Newsletter
Chip push, Meta befriends Google, and L&T's nuclear bet.
🗓 Morning, folks!
💡 Spotlight: Japan is planning to invest $68 billion dollars or 10 trillion Yen in a decade-long private investment plan in India. This will double Japan’s previous investment plan of 5 trillion Yen rolled out in 2022.
The announcement comes ahead of PM Modi’s visit to Tokyo on August 29, where the two sides will unveil new frameworks around economic security and AI partnerships.
The move is in line with New Delhi’s strategy to strengthen ties with its Eastern counterparts as it looks to ward off potential losses from America’s sanctions and cut down dependence on the West.
1 Big Thing: India doubles down on chips 🖥️
India’s IT ministry has cleared 23 chip design projects under its Design Linked Incentive scheme. The approvals back homegrown startups and MSMEs working on products ranging from surveillance cameras to energy meters.
What’s going on: to speed things up, 72 firms now get access to industry-grade Electronic Design Automation (EDA) tools, the software backbone for chip design.
Vervesemi’s big bet: Bengaluru-based Vervesemi Microelectronics (fabless, founded 2017) is one of the chosen firms. Its roadmap include:
- Integrated Circuits (ICs) for weighing scales & smart meters, sampling by end-2025
- Brushless DC Motor (BLDC) motor controllers for fans & appliances by 2026
- Motor-control chips for EVs, drones, and industrial automation by 2026
- Data acquisition chips for aerospace & avionics by 2026
Big picture: The Centre is pushing hard on semiconductors, with 10 projects worth ₹1.6 trillion approved across six states. Four new fabs have just been cleared, two in Odisha, one in Andhra Pradesh, and one in Punjab.
Backers include SiCSem, CDIL, 3D Glass Solutions, and ASIP Tech, collectively investing ~₹4,600 crore and creating 2,000+ skilled jobs.
2. Meta’s $10b cloud pact with Google 🤝
Meta has struck a massive deal with Google worth at least $10 billion for cloud computing services, as it ramps up its AI bets.
What’s going on: Meta will pay a minimum of $10 billion over six years to tap into Google Cloud’s servers and storage. The goal is to quickly scale up computing power to stay competitive in the race to roll out AI tools.
Worth noting: this is the first major cloud infrastructure agreement between Meta and Google. The search giant is the world’s No. 3 cloud provider, trailing behind Amazon’s AWS and Microsoft’s Azure.
What led to this deal: Meta already runs more than two dozen data centres and is building more, including a massive 4 million-square-foot facility in Louisiana. But those won’t be online for years. The Google tie-up gives Meta the computing power it needs now, as Zuckerberg aims to pack the most AI firepower per researcher.
Background: Google Cloud and Meta have crossed paths before but never at this scale. In 2023, Google Cloud integrated Meta’s open-source Llama AI models into Vertex AI, its developer platform, to let businesses build apps with Meta’s tech. Meta has also tinkered with smaller Google Cloud tools in the past, but this deal cements Google as a formal infrastructure partner.
While we are on deals, back home
R Systems International signed a ₹400 crore deal to acquire Novigo Solutions, sending its stock up 17% intraday before closing nearly 5% higher.
R Systems International is a digital product engineering and IT services company that helps businesses build, automate, and scale technology solutions. Meanwhile, Novigo helps companies build apps faster without heavy coding and automates routine business tasks using smart software.
Novigo’s management team will stay on in the merged entity to drive growth. For R Systems, the deal is about strengthening high-margin, AI-driven services.
The why: the acquisition brings Novigo’s UiPath Diamond-tier automation practice and Microsoft Copilot Centre of Excellence under R Systems’ wing, integrating with its OptimaAI Suite.
This synergy allows R Systems to take clients from model engineering to autonomous execution in one place. It also expands the company’s Middle East presence and adds delivery centres in Bengaluru and tier-2 hubs like Mangalore.
3. L&T in talks for global nuclear energy tie-ups 📝
L&T is in talks with global technology players and the Nuclear Power Corporation of India (NPCI) to set up new nuclear plants in the country.
The deets: the company is exploring collaborations with two kinds of partners including those that build large reactors of 1,000 MW and above, and companies in the small modular reactor (SMR) space that can power data centres and meet clean energy needs.
Why it matters: the timing is crucial. Around 32 countries have pledged to triple their nuclear capacity over the next 10-20 years. Many existing plants are already 40-50 years old, meaning upgrades and services are in demand. With only a few global players in this space, L&T sees a massive business opportunity both at home and abroad.
Background: earlier this year, L&T tied up with US-based Holtec, which has approval to bring its cost-effective SMR technology to India. The two have already bid together for a project in Abu Dhabi, and talks are moving to the next level.
Zoom out: India is targeting a nuclear leap from today’s 8.9 GW to 100 GW by 2047. Finance Minister Nirmala Sitharaman even set a 100 GW goal in her Budget speech, with amendments to India’s nuclear laws expected soon to allow private firms into power generation.
4. Lokesh Machines gets defence nod 🔫
Lokesh Machines hit the 10% upper circuit on Friday after the small-cap company received a five-year registration from the Defence Ministry’s Director General of Quality Assurance (DGQA). This certificate allows it to manufacture arms at its own facilities.
Company background: traditionally a maker of special purpose machines, auto components, and small arms, Lokesh has a market cap of just ₹447 crore. It has supplied to auto giants like M&M and Volvo Eicher and exports to over 14 countries. Since 2020, it has been expanding into defence and aerospace, including pilot CNC machine exports to the US.
Why it matters: the approval strengthens Lokesh’s push into defence manufacturing, potentially opening up a pipeline of new orders. It also ties into India’s broader push for self-reliance in defence, where even smaller firms are expected to play key roles in diversifying supply chains.
5. Enviro Infra Engineers zoomed 5% after news of ₹116 crore acquisition 🌇
Shares of Enviro Infra Engineers surged 5% after the company announced a successful acquisition of Vento Power for ₹116 crore.
What they do: the Delhi-based company provides sustainable water treatment solutions and constructs wastewater treatment plants. While Vento Power is setting up a 40MW solar project in Odisha’s Bolangir district.
The why: the acquisition falls in line with Enviro's long-term strategy of expanding into the renewable energy sector, especially solar energy. With profits surging 23.3% from the previous year, and the company scoring high-ticket orders from government entities, the move will help the country gain a foothold in India’s fast-growing solar energy segment.
Zoom out: India recently surpassed Japan in solar power production. The government aims to achieve the target of 500 GW capacity by 2030. For companies like Enviro, the opportunity is ripe to make the most of this push.
6. India is quietly turning into the world’s hospital 💉
In 2024, more than 6.4 lakh foreigners came to India for treatment.
Patients from Bangladesh, Iraq, even the US and UK are filling Indian hospitals because the maths is simple: world-class care at a fraction of the cost.
So much so that private hospital chains now track global oil prices. When revenues rise in West Asia, more patients fly in. When they dip, the beds stay empty.
But here’s the dilemma: while India builds a $13-billion medical tourism industry, millions of Indians still find private healthcare out of reach.
Can India truly be the world’s hospital without healing its own first?
7. Stocks that kept us interested 🚀
1. GHV Infra secures ₹2,000 crore housing project 💰
GHV Infra Projects has received a Letter of Intent from Valor Estate worth ₹2,000 crore. The stock slipped in trade despite the large order win.
GHV Infra Projects provides infrastructure solutions across transport, energy, environment, social, and industrial sectors, covering engineering, construction, commissioning, and operations.
What’s happening: the letter of intent is to serve as the engineering, procurement and construction partner for execution of the PAP & Police Housing Project at Mumbai’s Malad East. The project is expected to be completed within 60 months from commencement.
At ₹2,000 crore, this is one of the company’s largest orders, boosting its order book and revenue visibility. The deal strengthens GHV Infra’s long-term pipeline and cements its position in India’s infrastructure space.
2. Texmaco Rail wins ₹103 crore logistics wagon contract 📦
Texmaco Rail & Engineering has bagged an order worth ₹103.1 crore, lifting its stock nearly 2% in trade.
The deets: the order comes from Leap Grain Rail Logistics, a South India based company, for the supply of specially designed BCBFG wagons. These are covered bogie freight wagons used to transport bulk goods securely, ideal for agro-logistics, protecting cargo from rain, dust, and other damage during transit.
The order strengthens Texmaco’s role in India’s push for efficient, indigenous rolling stock under the Aatmanirbhar Bharat and Make-in-India initiatives.
Background: Texmaco has been on a winning streak. In recent months, it has secured multiple orders from the Ministry of Railways, partnered with Rail Vikas Nigam Limited for integrated infra projects, and bagged export contracts in Africa and Southeast Asia, including a ₹535 crore deal with CAMALCO SA in Cameroon.
What else are we snackin’ 🍿
💰 Tata listing: Tata Capital is set to launch a massive $2 billion IPO before RBI’s September 30 deadline, making it one of India’s biggest financial sector listings.
🤖 OpenAI office: OpenAI will set up its first India office in New Delhi this year, having registered an entity and started building a local team.
🏏 Sponsorship shakeup: Dream11 has pulled out as Team India’s sponsor after the new gaming law, leaving BCCI hunting for a replacement ahead of the Asia Cup.
That’s a wrap! Don’t let the Monday blues get to you.
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