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Zomato and Swiggy deny alleged competition law violations by CCI

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Ashutosh Dubey
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Zomato and Swiggy deny alleged competition law violations by CCI

Food tech majors Zomato and Swiggy have denied recent claims that they violated competition laws, following an investigation by the Competition Commission of India (CCI).

CCI finds foodtech majors guilty of breaching of competition law

In the separate statements, the companies confirmed that the Competition Commission of India’s (CCI) investigation, started in April 2022, is still ongoing with no new developments. Recently, reports revealed that the probe found the companies guilty of breaking India’s competition laws by unfairly favouring certain restaurants through partnerships.

Continue Exploring: Meesho registers reduction in net loss by 81.8% to INR 304.9 Cr in FY24

According to INC42, Zomato mentioned that in April 2022, the CCI asked its investigative arm to look into potential violations of the Competition Act, 2002, in an exchange filing. “Since the intimation of April 5, 2022, the Commission, on merits, has not passed any order. Hence, there have been no further reportable events…,” Zomato said.

Company yet to receive confidential information of findings – Swiggy

Further, IPO-bound Swiggy has responded to the Competition Commission of India’s (CCI) investigation into its business practices. According to Swiggy, “The DG investigated certain aspects of the company’s business and its March 2024 report is a preliminary step in the investigation.”

“Swiggy is yet to receive the confidential details of the findings from the CCI for filing a response to the DG’s finding. Once Swiggy submits its response and CCI conducts a hearing on the matter, CCI will pass its decision on whether any competition law violations have occurred,” company said.

Continue Exploring: Delhivery grants above 11 lakh equity shares under ESOPs plans

Notably, the CCI investigated the companies in 2022 following a complaint by the National Restaurant Association of India (NRAI) in 2021. The complaint accused the food delivery giants of anticompetitive practices, including bundling services, high commissions, delayed payments, and one-sided norms.

Back then, NRAI claimed that both companies offered deep discounts, which hurt local restaurants. They also accused them of violating platform neutrality with their pricing practices. This development comes just after Swiggy’s public market debut. Swiggy’s IPO, which closed last week, was subscribed 3.59 times.

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Zomato launches ‘Food Rescue’—buy cancelled food orders at a discount

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Ashutosh Dubey
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Zomato launches 'Food Rescue'—buy cancelled food orders at a discount

Foodtech major Zomato has introduced ‘Food Rescue’, a feature that lets users buy cancelled food orders from nearby areas to help reduce food waste.

Food Rescue allows users to buy within 3km

The company posted in a blog, approximately 4 lakh food orders are cancelled monthly on its platform. To combat this, Food Rescue allows users within a 3km radius of a cancelled order to purchase the food at a discounted price.

Continue Exploring: Delhivery grants above 11 lakh equity shares under ESOPs plans

“The amount paid by the new customer will be shared with the original customer (if they made online payment), and with the restaurant partner. Zomato will not keep any proceeds (except the required government taxes),” Zomato said.

Further, the company mentioned that orders with items like ice creams, shakes, and smoothies, which are sensitive to temperature and distance, won’t be offered under Food Rescue. This is one of many new features launched by Blinkit‘s parent company in recent months. Zomato also recently introduced group orders, cash on delivery, and a schedule order feature.

Besides regular updates to its food delivery platform, Deepinder Goyal led company bought Paytm’s events and movies ticketing companies, Wasteland Entertainment Private Limited and Orbgen Technologies Private Limited, for INR 2,048 Cr in an all-cash deal in late August.

Continue Exploring: Day 3: Swiggy’s IPO oversubscribed by 3.59 times, led by QIBs

Zomato denies violation claimed by CCI 

Meanwhile, in an exchange filing on Sunday (November 10), Zomato denied a news report claiming that the Competition Commission of India (CCI) found it violating competition laws. Zomato stated that while the antitrust body asked its investigative arm to investigate potential competition law violations in 2022, the CCI has not issued any further orders, and there have been no notable events. This statement follows a Reuters report claiming that the CCI found Zomato and its competitor Swiggy in violation of competition laws.

Due to strong growth in its quick commerce business Blinkit, Zomato’s net profit jumped 389% to INR 176 Cr in the September quarter (Q2) of FY25, up from INR 36 Cr in the same period last year. Operating revenue increased by 68.5%, reaching INR 4,799 Cr in the reported quarter, compared to INR 2,848 Cr in Q2 FY24.

With increasing competition in the quick commerce market, Zomato received board approval to raise INR 8,500 Cr through a qualified institutional placement (QIP).

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Meesho registers reduction in net loss by 81.8% to INR 304.9 Cr in FY24

By
Ashutosh Dubey
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Meesho registers reduction in net loss by 81.8% to INR 304.9 Cr in FY24

Meesho‘s net loss significantly decreased by 81.8% to INR 304.9 crore in the financial year 2023-24, from INR 1,675 crore in the previous year. This improvement is attributed to better profit margins.

Meesho operating revenue sees 32.8% surge

According to INC42, the company’s adjusted net loss, excluding ESOP costs, plummeted 96.6% to INR 53 crore in FY24 from INR 1,569 crore in the previous year. Driving this improvement was a 32.8% surge in operating revenue, which rose to INR 7,614.9 crore from INR 5,734.5 crore in FY23.

With the addition of INR 230 Cr in other income, total revenue increased by 33.2%, reaching INR 7,845.1 Cr, up from INR 5,889.2 Cr in FY23.

Continue Exploring: Day 3: Swiggy’s IPO oversubscribed by 3.59 times, led by QIBs

Established by Vidit Aatrey and Sanjeev Barnwal in 2015, Meesho began as a social ecommerce startup. In 2022, it shifted to a marketplace model to compete with big names like Flipkart and Amazon.

Notably, Flipkart and Amazon are more popular in big cities and suburbs, but Meesho focuses on Tier II and III cities. The company earns over 80% of its revenue from these smaller cities. Unlike most companies, Meesho doesn’t charge commission fees on its platform. Instead, it makes money from advertising and marketing income from sellers.

Meanwhile, the e-commerce platform has over 15 lakh sellers from across India and more than 140 million yearly transacting users. It has raised over $1.08 billion so far. Earlier this year, it considered raising about $600 million and secured around $275 million through a mix of primary and secondary share sales.

Continue Exploring: FMCG sector sees 5.7% value growth amid 6% surge in rural consumption

Meesho’s expenses breakdown

Further, Meesho successfully kept its expenses in check, with revenue growing faster than costs. Total expenses increased by 7.8%, reaching INR 8,150 Cr in FY24, up from INR 7,564.2 Cr in the previous year. 

Employee expenses edged up 3.32% to INR 750.4 crore. Logistics and fulfilment costs surged 23.5% to INR 5,926.8 crore, reflecting the ecommerce platform’s core operations. Notably, advertising and sales promotion expenses were slashed by 50.51% to INR 459.2 crore, indicating improved cost efficiency.

The company reduced its communication expenses by 7.11% to INR 207.7 Cr from INR 223.6 Cr in FY23. Server and software expenses stayed almost the same at INR 575.4 Cr in FY24, compared to INR 567.4 Cr the previous year.

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Delhivery grants above 11 lakh equity shares under ESOPs plans

By
Ashutosh Dubey
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0
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Delhivery grants above 11 lakh equity shares under ESOPs plans

Delhivery has awarded 11.21 lakh stock options to employees under three ESOP plans. The company’s board approved the grant, allowing employees to convert options into equity shares worth ₹1 each. This was disclosed in an exchange filing on November 8.

Equity shares so allotted shall rank pari-passu – company

The company has issued 1,87,641 shares under ESOP 2012, 7,56,000 shares under ESOP II 2020, and 1,77,900 shares under ESOP III 2020. According to the filing, “The equity shares so allotted shall rank pari-passu (ranking equally and without preference) with the existing equity shares of the Company in all respects.”

Continue Exploring: Bengaluru-based John Distilleries targets INR 2,500 crore net revenue in five years

Additionally, this issuance will raise Delhivery’s paid-up capital from INR 74.09 Cr to INR 74.20 Cr. Based on Friday’s closing price, the new stock’s total value is INR 38.8 Cr. Delhivery shares closed at INR 346.50 in the last trading session on Friday.

Delhivery allots 73,300 stock options in November

Established by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati in 2011, Delhivery is a transportation, supply chain, and logistics company. It competes with Xpressbees, Blue Dart, Flipkart’s Ekart Logistics, and Amazon Shipping.

Continue Exploring: Star Localmart eyes retail expansion with 3000 stores in next five years 

Earlier in November, Delhivery allotted 73,300 stock options under its ESOP 2012. Last month, the company issued 8.6 lakh equity shares under its ESOP, following approval for the allotment of 6.15 lakh equity shares under ESOP 2012 and ESOP 2020 in September.

Meanwhile, the company announced plans to launch a network of multi-tenant dark stores for “rapid in-city delivery” for e-commerce companies.

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Bengaluru-based John Distilleries targets INR 2,500 crore net revenue in five years

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Ashutosh Dubey
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Bengaluru-based John Distilleries targets INR 2,500 crore net revenue in five years

Bengaluru-based liquor maker John Distilleries Ltd (JDL) expects to reach INR 2,500 crore in net revenue within five years, driven by expansion, premiumization, and capacity growth.

John Distilleries to invest INR 600 Cr to double production

According to ET, Chairman Paul P John announced plans to set up a greenfield unit in Karnataka, investing INR 600 crore to double production capacity.

Continue Exploring: Hershey lowers growth forecast due to impact of price hikes

“Now, we have already reached 10,000 litres production capacity per day. But this will suffice for the next four or five years. So, we need to expand,” John said. “At the pace that we are growing and the focus that we have, we need another 12,000-litre capacity plant somewhere, and we are looking at Karnataka for that.”

Meanwhile, JDL’s revenue grew 15% in FY 2023-24, reaching INR 1,250 crore. The company exports single malt whisky to 45 countries, with 40% of revenue coming from exports.

John Distilleries considers IPO!

On IPO plans, John said, “A decision would be taken on this after some years.”

Regarding the potential impact of an India-UK free trade agreement, John noted, “For the initial years, it would be there… maybe in the initial stages, for the first few years, there will be some kind of a slight disruption.”

Continue Exploring: Orkla India, parent of MTR Foods, eyes expansion with local spice businesses

However, he expressed confidence in JDL’s quality, saying, “I personally believe that the quality of my brand will stand us in good strength… We have proved it, even in their own home markets. We are winning awards compared to that. So, I welcome that.”

Further, John stressed the need for a level playing field, stating, “Our only request has been to make sure that we are also allowed to enter with our brands into their markets.”

Looking ahead, US-based Sazerac, which owns 40% of JDL, may increase its stake. John revealed plans to manufacture and sell Sazerac-owned brands in India, including BuzzBallz.

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Hershey lowers growth forecast due to impact of price hikes

By
Ashutosh Dubey
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Hershey lowers growth forecast due to impact of price hikes

Hershey, a leading chocolate manufacturer, lowered its annual revenue and profit forecasts after missing Wall Street’s third-quarter expectations on Thursday, November 7. The repeated price hikes have reduced demand for its chocolates, confectionery, and salty snacks.

Hershey maintains high prices amid rising Cocoa costs

According to ET Retail, chocolatiers like Hershey have increased prices to keep profits up despite rising cocoa costs, causing consumer pushback. Also, changing trends, like a shift to non-chocolate treats among younger generations, have hurt Hershey’s chocolate sales.

Continue Exploring: Orkla India, parent of MTR Foods, eyes expansion with local spice businesses

Meanwhile, shares of Jolly Rancher-owner Hershey fell about 2.5% in premarket trading. Recently, Kraft Heinz also lowered its annual forecast, even though it beat third-quarter profit expectations, as consumers switched to cheaper, private-label brands. To address rising cocoa prices and improve profit margins, Hershey plans to save $300 million by 2026 through cost-cutting and price hikes.

Hershey expects net sales to be flat, down from 2% before

“While year-to-date results have been affected by historically high cocoa prices and a challenging consumer environment, we are laser-focused on controlling what we can,” CEO of Hershey, Michele Buck said.

Continue Exploring: Zomato CEO Deepinder Goyal addresses flirty notifications on The Kapil Sharma Show

One of the world’s largest chocolate makers, Hershey, now expects its full-year net sales growth to be flat, down from a previous estimate of about 2%. The company also predicts annual adjusted earnings per share will drop by mid-single digits, instead of the slight decline it had previously expected.

Furthermore, in Q3, organic prices increased by 2%, while organic volume dropped by 3%. Total net sales decreased by 1.4% to $3 billion, falling short of analysts’ estimate of $3.08 billion, according to LSEG. Excluding certain items, the company earned $2.34 per share, below the expected $2.56.

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Star Localmart eyes retail expansion with 3000 stores in next five years

By
Ashutosh Dubey
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0
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Star Localmart eyes retail expansion with 3000 stores in next five years

Star Localmart, part of the Sanjay Ghodawat Group, plans to expand to 130 stores by March 2025. Over the next 5 years, they aim to open 3,000 stores in Maharashtra, Karnataka, Goa, Telangana, Madhya Pradesh, and Gujarat, according to a media release on Friday, November 8.

Star Localmart operates 80 stores

While making an announcement, Shrenik Ghodawat, managing director of Star Localmart said, “The aim is to reach every small town and village, offering a seamless shopping experience and redefining neighbourhood convenience.”

Continue Exploring: Lingerie retailer Zivame suffers 34% net loss to INR 39 Cr in FY24

“We are dedicated to making convenience, affordability, and customer satisfaction the heart of everything we do, especially in communities where these options matter most,” he further said.

For now, the brand runs over 80 stores in tier-3 and tier-4 towns in Maharashtra and Karnataka, each ranging from 1,000 to 1,500 square feet.

As India moves towards becoming the world’s third-largest retail market, 2024 is set to be a big year for the industry. With more disposable income, fast urbanisation, a growing middle class, and tech-savvy consumers, the Indian retail sector looks like a great investment opportunity for both local and global companies.

Continue Exploring: Elan Group partners with AS Hotels to introduce luxury hotel Ramada Encore by Wyndham

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Orkla India, parent of MTR Foods, eyes expansion with local spice businesses

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Ashutosh Dubey
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Orkla India, parent of MTR Foods, eyes expansion with local spice businesses

Orkla India, the parent company of MTR Foods and Eastern Condiments, is seeking partnerships with local spice and masala businesses to strengthen its presence and dominance in India’s spice market, according to a top executive of the company.

Open to new partnerships with more local players – CEO

According to ET Retail, Sanjay Sharma, CEO of Orkla India, expressed, “We are open to new partnerships. Spices and masalas is an exciting category and we are looking out for partnering with more local players.”

Continue Exploring: Elan Group partners with AS Hotels to introduce luxury hotel Ramada Encore by Wyndham

Meanwhile, Orkla, a Norwegian investment company, entered India in 2007 by acquiring MTR Foods. In September 2020, they bought a majority stake in Eastern Condiments, run by the Meeran family. In the year 2023, Orkla reorganised its India operations into three units: MTR, Eastern, and International Business. MTR generates about 48% of revenues, Eastern 34%, and International Business 18%.

Orkla India identifies 9 key markets globally to evolve

“Our international segment is the fastest growing and continues to develop rapidly,” Sanjay added.

Further he mentioned that the company has identified 9 key markets worldwide that drive most of its business. The Middle East accounts for 70% of Orkla India’s international sales, followed by North America. The company is now looking to expand into the UK and 4-5 new markets in the Middle East.

Continue Exploring: Zomato CEO Deepinder Goyal addresses flirty notifications on The Kapil Sharma Show

Previously in July, Nils Selte, president and CEO of Orkla, informed investors that the company has started an IPO readiness study for Orkla India. He said, “We initiated a process to consider structural opportunities for Orkla India, including conducting an IPO readiness study. The results of the study are encouraging. And we will now proceed with an evaluation of accessing the capital markets in India. Any conclusion should not be expected until sometime 2025.”

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Elan Group partners with AS Hotels to introduce luxury hotel Ramada Encore by Wyndham

By
Ashutosh Dubey
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Elan Group partners with AS Hotels to introduce luxury hotel Ramada Encore by Wyndham

Gurugram-based Elan Group has collaborated with AS Hotels & Residences Private Limited to launch Ramada Encore by Wyndham, a luxury hotel, at Elan Miracle Mall in Sector 84. 

New Ramada Encore feature 91 rooms at Elan Miracle Mall

According to ANI, the hotel, spanning 1.2 lakh sq. ft., will feature 91 luxurious rooms, suites, and premium facilities.

Strategically located within Elan Miracle, a prime commercial destination, Ramada Encore will cater to business and leisure travellers. The hotel is expected to open by the end of this year.

Continue Exploring: SAMHI Hotels expands in Hyderabad with new long-term lease

“We are excited to welcome the Ramada Encore Hotel by Wyndham brand to Elan Miracle Mall,” said Venika Kapoor, Senior Vice President-CRM, Elan Group. “This initiative is a testimony to our vision of establishing a vibrant mixed-use development in a prime location on Dwarka Expressway.”

Elan Miracle Mall to welcome Levi’s, Snitch, and PVR Cinemas

Furthermore, Amar Bharati, Director, AS Hotels & Residences Private Limited, added, “Bringing Ramada Encore to Gurgaon, especially at the prime location of Elan Miracle Mall, marks a significant step in our mission to offer vibrant and rejuvenating hotel experiences.”

Continue Exploring: Bengaluru court halts Swiggy from claiming former executive’s ESOPs

Notably, Elan Miracle Mall boasts an array of leading brands and will soon welcome new additions, including Levi’s, Snitch, and PVR Cinemas. Ankit Sharma, Vice President-Leasing, Elan Group, stated, “We are delighted to join hands with AS Hotels & Residences Private Limited… This move reinforces our commitment to creating world-class destinations.”

Additionally, the hotel Group aims to revolutionise the real estate industry with its focus on “Trust, Quality & Sustainability.” With this partnership, Elan Miracle Mall solidifies its position as a premier retail and lifestyle destination.

“Elan Group was established with an aim to revolutionise the principles of ‘Trust, Quality & Sustainability’ in the real estate industry,” said the company in a media release. “With a vision to ‘Build the Future,’ Elan is dedicated to transforming the Indian realty landscape.”

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Zomato CEO Deepinder Goyal addresses flirty notifications on The Kapil Sharma Show

By
Ashutosh Dubey
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0
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Zomato CEO Deepinder Goyal addresses flirty notifications on The Kapil Sharma Show

The Great Indian Kapil Show will soon welcome two surprising guests—Zomato CEO Deepinder Goyal and his wife Grecia Munoz, along with Infosys founder Narayana Murthy and his wife, writer-philanthropist Sudha Murthy.

Deepinder Goyal with wife Grecia Munoz and Narayana Murthy marks presence

Host Kapil Sharma, known for his celebrity guests like movie stars and athletes, will feature these well-known Indian entrepreneurs in the latest episode of his show. Notably, A new promo shows the fun side of these business icons. The clip features Deepinder Goyal and Grecia Munoz enjoying a classic ring toss game.

Continue Exploring: Day 3: Swiggy’s IPO oversubscribed by 3.59 times, led by QIBs

In the video, Sharma shows some of Zomato’s cheeky notifications, like “There are many types of pasta, but our type is you!” He then asks Goyal if he accidentally sent these flirtatious messages to clients instead of his wife. Goyal credits his young marketing team, who may not have a marketing background but are full of innovative ideas.

Netizens react

Additionally, a humorous video shows Sudha Murty, Grecia Munoz, and Deepinder Goyal participating in a light-hearted ring-toss game. The caption jokingly reads, “Not a delayed delivery, but directly cancelled!” The clip begins with Sudha Murty attempting to win a prize by tossing a ring. Grecia Munoz successfully lands her ring around the target, while Deepinder Goyal misses. A cast member teasingly says, “Looks like you’re delivering to the wrong address,” sparking laughter.

Continue Exploring: Himanshu Saini wins best chef for Dubai, receives Three Knives award

In another promo, Narayana Murthy humorously showed a charming side by expressing sweet feelings for his wife. However, Sudha Murty playfully interrupted with a quick-witted reply.

Meanwhile, fans took to the comments section, praising the video and sharing humorous reactions. “The fact that they brought Narayan Murthy with Deepinder..” wrote one user, while another exclaimed, “Love Zomato Marketing.” A third user quipped, “Who all are in a committed relationship with Swiggy notifications?”

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