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.