Oct 31: Festive Boom-Supply Gloom, Suzuki’s Masala Moment

In true desi jugaad fashion, French tech entrepreneur Dagobert Renouf turned his wedding tuxedo into a startup billboard, selling 26 ad spots on his tuxedo to tech startups to cover the event costs. Somewhere between the varmala and the vows, it seems we’re skipping gift registries and going straight to ad inventory on our suits.

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 6 mins.

The Indian stock market saw a sharp pullback on Thursday, despite the US Fed cutting rates by 25 bps. Sentiment was derailed by Fed Chair Jerome Powell's cautious tone, hinting that the rate reduction might be the last of 2025.

When Celebration Turns Into Chaos: India’s festive cheer has spilled into shopping sprees, but this year, it’s the supply chains that are sweating. From chocolates and snacks to large-screen TVs and SUVs, companies are scrambling to meet an unexpected surge in demand triggered by GST rate cuts and pre-Diwali buying frenzy. Consumers are encountering waitlists for products that were once instantly available. In some cases, deliveries have stretched from days to weeks and across showrooms, the “out of stock” sign has become a familiar sight.

Demand Hits The Roof: The numbers say it all. Automakers like Maruti Suzuki are clocking around 14,000 bookings a day, compared to 10,000 earlier. In electronics, the story is similar premium TVs, washing machines, and refrigerators are selling 50–100% more than forecasts. Retailers who had stocked for a 20% rise in demand are now facing near-empty shelves. Even FMCG players are struggling to replenish larger packs of chocolates, soft drinks, and snacks, with warehouse inventories wiped out faster than they can restock.

Supply Struggles And Stockouts: The surge has left factories and supply chains gasping for air. Imported components like TV panels and chips have slowed production, while scheduled factory shutdowns around Diwali have worsened the crunch. Retailers estimate it could take 15 to 45 days for supply to normalise. For brands, the bigger worry is lost sales - as the demand exists but there is no inventory. Some companies have already begun rerouting shipments and ramping up local production, but recovery won’t be instant.

The Bigger Picture: While the GST rate cut on big-ticket items like ACs, TVs, and dishwashers (from 28% to 18%) was meant to make goods more affordable, it also unleashed a wave of pent-up demand. Add India’s strong consumer sentiment and festive energy, and you have a textbook case of policy-triggered overdrive. The outcome? A booming retail market but one groaning under the weight of its own success. For now, Indian shoppers may have to wait a little longer to unwrap their festive buys.

When Automakers Turn Tastemakers: Suzuki may be known for putting millions of Indians on the road, but now, it’s setting out to win their taste buds - back home in Japan. The Japanese automaker has taken an unexpected detour from the auto lane to the culinary one, launching Indian-style curries across select outlets in Japan. It’s a curious but clever move. For decades, Suzuki has built its empire in India through Maruti Suzuki, which dominates the subcontinent’s car market. Now, in a full-circle moment, Suzuki is bringing - quite literally- a slice of India to Japan.

A Taste of India On Japanese Shelves: The ready-to-eat curry packs, inspired by authentic Indian flavours, are being marketed both as comfort food for Indian expatriates and a new taste experience for Japanese consumers. The dishes reportedly feature popular Indian staples - rich gravies, bold spices, and a hint of home-style nostalgia, neatly packaged for convenience. For Japan, where curry rice is already one of the most-loved dishes, Suzuki’s “Indian curry” spin offers a different kind of heat. It’s an opportunity to introduce Japanese diners to India’s deeper spice palette beyond the usual mild blends found in Japanese kitchens.

Masala As Soft Diplomacy: Suzuki’s foray into food may seem odd, but it’s part of a larger trend where companies are reimagining brand identity beyond their traditional sectors. For Suzuki, which has long relied on India as its biggest growth driver, this curry venture doubles up as soft diplomacy, exporting a taste of its most successful market to its home turf. It’s not the company’s first experiment outside automobiles either. Suzuki has been exploring lifestyle products and brand extensions, aiming to diversify its image from a carmaker to a “culture carrier.” And in a market as brand-loyal as Japan, a familiar name attached to something new can make all the difference.

Toyota’s India Drive Gets Bigger: The Japanese auto major is betting big on India, planning to launch 15 new or refreshed models and deepen its footprint in smaller towns as its Indian unit posted record profits. It aims to boost its market share from about 8 % to 10 % by decade-end, reduce reliance on partner models and invest over $3 billion including a new plant.

Lenskart IPO Puts Titan In Focus: The impending IPO of Lenskart may act as a catalyst for investors to re-examine Titan’s under-the-radar eyewear business, which has lagged behind its dominant jewellery and watch segments. With Lenskart targeting a valuation of around Rs 20,000 crore (or more) the optics are shifting, perhaps putting Titan’s eyewear arm back on the map.

India Gains Access To China’s Rare Earths: India’s Ministry of External Affairs confirmed that certain Indian firms have been granted licences to import rare earth magnets from China. It signals that India is actively managing its supply-chain vulnerabilities in sectors where technology & national security overlap.

Physicswallah Preps ₹3,820 Cr IPO: The Indian ed-tech platform is preparing an initial public offering expected to raise around ₹3,820 crore, combining a fresh issue of ~₹3,100 crore and a secondary sale of ~₹720 crore by founders. Backed by investors like WestBridge Capital LLP and Hornbill Capital, the deal is reported to launch in the coming weeks.

Jio Users Get Free Gemini AI Access: Reliance and Google have struck a partnership that gives eligible Jio users free access to Google’s premium AI plan (Gemini AI Pro) for 18 months typically valued at ~₹35,100. The offer includes access to advanced models like Gemini 2.5 Pro, 2 TB cloud storage and image/video generation tools. Initially targeting 5G plan users aged 18-25, showing how telecom and tech firms are accelerating mass AI adoption in India.

Looks Like AI Just Got Promoted: OpenAI has a new secret project and it’s not another chatbot. The company behind ChatGPT is quietly building “Project Mercury”, an AI system reportedly designed to handle the grunt work usually done by entry-level bankers and consultants. Yes, the same Excel warriors who once pulled all-nighters making pitch decks might soon find themselves replaced by a bot that doesn’t need caffeine.

AI Learns The Analyst Grind: To train this financial wunderkind, OpenAI has hired over a hundred former bankers and consultants from top firms like Goldman Sachs, Morgan Stanley and JPMorgan. Their job is to teach AI how to build models for IPOs and mergers, draft deal memos, and prepare those perfectly aligned PowerPoints that junior analysts lose sleep over. The pay is said to hover around $150 an hour, not bad for teaching your future replacement how to do your job better. The end goal: create an AI that can perform complex analytical tasks with human-level precision, minus the fatigue or hierarchy complaints.

The Automation Avalanche Begins: If Project Mercury works as intended, it could hit the lowest rungs of finance hardest, the same way automation earlier disrupted factory floors. Banks have already started testing AI tools for research and wealth management, but this is different: we’re now talking about AI that can think, calculate, and present like a first-year associate. For consulting firms and investment banks, that means faster turnarounds, fewer errors, and perhaps fewer juniors on the payroll. For young graduates eyeing finance as a fast track to success, well, it might be time to reconsider that MBA.

YouTube Says ‘Exit If You Wish: The video-platform is giving eligible U.S.-based staff the option to leave voluntarily with severance under a newly unveiled “voluntary exit programme”. The move comes alongside an internal restructure of its product teams into three divisions reporting to the CEO. While no forced layoffs are reported, the programme signals a broader organisational pivot and cost review.

GM Hits Brakes In EV Hiring- The U.S. automaker is set to make around 1,700 roles permanent layoffs while temporarily furloughing up to 5,500 more as it scales back EV and battery production. The cuts follow slower-than-expected electric-vehicle demand and the wind-down of sales incentives in the U.S. market.

JPMorgan Turns Funds Into Tokens: The banking giant has converted ownership stakes in a private-equity fund into digital tokens via its in-house Kinexys blockchain platform, marking a new frontier in asset tokenisation. The move is aimed at wealthy clients and is a precursor to a broader rollout of tokenised fund-investments across alternatives. By digitising fund ownership, JPMorgan is pushing to make private markets more efficient and accessible.

Alphabet Hits $102 Bn: Surging demand for AI-powered ad services and cloud infrastructure pushed Alphabet’s Q3 earnings to $102.35 billion, up about 16 % year-on-year. The cloud segment alone grew around 34 %, while ad revenue rose over 12 %. Alphabet also raised its 2025 capital-expenditure forecast to around $91-93 billion as it deepens investments in AI infrastructure.

Microsoft Posts $77.7 Bn Quarter, Profits Jump 22%: Microsoft reported revenue of about $77.7 billion for the quarter, an 18 % increase, with net profit up 22 % signalling robust enterprise demand. The company’s cloud and subscription businesses remained key growth drivers in a tight tech market. With AI momentum accelerating, Microsoft appears well-positioned in the enterprise stack though investors remain watchful on margins and spending ahead.

Russia On Alert After Trump Orders Nuclear Tests: Russia reacted cautiously after the U.S. President publicly urged the restarting of U.S. nuclear weapons tests, potentially ending the decades-long moratorium. Moscow views the move as a destabilising signal that could disrupt global arms-control treaties and trigger a renewed arms race.

Volkswagen AG Staggers: The German automaker reported a quarterly operating loss of approximately €1.3 billion, hit hard by a roughly €5-billion tariff burden from the U.S. and trouble at its luxury arm Porsche. The combination of higher import duties, EV transition costs and Porsche’s strategic flip added unexpected strain.

OpenAI Plans $1 Trillion IPO: The AI-leader is reportedly preparing for an initial public offering potentially valuing it near $1 trillion, with a filing possible by second half of 2026. Discussions suggest a $60 billion-plus raise at the low end, though plans remain early and fluid.

Novo Nordisk Sparks $9 Billion Bidding War With Pfizer: A new bidding war has erupted in the obesity drug space as Novo Nordisk made an unsolicited offer for U.S. biotech Metsera, valuing it at up to approximately $9 billion, including milestones. The deal seeks to outflank Pfizer’s earlier bid and secure Metsera’s monthly-dose weight-loss candidate, giving Novo a leg-up in a global obesity-drug market projected to hit $150 billion.

Swiggy Q2: Loss Widens, But Growth Remains Hot: Swiggy’s consolidated loss widened to ₹1,092 crore in Q2 FY25, compared to ₹894 crore last year. Yet, revenue surged 54% year-on-year to ₹3,983 crore, powered by robust food delivery demand and its quick-commerce arm, Instamart. The company also reported improved order frequency and growing user retention, suggesting that despite the burn, Swiggy’s scale and operational efficiency are strengthening ahead of a potential IPO next year.

US Grants India Six-Month Chabahar Port Sanctions Waiver: The US has officially granted India a six-month exemption from sanctions on Iran’s Chabahar Port, confirming New Delhi’s key role in regional connectivity. The waiver enables India to continue developing the port as a crucial trade gateway to Afghanistan and Central Asia, bypassing Pakistan.

Diana Pundole Becomes First Indian Woman In Ferrari Global Series: Breaking barriers on the racetrack, Diana Pundole has become the first Indian woman to compete in the global Ferrari Challenge series. Representing India in the championship’s 2025 season, Pundole’s feat marks a significant moment for motorsport diversity and women in racing.

Mumbai Police Rescue 20 Hostage Children: A tense standoff in Mumbai ended safely after police rescued over 20 children held hostage by a man in a residential building. The accused, reportedly mentally unstable, had locked the children inside for several hours before being overpowered by a special team.

Abhishek Nayar Named KKR Head Coach: Kolkata Knight Riders have promoted Abhishek Nayar to head coach ahead of the 2026 IPL season. A long-time mentor and assistant within the franchise, Nayar replaces Chandrakant Pandit. His elevation signals KKR’s focus on continuity and nurturing homegrown coaching talent after a successful 2025 campaign.

THAT’S ALL FOR TODAY!

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