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TECHNOLOGY

Your Phone is Listening: How Apps Are Using Your Conversations for Targeted Ads

Key Insights:

• Active Listening is a new technology that analyses real-time data by listening to ambient conversations

• Users unknowingly consent to monitoring by accepting terms or updates without reading the fine print.

• Greater regulation and transparency in tech and marketing are urgently needed to prevent intrusive surveillance

The Story:

Marketing firms are using a new advanced technology, active listening, to deliver targeted ads, raising concerns about smartphone privacy. Although tech companies like Google and Apple have consistently denied that their devices listen to users without consent, data collection technologies are more invasive than commonly understood. Smartphones use microphones, voice recognition, and data analytics to monitor user behaviour subtly, often without explicit user awareness. These technologies do not necessarily record conversations directly but can analyse speech patterns, voice commands, and other data sources such as location and app usage. This information helps create detailed user profiles, which advertisers use to tailor ads more precisely. Permissions granted to apps, often overlooked by users, can allow access to personal data that feeds into this advertising ecosystem.

The blurred lines between active listening and data collection without explicit consent pose significant privacy concerns. Users are broadly unaware of how much data is being collected and used against their interests, making the need for better awareness and stricter regulation of app permissions and data usage urgent.

SPORTS

Etihad Airways signs record duration sponsorship deal with Mumbai City FC

Key Insights:

• Etihad Airways signing a multi-year deal with Mumbai City FC is the longest in Indian football history.

• Etihad is also celebrating 20 years of flying to India.

• The airline views India as an important market as it is also increasing its flight operations.

The Story:

Etihad Airways, celebrating 20 years of flying to India, has signed a multi-year deal to become the Official Front Shirt Sponsor for Mumbai City FC, starting from the 2024-25 season. This record-breaking sponsorship in Indian football highlights Etihad's commitment to the Indian market, which remains strategically important for the airline.

Etihad's logo will feature on Mumbai City FC’s match shirts and training kits. The partnership strengthens Mumbai City FC's position as a top football club in India. Additionally, Etihad is introducing its iconic A380 aircraft on the Mumbai-Abu Dhabi route for a four-month period. The airline currently operates 175 flights per week between Abu Dhabi and 11 destinations across India, with four daily flights to Mumbai.

BFSI

General Insurance stake sale: Govt likely to earn Rs 4,700 crore from 6.8% divestment in GIC Re

Key Insights:

• The Indian government will sell a 6.8% stake in GIC Re via an offer-for-sale at ₹395 per share, offering a 6% discount.

• The stake sale is set to raise around ₹4,700 crore, boosting the government's annual disinvestment fund.

• Discounted shares draw investors and support the government's disinvestment goals.

The Story:

The Indian government is set to sell a 6.8% stake in General Insurance Corporation of India (GIC Re) through an offer-for-sale (OFS) mechanism. The shares are priced at ₹395 each, representing a 6% discount compared to the closing price on Tuesday. This strategic move is anticipated to raise approximately ₹4,700 crore, contributing significantly to the government's disinvestment target for the financial year. The sale aligns with the government's broader strategy to reduce its stakes in public sector enterprises and generate revenue through disinvestment. By offering the shares at a discount, the government aims to attract investors and ensure the successful sale of its stake in GIC Re. The funds raised from this disinvestment will support the government's fiscal objectives, including funding public projects and reducing the fiscal deficit.

This stake sale in GIC Re is part of the government's ongoing efforts to meet its disinvestment targets, which are crucial for maintaining fiscal discipline. This move also reflects the government's commitment to enhancing transparency and efficiency in managing PSU assets. Investors are showing keen interest in GIC Re due to its strong market position and potential for growth in the insurance sector, making this OFS an attractive opportunity in the current financial landscape.

FMCG

What explains Dabur and Jubilant's big money fizz for Coca Cola?

Key Insights:

• Dabur and Jubilant bidding up to USD1.4 billion for a 40% stake in HCCB

• Amid the FMCG slowdown, bottled soft drinks saw a 19% rise in household reach and consumption.

• A stake in HCCB is a strategic move, capitalizing on increased dining out, quick commerce, and rural retail growth.

The Story:

High valuations and significant investor interest in Coca-Cola India's bottling arm, Hindustan Coca-Cola Beverages (HCCB), are driven by a surge in demand for packaged soft drinks. The Burmans of Dabur and the Bhartias of Jubilant Group are bidding up to USD 1.4 billion for a 40% stake, valuing HCCB at USD 3.21-3.61 billion. Despite a general slowdown in the fast-moving consumer goods (FMCG) sector, soft drinks have grown robustly. The average Indian household's bottled soft drink consumption has risen sharply, with annual penetration exceeding 50% and a 19% increase in household reach over the past year.

This growth is attributed to factors such as increased dining out, quick commerce, and rising retail stocking in rural areas, driven further by heat waves. NielsenIQ reports that soft drinks grew 9.2% by volume in Q2, twice the overall FMCG sector's growth. Statista forecasts a 12% annual increase in non-alcoholic soft drink consumption through 2027. For investors, the sector's resilience and expansion prospects make HCCB a lucrative opportunity, aligning well with their existing food and beverage industry portfolios.

HEALTHCARE

Natco Pharma acquires 40 million shares in eGenesis Inc

Key Insights:

• Natco Pharma's Canadian subsidiary invests USD 8 million to acquire 40 million shares in biotech leader eGenesis Inc

• eGenesis performed the first FDA–approved porcine kidney transplant, showing xenotransplantation's potential in organ failure treatment.

• This alliance could potentially bring xenotransplantation technology to India.

The Story:

Natco Pharma Ltd, an Indian multinational pharmaceutical company, has strategically invested USD 8 million to acquire 40 million shares in eGenesis Inc. through its Canadian subsidiary. This is a significant step by Natco towards expanding its presence in the healthcare domain by investing in a pioneering biotechnology company in the field of xenotransplantation. This investment by Natco's subsidiary aligns the company with cutting-edge technology that aims to develop human-compatible organs through genetic engineering, addressing the global transplant shortage. eGenesis's unique Genome Engineering and Production platform stands out as a groundbreaking technology that addresses cross-species molecular incompatibilities and viral risks, making it a vital tool in the fight against organ shortages.

Natco's involvement with eGenesis broadens its scope and positions the company to potentially lead the nascent xenotransplantation sector in India, where it remains largely untapped. This strategic move gives Natco Pharma a first-mover advantage in India’s transplantation field, which could revolutionize the treatment of organ failure in the country. By supporting eGenesis, Natco is set to be at the forefront of this transformative medical technology, potentially reducing mortality and bringing innovative therapies to market in the near future.

Auto

Charging Ahead: How FAME-3 is Set to Revolutionize India’s EV Landscape

Key Insights:

• The government will launch the FAME-3 scheme in 1-2 months, replacing EMPS 2024 in India.

• FAME-3 will enhance charging infrastructure and support new vehicle segments.

• The scheme aims to make India a global EV leader by improving the supply chain and fostering innovation.

The Story:

The Indian government is gearing up to electrify the roads like never before with the launch of FAME-3, the next big step in its ambitious EV drive. This new phase will soon replace the current EMPS 2024 scheme, bringing in some exciting upgrades. The focus? Building a robust network of charging stations and expanding support for more electric vehicles make it easier than ever for people to make the switch to electric.

FAME-3 isn’t just about getting more EVs on the road; it’s about supercharging the entire ecosystem. The scheme will spark greater demand for EVs by tackling the charging infrastructure gap, fuelling innovation across the sector. Economically, it’s set to cut down on oil imports, boost the trade balance, and create jobs by ramping up domestic EV manufacturing. As traditional automakers feel the heat, new opportunities will open up, positioning India as a major player in the global EV game.

Anything Interesting

GST Council meeting: E-invoice mandate may soon cover B2C transactions

Key Insights:

• The GST Council may extend e-invoicing to B2C transactions to curb tax evasion and boost compliance.

• A voluntary pilot in select sectors may test B2C e-invoicing with state collaboration.

The Story:

E-invoicing in India is primarily mandated for B2B transactions under the GST framework. E-invoicing in the B2C (business-to-consumer) segment involves issuing electronic invoices directly to consumers for goods or services. Unlike B2B transactions, where e-invoicing is used for tax compliance and input tax credit, B2C e-invoicing aims to ensure accurate tax reporting, curb tax evasion, and provide consumers with verifiable digital invoices.

Among the anticipated advantages are environmental sustainability through reduced paper usage and lower transaction costs, which would enhance cost efficiency for businesses. This also opens the possibility for future benefits like GST refunds for foreign tourists.

Some large companies and e-commerce platforms in India already use digital invoicing systems, even in B2C transactions like Amazon India, Flipkart, Tata Cliq, etc. These companies adopt digital invoicing for better customer experience, operational efficiency, and future readiness for regulatory changes.