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WIKA India aims to attain excellence with localisation

By
M Haziq Pandit
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Wika India Gaurav Bawa

WIKA India, a subsidiary of Germany-based WIKA Group, is on a mission to double its turnover by 2029, driven by strong market demand and strategic localization efforts. Gaurav Bawa, Senior Vice President of Wika India Group, outlines the company’s robust growth strategy that aims to capitalize on India’s economic growth trajectory. 

Bawa, who has been with WIKA India for the past seven years, revealed that the company is experiencing significant growth, with a year-to-date (YTD) increase of 27%. He anticipates that the company will end 2024 with a 30% growth rate. “Last year, we clocked over 25% growth. This year, we’re already at 27%, and we expect to finish the year with around 30% growth,” said Bawa.

Localization and Growth Markets

WIKA India operates four manufacturing plants across India, with its largest facility located in Pune, followed by Faridabad, Chennai, and Ghaziabad. Bawa emphasized the company’s commitment to localization as a core strategy for growth. 

“We’ve localized a lot of products to cater to the Indian market and other global markets. Our strategy focuses on growth markets while maintaining a strong presence in traditional sectors. India’s economy is booming, and we are strategically positioned to leverage that,” Bawa explained. 

India’s industrial sector is growing rapidly, and WIKA’s focus on localization has enabled the company to become a key player in the country’s manufacturing ecosystem. “We are now producing products that are cheaper than China, which makes India a great productivity hub. Our project management office, with over 90 employees, manages global projects out of India,” said Bawa.

Continue Exploring: Bambrew raises INR 60 Cr in Series A funding to expand sustainable packaging solutions for FMCG and F&B sectors

Bullish on India: A Productivity Hub for the World

Bawa highlighted that many global companies are shifting their production lines to India post-COVID-19. This is because India has become a more cost-efficient destination for manufacturing. “India is now even cheaper than China in some areas, and we are more productive and efficient, which is helping us grow globally,” he said.

Wika India’s expertise extends beyond manufacturing. Now, it also provides global services in HR, project management, and marketing. Additionally, the company is investing in research and development (R&D) in India, breaking away from its traditional German-centric R&D model. “We’ve started R&D operations in India for specific products, and this is helping us innovate faster,” Bawa shared.

Focused Markets for the Upcoming Years: Power, Pharma, and Hydrogen

WIKA India’s focus isn’t limited to traditional markets like oil and gas or industrial machinery. The company is targeting emerging sectors, such as power generation, food and pharmaceuticals, and renewable energy. 

“We’ve traditionally been strong in oil and gas and industrial machines, but now we’re focusing on sectors like food and pharma, which are predicted to grow significantly. We’re also looking at the power generation sector, especially nuclear energy,” Bawa explained. 

WIKA is also betting big on hydrogen energy, a sector poised for explosive growth in India. “India is expected to produce the cheapest hydrogen globally due to solar power, and we are developing products for the hydrogen market as well. This will be a game-changer in the energy sector,” he added.

Digital Transformation and Custom Solutions

In line with global trends, WIKA India is embracing digitization, offering IoT-based solutions for industries requiring real-time data monitoring. Bawa emphasized the importance of innovation and customization, particularly in high-growth sectors like food, pharmaceuticals, and infrastructure. 

“We’re looking at connected products that allow remote monitoring of equipment. For instance, we’re developing predictive maintenance solutions using vibration sensors that can detect issues before they occur. This level of innovation is what sets us apart,” said Bawa. 

The company is also offering bespoke solutions, tailored to the needs of specific industries. “Many of our products are customized for clients, and we’re working on developing more industry-specific solutions,” he said.

Challenges and Opportunities in the Indian Market

Despite its successes, WIKA India faces challenges, particularly in catching up with competitors in the food and pharma sectors. “We were late entrants into the food and pharma markets, so we have a lot to catch up. Our biggest challenge is to get our product portfolio ready and bring innovative solutions to the table,” Bawa admitted.

Nevertheless, the company’s innovative solutions have given it a competitive edge, helping it gain a foothold in these sectors. “Our entry into these industries is being facilitated by the innovative solutions we offer. We are confident that this will continue to drive growth,” he added.

Aiming for exceptional growth by 2025

With its aim to attain excellence in services and revenue by 2025, WIKA India is well on track, with strong growth across multiple sectors and a clear strategy for market expansion. 

“We have a very clear target to attain by 2025. With the strategies we’ve put in place, I am confident we’ll achieve that,” Bawa concluded.

With its focus on emerging sectors, digitization, and customization, WIKA India is poised to play a crucial role in India’s industrial growth story. As the country continues to attract global investments and become a manufacturing hub, WIKA’s localized approach and innovative solutions will likely keep the company on a strong growth trajectory.

Continue Exploring: Sustainable packaging firm Xolopak India secures investments from Bollywood celebrities and leading investors in pre-IPO round

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Reliance Retail targets quick commerce market with JioMart, taking on Blinkit and Swiggy Instamart

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M Haziq Pandit
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JioMart quick commerce

Reliance Retail is making moves to enter the rapidly growing quick commerce sector, intensifying competition against Zomato‘s Blinkit, Swiggy Instamart, and BigBasket. The͏͏ nation’s͏͏ largest͏͏ retailer͏͏ is͏͏ now͏͏ offering͏͏ quick͏͏ commerce͏͏ services͏͏ in͏͏ select͏͏ regions͏͏ of͏͏ Navi͏͏ Mumbai͏͏ and͏͏ Bengaluru͏͏ through͏͏ its͏͏ ecommerce͏͏ platform,͏͏ JioMart,͏͏ since͏͏ last͏͏ weekend.

Product͏͏ Offerings͏͏ and͏͏ Expansion͏͏ Plans:

Initially,͏͏ it͏͏ will͏͏ sell͏͏ grocery͏͏ items͏͏ from͏͏ its͏͏ network͏͏ of͏͏ approximately͏͏ 3,000͏͏ retail͏͏ stores͏͏ across͏͏ the͏͏ country,͏͏ with͏͏ plans͏͏ to͏͏ eventually͏͏ expand͏͏ to͏͏ include͏͏ value͏͏ fashion͏͏ and͏͏ small͏͏ electronic͏͏ products͏͏ such͏͏ as͏͏ smartphones,͏͏ laptops,͏͏ and͏͏ speakers,͏͏ according͏͏ to͏͏ Economic͏͏ Times͏͏ (ET).͏͏ All͏͏ orders͏͏ will͏͏ be͏͏ fulfilled͏͏ through͏͏ its͏͏ own͏͏ network͏͏ of͏͏ stores,͏͏ including͏͏ Reliance͏͏ Digital͏͏ and͏͏ Trends.

The͏͏ retail͏͏ division͏͏ of͏͏ Reliance͏͏ Industries͏͏ aims͏͏ to͏͏ quickly͏͏ expand͏͏ its͏͏ quick͏͏ commerce͏͏ venture͏͏ across͏͏ India͏͏ by͏͏ the͏͏ end͏͏ of͏͏ this͏͏ month,͏͏ targeting͏͏ delivery͏͏ times͏͏ of͏͏ 10-15͏͏ minutes͏͏ for͏͏ most͏͏ orders͏͏ and͏͏ 30͏͏ minutes͏͏ for͏͏ the͏͏ remainder,͏͏ according͏͏ to͏͏ the͏͏ executive.͏͏ The͏͏ company͏͏ will͏͏ utilize͏͏ its͏͏ acquired͏͏ logistics͏͏ service,͏͏ Grab,͏͏ for͏͏ order͏͏ fulfillment.

Continue͏͏ Exploring:͏͏ Reliance Industries͏͏ set͏͏ to͏͏ disrupt͏͏ quick commerce market͏͏ with͏͏ JioMart’s͏͏ entry,͏͏ challenging͏͏ Blinkit,͏͏ Zepto,͏͏ and͏͏ others

No͏͏ Dark͏͏ Stores:͏͏ A͏͏ Unique͏͏ Approach

However,͏͏ Reliance͏͏ does͏͏ not͏͏ plan͏͏ to͏͏ establish͏͏ dark͏͏ stores͏͏ or͏͏ neighborhood͏͏ warehouses,͏͏ in͏͏ contrast͏͏ to͏͏ other͏͏ quick͏͏ commerce͏͏ operators,͏͏ according͏͏ to͏͏ the͏͏ executive.͏͏ Analysts͏͏ noted͏͏ that͏͏ this͏͏ could͏͏ pose͏͏ a͏͏ challenge͏͏ for͏͏ delivering͏͏ orders͏͏ within͏͏ 30͏͏ minutes͏͏ in͏͏ large͏͏ cities,͏͏ particularly͏͏ during͏͏ peak͏͏ traffic͏͏ hours.

Customer-Centric͏͏ Strategy:

To͏͏ attract͏͏ customers,͏͏ Reliance͏͏ will͏͏ not͏͏ impose͏͏ any͏͏ delivery,͏͏ platform,͏͏ or͏͏ surge͏͏ fees,͏͏ regardless͏͏ of͏͏ the͏͏ order͏͏ value.͏͏ The͏͏ company͏͏ plans͏͏ to͏͏ concentrate͏͏ primarily͏͏ on͏͏ underserved͏͏ smaller͏͏ cities͏͏ and͏͏ towns͏͏ where͏͏ quick͏͏ commerce͏͏ operators͏͏ like͏͏ Blinkit͏͏ have͏͏ yet͏͏ to͏͏ establish͏͏ a͏͏ presence,͏͏ according͏͏ to͏͏ the͏͏ executive.͏͏ In͏͏ contrast,͏͏ other͏͏ platforms͏͏ do͏͏ charge͏͏ delivery͏͏ and͏͏ platform͏͏ fees.

Reliance͏͏ plans͏͏ to͏͏ provide͏͏ a͏͏ broader͏͏ selection͏͏ of͏͏ products,͏͏ ranging͏͏ from͏͏ 10,000͏͏ to͏͏ 12,000͏͏ stock͏͏ keeping͏͏ units,͏͏ by͏͏ integrating͏͏ its͏͏ entire͏͏ store͏͏ inventory͏͏ with͏͏ the͏͏ quick͏͏ commerce͏͏ business—significantly͏͏ more͏͏ than͏͏ its͏͏ competitors.

Continue͏͏ Exploring:͏͏ Over͏͏ 30%͏͏ of͏͏ shoppers͏͏ rely͏͏ on͏͏ quick commerce for͏͏ essentials:͏͏ NielsenIQ

Long-Term͏͏ Market͏͏ Vision:

Ultimately,͏͏ the͏͏ company͏͏ aims͏͏ to͏͏ reach͏͏ 1,150͏͏ cities͏͏ across͏͏ 5,000͏͏ pin͏͏ codes͏͏ where͏͏ it͏͏ operates͏͏ grocery͏͏ stores.͏͏ The͏͏ executive͏͏ mentioned͏͏ that͏͏ the͏͏ company͏͏ will͏͏ focus͏͏ on͏͏ capturing͏͏ a͏͏ larger͏͏ share͏͏ of͏͏ the͏͏ market͏͏ in͏͏ towns͏͏ and͏͏ smaller͏͏ cities͏͏ that͏͏ have͏͏ been͏͏ previously͏͏ overlooked͏͏ by͏͏ quick͏͏ commerce͏͏ firms.

“Reliance͏͏ has͏͏ revamped͏͏ the͏͏ order͏͏ delivery͏͏ process͏͏ for͏͏ JioMart.͏͏ Previously,͏͏ orders͏͏ were͏͏ scheduled͏͏ for͏͏ delivery͏͏ within͏͏ 1-2͏͏ days͏͏ using͏͏ small͏͏ trucks͏͏ that͏͏ would͏͏ pick͏͏ up͏͏ multiple͏͏ orders͏͏ and͏͏ deliver͏͏ them͏͏ individually.͏͏ Now,͏͏ all͏͏ grocery͏͏ orders͏͏ will͏͏ utilize͏͏ quick͏͏ commerce,͏͏ with͏͏ a͏͏ single͏͏ delivery͏͏ bike͏͏ or͏͏ cycle͏͏ handling͏͏ each͏͏ order.͏͏ Each͏͏ grocery͏͏ store͏͏ will͏͏ service͏͏ a͏͏ 3͏͏ KM͏͏ radius,”͏͏ the͏͏ executive͏͏ explained.

Earlier͏͏ this͏͏ year,͏͏ the͏͏ company͏͏ sought͏͏ to͏͏ cut͏͏ JioMart’s͏͏ delivery͏͏ times͏͏ to͏͏ a͏͏ few͏͏ hours͏͏ or͏͏ within͏͏ the͏͏ same͏͏ day͏͏ through͏͏ its͏͏ hyperlocal͏͏ initiative.͏͏ It͏͏ has͏͏ now͏͏ further͏͏ optimized͏͏ the͏͏ process͏͏ to͏͏ offer͏͏ delivery͏͏ within͏͏ 10-30͏͏ minutes.͏͏ “This͏͏ has͏͏ become͏͏ a͏͏ pressing͏͏ demand͏͏ in͏͏ the͏͏ current͏͏ market,”͏͏ the͏͏ executive͏͏ noted.

Queries͏͏ directed͏͏ to͏͏ a͏͏ spokesperson͏͏ for͏͏ Reliance͏͏ Retail͏͏ received͏͏ no͏͏ response.

Industry͏͏ Insights͏͏ and͏͏ Future͏͏ Outlook:

Devangshu͏͏ Dutta,͏͏ CEO͏͏ of͏͏ the͏͏ consulting͏͏ firm͏͏ Third͏͏ Eyesight,͏͏ stated͏͏ that͏͏ Reliance͏͏ could͏͏ effectively͏͏ employ͏͏ a͏͏ blended͏͏ strategy͏͏ of͏͏ quick͏͏ commerce͏͏ deliveries͏͏ in͏͏ areas͏͏ close͏͏ to͏͏ its͏͏ stores͏͏ while͏͏ utilizing͏͏ scheduled͏͏ deliveries͏͏ for͏͏ locations͏͏ that͏͏ are͏͏ farther͏͏ away.

“Given͏͏ that͏͏ they͏͏ are͏͏ focused͏͏ on͏͏ acquiring͏͏ market͏͏ share͏͏ in͏͏ quick͏͏ commerce,͏͏ it’s͏͏ expected͏͏ that͏͏ they͏͏ will͏͏ charge͏͏ no͏͏ transaction͏͏ fees͏͏ and͏͏ provide͏͏ higher͏͏ discounts͏͏ on͏͏ products.͏͏ There͏͏ is͏͏ considerable͏͏ opportunity͏͏ for͏͏ well-funded͏͏ players͏͏ like͏͏ Reliance͏͏ to͏͏ enhance͏͏ their͏͏ presence͏͏ in͏͏ quick͏͏ commerce.͏͏ They͏͏ have͏͏ previously͏͏ supported͏͏ other͏͏ initiatives͏͏ in͏͏ the͏͏ retail͏͏ sector͏͏ once͏͏ they͏͏ proved͏͏ successful,͏͏ and͏͏ they͏͏ may͏͏ pursue͏͏ similar͏͏ strategies͏͏ again,”͏͏ Dutta͏͏ remarked.

For͏͏ fast-moving͏͏ consumer͏͏ goods͏͏ companies,͏͏ quick͏͏ commerce͏͏ represents͏͏ the͏͏ fastest-growing͏͏ channel,͏͏ comprising͏͏ 30-35%͏͏ of͏͏ total͏͏ online͏͏ sales.

Continue͏͏ Exploring:͏͏ India’s͏͏ quick commerce sales͏͏ surge͏͏ 280%͏͏ in͏͏ two͏͏ years,͏͏ expected͏͏ to͏͏ reach͏͏ USD͏͏ 9.95͏͏ Bn͏͏ by͏͏ 2029

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Nutrabay expands into ayurvedic market, launches Shilajit to broaden product range

By
M Haziq Pandit
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Nutrabay Shilajit

Sports nutrition startup Nutrabay has entered the ayurvedic market with the launch of its new product, Shilajit, as announced by co-founder Shreyans Jain.

This͏͏ launch͏͏ allows͏͏ Nutrabay͏͏ to͏͏ expand͏͏ its͏͏ target͏͏ audience͏͏ and͏͏ establish͏͏ itself͏͏ as͏͏ a͏͏ holistic͏͏ nutrition͏͏ brand.

“Although͏͏ Shilajit͏͏ is͏͏ an͏͏ ayurvedic͏͏ product,͏͏ it͏͏ is͏͏ popular͏͏ among͏͏ gym-goers.͏͏ This͏͏ launch͏͏ supports͏͏ our͏͏ vision͏͏ of͏͏ becoming͏͏ the͏͏ ultimate͏͏ destination͏͏ for͏͏ all͏͏ nutrition͏͏ needs,”͏͏ Jain͏͏ stated.

Continue͏͏ Exploring:͏͏ India’s͏͏ Ayurveda product͏͏ market͏͏ on͏͏ track͏͏ to͏͏ hit͏͏ INR͏͏ 1.2͏͏ Lakh͏͏ Crore͏͏ by͏͏ FY28:͏͏ NirogStreet͏͏ Study

Competitive͏͏ Pricing͏͏ Strategy:

He͏͏ also͏͏ mentioned͏͏ that͏͏ the͏͏ product͏͏ is͏͏ being͏͏ launched͏͏ at͏͏ a͏͏ price͏͏ 15%͏͏ lower͏͏ than͏͏ similar͏͏ products͏͏ on͏͏ the͏͏ market.͏͏ “We͏͏ are͏͏ maintaining͏͏ lower͏͏ margins͏͏ than͏͏ other͏͏ brands,͏͏ which͏͏ benefits͏͏ us͏͏ since͏͏ we͏͏ spend͏͏ significantly͏͏ less͏͏ on͏͏ marketing,”͏͏ he͏͏ added.

Diverse͏͏ Product͏͏ Portfolio:

Founded͏͏ in͏͏ 2017 by Divay Jain, Sharad Jain, and Shreyans Jain,͏͏ the͏͏ startup͏͏ currently͏͏ operates͏͏ across͏͏ three͏͏ main͏͏ categories:͏͏ sports͏͏ nutrition,͏͏ vitamins͏͏ and͏͏ minerals,͏͏ and͏͏ health͏͏ foods͏͏ and͏͏ drinks.͏͏ On͏͏ its͏͏ D2C͏͏ website,͏͏ Nutrabay͏͏ functions͏͏ as͏͏ a͏͏ marketplace,͏͏ offering͏͏ both͏͏ third-party͏͏ nutrition͏͏ products͏͏ and͏͏ its͏͏ private͏͏ labels.

The͏͏ company͏͏ generates͏͏ most͏͏ of͏͏ its͏͏ sales͏͏ through͏͏ D2C͏͏ channels͏͏ and͏͏ marketplaces.͏͏ It͏͏ has͏͏ recently͏͏ expanded͏͏ into͏͏ offline͏͏ retail͏͏ and͏͏ plans͏͏ to͏͏ launch͏͏ its͏͏ first͏͏ store͏͏ by͏͏ the͏͏ end͏͏ of͏͏ this͏͏ financial͏͏ year.

Recent͏͏ Funding͏͏ Boost:

Last͏͏ month,͏͏ Nutrabay͏͏ secured͏͏ USD͏͏ 5͏͏ million͏͏ in͏͏ a͏͏ Series͏͏ A͏͏ funding͏͏ round͏͏ led͏͏ by͏͏ RPSG͏͏ Capital͏͏ Ventures.͏͏ The͏͏ startup͏͏ reported͏͏ a͏͏ revenue͏͏ of͏͏ INR͏͏ 99͏͏ crore͏͏ for͏͏ FY24.

Continue͏͏ Exploring:͏͏ Nutrabay raises͏͏ $5͏͏ Mn͏͏ in͏͏ Pre-Series͏͏ A͏͏ funding͏͏ to͏͏ enhance͏͏ omni-channel͏͏ presence͏͏ and͏͏ drive͏͏ product͏͏ innovation

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Blinkit introduces new option for businesses to add GSTIN dring purchases

By
M Haziq Pandit
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0
Blinkit

Zomato-owned Blinkit has launched a new feature enabling businesses to add their goods and services tax identification number (GSTIN) when making purchases on the quick commerce platform.

Simplifying͏͏ Input͏͏ Tax͏͏ Credit͏͏ Claims:

This͏͏ feature͏͏ will͏͏ allow͏͏ businesses͏͏ to͏͏ effectively͏͏ claim͏͏ input͏͏ tax͏͏ credit͏͏ (ITC)͏͏ on͏͏ the͏͏ GST͏͏ paid͏͏ to͏͏ Blinkit͏͏ for͏͏ their͏͏ product͏͏ purchases.͏͏ For͏͏ those͏͏ unfamiliar,͏͏ ITC͏͏ enables͏͏ businesses͏͏ to͏͏ lower͏͏ their͏͏ tax͏͏ liability͏͏ by͏͏ reclaiming͏͏ the͏͏ GST͏͏ paid͏͏ on͏͏ their͏͏ purchases.

“We’ve͏͏ introduced͏͏ the͏͏ option͏͏ for͏͏ businesses͏͏ to͏͏ add͏͏ their͏͏ GSTIN͏͏ when͏͏ purchasing͏͏ on͏͏ Blinkit.͏͏ Many͏͏ of͏͏ our͏͏ customers͏͏ have͏͏ requested͏͏ GST͏͏ invoices,͏͏ as͏͏ this͏͏ plays͏͏ a͏͏ significant͏͏ role͏͏ in͏͏ their͏͏ decision-making͏͏ process,͏͏ particularly͏͏ for͏͏ high-value͏͏ purchases,”͏͏ stated͏͏ Blinkit͏͏ CEO͏͏ Albinder͏͏ Dhindsa͏͏ in͏͏ a͏͏ LinkedIn͏͏ post.

The͏͏ new͏͏ feature͏͏ is͏͏ likely͏͏ aimed͏͏ at͏͏ simplifying͏͏ the͏͏ bulk͏͏ purchasing͏͏ experience͏͏ on͏͏ the͏͏ platform.͏͏ Moreover,͏͏ it͏͏ allows͏͏ businesses͏͏ to͏͏ seamlessly͏͏ claim͏͏ their͏͏ ITC͏͏ on͏͏ the͏͏ GST͏͏ portal͏͏ without͏͏ the͏͏ need͏͏ to͏͏ manually͏͏ input͏͏ the͏͏ data.

Blinkit Expands͏͏ Product͏͏ Range͏͏ Beyond͏͏ Groceries:

This͏͏ new͏͏ feature͏͏ comes͏͏ as͏͏ Blinkit͏͏ continues͏͏ to͏͏ expand͏͏ its͏͏ product͏͏ range͏͏ beyond͏͏ just͏͏ groceries.͏͏ Last͏͏ month,͏͏ the͏͏ platform͏͏ started͏͏ selling͏͏ the͏͏ newly͏͏ launched͏͏ iPhone͏͏ 16͏͏ and͏͏ has͏͏ been͏͏ steadily͏͏ adding͏͏ more͏͏ electronics͏͏ to͏͏ its͏͏ offerings.

Continue͏͏ Exploring:͏͏ After͏͏ BigBasket,͏͏ Blinkit steps͏͏ up͏͏ with͏͏ 10-minute͏͏ iPhone͏͏ 16͏͏ deliveries

In͏͏ August,͏͏ the͏͏ company͏͏ introduced͏͏ a͏͏ “10-minute”͏͏ delivery͏͏ service͏͏ for͏͏ passport-size͏͏ photos͏͏ in͏͏ Delhi͏͏ and͏͏ Gurugram.͏͏ That͏͏ same͏͏ month,͏͏ it͏͏ also͏͏ enabled͏͏ users͏͏ from͏͏ select͏͏ countries͏͏ to͏͏ send͏͏ rakhis͏͏ and͏͏ gifts͏͏ to͏͏ their͏͏ siblings͏͏ in͏͏ India͏͏ for͏͏ Raksha͏͏ Bandhan.

Strong͏͏ Growth͏͏ Trajectory:

This͏͏ latest͏͏ development͏͏ comes͏͏ as͏͏ Blinkit͏͏ experiences͏͏ strong͏͏ growth͏͏ and͏͏ is͏͏ nearing͏͏ adjusted͏͏ EBITDA͏͏ breakeven͏͏ in͏͏ Q1͏͏ FY25.͏͏ The͏͏ company͏͏ reported͏͏ a͏͏ gross͏͏ order͏͏ value͏͏ (GOV)͏͏ of͏͏ INR͏͏ 4,923͏͏ Cr͏͏ for͏͏ the͏͏ quarter,͏͏ marking͏͏ a͏͏ 130%͏͏ increase͏͏ from͏͏ INR͏͏ 2,140͏͏ Cr͏͏ in͏͏ the͏͏ same͏͏ quarter͏͏ last͏͏ year.͏͏ Sequentially,͏͏ GOV͏͏ grew͏͏ by͏͏ 22.2%͏͏ from͏͏ INR͏͏ 4,027͏͏ Cr.

By͏͏ the͏͏ end͏͏ of͏͏ June͏͏ 2024,͏͏ the͏͏ quick͏͏ commerce͏͏ giant͏͏ operated͏͏ 639͏͏ dark͏͏ stores͏͏ nationwide.͏͏ Additionally,͏͏ its͏͏ average͏͏ daily͏͏ GOV͏͏ per͏͏ store͏͏ increased͏͏ to͏͏ INR͏͏ 10͏͏ Lakh͏͏ across͏͏ 639͏͏ stores͏͏ in͏͏ Q1͏͏ FY25,͏͏ compared͏͏ to͏͏ INR͏͏ 6͏͏ Lakh͏͏ from͏͏ 383͏͏ stores͏͏ in͏͏ Q1͏͏ FY24.

The͏͏ company͏͏ aims͏͏ to͏͏ expand͏͏ its͏͏ network͏͏ of͏͏ dark͏͏ stores͏͏ to͏͏ 2,000͏͏ by͏͏ the͏͏ end͏͏ of͏͏ 2026.

Continue͏͏ Exploring:͏͏ Blinkit sees͏͏ 22%͏͏ QoQ͏͏ revenue͏͏ growth͏͏ to͏͏ INR͏͏ 942͏͏ Cr͏͏ in͏͏ Q1,͏͏ adjusted͏͏ EBITDA͏͏ loss͏͏ drops͏͏ to͏͏ INR͏͏ 3͏͏ Cr

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Nykaa reports mid-twenties revenue growth in Q2; fashion vertical faces slowdown

By
M Haziq Pandit
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0
Nykaa Falguni Nayar

Nykaa, a leading beauty and fashion ecommerce platform, has reported a consolidated net revenue growth in the “mid-twenties” for the second quarter of FY25.

In͏͏ its͏͏ quarterly͏͏ update,͏͏ Nykaa͏͏ highlighted͏͏ robust͏͏ performance͏͏ in͏͏ its͏͏ beauty͏͏ division,͏͏ with͏͏ both͏͏ net͏͏ revenue͏͏ and͏͏ net͏͏ sales͏͏ value͏͏ (NSV)͏͏ growing͏͏ in͏͏ the͏͏ mid-20%͏͏ range.͏͏ The͏͏ company͏͏ further͏͏ mentioned͏͏ that͏͏ gross͏͏ merchandise͏͏ value͏͏ (GMV)͏͏ saw͏͏ an͏͏ even͏͏ stronger͏͏ increase.

“Strong͏͏ performance͏͏ was͏͏ observed͏͏ across͏͏ the͏͏ omnichannel͏͏ retail͏͏ business,͏͏ owned͏͏ brands,͏͏ and͏͏ eB2B͏͏ distribution͏͏ ahead͏͏ of͏͏ the͏͏ festive͏͏ season.͏͏ Dot͏͏ &͏͏ Key,͏͏ a͏͏ new͏͏ age͏͏ skincare͏͏ brand,͏͏ continues͏͏ its͏͏ rapid͏͏ growth,͏͏ with͏͏ Nykaa͏͏ increasing͏͏ its͏͏ ownership͏͏ to͏͏ 90%͏͏ at͏͏ the͏͏ start͏͏ of͏͏ this͏͏ financial͏͏ year,”͏͏ the͏͏ Falguni͏͏ Nayar-led͏͏ company͏͏ stated.

Continue͏͏ Exploring:͏͏ Nykaa completes͏͏ acquisition͏͏ of͏͏ additional͏͏ 39%͏͏ stake͏͏ in͏͏ Dot͏͏ &͏͏ Key͏͏ for͏͏ INR͏͏ 265.3͏͏ Cr

Underperformance͏͏ in͏͏ Fashion Segment:

However,͏͏ Nykaa’s͏͏ fashion͏͏ vertical͏͏ continues͏͏ to͏͏ underperform,͏͏ with͏͏ NSV͏͏ growth͏͏ in͏͏ the͏͏ low͏͏ teens.͏͏ The͏͏ overall͏͏ revenue͏͏ increase͏͏ for͏͏ the͏͏ segment͏͏ reached͏͏ the͏͏ low͏͏ 20%͏͏ range,͏͏ driven͏͏ in͏͏ part͏͏ by͏͏ the͏͏ acquisition͏͏ of͏͏ its͏͏ content͏͏ platform,͏͏ Little͏͏ Black͏͏ Book͏͏ (LBB),͏͏ the͏͏ company͏͏ stated.

Notably,͏͏ Nykaa͏͏ opted͏͏ to͏͏ merge͏͏ Little͏͏ Black͏͏ Book͏͏ (LBB)͏͏ with͏͏ Nykaa͏͏ Fashion͏͏ earlier͏͏ this͏͏ year.

Optimism͏͏ for͏͏ Second͏͏ Half͏͏ Recovery:

The͏͏ company͏͏ indicated͏͏ a͏͏ slight͏͏ slowdown͏͏ in͏͏ consumption͏͏ during͏͏ the͏͏ first͏͏ half͏͏ of͏͏ FY25͏͏ but͏͏ remains͏͏ optimistic͏͏ about͏͏ a͏͏ demand͏͏ rebound͏͏ in͏͏ the͏͏ second͏͏ half,͏͏ driven͏͏ by͏͏ the͏͏ festive͏͏ and͏͏ wedding͏͏ seasons.

Nykaa’s͏͏ fashion͏͏ vertical͏͏ has͏͏ struggled͏͏ in͏͏ recent͏͏ quarters͏͏ due͏͏ to͏͏ increasing͏͏ competition.͏͏ In͏͏ Q1͏͏ FY25,͏͏ the͏͏ GMV͏͏ of͏͏ the͏͏ fashion͏͏ segment͏͏ grew͏͏ by͏͏ just͏͏ 15%͏͏ year-on-year͏͏ (YoY),͏͏ reaching͏͏ INR͏͏ 774.1͏͏ crore.

Overall,͏͏ the͏͏ company’s͏͏ consolidated͏͏ net͏͏ profit͏͏ soared͏͏ by͏͏ almost͏͏ 152%͏͏ to͏͏ INR͏͏ 13.6͏͏ crore͏͏ in͏͏ the͏͏ first͏͏ quarter͏͏ of͏͏ FY25,͏͏ compared͏͏ to͏͏ INR͏͏ 5.4͏͏ crore͏͏ in͏͏ the͏͏ same͏͏ period͏͏ last͏͏ year.͏͏ Additionally,͏͏ operating͏͏ revenue͏͏ rose͏͏ 22.8%͏͏ to͏͏ INR͏͏ 1,746.1͏͏ crore͏͏ in͏͏ the͏͏ reported͏͏ quarter,͏͏ up͏͏ from͏͏ INR͏͏ 1,421.8͏͏ crore͏͏ in͏͏ Q1͏͏ FY24.

Continue͏͏ Exploring:͏͏ Nykaa’s͏͏ Q1͏͏ FY25͏͏ net͏͏ profit͏͏ soars͏͏ 152%͏͏ to͏͏ INR͏͏ 13.6͏͏ Cr;͏͏ revenue͏͏ up͏͏ 22.8%

Middle͏͏ East͏͏ Expansion:

Nykaa͏͏ aims͏͏ to͏͏ boost͏͏ its͏͏ revenue͏͏ by͏͏ expanding͏͏ into͏͏ the͏͏ Middle͏͏ East.͏͏ To͏͏ support͏͏ this͏͏ initiative,͏͏ it͏͏ has͏͏ recently͏͏ established͏͏ two͏͏ new͏͏ subsidiaries͏͏ in͏͏ Qatar͏͏ and͏͏ Saudi͏͏ Arabia͏͏ under͏͏ the͏͏ brand͏͏ name͏͏ Nysaa.

Nykaa’s͏͏ shares͏͏ closed͏͏ 0.9%͏͏ higher͏͏ at͏͏ INR͏͏ 193.95͏͏ on͏͏ the͏͏ BSE͏͏ during͏͏ Monday’s͏͏ trading͏͏ session,͏͏ despite͏͏ a͏͏ significant͏͏ downturn͏͏ in͏͏ new-age͏͏ tech͏͏ stocks.

Continue͏͏ Exploring:͏͏ Nykaa strengthens͏͏ GCC͏͏ footprint͏͏ with͏͏ new͏͏ subsidiary͏͏ Nysaa͏͏ Trading͏͏ LLC͏͏ in͏͏ Saudi͏͏ Arabia

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Domestic alcoholic beverages sector to see 8-10% revenue growth in FY25: ICRA Report

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M Haziq Pandit
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alcoholic beverages

The domestic alcoholic beverages sector is expected to see 8-10% revenue growth in FY25, driven by strong demand for beer, a revival in spirit consumption, and an increasing consumer preference for premium products, according to a report.

According͏͏ to͏͏ the͏͏ credit͏͏ rating͏͏ agency͏͏ ICRA,͏͏ the͏͏ revenue͏͏ growth͏͏ in͏͏ FY25͏͏ will͏͏ also͏͏ be͏͏ bolstered͏͏ by͏͏ price͏͏ hikes͏͏ granted͏͏ by͏͏ several͏͏ state͏͏ governments͏͏ in͏͏ the͏͏ current͏͏ fiscal͏͏ year.

Spirits͏͏ Industry͏͏ Reports͏͏ 9%͏͏ Revenue͏͏ Growth͏͏ in͏͏ Q1͏͏ FY25:

In͏͏ Q1͏͏ FY25,͏͏ the͏͏ spirits͏͏ industry͏͏ recorded͏͏ a͏͏ 9%͏͏ year-on-year͏͏ increase͏͏ in͏͏ revenues,͏͏ bolstered͏͏ by͏͏ a͏͏ 5-7%͏͏ improvement͏͏ in͏͏ realisations,͏͏ with͏͏ volumes͏͏ growing͏͏ by͏͏ 2-4%.

The͏͏ report͏͏ indicates͏͏ that͏͏ the͏͏ beer͏͏ industry͏͏ saw͏͏ a͏͏ revenue͏͏ growth͏͏ of͏͏ 12%͏͏ in͏͏ Q1͏͏ FY25,͏͏ driven͏͏ by͏͏ a͏͏ 3-5%͏͏ increase͏͏ in͏͏ volumes͏͏ and͏͏ a͏͏ 7-9%͏͏ rise͏͏ in͏͏ realisations.

Continue͏͏ Exploring:͏͏ India’s͏͏ alcoholic beverage market͏͏ surges͏͏ to͏͏ record͏͏ highs,͏͏ premiumization͏͏ and͏͏ home͏͏ consumption͏͏ drive͏͏ growth

Volume͏͏ Growth͏͏ Expectations͏͏ Rise͏͏ for͏͏ FY25:

Kinjal͏͏ Shah,͏͏ SVP͏͏ and͏͏ Co-Group͏͏ Head͏͏ of͏͏ Corporate͏͏ Ratings͏͏ at͏͏ ICRA,͏͏ mentioned͏͏ that͏͏ the͏͏ volume͏͏ growth͏͏ in͏͏ the͏͏ alcoholic͏͏ beverages͏͏ industry͏͏ is͏͏ expected͏͏ to͏͏ improve͏͏ to͏͏ 5-6%͏͏ in͏͏ FY25,͏͏ up͏͏ from͏͏ 4%͏͏ in͏͏ FY24.

ICRA͏͏ anticipates͏͏ that͏͏ spirits͏͏ volumes͏͏ will͏͏ grow͏͏ at͏͏ a͏͏ moderate͏͏ pace͏͏ of͏͏ 2-4%͏͏ in͏͏ FY25,͏͏ bolstered͏͏ by͏͏ favourable͏͏ demographics͏͏ and͏͏ a͏͏ limited͏͏ increase͏͏ in͏͏ taxes͏͏ expected͏͏ for͏͏ the͏͏ year.

“We͏͏ anticipate͏͏ moderate͏͏ growth͏͏ of͏͏ 5-7%͏͏ for͏͏ beer͏͏ volumes͏͏ in͏͏ FY25,͏͏ considering͏͏ a͏͏ high͏͏ base,”͏͏ said͏͏ Shah.

Manufacturers͏͏ experienced͏͏ a͏͏ rise͏͏ in͏͏ grain͏͏ costs͏͏ in͏͏ the͏͏ first͏͏ half͏͏ of͏͏ FY25,͏͏ driven͏͏ by͏͏ a͏͏ 20-25%͏͏ increase͏͏ in͏͏ non-basmati͏͏ rice͏͏ prices,͏͏ while͏͏ barley͏͏ prices͏͏ remained͏͏ relatively͏͏ stable.

However,͏͏ non-basmati͏͏ rice͏͏ prices͏͏ have͏͏ started͏͏ to͏͏ soften͏͏ since͏͏ July͏͏ 2024.

Additionally,͏͏ the͏͏ costs͏͏ of͏͏ packaging͏͏ materials,͏͏ specifically͏͏ glass͏͏ bottles,͏͏ decreased͏͏ this͏͏ year͏͏ due͏͏ to͏͏ a͏͏ significant͏͏ correction͏͏ in͏͏ soda͏͏ ash͏͏ prices.

“This,͏͏ along͏͏ with͏͏ the͏͏ price͏͏ hikes͏͏ implemented͏͏ by͏͏ various͏͏ state͏͏ governments͏͏ at͏͏ the͏͏ start͏͏ of͏͏ the͏͏ fiscal͏͏ year,͏͏ is͏͏ anticipated͏͏ to͏͏ maintain͏͏ the͏͏ operating͏͏ profit͏͏ margin͏͏ (OPM)͏͏ for͏͏ ICRA’s͏͏ sample͏͏ set͏͏ of͏͏ companies͏͏ at͏͏ 12-13%͏͏ in͏͏ FY25,”͏͏ Shah͏͏ added.

Continue͏͏ Exploring:͏͏ Centre͏͏ targets͏͏ $1͏͏ billion͏͏ exports͏͏ of͏͏ alcoholic beverages as͏͏ global͏͏ demand͏͏ grows

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Reliance’s Tira unveils luxury skincare brand Augustinus Bader in India

By
M Haziq Pandit
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0
Reliance Tira Augustinus Bader

Reliance‘s beauty platform Tira has introduced the global luxury skincare and haircare brand Augustinus Bader in India.

Exclusively͏͏ available͏͏ on͏͏ Tira,͏͏ the͏͏ luxury͏͏ brand͏͏ being͏͏ launched͏͏ in͏͏ India͏͏ was͏͏ founded͏͏ by͏͏ renowned͏͏ stem͏͏ cell͏͏ and͏͏ biomedical͏͏ scientist,͏͏ Professor͏͏ Augustinus͏͏ Bader.

The͏͏ company͏͏ stated͏͏ that͏͏ the͏͏ Augustinus͏͏ Bader͏͏ collection͏͏ is͏͏ exclusively͏͏ available͏͏ on͏͏ Tira,͏͏ both͏͏ online͏͏ and͏͏ at͏͏ select͏͏ Tira͏͏ stores͏͏ in͏͏ Mumbai,͏͏ Delhi,͏͏ Hyderabad,͏͏ and͏͏ Bangalore.

Expert͏͏ Guidance͏͏ for͏͏ Tailored͏͏ Skincare Solutions:

In͏͏ addition͏͏ to͏͏ offering͏͏ the͏͏ collection,͏͏ the͏͏ company͏͏ will͏͏ provide͏͏ expert͏͏ guidance͏͏ to͏͏ assist͏͏ customers͏͏ in͏͏ choosing͏͏ products͏͏ suited͏͏ to͏͏ their͏͏ specific͏͏ skincare͏͏ needs.

“At͏͏ Tira,͏͏ our͏͏ goal͏͏ is͏͏ to͏͏ bring͏͏ the͏͏ finest͏͏ global͏͏ and͏͏ homegrown͏͏ brands͏͏ to͏͏ Indian͏͏ consumers.͏͏ Introducing͏͏ Augustinus͏͏ Bader͏͏ in͏͏ India͏͏ marks͏͏ another͏͏ step͏͏ in͏͏ our͏͏ mission͏͏ to͏͏ offer͏͏ luxury,͏͏ high-performance͏͏ skincare͏͏ that͏͏ appeals͏͏ to͏͏ India’s͏͏ growing͏͏ community͏͏ of͏͏ beauty͏͏ enthusiasts,”͏͏ said͏͏ Bhakti͏͏ Modi,͏͏ Co-Founder͏͏ of͏͏ Tira.

Continue͏͏ Exploring:͏͏ Reliance Retail’s Tira launches͏͏ skincare brand͏͏ ‘Akind’͏͏ Co-Founded͏͏ by͏͏ Mira͏͏ Kapoor

“We͏͏ are͏͏ thrilled͏͏ to͏͏ bring͏͏ Augustinus͏͏ Bader,͏͏ our͏͏ science-driven͏͏ skincare͏͏ line͏͏ that͏͏ redefines͏͏ luxury͏͏ and͏͏ efficacy,͏͏ to͏͏ India.͏͏ Tira,͏͏ with͏͏ its͏͏ deep͏͏ understanding͏͏ of͏͏ the͏͏ Indian͏͏ beauty͏͏ market,͏͏ was͏͏ the͏͏ ideal͏͏ partner͏͏ for͏͏ our͏͏ entry͏͏ into͏͏ the͏͏ country.͏͏ This͏͏ exclusive͏͏ partnership͏͏ marks͏͏ a͏͏ significant͏͏ milestone͏͏ for͏͏ us͏͏ as͏͏ we͏͏ expand͏͏ into͏͏ one͏͏ of͏͏ the͏͏ world’s͏͏ most͏͏ dynamic͏͏ beauty͏͏ markets,”͏͏ said͏͏ Charles͏͏ Rosier,͏͏ Co-Founder͏͏ and͏͏ CEO͏͏ of͏͏ Augustinus͏͏ Bader.

India’s͏͏ Booming͏͏ Beauty͏͏ Market͏͏ Set͏͏ for͏͏ Rapid͏͏ Growth:

India’s͏͏ beauty͏͏ market͏͏ is͏͏ set͏͏ to͏͏ expand͏͏ to͏͏ $20͏͏ billion͏͏ by͏͏ 2025,͏͏ with͏͏ the͏͏ premium͏͏ luxury͏͏ segment͏͏ expected͏͏ to͏͏ grow͏͏ by͏͏ 15%.͏͏ Euromonitor͏͏ estimates͏͏ that͏͏ luxury͏͏ beauty͏͏ retailers͏͏ and͏͏ online͏͏ platforms͏͏ are͏͏ striving͏͏ to͏͏ improve͏͏ customer͏͏ experience͏͏ by͏͏ embracing͏͏ clean͏͏ beauty,͏͏ inclusive͏͏ skincare,͏͏ and͏͏ AI-powered͏͏ cosmetic͏͏ solutions.

According͏͏ to͏͏ data͏͏ from͏͏ Research͏͏ and͏͏ Markets,͏͏ the͏͏ skincare͏͏ products͏͏ market͏͏ in͏͏ India͏͏ was͏͏ valued͏͏ at͏͏ $6.53͏͏ billion͏͏ in͏͏ 2022͏͏ and͏͏ is͏͏ projected͏͏ to͏͏ reach͏͏ $8.84͏͏ billion͏͏ by͏͏ 2027,͏͏ reflecting͏͏ a͏͏ compounded͏͏ annual͏͏ growth͏͏ rate͏͏ (CAGR)͏͏ of͏͏ 6.25%.

In͏͏ a͏͏ booming͏͏ market,͏͏ Tira͏͏ competes͏͏ with͏͏ beauty͏͏ product͏͏ retailers͏͏ such͏͏ as͏͏ Nykaa,͏͏ Tata͏͏ Cliq͏͏ Palette,͏͏ and͏͏ Myntra.͏͏ In͏͏ addition͏͏ to͏͏ its͏͏ online͏͏ presence,͏͏ Tira͏͏ has͏͏ launched͏͏ a͏͏ dozen͏͏ offline͏͏ stores͏͏ in͏͏ major͏͏ cities.

Continue͏͏ Exploring:͏͏ Reliance Retail unveils͏͏ KIKO͏͏ Milano͏͏ on͏͏ Tira,͏͏ boosting͏͏ beauty͏͏ portfolio

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Watch brand Rado expects to end 2024 with double-digit growth in India

By
Ashutosh Dubey
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Rado Watch, Luxary,
Watch brand Rado expects to end 2024 with double-digit growth in India

Swiss watch brand Rado eyes remarkable double-digit growth in India, its biggest market, by the end of 2024.

In an interview with ETRetail, Rado’s Global CEO, Adrian Bosshard stated, “We are currently at a high one-digit growing level. And I strongly believe that we will be able to end the year with two-digit growth. That means, after a record year in 2023 we are again able to make a step”

Continue͏͏ Exploring:͏͏ Jaipur Watch Company expands into women’s segment, eyes 20% sales contribution

To meet the expected growth in sales, Rado has taken steps to ensure its products are widely available during festive season, especially Diwali. “We have prepared very efficiently,” said CEO Bosshard. “The biggest challenge is having enough goods to meet the massive demand during this period.”

India emerges as top market for Rado since 2023

Earlier while talking with ETRetail in February 2024, CEO Bosshard shared that Rado’s sales jumped 23% in 2023, with India overtaking China as its top market. He stated, “It’s absolutely clear that we will undertake everything to keep our position in this country. Further, I’m convinced that for the global watch industry, India, in the upcoming years, will take a much more important position.”

Furthermore, he highlighted the brand’s strong loyalty among Indian consumers globally. Bosshard said, “Indian customers are all over the world. We see them buying Rado in Australia, Dubai, Europe, the US, and the UK because they have had a good experience and trust in the Rado brand.”

Continue͏͏ Exploring:͏͏ Indian luxury beauty market to reach $1.6 bn by 2028: Report

As the brand leads the market for watches priced between INR 100,000 and INR 500,000. It is also expanding its reach, with remarkable growth in smaller cities of the country. Recently, Rado unveiled its first duty-free store at Delhi and has an intention to open some more stores in various airports shortly. 

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Starbucks India partners with Bombay Sweet Shop to introduce exclusive festive culinary collection

By
Ashutosh Dubey
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0
Starbucks India, Bombay Sweet Shop
Starbucks India partners with Bombay Sweet Shop to introduce exclusive festive culinary collection

Starbucks India is all set to celebrate the season by introducing a new range of drinks and food items inspired by Indian flavour profile such as Saffron Pistachio Latte and Saffron Masala Chai, along with delectable Indian desserts made in collaboration with Bombay Sweet Shop for a short period.

Starbucks offers local taste with range of Indian flavours

According to Restaurant India.in, recently, Sushant Dash, CEO of Tata Starbucks, shared, “At Starbucks, we have always celebrated India’s vibrant cultural heritage. The festive season is a time of joy, warmth, and togetherness, and at Starbucks India, we are honoured to create new moments that will celebrate India’s coffee and food culture.”

Continue͏͏ Exploring:͏͏ Tata’s Trent launches Zudio Beauty to compete in mass-priced beauty segment

Interestingly, The coffee major launches its festival menu with saffron-flavoured beverages starting at Rs 395. The collection comes with three stand-out drinks, the Saffron Pistachio Latte among which the drink is prepared with Diwali Blend espresso, saffron-flavoured cream and rose crumbs on top. The other two are Cold Brew and Masala Chai.

Furthermore, Starbucks has collaborated with Bombay Sweet Shop to create mithai-inspired desserts. Some of the desserts inspired from the old flavours of India given a modern twist are Gulab Jamun Trifle, Khubani Barfi Bar, and White Choco Kaju Nankhatai. These combine perfectly with Starbucks festive drinks, as the classic Indian flavours have been styled.

Regarding the partnership, Sameer Seth, Founder and CEO of Hunger Inc. Hospitality, which owns Bombay Sweet Shop, stated, “Indian sweets and mithai are at the heart of every Diwali celebration. This partnership beautifully combines the essence of mithai with contemporary flavours, offering a unique experience that celebrates both tradition and innovation.”

Continue͏͏ Exploring:͏͏ Online festive sales in India surge 26% to over INR 54,500 Cr, driven by mobile phones and electronics

Coffee Giant unveils gift hampers with local touch for festive season

Additionally, Starbucks India has brought in gift hampers, specially curated to celebrate the festivities, priced at Rs 870. The hampers will include a Bearista Plushie in traditional clothes, supply of Diwali Blend coffee, and dry fruits and nut fudge-all put together to make a fun way to share the festive spirit.

Moreover, besides opening the stores across the country, Starbucks also empowers Indian communities through its “Empowering Girls and Young Women” program. For every new store opened, Starbucks funds the education of a girl, with ambitions to empower 1,200 girls by March 2025. In this festive season, the Seattle-based coffee giant will celebrate the culture of India by gifting presents to the community.

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High taxes hinder growth of India’s carbonated soft drinks market: ICRIER Report

By
M Haziq Pandit
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0
soft drinks
Soft Drinks

India’s carbonated soft drinks segment is falling short of its growth potential due to obstacles like high taxes under the GST regime, despite government initiatives such as ‘Make in India’ and ‘Aatmanirbhar Bharat,’ according to a report from the economic think tank ICRIER. World͏͏ Bank͏͏ data͏͏ reveals͏͏ that͏͏ India͏͏ has͏͏ one͏͏ of͏͏ the͏͏ highest͏͏ total͏͏ tax͏͏ rates͏͏ on͏͏ sugar-sweetened͏͏ beverages͏͏ (SSBs),͏͏ with͏͏ carbonated͏͏ soft͏͏ drinks͏͏ (CSDs)͏͏ facing͏͏ a͏͏ total͏͏ tax͏͏ rate͏͏ of͏͏ 40%͏͏ as͏͏ of͏͏ 2023.

Global͏͏ Comparison͏͏ Highlights͏͏ Tax͏͏ Disparities:

According͏͏ to͏͏ the͏͏ report͏͏ titled͏͏ ‘Carbonated͏͏ Beverages͏͏ Industry͏͏ in͏͏ India:͏͏ Tax͏͏ Policy͏͏ to͏͏ Promote͏͏ Growth,͏͏ Innovation͏͏ and͏͏ Investment’,͏͏ more͏͏ than͏͏ 90%͏͏ of͏͏ countries͏͏ that͏͏ impose͏͏ taxes͏͏ on͏͏ sugar-sweetened͏͏ beverages͏͏ (SSBs)͏͏ have͏͏ a͏͏ lower͏͏ tax͏͏ rate͏͏ than͏͏ India.

Consumers,͏͏ both͏͏ in͏͏ India͏͏ and͏͏ internationally,͏͏ are͏͏ increasingly͏͏ opting͏͏ for͏͏ low-sugar͏͏ and͏͏ no-added-sugar͏͏ beverage͏͏ options͏͏ due͏͏ to͏͏ rising͏͏ health͏͏ awareness.

The͏͏ report͏͏ noted,͏͏ “The͏͏ CSD͏͏ market͏͏ is͏͏ evolving͏͏ from͏͏ traditional͏͏ high-sugar͏͏ carbonated͏͏ beverages͏͏ to͏͏ low-sugar͏͏ and͏͏ fruit-flavoured͏͏ drinks,͏͏ as͏͏ well͏͏ as͏͏ zero-sugar͏͏ aerated͏͏ water,͏͏ reflecting͏͏ consumers’͏͏ shift͏͏ towards͏͏ healthier͏͏ choices͏͏ and͏͏ government͏͏ initiatives͏͏ like͏͏ layered-sugar-based͏͏ taxes.”

Continue͏͏ Exploring:͏͏ Over͏͏ 50%͏͏ of͏͏ Indian͏͏ households͏͏ consuming͏͏ soft drinks;͏͏ demand͏͏ set͏͏ to͏͏ surge͏͏ with͏͏ intensifying͏͏ heat:͏͏ Report

Producers͏͏ globally͏͏ are͏͏ reformulating͏͏ their͏͏ products͏͏ to͏͏ satisfy͏͏ consumer͏͏ demand,͏͏ aided͏͏ by͏͏ government͏͏ policies͏͏ and͏͏ a͏͏ range͏͏ of͏͏ fiscal͏͏ and͏͏ non-fiscal͏͏ incentives.͏͏ In͏͏ India,͏͏ manufacturers͏͏ are͏͏ likewise͏͏ reviewing͏͏ their͏͏ product͏͏ lines͏͏ and͏͏ launching͏͏ offerings͏͏ like͏͏ zero-calorie͏͏ and͏͏ low͏͏ or͏͏ no-sugar͏͏ options.

The͏͏ report͏͏ stated,͏͏ “However,͏͏ despite͏͏ government͏͏ initiatives͏͏ such͏͏ as͏͏ ‘Make͏͏ in͏͏ India‘͏͏ and͏͏ ‘Aatmanirbhar͏͏ Bharat’,͏͏ the͏͏ CSD͏͏ segment͏͏ is͏͏ struggling͏͏ to͏͏ achieve͏͏ its͏͏ growth͏͏ potential͏͏ in͏͏ scale͏͏ expansion͏͏ due͏͏ to͏͏ challenges͏͏ like͏͏ high͏͏ tax͏͏ rates͏͏ and͏͏ compensation͏͏ cess͏͏ under͏͏ the͏͏ GST͏͏ regime,͏͏ which͏͏ has͏͏ been͏͏ in͏͏ place͏͏ since͏͏ 2017.”

At͏͏ present,͏͏ carbonated͏͏ or͏͏ aerated͏͏ beverages͏͏ fall͏͏ under͏͏ the͏͏ highest͏͏ GST͏͏ slab͏͏ of͏͏ 28%,͏͏ along͏͏ with͏͏ a͏͏ compensation͏͏ cess͏͏ of͏͏ 12%,͏͏ regardless͏͏ of͏͏ their͏͏ sugar͏͏ or͏͏ fruit͏͏ content.

The͏͏ ICRIER͏͏ report͏͏ stated,͏͏ “The͏͏ 40%͏͏ tax,͏͏ regardless͏͏ of͏͏ sugar͏͏ content,͏͏ is͏͏ hindering͏͏ innovative͏͏ companies͏͏ from͏͏ developing͏͏ low-sugar͏͏ options͏͏ and͏͏ scaling͏͏ up,͏͏ while͏͏ also͏͏ discouraging͏͏ existing͏͏ firms͏͏ from͏͏ investing͏͏ in͏͏ product͏͏ reformulation.”

The͏͏ report,͏͏ referencing͏͏ cross-country͏͏ comparative͏͏ data͏͏ on͏͏ SSB͏͏ taxes͏͏ compiled͏͏ by͏͏ the͏͏ World͏͏ Bank,͏͏ highlighted͏͏ that͏͏ India͏͏ has͏͏ one͏͏ of͏͏ the͏͏ highest͏͏ total͏͏ tax͏͏ rates͏͏ for͏͏ carbonated͏͏ soft͏͏ drinks͏͏ (CSDs),͏͏ set͏͏ at͏͏ 40%͏͏ as͏͏ of͏͏ 2023.͏͏ Furthermore,͏͏ more͏͏ than͏͏ 90%͏͏ of͏͏ countries͏͏ imposing͏͏ taxes͏͏ on͏͏ SSBs͏͏ have͏͏ lower͏͏ rates͏͏ than͏͏ India.

India’s͏͏ Carbonated͏͏ Soft͏͏ Drinks͏͏͏ Market:͏͏ Room͏͏ for͏͏ Growth

The͏͏ Indian͏͏ carbonated͏͏ soft͏͏ drinks͏͏ (CSDs)͏͏ market͏͏ is͏͏ relatively͏͏ small,͏͏ generating͏͏ revenue͏͏ of͏͏ USD͏͏ 18.25͏͏ billion͏͏ in͏͏ 2022,͏͏ with͏͏ a͏͏ compound͏͏ annual͏͏ growth͏͏ rate͏͏ (CAGR)͏͏ of͏͏ 19.8%͏͏ from͏͏ 2017͏͏ to͏͏ 2022.

The͏͏ report͏͏ highlighted͏͏ that͏͏ India͏͏ is͏͏ one͏͏ of͏͏ the͏͏ largest͏͏ global͏͏ producers͏͏ of͏͏ fruits͏͏ such͏͏ as͏͏ mango,͏͏ banana,͏͏ guava,͏͏ papaya,͏͏ sapota,͏͏ pomegranate,͏͏ and͏͏ lime,͏͏ as͏͏ well͏͏ as͏͏ sugar,͏͏ which͏͏ are͏͏ often͏͏ used͏͏ in͏͏ the͏͏ CSD͏͏ category.͏͏ It͏͏ stated,͏͏ “There͏͏ is͏͏ potential͏͏ for͏͏ greater͏͏ utilisation͏͏ of͏͏ these͏͏ resources͏͏ if͏͏ appropriate͏͏ policies͏͏ are͏͏ implemented͏͏ to͏͏ promote͏͏ their͏͏ use͏͏ in͏͏ CSDs.”

However,͏͏ India͏͏ does͏͏ not͏͏ rank͏͏ among͏͏ the͏͏ leading͏͏ global͏͏ manufacturers͏͏ of͏͏ carbonated͏͏ soft͏͏ drinks͏͏ (CSDs),͏͏ and͏͏ the͏͏ country’s͏͏ CSD͏͏ product͏͏ processing͏͏ capacity͏͏ is͏͏ far͏͏ from͏͏ reaching͏͏ its͏͏ potential.͏͏ Furthermore,͏͏ the͏͏ variety͏͏ of͏͏ offerings͏͏ is͏͏ limited͏͏ compared͏͏ to͏͏ other͏͏ developing͏͏ nations͏͏ such͏͏ as͏͏ Thailand͏͏ and͏͏ the͏͏ Philippines.

As͏͏ a͏͏ result,͏͏ India͏͏ lags͏͏ behind͏͏ several͏͏ developing͏͏ nations͏͏ in͏͏ revenue͏͏ from͏͏ the͏͏ CSD͏͏ market.͏͏ This͏͏ shortfall͏͏ has͏͏ left͏͏ the͏͏ sector’s͏͏ potential͏͏ to͏͏ attract͏͏ investment͏͏ and͏͏ create͏͏ jobs—particularly͏͏ in͏͏ Tier͏͏ 2͏͏ and͏͏ Tier͏͏ 3͏͏ cities—largely͏͏ untapped.

“This͏͏ is͏͏ primarily͏͏ due͏͏ to͏͏ the͏͏ classification͏͏ of͏͏ this͏͏ sector͏͏ as͏͏ a͏͏ major͏͏ source͏͏ of͏͏ tax͏͏ revenue͏͏ by͏͏ states͏͏ through͏͏ state͏͏ excise,͏͏ and͏͏ now͏͏ by͏͏ the͏͏ Goods͏͏ and͏͏ Services͏͏ Tax͏͏ (GST)͏͏ Council,͏͏ which͏͏ has͏͏ imposed͏͏ high͏͏ taxes͏͏ and͏͏ cess͏͏ on͏͏ CSDs,”͏͏ the͏͏ report͏͏ stated.

Continue͏͏ Exploring:͏͏ Cola͏͏ price͏͏ war͏͏ intensifies͏͏ as͏͏ Reliance͏͏ expands͏͏ Campa͏͏ soft drinks at͏͏ disruptive͏͏ prices

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