Category: Corporate

Infosys, a leading IT services provider, is set to issue salary increment letters by the end of February, with hikes ranging from 5% to 8%. These increments will take effect in April 2025.

The company has also commenced issuing promotion letters in batches since December, indicating a strategic response to an anticipated increase in technology budgets for the coming fiscal year. 

This decision comes as the demand environment picks up, with Infosys positioning itself to capitalise on the expected rise in IT spending, Moneycontrol reported.

"Broadly, the comp (annual salary increment) that we are expecting is 6-8% in India, and the overseas comps will be in line with the earlier comp reviews," Infosys’ Chief Financial Officer Jayesh Sanghrajka said while addressing the press after the Q3FY25 results.

In a contrasting development, Infosys has faced backlash after laying off nearly 700 freshers from its Mysuru campus.

These employees, who had only been with the company for a few months since their onboarding in September 2024, were reportedly dismissed in what has been described as "a shocking and unethical move" by Harpreet Singh Saluja, the president of the IT employees' union NITES. 

The union alleged that "bouncers and security personnel" were deployed during the termination process, which has drawn significant criticism. The layoffs have sparked widespread outrage on social media, with users expressing sympathy and anger over the sudden job losses. 

One user described the situation as "truly heartbreaking," highlighting that many freshers had waited over two years after graduation to join Infosys, only to be laid off after six months. Another post referred to the scene as "the most devastating photo in recent times," underscoring the emotional impact on the affected individuals who had trusted one of India's largest IT firms for their career beginnings. 

Delays in onboarding processes have become a notable issue across the Indian IT sector, with several companies struggling to align hiring with fluctuating market demands. This has resulted in protracted waits for new hires, exacerbating the uncertainty faced by fresh graduates.

Maaza – a mango-based drink popular among millions of Indians for decades – has joined the elite club of brands that boasts of billion dollar revenues. Conceptualised and developed in India, now owned by the US behemoth Coca-Cola, Maaza has turned into a “billion dollar brand”, a top executive said today.

According to James Quincey, Chief Executive Officer of The Coca-Cola Company (Coke), Maaza emerged as a new billion dollar brand for it in 2024. “Maaza is now our 30th billion dollar brand. In 2024, our system added approximately 440,000 outlets by digital customer platforms in India, which provides more opportunities to better tailor our product, price and packaging offerings,” Quincey told the stakeholders in a post-earnings call on Tuesday.

Maaza’s emergence as a priced possession for Coke is no mean a feat. Born in 1976 in India, Maaza finds its association close with India’s then de-facto Cola King Ramesh Chauhan of Parle (now Bisleri International). Over the years since its launch Maaza, along with its sister brands like Gold Spot, Limca, Citra and Thums Up, had already established itself as a widely popular choice among Indian consumers. However, by 1995 Maaza found itself a new owner, arriving among the first sets of US multinationals post-liberalisation, Coca-Cola.

Over the last three decades Maaza’s growth held steady against the influx of competing fruit-based beverage brands both from Coke’s rivals in the market and its own stable. “Despite a flurry of fruit-based drinks in the market now, Maaza has curved out a space for itself that is not easy to steal. Its presence in consumer mindset transcends generations,” says a senior FMCG executive who had led the expansion of Maaza in the past.

According to him, Maaza proves the strength of Indian brands that, if done right, then can withstand global competition and the test of time. The only other Indian beverages brand that boost of a billion dollar or more in sales is Thums Up, which despite challenges from global fizzy drinks giants like Coca-Cola and Pepsi Cola, among others.

“In India, our business rebounded nicely during the quarter and we grew volume. We recruited consumers with innovative marketing campaigns that linked Coca Cola with music, Sprite with travel and Thumbs Up with movies,” Quincey further adds.

The Securities and Exchange Board of India (Sebi) on Tuesday barred textile firm LS Industries from the securities market for alleged stock price manipulation and fraudulent practices. The markets regulator noted that LS Industries had a market capitalisation of Rs 22,700 crore at the peak.

LS Industries, despite having a market capitalisation of Rs 5,768 crore, reported minimal revenue in the past three fiscal years. An investigation by Sebi revealed that in October 2022, former director Suet Meng Chay transferred his entire 12.12% stake in the company to Dubai-based NRI Jehangir Panikkaveettil Perumbarambathu in an off-market deal, news reports stated.

Although the shares transferred were valued at approximately Rs 154 crore based on a share price of Rs 15 each, the transaction took place at a significantly lower price of Rs 75 or $1 per share. Sebi's inquiry uncovered suspicious buy orders placed by multiple entities at the upper circuit limits at 9 am, leading to a significant increase in the share price. These actions resulted in an 11-fold increase in the share price within a short span of two months.

The regulatory body has issued a temporary order prohibiting LS Industries (LSIL), , along with its promoters and key individuals, from engaging in the trading of its shares and participating in the securities market until further notice, due to allegations of manipulating stock prices.

This action follows an investigation by SEBI into LSIL, a textile company that has reported minimal revenue. Despite recording no sales in two quarters of FY25, LSIL's stock price experienced a significant surge from Rs 22.50 in July 2024 to Rs 267.50 in September—an increase of 11 times—before plummeting to Rs 42.39 in November.

SEBI's investigations uncovered a suspected pump-and-dump scheme involving a group of traders, including Multiplier Share & Stock Advisors Pvt. Ltd. and Setu Securities Pvt. Ltd. These entities were found to have placed buy orders at upper circuit limits early on, leading to an artificial inflation of the stock's price. Subsequently, they proceeded to dump shares, resulting in a significant drop in the stock's value.

The Sebi is set to conduct a thorough investigation by May 15. Meanwhile, Sebi has instructed the NRI to furnish a comprehensive list of his assets, investments, and bank accounts, as well as to freeze any withdrawals from his accounts.

Diversified conglomerate ITC is increasing its bet on the rapidly growing frozen foods market. The Kolkata-based entity, which has been in the ready-to-cook (RTC) segment since 2019, has taken the inorganic route to scale the business as it gears up to acquire popular frozen foods maker Prasuma against some Rs 300 crore. 

The deal, planned to be completed over three years will see  ITC picking up a 43.8% stake by March 2025 in the company in the first tranche.  

ITC plans to raise its stake in Prasuma to 62.5% by April 2027 and the rest of the stake will be acquitted by the conglomerate by June 2028 based on pre-defined valuation criteria and subject to other conditions as stated in the definitive agreements. 

The company has not revealed the total cost of the acquisition but according to estimates ITC may have to spend close to Rs 300 crore to expand its presence in the frozen foods market that is increasingly gaining traction among urban consumers. 

As per the ITC management, the company will initially acquire 62.5% stake in Prasuma for Rs 187 crore and the deal will help ITC build a frozen, chilled and RTC portfolio in the Rs 10,000 crore market segment that has high growth potential.  

The move aligns with its ITC Next strategy coined by its Chairman Sanjiv Puri. The strategy primarily focuses on building a future-ready portfolio of products that serves evolving consumer needs. 

“ITC’s valuation of Prasuma is close to Rs 300 crore and it is expected to close the deal by 2028 against the amount,” a source familiar with the developments said. 

According to Hemant Malik, Wholetime Director, ITC, the addition of Prasuma into ITC’s portfolio will help it build a full stack of frozen and ready-to-cook foods portfolio. “With Good-for-You, first-to-market products, across cuisines, we believe that the combined portfolio will delight our discerning consumers. This investment reaffirms our commitment to building future-facing, best-in-class, innovative portfolios,” he said. 

Malik’s enthusiasm is not without a rationale. ITC already has a wide range of frozen foods portfolio under its ITC Master Chef brand, comprising over 50 RTC items, frozen snacks and Indian breads with a reach of over 200 towns. 

At a time when both segment-focused brands like Carnivor or Meatzza and traditional fast-moving consumer goods makers such as Godrej, are out to lure urban consumers, ITC’s move may prove to be crucial in its market presence. 

"With the industry at an inflexion point, this acquisition will help strengthen and expand ITC’s presence in the aforesaid categories by gaining entry into high growth segments, viz. Pan Asian foods, Deli meats, etc. With the proposed acquisition, ITC will become the first full-stack player in the segment with an unparalleled portfolio, offering meals and snacking options across multiple occasions throughout the day for the discerning consumer. ITC Master Chef and Prasuma shall also benefit from significant synergies through well-designed institutional mechanisms and enablers,” the company said.

The tax relief in the union budget FY26 and the repo rate cut by the Reserve Bank of India (RBI) are likely to boost demand for the Rs 10 lakh to Rs 25 lakh car segment, a top company official at Mahindra & Mahindra told reporters.

The RBI on February 7 cut the repo rate by 25 basis points at 6.25%. “Demand is going to be very robust for products Rs 10 to Rs 25 lakh in the country. And our strategy is to play in the Rs 7-25 lakh category,” says Rajesh Jejurikar, Executive Director- auto & farm division at Mahindra & Mahindra.

According to Dr Anish, Group CEO of Mahindra & Mahindra, tax relief will create demand stimulus for the middle class. “We believe the fundamentals for the Indian economy are very strong, and we've seen some blips in the short run, the relief, in terms of taxation for the middle class, puts more money in their hands, and that will create a demand stimulus, which is going to help and in turn, translate to greater capex from a private sector as well, which has also been an area that has been lacking in some way…. And similarly, the rate cut also will help in terms of creating a little bit more of a demand stimulus. So, both are positive moves from an economic standpoint,” says Shah.

Mahindra & Mahindra reported a 19% increase in year-on-year profit to Rs 2,964 crore, whereas the revenue from operations surged by 20% YoY to Rs 30,538 crore in the October to December quarter of FY25 on the back of strong SUV (sports utility vehicle) demand. The company continued to dominate the SUV market, with the SUV market share at 23%.

The company, which launched its flagship born-electric models — BE.6 and XEV.9e in December last year— will begin bookings of the EVs beginning February 14 this year. The company will initially roll out 5,000 units of BE.6 and XEV.9e

The Centre remains confident of completing the privatisation of IDBI Bank in the next financial year and expects the financial bids for the transaction to be invited by next month.

“The disinvestment of IDBI Bank is on track. We expect it to be completed by the middle of this year. Financial bids will be called by end of March,” an official source said.

According to sources, the due diligence process by the bidders is currently ongoing. They are now getting access to confidential data of the bank to assess its financial position and decide upon the bank’s valuation and their financial bids.

The Reserve Bank of India has already completed the fit and proper assessment of the bidders.

“When the IDBI Bank stake sale goes through, this will be the largest privatisation exercise since the disinvestment of Air India,” noted the source.

As part of the disinvestment of IDBI Bank, the Centre along with Life Insurance Corporation of India will sell 61% stake in the lender, along with the management control. This includes 30.48% stake of the Government of India and 30.24% of LIC.

The process of the bank’s privatisation has been long drawn, starting way back in January 2023 when the Centre had issued an Expression of Interest. Since then, the transaction has gone through several steps and processes with the financial bids being one of the very last processes.

For now, officials remain tight lipped about the realisation from the stake sale. For 2025-26, the Union Budget has estimated raising Rs 47,000 crore from disinvestment and asset monetisation and no separate figure has been ear marked from the sale of IDBI Bank.

The bank reported a 31% increase in its net profit for the third quarter of the fiscal at Rs 1,908 crore compared to Rs 1,458 crore in the same period a year ago.

The Patanjali Group has collaborated with IBSFINtech, a renowned global leader in Treasury Management Solutions. The integration of IBSFINtech’s platform with Patanjali’s current ERP system will transform the treasury and trade finance operations. The implementation of an Integrated Treasury Management Solution marks a significant milestone in the Group's digital transformation.

The real-time analytics and actionable insights provided by the system create a connected ecosystem for Patanjali, enhancing risk management, organisational agility, and resilience through informed decision-making.

The integration of the Integrated Treasury Management Solution (ITMS) represents a major advancement in Patanjali's digital transformation. Through providing real-time analytics and actionable insights, the platform establishes a unified environment that enhances risk management, organisational flexibility, and resilience. This empowers Patanjali to make well-informed decisions and improve operational efficiency throughout its worldwide operations.

Patanjali Group’s commitment to technological innovation is demonstrated through the incorporation of AI and Machine Learning, which greatly enhances operational efficiency. This integration not only enhances financial processes but also aligns with Patanjali's objectives for global expansion, tackling challenges such as Forex management, hedging strategies, and market volatility.

Sanjeev Asthana, CEO Patanjali Foods, said: “As a global brand, this collaboration reinforces our commitment to harnessing cutting-edge solutions. The initiative not only redefines financial operations but also underscores Patanjali’s commitment to innovation. It aligns with our global expansion goals and addresses growing complexities of international operations, Forex management, hedging strategies, and market volatility.”  

Kumar Rajesh, CFO of Patanjali Group, stated: “By simplifying financial ecosystems and ensuring real-time insights, Patanjali has achieved unmatched operational transparency, agility, and resilience. These advancements have fortified governance structures and empowered the organization to navigate dynamic financial landscapes with confidence.”  

Japan's Nissan may potentially end its merger discussions with Honda, as per a report. Nissan's board members are expected to convene soon to decide their next steps. 

According to a report in Reuters that quoted sources, this development casts uncertainty over a merger that could have resulted in the world's third-largest automaker by sales and raises questions about Nissan's ability to navigate its current challenges without external support.

The news of the potential end to merger talks led to a rise in the shares of both companies on Wednesday, with Honda's shares increasing by over 2 per cent and Nissan's by 1.6 per cent, despite a slight decline in Tokyo's Nikkei 225 index.

Honda, Japan's second-largest carmaker, and Nissan, the third-largest, had announced last year that they were in talks to merge, which would have marked a significant shift in an industry facing competition from China's BYD and other electric vehicle newcomers. However, sources indicated that the discussions have been complicated by growing differences between the two parties, as per the report.

Nissan's board is reportedly set to deliberate on ending the merger talks after Honda proposed making Nissan a subsidiary, a move that deviates from their initial discussions. Honda, with a market value nearly five times that of Nissan, is increasingly concerned about Nissan's progress in its recovery plan.

Japan's Asahi Shimbun newspaper had earlier reported that the merger might be called off. Representatives from both companies declined to comment on the status of the merger talks but stated that an announcement would be made in mid-February, as previously indicated.

Nissan has faced greater challenges than some other automakers in the transition to electric vehicles, having not fully recovered from the crises following the arrest and removal of former Chairman Carlos Ghosn in 2018. The merger discussions have also coincided with potential tariff disruptions from the United States. Analysts suggest that tariffs against Mexico could impact Nissan more severely than Honda or Toyota.

Nissan's long-term alliance partner, Renault, had expressed openness to the merger with Honda. The French automaker holds a 36 per cent stake in Nissan, including 18.7 per cent through a French trust.

Continuing its focus on rapid infrastructure development, the government this time has aided its growth formula with major tax relief for the low-to-mid income individuals. As Finance Minister Nirmala Sitharaman lowered the income tax burden on individuals earning up to Rs 12 lakh per annum, coupled with boosts for the agricultural sector, corporate India cheered the union budget for FY2026.

According to Anish Shah, Group CEO & MD at Mahindra Group, the theme of ‘Make in India for the world’ remains a key focus in this budget, with efforts to reduce India's manufacturing costs poised to significantly enhance the country's global competitiveness. In addition to providing an immediate stimulus for demand and growth, the budget emphasises on long-term growth through substantial infrastructure investments and a strong focus on innovation.

“We commend the 2025 Union Budget for its continued support of robust consumption growth through changes in the tax structure, effectively placing more disposable income in the hands of the Indian consumer. This will encourage private sector capex to move in a positive direction,” says Shah.

Mohit Malhotra, CEO, Dabur India feels that tax reliefs offered in the budget will help boost the economy by increasing consumption. “Union Budget 2025-26 marks a pivotal step towards enhancing the financial well-being and quality of life for millions of middle-class families. The substantial tax relief measures, particularly making income up to ₹12 lakh tax-free, will provide essential financial respite to middle-class families, increasing their disposable income, encouraging spending, and promoting overall economic growth. This focus on the middle class addresses a long-standing demand and is a positive step towards a more inclusive and robust economy. I am optimistic that this move will help stem the slowdown in urban consumption and bring it back on the growth track,” says Malhotra.

According to him, the budget's emphasis on the agricultural sector, with enhanced support for farmers through increased Kisan Credit Card limits and targeted financial incentives, is commendable. These measures will not only strengthen the agricultural backbone of our country but also ensure food security and sustainable growth in the sector.

“The Union Budget 2025-26 is a bold and forward-looking plan that places the middle class at its core while ensuring inclusive and sustainable growth across all sectors. For middle-class families, strategic focus on targeted tax relief and enhanced social security measures, will uplift household sentiments, boost disposable income and drive consumption. This will provide much-needed financial stability to the masses,” says Saugata Gupta, MD & CEO of FMCG major Marico.

According to Gupta, the allocation of Rs 1.71 lakh crore to agriculture and allied activities, coupled with initiatives like the National Mission for Edible Oilseeds, Aatmanirbharta in Pulses, and the Prime Minister Dhan-Dhaanya Krishi Yojana, will drive agricultural productivity, stabilize rural economies, and ensure farmers have access to essential resources.

"This is a well-structured and progressive budget, aligned with the Government’s vision of a Viksit Bharat. It maintains a strong focus on inclusive growth, covering key sectors such as agriculture, farming, women’s empowerment, and manufacturing. The continued emphasis on capital expenditure is commendable,” says Harsha Vardhan Agarwal Vice Chairman & MD, Emami Ltd, adding that a major highlight of this budget is the significant announcement on personal income tax. “By putting more money in the hands of consumers, this step is expected to boost consumption and drive an increase in discretionary spending, ultimately strengthening overall economic momentum."

Sanjay Dutt, CEO and MD, TATA Realty and Infrastructure feels that the budget underscores India’s forward-looking vision for sustainable growth, urban transformation, and infrastructural excellence. 

“We commend the government’s comprehensive approach with its emphasis on increasing purchasing power by increasing the tax limit, strengthening urban infrastructure, governance, and land-use planning, with housing continuing to be a pillar of national growth. Additionally, the extension of tax benefits for self-occupied properties and interest subsidies further empowers homeowners, making housing more accessible and financially feasible,” says Dutt.

As corporate leaders push for longer workweeks, the Economic Survey 2024-25 has issued a stark warning: excessive work hours can take a serious toll on mental health.

Citing global studies, the survey highlighted that working over 60 hours a week can lead to significant health risks, with those clocking 12-hour days at their desks showing “distressed” levels of mental well-being. The findings arrive amid a heated debate over the 70-90-hour workweek proposal, which has divided India’s business community.

The Economic Survey referenced a study by the Sapien Labs Centre for Human Brain and Mind, reinforcing that long hours at a desk harm mental health. “Individuals who spend 12 or more hours at a desk have distressed/struggling levels of mental well-being, with a mental well-being score approximately 100 points lower than those who spend less than or equal to two hours at a desk,” the survey noted.

Beyond mental health, workplace culture and lifestyle choices were also found to impact productivity. The survey indicated that stronger workplace relationships and a better sense of purpose at work could reduce workday losses by 2-3 days per month. Conversely, poor management relationships and low workplace pride were linked to increased absenteeism.

Still, the survey acknowledged that productivity is influenced by multiple factors, cautioning that even in organizations with strong managerial relationships, an average of five workdays per month are lost. Citing World Health Organization (WHO) data, it also highlighted that depression and anxiety result in a global loss of 12 billion workdays annually, amounting to an economic hit of $1 trillion. “In rupee terms, this translates to about ₹7,000 per day,” it added.

The survey’s findings come in the wake of remarks by industry leaders advocating for extended workweeks. Larsen & Toubro Chairman S N Subrahmanyan recently suggested a 90-hour workweek, arguing that employees should work even on Sundays rather than “sit at home.” His comments echoed similar views from Infosys co-founder Narayana Murthy, who proposed a 70-hour workweek, and Adani Group chairman Gautam Adani, who joked that spending too much time at home could lead to marital discord.

However, calls for grueling schedules have met resistance from within the corporate world. RPG Group Chairman Harsh Goenka warned that excessive work hours lead to burnout, not success. Mahindra Group Chairman Anand Mahindra also pushed back, stating that productivity should be prioritized over work hours. ITC Ltd Chairman Sanjiv Puri further emphasized the importance of empowering employees rather than measuring their worth by time spent working.

The debate is not unique to India. In China, the infamous ‘996 culture’—where employees work from 9 am to 9 pm, six days a week—has faced increasing scrutiny. The Economic Survey concluded that if India hopes to achieve its economic goals, it must address lifestyle choices from an early stage. Toxic work cultures and excessive hours, it warned, could ultimately hinder the country’s economic growth.