Oct 4: Homegrown Consulting Hits The Fast Lane, India’s Data Center Boom

Perplexity just lobbed a meteor into the browser wars: its AI-powered Comet, once locked behind a $200-a-month paywall, is now free for all. Not just free—free with shiny upgrades, like an AI sidekick that trails you across tabs, remembers context better than your ex, and even promises to share chai-paani with publishers. Which leaves us wondering—if the smartest AI browser comes free, what are we actually paying with instead? 🤔 In other news, Netflix just scored a clean KO in court: a U.S. judge tossed out Indian filmmaker Soham Shah’s claim that Squid Game copied his 2009 film Luck. Both had debt-ridden players risking life for prize money, but the judge ruled they’re “meaningfully different.”

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 6 mins.

The Indian benchmark indices, the Sensex and Nifty, closed higher on Friday for the second consecutive session. The positive momentum was driven by favourable market sentiment following the RBI’s unchanged repo rate and projections of healthy growth-inflation dynamics.

Digital Demand Drives Growth: India’s digital economy is surging on rising internet use, e-commerce, digital transactions, and adoption of AI, cloud computing, and IoT. Data center capacity stands at 1.4 GW (Q2 2025) and is expected to double within two years, backed by over $32 billion in investments from global and domestic players.

Government Policies Fuel Expansion: Supportive regulations are accelerating growth. Data localization mandates, the Digital Personal Data Protection Act, and the draft National Datacenter Policy provide clearer guardrails. Initiatives like the IndiaAI Mission, including a $1.2 billion GPU program, boost high-performance computing. Infrastructure status, single-window clearances, pre-provisioned data parks, and Data Centre Economic Zones aim to streamline operations and create integrated hubs.

Gigawatts Of Ambition: The scale of investment is unprecedented. Google is reportedly planning a 1-GW facility in Andhra Pradesh, while OpenAI is exploring a similar hub. To put it in perspective, 1 GW equals 1,000 MW—far beyond the 10 MW typical of enterprise-driven facilities. Hyperscalers like Microsoft, AWS, and Google are driving this wave, with AI workloads expected to push facility demand to 75–100 MW.

Competition Heats Up: Over 15 players are chasing market share, including Japan’s NTT, Singapore’s STT GDC, U.S.-based Equinix, and Indian giants Adani and Reliance. Real estate developers are also pivoting: Hiranandani Group’s Yotta, Anant Raj Developers, and Panchshil Realty are investing billions to become “digital landlords,” transforming data centers into a new asset class.

Technology And The Road Ahead: Challenges remain—power supply, metro concentration, workforce gaps, and regulatory delays but government backing, private investment, and technological innovation position India to emerge as a global data center hub, meeting domestic demand and playing a key role in the international digital economy.

Beyond Advice: India’s $10-billion management consulting sector is quietly transforming. For decades, global majors and the consulting arms of audit firms dominated with strategy-heavy, playbook-driven models. Now, homegrown firms are moving in, offering not just advice but hands-on execution and shared accountability for results and are winning mandates once reserved for global players.

Homegrown Firms Go Global: India has produced global leaders in IT, pharma, and AI, but not yet in management consulting. Firms like YCP Auctus, Praxis Global Alliance, Takshashila Consulting, Redseer Strategy Consultants, Zinnov, and Vector Consulting Group are changing that. Many operate globally, with clients in Asia, Europe, and beyond, and some have attracted Japanese investments. YCP Auctus earns over 40% of revenue internationally, while Vector Consulting Group focuses on supply chain and operational improvements across Asia.

Building A Homegrown Big Four: The Indian government is exploring creating domestic consulting majors to rival Deloitte, PwC, EY, and KPMG. A high-level meeting chaired by Shaktikanta Das in June 2025 evaluated the feasibility of building Indian firms with global standing, presented by EAC-PM member Sanjeev Sanyal. The goal is to reduce reliance on foreign advisory firms and foster globally competitive domestic capabilities in professional services.

Russia Eyes Trade Balance With India: Russia is looking to narrow its $59 billion trade gap with India, while urging New Delhi to keep buying Russian oil despite US sanctions. Putin suggested boosting imports of Indian goods, from agriculture and pharma to textiles and engineering products. Bilateral trade hit a record $68.7 billion in FY 2024-25, but imports from Russia still heavily outweigh Indian exports.

Local Tech Push Amid US Tensions: Due to escalating trade tensions with the United States, Indian ministers are intensifying efforts to promote domestic alternatives to popular U.S. tech platforms such as Google Maps, WhatsApp, and Microsoft Office. Prime Minister Narendra Modi has called for the adoption of "swadeshi" (locally made) products, with senior ministers actively endorsing Indian tech platforms like Zoho and MapmyIndia.

Tata Consumer To Invest ₹2,000 Cr: Tata Consumer Products Ltd (TCPL) has signed a non-binding Memorandum of Understanding (MoU) with India's Ministry of Food Processing Industries to explore an investment of up to ₹2,000 crore over the next five years. This initiative, announced during the World Food India 2025 event, aims to enhance TCPL's presence in the food processing sector.  

Distributors Take Lead In Mutual Funds: Distributors now manage 70% of the industry's assets under management (AUM), totalling ₹2.53 lakh crore. Their approach has resonated with retail investors, especially during market downturns like the 2020 crash, leading to a surge in mutual fund investments.

Govt Probes E-Commerce Platforms: The Indian government has initiated an investigation into e-commerce platforms accused of charging customers additional fees for cash-on-delivery (CoD) orders. Consumer Affairs Minister Pralhad Joshi confirmed the probe, labelling such charges as "dark patterns"—manipulative design tactics that mislead consumers.

Pulse Acquires UK’s Nucleus For ₹500 Crore: Mumbai-based fintech firm Pulse has acquired UK-based SME loan originator Nucleus Commercial Finance for approximately ₹450–500 crore. This acquisition enhances Pulse's UK presence ahead of its planned ₹1,000 crore IPO in 2026. The combined entity aims for a turnover of ₹500 crore and plans to raise additional funds to support growth and acquisitions.

India Nets $13B In Electronics Component Scheme Proposals: India's Electronics ECMS has attracted ₹1.15 lakh crore in investment proposals, nearly doubling its original target of ₹59,350 crore. The scheme aims to bolster India's electronics manufacturing sector, reduce import dependence, and generate significant employment.  

Maruti Suzuki Ramps Up September Output: Maruti Suzuki's production in September 2025 rose 26% year-on-year to 201,915 units, up from 159,743 units in September 2024. This increase was driven by higher output of compact models like Baleno, Celerio, Dzire, and Swift, which collectively saw production rise to 93,301 units.

Wockhardt Eyes U.S. Launch For Zaynich: The pharma firm has applied for US FDA approval for its new antibiotic, aiming for a FY27 debut in the U.S. market. Phase III trials showed a 96.8% cure rate for complicated urinary tract infections, outperforming Meropenem. Compassionate use has already saved over 50 lives in the U.S. and India.

Kidults Drive Jellycat’s Global Toy Boom: British toy brand Jellycat, beloved by Gen Z and adult collectors alike, more than doubled its profit in 2024. Revenue rose 66% to £333 million ($449 million), while pre-tax profit jumped to £139 million from £67 million the prior year. The company sells its soft toys in 8,000 stores across 80 countries, including high-end retailers like Selfridges in London and Galeries Lafayette in Paris. Popular items range from the £18 Bashful Beige Bunny to the £275 Amuseables Nordic Spruce Christmas Tree. Accessories such as bag charms and handbags are also seeing rising demand.

Nostalgia And Kidult Appeal: Adults are increasingly buying toys for comfort and nostalgia, a trend dubbed “kidults.” Viral items like the $30 Labubu doll have fueled social media frenzy, with 2.1 million TikTok followers and 20 million posts under #jellycathaul. The phenomenon taps into the joy economy, offering a sense of escapism amid global uncertainty. Interactive pop-ups, such as Jellycat Fish & Chips in Selfridges, create shareable experiences that drive sales. Blind-box collectibles and limited editions further fuel the thrill of discovery, attracting collectors willing to pay premium prices. Beyond plush toys, the broader toy market benefits from AI and AR integration, STEM-focused educational toys, and commercial sales to schools.

Market Outlook: The global toy industry is expected to reach $203.1 billion by 2034. Jellycat’s success illustrates the growing overlap between childhood play, adult collecting, and lifestyle-driven consumer trends.

Barry Callebaut Struggles Amid Cocoa Price Surge: The world's largest bulk chocolate maker, Barry Callebaut, is struggling—over the past two years, the company's share price has nearly halved, primarily due to escalating cocoa prices, increased financing costs, and a recent leadership shakeup.

Brazil Eyes Top Spot In Robusta Coffee Production: Brazil is rapidly increasing its robusta coffee production, aiming to surpass Vietnam as the world's top producer. The crop's resilience to heat, drought, and disease makes it an attractive option amid climate challenges. With significant irrigation infrastructure and available land, Brazil is projected to produce 24.7 million 60-kg bags in 2025, up from 19 million in 2020.  

Trump Proposes Rebate Checks: President Donald Trump is considering distributing $1,000–$2,000 rebate checks to Americans, funded by the substantial tariff revenues collected since April. He emphasized using these funds to reduce the national debt, which currently stands at $37 trillion. Trump projects annual tariff revenues could exceed $1 trillion.

Bezos Warns Of AI Hype, Sees Long-Term Benefits: Jeff Bezos cautioned that the current surge in artificial intelligence investments resembles an "industrial bubble," driven by speculative enthusiasm. However, he believes AI will ultimately deliver substantial societal benefits, particularly in sectors like healthcare and education by enhancing efficiency and accessibility.

Looming Market Correction, says Goldman Sachs CEO: David Solomon, CEO of Goldman Sachs, cautioned that a market correction is imminent, citing concerns over high valuations and tightening monetary policy. He emphasized the need for investors to prepare for increased volatility and potential declines in stock prices.  

Oracle & Silver Lake to Take Over TikTok US: A consortium including Oracle and Silver Lake is set to acquire approximately 50% of TikTok's U.S. operations. The agreement aims to address national security concerns by reducing ByteDance's stake to under 20%, in compliance with U.S. regulations and is expected to be finalized soon.

Diddy Gets Jail: Sean “Diddy” Combs was sentenced to more than four years in prison and a $500,000 fine for transporting people to engage in prostitution, after being acquitted of sex trafficking and racketeering. The judge cited “massive” evidence and praised victims’ testimony, while Combs apologized and his legal team signaled an appeal.

Asahi Faces Beer Shortage: A cyberattack on Asahi Group has disrupted operations across Japan, leading to shortages of its popular Super Dry beer and other beverages. Since Monday, the company has suspended order processing, shipping, and call center functions.

Thai Baht Defies Economic Lul: Despite Thailand's economic challenges and a 19% U.S. tariff on its exports, the Thai baht has strengthened against the dollar. The appreciation is partly due to increased demand for gold as a safe haven, with the baht's rise prompting authorities to consider measures like taxing gold trades to stabilize the currency.

Indonesia Probes Radioactive Spill In Industrial Zone: Indonesia is urgently assessing the extent of radioactive contamination at the Modern Cikande Industrial Estate near Jakarta, following the detection of Cesium-137 in multiple locations. The contamination was initially discovered in a shrimp shipment to the U.S. in August, leading to widespread scans across the industrial zone.

THAT’S ALL FOR TODAY!

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