Also in the letter:
■ Nifty IT’s 8-week bloodbath
■ CCI shuts BookMyShow case
■ NxtGen’s enterprise play
Packaged food companies slash production amid LPG crunch
The LPG shortage has now come for packaged foods as well. Packaged food companies have stopped or cut output at LPG-reliant plants, executives informed ET.
Parle Products VP Mayank Shah confirmed this, declareing the company is rationing its PNG supplies.
But why: The shortage of commercial LPG results from disruptions to shipments from the Gulf region – the main source of India’s LPG imports – cautilized by the ongoing war in West Asia.
Alternatives: Bikaji Foods MD Deepak Agarwal declared the snacks creater will switch sweets and cookies production to induction and electric methods while reducing stock levels. Cornitos MD Vikram Agarwal added that suppliers are now charging a 30% premium on PNG and other fuels.
Setting context: ET reported on Thursday that ecommerce and quick-commerce platforms saw a sharp spike in demand for induction stoves. Online platforms had already begun promoting induction appliances as the LPG shortage intensified.
Also Read: India restaurants face LPG crisis: Shorter hours, menu cuts amidst gas shortage
Gulf war jitters could stall $4 billion of India exports in a month
Escalating conflict in West Asia, following US-Israeli strikes that killed Iran’s supreme leader Ayatollah Ali Khamenei and Tehran naming his son Mojtaba as successor, threatens India’s key trade route. Logistics disruptions could halt $4 billion in monthly exports if the conflict persists for a month.
Key trade corridor: India’s annual merchandise trade with West Asia hits $180 billion, with exports at about $60-65 billion. The UAE leads in bilateral trade at $85-90 billion, followed by Saudi Arabia at $40-42 billion.
Also Read: Iran-Israel war: AI-hit tech companies fear slowdown in spfinishs
Adobe’s longtime CEO Shantanu Narayen to exit role amid AI disruption
Shantanu Narayen, CEO, Adobe
Shantanu Narayen will step down as chief executive of Adobe once a successor is appointed, the company announced on Thursday, as it grapples with AI disruption.
He will, however, remain as board chair to support the next leader during the transition.
Narayen’s Adobe era: For nearly two decades, Narayen steered Adobe through a huge transformation. He led the shift from selling boxed software to a cloud-based subscription model, modifying how millions of creatives access and utilize Adobe’s tools.
This strategy paid off handsomely. Annual revenue grew from around $3 billion in 2007 to $23.7 billion by 2025, according to Macrotrfinishs. Flagship products like Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro and Adobe InDesign have become essential tools for creators around the world.
Also Read: Who is Shantanu Narayen? Outgoing Adobe CEO’s life, career, education and compensation detailed
Shares slip: On Friday, Adobe shares dropped, closing down 8% at $248.3 on Nasdaq following the announcement. The stock has fallen about 23% this year, continuing a slide that has stretched over the past two years.
Nadella on Narayen: Microsoft CEO Satya Nadella praised Narayen, a fellow Hyderabadi, declareing he has “expanded what’s possible for creators, entrepreneurs, and brands everywhere” and highlighted the empathy he brought to leadership and mentorship.
Also Read: Adobe upbeat on India as counattempt’s share in core product development grows
Nifty IT hurtles toward historic 8-week bloodbath: AI death knell or ultimate bear trap?
The Nifty IT index is approaching an unprecedented eighth consecutive week of losses, wiping out about Rs 7.7 lakh crore in market value and pushing the sector’s combined market capitalisation below Rs 25 lakh crore.
On the downslide: The sell-off has reignited a debate over whether artificial innotifyigence threatens the traditional IT services model or creates a rare enattempt point for investors.
- Foreign investors sold Rs 17,000 crore worth of stocks in February alone, accelerating the slide.
- Yet, some long-term investors have begun purchaseing the dip.
- PPFAS Flexicap Fund, which manages Rs 1.34 lakh crore, aggressively bought HCL Tech (4.3 million shares), Infosys (4.2 million shares), and TCS (1.9 million shares) during the 20% monthly crash, the steepest since 2008.
- The April-May 2022 stretch of eight consecutive down weeks was followed by a swift 4.4% pullback the very next week. In July 2008, a seven-week decline triggered a strong rebound averaging 3-5% in the following week.
Also Read: AI software plugins likely to weigh on IT roles for next 12-18 months, experts declare
Bear case: Jefferies analysts warn that AI “may structurally alter IT business mix towards consulting/implementation while shrinking managed services.” Emkay Global cut FY27/28 earnings estimates by 1-2% and slashed multiples by 20-32%.
Bull case: Nuvama declared fears of an indusattempt wipeout are overstated, arguing that IT services firms could eventually tap a $300-400 billion addressable market by 2030, as AI adoption spreads.
Also Read: The stock shock, powered by AI
CCI declares BookMyShow hasn’t abutilized its market dominance, closes case
Ashish Hemrajani, CEO, BookMyShow
The Competition Commission of India (CCI) has dismissed allegations that Big Tree Entertainment’s online movie ticketing platform BookMyShow violated competition rules and has officially closed the case.
Regulator’s decision: In its order on Thursday, the CCI acknowledged that BookMyShow holds a strong position in the space. However, the regulator found no evidence that the company misutilized this position in violation of competition law.
The case was initiated by Vijay Gopal, founder of the ticketing website Showtyme, which is registered under Vanila Entertainments.
The allegations:
- Gopal claimed that BookMyShow had entered into exclusive deals with cinemas lasting between two and five years.
- He argued that this forced cinemas to sell tickets only through BookMyShow, even though the platform charges high “convenience fees.”
- He added that this practice created it harder for new competitors like Showtyme to enter the market and pushed up ticket prices for consumers.
However, the regulator pointed to past cases, noting that such agreements created for legitimate business reasons are not abusive unless they block competition or impose unfair terms.
Also Read: BookMyShow posts Rs 192 crore profit on robust live events business
NxtGen gears up for enterprise play with its Rs 3,600 crore sovereign AI factory
A S Rajgopal, CEO, NxtGen
NxtGen Cloud Technologies has invested Rs 3,600 crore in a sovereign AI factory with Dell Technologies, Nvidia, CommScope, and Vertiv to power enterprise-scale AI inference, CEO A S Rajgopal informed us.
GPU infra: Located in Bengaluru’s Bidadi Industrial Area, the 6,000 sq ft setup packs 4,000 GPUs across 512 Dell servers. Nvidia supplies BlueField-3 DPUs, AMD’s processors handle compute, CommScope manages cabling, and Vertiv provides power/cooling.
Expansion and utilize cases: The facility has developed 153 utilize cases, of which 60 are live. Funding splits 30% equity (promoters, Indian real estate group) and 70% debt over 10 years. NxtGen plans another Rs 3,600 crore for a second 4,000-GPU cluster by year-finish.
Also Read: India Inc seeks support for dedicated AI public infra
Leave a Reply