Market & Strategic Implications

India’s recent interest in exploration of iso-butanol blending falls in line with the national biofuels policy of 2018. It can be directly linked to the country’s ambition to reduce crude oil imports and thus the vulnerability it faces from global market volatility, hence strengthening our energy security and providing with more resilience to global shocks.

India’s consumption of diesel stands at roughly 91.4 million tons as of FY 24-25, which constitutes about 39% of all petroleum products consumed. This large volume presents a substantial opportunity of substitution through blending of domestically produced alternative fuels. Although quite a few options are in the potential pipeline, iso-butanol has recently emerged as a strong candidate owing to its unique properties which provide for a better suitability for this initiative.

India’s diesel consumption for the current financial year upto September’25 stands at 45.8 MMT. The consumption pattern is distributed across sectors, ranging from transportation to power generation.

The Iso-butanol Differentiator

There are several factors which make isobutanol a much more suitable choice for diesel blending when compared to other potential alternatives such as ethanol and methanol. The key indicators are as follows:

• Isobutanol shows high miscibility and is able to form a homogeneous mixture with diesel without any phase separation, confirming its commercial readiness as a drop-in fuel additive. This addresses a major issue with blending Ethanol with diesel
• Reduced power for different blending ratios with higher ratios reflecting lower brake power. The average decreases in the break power is ~1.5% for 10% blended diesel fuel
• The mass of fuel consumed per unit of power produced (BSFC) showed an increase of ~3% for the same 10% blended diesel. This is equivalent to the ~7% drop in fuel efficiency for 20% Ethanol blended petrol.

 Retrofitting Excess Capacity Ethanol Plants for Isobutanol

Isobutanol has 2 major production routes: Chemical synthesis and biological fermentation. Biological fermentation is expected to gain prominence in India, following the path established by bio-based ethanol. Drawing similarity from the ethanol production process, the isobutanol setup can be achieved by minor changes to the already existing ethanol production process. This provides a unique opportunity for ethanol producers to diversify their products at a time when the ethanol capacity of the country stands at around 15-16 billion liters against a requirement of approximately 12 billion liters for E20 blending targets.

Global technology developers such as Gevo have developed proprietary processes that enable the retrofitting of existing ethanol plants to produce isobutanol. Compared to greenfield projects, such retrofits typically require significantly lower capital investment (Estimated $17 Mn for 68 Mn liters), as core infrastructure can be reused.

Viability Gap Funding

The prevailing market price of Isobutanol is slightly higher than the pre-tax price of diesel, creating a small viability gap that must be addressed through government support to enable an effective transition.* The isobutanol prices considered are based on chemical synthesis route
Drawing a parallel with the Ethanol Blending Program, it can be inferred that the post-blending retail price of diesel would remain unchanged, thereby preserving existing tax collections on diesel.

R&D and pilot projects

• Union Minister for Road Transport and Highways, Nitin Gadkari, stated in 2025 that the Automotive Research Association of India (ARAI) is conducting trials to evaluate a 10% isobutanol blend in diesel fuel
• Praj Industries, in partnership with Gevo Inc., is setting up a demonstration-scale fermentation module at a sugar mill in Maharashtra to produce isobutanol from molasses and sugarcane juice
• Kirloskar unveiled gensets powered by blended isobutanol, demonstrating the feasibility of diesel substitution in stationary equipment

These projects indicate the ongoing preparation from different industries to cater to the diesel isobutanol blending when the necessary policy and regulatory changes get introduced

Policy and regulatory support: Biofuels Mandates and SAF Adjacencies

Policy signals also provide a supportive backdrop:

• National Policy on Biofuels, 2018: Surplus biomass availability offers potential for production of bio-methanol & bio-butanol. An indicative target of 5% biodiesel blending is proposed by 2030
• GST rate for biodiesel supplied to the OMCs for blending with diesel was reduced from 12% to 5% from October 2021
• Isobutanol can also be used for processing SAF. India had embarked on a Sustainable Aviation Fuel (SAF) Feasibility Study. The targets are set at 1% blending by 2027, 2% by 2028 and 5% by 2030

Scale potential is real—but adoption hinges on economics, policy clarity, and ecosystem readiness

Isobutanol presents a credible pathway for diesel blending, offering better blend stability than ethanol or methanol and a relatively lower energy penalty. India’s excess ethanol capacity could potentially be repurposed through retrofits, enabling faster scale-up with lower capex than greenfield plants. However, wide-scale adoption will require overcoming key barriers. A parallel can be drawn with CBG, where real-world operating conditions have often delivered yields lower than theoretical assumptions, highlighting the importance of pilot-to-commercial learning loops before national scale-up.

The post Isobutanol for Diesel Blending: A Practical View appeared first on Avalon Consulting.

They highlighted how microdramas short, mobile-first storytelling formats are rapidly gaining traction by aligning with changing consumer attention spans and platform-driven consumption habits. The article explores how this format is expanding reach, opening new monetisation avenues, and reshaping content strategies for creators and brands in India’s digital media ecosystem.

Maggie takes two minutes, watching an entire episode of a series could take even less. Gone are the days when a single episode used to stretch between 30-60 minutes, today’s soaps are being reimagined for the mobile first engagement economy. A new wave of storytelling is shrinking them into bite-sized, cliffhanger driven snackable episodes.

Welcome to the world of microdrama or duǎnjù as they’re called in Chinese – a vertically formatted video series, usually 20 to 100 episodes long and designed for mobile first consumption. With each episode’s run time being one to three minutes – they fit perfectly into everyday moments like cooking, commuting to work, or scrolling before bed.

The appeal of the format rests on three key elements- serialized storytelling, cliffhangers and instant gratification. Together they make the perfect recipe to keep young audience particularly Gen-Z and millennials hooked to their mobile screens.

Across the globe this industry is expanding rapidly and is projected to grow at a CAGR of nearly 17% from $12 billion in 2025 and to $26 billion by 2030.

Exhibit 1: Global Micro-drama Monetization (Total Revenue in US$ Bil.)

Source: Media Partners Asia

China is currently dominating this market. In FY24 it produced more than 5,000 series, reaching over 662 million domestic viewers. These series generated ¥67 billion (about $9.4 billion) in revenue in FY25, surpassing the country’s traditional box office. On Kuaishou, one of the biggest short video platforms in China more than 270 million people watch microdramas daily. Of these 94 million are paid users binge-watching over 10 episodes daily- a 50% increase from last year.

Microdramas are gaining traction in the US as well. ReelShort, one of the leading microdrama apps, climbed the app stores ranking – at one point surpassing TikTok in downloads and even outranking Netflix on certain metrics.

India even though a little late to the trend, is catching up very quickly. As per reports, the microdrama industry in India is projected to reach $5 billion in the next five years.

Key drivers fuelling this growth

1. Shrinking attention span: According to a Microsoft study the average attention span of humans has dropped from 12 seconds in 2000 to just 8 seconds in 2025 now only a second shorter than that of a goldfish.
2. Smartphone usage: The number of smartphone users worldwide has reached 7.21 billion* which is about 90% of the global population. In India, however the smartphone penetration remains relatively low only 46% of people own a smartphone highlighting a huge untapped potential and growth opportunity.
3. Rising screen time: Globally people spend on an average 3 hours and 43 minutes on their smartphones each day. In India that figure increase to 4 hours and 5 minutes which is nearly half an hour longer than the global average.
4. Shortform content boom: In India YouTube Shorts have surpassed 1 trillion views while Instagram and Facebooks Reels are watched over 140 billion times each day suggesting a growing appetite for bite sized content

Note: The figure doesn’t mean that 90% of individuals own a smartphone. Instead, the number is inflated because many people use more than one device

Who are the key players in India?

Emerging startups such as Kuku TV, DashReels, Reel Saga, Flick TV, and Moj are the frontrunners, shaping the contours of India’s microdrama landscape.

Exhibit 2: Leading Microdrama Platforms in India

Legacy players are also catching up. Netflix is experimenting a mobile-only vertical feed that lets users scroll seamlessly through clips of its original titles. Amazon’s MX Player has introduced MX Fatafat, while Zee Studio has launched Bullet both dedicated verticals for microdrama.

Exhibit 3: Mainstream OTT Players Launching Microdrama Verticals in India

Following the passage of the Promotion and Regulation of Online Gaming Bill in August 2025, which banned real-money gaming apps, several platforms began pivoting to microdrama. Winzo launched Winzo TV, while Zupee introduced Zupee Studio both are dedicated verticals for short-form storytelling.

According to the FICCI–EY report, at least 20 apps, new or existing, are expected to enter this space in the coming years. Considering India’s diverse linguistic landscape, platforms offering regional-language content are likely to hold a strong competitive edge.

How is microdrama different from a conventional OTT serial?

Apart from the duration of an episode and the vertical format, the key differentiators are the production cost and turnaround time (TAT).

A typical OTT series costs ₹15–20 crores to produce and is usually backed by major production houses. In contrast, microdramas can be produced at a fraction of that cost, around ₹10–15 lakhs on an average, and in some cases for less than ₹50,000.

Lower cost of production enables greater experimentation and creative risk taking. With the growing use of AI in scripting, editing, and visual effects, barriers to entry are even lower, particularly for genres such as science fiction, medieval history, or mythology which traditionally demand higher production budgets.

Production duration is another differentiator. An OTT series takes on an average 9-12 months to produce, while microdramas are created in just 7-10 days, allowing content to be produced at a much lower cost.

Another major difference lies in casting. An OTT series often feature well known and recognizable actors, including Bollywood stars to draw audiences and justify large budgets. Microdramas on the other hand provide a platform for newcomers, theatre actors, social-media influencers, and emerging talent.

Business model of Microdrama platforms

In China and the US, the majority of microdrama platforms follow a freemium model where the first few episodes are free while later ones require payment to access. India presents a different challenge. As a price sensitive market with low average revenue per user (ARPU) freemium model may prove less effective. Despite this some platforms are experimenting with pay per episode formats while others are exploring a weekly or a monthly subscription.

Another approach could be the advertising-based video on demand (AVoD) model in which viewers watch ads in exchange for episodes. With this model businesses can achieve scale, but only up to a certain level and it will be difficult to grow beyond that point.

A more promising path may lie in a hybrid strategy borrowing from YouTube’s playbook: combining subscriptions with ad-supported revenues so users can pay for an ad-free experience while others remain on the free ad-based tier.

Conclusion

Even though microdramas are at a nascent stage currently, but they hold strong potential to disrupt the entertainment space. They are unlikely to replace OTT platforms or the traditional film industry, instead they will coexist while serving as an alternative to YouTube Shorts and Reels. Put simply, the stories may have shrunk, but the reach has expanded dramatically.

The post Decoding the Microdrama industry: Stories may have shrunk, but their reach has grown appeared first on Avalon Consulting.

They highlighted that while sustainability has become a popular positioning tool for Indian fashion brands, much of it remains superficial, with widespread greenwashing and limited real change across supply chains. The article points out that despite rising consumer interest and market growth, affordability challenges, weak policy support, limited awareness, and fast fashion dominance continue to hold back genuine sustainability.

There was a drop of 36% in the clothing utilization during 2000-2015 across the globe. In spite of this, the global apparel production saw a drastic increase and almost doubled during the same period. These statistics indicate that the industry values rapid production and speed over sustainability. In India, a lot of brands are using the sustainability tag as a differentiator as fast fashion boom. Question raises whether its just green washing or brands are truly sustainable in the real sense.

Source: EllenMcArthur Foundation

India’s fashion industry is growing rapidly, fuelled by e-commerce, higher disposable incomes, and a young, trend-conscious consumer base. But this growth has a clear environmental downside. As concerns about impact rise, sustainability has turned into a buzzword, with brands increasingly using terms like organic and eco-friendly in their marketing.

Though there are sincere efforts, many are superficial. There is widespread greenwashing, as evidenced by the fact that nearly 60% of sustainability claims made by Indian fashion brands are either unsubstantiated or deceptive. Sustainability is being used more and more as a strategic tool as brands look to stand out, but it’s usually more of a marketing term than a fundamental change in business practices.

A microcosm of larger consumer and economic trends can be seen in the Indian green fashion market. The market grew 2.8% annually to reach $1,507.2 million in 2024. According to forecasts, the market will be worth $2,084.8 million by 2029, representing a compound growth of 38.3% and a growing demand from consumers for sustainable products (Source: Globaldata).

Source: GlobalData

One startling finding is that 47.8% of the green fashion market is made up of men’s clothing, defying the widely held belief that sustainability is a demand that is primarily driven by women. In the meantime, India’s growing influence is reflected in its 22.3% share of the Asia-Pacific green fashion market.

Source: GlobalData

The Issue with “Sustainable” Buzzwords

The definition of sustainability is one of the most difficult issues.

Many times, it is only focussed on less water usage and greener raw materials. This can be misleading as sustainability needs to be at a holistic level and should also cover long term impact on the environment, end of life issues, labour rights, fair wages and factory and worker conditions.

Even worse, a lot of companies release purportedly “sustainable collections” without altering the location or method of production. Just a different name for the same factories and methods. It’s greenwashing, not transformation.

By selectively focusing on what is considered sustainable, businesses give the appearance of accountability while carrying on with their destructive practices. In addition to confusing customers, it thwarts sincere attempts to change the sector.

What’s Holding Real Sustainability Back?

• Affordability challenges: There is usually a markup on sustainable apparel which may be a challenge for the average consumer. Brands do this because at every step there is an additional cost (For. Eg. using organic materials increases the production cost)
• Sourcing sustainable materials remains a major challenge. The supply of eco-friendly fabrics and inputs is still limited, and demand is growing much faster than what the current value chain can support.
• Government support is minimal: Policy support is a major miss. There are no major initiatives or incentives encouraging the industry to go green.
• Fast fashion still dominates the Indian market. Most consumers are drawn to low-cost, trendy clothes, and meeting this demand depends heavily on chemical-intensive production — with more than 8,000 different chemicals used across the value chain. This process is far from sustainable
• A 2020 survey revealed that almost half of Indian consumers had little to no understanding of what sustainable fashion actually means.
• Limited accessibility is another hurdle. Sustainable brands today cater to a small, urban niche, mainly because of high costs, limited infrastructure, and the lack of affordable alternatives for the wider population

So even with growing interest, these roadblocks prevent sustainable fashion from transforming into a truly mainstream phenomenon in India.

What Brands Aren’t Telling You

When sustainability is often talked about, it should not only be about materials—it’s the entire supply chain, which includes:

• Scope 1: Emissions from factories or transport
• Scope 2: Energy consumed (electricity or steam) from external sources
• Scope 3: Everything else i.e., how sourcing, packaging, and delivery happen etc.

Brands avoid talking about the scope 2 and 3 emissions. They do not mention details on the treatment of factory workers, sustainability of their sourcing methods and partners and the products end of life use case.

It is essential to address all the layers of sustainability to truly make a difference.

For instance, our research on one such aspect, sourcing, showed that almost 50% of the imports in India in the category of Apparel and clothing is coming from Bangladesh (Source: Trademap Chapter 61 and 62). The primary driver for this is the competitive edge in manufacturing costs. Bangladesh has lower labour costs compared to India.

Leading brands like H&M, Zara, and GAP source heavily from Bangladesh. Reliance Retail, one of India’s largest retail chains is also an example (Source: Fashionating World)

Bangladesh’s competitive edge is largely built on the availability of a large, relatively inexpensive workforce. Studies show that the lower production costs often come with a hidden price – poor working conditions. In Bangladesh, many garment workers face low wages, safety risks, and very limited labour protection.

Hence these kind of practices across the value chain are common and more often are kept under wraps to exploit benefits coming from introducing “Sustainability” in campaigns.

The Way Forward

There are glimmers of change. A few Indian brands now use QR codes to show how a garment was made or run clothing take-back programs to recycle old items.

But real change will need more than just a few good brands. A few initial steps could be

• Support from the government through tax breaks, incentives and better infrastructure for proliferation of sustainable value chain
• Build awareness through authentic campaigns on social media and in educational institutions, supported by responsible advertising that encourages mindful choice
• Introduce clearer rules and accountability around using words like sustainable, eco-friendly, and green, so these terms truly reflect responsible practices

For sustainability to truly matter, it needs to move beyond being a trend it should become part of how the fashion industry works every day, at every level.

References

(GlobalData, LocalCircles Consumer Survey 2023, reports from McKinsey & Co., Indian Apparel Export Promotion Council, Business of Fashion sustainability index, and government sustainability guidelines.)

The post Sustainability in Indian Fashion: Differentiator or Mere Decoration? appeared first on Avalon Consulting.

They highlighted that widespread adoption and integration of DIGIPIN across services could streamline deliveries, digital KYC, land records, making addresses usable like other digital IDs.

Every time you order online, you would have found yourself giving directions like, “It’s the fourth house after the hospital, next to the building with the blue gate,” or gotten to the point of sharing your current location pin because the explanation for the address alone just doesn’t cut it. In India, addresses often fail to convey the full story; one has to rely on landmarks or even trees to be precise. Addresses are vague, inconsistent and in many cases, not even mapped properly on Google Maps. Whether it’s a quick commerce delivery, a courier, or a cab ride, reaching your doorstep usually needs a phone call, a landmark and a fair bit of luck.
It’s not just about the minor irritation of guiding a Zomato rider or Uber driver over the phone, India’s unstructured address system causes much deeper, systemic issues.

Nearly 30% of postal PIN codes are entered incorrectly from the user’s end and a typical “nearby” location in Indian parlance can be as far as 80 metres away. For urban couriers, online deliveries, or ride-hailing drivers navigating multiple stops per hour, this means lost time, extra fuel, fewer deliveries & the invaluable cost of emotional and mental struggle that the delivery all of which drive up cost. An insider at one of India’s largest food delivery app tells us that of the 1 million failed deliveries per month, the split of failures due to wrong addresses is nearly 10%, an estimated 20 million rupees lost.

The impact of this mess is substantial. According to estimates from researchers and industry leaders like Santanu Bhattacharya, former Head of Tech at Delhivery, in a 2018 research paper, he estimates that the lack of a good addressing system costs India $10-14B annually, or more than the budget of many small states like Goa, Sikkim, Tripura etc.

Let’s break that down:

• E-commerce: As India eyes a $500 billion e-commerce logistics market by 2026, failed or delayed deliveries due to address errors result in higher logistics costs and reverse logistics.
• Transportation: Ride-hailing apps lose productive minutes every hour as drivers loop around trying to find a location. That adds up to real money when scaled across thousands of drivers nationwide.
• Banking & Land Records: In rural India, property identification is a separate mess. Plot numbers like khasra, khatauni, or 7/12 extracts are not standardised across states. A single piece of land may show up with different identifiers on tax slips, land deeds and court papers. This makes it harder for banks to validate mortgages, slowing down rural credit and increasing the chance of fraud.

DIGIPIN is a nationwide geo-coded addressing system developed by the Department of Posts in collaboration with IIT Hyderabad. It divides India into approximately 4m x 4m grids and assigns each grid a unique 10-character alphanumeric code based on latitude and longitude coordinates.

The ability of DIGIPIN to function as a persistent, interoperable location identifier across India’s dispersed public and private networks is what gives it its real power. Unlike normal addresses, which depend on textual descriptions, a DIGIPIN condenses the geo-coordinates, administrative metadata and unique spatial identifiers into a 10-character alphanumeric string. Because of which, DIGIPIN is readable by machines, compatible with maps and unaffected by changes in naming conventions. When combined with systems like Aadhaar (identity), UPI (payments), ULPIN (land) and UPIC (property), DIGIPIN can enable seamless KYC validation, last-mile delivery automation, digital land titling and geographic analytics.

For instance, without sending out a field officer, a lending institution can utilize DIGIPIN to quickly confirm the existence, ownership and geolocation. Similarly, logistics platforms can map delivery clusters using DIGIPIN datasets, optimizing route planning based on hyper-local density rather than PIN code boundaries. In essence, DIGIPIN transforms an address into a digitally verifiable asset, anchoring identity and services to a fixed point in space – reliably, scalably and securely.

India is not the first country to face this challenge. Globally, several models offer interesting ideas:

• UK: Postcodes combined with house numbers pinpoint a location with almost surgical accuracy.
• What3Words: This UK startup divides the world into 3×3 metre grids, assigning three random words to each. It’s been adopted for logistics and emergency services in over 40 countries.
• Dubai: Introduced Makani numbers – 10-digit codes tied to precise building entrances, used across all government services.
• Japan: Uses a block system instead of street names but relies heavily on clear signage and citizen familiarity.

Each of these systems works because they are memorable, precise and scalable – qualities DIGIPIN must also strive for.

For DIGIPIN to become the default address format in India, it has to succeed across three critical dimensions:

• A 10-character code might be accurate, but is it memorable? For a busy delivery rider or a rural farmer, remembering and sharing it must be easier than reciting a landmark-heavy address.
• The code must be accepted across platforms – Aadhaar, land registries, GST, KYC forms, food delivery apps and banks. Without this ecosystem-level integration, it risks becoming just another number in a sea of bureaucratic codes.
• With over 350 million Indians still not using smartphones, any address system must be usable offline or via SMS, voice, or printed format. Otherwise, it risks excluding the very communities it aims to help.

If there’s one lesson from Aadhaar, UPI and India Stack, it’s this: build like a startup, scale like the state.

• Make DIGIPIN easy to generate, update and share – like a mobile number.
• Encourage private-public partnerships – let e-commerce and ride-hailing apps integrate the codes.
• Run awareness campaigns to drive mass adoption, especially in rural and semi-urban areas.
• Build interoperability across departments – so one address means the same thing to the bank, post office, land registry and the tax department.

DIGIPIN could be a game-changer – if implemented well. India’s digital revolution cannot afford to be built on vague addresses and vanishing landmarks. A reliable, scalable and user-friendly address system is not just a logistical improvement – it’s an enabler of economic growth, digital governance and social inclusion.

We’ve figured out payments (UPI), IDs (Aadhaar) and vaccination (CoWIN) at scale. Now it’s time we pin down addresses – and win the last-mile revolution.

The post PIN IT TO WIN IT: India’s Digital Address Revolution appeared first on Avalon Consulting.

She highlighted how premiumisation is reshaping India’s retail landscape, driven by rising incomes, aspirational consumption, and digital adoption across Tier 1 and Tier 2 markets. The article notes that premium and premium-plus segments especially in apparel and FMCG are redefining consumer expectations, with omnichannel presence, quality, and local relevance emerging as key growth enablers.

India’s retail sector is undergoing a structural transformation. While mass-market consumption continues to be the backbone of retail revenue, the real growth story is now being written at the top end. Premiumization is reshaping consumer preferences and retail strategies.

This shift is evident across categories – from apparel to dining to consumer electronics – due to a range of factors that have sharply increased both purchasing power (due to higher disposable incomes and a ready availability of consumer finance) and aspirational consumption, across both Tier 1 and Tier 2+ markets.  This is accentuated by the increasing digitisation of retail; high smartphone penetration and the expansion of digital platforms have made global brands and premium products more visible, accessible and appealing to Indian consumers.
Table 1. Growth Drivers of Premium Retail Products

The presence of global brands and premium products has amplified offline as well. Superior-grade malls, such as the Jio World Plaza and Galeries Lafayette, are growing ubiquitous across leading Indian cities. Over 70% of the new Grade A mall supply anticipated in India by 2027 will fall under the superior grade category, according to a report released by real estate consulting firm Cushman & Wakefield, with higher-end categories like jewellery, athleisure, etc. set to increase their share of occupancy to 40% over the next few years, from the current sub-10%6.

These phenomena reflect the growing trend of retail premiumisation in India – wherein consumers are demonstrating an increasing willingness to pay more for products with a higher perceived value. This is evident in a recent NielsonIQ report, which depicts the rapid growth of premium and luxury FMCG products. Premium brands in the sector have reached double-digit growth, almost twice of what has been achieved by their non-premium counterparts. Furthermore, this growth is mostly organic, as consumption value is growing at nearly twice the rate of price increase. The premium+ segment now accounts for around 27% of total FMCG sales and contributes a weighty 42% of the sector’s value growth7.

Retail premiumisation is not solely emerging as a niche luxury trend; instead, it is redefining the baseline expectations of the mass-market consumer across Indian markets.

Apparel has been significantly impacted by this wave of baseline retail premiumisation; growth is concentrated in the premium apparel segment, which combines quality, aspirational branding and access, factors that attract India’s growing consumer base of fashion-conscious youth with rising disposable incomes. This growth is visible in Tier 2 and Tier 3 cities as well, which are experiencing rapid HNI growth as well as greater demand for luxury residences, developments that herald a growing customer base for premium products.

Recent apparel entrants in the Indian market also reflect this trend; in the last 5 years or so, more than half of the brands launched have been premium+, such as Andamen, Bombay Shirt Company, etc., and several premium global brands have launched successfully, such as Ecco, Kylie Cosmetics, and Maje.

Two significant cases to take a deeper dive into are Uniqlo India and the homegrown brand Snitch:

Case Study 1 : Uniqlo India
Since entering India in 2019, Uniqlo has focused on offering global-standard quality at premium prices. Their strategy has focused on timeless, long-lasting designs, local adaptations (breathable fabrics, ethnic-fusion kurtas), omnichannel reach (17,000+ pin codes), and partial local sourcing (15%) – a strategy that has met with resounding success. In FY24, Uniqlo India surpassed INR 5 Bn and is set to hit the INR 10 Bn mark in FY25, expanding to new locations in Tier 1 and emerging cities8.

Case Study 2: Snitch

Snitch, a fast-growing and digital-first native menswear brand, exemplifies the rise of premium apparel in India. With higher price points, a focus on trends, and a fast inventory cycle, they have catered to India’s expanding young, style-conscious, and wealthier consumer base.

The brand’s move into upmarket mall locations points to an omnichannel strategy, aligning digital reach with elevated in-store experiences. Snitch’s FY24 revenue reached INR 2.5 Bn and the brand is eyeing double that revenue in FY259.

The success of these brands and the growth in demand for premium products across retail sectors in India suggests that brands must recalibrate their strategies around quality, access, and localized relevance to succeed in India’s increasingly pan-premium market.
Key takeaway for brands:

• Premium aspirations are no longer confined to the top tier; Tier 2 and Tier 3 cities have become home to rising number of HNIs and customers of premium retail. Entering these markets now is crucial for brands, as waiting for traditional maturity curves will mean losing first-mover advantage.

• A strong omnichannel presence is important for brands to offer an end-to-end premium retail experience – e-commerce product pages should emphasize craftsmanship, provenance, sustainability, not only SKU specs.
• The Indian market is ready for premium brands. A young, upwardly mobile consumer base, rising HNI counts, and a maturing premium retail ecosystem—from superior-grade malls to local sourcing and digital enablement—signal a clear readiness for premium brands. For players on the fence, now is the time to enter or expand.

The wave of premiumisation further foreshadows a significant opportunity for Indian enterprises. Beyond being a consumer base, India’s businesses could play a greater role in delivering inputs, components, and services to both global and domestic premium brands. The potential for India to deepen its role not just as a market, but as a value creator in the premium retail ecosystem, is worth exploring further—and will be the focus of an upcoming analysis.

India’s retail sectors are not bifurcating into a small luxury segment and a stagnant mass market. Instead, premiumization is reconfiguring demand, pricing and positioning across the retail value chain. Growth is being driven not just by income, but by aspiration, visibility, and access—trends growing strong beyond Tier 1 cities. Additionally, omnichannel strategies are becoming essential, blending digital convenience with curated offline experiences to meet rising expectations across touchpoints. These are strategies crucial to make use of, for both local and global brands, as India becomes a pivotal market for long-term, premium-led growth.

The post Premium is the New Mass Market in Indian Retail appeared first on Avalon Consulting.

They highlighted how India’s rapidly growing q-commerce sector is increasingly relying on dark patterns such as hidden fees, basket sneaking, and differential pricing to protect margins. The article explains how rising consumer awareness and tighter regulatory scrutiny are making transparency and ethical design critical for building long-term trust and sustainable growth in quick commerce.

Quick Commerce: When Speed Becomes a Trojan Horse for Dark Patterns

India’s quick commerce (q-commerce) market, ushered in by the Covid-19 lockdowns, has experienced meteoric growth in the last few years. Indian digital commerce ecosystem has been transformed by a growing dependency on the ease and convenience of grocery delivery under 10 minutes.

By 2024, q-commerce accounted for over two-thirds of all e-grocery orders and nearly 10% of total e-retail spending1, 2. Dominated by players like Zepto, Blinkit (Zomato), and Swiggy Instamart (brands which are also drawing significant investor attention with valuations climbing into billions of dollars), the sector is poised to grow over 40% annually until 2030. But this breakneck expansion comes with a growing undercurrent of concern: the widespread use of dark patterns—manipulative interface designs that steer users into unintended or excessive purchases.

These tactics are no longer just user experience quirks. Since November 2023, India’s Central Consumer Protection Authority (CCPA) has formally categorized them as violations of the Consumer Protection Act, underscoring the regulatory and reputational risks they now pose to the industry.

Dark Patterns as a Systemic Feature

The Indian government’s Guidelines for Prevention and Regulation of Dark Patterns (Nov 2023) defined dark patterns as deceptive interface designs that impair consumer autonomy. Quick commerce platforms have displayed a broad range of these tactics, including:

The Economics Behind the Patterns

Quick commerce platforms are under constant pressure to boost margins in a hypercompetitive, low-margin sector.
Consider the revenue race; Zepto, Blinkit, and Swiggy are poised to collectively reach approximately $1.5 billion in revenue by FY25, yet profitability remains elusive, with their collective burn rate reaching around $70 million per month3, 4, 5, 6. The number of monthly transacting users expanded by over 40% in 2024, and the average number of monthly orders per customer rose from 4.4 orders in 2021  to 6 orders in 2024, but margin optimization has relied on pricing opacity7.

The use of dark patterns has therefore become a form of algorithmic arbitrage, through which user data and behavioural psychology are leveraged to inflate cart values subtly without overtly raising listed prices. Quick commerce companies further exploit this by using advanced data analytics to implement differential pricing based on user profiles, purchasing patterns, and perceived willingness to pay

Erosion of Consumer Trust

At the heart of dark patterns lies a behavioural arbitrage, wherein platforms exploit user psychology to increase conversion. This is usually without the user’s full awareness, but evidence now suggests that this arbitrage is closing.

Consumer awareness is growing. Studies show that users feel deceived by unexpected charges and continue with purchases compelled by a sunk-cost bias, not by satisfaction. Additionally, consumer forums and online communities are increasingly bringing examples of such deceitful tactics to attention. A Reddit group dedicated to tracking Zepto’s interface practices gained nearly 10,000 members in just five months. Frequent complaints include hidden charges such as “Rain Fees” or “item handling costs,” and wallet incentives that are difficult or impossible to redeem.

Notably, consumers on iPhones consistently face higher pricing than Android users, which is a form of device-based price segmentation. In early 2025, a Zepto user observed the following product prices:

Though still within legal limits as long as prices stay under the MRP, this kind of price variation often feels unfair to users. It’s especially noticeable to Gen Z consumers—early tech adopters who are vocal online and often shape public opinion about quick commerce platforms. A recent report by ASCI and Parallel HQ found that nearly all of India’s top apps—52 out of 53—use some form of dark pattern, with quick commerce apps showing more than five per app on average.

These tactics don’t just hurt how brands are perceived—they also weaken user trust. In categories like groceries and personal care, where people shop often and can easily switch to a competitor, this damage can directly impact user loyalty. Companies relying on such methods to drive short-term growth risk losing long-term customer engagement.

Short Term Wins vs. Long Term Sustainability

While dark patterns may spike short-term unit economics, they weaken customer lifetime value (CLV), especially in premium or loyalty-driven segments. This is particularly dangerous in India’s e-retail space, where discretionary spending is returning post-COVID, and Tier-2 and 3 cities are now fuelling incremental growth.

Rising Regulatory Scrutiny

India’s regulators are becoming more active and firm in their approach. Since the release of new rules in late 2023, the CCPA has sent 11 official notices for using misleading design tactics, along with over 400 notices for unfair business practices more broadly. In January 2025, Union Minister Pralhad Joshi said that enforcement would grow stronger, especially during busy shopping seasons like festivals.

For platforms, dark patterns once offered a way to bridge thin margins with higher average revenue per user. But this rising scrutiny and regulatory risk compels platforms to reconsider their business models and their reliance on dark patterns. The value of transparent design and clear communication is growing, and competitive advantage is shifting from user exploitation to user empowerment.

The Trade-off of Growth vs Sustainability

Despite these challenges, the q-commerce opportunity remains substantial. In 2024, the sector’s GMV stood at approximately $6–7 billion and is expected to grow at over 40% annually through 2030. Still, growth in absolute numbers must be weighed against quality of growth. Platforms that continue to rely heavily on dark patterns may find themselves caught in a cycle of high churn and rising customer acquisition costs.

As platforms diversify beyond grocery into categories like apparel and electronics, consumers will expect more transparency and consistency. Interface manipulation that once seemed marginal may quickly become a core liability.

The more sustainable play lies not in hiding costs, manipulating defaults, or obscuring consent—but in making these elements front and centre. As users mature and regulators catch up, the new battleground in q-commerce may not be speed—but sincerity.

A Moment of Reckoning

Q-commerce’s promise—ultra-fast convenience—was supposed to reduce consumer friction. But when designed deceptively, speed becomes a Trojan Horse for manipulation. As platforms jostle for scale and profitability, Indian regulators and consumers are beginning to push back.

The industry’s next phase of evolution will not only be defined by logistics efficiency or capital investment, but by user trust and design ethics. Businesses that fail to adapt may find their fastest deliveries have also been the fastest path to reputational risk.

The post Quick Commerce: When Speed Becomes a Trojan Horse for Dark Patterns appeared first on Avalon Consulting.

The article explores how EPCs in India’s expanding chemical and infrastructure sectors can overcome persistent efficiency challenges through digital integration. It dives deep into the issues caused by data fragmentation from siloed tools across FEED, construction and operations stages, leading to data loss, rework and cost overruns.

Loading...

Taking too long?

Reload document

| Open in new tab

The post Enhancing EPC Efficiency from FEED to O&M Stages with Digital Twins appeared first on Avalon Consulting.

He highlighted how erratic monsoons, subdued commodity prices, distributor destocking, and aggressive pricing by Chinese players have led to revenue and margin pressures across leading Indian crop protection companies. The article also outlines how a strategic shift towards bio-products, specialty chemicals, advanced formulations, and tighter working capital management could help the industry rebuild margins and position itself for a sustainable recovery.

The Indian crop protection market has witnessed a downturn over the past two financial years. Leading players such as UPL and Bayer have faced significant price and margin depletion, raising concerns among shareholders. UPL’s revenue, especially, has nearly reduced by two-thirds from ~18,000 INR Crores to ~5,200 INR crores. This development serves as a bellwether for the major developments in the crop protection industry over the last two financial years. Other players such as Bayer, Rallis India, and Sharda Crop Chem were not spared and reported considerable pressure on their profitability as evidenced by the decline in the PBT margins. These downtrends ride on the back of several major developments in the global markets. Macroeconomic, environmental and competitive headwinds are collectively responsible for fundamentally altering the market dynamics of the Indian crop protection market.

The worsening of the Indian Crop Protection market has led many of the shareholders and CxOs to question the near-term future and possible turnaround scenarios. The slowdown has grappled all the players worldwide, domestic and International.

Therefore, a deeper understanding of the headwinds is key to understanding how to tackle them and the short and long-term strategies that can be developed and executed.

Major Headwinds impacting the industry

A confluence of major headwinds has impacted the prices and margins of the Indian crop protection market severely over the last two years.

Erratic Monsoon patterns and deficient rainfall is a key factor impacting the key agricultural regions in India. According to the Indian Agricultural Research Institute, the total rainfall in 2024 and 2023 (~1,100 mm) has been 5% less than the long-term rainfall average of India (~1,200 mm).

Crop yield has been primarily impacted, initiating a snowball effect on various other headwinds. The crop acreage has declined from ~3,300 Lakh hectares to ~3,300 lakh hectares from 2019 to 2024. The lacklustre rainfall has been the primary reason for reducing the crop acreage. Globally, El Nino has also had a disruptive effect on the reduction of crop yield. Consequently, the demand for agri commodities exports has also reduced.

Subdued commodity prices have compounded the problems, putting financial strain on the farmers. Therefore, many farmers have chosen to reduce their expenses on crop protection, triggering a domino effect on the value chain.

Destocking inventories by the distributors and retailers due to reduced demand from the farmersput immense pressure on the crop protection companies to sell their goods. Last resort actions, such as offering discounts and reducing prices, have impacted the margins of these crop protection companies.

Chinese firms flushing their finished goods at lower prices has further added to the margin woes of Indian crop protection firms. Chinese firms have aggressively entered the global market, competitively pricing their goods and forcing the Indian players to slash their prices.

Improvement in Volumes but erosion of prices

The crop protection companies have witnessed an improvement in the revenues owing to the recovery in the volumes sold but have been witnessing a reduction in the margin levels as evidenced by the tables below.

UPL has sighted distribution destocking, pricing decline in generics, and oversupply by Chinese production as key parameters for the reduction in revenues and margins.

Bayer has, however, indicated that the pressure on its margin has primarily been through the increase in the cost of goods sold, while it has maintained an increase in revenue by having a good portfolio mix.

However, companies such as PI Industries and Sumitomo have been faring well because of low exposure to generics such as glyphosates and export markets such as Latin America and North America.

The export markets have not fared much better either. Although the quantities exported have been increasing over time, the value has been reducing, indicating the growing presence of Chinese firms and price erosion, leading to pressure on the margins of the companies.

Strategic Outlook

Major Indian crop protection companies need to pivot and plan to regain the prices eroded and the margins lost. Indian companies are planning to increase the share of bio products and speciality chemicals to one-third of the total to improve the product portfolio differentiation and improve the product margin levels. UPL, for instance, is planning to leverage in-market R&D to produce advanced formulations and move up the value chain. Last but not least, Indian crop protection companies are planning to optimise their inventory and working capital to stabilise the pricing and position themselves for aggressive competition next season.

The post Headwinds in the Indian Crop Protection Market and Potential Green Offshoots appeared first on Avalon Consulting.

They highlighted that recurring global disruptions from geopolitical conflicts to pandemics are fundamentally reshaping consumer behavior, making shoppers more price-sensitive, value-driven, and inclined toward essential goods while reassessing premium purchases. The article explains that brands must respond by rebalancing portfolios, strengthening omnichannel presence, diversifying supply chains, and improving inventory and operational agility to withstand sudden shocks.

The global business landscape is increasingly characterized by unpredictability. From geopolitical conflicts like the recent India-Pakistan tensions and the ongoing Russia-Ukraine war, to global health crises such as the COVID-19 pandemic, force majeure situations are no longer rare occurrences but rather a recurring challenge for businesses worldwide. These events, often beyond human control, fundamentally alter market dynamics, consumer behavior, and operational realities. For brands, particularly those in the retail sector, navigating these turbulent waters requires more than just crisis management; it demands foresight, adaptability, and a profound understanding of evolving consumer needs and supply chain vulnerabilities. This article explores how brands can not only survive but thrive amidst such disruptions, and the role that creative agencies and partners have to play in the same.

Shifts in Consumer Behavior During Uncertainty

Force majeure events trigger significant shifts in consumer behavior. During periods of uncertainty, consumers tend to become more cautious and conservative in their spending. Price sensitivity increases, and there’s a discernible shift towards essential goods. The demand for mass-market essential products often spikes as consumers engage in hoarding behavior, seeking security in stockpiled necessities. Conversely, non-essential items and luxury goods face demand pressures as discretionary spending is curtailed, or delayed. Premium brands, especially those with readily available lower-priced alternatives, are particularly vulnerable as consumers prioritize value over brand prestige. However, this doesn’t mean an outright rejection of all premium products; rather, it signifies a re-evaluation of perceived value and a greater emphasis on utility and necessity. Beyond price, consumers also become more attuned to a brand’s societal role and ethical stance, especially in the context of the crisis situation, leading to a rising importance of purpose-led positioning.

How brands can be better prepared for the next Force Majeure situation

There are five ways in which brands can be better prepared for not only facing the next force majeure situation, but also to gain strategic advantage from such times.

• Product Portfolio Development: Having a wider product portfolio that consists of a mix of essentials and non-essentials can help to continue engaging with customers, and retaining toplines even in situations where demand disruptions arise.
• Omnichannel Strategy: An omnichannel approach ensures that businesses are not solely dependent on one channel and can leverage all operating channels to reach customers, whether through online sales, click-and-collect, or diversified delivery options.
• Supply Chain Diversification: Over-reliance on single-source suppliers or limited geographical regions proves disastrous during disruptions. Brands can actively diversifying their supplier base, exploring near-shoring or re-shoring options, and investing in localized production capabilities.
• Inventory Management: The pandemic highlighted the risks of just-in-time inventory systems, such as when supply disruptions in micro-processors affected the automotive industry worldwide. Brands with high risk of supply chain disruptions, should adopt a more balanced approach, incorporating strategic stockpiling of critical components or finished goods to buffer against sudden disruptions.
• Enhanced Agility: Setting up a product development and manufacturing back-end that is flexible and agile to switch between different product lines will help to take advantage of such situations by shifting focus on manufacturing those products whose demand spikes during such situations. For eg. the unprecedented speed at which pharma companies such as Pfizer and Moderna developed effective COVID-19 vaccines showcased remarkable agility and scientific prowess.
• Developing a purpose-led positioning: In times of crisis, consumers look beyond mere transactions; they seek reassurance, stability, and a sense of shared values. Consumers are increasingly willing to support brands that align with their values, even if it means paying a slight premium. The luxury fashion house Balenciaga made donations and actively used its platform to disseminate information about the Ukraine-Russia conflict, demonstrating a clear purpose-led positioning that resonated with a socially conscious audience.

Role of MR, Advertising, Media & PR Agencies during Crisis

Force Majeure situations are also testing times for creative Agencies and other partners involved in managing customer perception and demand generation for the Brand. When demand is subdued, Ad Agencies and MR partners have to play an important role to quickly understand consumer sentiments and help drive the Client’s crisis response. A change in mind-set is required in the creative team to switch focus from long-term brand-building campaigns to those that drive immediate consumer response while still being consistent with the brand image. This will often need quick decision-making, and hence the ability to manage various stakeholders at Client organisation to navigate the decision-making process will be important. The campaigns also have to be driven by an understanding of the changing media habits of consumers during the crisis period leading to use the right channels for communication where media planning agencies have a key role. While keeping focus on short-term marketing ROI, it is also the role of the Agencies to ensure that consumer responses are tracked closely so that business impact can be measured in real-time, and corrective actions can be taken immediately. It is also important for the Agencies to ensure that in the attempt to ride on current trends around crisis situation, the communication remains true to brand essence. For eg. taking sides during a war situation or campaigns that are insensitive to a tragic situation can backfire the brand. Such periods will also require Agencies to adapt rapidly to such situations so that they can continue to stay relevant for their clients.

Industry-wide cut in marketing budgets, paused retainer/ cancelled campaign were some of the common challenges faced by agencies in force-majeure situations such as the Covid 19 Pandemic. But the challenges also come with opportunities where the expectation from agencies change according to the customers changing orientations & needs. For e.g. the shift of focus from offline to online became a major pivot during COVID 19 pandemic where there was a large drop in retail spend which pushed companies to reallocate budgets to digital, social and commerce integrations which was in lines with the trend towards customer digital usage agencies.

To manage the disruptions due to such situations, agencies had to pivot their strategies and adapted to the changing market. For eg. Leo Burnett invented a new “0-3-6 Survival Strategy” as a short-term strategy for its clients to navigate through the Covid-19 challenges which gave a better purpose and direction for their employees, while also delivering value to their clients. Ogivly on the other hand, focused on crisis communications focusing on information & shifting to service led communication. Their “Steering Brands Through COVID-19” guidance became internal playbook material for many clients where the idea focused on shift to an inclusive engagement with customers and making sure that there’s an intersection between a brand’s purpose and an issue they can credibly step up to.

Agencies also focused on a more hyperlocal, personalized creatives to suffice the situational needs. E.g. Cadbury Celebrations in Diwali delivered region-wise tailored ads and gifted ad-spots to thousands of small retailers which targeted on combining brand empathy with hyperlocal media. PhonePe’s “Unstoppable India” style campaign focusing on message communication helped to lift brand sentiment during constrained markets, agencies paired national-tone creative with digital amplification to maintain category share even effecting the tight budgets.

Overall, these situations test the times and act as major pivots in reshaping the Client-agency environment. Flexible contract terms, changing customer needs, client expectations, stakeholder management approach, adaptation to changing market are few parameters over which this relationship is reshaped & a direction for further engagements is laid.

Conclusion

Force majeure situations, while disruptive, serve as powerful catalysts for innovation and strategic evolution. For brands, the ability to navigate these periods successfully hinges on a proactive and adaptive approach. By understanding shifts in consumer behavior, strategically responding across premium, mass, and value segments, embracing purpose-led positioning, and recalibrating supply chains and channel strategies, brands can transform moments of crisis into opportunities for growth and deeper connection with their stakeholders. The lessons from past disruptions, from the global conflicts of WWII to the recent pandemic, underscore a fundamental truth: resilience is not merely about weathering the storm, but about emerging stronger, more agile, and more relevant in a world where the sun doesn’t always shine. Creative Agencies and partners have an important role to help the client navigate such situations which requires them also to change the way they operate to deliver meaningful outcomes for their clients.

The post Make hay when the sun doesn’t shine appeared first on Avalon Consulting.

The article explores how India can navigate the evolving global trade landscape following the U.S. decision to impose steep reciprocal tariffs. With India facing some of the highest tariff rates – around 50% in key export sectors such as textiles, engineering goods, chemicals, and electronics. The authors analyze the direct and indirect impact on India’s economy.

On April 2, 2025, what is marked as the Liberation Day in the USA, President Donald J. Trump unveiled a new trade policy, imposing a blanket 10% tariff on all imports and additional reciprocal tariff on 180 countries including India, which was among the hardest hit, facing retaliatory tariffs of 26–27 percent, which later raised to 50%.

The Trump administration justified the moved to impose reciprocal tariffs by arguing that the US had long been exploited by the foreign countries through unfair trade practices.

Impact of US Tariffs on India’s Economy

Break-up of India’s Exports by Country, 2024 (USD Bn)

Source: Trademap

In 2024, India exported $81 billion worth of goods to the US which accounted for 20% of the total exports, making it one of the key trading partners for India. By comparison, the UAE which is the second largest export market for India accounted for just 8%.

Engineering goods, Gems & Jewellery, Chemicals, Textiles and Electrical goods are among the key commodities exported, together they made up $53.1 billion, accounting for about 60% of the India’s total shipment to the US.

With tariffs raising the consumer prices the demand for the final goods is expected to shrink as these goods tend to be highly elastic and thus particularly sensitive to price changes.

There will also be an Indirect impact from supply chain disruptions, which will further amplify the overall impact of the tariffs.

A decline in India’s participation in the global value chains (GVC) could make it less attractive to foreign investors and is likely to deter investment in the export-oriented sectors

Sector-wise Implications

Sectoral Breakdown of India’s Exports to the US, 2024 (USD Bn)

Source: Trademap

India exported $116.5 billion worth of engineering goods in FY25, making up 27% of the total exports. The US was the largest market with a 16%, more than twice that of the second largest at just 7%.

Infact among India’s top 9 export sectors by value, the US is the largest market for 7 sectors which underscores how heavily Indian exporters are dependent on the American market.

Tariff Competitiveness Across Sectors and Alternate Suppliers
Textiles

Source: PHDCCI Research Bureau Analysis

Chemicals: India primarily exports intermediate chemicals though much of this trade is in commoditized products with limited value addition

Electrical and Electronic Equipment: The sector remains heavily dependent on imported subcomponents, while Chinese manufacturers can absorb higher tariffs others are being squeezed between rising import costs and declining export competitiveness.

Source: PHDCCI Research Bureau Analysis

Engineering Goods: The sector is strongly export-dependent on the U.S. and B2B buyers are expected to shift toward suppliers from FTA partner countries.

Source: PHDCCI Research Bureau Analysis

Article of Steel: In addition to reciprocal tariffs steel imports are also subject to Section 232 duties which can exceed 50%.

Source: PHDCCI Research Bureau Analysis

Pharmaceutical Products: They are essential goods; their demand is inelastic and hardly changes with change in prices. The U.S. still depends heavily on India for these medicines and generic drugs are exempted from trade restrictions.

Source: PHDCCI Research Bureau Analysis

Indian Exporters can mitigate the impact of tariffs by:

1. Diversifying exports market by redirecting trade volumes from the US towards the emerging markets and leveraging on the recently concluded free trade agreement (FTA) with the UK, advancing talks with the EU and the reviving negotiations with the GCC
2. Prioritizing exports of value added and intermediate goods, particularly in areas where US demand is growing. These goods are generally subject to lower duties than finished goods, due to tariff-escalation patterns, which could help cushion the blow of tariff hikes
3. Lowering the costs of raw materials especially in labour and resource intensive sectors such as apparel, chemicals and electronics. This can be achieved by sourcing raw materials locally, reducing production waste, improving energy efficiency, investing in R&D and process technology and developing shared facilities

At the policy level the Indian government can respond by:

1. Negotiating product specific exemptions, by offering targeted deals such as zero for zero tariffs on steel and auto parts to shield the most vulnerable exports sectors. At the same time expanding production linked incentive could make India a more attractive destination for US manufacturers and bolster investment
2. Strengthening India’s role as a China+1 alternative, to attract Asian importers particularly from Vietnam or Philippines, offering them a way to sidestep higher regional tariffs they currently face
3. Shielding the robust services exports could help the country weather global trade tensions and prevent disruptions from spilling over into IT, GCCs and BPOs

India faces one of the highest tariff rates around 50% across multiple sectors which is likely to reduce demand for Indian goods in the US market. These products will become less competitive compared to domestically produced goods or imports from alternate suppliers such as Mexico, Bangladesh, and Vietnam. As a result, Indian exporters with significant exposure to the US will need to diversify their markets and focus on value added exports to maintain their global competitiveness

The post How India can Navigate Geo Political Situation on Import Tariffs appeared first on Avalon Consulting.

He highlights how Battery Energy Storage Systems (BESS) are emerging as the key enabler for managing renewable intermittency, strengthening grid reliability, and supporting the global shift toward clean energy. He outlines the major BESS integration models co-located, hybrid, and virtual power plants and discusses the barriers to large-scale adoption, including high upfront costs and regulatory gaps. He emphasizes that declining battery prices, viability gap funding, and urgent grid modernization will accelerate BESS deployment, making it central to the future of sustainable and resilient energy systems.

The global energy sector is going through a rapid transition driven by increasing demand, increasing share of renewables and their inherent intermittency posing serious challenge to grid stability and reliability. Battery Energy Storage Systems (BESS) has emerged as a leading enabler during this transition providing the flexibility, responsiveness, and resilience needed to balance fluctuating supply and demand.

Surging energy demand and increasing share of renewables is creating the need for energy storage systems

The global electricity demand has grown by a CAGR of 3% over the last 10 years with 2024 witnessing the highest growth at 4% (+1172TWh) compared to 2023. The growth was witnessed due to multiple reasons such as weather conditions, emerging drivers such as electric vehicles, data centers and heat pumps. In recent years, with increasing energy consumption demand, global regulations to reduce GHG emissions and efforts to lower carbon footprint across geographies is creating a need to invest in renewable sources of energy. According to International Energy Agency (IEA), the global investment in clean energy technology and infrastructure is projected to be two times the investment in fossil fuels. In 2025, out of an estimated investment of $3.3 trillion into the energy sector, up 2% against 2024, around $2,2 trillion will go to renewable and nuclear energy, double the amount going to oil, natural gas and coal.

Source: Yearly electricity data, Ember

Energy generation by fossil fuel contributed to 87% of the total energy generation however, as per IEA, the share of renewables in energy consumption is expected to reach 20% by 2030. These developments are propelling the demand for Battery Energy Storage Systems (BESS). BESS are technologies designed to store energy for extended periods, typically over 6-8 hours, to support grid stability and decarbonization. Battery storage is an essential enabler for renewable energy generation, supporting the alternative sources of energy to make a steady contribution to global energy requirements. BESS brings flexibility in deployment from small scale to large scale options and is integral to applications such as peak load balancing, utility optimization and backup power during outages. According to the report published by the IEA, global BESS rose 40GW in 2023, nearly doubling the total increase in capacity compared to 2022. Driven by decreasing battery costs and government support, global investments in battery storage grew by 76% in 2023, to $36 billion and is expected to reach $150 billion by 2030, total battery storage capacity reaching 760GW by 2030 from 86GW in 2023.

Battery Energy Storage Systems (BESS) offer the greatest potential and impact among the Long Duration Energy Storage technologies

Battery Energy Storage Systems (BESS) are crucial for modernizing the grid, reducing dependency on fossil fuel, enhancing grid stability by peak shaving, and addressing demand during periods of energy outage. BESS application is divided into three segments: front-of-the-meter (FTM), which includes utility-scale installations with storage capacity upwards of 10MWh, behind-the-meter (BTM) commercial and industrial installations, typically ranging from 30KWh to 10MWh, and BTM residential installations with storage capacity less than 30KWh. FTM utility-scale installations dominate the market with nearly 80% share. BESS technologies such as aqueous electrolyte flow batteries, metal anode batteries, and hybrid flow batteries offer a Round-Trip Efficiency (RTE) of 40-80% proving to be competitive technology among the other Long Duration Energy Storage (LDES) systems.

Integration models of Renewables and Battery Storage

The deployment of Battery Energy Storage Systems is key to effectively utilizing the technology to its full capacity. Globally various modes of deployment is practiced depending on the application for the BESS as under:

1. Co-located Systems: The BESS is physically located at the same site as the renewable energy generation asset such as wind, solar, etc. Each such co-located BESS operates independently and has its own interconnection with the grid for distribution of energy across applications
2. Hybrid Systems: The hybrid integration of battery storage enables the charging of the battery through a combination of renewable energy sources such as solar or wind which addresses the intermittent nature of renewable energy and is integrated into the central grid for addressing demand during peak hours
3. Virtual Power Plants: Renewable energy installations at residential or commercial application utilizes BESS as a standalone power distribution unit coordinated by software and dispatches electricity during intermittent supply of power from the grid

Source: Avalon Consulting Research & Analysis

Cracking the code to global BESS adoption

The sole cost of deploying a battery storage system at a grid-scale installation comes at a very high capex due to high upfront cost for Li-ion batteries which primarily dominate the market. Absence of clear regulations and provisions on ownership of storage assets and unclear revenue streams for the technology has limited the adoption of BESS on a global scale. BESS technology also relies on critical minerals such as lithium, cobalt, and nickel which face price volatility due to dependence on few geographies for supplies of these minerals. Moreover, complexity in integrating BESS to central grid adds to further cost of making the system robust and scalable.

However, the increasing need for energy and intermittent supply of renewable energy through sources such as solar, wind, biomass, etc. necessitates the need to store energy for reducing the load on the central power grid and addressing the depleting fossil fuel. Battery Storage Systems’ high RTE and energy density makes it a more scalable storage solution compared to other Long Duration Energy Storage (LDES) systems, and the adoption is expected to rise owing to the following factors:

1. Declining battery capital costs: BESS capital costs are projected to drop by 23% by 2030 due to advances in new battery technologies such as Na-ion and hybrid (li-Na). The Na-ion battery chemistry offers a high energy density in the range of 75 to 200Wh/kg and lower dependence on critical minerals with sodium being the 6^th most abundant mineral in the Earth’s crust and is easily available from sea sites, limestone mines, etc.
2. Viability Gap Funding (VGF): Countries across the globe are introducing budgetary support for providing financial assistance to battery storage projects. As on 2024, China is leading the BESS industry at an installed capacity of 215.5 GWh which contributes to 65% of the global BESS capacity, USA is trailing China with installed capacity of 82.1 GWh. Developing countries such as India has launched a VGF scheme with an initial outlay of INR 94 billion, including INR 37.6 billion in budgetary support and provide financial assistance of up to 40% of the capital expenditure for these projects. Such VGF scheme supports in deploying overall costs of the BESS
3. Grid modernization and decentralization: Globally, the development timeline of modern grid is five to seven times slower than renewable energy installations and as per IEA, a USD 14.3 trillion shortfall in global grid expansion and modernization is expected by 2050. However, with governments realizing the need to modernize and decentralize the grid to accommodate renewable energy and respond to increasing electricity needs would accelerate the modernization efforts, in effect leading to rise in BESS adoption

Battery Storage systems, although are more reliable in terms of energy efficiency, global large-scale deployments are heavily reliant on lowering the capital expenditure through various technological advancements and government financial support.

The post “Bridging the Renewable Gap:” BESS, the backbone for tomorrow’s energy systems appeared first on Avalon Consulting.

She examines how renewable energy and battery storage systems can address deep-rooted energy inequities by improving access, reliability, and affordability for underserved communities. Treesha highlights how BESS can democratize energy systems, strengthen rural electrification, and ensure fair distribution of benefits positioning it as a critical tool for achieving true energy justice in developing regions.

1. Introduction

Over 1.37 million people live in Koraput, a district in Odisha, India. In 2011, the Census of India showed only 40% of all households with electricity access in the district . A survey in 2019 recorded a significant improvement – 90% of the total population were electrified. Even then, power outages were significant, averaging only 8-10 hours per day in the mainly rural parts of the district. For these households (83% of Koraput’s total population and economically disadvantaged) energy costs (of electricity but also fuel for cooking) could represent 10-12% of their annual household income .

Electrification and energy are often hailed as a pillar of advancement for the human civilisation. At its core, energy today can be defined as the economic activity of generating power through fossil fuels (coal, petroleum etc.) and renewables (solar, wind and hydropower) and distributing it. A necessity that transcends geopolitical boundaries, energy access and reach can sometimes be the lynchpin for national prosperity. While, therefore, issues of electricity extraction, generation and control are critical, it is equally important to probe the notion of energy justice.

The story of Koraput is one like many towns and villages across the colloquial Global South. Energy injustice manifests in several ways, for instance, energy poverty refers to the continued lack of minimal and basic access to energy – for transportation, electricity and cooking. Energy insecurity refers to the unsafe and uncertain access to electricity. Finally, energy burden refers to bearing the financial strain of energy access. All three factors disproportionately hit economically disadvantaged and socially marginalised communities.

Over the years, developing nations specially made significant strides in improving energy equity. Concerted policy efforts first targeted comprehensive household grid connections. In 2005, the Rajiv Gandhi Grameen Yojana in India electrified 400,000 rural households across the nation .

Between 1994 and 2004, South Africa expanded energy access from 36% of the population to 66%, by strengthening public funding and government bodies to regulate the system. Mexico, Chile and Brazil invested significantly in public-private partnerships to install a cumulative 31.5 GW, investing USD 21 billion between 2002 and 2012 . As supply chains strengthened and heavy industries were domesticised, energy prices fell significantly at the turn of the new century.

2. Energy Justice and Renewable Energy

Despite these initiatives, energy was still heavily reliant on fossil fuel (focusing on LPG, natural gas and coal powered energy). Connected to prices of crude oil and petroleum, therefore, energy prices were volatile and spiked frequently between 2010-2020 (Figures 1 and 2). Power generation plants were also located such that the externalities of air, land and water pollution disproportionately affected marginalised communities.

Figures 1 and 2 : Crude price and Crude Price Volatility 1960-2024

The transition to renewable energy has, in part, alleviated many of the energy insecurity and burden issues as they traditionally manifested.

Developing countries made many strides in renewable energy. Africa on a whole doubled its renewables capacity between 2012 and 2020 to 596 GW, with solar energy being the fastest growing sector (recording 60% YoY growth in off-grid instalments between 2009 and 2019). Brazil leads renewables investments in Latin America with the entire region having amassed over 15 billion in annual renewables investment . In Asia, Japan and South Korea are making significant strides in green hydrogen. India nearly tripled its renewable energy capacity between 2014 and 2025. China has been doubling its solar and wind capacity every 2 years on average over the last 2 decades.

However, as the world transitioned to solar, wind and hydro power, new challenges in energy equity and justice. As countries favour development of energy efficiency, much of the work done in energy equity reverses . For many countries, renewable energy transition and energy reach have become goals at opposing ends. A case in point is that of Malawi, that installed 300 MW of coal-powered electricity, doubling national supply and protecting the country from an over-reliance on hydropower and susceptibility to outages from droughts. This action contrasted targets set for renewable energy provision for the nation with organisations like the World Bank .

Without the benefit of scale, solar and wind power generation and distribution is expensive to power. Similarly, dependence on wind and sunshine makes availability insecure. Lack of technology adoption makes availability scarce in under-developed regions.

As renewable energy begins powering more products and services – automotives, household and commercial electricity, as well as public offerings of education and healthcare, making renewable energy equitable today is more important than ever.

3. Energy Justice and BESS

Battery storage stores excess electrical energy generated by solar and wind sources as chemical energy. It can act as a store grid-to-grid or from source of generation to grid. It normally uses lithium-ion batteries for storage, but sodium-sulphur and flow-batteries are also being developed.

Battery Energy Storage Systems (BESS) addresses the problem of energy injustice by contributing to three major pillars – procedural justice, distributional justice and recognitional justice

A. Procedural Justice: Procedural justice refers to the ability of communities to have the power to make decisions about energy access and provision

BESS has the ability to democratise electricity systems unlike ever-before. Reducing distributional costs significantly and mobilising base generation assets, BESS can be offered to residents as an off-grid or local solution. This decentralization makes energy users “prosumers” (producers and managers) of their energy. In Australia, for example, a community battery storage program allows residents to collect data, have a board of representatives and make decisions on use and pricing. These collective ownership models also allow the communities to have a share in the revenue generated.

BESS also ensures data transparency, tracking real-time usage, distribution, emissions and pricing data.

B. Distributional Justice: Distributional justice refers to the ability for individuals to fairly divide benefits and burdens of energy generation and distribution. BESS, with its ability to store energy and access remote grids, is an effective solution under this pillar.
In Africa, for example, BESS are combined with microgrids – small energy systems that operate independently from main electricity grids – to reach remote, rural regions. It also allows these communities to avoid power instability and surges, allowing these regions to avail cost savings and clean, stable supply like their urban, well-off counterparts. As of 2023, there are 3,000+ microgrids a BESS installed in the sub-Saharan region.

C. Recognitional Justice: Recognitional justice refers to acknowledging and respecting the diverse experiences of communities and their historical experiences

By ensuring that the decision-making is decentralized at community levels, BESS can ensure that cultural context is accommodated in provision. For indigenous communities historically marginalised, for example, land rights and local governance structures can be respected.
Recognitional justice can also look like reparations by way of easier access to public services like education and healthcare – uninterrupted power supplies to local schools and hospitals, as well as cost saving.
BESS can reduce the energy burden on vulnerable communities by reducing peak charges, and generation once infrastructure is in place.

4. Conclusion

Significant advances have been made in the proliferation of battery storage systems in developing countries. However, much work is still to be done in making renewable energy equitable world-wide. Ensuring this will need an examination of how BESS can be modelled to country/culture-specific advantages and constraints. It will also be important to consider other solutions that can be paired with BESS to improve energy equity. As the world readies itself for this large-scale energy transition, Technological and policy strides made for equitable distribution today will go a long way tomorrow.

The post Securing Energy Justice with Integration of Renewables and Battery Storage appeared first on Avalon Consulting.