Somerset on healthtech’s investment opportunity; Preserving Chettinad’s jewellery legacy

Hello,

This week is set to be a test of strength for India’s IPO market. 

Tata Capital Ltd. and LG Electronics India Ltd. will begin trading in Mumbai over the next couple of days after they concluded two of the nation’s biggest initial public offerings this year.

The surge in activity in recent weeks is fueling optimism that proceeds from new Indian listings in 2025 could even exceed last year’s record haul of almost $21 billion.

Meanwhile, the triple threat of tariffs, surging debt, and an AI bubble is set to dominate this week’s gathering of finance ministers and central bankers arriving in Washington for the International Monetary Fund and World Bank’s annual meetings.

The AI race is still as hot as ever, with Elon Musk’s xAI developing artificial intelligence systems that can navigate and design physical environments.

The company has been building these ‘world models’ with a view to applying them in gaming, where they could be used to generate interactive 3D environments.

Lastly, the movie industry just lost one of its best-loved stars with the passing of Oscar-winning star Diane Keaton.

Keaton, who has been an enduring icon of cinema since her turn in Annie Hall, has been in several key movies over the past half-century, including The Godfather, Reds, and The First Wives Club. 

Rest in peace, legend. 

In today’s newsletter, we will talk about 

• Somerset on healthtech’s investment opportunity
• Preserving Chettinad’s jewellery legacy

Here’s your trivia for today: Which two countries faced off in the first international soccer match in 1872?

Healthcare

Somerset on healthtech’s investment opportunity

Somerset Indus Capital Partners has emerged as an active private equity investor in India’s growing healthcare sector, focusing on access and affordability primarily in the Tier II and III markets. Over the past decade, the Mumbai-based firm has invested in 15 portfolio companies, many led by first-generation entrepreneurs.

As Somerset’s Fund III nears its close, Ramesh Kannan, Partner at Somerset Indus Capital Partners, delved into current investment trends in healthcare, the ongoing consolidation across the sector, and the firm’s approach to its next phase of growth.

Investment opportunities:

• For Fund III, Somerset has already invested in Cyrix Healthcare in Cochin and in a pharma packaging company called Printman. The company typically targets 7–9 investments in each fund over a five-year cycle, and expects to do a couple of more investments this year and next. 
• Single-specialty hospitals are seeing a lot of investor traction—oncology, nephrology, IVF, mother-and-child, gastroenterology, and orthopaedics in particular, according to Kannan. Multi-speciality hospitals with a strong oncology focus are also getting attention in larger cities.
• The biggest challenge holding diagnostics back, he says, is interoperability. For instance, a test done at one centre is rarely shared across systems; so patients repeat the same tests multiple times, affecting efficiency rates. 

Heritage

Preserving Chettinad’s jewellery legacy

In 1993, when jewellery designer Meenu Subbiah returned to her hometown of Karaikudi in Tamil Nadu after completing a graduate diamonds programme at GIA–USA, she was struck by how the essence of Chettinad jewellery had faded away. 

That moment set the course for her lifelong mission to restore the integrity and craftsmanship of Chettinad jewellery. That same year, she and her father, S.M. Subbiah, founded a company that would eventually evolve into Chennai-based Meenu Subbiah Diamonds.

Traditional craftsmanship:

• The production unit in Chennai, led by long-time collaborator and her husband, Ganeshan Suppiah, employs 35 skilled artisans and designers. Many of the goldsmiths (aasari) come from the historic regions of Chola Nadu and Pandya Nadu. 
• The collections reflect the grandeur of Chettinad architecture and temple art, combining gold and diamonds in symmetrical floral and geometric compositions. Certain pieces, like the Kazhutheeru (thali/mangalsutra necklace) and Gowri Sangam (men’s ornament), hold ritualistic and cultural significance.
• Over the last five years, the company has recorded consistent growth of 14–16% year-on-year, catering to a few thousand customers annually across India, Singapore, Malaysia, Dubai, the United States, and the United Kingdom. 

News & updates

• No deal: Warner Bros Discovery Inc has rebuffed Paramount Skydance Corp.’s initial takeover approach of around $20 per share for being too low. Paramount has several options to pursue its offer, including boosting its bid, going directly to shareholders or finding additional backing through a financial partner.
• Chip curbs: No significant impact is expected on Taiwan's semiconductor industry from China's new curbs on rare earths, as they differ from the metals needed for the chip sector, the island's economy ministry said.

What you should watch out for

• Mainboard IPOs: The week ahead has a lineup of six major issues listing on the bourses, with the likes of Tata Capital, LG Electronics India, Canara Robeco Asset Management Co, and Canara HSBC Life Insurance Co debuting on Dalal Street.
• World Bank-IMF meeting: Global policymakers and finance ministers will gather in Washington for the International Monetary Fund/World Bank fall meetings, with concerns over tariff shocks and a stock bubble focused on artificial intelligence companies at the forefront of discussions.

Which two countries faced off in the first international soccer match in 1872?

Answer: Scotland and England -- The game ended in a scoreless draw.

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