Miscellaneous
It's Monday, February 24th, 2025. This is Nelson John, let's get started. IndoBevs Bets Big on Innovation IndoBevs, the maker of Bro Code wine coolers, aims to double its revenue to ₹700 crore by FY26. The company is banking on innovation, launching a herbal liqueur, Bonga Bonga, made with 40 herbs and botanicals, along with new whisky brands. IndoBevs, which started as a distributor in 2007, now has 15 in-house brands and exports to the UAE. It’s expanding whisky offerings with Enso, a Japanese whisky bottled locally, and Wingman, a premium blended malt launching in March 2025. With India’s alcohol market growing at 3.5% annually, IndoBevs is ramping up production, eyeing 2.5 million cases in sales by FY27. Buffett’s Record Cash Pile Sparks Speculation Warren Buffett’s Berkshire Hathaway hit a record $334.2 billion in cash reserves by 2024, marking 10 straight quarters of growth. While some wonder if Buffett is struggling to find good deals, he remains patient, selling stocks like Apple amid high valuations. The firm has also paused stock buybacks, letting its cash earn billions in interest. Some see this as preparation for Greg Abel’s succession, but shareholders remain confident, hoping for a major investment. Buffett reassured investors that equities remain the firm’s priority, even as Berkshire’s publicly traded holdings dropped from $354 billion to $272 billion last year, while its private businesses gained value. Agentic AI: The Next Big Bet for Indian VCs Indian venture capitalists are betting on Agentic AI, a self-learning technology that automates tasks with minimal human input. Unlike generative AI, which needs human prompts, Agentic AI adapts independently, making it attractive for industries like healthcare and finance. Startups like Innovaccer, CoRover.ai, and Atomicwork are leading the charge, backed by investors like Accel and Peak XV. The market is projected to grow from $5.1 billion today to $47.1 billion by 2030. While concerns remain over AI errors limiting adoption, businesses are increasingly shifting budgets toward automation, making AI agents a potential game-changer in enterprise operations. Indian Bank CEO’s Bold Shift to MSMEs One month into his tenure, Indian Bank CEO Binod Kumar is refocusing the lender’s strategy—expanding MSME loans while scaling back personal lending. He aims to increase MSME loans from 17% to 20% of the bank’s ₹5.2 trillion loan book in the next 2-3 years, boosting overall yield, which stood at 8.92% in Q3. While agriculture and retail loans have traditionally dominated, MSME loan growth picked up to 8.2% in Q3 from 7% a year earlier, while personal loan growth plunged 14%. The bank is prioritizing home and auto loans, with auto lending surging 48% YoY. Analysts see this as a smart risk-management move, reflected in Indian Bank’s improved net NPA ratio of 0.21%. Kumar projects 11-13% credit growth in FY25, with a continued push toward high-yielding MSME loans. India’s Green Hydrogen Ambitions India is well-positioned to lead in green hydrogen, but high production costs remain a challenge. Sushil Purohit, CEO of Gentari, says round-the-clock renewable power is key to making hydrogen competitive. With costs currently at $5/kg, adoption has been slow, despite government incentives. However, Gentari sees massive potential, given India’s abundant renewable resources and policy support. The company is developing 200 kilotonnes per annum of green hydrogen projects and holds a stake in AM Green, which aims to produce 5 million tonnes of green ammonia annually by 2030. With 6 GW of renewable energy capacity in India, Gentari is also setting up a 650 MW round-the-clock green power project to support ammonia production. As costs drop, India’s hydrogen economy could take off, reshaping industries like steel, refining, and shipping.