Oct 3: Booze Gets a Boom in India, Microsoft Shifts Leadership towards AI

Today, before the headlines, we remember Dr. Jane Goodall — the woman who transformed how we see the natural world. More than a scientist, she was a gentle force whose decades of work in Tanzania revealed chimpanzees’ intelligence, emotions, social bonds, and even tool use, reshaping our understanding of our kinship with other animals. She challenged convention and devoted her life to conservation with rare grace and courage. She built Roots & Shoots to mobilize youth in 100+ countries, authored bestselling works, and earned global honors including Dame Commander of the Order of the British Empire, the French Legion of Honour, Japan’s Kyoto Prize, and the UN Messenger of Peace designation. Her legacy is not just in data, but in providing a belief that curiosity and compassion can reshape the future and our bond with nature. RIP to a true legend 🫡

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 6.5 mins.

Toasting A High: India’s alcohol market is set for a revenue jump of 10–12% in FY26, driven by premiumisation and state-approved price hikes, even as volumes rise just 1–2%, per ICRA. The shift toward higher-quality products is lifting value growth.

Beer Outpaces Spirits: The report states beer is expected to outpace spirits, with 4–6% volume growth, while IMFL and country liquor could see declines amid higher taxes and prices. Operating margins remain steady at 13–14% on stable input costs; while capex will remain moderate for capacity additions.

Demographics, Urbanisation Fuel Growth: India, the world’s third-largest alcohol market by volume and second-largest for spirits, benefits from a young base—over 65% of consumers are under 35—and expanding urbanisation in tier-2 and tier-3 cities, increasing access and demand.

Premiumisation And Foreign Investment: Premium products are seeing a rise in demand, with consumers increasingly seeking quality over quantity. Reduction in import duties due to tariff negotiations with the US, has drawn interest of foreign players in the market. Open policies and state incentives are encouraging local production, notably in wine and premium spirits. Whiskey still dominates, but beer and wine offer strong growth potential.

Sazerac Sets Eyes on India: Global spirits giant Sazerac has flagged India as central to its long-term growth strategy, targeting a premium whiskey segment that has more than doubled in five years. It plans to introduce bourbons from its global lineup—Buffalo Trace, Weller, Benchmark, and Sazerac Rye—for consumers seeking higher quality.

Fuelling The Chats: Arattai, Saas giant Zoho’s Chennai-built messaging app, is suddenly surging, with traffic up 100x in days after endorsements from Union ministers Dharmendra Pradhan, Piyush Goyal, and Ashwini Vaishnaw. Launched in 2021 as a domestic Made-In-India alternative to WhatsApp, it’s benefiting from a wave of nationalist support and investor interest.

Features That Chat Up Users: Arattai offers standard features—text and voice messaging, audio/video calls, group chats, media sharing, and story updates. Its cross-device support, across smartphones, tablets, desktops, and a web app, ensures seamless syncing of messages, contacts, and settings. Zoho also pitches it as a future hub for workflow and productivity integration.

Rapid User Growth But Can It Last? Market intelligence firm Sensor Tower estimates nearly 400,000 downloads in September, up from under 10,000 in August. Arattai claims over 1 million active users—a fraction of WhatsApp’s 500+ million Indian users—yet the momentum is notable. Analysts caution, however, that WhatsApp’s entrenched network effects remain a hurdle.

Challenges Loom: Beyond scaling infrastructure and customer support, Arattai must earn trust on privacy and data security amid concerns over government data access. Past challengers like Koo and Hike saw hype fade without sustained adoption. For messaging platforms, the real test is not downloads, but consistent engagement.

Water that Fits the Budget: Reliance Consumer Products is set to launch Campa Sure, a budget packaged water brand aiming to disrupt India's ₹30,000-crore market. Reliance aims to partner with regional bottlers and offer prices 20-30% lower than competitors like Bisleri, Kinley, and Aquafina.

Tariff Impact Hits Indian Exports: U.S. tariffs of 50% on Indian goods are biting textiles, gems, agriculture, and engineering. Exports have slowed, supply chains are disrupted, and financial strain is mounting. The agricultural sector, particularly shrimp, basmati rice, and cotton, face halted shipments and unsold stock, risking significant job losses. The broader economy is also feeling the pinch, with manufacturing and services activity declining.

SKF India Ramping Up Capacity: SKF India plans to invest up to ₹1,460 crore by 2030 to enhance manufacturing capabilities across its industrial and automotive sectors, with increased capacity at its Haridwar, Pune, and Bangalore facilities. SKF India completed a demerger of its industrial business, pursuing a separate listing by November 2025.

Equities Outflow Continues: Foreign Portfolio Investors (FPIs) withdrew ₹27,000 crore (approximately $3.2 billion) from Indian equities in September, marking the third consecutive month of outflows. This brings the total FPI outflows for 2025 to ₹1.43 lakh crore (around $17 billion)—the second-highest for Jan–Sep.

Centre Mulls Fund for Private Infra Investment: The Centre is weighing a ₹20,000 crore risk-guarantee fund to attract private infrastructure investment. The initiative is part of India's strategy to meet its ambitious infrastructure spending target of USD 4.51 trillion by 2030, essential for achieving the vision of a USD 5 trillion economy.

TCS Rolls Out Generous Severance Amid Layoffs: Tata Consultancy Services (TCS) is offering severance packages of up to two years' salary to long-serving employees whose skills no longer align with the company's evolving needs. This move is part of TCS's efforts to become a more agile organization in the era of AI-led business transformation.

Wintrack Exits India Amid Bribery Allegations: Wintrack Inc., a Chennai-based logistics firm, has ceased all import and export operations in India, alleging sustained harassment and bribery demands by Chennai Customs officials. The company claims that after exposing bribery practices earlier this year, officials retaliated, crippling its operations. In response, Chennai Customs denied the allegations, labeling them as false and part of a pattern of unsubstantiated claims. The Finance Ministry has ordered a thorough inquiry into the matter.

JP Morgan Values Reliance Retail at $143B, Jio at $135B: JP Morgan has valued Reliance Retail at $143 billion and Reliance Jio Infocomm at $135 billion, indicating the growing significance of Reliance Industries' consumer businesses. These sectors now account for over half of the group's earnings before EBITDA.

RBI Halts Simpl's BNPL Operations: The RBI ordered fintech startup Simpl to cease its payment operations for violations of the Payment and Settlement Systems (PSS) Act, 2007. Simpl, which partners with over 26,000 merchants, was found to be operating a payment system without the requisite authorization.