Sula Vineyards Ltd, a local wine producer, announced on Wednesday that the unexpected rains in Nashik will not adversely affect its business, despite causing some damage to the vineyards. Surprisingly, the overall impact of these rains has been beneficial in several aspects. Sula Vineyards CEO Rajeev Samant stated in a regulatory filing that the rains have positively contributed by providing essential water replenishment to rain-deficient districts like Dindori and Sinnar.
“Though there was some damage to vineyards, especially where there were hailstorms, the overall impact on our wine grape procurement and upcoming harvest will be negligible, meaning zero impact on the overall business,” he added.
Having accumulated more than 25 years of expertise, the company has established a resilient grape procurement model that factors in the expectation of encountering several unseasonal rain events annually.
“We therefore always target a slightly higher grape tonnage than we need to fulfil our sales projections. The result is that if and when such unseasonal rains occur, Sula will always get the grapes it needs,” Samant said.
Empathising with farmers who were hit badly by the unseasonal rains, he said, “However, I would like to reiterate that the outlook for our 2024 harvest remains extremely strong.”
Following a reduction in its loss during the fiscal year 2022, Amazon Seller Services, the marketplace segment of Amazon India, experienced a 33% increase in its standalone net loss, reaching INR 4,854.1 crore in the financial year 2022-23 (FY23), compared to INR 3,649.2 crore in the preceding year.
Conversely, the organization’s operating revenue saw a modest 3.4% rise to INR 22,198 crore in the current fiscal year from INR 21,462 crore in FY22.
During the fiscal year 2022, Amazon Seller Services witnessed a 23% year-on-year (YoY) reduction in loss, alongside a 32% increase in operating revenue compared to FY21.
The majority of the company’s revenue is generated through the provision of marketplace services. It provides programs that empower sellers to market their products via its internal platform and fulfill orders through it. Additionally, the company derives revenue from subscription services, encompassing fees related to Amazon Prime memberships and access to content such as digital video, digital music, and e-books.
Amazon Seller Services also generates income from various other marketplace-related services, including the sale of advertising services and royalties, which involve revenue earned through the licensing of digital content.
Taking into account the previously mentioned revenue streams along with other non-operating income, the total revenue for the entity amounted to INR 22,429.5 crore in the fiscal year 2022-23 (FY23).
E-commerce giant Amazon’s marketplace business in India competes with Walmart-backed Flipkart, marketplaces owned by Tata and Reliance, as well as new-age platforms like Meesho and Nykaa, among others.
In its Q2 2022 performance disclosure earlier this year, Amazon, the US-based e-commerce giant, indicated that its operations in emerging countries such as India, Brazil, and the Middle East would require some time to achieve profitability, but these markets were progressing along favorable trajectories.
However, the company’s statements, subsequent to the release of financials for the quarter ended March 31, 2023, did not make any reference to the India business, prompting considerable scrutiny.
Total expenses for Amazon Seller Services surged by 7.9% to INR 27,283.6 crore in the fiscal year 2022-23 (FY23), compared to INR 25,282.6 crore in the preceding fiscal year.
Employee benefit expenses for the entity constituted 10.2% of the total expenses in the year under review, rising to INR 2,794.7 crore from INR 2,192.7 crore in FY22.
In this regard, the company allocated INR 1,928.6 crore for salaries, bonuses, and wages. The employee share-based payment (equity settled) for Amazon Seller Services rose to INR 690.5 crore in FY23, up from INR 559.4 crore in the preceding year.
Delivery charges constituted the largest portion of Amazon Seller Services’ total expenses in FY23, surpassing 25%.
In the reported period, the company allocated INR 6,863.1 crore to delivery charges, compared to the expenditure of INR 6,751.2 crore in FY22.
The company successfully reduced its advertising promotional expenses to INR 3,209 crore in FY23, down from INR 3,426.4 crore in the previous fiscal.
Legal professional charges for Amazon Seller Services increased by almost 3% year-on-year to INR 3,598.8 crore.
The company’s miscellaneous expenses, covering payment processor fees, reimbursement for damages of fulfilled inventories, exchange differences, allowances for doubtful debts, and other items, experienced a growth of over 9% year-on-year, reaching INR 4,875.8 crore in FY23.
Radiohead Brands, a swiftly growing high-end beverage startup, has strategically entered the burgeoning “Energy Drinks” market with the launch of their new product, Hustle Drink.
Hustle Energy Drink is set to make its debut in a single classic flavor, available at the price of INR 60 for a 250 ml premium can.
Manufactured in Dubai, the beverage boasts an identical composition, impact, and flavor to leading global energy drink brands that typically retail for over INR 110.
In the initial phase of the launch, Hustle Energy Drink will be available at prominent retail outlets in the top 8 metropolitan cities.
Radiohead Brands’ energy drink is positioned for direct competition with Red Bull and Monster, offering a lower price range of INR 110 to INR 125, in contrast to the pricing of Hustle Energy Drink.
“We have already established ourselves as the market leader in the new Mixers Space with our first brand Jimmy’s. With Hustle now we intend to expand our distribution footprint to get a foothold in one of India’s fastest growing beverage category,” said Ankur Bhatia, CEO Radiohead Brands.
According to Euromonitor International, a research firm, the energy drinks sector experienced a 12.6% growth in overall value from 2021 to 2022, reaching INR 16,488.6 million last year.
This surge represented an approximate 35% increase from the figures observed in 2020. In terms of quantities sold, it amounted to around 33.5 million liters compared to 30.4 million liters in 2021 and 26 million liters in 2020.
A major driver of this growth is the incorporation of the category by major cola companies, with a focus on PET bottle packaging and more affordable pricing, propelling the category into prominence.
Jimmy’s Cocktails took the lead in its category, generating INR 34 crore in Net Revenue for the fiscal year 2023.
The company recently obtained INR 11 crore in funding through a Pre-Series A round led by Prath Ventures and supported by notable investors, including Vijay Shekhar Sharma from Paytm.
Radiohead Brands is strategically developing a range of modern beverages with prices ranging from INR 50 to INR 100, with the goal of positioning itself as a INR 1000 crore enterprise within the current decade.
Harvest Food Group, a frozen food producer based in the United States, has named Amit Pandhi, former CEO of Velocity Snack Brands, as its new Chief Executive Officer.
Earlier this year, the Illinois-based company located in Naperville was acquired by the U.S. private-equity firm Industrial Opportunity Partners.
Pandhi’s most recent operational role involved serving as the CEO of Velocity Snack Brands, a U.S.-based snacks business, where he oversaw a portfolio of brands, including Popchips.
As per Pandhi’s LinkedIn profile, he occupied the role from October 2019 to December 2022. Before that, he served as the President and CEO of Arctic Zero, a low-calorie frozen dessert maker, for a span of nine years.
Harvest Food Group’s Chairman, Norman Young, emphasized that Pandhi possesses a “demonstrated history of fostering growth and innovation in the food industry.”
Harvest Food Group provides frozen vegetables, fruits, grains, legumes, and herbs to food manufacturers. Additionally, the company serves foodservice operators and engages in co-packing and private-label contracts.
“HFG makes incredible products across so many verticals and I look forward to building upon its long history to grow our private label, foodservice, contract manufacturing, branded and ingredient businesses,” Pandhi said.
“I also look forward to deepening our relationships with existing customers, from the largest retailers and best global food companies, as well as serving the most innovative emerging brands in frozen,” he said.
Jason Eckert, who co-founded HFG in 1999 will move from his role as president to board member. He said, “Amit will infuse a new source of energy and expand the vision for what HFG can become. His experience in building organizations and maximising growth and profitability will help position Harvest Food Group to tackle the challenges that our industry faces heading into the future.”
Gurgaon-based Fat Tiger, a Quick Service Restaurant (QSR) chain, marked a significant milestone with the launch of its new outlet at Ardee Mall in Gurgaon on Wednesday, as detailed in a recent company statement.
As per the official company statement, the menu at Fat Tiger features a varied array of dishes encompassing burgers, momos, and pasta. Moreover, the restaurant caters to a broad spectrum of dietary preferences by providing vegetarian options.
“We are incredibly excited to introduce our newest outlet in Ardee Mall, Gurgaon,” said Sahil Arya, Founder, Fat Tiger.
“We strive to offer our patrons exceptional food experiences, and this expansion allows us to share our culinary passion with even more food enthusiasts in the region,” added Arya.
The management of the chain is overseen by Sahaj Chopra, the brother of Bollywood actress Parineeti Chopra.
Boasting a presence in more than 35 locations across India, Fat Tiger anticipates rapidly establishing itself as the preferred choice for both food enthusiasts and families alike.
Deliveroo, the British food delivery firm, has announced its foray into the non-food retail sector. The company is venturing into areas such as toys, electronics, and other merchandise with the aim of stimulating growth, following the reiteration of its 2023 profit forecast.
Competing with Just Eat Takeaway.com and Uber Eats across Europe, the Middle East, and Asia, the company has introduced “Deliveroo Shopping” on its app. This feature enables customers to purchase non-food items, including D.I.Y. products, through a collaboration with hardware supplier Screwfix.
As Deliveroo ventures into these new categories, the company, with its platform hosting 162,000 restaurants and 20,000 grocery sites, and a network of delivery riders, will encounter growing competition from its shareholder, Amazon.
The American company possesses a 14.13% ownership stake.
Deliveroo anticipates a mid-teens percentage growth in its gross value transaction (GTV) annually in the medium term. The company has reiterated its projection that its earnings margin, as a percentage of GTV, will exceed 4% by 2026.
“There continues to be significant headroom for growth,” Deliveroo’s chief executive Will Shu said in a statement ahead of an investor day on Wednesday.
For its 2023 full-year, the company said it continued to expect adjusted core earnings between 60 million and 80 million pounds.
Swiggy’s investor Prosus, in its financial filing, highlighted a significant milestone for Swiggy’s core food-delivery business. The platform experienced a robust 17% growth, delivering a noteworthy gross merchandise value (GMV) of $1.43 billion in the first half of FY24.
“This was led by a rise in transacting users that drove double-digit order growth and inflation in AOV,” Prosus said.
“Core food-delivery EBITDA losses in 1H24 shrunk 89 per cent, led by improvements in contribution margin and operating leverage. In combination, this reflects customer willingness to pay for convenience and restaurant willingness to advertise for growth,” it added.
Prosus, with a 32.7% stake in Swiggy, reported a decrease in trading losses to $208 million.
Trading losses in the first half of the previous year were $321 million.
The company further stated that its quick-commerce business achieved rapid advancement, attributing the growth in orders to increased customer adoption. Additionally, basket sizes demonstrated notable expansion, surpassing the rate of inflation.
The company reported a 19% increase in Instamart’s store count by the end of June, contributing to a substantial 63% growth in its Gross Merchandise Value (GMV).
“With the platform focused on gaining scale and moving towards profitability in the 25 cities where it operates, Instamart’s first-half contribution losses fell by around 75 per cent,” Prosus stated.
“Broader product selection, densification of the store network and faster delivery times have continued to aid customer acquisition and retention,” it added.
Last month, US-based investment company Invesco elevated Swiggy’s valuation to about $7.85 billion.
According to a newly-published disclosure, Invesco said that “it considers the valuation of similar public companies as a factor when reassessing the value of its private investments”, reports TechCrunch.
The Union Cabinet has given its nod for the continuation of the Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY), ensuring the provision of free foodgrain to the economically disadvantaged for an additional five years, with a budgetary allocation of INR 11.8 lakh crore.
Addressing a press conference, Union Minister of Information and Broadcasting, Anurag Thakur, stated on Wednesday that the Centre is extending the PMGKAY scheme. The initiative will provide 5 kg of free foodgrain per month to 81 crore impoverished people for another five years, starting from January 1, 2024.
The Minister also announced that PM Janman scheme has been approved which will cost INR 24,100 crore out of which INR 15,300 crore will be funded by Centre and remaining by states.
The scheme will provide basic facilities including housing, road connectivity, piped water, mobile medical units, solar street lighting, mobile towers.
The scheme will be implemented in 18 states and is expected to benefit 28,16,000 tribals.
Thakur also said that proposal for setting up the 16th Finance Commission has been been cleared and the terms of reference include share of central taxes between Centre and states.
The 16th Finance Commission will be for the period of five years from April 1, 2026-31.
He said there will no shortage of funds or food for Garib Kalyan Anna Yojana for over five years. The scheme will cost the government nearly INR 11.8 lakh crore over the next five years, but he emphasised that this amount is not a fixed number.
Thakur referred to this is an effort by the Prime Minister to ensure the poor people have food security and don’t have to worry about their basic needs.
Nestle SA views India and China as crucial coffee markets, expressing optimism about the potential for significant growth in coffee consumption in these highly populous nations, as stated by the global head of strategy.
“We have a really strong footprint in Asia and we are really bullish about those markets that have very low per capita consumption,” Philipp Navratil, head of Nestle’s coffee strategic business unit, said in an interview in Vietnam’s Dak Lak province. “China is really a big focus, and India is a big focus.”
In Asia, Nestle is involved in instant coffee activities, particularly in Vietnam, the largest producer of robusta beans globally. Earlier this year, futures for this variety in London reached a record high due to concerns about supply constraints. The impending El Niño is anticipated to result in drier conditions in the coffee-growing regions.
According to Navratil, the Philippines and Thailand hold strategic importance as key markets for the Swiss company specializing in Nespresso and Nescafe, encompassing both soluble and ready-to-drink products. Additionally, he highlighted Pakistan and Africa as other regions poised for significant growth in consumption.
“In India, China, sub-Saharan Africa, there’s 4 billion people that drink less than 20 cups per year” on average, Navratil said. There’s an opportunity “to really build coffee markets out of those huge populations,” he said.
Rohit Chawla, Sifat Khurana, and Vimal Bhola, Co-Founders, Innovist
Innovist, the overarching organization behind direct-to-consumer (D2C) brands Bare Anatomy and Chemist at Play, secured $7 million in its Series A funding round, with Amazon Smbhav Venture Fund taking the lead.
Several investors, including 72 Ventures, the family office of Nykaa founder Falguni Nayar, and former KKR India head Sanjay Nayar, as well as Accel India and Sauce.vc, were reported to have participated in the funding round, according to multiple media sources.
According to the reports, the startup plans to utilize the newly acquired funds for product innovation, expanding its market presence, and strengthening its team.
Established in 2018 by Rohit Chawla, Sifat Khurana, and Vimal Bhola, Innovist specializes in personal care products. Presently, it operates three brands – Bare Anatomy, Chemist at Play, and SunScoop. The startup employs an omnichannel approach for the distribution of its products.
Last year, Innovist secured $3.5 million in its pre-Series A funding round, led by Accel Partners and 72 Ventures, building on the $2.5 million it had raised in 2021.
Including the latest round, the total amount of funding raised by the startup is estimated at over $13 million.
Innovist competes with the likes of WOW Skin Science, mCaffeine, Mamaearth, and numerous other personal care D2C brands in the country.
In 2021, Amazon launched its first $250 million venture fund, the Amazon Smbhav Venture Fund, with the intention of investing in early-stage Indian startups. Until earlier this year, the fund had already invested in five companies across sectors such as financial services, healthcare, and consumer tech.
In May, the D2C menswear startup XYXX secured $13.5 million in its Series C funding round, with leading participation from the Amazon Smbhav Venture Fund. Other companies in the fund’s portfolio include The Good Glamm Group, M1 Xchange, Fitterfly, and more.
According to analysis, the ecommerce landscape in India is anticipated to become a $400 billion opportunity by 2030. Within this, the beauty and personal care market is projected to reach $28 billion, experiencing a Compound Annual Growth Rate (CAGR) of 27% from 2022 to 2030.
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