Avalon Consulting https://www.consultavalon.com/ Avalon Consulting is an Asia focused strategy consulting firm Thu, 22 Jan 2026 06:17:54 +0000 en-US hourly 1 https://wordpress.org/?v=6.9 https://www.consultavalon.com/wp-content/uploads/2025/08/favicon-consult-avalon-70x70.webp Avalon Consulting https://www.consultavalon.com/ 32 32 Isobutanol for Diesel Blending: A Practical View https://www.consultavalon.com/our-blog/isobutanol-for-diesel-blending-a-practical-view/ https://www.consultavalon.com/our-blog/isobutanol-for-diesel-blending-a-practical-view/#respond Wed, 21 Jan 2026 05:16:40 +0000 https://www.consultavalon.com/?p=5270 This blog explores isobutanol as a promising candidate for diesel blending in India, driven by the need to reduce crude imports and improve energy security. It highlights isobutanol’s superior blend...

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This blog explores isobutanol as a promising candidate for diesel blending in India, driven by the need to reduce crude imports and improve energy security. It highlights isobutanol’s superior blend stability versus ethanol/methanol, outlines capex-light production potential through retrofitting excess ethanol capacity, and assesses the viability gap requiring policy support. It concludes with adoption barriers across technology maturity, economics, regulation, and ecosystem readiness.

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.

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Budget 2026 Expectations: Key Policy Levers for Indian Pharma https://www.consultavalon.com/press-room/budget-2026-expectations-key-policy-levers-for-indian-pharma/ Wed, 14 Jan 2026 04:42:22 +0000 https://www.consultavalon.com/?p=5256 Vigneshkumar Dhandapani, Associate Vice President at Avalon Consulting, shared his views on Budget 2026 Expectations: Key Policy Levers for Indian Pharma, which was published in The Hindu BusinessLine and TICE....

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Vigneshkumar Dhandapani, Associate Vice President at Avalon Consulting, shared his views on Budget 2026 Expectations: Key Policy Levers for Indian Pharma, which was published in The Hindu BusinessLine and TICE.

He highlighted the need to raise healthcare spending to 2.5% of GDP in line with the National Health Policy, rationalise GST to address the inverted duty structure affecting MSMEs, expand the scope of the Pharma PLI to reduce API dependence on China, and revive the 200% weighted R&D deduction to strengthen innovation and long-term competitiveness in the Indian pharmaceutical industry.

Read Here: https://www.thehindubusinessline.com/markets/share-market-nifty-sensex-highlights-14th-january-2026/article70505277.ece

budget 2026 expectations

key policy levers for indian pharma

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Two-wheeler industry expects 6-9% growth in 2026 on GST cut, urban demand https://www.consultavalon.com/press-room/two-wheeler-industry-expects-6-9-growth-in-2026-on-gst-cut-urban-demand/ Sun, 11 Jan 2026 04:46:57 +0000 https://www.consultavalon.com/?p=5255 Subhabrata Sengupta, Partner at Avalon Consulting, shared his views on Two-Wheeler Industry Expects 6–9% Growth in 2026 on GST Cut, Urban Demand, which was published in Business Standard. He highlighted...

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Subhabrata Sengupta, Partner at Avalon Consulting, shared his views on Two-Wheeler Industry Expects 6–9% Growth in 2026 on GST Cut, Urban Demand, which was published in Business Standard.

He highlighted that the two-wheeler industry is expected to grow 6–8% in 2026, supported by improving urban demand and policy tailwinds, with electric vehicles continuing their steady expansion and EV penetration likely to reach around 7.5%.

Read Here: https://www.business-standard.com/

two-wheeler industry growth article

two-wheeler industry growth article

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Predictions 2026: Uncertainty and a Bit-Conned World https://www.consultavalon.com/insights/predictions-2026-uncertainty-and-a-bit-conned-world/ Thu, 08 Jan 2026 05:16:21 +0000 https://www.consultavalon.com/?p=5220 The post Predictions 2026: Uncertainty and a Bit-Conned World appeared first on Avalon Consulting.

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In Predictions 2026: Uncertainty and a Bit-Conned World, Raj Nair presents his 19th annual global outlook, examining the economic, geopolitical, technological, and social forces shaping the year ahead. While the world economy has shown resilience despite trade tensions, tariffs, wars, and policy shocks, 2026 is set to be marked by heightened fragmentation, rising uncertainty, and declining trust—both in institutions and in everyday life.

The paper analyses key themes including global growth prospects, US trade and tariff policies, the evolving role of the US dollar, the rise of non-USD trade mechanisms, cryptocurrencies, and capital flows across emerging and developed markets. It also explores sectoral opportunities in areas such as AI infrastructure, defence, energy, metals, and financial services, alongside risks from geopolitical conflict and climate change.

Beyond economics, the note highlights a deeper challenge: the growing anxiety and loss of social capital in societies worldwide, amplified by rapid technological change and disconnection from the physical world. The paper concludes with practical reflections on how individuals and organisations can navigate uncertainty without being “bit-conned” by speculation, misinformation, or false promises.

This perspective is essential reading for business leaders, investors, policymakers, and professionals seeking clarity—and balance—in an increasingly unpredictable world.

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PIN IT TO WIN IT: India’s Digital Address Revolution https://www.consultavalon.com/our-blog/pin-it-to-win-it-indias-digital-address-revolution/ https://www.consultavalon.com/our-blog/pin-it-to-win-it-indias-digital-address-revolution/#respond Sat, 27 Dec 2025 04:42:28 +0000 https://www.consultavalon.com/?p=5257 Utpal Kaushik & Vidushi Goel, Consultants at Avalon Consulting, co-authored their views on PIN IT TO WIN IT: India’s Digital Address Revolution, which was published in Express Computer. They highlighted...

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Utpal Kaushik & Vidushi Goel, Consultants at Avalon Consulting, co-authored their views on PIN IT TO WIN IT: India’s Digital Address Revolution, which was published in Express Computer.

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.

PIN IT TO WIN IT: India's Digital Address Revolution

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.

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Pet care is set to become India’s next FMCG battleground in 2026 https://www.consultavalon.com/press-room/pet-care-is-set-to-become-indias-next-fmcg-battleground-in-2026/ Fri, 26 Dec 2025 11:08:05 +0000 https://www.consultavalon.com/?p=5227 Santosh Sreedhar, Partner at Avalon Consulting, shared his views on Pet care is set to become India’s next FMCG battleground in 2026, which was published in Mint. He noted that...

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Santosh Sreedhar, Partner at Avalon Consulting, shared his views on Pet care is set to become India’s next FMCG battleground in 2026, which was published in Mint.

He noted that while Reliance will be an important player, its strength will come primarily from its retail network rather than the deep distribution capabilities built by incumbents like Mars and Drools. He also highlighted that growth is likely to be driven by the mid-premium segment, where affordability and quality intersect, while only a few D2C brands are expected to survive and eventually be absorbed into larger FMCG portfolios.

Read Here: https://www.livemint.com/

Pet care is set to become India’s next FMCG battleground in 2026

Pet care is set to become India’s next FMCG battleground in 2026

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From HUL to Nestlé, legacy FMCG firms recast their heritage brands for a premium era https://www.consultavalon.com/press-room/from-hul-to-nestle-legacy-fmcg-firms-recast-their-heritage-brands-for-a-premium-era/ Thu, 25 Dec 2025 11:07:58 +0000 https://www.consultavalon.com/?p=5226 Santosh Sreedhar, Partner at Avalon Consulting, shared his views on From HUL to Nestlé, legacy FMCG firms recast their heritage brands for a premium era, which was published in Storyboard18....

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Santosh Sreedhar, Partner at Avalon Consulting, shared his views on From HUL to Nestlé, legacy FMCG firms recast their heritage brands for a premium era, which was published in Storyboard18.

He highlighted that legacy brands are built on decades of quality and trust, which cannot be created overnight. He also noted that the opportunity today lies in adding relevance and aspiration on top of this strong foundation as brands reposition themselves for premium-seeking consumers.

Read Here: https://www.storyboard18.com

From HUL to Nestlé, legacy FMCG firms recast their heritage brands for a premium era

From HUL to Nestlé, legacy FMCG firms recast their heritage brands for a premium era

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Frozen foods pick up pace as ITC, Godrej scale up, Licious approaches $100 million revenue https://www.consultavalon.com/press-room/frozen-foods-pick-up-pace-as-itc-godrej-scale-up-licious-approaches-100-million-revenue/ Wed, 24 Dec 2025 12:26:12 +0000 https://www.consultavalon.com/?p=5213 Santosh Sreedhar, Partner at Avalon Consulting, shared his views on Frozen foods pick up pace as ITC, Godrej scale up, Licious approaches $100 million revenue, which was published in Storyboard18....

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Santosh Sreedhar, Partner at Avalon Consulting, shared his views on Frozen foods pick up pace as ITC, Godrej scale up, Licious approaches $100 million revenue, which was published in Storyboard18.

He highlighted that frozen foods in India could grow 1.5–2x faster than the broader packaged food industry over the next decade. He also noted that deeper expansion into Tier 2 and Tier 3 cities will depend on sustained investments in cold-chain infrastructure and last-mile delivery capabilities.

Read Here: https://www.storyboard18.com

Frozen foods pick up pace as ITC Godrej scale up

Licious approaches doller 100 million revenue

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€800 mn buy, insolvency, inventory spike… Bajaj Auto readies big overhaul at KTM https://www.consultavalon.com/press-room/e800-mn-buy-insolvency-inventory-spike-bajaj-auto-readies-big-overhaul-at-ktm/ Wed, 24 Dec 2025 12:26:00 +0000 https://www.consultavalon.com/?p=5212 Subhabrata Sengupta, Partner at Avalon Consulting, shared his views on €800 mn buy, insolvency, inventory spike… Bajaj Auto readies big overhaul at KTM, which was published in Mint. He noted...

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Subhabrata Sengupta, Partner at Avalon Consulting, shared his views on €800 mn buy, insolvency, inventory spike… Bajaj Auto readies big overhaul at KTM, which was published in Mint.

He noted that while cost reductions can provide short-term relief, a successful turnaround will ultimately depend on a deeper product-led assessment at KTM. He emphasized the need for a root-cause analysis to understand why certain premium motorcycle offerings did not resonate with consumers, adding that while demand for premium motorcycles exists, product-market fit will be the decisive factor for Bajaj Auto.

Read Here : https://www.livemint.com

€800 mn buy, insolvency, inventory spike

Bajaj Auto readies big overhaul at KTM

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Premium is the New Mass Market in Indian Retail https://www.consultavalon.com/our-blog/premium-is-the-new-mass-market-in-indian-retail/ https://www.consultavalon.com/our-blog/premium-is-the-new-mass-market-in-indian-retail/#respond Mon, 22 Dec 2025 16:33:20 +0000 https://www.consultavalon.com/?p=5203 Ketaki Nair, Associate Consultant at Avalon Consulting, authored her views on Premium Is the New Mass Market in Indian Retail. She highlighted how premiumisation is reshaping India’s retail landscape, driven...

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Ketaki Nair, Associate Consultant at Avalon Consulting, authored her views on Premium Is the New Mass Market in Indian Retail.

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

Driver Insight
GDP Growth ~ 6.3% YoY growth forecast for FY25-261
Expanding Middle Class 430 Mn FY25; projected to reach 1 Bn by 20502
Youth Dominance 66% of population under the age of 35 (over 808 Mn people)3
Digital Access 900 Mn+ internet users
E-commerce Surge Retail GMV projected to reach USD 170–190 Bn by 20305

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.

Premium is the New Mass Market in Indian Retail

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Quick Commerce: When Speed Becomes a Trojan Horse for Dark Patterns https://www.consultavalon.com/our-blog/quick-commerce-when-speed-becomes-a-trojan-horse-for-dark-patterns/ https://www.consultavalon.com/our-blog/quick-commerce-when-speed-becomes-a-trojan-horse-for-dark-patterns/#respond Fri, 19 Dec 2025 16:05:06 +0000 https://www.consultavalon.com/?p=5202 Shubham Sanghavi, Consultant, and Ketaki Nair, Associate Consultant at Avalon Consulting, authored their views on Quick Commerce: When Speed Becomes a Trojan Horse for Dark Patterns. They highlighted how India’s...

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Shubham Sanghavi, Consultant, and Ketaki Nair, Associate Consultant at Avalon Consulting, authored their views on Quick Commerce: When Speed Becomes a Trojan Horse for Dark Patterns.

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:

Type of Dark Pattern Examples in Q-commerce Platforms
Drip Pricing Zepto hides packaging charges in downloadable GST invoices
Basket Sneaking Blinkit and Swiggy Instamart add promotional items without user consent
Forced Action Zepto Pass requires manual checkbox to access advertised free delivery
Differential Pricing Zepto prices products higher for iPhone users than for Android users
Subscription Traps Wallet cash expires before usage; auto-renewals happen without consent
Confirm Shaming Pop-ups that guilt users with text like “I don’t like saving”

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:

Product Android Price (INR) iPhone Price (INR) Difference
Grapes (500g) 65 146 +124%
Capsicum 37 69 +86%
Four Apples (discounted) 106 156 +47%

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

Short-Term Gains Long-Term Risks
Increased conversions through urgency + upselling Consumer fatigue and loss of trust
Better monetization via hidden fees Regulatory crackdown + litigation risk
Personalized pricing to optimize margins Perception of discrimination → brand reputation damage

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.

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The Self-Healing Grid: AI as the Immune System of the Grid https://www.consultavalon.com/insights/the-self-healing-grid-ai-as-the-immune-system-of-the-grid/ Thu, 18 Dec 2025 18:30:52 +0000 https://www.consultavalon.com/?p=5183 The post The Self-Healing Grid: AI as the Immune System of the Grid appeared first on Avalon Consulting.

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The article examines how artificial intelligence can transform power grids into self-healing systems capable of managing the growing complexity of renewable integration, decentralised energy resources, climate volatility, and cyber threats. It highlights how AI-driven forecasting, predictive maintenance, and real-time optimisation enable grids to anticipate disruptions, respond faster than manual systems, and improve overall reliability. The piece also underscores the strategic importance of digital intelligence in strengthening grid resilience and ensuring that the global transition to clean energy remains stable, secure, and scalable.

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