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BENGALURU, Dec 19 - India's information technology firms are accepting tougher contract terms to win large deals from clients as they compete for fewer orders in an uncertain global economy, industry insiders and analysts say. The $245-billion sector, which gained immensely from the pandemic-induced boom in digital services, has struggled in recent quarters as clients slashed spending on discretionary projects amid inflationary pressures and recession fears. https://lnkd.in/dYC47B4f

BENGALURU, Dec 19 - India's information technology firms are accepting tougher contract terms to win large deals from clients as they compete for fewer orders in an uncertain global economy, industry insiders and analysts say. The $245-billion sector, which gained immensely from the pandemic-induced boom in digital services, has struggled in recent quarters as clients slashed spending on discretionary projects amid inflationary pressures and recession fears. https://lnkd.in/dStXVuj3

Telecom | Indus Towers - Chris Hoare Hot on the heels of the exit from India of AMT, the PE backers of Indus Towers are also selling, placing 7% of the company in the market. Read full story here: https://buff.ly/42x1SFa For more information on our #telecom #mobile product, and other Aletheia Capital research, please contact info@aletheia-capital.com #investments #advisory #ideas #fintech #InYourCorner

𝐀𝐬𝐡𝐰𝐢𝐧𝐢 𝐕𝐚𝐢𝐬𝐡𝐧𝐚𝐰 𝐬𝐚𝐲𝐬 𝐞𝐢𝐠𝐡𝐭 𝐥𝐚𝐫𝐠𝐞 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐟𝐮𝐧𝐝𝐬 𝐥𝐨𝐨𝐤𝐢𝐧𝐠 𝐭𝐨 𝐢𝐧𝐯𝐞𝐬𝐭 𝐢𝐧 𝐭𝐞𝐥𝐞𝐜𝐨𝐦 India will see a lot of investment and innovations in the coming years. “At least eight large investment firms have met me so far and they want to explore investments in the telecom sector in India. Because the market size is very large, technology acceptance is very high. The India stack is so widespread," said Ashwini Vaishnaw, Minister for Communications, Electronics & Information Technology. The minister foresees the emergence of new business models and technological advancements in the country in the years ahead. #market #investment #technology #digital #telecom 

In accordance with the Andhra Pradesh Reorganisation Act of 2014, Hyderabad's designation as the joint capital of Telangana and Andhra Pradesh has concluded. Effective June 2, 2024, Hyderabad will solely serve as the capital city of Telangana. This development marks the culmination of a ten-year period established during the bifurcation of Andhra Pradesh in 2014. While Hyderabad transitions to Telangana's capital, Andhra Pradesh continues to determine its permanent capital location. The separation has brought renewed focus to outstanding issues between the two states, including the division of assets and resources. Despite the conclusion of the joint capital arrangement, several issues related to the state division remain unresolved. MyGov India #Hyderabad #Telangana #NewCapital #Andrapradesh #India

Private Equity fund turns ~$235Mn into ~$900Mn in just ~3 yrs, betting on "Data Centers" theme/biz in India! How? India generates ~20% of global data but has just 3% of data center capacity. Data Center (DC) Capacity (MW) in year 2024 - ✓ USA: ~15,930 , ✓ China: ~3800, ✓ India: ~877 (expected to ~2x in next 3 yrs) Mumbai has ~50% of India's Data Centers. And, Maharashtra ~67%. Why? 1) Uninterrupted power supply in Mumbai 2) International sub-sea data cable landing sites Mumbai DCs consume ~400 MW of power, almost 10% of Mumbai's peak demand of 4000 MW. Another interesting fact, the energy required for "cooling" a DC makes up ~40% of the total energy consumed. To operate DCs sustainably "efficient cooling" is key. ✓ Recent HOT investments in India's DC #infra : - Microsoft signed an MoU for ₹3200 Cr investment in Pune DC at Davos - Amazon Web Services to invest ~₹2000 Cr in DC in Thane - Google is in advanced talks to acquire a 22.5-acre land parcel in Navi Mumbai for building its 1st-ever DC in India - Reliance is set to invest ₹1,000 Cr to build DCs along with Canadian investment firm Brookfield - Blackstone, world’s largest PE has plans to develop 600 MW capacity across 2 large hyperscale DCs in India. ✓ Lastly coming to that successful bet from year 2020, In July'20 Carlyle acquired ~25% stake in Airtel's DC business, Nxtra, at a ~$1.2 Bn valuation. Fast forward 3 years, the biz grew >2x. And at a modest ~20x EBITDA multiple.. Today 2024, value of their stake is a sweet ~4x! Insane. Your ideas on the 'Data Center mega-trend' in India? P.S. Pic on a pleasant weather day in Mumbai - Land of DC domination xD #India #business #investments #data #wealth #mumbai

🚀 Impressive Growth Alert! Private Equity fund transforms $235Mn into $900Mn in just 3 years, focusing on India's booming "Data Centers" sector! 📈 🇮🇳 Despite generating 20% of global data, India only holds 3% of data center capacity, presenting a lucrative opportunity for investors. With Mumbai housing half of India's data centers and Maharashtra accounting for 67%, factors like uninterrupted power supply and international sub-sea data cable landing sites make Mumbai a hotspot for data center investments. 💡 Did you know? The energy required for cooling a data center constitutes nearly 40% of total energy consumption. To ensure sustainability, efficient cooling mechanisms are essential. 🔥 Recent investments in India's data center infrastructure include Microsoft's ₹3200 Cr investment in Pune, Amazon Web Services' ₹2000 Cr investment in Thane, and Google's plans to build its first-ever data center in India in Navi Mumbai. 📊 Noteworthy Success Story: In July 2020, Carlyle acquired a 25% stake in Airtel's data center business, Nxtra, at a $1.2 Bn valuation. Fast forward to today, the business has more than doubled, with the value of Carlyle's stake soaring to an impressive 4x! 💭 What are your thoughts on the Data Center mega-trend in India? Share your insights below! 💬 #DataCenters #Investments #IndiaGrowth

Hyderabad is experiencing significant growth as a hub for Global Capability Centres (GCCs), particularly in the Banking, Financial Services, and Insurance (BFSI) sector. Several major international companies, including Goldman Sachs, Wells Fargo, JP Morgan, and HSBC, have established or expanded their GCCs in the city. Goldman Sachs, for instance, set up a new GCC and plans to recruit 2,500 people by 2023. Hyderabad's appeal lies in its strong infrastructure, access to a skilled workforce, and supportive government policies. The city accounted for a substantial share of office space leasing by GCCs, with 1.4 million square feet leased in just the first half of 2023. This growth is driven by sectors like technology, life sciences, and consulting services, which benefit from Hyderabad's talent pool and lower costs compared to other major cities. Overall, Hyderabad is solidifying its position as a leading destination for global companies looking to set up or expand their GCC operations, thanks to its favorable business environment and strategic initiatives by the Telangana state government. nasscom SSON SSON Research & Analytics Shared Services Leaders Asia Telangana State Innovation Cell WE Hub, A Government of Telangana Initiative

India is rapidly becoming a central hub for global capability centres (GCCs), with significant growth and development observed recently. In the first half of 2023, 18 new GCCs were established in India, demonstrating the country's appeal due to its skilled talent pool, cost-effective real estate, and supportive regulatory environment. This brings the total number of GCCs in India to 1,580, employing approximately 1.66 million people. The market for GCCs in India is projected to grow significantly, with expectations to reach 1,900 operational centres by 2025. This growth is driven by various factors, including the availability of skilled talent and competitive real estate costs. The expanding capacity of data centres in India is also enhancing the country's attractiveness as a location for these centres. Tier-I cities like Mumbai, Pune, Bengaluru, and Hyderabad are the primary hubs for these centres, while Tier-II cities are also seeing increased activity as established GCCs expand to these locations. The functions of these centres typically encompass engineering and R&D, IT, and business process management, reflecting a diverse range of operations that multinational companies are consolidating in India. For more details, you can refer to the articles from Business Standard [here](https://lnkd.in/dfT7-iew).

Telecom | Bharti Airtel - Chris Hoare Why are Bharti’s margins so high, and why are 65% EBITDA margins plausible? We show below why Bharti’s EBITDA margins are not as high as they appear. Firstly, India operates a Bill & Keep regime. Prior to this, interconnect was c. 15% of revenues. Since then, the impact would be lower but were interconnect to still be being charged the impact would be for reported margins to be several % lower. Similarly, because of the extent of tower sharing (and tower rents vs revenue and high interest rates), the effect of IFRS-16 is higher in India than elsewhere. When introduced margins rose by c. 11-12%. Thus, a reported margin of 55% in India is equivalent to 38- 39% elsewhere. We think this means that it is plausible that Bharti’s margins rise to 65% (equivalent to 45-50% elsewhere). Read full story here: https://buff.ly/3T4rtm1 For more information on our #telecom #mobile product, and other Aletheia Capital research, please contact info@aletheia-capital.com #investments #advisory #ideas #fintech #InYourCorner