New budget & consumption, failed Nissan-Honda deal, Amul's protein bet💡
Some big bets got made and some fell off.
We are back with our new newsletter edition, which covers three important business topics in one go. Today, we’ll dive into the failed Honda-Nissan $60 billion merger, new budget’s impact on consumption, and Amul’s bold bet on protein.
Failed Nissan-Honda deal 🚙
First, some context.
Japan’s second and third-largest automakers, Honda and Nissan, have been in talks since last year to form a $60B automobile giant—one that could take on Tesla and Chinese EV players like BYD. The deal would have made the world’s third-biggest automaker and seemed logical, especially since Nissan has been struggling globally. But it collapsed due to some issues between the parties.
Why did the deal make sense?
Competition from China is heating up, and both Honda and Nissan are feeling the pressure. Adding to that, potential tariffs in the US—one of their key markets—could make things worse. Last year, China overtook Japan to become the world’s largest car exporter by units. For context, BYD, one of China’s hottest EV companies, is selling almost as many units globally as these legacy giants. Hence, partnership could be a good way to compete together in the EV market.
What it could have meant for India?
India’s auto market is one of the toughest to crack. Even legacy brands like Mitsubishi had to exit in 2020. If Honda and Nissan had merged, their combined market share in India would have been just 3.5%—far from a game-changer. To succeed, they would have needed a complete shift in pricing and positioning.Fact.
Tata is already leading the EV wave with models like the Punch, which follow a refined version of the failed Nano playbook—affordable, but bigger & aspirational.
Budget & consumption 💰
First, some context.
Last week, the government put a lot of tax memes to rest with a bold move: zero tax up to ₹12 LPA. With the standard deduction included, the tax-free income limit extends to ₹12.7 lakh. For context, the last revision in 2023 set this at ₹7 LPA. Plus, there were tweaks across slabs—those earning up to ₹25 lakh now get a tax benefit of up to ₹1.1 lakh.
How’s the current consumption state?
There have been clear signs of slowing private consumption expenditure in recent times. Even India’s quarterly economic growth has dipped to 5.4%—a 7-quarter low, down from 8.1% in the same period last year. This slowdown is visible in FMCG sales, which have been growing in single digits, indicating weaker consumer demand.
How will this budget help?
As per the government, this tax cut effectively puts ₹1 lakh crore back into the hands of taxpayers—roughly 10% of personal income tax collections in FY25. In simple terms, the government is betting on higher disposable income → More spending → More indirect tax revenue.
This is crucial because private consumption accounts for 56-60% of India’s GDP—the backbone of the economy. A slowdown in consumer spending can directly impact growth, making this tax cut a strategic move to stimulate demand. This push will large come from Gen Z and millennials, who prioritize spending on goods and experiences over traditional savings.
Amul’s protein bet 🥛
First, some context.
Amul, India’s biggest FMCG giant with ₹70,000 crore in revenue, isn’t just about milk anymore. The brand that dominates dairy now has its eyes on India’s ₹16,000 crore protein market. With 10+ SKUs in the protein category and many products being sold out, let’s deep dive into this big bet.
Why protein?
India has a protein crisis—and it's not just about low intake. Nearly 70% of “healthy” products have been found to contain toxins or misleading claims, creating a huge trust deficit. The awareness gap is just as big. India’s per capita protein consumption stands at almost half of the Western standards, with 73% of Indians being protein deficient.
What are the tailwinds?
More people are reading labels, questioning ingredients, and prioritizing health—a classic shift in Maslow’s hierarchy as India's middle class grows. With rising disposable income, health is getting mainstream, especially in Tier 1. We have seen a rise in many DTC brands like Whole Truth, Cosmix, MuscleBlaze, Pintola and so many more. Even a lot of acquisitions by big FMCG players have been seen already.
What is Amul’s right to win?
Vertical integration.
Processed whey protein comes from whey, a byproduct of cheese and paneer production. Amul, being India's largest cheese and paneer maker, already controls the biggest supply of raw materials—producing 20 lakh liters of liquid whey daily as a byproduct. Fact: Whey protein isn’t new for Amul. Back in 2009, they set up a plant in Khatraj, Gujarat, and went B2B, supplying whey powder to bakeries and industries. They were selling DM40 Whey—a demineralized version with 40% protein content.Distribution muscle.
Amul has one of the largest warehouse networks in India, with 400+ warehouses and a massive distribution network of over 10 lakh retailers. Yet, for now, they are going DTC-only for their protein products via their online store. The reason? They want users to buy with intent rather than picking up a product randomly at a retail outlet, risking a bad experience due to unfamiliar taste or improper use.Product depth.
Amul hasn’t just launched regular whey protein powder—it’s introducing SKUs already ingrained in daily consumption habits like lassi, buttermilk, and dahi. The strategy is clear: reduce friction, and increase adoption. By making protein a seamless part of existing diets, Amul is tapping into a 30-60 age group, an untapped market for most new-age startups.
That’s all for now. By the way, last month, we had a stellar lineup of leaders who taught GrowthX members specific nuances in product building, distribution, and strategy.
Akshatha (Head of Global Brand & Content Marketing, MoEngage)
Ankit (VP & Global Marketing Head, Rategain)
Ashwin Krishna (Founder & CGO, Growton)
Reetesh Pandey (Head of Marketing, Verloop.io)
Amit Thapliyal (Senior VP Marketing, PeopleStrong)
Udit Agarwal (VP & Global Marketing Head, Exotel)
If you work in a product or marketing role, come join us and make learning a core habit every week in this fast-moving tech world.
Also, we did an in-depth breakdown of Amul’s protein strategy on our YouTube channel.
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Thank you for this insight, really valuable.