Growth, Trends, and Challenges in India’s IT Industry 2024

Key Takeaways:

• The Indian technology industry's revenue (including hardware) is estimated to reach approximately $254 billion in FY2024, reflecting a year-on-year growth of 3.8%, with exports expected to approach $200 billion, growing at 3.3%.

• In FY 2023, India's IT outsourcing sector generated approximately $193 billion in export revenue, with IT services comprising more than half of this figure.



• Global Capability Centres: The rise of over 1,600 Global Capability Centres (GCCs) indicates India's growing ability to meet international tech demands.

According to Deloitte's Tech Trends 2024 report, India's IT industry is at the forefront of technological innovation. The projected revenue of $254 billion puts India in a position as a global leader in technology services. The report highlights significant advancements in areas such as spatial computing and generative AI, which are expected to drive future growth. Furthermore, the focus on developing global capability centres showcases India's strategic importance in catering to international tech needs.

According to Statista, in the financial year 2023, India generated approximately 193 billion U.S. dollars in export revenue, more than three times the size of its domestic market. Among various sub-sectors, IT services and IT-enabled services were the most sought-after in the international market. 

The Indian technology industry has demonstrated remarkable resilience despite facing macroeconomic and geopolitical challenges in FY2023. With an estimated revenue growth of 3.8% year-on-year for FY2024, the sector is looking to add over $9 billion compared to the previous year. Exports are expected to approach the $200 billion mark, growing at 3.3%, while the domestic technology sector is projected to exceed $54 billion with a growth rate of 5.9%. 

Additionally, Engineering Research and Development (ER&D) has emerged as a critical driver of growth, contributing 48%, or $2.88 billion, to the overall export revenue increase in FY2024. The rise of Global Capability Centres (GCCs), which currently number over 1,600 in India, further underscores the country's capability to meet international tech demands. By 2030, it is anticipated that the Indian GCC market will surpass $100 billion and employ over 4.5 million people across approximately 2,500 centres.

Key Takeaways from the Deal

• Lokesh Machines Ltd. has been granted a Form VII licence by the Department for Promotion of Industry and Internal Trade.

• This allows them to manufacture fixed/towed heavy machine guns with calibres from 12.7mm to 30mm.

• This licence expands Lokesh Machines' product portfolio, enabling them to produce advanced heavy weaponry.

Lokesh Machines Limited has announced that it has been granted a licence under the Arms Act, 1959, by the Department for Promotion of Industry and Internal Trade, Government of India, New Delhi. The Licensing Committee recommended the approval on September 18, 2024, enabling the company to manufacture fixed/towed heavy machine guns with calibres exceeding 12.7mm and up to 30mm.

The new licence, issued in Form VII, represents a significant expansion of Lokesh Machines' product offerings. It will allow the company to enter the advanced heavy weaponry market, enhancing its capabilities and product portfolio. The licence is valid subject to the provisions of the Arms Act, 1959, the Arms Rules, 2016, and any relevant notifications issued under these regulations.



About Lokesh Machines Limited

Established on December 17, 1983, Lokesh Machines Limited commenced commercial operations in 1985 in Hyderabad. The company operates from six locations across Hyderabad and Pune, and it is listed on both the BSE and NSE, having issued its IPO in 2007. Lokesh Machines exports CNC machines to several countries, including Japan, Germany, the Netherlands, Italy, Turkey, and Russia. Renowned for its expertise in Cam & Crank Borers, Fine Borers, and Finish Milling Machines, Lokesh Machines is a leader in the precision manufacturing sector.

Key Takeaways from the Acquisition and Investment

• Tilaknagar Industries acquires a 36.17% stake in Bartisans with a Rs 8 crore investment through primary and secondary acquisition.

• Bartisans founders retain 56.54% equity, while Tilaknagar Industries could further invest upon Bartisans meeting pre-agreed milestones.

• Bartisans, founded in 2021, has achieved Rs 3.5 crore revenue in FY24, with a product portfolio of 17 all-natural cocktail mixers.

Following this investment, Bartisans' founders, Jovita and Jordan Mascarenhas, will retain 56.54% ownership of the company, with the remaining shares allocated for an Employee Stock Ownership Plan (ESOP) pool. 

According to the company, the executed definitive arrangements will also grant Tilaknagar Industries the option to invest or acquire further shares according to a pre-agreed valuation, contingent on Bartisans meeting certain milestones.

The investment of Rs 8 crore will constitute Rs 3 crore as a primary investment for business expansion and marketing across India and will also consist of Rs 5 crore towards secondary acquisitions from existing shareholders. Tilaknagar Industries will also acquire the right to appoint a director on Bartisans' board. 

Ameya Deshpande, President, Strategy and Corporate Development, Tilaknagar Industries, said, “Bartisans has developed mixers with unique, in-house recipes that resonate with the Indian palate and add a twist for an extraordinary drinking experience. Its products evoke strong customer loyalty, a trait it shares with our leading brands, Mansion House Brandy and Courrier Napoleon Brandy.”

“Tilaknagar Industries' expertise in the alco-bev sector coupled with our vision for innovative cocktails experiences creates an exciting opportunity to scale Bartisans to new heights. We are confident that this partnership will elevate our brand and expand our reach across the market,” Jovita Mascarenhas, Co-Founder, Round the Cocktails Private Limited, said.

About Tilaknagar Industries Limited

Tilaknagar Industries Limited (TIL) ranks among India’s prominent manufacturers of Indian-Made Foreign Liquor (IMFL). Established in 1933 by Shri Mahadev L. Dahanukar as Maharashtra Sugar Mills, the company initially focused on producing sugar and related products. Under the leadership of Shri Amit Dahanukar, TI has grown to become India’s leading premium brandy manufacturer, with a portfolio that includes two 'Millionaire' brandy labels, Mansion House and Courrier Napoleon. Additionally, the company has expanded into whisky, rum, and gin, offering brands like Mansion House Whisky, Madira Rum, and Blue Lagoon Gin.

About Round The Cocktails Private Limited

Incorporated on 19 August 2021, Round The Cocktails Private Limited is classified as a non-government company and is registered with the Registrar of Companies (ROC) in Mumbai. The company operates in the beverage manufacturing industry, and the directors of Round The Cocktails Private Limited are Jovita Mascarenhas and Jordan Mascarenhas, who guide the company's operations and strategic direction.

About Bartisans 

Bartisans, founded in 2021, offers a range of 17 all-natural cocktail mixers. The company generated Rs 3.5 crore in revenue during FY24, selling across more than 70 Indian cities. Known for its premium pricing and strong unit economics, Bartisans benefits from high customer retention and operates across various distribution channels, including direct-to-consumer, modern retail, and quick commerce.