Financial News Seen by Indians on 2023.10.20 — Google to Manufacture Smartphones in India

1. Nestlé India Ltd. announced on Thursday that domestic sales grew at a double-digit rate, driven by product mix, volume, and pricing. 'Our turnover crossed ₹50 billion for the first time in any quarter in the company’s history—a milestone for us.' Nestlé’s Q3 profit stood at ₹9.08 billion, versus analyst estimates of ₹7.99 billion. The company declared a second interim dividend of ₹140 per share. 2. Google to manufacture Pixel smartphones in India: Global tech giant Alphabet’s Google announced on Thursday that it has prioritized India as a key market and will begin local production of its flagship Pixel smartphone series in the country. As part of the ‘Make in India’ initiative, Google stated it will commence manufacturing of the Pixel 8 in India, with devices slated for launch in 2024. 3. Sundar Pichai, CEO of Google, said: 'We have shared our plans with Google to locally manufacture Pixel smartphones in India, and expect the first devices to launch in 2024. We are committed to being a trusted partner in India’s digital growth—thank you, Make in India. We’re also introducing more visual and locally generated AI experiences in Search—such as AI-powered overviews of essential government schemes, new search features tailored for small businesses, and easier access to formal credit via Google Pay.' Although Google announced local Pixel production in India, Union Minister Ashwini Vaishnaw urged the company to begin manufacturing its Tensor chipsets in India within three years. The Minister for Communications and IT also advised Google to launch premium flip phones in India at the earliest opportunity. Google is holding advanced negotiations with Indian electronics manufacturer Dixon Technologies and Bharat FIH—a subsidiary of Taiwan-based Foxconn—to produce its flagship Pixel 8 smartphones in India. On Thursday, Alphabet CEO Sundar Pichai announced that the company’s first India-made Pixel device will launch in early 2024, significantly advancing India’s ambition to become a global electronics manufacturing hub. 4. The Competition Commission of India (CCI) approved on Thursday the acquisition of shares in TBO Tek by General Atlantic Singapore TBO. The merger involves General Atlantic Singapore TBO acquiring a 7.5% stake in TBO Tek from TBO Korea Holdings and Augusta TBO (Singapore), jointly. Additionally, the regulator approved the acquirer’s purchase of an additional 7.5% stake in the company from the same sellers. 5. Emirates will introduce Premium Economy class on its flights between Mumbai and Bengaluru later this month. Facing intensifying competition, the airline aims to attract affluent consumers in the world’s most populous nation. Headquartered in Dubai, Emirates announced at a press conference in Mumbai on Thursday that its double-decker Airbus A380 aircraft will feature 56 beige Premium Economy seats in a 2-4-2 configuration on the main deck’s forward section. 6. Bharti Airtel—the second-largest telecom operator in India—and Ericsson announced in a joint statement on Thursday that they have successfully tested Ericsson’s pre-commercial RedCap software. This technology promises reduced complexity, extended device battery life, and higher data rates/speeds. The telecom operator added that the test was conducted in collaboration with Qualcomm Technologies using its 5G RedCap test module; the trial on a 5G TDD network marks RedCap’s first implementation and validation in India. 7. Driven by 5G rollout, Nokia’s net sales in India doubled to ₹567 million. Finnish telecom equipment manufacturer Nokia reported on Thursday that its net sales in the India region surged 102% year-on-year (121% at constant currency) to ₹567 million in Q3 2023—but cautioned that it is beginning to observe a sequential slowdown in the pace of 5G rollout across the country. 8. Nokia announced on Thursday that its Q3 sales declined by 20%, primarily due to slowing 5G equipment sales in markets such as North America. As part of a new cost-savings program, the company will cut up to 14,000 jobs. Its target is to save €800 million–€1.2 billion (US$842 million–$1.26 billion) by 2026 and achieve a long-term comparable operating margin of at least 14% by that year. 9. According to Walt Disney’s latest filing dated October 18, Star Sports India’s operating loss totaled $444 million for the nine-month period ended July 1. During this reporting period, Walt Disney’s Indian subsidiary generated $637 million in revenue from its sports business. 10. Mercedes-Benz India retained its position as the leader in India’s domestic luxury car market for the eighth consecutive year. For the fiscal year ended March 31, buoyed by strong demand for its premium models—those priced above ₹15 lakh—the company’s revenue crossed the ₹100-billion milestone, while its profit nearly doubled.

Sales Exceeding ¥160 Billion: Interpretation of Nestlé Purina’s 2025 Financial Report

When the Swiss franc’s appreciation shrank Nestlé’s revenue of CHF 89.49 billion by 2.0% on paper, the real story lay beneath the numbers. Organic growth reached 3.5%, and actual volume growth in the second half surged to 1.4%—marking the food giant’s definitive exit from a two-year ‘pricing dependency’ phase and its return to a volume-driven growth trajectory. What powered this pivotal shift was Purina PetCare, whose profitability stands at twice the group average. Amid economic cycles, cats and dogs have proven to be more reliable consumers than humans. Nestlé Group’s 2025 Financial Tone Nestlé S.A.’s Annual Report for fiscal year 2025—released in February 2026—marks a critical watershed in its global strategy: a transition from an ‘inflation-hedging mode’ to a ‘real-volume-driven mode’. In 2025, the global food and beverage industry operated under the shadow of complex geopolitical tensions, persistent commodity price volatility, and deepening consumer purchasing-power segmentation. Yet Nestlé, leveraging its diversified brand portfolio and deep supply-chain moat, charted a steady recovery path. According to the report, Nestlé Group achieved total sales of CHF 89.49 billion in 2025—down 2.0% nominally from CHF 91.35 billion in 2024—primarily due to a negative foreign-exchange impact of -5.7% caused by the Swiss franc’s sustained strength. However, organic growth (OG), excluding currency and M&A effects, stood at 3.5%, notably surpassing 2024’s 2.2% and signaling a steady restoration of underlying business vitality. Especially critical is the qualitative leap in growth composition. After enduring a two-year high-inflation pricing cycle, Nestlé successfully shifted its growth engine back toward Real Internal Growth (RIG). In 2025, group RIG stood at 0.8%, exhibiting a clear ‘low-in-the-first-half, high-in-the-second-half’ pattern: RIG was only 0.2% in H1 but accelerated to 1.4% in H2—with Q4 reaching a robust 1.3%. This accelerating trend indicates that Nestlé has progressively overcome the elasticity-suppressing effects of prior price hikes in end markets. Moreover, through its ‘Fuel for Growth’ program, the company delivered CHF 1.1 billion in cost savings—exceeding its annual target by over CHF 350 million—freeing up ample financial resources to raise marketing investment to 8.6% of sales and ensuring market-share rebound globally. On profitability, Nestlé’s underlying trading operating profit (UTOP) in 2025 amounted to CHF 14.39 billion, with a margin of 16.1%—a contraction of 110 basis points versus 2024. This margin compression stemmed mainly from pressure on gross margin (down 110 bps to 45.6%), reflecting significant input-cost inflation for core raw materials like coffee and cocoa, as well as increased brand-marketing investments aimed at regaining market share. Nonetheless, Nestlé performed strongly in free cash flow, recording CHF 9.2 billion—surpassing even cautious market expectations. Purina PetCare Business Within Nestlé’s current growth engines, the Purina PetCare business is not only the most resilient segment but also the cornerstone of group profitability.

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