Karnataka woos swanky outsourcing jobs

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, November 21, 2024. This is Nelson John, let's get started.   As more people splurge on travel, the hospitality sector finds itself in a comfortable place. Dipti Sharma writes that several hotel-related IPOs are planned in the near future. Examples include Brigade Hotel Ventures, Schloss Bangalore, and Oyo. Strong travel demand and government initiatives have helped the sector bounce back from a disastrous pandemic period. Room occupancy rates are at near all-time highs, and the industry is likely to reach a total valuation of $475 billion by the end of the decade. Both vacation as well as business hubs are seeing an uptick in business, leading the charge for public listings.   VIP Industries is in talks with a global private equity firm for a stake sale. Sneha Shah reports that Advent International is looking to acquire a controlling stake in the the luggage maker. The promoter group, led by Dilip Piramal, has been looking to reduce its stake in the company for more than a year. Currently, VIP has a market value of more than ₹6,500 crore. The promoters are hoping for a premium of around 10 to 15% on top of that valuation. VIP has a 44% market share in the organise luggage sector, but faces stiff competition from up and coming brands.   Did you know that the Adani Group had a 5G license? That doesn't mean India's beleaguered telecom market is getting another player — large corporates buy spectrum for a variety of reasons. However, Gulveen Aulakh reports that the Group is looking to surrender its share of the spectrum it owns. It had paid ₹212 crore in the 2022 auctions for the spectrum, but maintained inactivity. Since there isn't a rollout, the government has been imposing penalties on Adani for failing to do so. Adani Enterprises had bought the spectrum via a subsidiary to develop a private 5G network at the company's facilities, but that hasn't materialised.   Until the early 2000s, outsourcing in India meant business process outsourcing (BPO) call centres. Today, the business has evolved, morphing into ‘global capability centres’ that serve high-end strategic and innovation needs of US-headquartered companies. India is still attractive because we have plenty of tech talent and relatively cheap real estate. The Karnataka government, sensing a long-term opportunity, has introduced an official GCC Policy. What is it and how will it help GCCs (and jobs) grow in India? Madhurima Nandy explains in today’s Mint Primer.     It hurts to lose ₹50. Imagine how difficult it would be to write off a whopping $500 million. But that's what Prosus, a tech investor, did after the Byju's debacle. Prosus was quick to lick its wounds as it secured a major victory with Swiggy listing publicly. Prosus has been prolific in India, securing deals worth more than $8 billion across 24 transactions. Sneha Shah and Ranjani Raghavan write that unlike traditional venture capital funds, Prosus uses its own balance sheet to invest in companies. This approach allows it to take a long-term approach without having to worry about securing quick, profitable exits. All companies are subject to market fluctuations, and between Byju's and Swiggy, Prosus knows it best. Learn more about your ad choices. Visit megaphone.fm/adchoices