPOs and qualified institutional placements is drawing money away from the secondary market, making liquidity conditions another factor investors are watching closely.

The market is also keeping an eye on the National Stock Exchange’s proposed IPO. The NSE is reportedly considering reducing the issue size to around ₹24,000-25,000 crore from the earlier proposed ₹30,000 crore. Meanwhile, Reliance Industries is preparing to raise around ₹12,500 crore through the domestic bond market, highlighting continued corporate fundraising activity despite the unsettled equity environment.

Technically, the immediate support for the Nifty is seen around 23,500-23,450, followed by 23,300. The 23,800-23,850 zone remains an important resistance area. A sustained move above 24,000 could improve sentiment, but for now, investors are likely to remain highly sensitive to crude prices and developments in the Middle East.

With oil approaching the psychologically important $100 mark and technology stocks facing renewed selling, investors are likely to remain cautious until there is greater clarity on geopolitical tensions, crude prices and the global interest-rate outlook.

 

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Beyond

Trump predicts US gas prices could fall below $2

US President Donald Trump has predicted a dramatic fall in American gasoline prices, saying fuel could eventually become cheaper than $2 a gallon after what he described as a US victory in the war with Iran.

Trump made the claim as the Iran conflict continued to create uncertainty across global energy markets. He said oil prices would drop “precipitously” once the war was over and suggested that gasoline prices could first fall towards $3 a gallon before eventually slipping below the $2 mark.

The forecast is striking because US consumers are currently paying considerably more at the pump. Average gasoline prices have risen above $4 a gallon, meaning prices would have to fall by more than half for motorists to reach the level Trump has predicted.

The president has repeatedly connected the conflict with Iran to energy prices, arguing that a successful US campaign would eventually remove the supply risks that have pushed crude oil higher. He has also maintained that Iran must not be allowed to develop a nuclear weapon.

Trump’s comments come at a particularly sensitive time for the global oil market. Brent crude has been trading close to $100 a barrel, while US West Texas Intermediate crude has remained above $90. Traders have been closely watching developments in the Middle East because any disruption to oil production or transportation could have consequences far beyond the region.

One of the biggest concerns is the Strait of Hormuz, the narrow waterway between Iran and Oman through which a substantial share of the world’s oil supply passes. Any prolonged disruption to shipping through the strait could tighten global supplies and push crude prices higher.

Iran has warned that attacks on its energy infrastructure could trigger retaliation against US interests and energy facilities in the region. The threats have added to concerns about oil tankers, production facilities and shipping routes becoming targets as the conflict escalates.

The US has also stepped up pressure on Iran’s oil trade. American officials have threatened action against vessels involved in transporting Iranian crude, increasing the risks for companies and countries involved in the region’s energy trade.

For oil traders, the biggest question is whether the conflict will ultimately reduce or increase supply risks. A settlement could have the opposite effect of an escalation. If fighting stops and shipping routes become safer, some of the geopolitical premium built into crude prices could disappear.

That could bring oil prices down and eventually provide relief to consumers. But reaching $2-a-gallon gasoline would require a much larger and more sustained decline.

Crude oil is only one part of the price motorists pay at petrol stations. Refining costs, transportation, taxes and regional market conditions also influence gasoline prices. As a result, even a sharp decline in crude prices does not automatically translate into an equivalent fall in retail fuel prices.

The current gap between Trump’s prediction and actual prices therefore remains substantial.

Still, cheaper energy has been a recurring theme in Trump’s economic messaging. Lower gasoline prices would directly reduce household expenses for American drivers and could also lower transportation and production costs for businesses. A sustained decline in energy prices could, in turn, help ease inflationary pressures.

The impact would extend beyond the United States. Global crude prices influence the cost of fuel, transportation and several industrial commodities in oil-importing economies such as India. A prolonged fall in international oil prices could reduce India’s crude import bill and provide some relief to inflation, while a sharp increase would have the opposite effect.

China and other major economies would also be affected because of their large energy requirements. Global demand is another important factor that will determine where crude prices head once the immediate geopolitical uncertainty fades.

The oil market has already shown that prices do not always move in a straight line during geopolitical crises. Supply concerns can push prices higher, but expectations of weaker demand, alternative supply routes and production from countries outside the Middle East can limit those gains.

That makes the timing of Trump’s forecast important. His below-$2 gasoline prediction depends on the Iran conflict ending in a way that allows oil supplies and shipping to normalise. It would also require sufficient global production and relatively subdued demand.

If the conflict instead expands to involve more oil facilities, tankers or critical shipping routes, crude prices could move sharply in the opposite direction. In that scenario, the prospect of gasoline below $2 would move even further away.

Trump’s statement is best viewed as a political and economic forecast rather than an indication of an imminent collapse in fuel prices. The US president is presenting cheaper gasoline as a potential benefit of ending the Iran conflict, but the energy market remains highly sensitive to events on the ground.

 

Categories
Technology

India joins global 6G security initiative

India has joined the United States and 24 other countries in a global initiative aimed at shaping the development of next-generation 6G networks, marking another step in New Delhi’s efforts to have a stronger voice in emerging telecommunications technologies.

The initiative focuses on making future 6G networks more secure, resilient and interoperable while encouraging competition and innovation. India’s participation brings its growing ambitions in advanced telecommunications into a wider international framework, at a time when countries are beginning to work on the standards and technologies that will eventually underpin 6G.

The US Department of Commerce announced India’s inclusion following discussions between US Commerce Secretary Howard Lutnick and India’s Minister of State for Commerce and Industry Jitin Prasada on the sidelines of the G20 Innovation Ministerial meeting in Chapel Hill, North Carolina.

The meeting was held on September 1 and 2 and was hosted by the US Department of Commerce and the White House Office of Science and Technology Policy. Prasada led the Indian delegation at the gathering.

India has joined what is formally known as the Call to Action for 6G Leadership and Security, a policy framework launched by the US National Telecommunications and Information Administration in July. With India’s addition, the group now represents 26 governments.

The original group included countries such as the US, United Kingdom, Japan, South Korea, Australia, Canada, France, Germany, Finland and Sweden.

The initiative comes at an early stage in the global 6G race. Unlike an agreement involving a specific telecom project or investment, the framework is primarily focused on policy coordination and international cooperation. It does not currently include a dedicated funding commitment, spectrum allocation or a country-specific 6G deployment schedule.

Instead, participating countries are expected to work together on issues that could determine how future wireless networks are designed and operated.

Network security is one of the central areas. The framework also covers interoperability, resilience and the use of trusted artificial intelligence in the development and operation of 6G infrastructure. These issues are becoming increasingly important as telecom networks evolve into critical infrastructure supporting everything from digital payments and autonomous systems to healthcare, manufacturing and public services.

For India, the move is significant because the country is already working on its own 6G roadmap. The Bharat 6G Mission and Bharat 6G Alliance are intended to help India move beyond being a large consumer of telecom technology and become a contributor to global intellectual property, products and affordable communications solutions.

India has set an ambition to deploy 6G technologies domestically by 2030. Technical specifications for the technology are expected to take shape over the coming years, making participation in international discussions particularly important.

The opportunity extends beyond telecom networks. During the G20 Innovation Ministerial, India and the US also discussed cooperation in areas including artificial intelligence, semiconductors and data centres. Prasada also encouraged greater US investment under India’s semiconductor push and discussed strengthening the AI technology partnership between the two countries.

These discussions reflect the broader shift in global technology policy, where telecom infrastructure is increasingly linked with artificial intelligence, semiconductor manufacturing, cloud computing and digital infrastructure.

The G20 Innovation Ministerial concluded with a statement highlighting the potential of emerging technologies to improve productivity, create economic opportunities and support growth. India reaffirmed its interest in building strategic partnerships across AI, semiconductors, digital public infrastructure, robotics and other emerging technologies.

The 6G initiative also gives India an opportunity to participate more closely in conversations around international technology standards. Global standards will play a major role in determining how devices, networks and systems communicate with one another when 6G becomes commercially available.

For Indian technology companies and telecom equipment manufacturers, a stronger role in standards-setting could eventually create opportunities in global markets. It could also support domestic research and development and encourage investment in advanced communications technologies.

The government’s approach reflects a broader ambition to build an ecosystem around emerging technologies rather than simply importing finished systems. This includes developing intellectual property, supporting research institutions and startups, strengthening semiconductor capabilities and expanding domestic telecom manufacturing.

India’s entry into the US-led 6G initiative therefore carries significance beyond the technology itself. It places the country within a group of governments seeking to influence how the next generation of digital connectivity is developed, secured and deployed.

While 6G is still several years away from widespread commercial use, decisions being made today around standards, security, supply chains and interoperability could shape the technology for decades.

For India, being part of these discussions early could help ensure that its interests are considered as the global 6G ecosystem takes shape. It also fits into the country’s larger push to become a technology developer and supplier, rather than remaining primarily a technology market.

The immediate focus will now be on continued international cooperation and technical discussions. As 6G standards gradually develop, India’s participation could determine how effectively it translates its domestic Bharat 6G ambitions into a meaningful role in the global telecommunications industry.

 

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Beyond

Rupee falls to 94.66 as oil prices surge

Rupee slipped further against the US dollar on Tuesday, as a sharp rise in crude oil prices and growing tensions in West Asia added pressure to the currency. The rupee weakened by 10 paise to Rs 94.66 against the dollar in early trade, with investors keeping a close watch on developments in the Middle East.

 

The fall came as Brent crude moved closer to $98 a barrel, raising fresh concerns for oil-importing economies such as India. The combination of expensive crude, stronger demand for dollars from importers and geopolitical uncertainty has made it difficult for the rupee to find firm ground.

 

India imports a large share of its crude oil needs, making the currency particularly sensitive to movements in global oil prices. When crude becomes more expensive, Indian importers need to spend more dollars to pay for their purchases. That increases demand for the US currency and puts additional pressure on the rupee.

 

The impact goes beyond the foreign exchange market. A sustained rise in crude prices could increase India’s import bill and trade deficit, while also pushing up costs for businesses that rely on fuel and petroleum-based products. If the pressure persists, it could also complicate the inflation outlook.

 

The latest weakness in the rupee comes against the backdrop of rising tensions in West Asia. Concerns about the possibility of a wider conflict have increased fears of disruptions to global energy supplies. The Strait of Hormuz, a key route for oil shipments, remains a major point of concern for markets.

 

Any significant disruption to oil flows through the region could send crude prices sharply higher. For India, that would mean a larger energy import bill and potentially greater pressure on the rupee.

 

The Reserve Bank of India (RBI) has been closely monitoring the currency market and is expected to intervene when necessary to prevent excessive volatility. State-run banks were seen selling dollars as the rupee approached the Rs 94.70 level, helping limit a sharper fall.

 

The central bank’s intervention has provided some stability to the currency. Rather than targeting a particular exchange rate, the RBI typically seeks to prevent sudden and disorderly movements that could unsettle businesses and financial markets.

 

However, continued pressure from crude oil could make that task more challenging. If oil prices remain close to $100 a barrel, demand for dollars from oil companies and other importers could remain elevated.

 

The dollar itself was relatively subdued against several major global currencies, suggesting that the rupee’s weakness was largely driven by domestic pressures rather than a broad surge in the US currency.

 

Importers are already responding to the uncertainty by closely managing their foreign exchange exposure. Oil marketing companies, in particular, remain sensitive to both crude prices and currency movements because their costs are directly linked to international energy markets.

 

Foreign investment flows are another factor influencing the rupee. Global investors have become more cautious as geopolitical risks have increased. Any sustained selling by foreign investors from Indian equities and debt markets could reduce dollar inflows and add to pressure on the domestic currency.

 

At the same time, India’s healthy foreign exchange reserves give the RBI room to manage periods of heightened volatility. The central bank’s intervention can help smooth sharp movements, although the longer oil prices stay elevated, the greater the underlying pressure on the currency.

 

The rupee’s movement also has different implications for Indian companies. Exporters can benefit from a weaker currency because overseas earnings translate into more rupees. Import-heavy businesses, however, face higher costs when the rupee depreciates.

 

Sectors such as aviation, chemicals, paints, electronics and manufacturing could feel the impact if higher crude prices and a weaker rupee persist. Companies may have to absorb part of the additional cost or pass it on to consumers, depending on their pricing power.

 

For consumers, the impact may take time to become visible but could eventually show up in the prices of fuel-linked products, transport and imported goods.

 

The Rs 95-per-dollar level is now an important psychological threshold for the currency market. A move towards that level would likely keep traders focused on the RBI’s response as well as the direction of crude oil.

 

The near-term outlook for the rupee will largely depend on three factors, crude prices, developments in West Asia and RBI intervention. Any easing of tensions could bring oil prices down and provide some relief to the currency. A further escalation, however, could push crude towards $100 and increase pressure on the rupee.

 

As of now, businesses and investors are likely to remain cautious. The currency may continue to move in a narrow but volatile range as markets assess oil prices, dollar demand, foreign fund flows and geopolitical developments.

 

The rupee’s latest decline is therefore more than just a currency-market movement. It reflects the wider economic impact of a global oil shock, with India’s import dependence making the domestic economy particularly sensitive to what happens in the world’s major energy-producing region.

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Beyond

Gold slips to ₹1.52 lakh, silver at ₹2.36 lakh

Gold and silver prices eased in India on Monday, September 7, as precious metals came under pressure from stronger expectations of a US interest-rate hike. Investors are also keeping a close watch on geopolitical tensions and upcoming US inflation data, which could influence the Federal Reserve’s policy decision later this month.

In the domestic retail market, 24-carat gold in Delhi was priced at around Rs 1,52,370 per 10 grams, while 22-carat gold stood at Rs 1,39,673 per 10 grams. In Mumbai, 24-carat gold was available at around Rs 1,52,640 per 10 grams, while 22-carat gold was priced at Rs 1,39,920.

Kolkata recorded a 24-carat gold price of about Rs 1,52,420 per 10 grams, while 22-carat gold was around Rs 1,39,718.

The latest movement comes after a volatile week for the precious metals market. Gold prices have been supported for much of the year by demand for safe-haven assets, but the latest US economic data has shifted attention towards interest rates.

Internationally, spot gold was trading around $4,405 per ounce, down about 0.5 per cent in early trade. Gold futures also moved lower. The decline followed stronger-than-expected US employment data, which increased expectations that the Federal Reserve could raise interest rates this month.

The US economy added significantly more jobs than markets had expected in August, while unemployment remained at 4.1 per cent. The data prompted traders to increase their bets on a September rate hike.

For gold investors, interest rates matter because the metal does not generate interest income. When bond yields rise, gold can become relatively less attractive compared with interest-bearing assets. This has added some pressure to gold prices today, despite continued demand for the metal as a hedge against economic and geopolitical uncertainty.

Silver also moved lower in the domestic market but remained at elevated levels.

According to the latest retail rates, 999-purity silver in Delhi was priced at around Rs 2,36,000 per kg, while Mumbai recorded a rate of approximately Rs 2,36,410 per kg. In Kolkata, silver was priced at around Rs 2,35,830 per kg.

In Maharashtra, the silver rate was around Rs 2,65,900 per kg on September 7, down Rs 100 from Rs 2,66,000 per kg on the previous day. The state has nevertheless seen silver prices remain relatively strong through the opening week of September.

Silver prices are influenced by both investment demand and industrial consumption. The metal is widely used in electronics, solar panels and several other industrial applications, making its price sensitive to expectations about global economic activity.

International silver prices were trading around $66.81 per ounce, with the metal also facing pressure from the changing outlook for US monetary policy.

Gold prices continued to vary slightly between major Indian cities.

In Bengaluru, 24-carat gold was priced at around Rs 1,52,760 per 10 grams, while 22-carat gold stood at about Rs 1,40,030.

In Hyderabad, 24-carat gold was around Rs 1,52,860 per 10 grams, with 22-carat gold at approximately Rs 1,40,122.

Chennai recorded the highest 24-carat gold rate among the major cities listed, at around Rs 1,53,060 per 10 grams, while 22-carat gold was priced at approximately Rs 1,40,305.

These are indicative retail bullion rates and can vary between jewellers depending on local taxes, making charges, premiums and other costs. The final price paid by a jewellery buyer can therefore be higher than the quoted market rate.

Apart from US interest-rate expectations, the global gold market is also responding to geopolitical developments. Continued uncertainty surrounding the US-Iran conflict has kept investors interested in safe-haven assets, although expectations of tighter monetary policy are currently limiting gold’s gains.

The focus will now shift to key US inflation readings due later this week. The US Consumer Price Index and Producer Price Index could provide fresh clues about the Federal Reserve’s next move.

A softer inflation reading could reduce expectations of aggressive monetary tightening and potentially support gold prices. On the other hand, persistent inflation could strengthen the case for higher interest rates, keeping pressure on the yellow metal.

In India, currency movements will also remain important. A stronger rupee can reduce the cost of imported gold, while a weaker rupee tends to make the metal more expensive in the domestic market.

The latest gold rate today remains well above historical levels, making timing an important consideration. Investors, meanwhile, are likely to continue tracking global interest rates, the dollar, geopolitical tensions and central-bank buying before making fresh decisions.

Both gold and silver remain closely watched commodities. While gold prices have softened slightly, silver continues to trade at elevated levels, leaving investors and consumers alert to every major move in global markets.

 

Categories
Corporate

SUGAR Cosmetics faces sharp valuation reset

SUGAR Cosmetics is getting fresh money, but investors are putting a much lower price on the beauty brand than before.

The Mumbai-based direct-to-consumer (D2C) cosmetics company has raised about ₹145 crore from existing investor A91 Partners. The deal values SUGAR at around ₹550-600 crore, marking a roughly 75-80% fall from the ₹2,600-2,700 crore valuation it commanded in November 2024.

The sharp valuation cut comes at a difficult time for the company. SUGAR’s operating revenue fell nearly 20% to ₹404.4 crore in FY25, from ₹505.1 crore a year earlier. Its net loss almost doubled to ₹135 crore, while EBITDA losses more than doubled to ₹116 crore.

In other words, the company is raising money at a time when both its growth and profitability are under pressure.

The latest investment was formally recorded through the issue of around 1.12 lakh Series D7 compulsorily convertible preference shares to A91 Emerging Fund III, an entity linked to A91 Partners. The shares were issued at ₹12,871 each, taking the total fundraise to ₹144.47 crore.

For SUGAR, the funding offers some breathing room. The company has said the money will help create additional working capital, particularly to support the growth of its skincare brand Quench Botanics.

But the bigger story is the valuation.

SUGAR was once one of the more closely watched names in India’s fast-growing beauty and personal care market. Its valuation reached about ₹3,000 crore at its peak in 2022. The latest round puts the company at only a fraction of that level.

The reset reflects a broader change in how investors are looking at consumer startups.

A few years ago, D2C brands could attract large amounts of venture capital by showing fast customer growth, strong social media presence and plans for rapid expansion. Today, investors are looking more closely at revenue, margins, cash burn and whether a company can build a sustainable business.

SUGAR’s numbers show why that shift matters.

The company expanded aggressively into offline retail, adding physical stores alongside its online business. While the strategy helped put its products in front of more consumers, it also brought higher costs.

According to reports, SUGAR had to shut a significant share of stores opened during its expansion because some outlets were making losses. The pressure from offline operations has therefore become an important part of the company’s financial story.

That does not mean physical retail has lost its importance. Beauty remains a category where consumers often want to see, test and compare products before buying them. The challenge is making those stores profitable rather than simply using them to increase the brand’s footprint.

SUGAR operates through an omnichannel model, selling beauty and personal care products through its own website, ecommerce platforms and physical retail. Its portfolio includes SUGAR, POP, ENN and Quench Botanics.

The company was founded by Vineeta Singh and Kaushik Mukherjee and has raised more than $90 million from investors including A91 Partners, Elevation Capital, Anicut Capital and IndiaQuotient.

A91’s decision to put more money into the company is significant because it is already an existing investor. The latest round allows the investor to increase its exposure while giving SUGAR capital to work on its next phase of growth.

The funding also comes as competition in India’s beauty market continues to intensify.

SUGAR is competing with established companies and newer digital-first brands across makeup, skincare and personal care. Consumers now have access to a much wider range of Indian and international beauty products, while ecommerce and quick-commerce platforms have made shopping faster and more competitive.

For beauty startups, this creates a difficult balance. They need to spend on product launches, advertising and customer acquisition, but excessive spending can make it harder to reach profitability.

SUGAR’s latest financial performance shows the cost of that challenge.

Its operating revenue dropped from ₹505.1 crore in FY24 to ₹404.4 crore in FY25. At the same time, the company’s net loss rose from ₹68.4 crore to ₹135 crore. EBITDA losses increased from ₹48.5 crore to ₹116 crore.

The company has yet to report its FY26 financial results, although an Economic Times report estimates its FY26 revenue could have fallen further to around ₹300-350 crore. That figure is an estimate and has not yet been confirmed through reported financial statements.

This makes the latest ₹145-crore fundraise particularly important.

The new capital can help SUGAR strengthen its working capital position and focus on categories where it sees better growth opportunities. But the company will also need to show that additional funding can translate into stronger sales and, eventually, lower losses.

The valuation cut is a clear signal that investors are no longer willing to pay the same premium for growth alone.

For SUGAR, the next phase will be less about opening more stores or chasing scale at any cost. The bigger task will be to make its existing business more efficient, strengthen its brands and find a path towards sustainable profitability.

The Indian beauty and personal care market remains attractive, and D2C brands continue to have room to grow. But SUGAR’s latest funding round shows that the rules have changed.

Fresh capital is still available. What has become harder is getting it at the valuation startups once expected.

This ₹145-crore investment provides another opportunity to turn the business around. Whether that money can restore growth and rebuild investor confidence will determine what comes next for the once high-valued beauty startup.

 

Categories
Corporate

Reliance enters ice cream market with Bombay Creamery

Reliance Consumer Products Limited (RCPL), the fast-moving consumer goods (FMCG) arm of Reliance Industries, has entered India’s competitive ice cream market with the launch of its new brand, Bombay Creamery. The company is taking a familiar approach — affordable pricing, a wide product range and Reliance’s extensive distribution network, as it looks to build a strong presence in another consumer category.

Bombay Creamery products will be available at prices starting from just ₹10. The range includes cones, cups, tubs, bars and sticks, giving consumers options across different price points and formats. The products are made with real dairy cream, according to the company.

The brand will initially be rolled out across western India before being expanded to other parts of the country. Reliance has indicated that a nationwide rollout is planned, making the launch more than a regional experiment.

The entry puts Reliance directly against established ice cream brands such as Amul, Mother Dairy, Kwality Wall’s, Vadilal, Arun and Havmor. These companies have built strong consumer recognition over several decades, particularly through extensive networks of distributors, retailers and freezer points.

Reliance, however, is entering the segment with a significant advantage of its own: scale.

The company already has a large presence across India through its retail and consumer businesses. Its ability to distribute products through different retail channels could help Bombay Creamery reach consumers quickly, particularly in smaller cities and towns where affordable packaged ice cream has considerable potential.

The ₹10 starting price is likely to be one of the biggest talking points around the launch. Reliance has previously used aggressive pricing to enter competitive consumer markets, most notably through its telecom business and, more recently, its push in beverages with Campa. The strategy has generally focused on making products accessible to a large customer base while using distribution scale to build market share.

The same playbook is now being brought to ice cream.

The company is positioning Bombay Creamery as an “accessible premium” dairy brand. The idea is to combine affordability with a product proposition centred on real dairy cream. This gives Reliance an opportunity to target consumers who want branded ice cream but remain sensitive to price.

India’s ice cream market has expanded considerably in recent years, supported by rising disposable incomes, changing food habits, urbanisation and the growth of modern retail and quick-commerce platforms. Ice cream is no longer limited to summer consumption, with brands increasingly promoting it as an everyday dessert and snack.

That makes the segment attractive for a large FMCG company looking to increase its share of consumer spending.

Reliance Consumer Products has been steadily expanding beyond its traditional businesses into everyday consumer goods. Its portfolio includes products across beverages, packaged foods and other FMCG categories. The company has been building brands that can use Reliance’s retail reach to compete with established players.

Bombay Creamery adds another category to that expanding portfolio.

The company’s choice of multiple formats could also help it address different consumption occasions. Small cups and sticks can target impulse purchases, while cones can appeal to individual consumers looking for a more indulgent product. Larger tubs, meanwhile, can be positioned for families and home consumption.

The ₹10 price point could be particularly important for impulse consumption. At that level, consumers may be more willing to try a new brand without spending much. If the product gains acceptance on taste and quality, Reliance could then have an opportunity to convert first-time buyers into regular customers.

Industry observers expect the company’s entry to increase competitive pressure in the sector. Existing ice cream makers could face a stronger challenge as Reliance expands distribution and potentially uses its financial strength to support marketing and promotional campaigns.

The market reaction has already reflected some of these concerns. Shares of companies exposed to the ice cream business came under pressure after Reliance announced its entry, with investors assessing the potential impact of increased competition.

However, pricing alone will not determine whether Bombay Creamery succeeds. Ice cream is a category where taste, texture, product quality, availability and brand familiarity play a major role. Reliance will need to convince consumers that its products can compete with brands they already know and buy regularly.

Cold-chain distribution will also be important. Unlike many shelf-stable FMCG products, ice cream requires continuous temperature-controlled storage and transportation. Ensuring that products remain frozen from manufacturing facilities to retail freezers can be a significant operational challenge, especially during a nationwide expansion.

Reliance’s existing retail infrastructure could nevertheless give it an advantage in managing this distribution challenge. The company can potentially use its relationships with retailers and its own stores to establish freezer presence and improve product visibility.

The timing of the launch also gives the company an opportunity to build momentum before the next major summer season. A wider rollout would allow Bombay Creamery to establish distribution and consumer awareness ahead of the period when ice cream demand typically rises sharply.

For consumers, Reliance’s entry could mean more choice and potentially greater price competition. Established brands may respond with promotions, new products or sharper pricing as the new competitor expands.

For Reliance, the ice cream launch fits into a larger strategy of becoming a significant player in India’s FMCG market. The company is seeking to build brands that can reach millions of consumers through a combination of competitive pricing, strong distribution and retail presence.

Bombay Creamery is therefore not just another product launch. It represents Reliance’s attempt to establish itself in another high-volume consumer category where brand loyalty is strong but price remains an important factor.

The company will first focus on western India before taking the brand nationwide. If the ₹10 entry price succeeds in attracting customers and the company can maintain product quality and distribution, Bombay Creamery could quickly become a serious new competitor in India’s ice cream market.

The bigger test, however, will come when Reliance moves beyond its initial markets. That is when the company’s pricing strategy, distribution strength and ability to build consumer trust will face their biggest test against India’s established ice cream brands.

 

Categories
Beyond

GST collections near ₹2 lakh cr in August

India’s gross Goods and Services Tax (GST) collections rose 14.8 per cent year-on-year to ₹1,99,853 crore in August, coming close to the ₹2 lakh crore mark and signalling continued strength in economic activity. The latest GST revenue data showed that tax collections have now grown at a double-digit pace for the third consecutive month.

The August GST collection was higher than the ₹1,74,116 crore collected during the same month last year. The increase comes at a time when the Indian economy is facing pressure from global uncertainties, tariff-related concerns and geopolitical tensions. Despite these challenges, the latest numbers point to steady domestic activity and stronger tax compliance.

A closer look at the GST data shows that both domestic transactions and imports contributed to the increase, although import-related revenue recorded a much sharper rise.

GST revenue from domestic transactions, including imports of services, increased 9.3 per cent in August to more than ₹1.37 lakh crore. Revenue collected from imports, meanwhile, jumped 29 per cent to ₹62,604 crore. The sharp increase in import-related GST collections was a major factor behind the overall growth.

The government’s gross Central GST collection stood at ₹38,413 crore, while State GST collections amounted to ₹46,316 crore. Integrated GST collections were above ₹1.15 lakh crore during the month.

However, the gross GST figure does not represent the final tax revenue available to the government because refunds have to be taken into account. GST refunds increased substantially during August, rising 68 per cent year-on-year to ₹31,795 crore.

After adjusting for refunds, net GST revenue stood at about ₹1.68 lakh crore, marking an 8.3 per cent increase from the year-ago period. The difference between gross and net collections highlights the importance of looking beyond the headline GST number when assessing government revenue trends.

The August numbers also extend a recent run of strong GST growth. Collections had increased 13.9 per cent in June and 15.4 per cent in July, before rising 14.8 per cent in August. This means GST revenue has maintained double-digit growth for three months in a row.

The sustained increase in GST collections  for policymakers is an important indicator of economic activity. GST is closely linked to consumption, production and business transactions, making monthly collections one of the key indicators watched by economists and the government.

The latest figures suggest that domestic demand remains relatively resilient. While domestic GST collections grew at a slower pace than import-linked revenue, the 9.3 per cent increase still indicates continued activity across businesses and consumers.

The stronger import GST growth could also reflect higher import values and increased movement of goods through the economy. However, GST collections should not be treated as a direct measure of economic growth alone, as changes in tax compliance, rates, refunds and the composition of transactions can also affect the numbers.

The August data comes soon after other economic indicators pointed to continued momentum. Recent figures on automobile sales and digital payments have also shown strong activity, adding to the broader picture of resilience in the Indian economy. GST collections, in particular, offer a monthly view of how businesses and consumers are performing across different parts of the economy.

The performance also provides some comfort as India navigates an uncertain global environment. International trade disruptions, tariff pressures and tensions in West Asia have raised concerns about their possible impact on growth, inflation and business sentiment. Yet, the latest tax numbers indicate that economic activity within India has remained firm.

For businesses, higher GST collections can also indicate improved compliance as more transactions enter the formal tax system. The expansion of digital invoicing, e-way bills and technology-led tax administration has made it increasingly difficult for transactions to remain outside the formal GST network.

At the same time, the jump in refunds means the government’s gross collection figure needs to be interpreted carefully. The ₹1,99,853 crore gross collection is a strong headline number, but the ₹1.68 lakh crore net collection after refunds gives a clearer picture of the revenue retained during the month.

The sustained growth in GST revenue will be closely watched in the coming months as the government assesses the strength of consumption and business activity. If the trend continues, it could provide additional support to government finances while reinforcing expectations that domestic demand will remain an important driver of India’s economic growth.

 

Categories
Corporate

GRT Jewellers to take control of TBZ in ₹1,034 cr deal

GRT Jewellers is set to acquire a controlling stake in Tribhovandas Bhimji Zaveri (TBZ), one of India’s oldest jewellery brands, in a deal worth up to ₹1,033.71 crore.

GRT Jewellers India Private Limited has signed an agreement to acquire a 74.12% stake in TBZ from its promoters. The deal will give GRT control of the listed jewellery company and significantly expand its presence across the Indian market.

The transaction is subject to regulatory approvals and other conditions. Once the acquisition is completed, GRT will also be required to make an open offer to TBZ’s public shareholders under takeover regulations.

Under the agreement, GRT will acquire nearly 4.95 crore shares of TBZ, representing 74.12% of the company’s voting share capital. The promoter shares will be purchased at a price of up to ₹209 per share. The total consideration for the promoter stake has been capped at ₹1,033.71 crore.

The open offer will cover up to 25.88% of TBZ’s voting share capital, or around 1.73 crore shares. GRT has set the open-offer price at ₹249.61 per share. If the entire offer is accepted, the additional amount could be around ₹431 crore.

The acquisition gives GRT access to a well-known jewellery brand with a long history and an established network of stores. TBZ was founded in 1864 and has built a strong identity over more than 160 years in the Indian jewellery business.

TBZ began its journey in Mumbai’s Zaveri Bazaar and gradually expanded to other parts of the country. Its long association with the jewellery trade has helped it build a recognised brand and a loyal customer base.

GRT Jewellers also has a strong presence in the organised jewellery market. Founded in 1964, the company has grown significantly over the years, particularly in southern India. It sells gold, diamonds, silver and platinum jewellery through its retail network and other channels.

GRT currently operates 68 stores in India and one store in Singapore. TBZ has 37 stores across the country. The acquisition will therefore give GRT a much larger retail network and help it reach customers in new markets.

The deal is especially important because GRT has traditionally been stronger in southern India, while TBZ has an established presence in western and other parts of the country. Bringing the two networks together could help GRT build a stronger pan-India jewellery business.

For GRT, buying an established company also offers a quicker path to expansion. Opening dozens of new stores organically would take considerable time and investment. Through TBZ, GRT gets an existing network, employees, customers and brand recognition.

The acquisition comes at a time when India’s jewellery industry is becoming increasingly organised. Large jewellery chains are expanding rapidly, while consumers are looking for brands they can trust when making high-value purchases.

Gold prices have also remained a major factor for the industry. With jewellery becoming more expensive, customers are paying greater attention to quality, pricing, reputation and after-sales service. Established brands with a strong retail presence are therefore competing to build long-term customer relationships.

The proposed takeover has also attracted strong interest from investors. TBZ shares rose sharply after details of the transaction became known. The stock climbed nearly 20% on September 1 and touched ₹366.80 during trading, reaching a new high.

The market price was significantly above both the ₹209 per share price for the promoter stake and the ₹249.61 open-offer price. The sharp movement in the stock shows that investors are closely watching what the change in ownership could mean for TBZ’s future growth.

The acquisition could also provide TBZ with access to GRT’s experience in running a large jewellery retail network. GRT, in turn, could use TBZ’s established brand and presence in different markets to strengthen its national operations.

The combined business would bring together two jewellery companies with different strengths. GRT brings scale and strong experience in southern India, while TBZ contributes its heritage, established stores and customer relationships across several markets.

India’s jewellery retail sector has been witnessing growing competition as organised chains expand beyond their traditional markets. The GRT-TBZ deal is another sign of this changing landscape, where established jewellery businesses are looking at acquisitions to grow faster.

This acquisition for GRT is a significant step towards becoming a larger national jewellery player. For TBZ, it marks the beginning of a new chapter for a brand that has been part of India’s jewellery industry for more than 160 years.

If the transaction receives the required approvals and is completed as planned, the deal could create a significantly larger jewellery retail network and give GRT a stronger position in India’s fast-growing organised jewellery market.

 

Categories
Beyond

Rupee slips to 95.56 as oil, dollar rise

Indian rupee opened weaker against the US dollar on Monday, slipping 13 paise to 95.56 as a sharp rise in crude oil prices and renewed geopolitical tensions increased pressure on the currency.

The rupee had ended at 95.43 against the dollar on Friday, gaining two paise. Monday’s opening marked a reversal as investors moved towards the US dollar amid growing expectations that the US Federal Reserve could raise interest rates in September.

The dollar index was around 99.62 in early trade, while several other risk-sensitive assets weakened. A stronger dollar typically puts pressure on emerging-market currencies such as the rupee by making dollar-denominated assets more attractive to global investors.

Crude oil emerged as another major concern for the Indian currency. Brent crude climbed above $90 a barrel after renewed military tensions between the United States and Iran raised concerns over energy supplies and shipping routes in the region. The rise is particularly important for India because the country depends heavily on imported crude oil.

Higher oil prices increase the country’s import bill and raise demand for dollars from oil companies and other importers. If the rise in crude prices continues, it can therefore create additional pressure on the rupee and complicate India’s inflation outlook.

The latest weakness also came as financial markets reassessed the Federal Reserve’s interest-rate outlook. Comments from Fed Chair Kevin Warsh have strengthened expectations of a possible rate increase in September, with market pricing putting the probability of a hike at around 57 per cent. Higher US interest rates can encourage investors to move funds towards US assets, supporting the dollar at the expense of emerging-market currencies.

The changing Fed outlook has also pushed US Treasury yields higher. This has made the dollar more attractive at a time when investors are already seeking safety because of heightened geopolitical uncertainty.

For the rupee, the combination of expensive crude, a firmer US dollar and expectations of tighter US monetary policy has created a challenging environment. The currency has nevertheless remained relatively range-bound in recent sessions, partly because of intervention by the Reserve Bank of India.

The RBI has been active in the foreign exchange market to limit excessive volatility. State-run banks were seen selling dollars on Monday, which traders viewed as likely intervention on behalf of the central bank. The RBI has also used short-term dollar-rupee swaps to manage liquidity conditions.

Market participants are closely watching the 95.70-95.80 zone for the rupee. The currency briefly touched 95.60 during early trading before recovering some ground, with the RBI’s presence helping to prevent a sharper fall.

The rupee had gained about 0.2 per cent last week despite remaining under pressure from oil prices and dollar demand. Importers have continued to hedge their dollar requirements, adding to demand for the US currency. The RBI’s interventions have helped contain the impact of these pressures and kept the rupee’s movements relatively orderly.

The currency market is also watching the Indian government bond market for signs of broader financial pressure. The 10-year benchmark government bond yield rose to 6.9108 per cent, its highest level in about two months. Higher yields reflect concerns over inflation and the possibility that stronger economic conditions or persistent price pressures could eventually require tighter monetary policy.

The immediate risk for India is a prolonged rise in crude oil prices. Energy is a major component of the country’s import bill, and a sustained increase in oil prices can affect the trade deficit, inflation and corporate costs. It can also influence monetary policy expectations and investor sentiment.

Brent crude oil prices climbed above $90 a barrel on Monday, with Brent futures rising about 2.6% to around $90.30 per barrel. The sharp increase followed renewed tensions involving the US and Iran, raising concerns about possible disruptions to oil supplies and shipping routes in the Middle East. For India, which relies heavily on imported crude oil, a sustained rise in Brent prices could increase the import bill, widen pressure on the current account and weigh further on the rupee.

At the same time, traders are awaiting fresh US economic data that could determine the Federal Reserve’s next policy move. Inflation and employment figures will be particularly important. Softer data could reduce expectations of a September rate hike and ease some pressure on emerging-market currencies. Stronger-than-expected figures could have the opposite effect by reinforcing the case for tighter US monetary policy.

The direction of the rupee in India will therefore depend on several factors rather than a single trigger. Crude oil prices, Federal Reserve policy expectations, US Treasury yields, foreign capital flows, importer demand and RBI intervention will all remain important.

The rupee’s fall to 95.56 on Monday is a reminder of how quickly external shocks can influence India’s currency market. With oil prices elevated and the dollar gaining strength, traders are likely to remain cautious. The RBI’s intervention may help smooth the movement, but a sustained increase in crude prices or a stronger-than-expected shift in US monetary policy could keep the rupee under pressure in the days ahead.