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Parle Agro’s net profit plummets 87% due to ‘Sin Tax’ on sparkling drinks

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Shweta
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Parle Agro's net profit plummets 87% due to 'Sin Tax' on sparkling drinks

Parle Agro, the maker of Frooti and Appy Fizz, has reported a steep 87% year-on-year (YoY) decline in net profit for FY24, citing the 40% ‘sin tax’ on sparkling drinks as the primary reason.

GST up from 12% to 40%, had an impact on business – MD

According to ET, Nadia Chauhan, Joint Managing Director at Parle Agro, said, “The decision to place fruit-based, non-caffeinated sparkling drinks in the sin tax category, taking GST on Appy Fizz up by four times from 12% to 40%, had a massive impact on the overall business, which is dependent on specific price points.”

Continue Exploring: E-commerce platforms transforms consumer buying patterns in metro cities – NielsenIQ

The company’s net profit dropped to INR 22 crore for FY24, while revenue declined 12% to INR 3,210 crore. Chauhan attributed the decline to the reduced serving size of Appy Fizz, from 160ml to 125ml, due to the increased tax burden. “When you reduce the serving size, the value to the consumer reduces as well. They were used to 160 ml, which had to go down to 125ml, which impacted sales,” she explained.

However, Parle Agro’s competitors, including Coca-Cola and PepsiCo, also face the same 40% tax on carbonated drinks. An industry analyst noted that consumers are increasingly preferring no-sugar and low-sugar drinks, but Frooti and Appy Fizz have limited options in these categories.

Parle Agro’s INR 600 Cr investment in Dairy, changes growth 

Despite the challenges, Chauhan remains optimistic about Appy Fizz’s growth, stating that its contribution to the company’s portfolio has increased to over 40%. She also highlighted Parle Agro’s significant investment in the dairy category, exceeding INR 600 crore, which is changing the company’s growth trajectory.

Continue Exploring: Mamaearth’s Honasa Consumer faces AICPDF heat over unsold inventory worth INR 300 Cr

Interestingly, Chauhan believes the growing circulation of INR 20 coins will boost Appy Fizz sales, as its price tag of INR 20 becomes ‘small change’ for customers. “We are already seeing growth rates of over 30-40% over the previous year,” she said.

In contrast, rival Hindustan Coca-Cola Beverages reported a 247% increase in net profit for FY24 to INR 2,808.3 crore, with a 9.2% increase in revenue to INR 14,021 crore.

The company’s franchisee business, accounting for 40% of its sales, was not included in the reported numbers. A leading FMCG distributor noted that Parle Agro had to take back significant stocks due to unsold inventories in kirana stores.

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E-commerce platforms transforms consumer buying patterns in metro cities – NielsenIQ

By
Ashutosh Dubey
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E-commerce platforms transforms consumer buying patterns in metro cities - NielsenIQ

The rise of online platforms has transformed consumer buying patterns, particularly in metro cities, where shoppers now prefer “stock-up” purchases over “top-up” buys, according to Kanaka Bhagwat, Head of e-commerce at NielsenIQ.

Q-commerce, e-commerce sees 30% surge in sales QoQ

In an interview with ET, Bhagwat revealed that quick commerce and e-commerce sales have surged 30% quarter-on-quarter over the last five quarters, driven by consumers seeking convenience and variety. “Quick commerce and ecommerce sales are in high gear, having grown 30% quarter-on-quarter over the last five quarters,” she said.

Continue Exploring: Mamaearth’s Honasa Consumer faces AICPDF heat over unsold inventory worth INR 300 Cr

Meanwhile, the sales volume of ready-to-eat foods has led the growth on quick-commerce channels, expanding 52% in the July-September quarter compared to the previous year. Other fast-growing categories include salty snacks and refined edible oils (41% each), biscuits (40%), and packaged atta (39%).

Nestle, ITC, Unilever and others reports double-digit growth

Major FMCG companies, including Nestle, ITC, Hindustan Unilever, Dabur, and Emami, have reported high double-digit growth on quick-commerce platforms like Zomato-owned Blinkit, Swiggy Instamart, Zepto, Big Basket‘s BBNow, and Flipkart Minutes. FMCG executives noted that consumers are now buying bulk packs of staples like rice, edible oils, and atta on these platforms, driven by convenience.

Continue Exploring: Sanjay Dutt’s The Glenwalk records 6 Lakh bottles sold in seven months

Notably, the shift to e-commerce is pronounced in metro markets, where quick commerce and e-commerce contributed 85% to incremental sales in the quarter ended September 2024. “This dramatic shift in just one year highlights the growing dominance of ecommerce in the metro markets,” Bhagwat added.

While traditional trade remains dominant nationally, accounting for 85% of FMCG sales, urban markets are rapidly transitioning to quick commerce. This has prompted companies like Dabur and Nestle to adjust inventory in general trade channels.

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Sanjay Dutt’s The Glenwalk records 6 Lakh bottles sold in seven months

By
Ashutosh Dubey
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The Glenwalk beer with sunjay dutt
Sanjay Dutt's The Glenwalk records 6 Lakh bottles sold in seven months

The Glenwalk, a premium Scotch whisky brand under Cartel Bros, has achieved remarkable sales figures, selling over 50,000 cases (600,000 bottles) across 10 states in just seven months of this financial year.

The Glenwalk sees highest sales in Maharashtra

Maharashtra has emerged as the leading market, accounting for 45% of total sales, followed by Haryana (25%) and Uttar Pradesh (20%).

Continue Exploring: Zomato cracks down on fraudulent restaurants after user complaints

Building on this momentum, The Glenwalk has ambitious expansion plans, aiming for a 500% increase in sales to reach 300,000 cases. The brand also plans to expand its footprint to over 18 states and five countries.

“As we expand our footprint and introduce new formats, we’re excited to continue delivering exceptional experiences and solidifying The Glenwalk’s position as a leading global spirits brand,” said Mokksh Sani, Founder of Living Liquidz, Mansionz, and Co-founder of Cartel Bros.

Continue Exploring: Swiggy now offers kitchen equipment procurement service to restaurant partners

The Glenwalk will continue to set new standards – Sanjay Dutt

Renowned Bollywood actor and brand ambassador Sanjay Dutt expressed confidence in the brand’s future, saying, “As we reach new heights, I’m confident that The Glenwalk will continue to set new standards in the global spirits industry.”

To cater to diverse consumer preferences, The Glenwalk will introduce new formats, including 200ml nips in November 2024, expected to quadruple sales. The launch of 1-litre bottles in October 2024 is also anticipated to boost sales.

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Mamaearth’s Honasa Consumer faces AICPDF heat over unsold inventory worth INR 300 Cr

By
Ashutosh Dubey
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Mamaearth's Honasa Consumer faces AICPDF heat over unsold inventory worth INR 300 Cr

The All India Consumer Products Distributors Federation (AICPDF) has flagged Honasa Consumer, the parent company of D2C unicorn Mamaearth, for its large unsold inventory lying with distributors and retailers, causing a financial burden of INR 300 crore.

Honasa Consumer’s unsettled INR 50 Cr disrupts distribution

According to the AICPDF, besides the issue of “unsold stocks nearing expiry,” credit notes of about INR 50 crore are unsettled, creating cash flow challenges and threatening the stability of the entire distribution network.

Continue Exploring: Swiggy now offers kitchen equipment procurement service to restaurant partners

While talking to Inc42, one of the distributors said that Honasa’s practices were causing significant challenges with inventory management. “The company was dumping products in our warehouse. While our monthly sales were around INR 15 lakh, we were holding stocks worth INR 85 lakh.”

The distributors’ body alleged that Mamaearth has been offloading excessive stocks to distributors without considering market demand, damaging the distribution and retail ecosystem and eroding trust. “The unethical stock-dumping practices by Mamaearth have created a crisis of trust and financial viability for distributors,” AICPDF’s national president Dhairyashil Patil said.

Continue Exploring: RBI says rural India emerges as “Goldmine” for e-commerce platforms

Strongly deny allegations made by AICPDF – Honasa

However, Honasa rubbished the allegations, stating that it has been actively working with channel partners to clear unsold stocks. “We strongly deny the allegations made by AICPDF. The figures mentioned are inconsistent with the sales driven through this channel,” the company said.

Further the company added that it made significant progress in removing stocks worth INR 63 crore from its distribution system as part of Project Neev, its initiative to transition away from super stockists to a direct distribution model. The company posted a net loss of INR 18.6 crore in the September quarter of 2024, compared to a net profit of INR 29.4 crore in the year-ago period.

Meanwhile, Honasa’s distribution woes and decline in top line have also shaken investors, with its shares tanking 20% on the BSE after releasing its Q2 numbers and another 12% the following day, closing at INR 263.75, 18% below its IPO issue price of INR 324.

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Swiggy now offers kitchen equipment procurement service to restaurant partners

By
Ashutosh Dubey
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Swiggy, shortly after its market debut, launches a service to assist restaurant partners in sourcing kitchen equipment.

Days after its public market debut, foodtech major Swiggy has introduced a new service to help restaurant partners source kitchen equipment.

Swiggy new service connects restaurants with vendors

The service connects restaurants with reliable vendors, offering appliances tailored to their operational needs.

Continue Exploring: Zomato cracks down on fraudulent restaurants after user complaints

According to Swiggy’s blog post, the service aims to simplify equipment procurement by providing access to trusted suppliers at competitive prices. Restaurant partners can sign up through the Swiggy Owner app or online form and will be contacted by vendors to discuss equipment options.

This launch is part of Swiggy’s ongoing expansion spree. The company is also piloting “Yello,” a services marketplace connecting consumers with professionals like chefs and beauticians. Additionally, Swiggy unveiled “Seal,” an initiative boosting hygiene and food quality standards among restaurant partners.

Continue Exploring: Blitz bags $6 Mn in Series A funding to boost ‘Same-Day’ delivery infrastructure

Swiggy rolls out 10-minute food delivery

Other recent launches include Swiggy Bolt for 10-minute food delivery in six cities and Swiggy XL EV fleet for bulk orders in Gurugram. The company is also testing a premium membership program, Rare Club, with annual fees starting from INR 50,000.

Swiggy’s rival, Zomato, already offers a similar restaurant service option, helping with operational requirements like hiring, FSSAI registrations, and taxation. Both companies are competing in the foodtech and quick commerce markets.

Further, food delivery platform is also expanding its presence in the events and experience vertical, recently appointing former Lenskart executive Supriya Shankar as vice president. Zomato acquired Paytm‘s entertainment ticketing business for INR 2,048 crore to grow its “going out” vertical.

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RBI says rural India emerges as “Goldmine” for e-commerce platforms

By
Ashutosh Dubey
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RBI says rural India emerges as "Goldmine" for e-commerce platforms

The Reserve Bank of India (RBI) has highlighted rural India’s significant contribution to ecommerce growth in the recent festive season. In its November 2024 monthly bulletin, the central bank noted that rural India is becoming a crucial driver of ecommerce sales.

“Rural India is emerging as a gold mine for ecommerce companies in this festival season; this is expected to gather further momentum with the sharp increase in kharif output and optimism around rabi production emboldening a record foodgrains target for 2024-25 (FY25),” the bulletin stated.

Continue Exploring: Zomato’s unconventional job posting sparks debate over INR 20 lakh fee

RBI discusses $5 Bn growth of Q-Commerce

The RBI attributed this growth to increased festival spending, which boosted real economic activity in the third quarter. E-commerce platforms are employing various marketing strategies to attract GenZ consumers.

Further, the bulletin discussed the rapid growth of the quick commerce sector, valued at over $5 billion and projected to reach $30 billion by 2029-30. D2C brands are seeking funds to expand their presence and sales through quick commerce platforms.

With a notable premiumization trend in the electric vehicle segment, electric two-wheelers also saw significant sales during the festive season.

Continue Exploring: Subway aims to double store count in India to 1,700 in six Years

Flipkart registers record 282 mn visitors

Meanwhile e-commerce platforms’ data supports the RBI’s observations. Flipkart recorded 282 million unique visitors between September 1 and October 28, primarily driven by Tier-II+ cities. Amazon also saw significant sales from non-metro cities, with 85% of customers and 70% of Prime members hailing from Tier-II & III cities.

Growing smartphone penetration, affordable internet tariffs, increasing disposable income, and festive discounts have contributed to ecommerce adoption beyond metros. This has led to the rise of ecommerce and D2C unicorns like boAt, Flipkart, and Honasa.

India’s ecommerce startups raised over $561 million in funding between January and June 2024. According to Inc42, India’s ecommerce segment is projected to become a $400 billion market opportunity by 2030.

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Zomato cracks down on fraudulent restaurants after user complaints

By
Ashutosh Dubey
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0
Image of zomato restaurant
Zomato cracks down on fraudulent restaurants after user complaints

Zomato has delisted multiple “potentially fraudulent” restaurants from its platform after users flagged suspicious single-dish eateries. 

The foodtech major took swift action, investigating restaurants with limited menus that may have listed prohibited items.

Zomato finds restaurants using names ‘Naughty strawberry’

“We have identified all such restaurants that were potentially fraudulent and have delisted them from our platform,” Zomato stated on X. The company found that these restaurants used generic food names like “Naughty strawberry” and “Merry Berry” to evade detection.

Continue Exploring: Reliance Brands Managing Director Darshan Mehta to step down after nearly two decades

Zomato has strengthened its fraud checks to prevent similar incidents. The company reiterated its policy, requiring all listed restaurants to have an FSSAI (Food Safety and Standards Authority of India) licence. It also blocks items like alcohol, cigarettes, and vapes from being listed.

Zomato leads food delivery market

The crackdown follows a user’s complaint on X about multiple restaurants in Chandigarh offering single dishes at high prices with nonexistent addresses. The user tagged local police, saying, “Something really shady is cooking on @zomato.” After attempting to order, the user’s order was automatically cancelled, and the restaurant appeared closed.

Continue Exploring: Flipkart-backed fintech startup Super.Money launches fixed deposit offering

Meanwhile, the food tech major’s action comes amid its market dominance. According to Motilal Oswal, Zomato leads the food delivery market with a 58% share, ahead of Swiggy‘s 42%. Zomato-owned Blinkit dominates quick commerce with a 46% market share.

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Flipkart-backed fintech startup Super.Money launches fixed deposit offering

By
Ashutosh Dubey
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Flipkart-backed fintech startup Super.Money launches fixed deposit offering

Super.Money, a fintech startup backed by Flipkart, has launched a new fixed deposit (FD) offering called SuperFD, expanding its product portfolio.

Deposits are insured up to INR 5 lakh in Super.Money

According to INC42, SuperFD allows users to book FDs starting from INR 1,000 with interest rates of up to 9.5%. The deposits are insured up to INR 5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Super.Money’s founder and CEO, Prakash Sikaria, stated, “By offering attractive interest rates, flexibility, and seamless access, SuperFD makes it easier for individuals to invest in a low-risk, high-return product.”

Continue Exploring: Beyoung goes global, expands to Middle East through partnership with Noon.com

Notably, Super.Money has partnered with five RBI-approved banks to launch SuperFD. The startup identified a demand for FDs through user interactions, particularly among affluent individuals aged 20-35 seeking higher interest rates. SuperFD is live for Super.Money’s 7 million users, who can start their FDs with a two-minute eKYC process.

Super.Money eyes to surpass Amazon, Flipkart

Meanwhile, the fintech company aims to become the largest open-ended credit card distributor in India by January, surpassing Amazon and Flipkart’s credit card services. Its credit card offering, SuperCard, has garnered interest from 1.25 million users. However, distribution has been delayed due to bank operational scaling issues.

Continue Exploring: Reliance Brands Managing Director Darshan Mehta to step down after nearly two decades

Further, Super.Money’s UPI offering, SuperUPI, has scaled significantly since its launch, facilitating 49.68 million transactions worth INR 2,167.86 crore in October. The startup plans to expand into credit lines and personal loans by March 2025.

Regarding funding, Sikaria mentioned that Super.Money will seek external investment by June-July 2025, after scaling its other offerings. “Our financial services thesis is playing out. It is in motion and will become clearer in six months. I think that will be the right time for us to start engaging with investors,” he added.

Moving forward, Super.Money’s growth trajectory is promising, with its UPI transactions expected to reach 100 million by the end of the year.

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Beyoung goes global, expands to Middle East through partnership with Noon.com

By
Ashutosh Dubey
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0
image of beyoung & noon
Beyoung goes global, expands to Middle East through partnership with Noon.com

Udaipur-based fashion brand Beyoung has entered the Middle East market through a strategic partnership with e-commerce platform Noon.com.

Beyoung to operate 300 outlets globally

The direct-to-consumer (D2C) brand also plans to open 300 offline stores globally within three years and achieve INR 600 crore turnover by 2027.

Continue Exploring: Blue Tokai aims for threefold revenue growth by 2027, eyes IPO

“Launching with Noon.com is a pivotal moment for us,” said Shivam Soni, CEO and founder of Beyoung. “We ardently believe that the UAE has a large, untapped market of consumers who require value for money and premium fashion, and we’re excited to connect with them. This paves the way for us to reach the global mass market, including the untapped tier II, III, and IV cities.”

Beyoung targets presence in GCC, MENA regions

Further, Beyoung aims to strengthen its presence in the Gulf Cooperation Council (GCC) and Middle East and North Africa (MENA) regions, using this partnership as a gateway to international markets.

Continue Exploring: Zomato leads in food delivery market with 58% share, Swiggy trails behind

Established in 2018 by four entrepreneurs – Shivam Soni, Shivani Soni, Sakshi Soni, and Shankar Mali – Beyoung offers affordable, premium fashion for men and women. Its product range includes plain t-shirts, joggers, cargo pants, and urban shirts, priced between INR 400 and INR 1,500.

Currently, Beyoung has offline stores in Udaipur, Bhilwara, Kota, and Lucknow.

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Reliance Brands Managing Director Darshan Mehta to step down after nearly two decades

By
Ashutosh Dubey
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0
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Reliance Brands Managing Director Darshan Mehta to step down after nearly two decades

Darshan Mehta, Managing Director of Reliance Brands, is stepping down from his position after nearly 20 years at the helm. Mehta will transition into a mentorship role within the Reliance Group.

Darshan Mehta continues to serve as Non-executive D

According to TOI, Mehta will “mentor next-generation leaders and will also help evaluate and explore untapped business opportunities” in his new role. He will also continue serving as a non-executive director on the board of Reliance Brands.

Continue Exploring: Globus Spirits launches luxury whisky brand DŌAAB in India

Mehta has been instrumental in expanding Reliance’s footprint in the luxury and premium retail sectors since joining in 2007. Under his leadership, the company forged partnerships with global brands like Balenciaga, Jimmy Choo, and Bottega Veneta, bringing them to India. Today, over 90 global brands operate in India through Reliance Brands’ partnerships.

Reliance Brands’ loss widens to INR 288.4 Cr

Notably, Reliance Brands, a subsidiary of Reliance Retail Ventures, is tasked with introducing and building global luxury and premium brands in fashion and lifestyle segments. Despite its strong market presence, the company reported widened losses of INR 288.4 crore in FY24.

Continue Exploring: Blue Tokai aims for threefold revenue growth by 2027, eyes IPO

Mehta’s departure marks the end of an era for Reliance Brands. The company will now be overseen by a leadership team comprising senior executives, including Vikas Tandon, Dinesh Taluja, Prateek Mathur, and Sumeet Yadav. A successor for the Managing Director position has not been announced yet.

As Reliance Brands navigates the competitive retail environment, Mehta’s mentorship role will provide valuable guidance. The company continues to build its luxury and premium portfolio amidst India’s growing appetite for premium brands and unique consumer experiences.

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