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FSSAI plans discussions with quick commerce firms on sale of near-expiry food items

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FSSAI Food Brand Images
FSSAI plans discussions with quick commerce firms on sale of near-expiry food items

Due to the current controversy about food safety at a Zomato warehouse, the Food Safety and Standards Authority of India (FSSAI) plans to meet with representatives of major quick commerce platforms within the next 10 days.

Blinkit, Swiggy Instamart, Zepto and other to join discussion

According to NDTV Profit, executives from Blinkit, Swiggy Instamart, Zepto, and other companies will join the meeting. The report says that the meeting’s agenda is to address “serious concerns” about the sale of nearly expired packaged food items on these quick commerce services.

Continue Exploring: Swiggy secures INR 5,085 Cr before IPO, issues 13.03 Cr shares

Furthermore, the authority also intends to conduct a gathering for state food safety commissioners during this week. As these sources that have been quoted by NDTV Profit confirm, FSSAI wants to inform them regarding the need to step up the inspections of the ecommerce and quick commerce sectors in an effort to curb the distribution of very old stocks.

In this regard, the food safety commissioner shall also be instructed to carry out random inspections in the instance where these warehouses and/or dark stores of e-commerce firms do not have any stock which is less than 30% in shelf life.

FSSAI mandates 45-day shelf life for quick commerce sales

Notably, the Food Safety and Standards Amendment Regulations, 2020 require online platforms to only list food items with at least 30% shelf life remaining, or at least 45 days before expiration. This follows an October 29 raid by Telangana food safety officials at a Zomato-owned Hyperpure warehouse in Hyderabad, where they found 18 kg of button mushrooms labelled with a future packing date of October 30.

Continue Exploring: Meesho pulls gangster Lawrence Bishnoi t-shirts after public outcry

Afterwards, Zomato’s cofounder and CEO, Deepinder Goyal, made a public statement blaming the vendor for the mistake. He also said that Zomato’s warehouse team had already identified and rejected the items during their quality control checks.

Additionally, the meeting follows an appeal by the All India Consumer Products Distributors Federation (AICPDF) to the Centre, urging action against ecommerce and quick commerce platforms for not making mandatory disclosures like expiry and best before dates for groceries and other daily essentials.

Moving forward, the body is calling for stricter rules and accuses the packaged goods industry of using quick commerce platforms to sell unsold stocks. This isn’t the first time these companies have faced regulatory issues. Ecommerce giants Flipkart and Amazon are already under the Competition Commission of India’s (CCI) scrutiny for violating antitrust regulations, while quick commerce platforms have been criticised for not following disclosure norms.

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Swiggy secures INR 5,085 Cr before IPO, issues 13.03 Cr shares

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swiggy IPO image
Swiggy secures INR 5,085 Cr before IPO, issues 13.03 Cr shares

Foodtech giant Swiggy raised INR 5,085 Cr on Tuesday, November 5, from anchor investors at INR 390 per share, ahead of its IPO. The company issued 13.03 Cr shares to 75 anchor investors, including Fidelity, HSBC India, Invesco India, Whiteoak Capital, and Societe Generale.

Swiggy’s IPO starts today and ends on August 8

In its November 5, 2024 meeting, the company’s IPO Committee finalised the allocation of 13,03,85,211 equity shares with a face value of INR 1 each to anchor investors at INR 390 per share, according to its filing with the Bombay Stock Exchange (BSE).

Continue Exploring: Novel Jewels to invest INR 5000 Cr in opening 100 stores across India

According to Swiggy, 19 domestic mutual funds applied for the anchor round through 69 schemes, making up 40.65% (5.3 Cr shares) of the total anchor allocation. Swiggy’s public issue opens today and will close on August 8. The IPO includes a fresh issue of shares worth up to INR 4,499 Cr and an offer-for-sale (OFS) of up to 17.5 Cr equity shares, INC42 reported.

Swiggy to finalise allotment of IPO by Nov 11

Meanwhile, Swiggy is expected to finalise the allotment of IPO shares by November 11, with shares being credited to the demat accounts of successful bidders by November 12. The shares will be listed on the BSE and NSE on November 13. Further, the food tech giant has allocated 75% of its public issue for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors.

Continue Exploring: Swiggy sets IPO price band at INR 371-390, valuing company at $11.3 Bn

Notably, Swiggy first submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) confidentially in April 2024 for an IPO worth INR 10,414.1 Cr. Later, the company updated its IPO documents with SEBI in September and quickly received approval.

Furthermore, food tech major’s net losses increased by 8% to INR 611 Cr in the first quarter of FY25 compared to the previous year. Meanwhile, its operating revenue went up by 35% to INR 3,222.2 Cr in the same period.

Earlier, Swiggy’s net loss for FY24 was INR 2,350 Cr, down from INR 4,179.3 Cr the previous year. Meanwhile, its operating revenue increased by 36% year-on-year to INR 11,247.3 Cr, up from INR 8,264.5 Cr the previous year.

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Novel Jewels to invest INR 5000 Cr in opening 100 stores across India

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Aditya Birla Group's Novel Jewels
Novel Jewels to invest INR 5000 Cr in opening 100 stores across India

Aditya Birla Group’s Novel Jewels plans to open 100 stores across India in the next 18 months, investing INR 5,000 crore. This was stated by its chief executive, Sandeep Kohli.

Novel Jewels to roll out franchise models with stores

While talking to ET, Kohli mentioned that besides their own stores, the company is also considering franchise models. He said, “We’ve already got a huge unsolicited kind of response from people wanting to be our franchisees. So we will very soon roll that model out.”

Meanwhile, Novel Jewels, the owner of the Indriya jewellery brand, aims to benefit from more people buying branded jewellery instead of unorganised sector products. Organised jewellers now make up almost 40% of the total jewellery market, up from 22% in FY19.

Continue Exploring: Meesho pulls gangster Lawrence Bishnoi t-shirts after public outcry

“There is a huge scope of growth in the branded jewellery space, so the opportunity in this market is huge,” remarked Kohli, who transitioned to Novel Jewels from Unilever earlier this year.

Novel Jewels now operates in 10 locations across India

Since launching at the end of July, Novel Jewels has been opening stores at nearly one per week, now having 10 locations in Delhi, Mumbai, Pune, Ahmedabad, Jaipur, and Indore. They’ve also established their own manufacturing facility in Mumbai.

Further he said, “While gold prices are rising, the government’s recent move to reduce the customs duty is helping consumers to purchase gold. We are probably the only large-scale player entering into this business in the 2020s with this kind of investment after many players that came in the 1990s or before.”

He mentioned that the initial customer response and sales have exceeded expectations. “People are liking our stores, assortment, design, and the experience at the store. This will help us break even faster than planned,” Kohli stated.

Notably, India’s branded jewellery market is mainly led by brands like Tanishq, Senco, Joyallukas, and Kalyan Jewellers. According to retail analyst Naveen Trivedi from Motilal Oswal Financial Services, the franchise model helps these top players grow into new areas quickly because it doesn’t require much investment and allows faster expansion.

Furthermore, Jewellery requires a lot of capital and high inventory costs for owned stores. “Average investment per store would be Rs 25-30 crore or more depending on the size,” said Trivedi. Kohli mentioned that designs in the stores will change frequently. “If you buy a piece of jewellery now and come back in 45-60 days, that design may not be available,” he mentioned.

Continue Exploring: AICPDF raises alarm: FMCG firms using quick commerce for near-expiry products

Jewel brand aims to be among top three

Additionally, the company aims to be among the top three national players within five years. “We want to focus on freshness of design and innovation and offer a higher variety of assortment that will focus on the new age consumer,” said Kohli. He added, “Our focus will be on having a very high assortment level – it could be as high as 30% more compared to other significant players and a freshness of design and innovation. We want to be a national brand, but also a local brand by catering to regional sensibilities through our designs.”

Kohli said, “Most of the jewellery in our store is designed by our in-house team, and we are expanding the team every month to keep innovating and bringing the best and freshest jewellery buying experience for people.” Currently, the company is focusing on offline sales, but they may offer an ecommerce model in the future.

“Most of jewellery buying still remains largely an offline purchase. A lot of discovery is happening online – search for the latest trends, designs etc. We want to follow that consumer journey where we want to be discovered online and seamlessly enable our customers to purchase offline…at some stage we will get into an e-commerce kind of selling model also but for the time being we are focussed on building our own brand experience for offline sale,” Kohli said in the end.

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Meesho pulls gangster Lawrence Bishnoi t-shirts after public outcry

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Meesho e-commerce platform
Meesho pulls gangster Lawrence Bishnoi t-shirts after public outcry

Meesho, a major e-commerce platform, has faced backlash on social media for selling t-shirts with gangster Lawrence Bishnoi. Users are accusing the company of “glorifying” criminals to make money.

Bishnoi T-shirts available at INR 166, label as ‘hero’

On November 4, a social media user posted on X showing t-shirts with images of Bishnoi available on Meesho for as low as INR 166. Some t-shirts labelled Bishnoi as a “hero,” while others had “gangster” printed on them.

Continue Exploring: AICPDF raises alarm: FMCG firms using quick commerce for near-expiry products

Notably, Bishnoi is allegedly involved in many criminal cases and is a suspect in the Sidhu Moosewala murder case. The issue led to public outrage, with some users suggesting that Meesho should be “de-platformed” for selling controversial merchandise, some of which was aimed at children.

Due to strong online criticism, Meesho has removed the Bishnoi t-shirts from its platform, a spokesperson said while talking to Inc42. “We have taken immediate action to deactivate the products. Meesho remains committed to providing a safe and trusted shopping platform for all our users.”

Meesho raises $1.36 Bn from Tiger global & others

This development comes after a series of top-level departures at Meesho. Harsh Chaudhary, the CXO of monetisation, left in March after two years. Last year, Utkrishta Kumar, the chief experience officer, resigned after five years.

Continue Exploring: Bata registers 53% profit growth, reaches INR 52 cr in Q2 FY25

Established in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho began as a leading social ecommerce startup. In 2022, it shifted to a marketplace model to compete with giants like Flipkart and Amazon. The company has raised about $1.36 billion from top investors like SoftBank Vision Fund, Tiger Global Management, and Peak XV.

Meanwhile, Meesho’s operating revenue increased by over 32% to INR 7,615 crore in FY24, up from INR 5,735 crore the previous year, thanks to strong growth in order deliveries. The company also reduced its adjusted losses by nearly 97%, going from INR 1,569 crore last year to INR 53 crore in FY24.

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AICPDF raises alarm: FMCG firms using quick commerce for near-expiry products

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FMCG, D2C, Inflation, Brands, Food & Beverages
GCPL, Dabur, Marico: FMCG Majors face margin pressure as palm oil, advertising and input costs rise

The All India Consumer Products Distributors Federation (AICPDF) is worried that FMCG companies are using quick commerce and e-commerce platforms to sell products that are near their expiry dates or aren’t selling well.

AICPDF alleges FMCG firms dumping low-demand products

According to The Hindu Business Line, the group has shared its worries with the Ministry of Consumer Affairs, highlighting three main issues with quick commerce: dumping products on platforms, informing consumers, and negative impacts on retailers.

Continue Exploring: Bata registers 53% profit growth, reaches INR 52 cr in Q2 FY25

“Quick commerce and e-commerce platforms have turned into convenient channels for FMCG companies to offload products nearing expiry or with low consumer demand. 

Consumers are lured by attractive discounts and may unknowingly purchase near-expiry products or non-movable stocks that can pose health risks, especially with food and consumable goods. The influx of discounted, near-expiry products on e-commerce and quick commerce platforms creates an uneven playing field, severely impacting traditional retailers. Small and medium-sized retailers cannot compete with the deep price cuts, which affects their financial stability and threatens their survival,” the organisation stated.

FSSAI raid at Zomato warehouse raises concerns

The consumer group has asked the Consumer Affairs Ministry to create regulations, support traditional retailers, and make quick commerce more transparent.

Continue Exploring: Delhi consumes 3.9 Cr bottles of liquor worth INR 4.48 billion during Diwali

“Implement strict regulations to monitor and control the sale of near-expiry and non-movable stocks on quick commerce and e-commerce platforms, ensuring that consumers are adequately informed. Second, enforce mandatory and clear labelling for products that are close to expiration and develop policies that prevent unfair competitive practices and support traditional retailers, protecting them from the repercussions of large-scale dumping by FMCG companies,” added AICPDF.

This comes amid the Food Safety and Standards Authority of India (FSSAI) team finding 90 packets of button mushrooms with wrong packaging dates in a raid at Zomato‘s Hyperpure warehouse in Hyderabad recently.

Previously in this month, the Commissioner of Food Safety, Telangana, posted on X that its task force team inspected Zomato Hyperpure in Hyderabad on October 29. They found 18 kg of button mushrooms with a packing date of October 30, 2024, which violated food safety rules.

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Bata registers 53% profit growth, reaches INR 52 cr in Q2 FY25

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Bata Outlet
Bata registers 53% profit growth, reaches INR 52 Cr in Q2 FY25

Bata India Ltd. announced on Monday, November 4, a 53% increase in consolidated net profit, reaching INR 51.97 crore for the second quarter ending September 2024. This growth was due to better operations and selling premium products. 

Bata’s revenue from operation sees 2.2% jump

According to India Retailing, Bata India had a net profit of INR 33.99 crore for July-September FY24, as stated in a regulatory filing. Revenue from operations increased by 2.2% to INR 837.14 crore during the quarter. “The EBITDA profit stability showcased the company’s resilience in managing operational efficiencies,” said the company in its earnings statement.

Continue Exploring: Delhi consumes 3.9 Cr bottles of liquor worth INR 4.48 billion during Diwali

Notably, total expenses for the September quarter were INR 784.55 crore, a 5% increase from last year. Total income, including other income, rose by 2.36% to INR 854.32 crore.

“The results for the quarter reflect continued momentum in the transformation journey, driven by strategic investments in product innovation, elevated customer experience, technology integration and brand premiumisation, positioning Bata strongly for future growth,” it said.

Meanwhile, MD and CEO Gunjan Shah released a statement regarding the result, saying, ”Despite continuing market headwinds and subdued consumption, we saw some recovery in our growth trajectory through the quarter backed by focused execution of strategic initiatives.”

Bata to operate 1955 stores by end of quarter

“We are seeing strong validation of our premiumisation strategy across channels, with premium products showing robust growth and increased contribution to our revenue mix. Our Brand stories connected well with the targeted audience,” he added.

Continue Exploring: Zomato CEO Deepinder Goyal clarifies vendor’s mistake on ‘future packing date’

Additionally, Bata India continued to expand its retail network, reaching 1,955 stores nationwide by the end of the quarter, including both COCO and franchise stores. It opened 4 Exclusive Brand Outlets (EBOs) for Power, 136 EBOs for Hush Puppies, and 14 kiosks for Floatz.

“Our expansion through franchise stores in Tier 3-5 markets, combined with our robust digital presence, is helping us tap into new growth opportunities with strengthened omni-channel approach. Our conscious efforts on Franchise model expansion are showing good results,” stated Shah.

He said that Bata will keep balancing between handling short-term challenges and investing in long-term growth opportunities.

“We are optimistic about consumption recovery in the coming quarters, backed by festive season momentum and our strong market positioning,” he further added.

On Monday, Bata India Ltd.’s shares closed at INR 1,336.90 each on the BSE, a drop of 1.47%.

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Delhi consumes 3.9 Cr bottles of liquor worth INR 4.48 billion during Diwali

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Liquor shop
Delhi consumes 3.9 Cr bottles of liquor worth INR 4.48 billion during Diwali

Diwali celebrations in Delhi have led to a huge increase in liquor sales. In the two weeks before Diwali, 3.9 crore liquor bottles were sold, bringing in INR 448 crore in revenue. These sales happened through 680 government-run shops.

Liquor sales figures exclude 900 hotels, clubs, and restaurants

According to Economic Times, this year’s liquor sales have significantly increased compared to the past two years. In 2022, 1.9 crore bottles were sold for INR 324 crore, and in 2023, sales went up to 2.7 crore bottles worth INR 433 crore.

Continue Exploring: Zomato CEO Deepinder Goyal clarifies vendor’s mistake on ‘future packing date’

These figures don’t include liquor sold at over 900 hotels, clubs, and restaurants, which means the total market impact is even bigger. Experts say that liquor sales usually slow down for about three weeks before Dussehra because many people avoid alcohol for religious reasons, ET reported.

Delhi Sells 35 Lakh Liquor Bottles on October 29

However, demand picks up a lot after Dussehra and reaches its peak just before Diwali. On October 29, sales hit around 35 lakh bottles, the highest of the season. It dropped slightly to about 34 lakh on October 30, the day before Diwali.

Continue Exploring: Magicpin cuts platform fee to INR 5 as Zomato, Swiggy raise charges

Further, the sales include different types of alcohol like whisky, rum, vodka, gin, beer, and wine. Officials say that people buy liquor not just for themselves, but also for gifts or to stock up for the festive season. This increase in sales has helped the excise department, which had problems with liquor shortages due to issues with the Excise Supply Chain Management System (ESCIMS) portal. A new portal launched in October by the National Informatics Centre has made it easier for shops, hotels, and bars to restock.

Meanwhile, due to the spike in liquor sales during the festive season, the government’s revenue from excise duty and value-added tax has increased compared to last year.

Notably, from April 1 to October 31 this fiscal year, the government collected INR 3,047 crore from liquor excise duties, nearly 7% more than the INR 2,849 crore collected in the same period last year. The Delhi government expects to earn INR 6,400 crore in excise revenue for the 2024-25 budget.

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Zomato CEO Deepinder Goyal clarifies vendor’s mistake on ‘future packing date’

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Zomato CEO Deepinder Goyal, Button Mushroom
Zomato CEO Deepinder Goyal clarifies vendor’s mistake on ‘future packing date’

A few days after reports claimed that a food safety raid at Zomato‘s Hyperpure warehouse in Hyderabad found 90 packets of button mushrooms with a “future packing date,” the company’s co-founder and CEO, Deepinder Goyal, explained it was a mistake by the vendor.

FSSAI discovers 90 mushroom packets with incorrect dates

Deepinder took to X to acknowledge that the Food Safety and Standards Authority of India (FSSAI) team found 90 packets of button mushrooms with wrong packaging dates. However, he emphasised that Zomato’s warehouse team had already flagged and rejected these items during quality control checks.

Continue Exploring: Magicpin cuts platform fee to INR 5 as Zomato, Swiggy raise charges

Goyal explained that the wrong packing date was a typing error by the vendor. He added that the vendor has been removed from Zomato’s database. Goyal emphasised Zomato’s commitment to food safety, saying, “We are committed to upholding industry food safety standards and are focused on not compromising on product quality at any stage of the supply chain. The recent food safety inspection at our Hyderabad warehouse resulted in the Hyperpure warehouse achieving an A+ rating, the highest benchmark in their ranking.”

Housflies, handlers without hygiene gear in Zomato’s Hyperpure

Previously in this month, the Commissioner of Food Safety, Telangana, posted on X that its task force team inspected Zomato Hyperpure in Hyderabad on October 29. They found 18 kg of button mushrooms with a packing date of October 30, 2024, which violated food safety rules.

Continue Exploring: Amazon partners with HPCL to promote Low Carbon Fuels

Additionally, the post noted that house flies were found on the premises because there were no insect-proof screens, and some food handlers were not wearing proper hygiene gear, like hair caps and aprons. It’s important to mention that the warehouse is a Food Business Operator (FBO) and supplies food to hotels and restaurants.

Even though Zomato has valid licences and medical certificates for food handlers, these reports raise concerns about their food safety standards. This incident comes after a report in June about safety violations at another Zomato-owned facility, Blinkit, in Devar Yamjal, Medchal Malkajgiri district.

Furthermore, the Telangana food safety department said they seized edible items worth INR 82,000 from the premises that either didn’t meet food safety standards or had expired licence. These hygiene issues come amid increased focus on food safety in India, as complaints tend to rise during festive seasons like Diwali.

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Magicpin cuts platform fee to INR 5 as Zomato, Swiggy raise charges

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Magicpin logo ONDC
Magicpin cuts platform fee to INR 5 as Zomato, Swiggy raise charges

Magicpin, a hyperlocal delivery service, has cut its platform fee to INR 5 per delivery, making it half the cost of what Zomato and Swiggy charge. This change comes as major players in the food tech sector are increasing their platform fees.

Magicpin announces fee reduction for the year

Anshoo Sharma, Magicpin co-founder and CEO took to X and wrote, “This Diwali, we went against the current trend, and took some hard platform pricing decisions. Result: More than half a million festive food orders, love and support received during the long festive weekend! This is 2X of what we did last year.”

Continue Exploring: Dabur India to acquire major stake in Sesa Care for INR 12.59 Cr 

He added that this change aims to support delivery partners while keeping customers satisfied. Magicpin has cut its platform fees to INR 5 for the rest of the year, which is half of what competitors Zomato and Swiggy charge. This comes after both competitors raised their fees to INR 10 per order last month due to the festive season.

Meanwhile, the delivery platform’s price cut is part of its strategy to strengthen its role in the food delivery market. The company recently launched Velocity, a logistics service that works with partners like Shadowfax, Dunzo, Rapido, Porter, Ola, and Zypp. Through Velocity, Magicpin serves big brands like KFC, Burger King, and Rebel Foods.

Magicpin handles 90% of orders on ONDC

Furthermore, Magicpin announced it will keep the INR 5 platform fee for the rest of 2024, down from INR 7. This decision follows magicpin’s growth on open network for digital commerce (ONDC), where it handles 90% of food orders from major apps like Paytm, Tata Neu, and Ola. The company recently said it processes 150,000 daily orders for food and logistics, a 1500 times increase in the last 16 months.

Continue Exploring: Dabur India suffers 17.65% profit drop amidst high inflation, weak urban demand

Established by Sharma and Brij Bhushan in 2015, Magicpin started as a retail discovery and rewards platform before moving into food delivery. Bhushan recently joined Prime Venture Partners as a venture partner, while Sharma continues to lead the company’s growth plans. Magicpin plans to invest INR 100 crore to enhance its presence on ONDC and aims to bring 100,000 new restaurants and cloud kitchens on board.

Notably, Magicpin now works with 70,000 restaurants, up from 22,000 since joining ONDC in March 2023. It has gained over 10% of the food delivery market in important areas like Delhi NCR and Bengaluru.

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Babyshop launches first store at Gaur City Mall

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Babyshop has opened its first store in India at Gaur City Mall, offering a wide range of products for babies, toddlers, and children to Indian shoppers.

Inauguration features owners of Gaur

The grand opening featured Sarah Gaur, owner of Gaurs Group; Ruban Shanmugarajah, CEO of Babyshop; Dheeraj Chawla, India CEO for Babyshop; and Justin Masih, VP of Leasing for Gaurs Group. The event was lively as the leaders emphasised the brand’s commitment to high-quality products for the Indian market, making Gaur City Mall even more family-friendly.

Continue Exploring: Dabur India to acquire major stake in Sesa Care for INR 12.59 Cr

According to Indian Retailing, Ruban Shanmugarajah, CEO of Babyshop, released a statement, saying, “Babyshop’s entry into India is truly significant as we aim to bring world-class products to support families at every stage of parenthood. With our carefully curated range, we’re here to make parenting more joyful, with essentials for every little moment that matters.”

Babyshop currently runs in 14 countries

Additionally, Families visiting the store will find Babyshop’s blend of quality, comfort, and thoughtful design, made for Indian parents and kids. The Gaur City Mall store will be a parenting hub, offering easy access to products for lasting family memories and children’s comfort and well-being. “Visit Babyshop at Gaur City Mall today to explore everything you need for your parenting journey,” the brand stated.

Continue Exploring: Dabur India suffers 17.65% profit drop amidst high inflation, weak urban demand

Notably, Babyshop, with over 50 years of experience and presence in 14 countries, is known for its quality and trust. They make parenting easier and support parents every step of the way. With their entry into India, families now have a one-stop shop for children’s products, including clothing, nursery essentials, feeding supplies, and educational toys.

With Babyshop’s entry, Gaur City Mall strengthens its position as a top spot for modern families. The new Babyshop store provides a complete shopping experience, letting parents find premium products at their local mall. Babyshop enters the Indian market at a time of rising demand for high-quality children’s products, and its experience makes it well-suited to meet this need.

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