Dear friends and well-wishers of Kampani Capital,

As we roll in to 2025, all I can say that a couple of months is a long time these days in Geopolitics as well as the Economic Lives of everyone. We seem to be heading into a new era of the world which will possibly become more inward looking(read Capitol Hill) and more un-flat than flat, with due respect to Thomas Friedman.

Some of the winter chill recently seen across the East Coast of the US is also showing signs of permeating into the Indian Economy, which was on a tear over the last 24 to 36 months. Signs of an urban slowdown are quite visible though we see it more like a marathon runner catching some rest after a breath-taking run for 10-15 km. Its not all gloom and doom though and we continue to see some good traction across sectors like Ecommerce and Air Travel – both buoyed by the Oct – Dec quarter. The big story coming out of India is the Rural Economy and the emergence of Tier 2-3 cities as the next frontier for investors and firms alike. Whether its electronics giants like Samsung, who are upping the ante in smaller cities or FMCG behemoths like Godrej or Dabur enhancing their focus on rural India, the rise of Bharat is clearly going to be the stories of 2025. An ode to the recently departed ex PM and legendary Economist of my school days Manmohan Singh who said “India lives in its villages….”

While equity-markets have corrected in the range of 10-12 % over the last few months, we get a sense from our discussions with family offices in India and overseas, that the India growth story continues to be firmly on the right path. Gen Next of these families is clearly putting some serious money on the table for the sunrise sectors like Consumer, QSR, E Comm and AI.

We would also like to thank all our Family Office / Fund clients, partners, stakeholders in Dubai and Abu Dhabi, who were the most gracious hosts during Sowmya’s visit to the Emirates earlier in the week. We look forward to seeing some of you in Bangalore in early February as we keep to our promise of taking the best of India to the world and bringing the best of the world to India.

Amar Kampani

CEO and Founder, Kampani Capital (a Division of Anak Consulting LLP)

27th Jan, 2025