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How Bakers Circle Became the Walmart for F&B Brands: A Deep Dive into Growth, Competition, and Market Dynamics

By
M Haziq Pandit
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0
Bakers Circle

Bakers Circle, the frozen dough and confectionery manufacturer based in New Delhi, is not just another bakery supplier. The company, founded by Dev Lall in 2001, has evolved from a retail bakery concept to a B2B powerhouse that serves brands across India, East Africa, and the Middle East. As the company scales, it is becoming what Lall describes as the “Walmart for the F&B brands,” offering a wide array of bakery and confectionery products to a diverse client base.

“We started as a retail concept, but quickly realized that deep pockets were necessary to scale in India. What we did master early on was the cold chain. That’s when we pivoted to a B2B model, becoming a manufacturing entity for these products,” says Lall, reflecting on the early days of Bakers Circle. 

This shift has paid off. Today, Bakers Circle covers six product categories, including frozen dough, baked frozen breads, desserts, and even a savory line. “We offer about 84 SKUs and cover the whole spectrum. This has made us a giant for our customers, allowing them to rely on us for everything from one chocolate cake to a full muffin range,” explains Lall.

Rise of Outsourcing in India’s F&B Sector

Lall attributes much of the company’s growth to the outsourcing trend in India’s F&B sector, particularly with the rise of quick service restaurants (QSRs). “Hotels and restaurants used to do everything in-house, but with the advent of QSRs in India, outsourcing became the name of the game. We were early starters and pioneers in this space,” says Lall.

At one point, QSRs made up 95% of Bakers Circle’s business. However, as the QSR market in India plateaued, Bakers Circle diversified into exports and the Horeca segment. “QSRs now make up about 35-40% of our business, while exports account for 25-28%. We’ve become the new source for products like cheesecakes in the Middle East,” Lall notes.

Continue Exploring: Belgian bakery brand Le Pain Quotidien re-enters Indian market, plans 100 outlets by 2035

Market Dynamics and Competition

Despite the challenges in the domestic market, particularly with smaller players entering the scene, Bakers Circle continues to dominate the frozen dough and bakery segment in India. Lall estimates that Bakers Circle holds roughly 75-80% of the market share. “We’ve always been profitable, even through tough times like COVID. Last year, we grew 14%, and this year, we’re aiming for 21% revenue growth,” he shares.

One of the most exciting trends Lall sees is the growing sophistication of Indian consumers, particularly in Tier 1 and Tier 2 cities. “The younger generation has learned to decipher a crescent roll from a croissant and a Hivala cake from a real New York-style cheesecake. This is really exciting, and there’s no turning back on this,” says Lall. 

However, the company faces seasonal challenges, such as the impact of religious festivals like Navratri, which can significantly affect sales. “When Navratras hit in September, it can wipe out your entire season. You effectively lose that period,” Lall remains optimistic this season and the sales to pick up post-Diwali till new year. 

“Our growth this year is going to be about 21% in revenue, with our volume count up only 7-8%. In terms of profitability, we expect EBITDA to be in the low double digits, around 12-14%. The rest of the growth is driven by inflation and higher-value products being sold,” Lall explains.

Exports in The Middle East 

While the domestic market presents its own set of challenges, Lall sees immense potential in the Middle East. “The Middle East has a consumption rate that is 2x of India. For every five or seven desserts I sell in India, I get the same rupee effect selling one dessert there,” Lall shares. He highlights that the region’s preference for premium products, such as fresh cream over non-dairy alternatives, is driving significant growth for Bakers Circle.

Looking ahead, Lall is optimistic about the company’s continued expansion into new markets and product categories. “We expect the Horeca segment to climb in the next year and a half, while exports, particularly to the Middle East and East Africa, will continue to buffer our growth,” he predicts.

Road Ahead

With revenue expected to hit INR 110 crore this year, Bakers Circle remains focused on its core strengths of providing high-quality, ready-to-use bakery and confectionery products to its clients, while also expanding into new markets and product categories.

“We’ve built a business that not only dominates the market but also adapts to the evolving needs of our customers. We’re excited about what the future holds,” Lall concludes. 

Continue Exploring: DS Group targets INR 5,000 Cr sales from confectionery business in 5 years, eyes expansion into tier II and III cities

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Speciality Restaurants to expand with 40-50 new outlets over the next three years

By
M Haziq Pandit
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Speciality Restaurants

India’s first publicly listed restaurant company, Speciality Restaurants, which owns brands like Mainland China, Asia Kitchen by Mainland China, and Oh! Calcutta, aims to open 40-50 restaurants over the next three years. Chairman Anjan Chatterjee stated͏͏ that͏͏ the͏͏ expansion͏͏ will͏͏ take͏͏ place͏͏ both͏͏ in͏͏ India͏͏ and͏͏ internationally.

“Based͏͏ on͏͏ asset͏͏ delivery͏͏ and͏͏ our͏͏ real͏͏ estate͏͏ arrangements,͏͏ we͏͏ plan͏͏ to͏͏ add͏͏ at͏͏ least͏͏ 40-50͏͏ restaurants͏͏ over͏͏ the͏͏ next͏͏ three͏͏ years.͏͏ The͏͏ expansion͏͏ will͏͏ primarily͏͏ focus͏͏ on͏͏ the͏͏ Asian͏͏ segment͏͏ through͏͏ our͏͏ Mainland͏͏ China͏͏ brand,͏͏ followed͏͏ by͏͏ Oh!͏͏ Calcutta,”͏͏ Chatterjee͏͏ stated.͏͏ Currently,͏͏ Speciality͏͏ Restaurants͏͏ operates͏͏ 97͏͏ restaurant͏͏ outlets͏͏ across͏͏ various͏͏ brands͏͏ and͏͏ 32͏͏ confectionery͏͏ outlets.

Exploring͏͏ International͏͏ Markets:

“We͏͏ are͏͏ set͏͏ to͏͏ expand͏͏ our͏͏ Oh!͏͏ Calcutta͏͏ brand,͏͏ which͏͏ has͏͏ recently͏͏ celebrated͏͏ its͏͏ 25th͏͏ anniversary,͏͏ by͏͏ opening͏͏ four͏͏ additional͏͏ outlets.͏͏ Following͏͏ our͏͏ London͏͏ launch,͏͏ we͏͏ will͏͏ introduce͏͏ our͏͏ Chourangi͏͏ brand,͏͏ the͏͏ 2.0͏͏ version͏͏ of͏͏ Oh!͏͏ Calcutta,͏͏ in͏͏ the͏͏ US.͏͏ Additionally,͏͏ we͏͏ are͏͏ in͏͏ discussions͏͏ for͏͏ Mainland͏͏ China͏͏ in͏͏ London͏͏ and͏͏ the͏͏ US,͏͏ aiming͏͏ to͏͏ establish͏͏ it͏͏ in͏͏ areas͏͏ with͏͏ significant͏͏ Indian͏͏ diaspora͏͏ populations,”͏͏ he͏͏ added.

Continue͏͏ Exploring:͏͏ Speciality Restaurants sees͏͏ 7.47%͏͏ revenue͏͏ growth͏͏ to͏͏ INR͏͏ 111.52͏͏ Cr͏͏ in͏͏ Q1FY25

Chatterjee͏͏ has͏͏ specially͏͏ crafted͏͏ a͏͏ new͏͏ celebration͏͏ menu͏͏ to͏͏ mark͏͏ the͏͏ silver͏͏ jubilee͏͏ of͏͏ Oh!͏͏ Calcutta.

“Considering͏͏ the͏͏ competitiveness͏͏ of͏͏ the͏͏ restaurant͏͏ industry,͏͏ very͏͏ few͏͏ brands͏͏ survive͏͏ beyond͏͏ the͏͏ five-year͏͏ mark,͏͏ yet͏͏ we͏͏ have͏͏ been͏͏ in͏͏ this͏͏ business͏͏ for͏͏ 30͏͏ years.͏͏ When͏͏ we͏͏ started,͏͏ the͏͏ space͏͏ was͏͏ relatively͏͏ small,͏͏ but͏͏ now͏͏ it’s͏͏ become͏͏ highly͏͏ disruptive,”͏͏ he͏͏ stated.

“However,͏͏ we͏͏ believe͏͏ in͏͏ the͏͏ power͏͏ of͏͏ robust,͏͏ honest,͏͏ and͏͏ authentic͏͏ food.͏͏ Restaurants͏͏ need͏͏ to͏͏ look͏͏ beyond͏͏ just͏͏ Instagrammable͏͏ dishes,͏͏ with͏͏ consistency͏͏ being͏͏ essential.͏͏ Given͏͏ the͏͏ popularity͏͏ of͏͏ Chinese͏͏ cuisine,͏͏ we͏͏ plan͏͏ to͏͏ expand͏͏ through͏͏ our͏͏ Mainland͏͏ China͏͏ and͏͏ Asia͏͏ Kitchen͏͏ by͏͏ Mainland͏͏ China͏͏ brands͏͏ in͏͏ the͏͏ next͏͏ 18-24͏͏ months.͏͏ Mainland͏͏ China͏͏ is͏͏ the͏͏ largest͏͏ Chinese͏͏ brand͏͏ to͏͏ emerge͏͏ from͏͏ India.͏͏ We͏͏ have͏͏ already͏͏ established͏͏ a͏͏ presence͏͏ in͏͏ the͏͏ Gulf͏͏ and͏͏ aim͏͏ to͏͏ be͏͏ where͏͏ the͏͏ Indian͏͏ diaspora͏͏ is,͏͏ as͏͏ they͏͏ long͏͏ for͏͏ Mainland͏͏ China’s͏͏ cuisine,”͏͏ he͏͏ added.

Targeting͏͏ Key͏͏ Markets͏͏ for͏͏ Expansion:

For͏͏ Oh!͏͏ Calcutta,͏͏ the͏͏ company͏͏ aims͏͏ to͏͏ strengthen͏͏ its͏͏ presence͏͏ in͏͏ the͏͏ major͏͏ cities͏͏ where͏͏ it͏͏ currently͏͏ operates,͏͏ Chatterjee͏͏ stated.

“For͏͏ example,͏͏ we͏͏ have͏͏ two͏͏ outlets͏͏ in͏͏ Mumbai͏͏ and͏͏ two͏͏ in͏͏ Kolkata.͏͏ Delhi͏͏ can͏͏ accommodate͏͏ two͏͏ outlets,͏͏ as͏͏ can͏͏ Hyderabad͏͏ and͏͏ other͏͏ cities,”͏͏ he͏͏ added.

Continue͏͏ Exploring:͏͏ Speciality Restaurants launches͏͏ Walters͏͏ Burger,͏͏ redefining͏͏ gourmet͏͏ fast͏͏ food

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ChrysCapital to launch investment platform as it nears major deals for dessert chains Theobroma Foods and Belgian Waffle Co

By
M Haziq Pandit
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ChrysCapital Theobroma Foods Belgian Waffle Co

ChrysCapital is planning to establish an investment platform as it nears deals for at least two dessert chains, Theobroma Foods and Belgian Waffle Co., with a combined valuation of approximately INR 3,200-3,500 crore, according to ET, citing sources familiar with the matter. The͏͏ firm͏͏ has͏͏ a͏͏ 60-day͏͏ period͏͏ to͏͏ submit͏͏ a͏͏ binding͏͏ offer͏͏ for͏͏ Theobroma͏͏ and͏͏ aims͏͏ to͏͏ finalise͏͏ the͏͏ acquisition͏͏ terms͏͏ for͏͏ Bloombay͏͏ Enterprises,͏͏ which͏͏ operates͏͏ Belgian͏͏ Waffle,͏͏ for͏͏ around͏͏ INR͏͏ 1,000͏͏ crore͏͏ within͏͏ the͏͏ next͏͏ 30͏͏ days.

Continue͏͏ Exploring:͏͏ QSR͏͏ chain͏͏ The Belgian Waffle set͏͏ for͏͏ major͏͏ PE͏͏ buyout͏͏ as͏͏ negotiations͏͏ enter͏͏ final͏͏ stage

Major͏͏ Stakeholders͏͏ and͏͏ Investments:

Bloombay͏͏ is͏͏ co-owned͏͏ by͏͏ founders͏͏ Shrey͏͏ and͏͏ Alisha͏͏ Aggarwal,͏͏ along͏͏ with͏͏ investor͏͏ Marathon͏͏ Edge͏͏ Partners,͏͏ which͏͏ holds͏͏ a͏͏ 22%͏͏ stake.

ChrysCapital͏͏ is͏͏ aiming͏͏ to͏͏ raise͏͏ $2-2.2͏͏ billion͏͏ for͏͏ its͏͏ tenth͏͏ fund,͏͏ the͏͏ largest͏͏ to͏͏ date,͏͏ as͏͏ it͏͏ competes͏͏ with͏͏ EQT͏͏ Partners͏͏ for͏͏ the͏͏ Theobroma͏͏ buyout͏͏ and͏͏ enters͏͏ the͏͏ final͏͏ stages͏͏ of͏͏ due͏͏ diligence.͏͏ The͏͏ firm͏͏ has͏͏ successfully͏͏ returned͏͏ over͏͏ $7͏͏ billion͏͏ from͏͏ 80͏͏ exits͏͏ and͏͏ has͏͏ invested͏͏ $4.5͏͏ billion͏͏ across͏͏ more͏͏ than͏͏ 100͏͏ ventures.

Nikhil͏͏ Raghavan,͏͏ a͏͏ former͏͏ Bain͏͏ executive,͏͏ leads͏͏ Marathon͏͏ Edge͏͏ Partners,͏͏ a͏͏ fund͏͏ focused͏͏ on͏͏ technology͏͏ and͏͏ consumer͏͏ investments͏͏ in͏͏ the͏͏ small͏͏ and͏͏ mid-market͏͏ segment.

Theobroma’s͏͏ Ownership͏͏ and͏͏ Sale͏͏ Process:

Theobroma’s͏͏ largest͏͏ shareholder,͏͏ private͏͏ equity͏͏ fund͏͏ ICICI͏͏ Venture,͏͏ tasked͏͏ Arpwood͏͏ with͏͏ finding͏͏ a͏͏ buyer͏͏ in͏͏ January.͏͏ ICICI͏͏ Venture͏͏ holds͏͏ a͏͏ 42%͏͏ stake͏͏ in͏͏ the͏͏ 20-year-old͏͏ patisserie͏͏ chain,͏͏ while͏͏ the͏͏ founding͏͏ Messman͏͏ family͏͏ owns͏͏ a͏͏ 51%͏͏ bloc,͏͏ equally͏͏ divided͏͏ among͏͏ its͏͏ four͏͏ members.͏͏ Employees͏͏ and͏͏ senior͏͏ management͏͏ hold͏͏ the͏͏ remaining͏͏ 6-7%.͏͏ All͏͏ stakeholders͏͏ are͏͏ anticipated͏͏ to͏͏ exit,͏͏ contingent͏͏ on͏͏ the͏͏ final͏͏ valuation.

Both͏͏ chains͏͏ began͏͏ in͏͏ Mumbai͏͏ and͏͏ have͏͏ since͏͏ expanded͏͏ throughout͏͏ India͏͏ with͏͏ the͏͏ help͏͏ of͏͏ financial͏͏ investors.͏͏ Theobroma͏͏ was͏͏ founded͏͏ in͏͏ 2004͏͏ as͏͏ a͏͏ single-store͏͏ bakehouse͏͏ on͏͏ Colaba͏͏ Causeway͏͏ by͏͏ sisters͏͏ Kainaz͏͏ Messman͏͏ Harchandrai͏͏ and͏͏ Tina͏͏ Messman͏͏ Wykes,͏͏ who͏͏ borrowed͏͏ INR͏͏ 1͏͏ crore͏͏ from͏͏ their͏͏ father͏͏ as͏͏ seed͏͏ capital.͏͏ It͏͏ remained͏͏ a͏͏ family-run͏͏ enterprise͏͏ until͏͏ ICICI͏͏ Venture͏͏ made͏͏ a͏͏ $20͏͏ million͏͏ commitment͏͏ in͏͏ 2017.͏͏ In͏͏ 2015,͏͏ the͏͏ company͏͏ appointed͏͏ an͏͏ external͏͏ CEO,͏͏ Cyrus͏͏ Shroff,͏͏ a͏͏ former͏͏ senior͏͏ executive͏͏ at͏͏ KKR͏͏ &͏͏ Co.

Theobroma͏͏ now͏͏ operates͏͏ around͏͏ 220͏͏ stores͏͏ and͏͏ delivery-only͏͏ outlets͏͏ in͏͏ 27͏͏ cities,͏͏ including͏͏ the͏͏ six͏͏ largest͏͏ metros.͏͏ Its͏͏ adjusted͏͏ EBITDA͏͏ for͏͏ FY24͏͏ was͏͏ INR͏͏ 60͏͏ crore͏͏ on͏͏ a͏͏ topline͏͏ of͏͏ INR͏͏ 380-400͏͏ crore,͏͏ and͏͏ it͏͏ aims͏͏ to͏͏ achieve͏͏ an͏͏ EBITDA͏͏ of͏͏ INR͏͏ 80-85͏͏ crore͏͏ in͏͏ the͏͏ current͏͏ financial͏͏ year.

The͏͏ sale͏͏ of͏͏ Theobroma͏͏ has͏͏ attracted͏͏ interest͏͏ from͏͏ leading͏͏ private͏͏ equity͏͏ funds,͏͏ including͏͏ Bain͏͏ Capital,͏͏ Carlyle,͏͏ Warburg͏͏ Pincus,͏͏ Advent,͏͏ and͏͏ Kedaara͏͏ Partners,͏͏ as͏͏ well͏͏ as͏͏ the͏͏ Switz͏͏ Group,͏͏ led͏͏ by͏͏ the͏͏ Khorakiwala͏͏ family,͏͏ known͏͏ for͏͏ their͏͏ other͏͏ ventures͏͏ such͏͏ as͏͏ Wockhardt͏͏ Pharma,͏͏ Monginis,͏͏ and͏͏ Akbarallys.͏͏ Currently,͏͏ ChrysCapital͏͏ and͏͏ EQT͏͏ are͏͏ the͏͏ last͏͏ two͏͏ contenders.͏͏ While͏͏ they͏͏ are͏͏ competing͏͏ separately͏͏ for͏͏ the͏͏ acquisition,͏͏ they͏͏ have͏͏ previously͏͏ collaborated͏͏ on͏͏ multiple͏͏ transactions,͏͏ including͏͏ the͏͏ acquisition͏͏ of͏͏ Credila͏͏ from͏͏ HDFC͏͏ Bank͏͏ and͏͏ GeBBs.͏͏ Sources͏͏ indicate͏͏ that͏͏ they͏͏ may͏͏ join͏͏ forces͏͏ again͏͏ to͏͏ co-create͏͏ the͏͏ planned͏͏ investment͏͏ platform.

Belgian͏͏ Waffle͏͏ has͏͏ established͏͏ over͏͏ 560͏͏ smaller-format͏͏ stores͏͏ and͏͏ kiosks͏͏ across͏͏ 190͏͏ Indian͏͏ cities͏͏ in͏͏ its͏͏ nine͏͏ years͏͏ of͏͏ operation.͏͏ According͏͏ to͏͏ filings͏͏ obtained͏͏ from͏͏ the͏͏ intelligence͏͏ platform͏͏ Tofler,͏͏ the͏͏ company͏͏ reported͏͏ revenue͏͏ of͏͏ INR͏͏ 150͏͏ crore͏͏ in͏͏ FY23,͏͏ a͏͏ significant͏͏ increase͏͏ from͏͏ INR͏͏ 46͏͏ crore͏͏ the͏͏ previous͏͏ year.͏͏ It͏͏ also͏͏ recorded͏͏ a͏͏ net͏͏ profit͏͏ of͏͏ INR͏͏ 21.3͏͏ crore.

ChrysCapital͏͏ and͏͏ ICICI͏͏ Venture͏͏ declined͏͏ to͏͏ comment.͏͏ Theobroma’s͏͏ spokesperson͏͏ and͏͏ Belgian͏͏ Waffle͏͏ CEO͏͏ Ankit͏͏ Patel͏͏ did͏͏ not͏͏ respond͏͏ to͏͏ requests͏͏ for͏͏ information.

Continue͏͏ Exploring:͏͏ ChrysCapital senior͏͏ advisor͏͏ Ashish͏͏ Agrawal͏͏ resigns͏͏ to͏͏ launch͏͏ revolutionary͏͏ snack͏͏ venture

ICICI͏͏ Venture’s͏͏ decision͏͏ to͏͏ exit͏͏ its͏͏ seven-year͏͏ investment͏͏ in͏͏ Theobroma͏͏ coincides͏͏ with͏͏ a͏͏ surge͏͏ of͏͏ global͏͏ food,͏͏ café,͏͏ and͏͏ patisserie͏͏ brands͏͏ entering͏͏ India͏͏ or͏͏ increasing͏͏ their͏͏ store͏͏ presence.

These͏͏ include͏͏ the͏͏ Belgian͏͏ bakery͏͏ Le͏͏ Pain͏͏ Quotidien,͏͏ the͏͏ French͏͏ patisserie͏͏ chain͏͏ Ladurée,͏͏ Reliance͏͏ Brands-backed͏͏ Armani/Caffè,͏͏ Pret͏͏ a͏͏ Manger,͏͏ and͏͏ Canada’s͏͏ Tim͏͏ Hortons.

A͏͏ report͏͏ from͏͏ the͏͏ National͏͏ Restaurant͏͏ Association͏͏ of͏͏ India͏͏ (NRAI)͏͏ in͏͏ July͏͏ estimated͏͏ the͏͏ food͏͏ services͏͏ market͏͏ at͏͏ INR͏͏ 5.69͏͏ lakh͏͏ crore͏͏ for͏͏ FY24,͏͏ contributing͏͏ 1.9%͏͏ to͏͏ India’s͏͏ GDP.͏͏ The͏͏ report͏͏ projects͏͏ that͏͏ this͏͏ market͏͏ will͏͏ expand͏͏ to͏͏ INR͏͏ 7.76͏͏ lakh͏͏ crore͏͏ by͏͏ FY28,͏͏ driven͏͏ by͏͏ a͏͏ growing͏͏ middle͏͏ class,͏͏ an͏͏ increasing͏͏ tendency͏͏ to͏͏ dine͏͏ out,͏͏ aspirational͏͏ demand͏͏ from͏͏ tier͏͏ 2͏͏ and͏͏ 3͏͏ locations,͏͏ and͏͏ food͏͏ delivery͏͏ platforms͏͏ reaching͏͏ new͏͏ markets.͏͏ Additionally,͏͏ the͏͏ NRAI͏͏ report͏͏ indicated͏͏ that͏͏ the͏͏ food͏͏ services͏͏ sector͏͏ is͏͏ expected͏͏ to͏͏ grow͏͏ at͏͏ an͏͏ 8.1%͏͏ compound͏͏ annual͏͏ growth͏͏ rate͏͏ between͏͏ 2024͏͏ and͏͏ 2028.

Continue͏͏ Exploring:͏͏ Venture͏͏ funds͏͏ and͏͏ angel͏͏ investors͏͏ flock͏͏ to͏͏ new-age͏͏ food͏͏ brands͏͏ as͏͏ F&B͏͏ sector͏͏ booms

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Swiggy files updated DRHP with SEBI for INR 3,750 Cr IPO

By
M Haziq Pandit
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Swiggy

Foodtech giant Swiggy filed its first updated draft red herring prospectus (DRHP) with SEBI on Thursday, seeking to raise INR 3,750 Cr ($450 Mn) through an initial public offering.

Public͏͏ Offering͏͏ Details:

According͏͏ to͏͏ the͏͏ DRHP,͏͏ Swiggy’s͏͏ public͏͏ offering͏͏ will͏͏ include͏͏ a͏͏ fresh͏͏ issue͏͏ of͏͏ shares͏͏ worth͏͏ INR͏͏ 3,750͏͏ Cr,͏͏ along͏͏ with͏͏ an͏͏ offer͏͏ for͏͏ sale͏͏ (OFS)͏͏ of͏͏ 18.53͏͏ Cr͏͏ equity͏͏ shares.

Considering͏͏ recent͏͏ share͏͏ purchases͏͏ at͏͏ approximately͏͏ INR͏͏ 350͏͏ each,͏͏ the͏͏ OFS͏͏ component͏͏ is͏͏ estimated͏͏ at͏͏ around͏͏ INR͏͏ 6,485͏͏ Cr.͏͏ This͏͏ brings͏͏ the͏͏ total͏͏ size͏͏ of͏͏ Swiggy’s͏͏ IPO͏͏ to͏͏ roughly͏͏ INR͏͏ 10,000͏͏ Cr͏͏ ($1.2͏͏ Bn).

Continue͏͏ Exploring:͏͏ Swiggy gets͏͏ SEBI͏͏ nod͏͏ for͏͏ IPO,͏͏ eyes͏͏ November͏͏ listing

Key͏͏ Investors͏͏ Selling͏͏ Shares͏͏ in͏͏ OFS:

As͏͏ part͏͏ of͏͏ the͏͏ OFS͏͏ component,͏͏ investors͏͏ including͏͏ Accel,͏͏ Coatue,͏͏ Alpha͏͏ Wave,͏͏ Elevation,͏͏ Norwest,͏͏ and͏͏ Tencent͏͏ will͏͏ sell͏͏ shares.͏͏ Accel͏͏ India͏͏ IV͏͏ (Mauritius)͏͏ Ltd͏͏ will͏͏ offload͏͏ 1.05͏͏ Cr͏͏ shares,͏͏ while͏͏ Alpha͏͏ Wave͏͏ Ventures͏͏ will͏͏ sell͏͏ 55.73͏͏ Lakh͏͏ shares.

This͏͏ comes͏͏ days͏͏ after͏͏ reports͏͏ emerged͏͏ that͏͏ SEBI͏͏ approved͏͏ Swiggy’s͏͏ DRHP͏͏ via͏͏ the͏͏ confidential͏͏ pre-filing͏͏ route.

The͏͏ company͏͏ plans͏͏ to͏͏ utilise͏͏ the͏͏ fresh͏͏ IPO͏͏ proceeds͏͏ for͏͏ marketing͏͏ and͏͏ promotional͏͏ expenses͏͏ (INR͏͏ 929.5͏͏ Cr),͏͏ investing͏͏ in͏͏ technology͏͏ and͏͏ cloud͏͏ infrastructure,͏͏ funding͏͏ inorganic͏͏ growth͏͏ through͏͏ acquisitions͏͏ and͏͏ for͏͏ general͏͏ corporate͏͏ purposes.

A͏͏ significant͏͏ portion͏͏ of͏͏ the͏͏ capital͏͏ will͏͏ also͏͏ be͏͏ allocated͏͏ to͏͏ support͏͏ its͏͏ “material͏͏ subsidiary”͏͏ Scootsy.͏͏ The͏͏ company͏͏ has͏͏ set͏͏ aside͏͏ INR͏͏ 982.4͏͏ Cr͏͏ for͏͏ establishing͏͏ Scootsy’s͏͏ network͏͏ of͏͏ dark͏͏ stores͏͏ and͏͏ for͏͏ lease͏͏ and͏͏ licence͏͏ payments͏͏ associated͏͏ with͏͏ these͏͏ stores.

The͏͏ DRHP͏͏ stated,͏͏ “Investment͏͏ in͏͏ our͏͏ material͏͏ subsidiary,͏͏ Scootsy,͏͏ will͏͏ focus͏͏ on:͏͏ (a)͏͏ expanding͏͏ our͏͏ dark͏͏ store͏͏ network͏͏ for͏͏ the͏͏ quick͏͏ commerce͏͏ segment͏͏ through͏͏ the͏͏ establishment͏͏ of͏͏ dark͏͏ stores,͏͏ and͏͏ (b)͏͏ covering͏͏ lease͏͏ and͏͏ licence͏͏ payments͏͏ for͏͏ these͏͏ dark͏͏ stores.”

In͏͏ its͏͏ DRHP,͏͏ Swiggy͏͏ stated͏͏ that͏͏ Scootsy͏͏ Logistics͏͏ Private͏͏ Ltd.͏͏ will͏͏ provide͏͏ supply͏͏ chain͏͏ services͏͏ to͏͏ wholesalers͏͏ and͏͏ retailers,͏͏ including͏͏ warehouse͏͏ management,͏͏ in-warehouse͏͏ processing,͏͏ and͏͏ order͏͏ fulfilment͏͏ services.

The͏͏ book-running͏͏ lead͏͏ managers͏͏ for͏͏ the͏͏ IPO͏͏ include͏͏ Kotak͏͏ Mahindra͏͏ Capital,͏͏ JP͏͏ Morgan͏͏ India,͏͏ BofA͏͏ Securities,͏͏ Citigroup͏͏ Global,͏͏ Jefferies,͏͏ and͏͏ others.

Once͏͏ SEBI͏͏ grants͏͏ approval,͏͏ the͏͏ startup͏͏ will͏͏ list͏͏ its͏͏ shares͏͏ on͏͏ the͏͏ NSE͏͏ and͏͏ BSE.

Financial͏͏ Performance:

According͏͏ to͏͏ the͏͏ DRHP,͏͏ Swiggy’s͏͏ net͏͏ losses͏͏ increased͏͏ by͏͏ over͏͏ 7%͏͏ to͏͏ INR͏͏ 605.7͏͏ Cr͏͏ in͏͏ the͏͏ first͏͏ quarter͏͏ (Q1)͏͏ of͏͏ the͏͏ financial͏͏ year͏͏ 2024-25͏͏ (FY25),͏͏ up͏͏ from͏͏ INR͏͏ 562.8͏͏ Cr͏͏ in͏͏ the͏͏ same͏͏ period͏͏ last͏͏ fiscal͏͏ year.

Meanwhile,͏͏ revenue͏͏ from͏͏ operations͏͏ soared͏͏ by͏͏ nearly͏͏ 35%͏͏ to͏͏ INR͏͏ 3,222.2͏͏ Cr͏͏ in͏͏ the͏͏ June͏͏ quarter͏͏ of͏͏ the͏͏ current͏͏ fiscal͏͏ year,͏͏ compared͏͏ to͏͏ INR͏͏ 2,389.8͏͏ Cr͏͏ in͏͏ Q1͏͏ FY24.

Founded͏͏ in͏͏ 2014͏͏ by͏͏ Sriharsha͏͏ Majety,͏͏ Nandan͏͏ Reddy,͏͏ Phani͏͏ Kishan͏͏ Addepalli,͏͏ and͏͏ Rahul͏͏ Jaimini,͏͏ Swiggy͏͏ began͏͏ as͏͏ a͏͏ food͏͏ delivery͏͏ startup͏͏ before͏͏ expanding͏͏ into͏͏ the͏͏ quick͏͏ commerce͏͏ segment͏͏ with͏͏ Instamart.

It͏͏ competes͏͏ with͏͏ established͏͏ foodtech͏͏ player͏͏ Zomato.

This͏͏ development͏͏ follows͏͏ Swiggy’s͏͏ initial͏͏ DRHP͏͏ filing͏͏ with͏͏ SEBI͏͏ through͏͏ the͏͏ confidential͏͏ pre-filing͏͏ route͏͏ for͏͏ an͏͏ IPO͏͏ valued͏͏ at͏͏ INR͏͏ 10,414.1͏͏ Cr͏͏ in͏͏ April.͏͏ Reports͏͏ indicate͏͏ that͏͏ the͏͏ company͏͏ received͏͏ approval͏͏ from͏͏ the͏͏ regulator͏͏ for͏͏ the͏͏ IPO͏͏ just͏͏ days͏͏ ago.

High-Profile͏͏ Investments͏͏ Boost͏͏ IPO͏͏ Confidence:

In͏͏ the͏͏ run-up͏͏ to͏͏ the͏͏ IPO,͏͏ the͏͏ company͏͏ also͏͏ secured͏͏ investments͏͏ from͏͏ the͏͏ family͏͏ office͏͏ of͏͏ actor͏͏ Amitabh͏͏ Bachchan,͏͏ actress͏͏ Madhuri͏͏ Dixit,͏͏ cricketers͏͏ Rahul͏͏ Dravid͏͏ and͏͏ Zaheer͏͏ Khan,͏͏ tennis͏͏ star͏͏ Rohan͏͏ Bopanna,͏͏ director͏͏ Karan͏͏ Johar,͏͏ and͏͏ actor͏͏ Ashish͏͏ Chowdhry.

Continue͏͏ Exploring:͏͏ Swiggy attracts͏͏ celebrity͏͏ investors:͏͏ Rahul͏͏ Dravid,͏͏ Karan͏͏ Johar͏͏ &͏͏ others͏͏ invest͏͏ in͏͏ pre-IPO͏͏ round

With͏͏ this͏͏ move,͏͏ Swiggy͏͏ has͏͏ become͏͏ the͏͏ latest͏͏ Indian͏͏ startup͏͏ to͏͏ enter͏͏ the͏͏ IPO͏͏ arena.͏͏ Driven͏͏ by͏͏ positive͏͏ market͏͏ sentiment͏͏ and͏͏ increasing͏͏ investor͏͏ interest͏͏ in͏͏ new-age͏͏ tech͏͏ companies,͏͏ ten͏͏ Indian͏͏ startups͏͏ have͏͏ listed͏͏ on͏͏ the͏͏ exchanges͏͏ this͏͏ year,͏͏ including͏͏ Go͏͏ Digit͏͏ General͏͏ Insurance,͏͏ FirstCry,͏͏ Unicommerce,͏͏ TBO͏͏ Tek,͏͏ Ola͏͏ Electric,͏͏ and͏͏ Awfis,͏͏ among͏͏ others.

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Snitch expands with Dehradun store, marking its 25th outlet across India

By
M Haziq Pandit
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0
Snitch

Snitch, a leading men’s fashion brand, has reached a noteworthy milestone in its aggressive offline expansion by launching its 25th store in Dehradun. This͏͏ achievement͏͏ showcases͏͏ the͏͏ brand’s͏͏ remarkable͏͏ progress,͏͏ having͏͏ opened͏͏ 25͏͏ stores͏͏ in͏͏ just͏͏ 8͏͏ months͏͏ since͏͏ its͏͏ offline͏͏ launch͏͏ in͏͏ Bangalore.͏͏ With͏͏ new͏͏ locations͏͏ in͏͏ cities͏͏ like͏͏ Pune,͏͏ Ahmedabad,͏͏ Indore,͏͏ Surat,͏͏ and͏͏ Mumbai,͏͏ Snitch͏͏ is͏͏ solidifying͏͏ its͏͏ presence͏͏ as͏͏ a͏͏ significant͏͏ force͏͏ in͏͏ the͏͏ men’s͏͏ fashion͏͏ sector͏͏ throughout͏͏ the͏͏ nation.

Continue͏͏ Exploring:͏͏ Men’s͏͏ fashion͏͏ brand͏͏ Snitch expands͏͏ retail͏͏ footprint͏͏ with͏͏ 24th͏͏ store͏͏ launch͏͏ in͏͏ Indore

Siddharth͏͏ Dungarwal,͏͏ Founder͏͏ of͏͏ Snitch,͏͏ expressed,͏͏ “Launching͏͏ our͏͏ 25th͏͏ store͏͏ in͏͏ such͏͏ a͏͏ brief͏͏ period͏͏ is͏͏ an͏͏ incredible͏͏ milestone͏͏ for͏͏ us.͏͏ This͏͏ journey͏͏ goes͏͏ beyond͏͏ merely͏͏ increasing͏͏ our͏͏ physical͏͏ presence;͏͏ it’s͏͏ about͏͏ positioning͏͏ Snitch͏͏ as͏͏ a͏͏ key͏͏ player͏͏ in͏͏ men’s͏͏ fashion.͏͏ We’ve͏͏ always͏͏ aimed͏͏ to͏͏ reach͏͏ every͏͏ part͏͏ of͏͏ the͏͏ country,͏͏ remaining͏͏ accessible͏͏ to͏͏ our͏͏ customers͏͏ while͏͏ offering͏͏ the͏͏ trendiest,͏͏ high-quality͏͏ clothing͏͏ at͏͏ unbeatable͏͏ value.”

He͏͏ added,͏͏ “Thanks͏͏ to͏͏ the͏͏ overwhelming͏͏ support͏͏ from͏͏ our͏͏ Gen͏͏ Z͏͏ audience,͏͏ we’re͏͏ motivated͏͏ to͏͏ push͏͏ boundaries,͏͏ explore͏͏ new͏͏ markets,͏͏ and͏͏ bring͏͏ Snitch͏͏ closer͏͏ to͏͏ becoming͏͏ a͏͏ household͏͏ name͏͏ across͏͏ the͏͏ nation.”

Snitch’s͏͏ offline͏͏ stores͏͏ deliver͏͏ a͏͏ sleek͏͏ and͏͏ engaging͏͏ shopping͏͏ experience,͏͏ resulting͏͏ in͏͏ impressive͏͏ conversion͏͏ rates͏͏ of͏͏ 50-60͏͏ percent.͏͏ These͏͏ spaces͏͏ allow͏͏ the͏͏ brand͏͏ to͏͏ foster͏͏ deeper͏͏ connections͏͏ with͏͏ customers,͏͏ collect͏͏ valuable͏͏ insights͏͏ into͏͏ their͏͏ preferences,͏͏ and͏͏ make͏͏ fashion͏͏ both͏͏ accessible͏͏ and͏͏ enjoyable͏͏ across͏͏ various͏͏ regions.

Future͏͏ Plans:

As͏͏ part͏͏ of͏͏ its͏͏ growth͏͏ strategy,͏͏ Snitch͏͏ plans͏͏ to͏͏ expand͏͏ into͏͏ key͏͏ emerging͏͏ markets͏͏ such͏͏ as͏͏ Delhi,͏͏ Madhya͏͏ Pradesh,͏͏ Bhubaneswar͏͏ (Odisha),͏͏ and͏͏ Rajasthan,͏͏ further͏͏ extending͏͏ its͏͏ presence͏͏ in͏͏ both͏͏ Tier͏͏ I͏͏ and͏͏ Tier͏͏ II͏͏ cities.͏͏ This͏͏ initiative͏͏ aims͏͏ to͏͏ enhance͏͏ brand͏͏ visibility͏͏ and͏͏ strengthen͏͏ Snitch’s͏͏ foothold͏͏ across͏͏ India’s͏͏ diverse͏͏ fashion͏͏ landscape.

The͏͏ latest͏͏ store͏͏ on͏͏ Rajpur͏͏ Road͏͏ in͏͏ Dehradun͏͏ covers͏͏ 3,200͏͏ sq.͏͏ ft.͏͏ and͏͏ features͏͏ Snitch’s͏͏ newest͏͏ collection͏͏ of͏͏ apparel͏͏ and͏͏ accessories,͏͏ tailored͏͏ for͏͏ the͏͏ fashion-forward͏͏ Gen͏͏ Z͏͏ market.͏͏ With͏͏ a͏͏ strong͏͏ emphasis͏͏ on͏͏ style͏͏ and͏͏ customer͏͏ engagement,͏͏ Snitch͏͏ has͏͏ established͏͏ itself͏͏ as͏͏ a͏͏ leader͏͏ in͏͏ men’s͏͏ fashion.͏͏ The͏͏ brand͏͏ is͏͏ dedicated͏͏ to͏͏ delivering͏͏ high-quality͏͏ products͏͏ and͏͏ exceptional͏͏ customer͏͏ experiences͏͏ as͏͏ it͏͏ pursues͏͏ further͏͏ expansion͏͏ both͏͏ online͏͏ and͏͏ offline.

Continue͏͏ Exploring:͏͏ Snitch captures͏͏ 2.4%͏͏ market͏͏ share͏͏ in͏͏ men’s͏͏ e-commerce͏͏ fashion͏͏ sector

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India’s cut and polished diamond exports expected to hit decade-low of $12.5-13.0 Bn in FY25: ICRA

By
M Haziq Pandit
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0
diamond

India’s cut and polished diamond (CPD) exports are expected to decline to a decade-low of $12.5-13.0 billion in FY2025, according to ICRA,͏͏ marking͏͏ an͏͏ 18-19%͏͏ year-on-year͏͏ contraction.͏͏ This͏͏ decline͏͏ is͏͏ driven͏͏ by͏͏ a͏͏ 13-14%͏͏ drop͏͏ in͏͏ volumes͏͏ and͏͏ a͏͏ 5-6%͏͏ softening͏͏ in͏͏ average͏͏ realisations.͏͏ ICRA͏͏ maintains͏͏ a͏͏ negative͏͏ outlook͏͏ on͏͏ the͏͏ sector.

Contraction͏͏ Driven͏͏ by͏͏ Market͏͏ Forces:

ICRA’s͏͏ recent͏͏ note͏͏ highlights͏͏ a͏͏ 28%͏͏ contraction͏͏ in͏͏ India’s͏͏ CPD͏͏ exports͏͏ in͏͏ FY2024,͏͏ driven͏͏ by͏͏ challenging͏͏ global͏͏ macroeconomic͏͏ conditions͏͏ and͏͏ rising͏͏ competition͏͏ from͏͏ lab-grown͏͏ diamonds͏͏ (LGD).͏͏ The͏͏ downturn͏͏ persists͏͏ due͏͏ to͏͏ weak͏͏ demand͏͏ in͏͏ key͏͏ markets—the͏͏ US,͏͏ impacted͏͏ by͏͏ inflation,͏͏ and͏͏ China,͏͏ where͏͏ consumer͏͏ preferences͏͏ are͏͏ shifting͏͏ away͏͏ from͏͏ diamonds.͏͏ In͏͏ the͏͏ first͏͏ four͏͏ months͏͏ of͏͏ FY2025,͏͏ CPD͏͏ exports͏͏ have͏͏ seen͏͏ a͏͏ further͏͏ 19%͏͏ year-on-year͏͏ decline.

Although͏͏ some͏͏ sequential͏͏ volume͏͏ improvement͏͏ is͏͏ anticipated͏͏ in͏͏ the͏͏ coming͏͏ months͏͏ due͏͏ to͏͏ the͏͏ festive͏͏ season,͏͏ this͏͏ will͏͏ be͏͏ offset͏͏ by͏͏ ongoing͏͏ pressure͏͏ on͏͏ polished͏͏ diamond͏͏ prices,͏͏ exacerbated͏͏ by͏͏ high͏͏ inventory͏͏ levels.͏͏ As͏͏ a͏͏ result,͏͏ the͏͏ rating͏͏ agency͏͏ has͏͏ maintained͏͏ its͏͏ negative͏͏ outlook͏͏ for͏͏ the͏͏ sector.

Weak͏͏ Demand͏͏ in͏͏ Key͏͏ Markets:

Sakshi͏͏ Suneja,͏͏ Vice͏͏ President͏͏ &͏͏ Sector͏͏ Head͏͏ –͏͏ Corporate͏͏ Ratings,͏͏ ICRA,͏͏ stated,͏͏ “CPD͏͏ players͏͏ have͏͏ been͏͏ grappling͏͏ with͏͏ a͏͏ sustained͏͏ demand͏͏ slowdown͏͏ in͏͏ the͏͏ US͏͏ and͏͏ China,͏͏ driven͏͏ by͏͏ weak͏͏ economic͏͏ conditions͏͏ and͏͏ ongoing͏͏ inflationary͏͏ pressures.͏͏ In͏͏ China,͏͏ demand͏͏ has͏͏ also͏͏ been͏͏ affected͏͏ by͏͏ the͏͏ renewed͏͏ preference͏͏ for͏͏ gold͏͏ amid͏͏ the͏͏ country’s͏͏ economic͏͏ uncertainties.͏͏ Additionally,͏͏ geopolitical͏͏ tensions͏͏ and͏͏ G7͏͏ restrictions͏͏ on͏͏ Russian͏͏ diamonds͏͏ have͏͏ further͏͏ dampened͏͏ demand͏͏ in͏͏ Europe.”

Rising͏͏ Competition͏͏ from͏͏ Lab-Grown͏͏ Diamonds:

Additionally,͏͏ the͏͏ growing͏͏ popularity͏͏ of͏͏ lab-grown͏͏ diamonds,͏͏ which͏͏ are͏͏ priced͏͏ considerably͏͏ lower͏͏ than͏͏ natural͏͏ diamonds,͏͏ continues͏͏ to͏͏ affect͏͏ demand͏͏ for͏͏ larger͏͏ stones,͏͏ particularly͏͏ those͏͏ in͏͏ the͏͏ one͏͏ to͏͏ three-carat͏͏ range.͏͏ India,͏͏ however,͏͏ remains͏͏ a͏͏ bright͏͏ spot͏͏ globally,͏͏ with͏͏ rising͏͏ demand͏͏ for͏͏ diamond-studded͏͏ jewellery.

Continue͏͏ Exploring:͏͏ Lab-grown͏͏ diamonds lose͏͏ lustre:͏͏ Prices͏͏ fall͏͏ 74%͏͏ from͏͏ $300͏͏ to͏͏ $78͏͏ per͏͏ carat

Polished͏͏ diamond͏͏ prices͏͏ have͏͏ been͏͏ on͏͏ a͏͏ decline͏͏ since͏͏ April͏͏ 2022͏͏ due͏͏ to͏͏ sluggish͏͏ demand,͏͏ reaching͏͏ a͏͏ record͏͏ low͏͏ in͏͏ August͏͏ 2024.͏͏ Despite͏͏ the͏͏ upcoming͏͏ festive͏͏ season,͏͏ the͏͏ pressure͏͏ on͏͏ polished͏͏ prices͏͏ is͏͏ expected͏͏ to͏͏ continue͏͏ into͏͏ H2͏͏ FY2025͏͏ as͏͏ CPD͏͏ players͏͏ work͏͏ to͏͏ offload͏͏ their͏͏ high͏͏ inventories.

Rough͏͏ diamond͏͏ prices,͏͏ which͏͏ saw͏͏ some͏͏ correction͏͏ recently,͏͏ are͏͏ expected͏͏ to͏͏ stay͏͏ firm͏͏ with͏͏ major͏͏ miners͏͏ announcing͏͏ production͏͏ cuts͏͏ in͏͏ FY2025͏͏ to͏͏ match͏͏ demand.͏͏ Intensified͏͏ sanctions͏͏ on͏͏ Alrosa͏͏ PJSC,͏͏ the͏͏ third-largest͏͏ rough͏͏ diamond͏͏ supplier,͏͏ by͏͏ G7͏͏ nations͏͏ will͏͏ also͏͏ restrict͏͏ further͏͏ price͏͏ corrections͏͏ in͏͏ roughs.͏͏ Consequently,͏͏ the͏͏ rough-polished͏͏ price͏͏ differential͏͏ is͏͏ likely͏͏ to͏͏ remain͏͏ under͏͏ pressure,͏͏ and͏͏ along͏͏ with͏͏ reduced͏͏ operational͏͏ scale,͏͏ this͏͏ is͏͏ projected͏͏ to͏͏ reduce͏͏ Indian͏͏ diamantaires’͏͏ operating͏͏ profit͏͏ margins͏͏ by͏͏ 60-70͏͏ basis͏͏ points͏͏ in͏͏ FY2025,͏͏ according͏͏ to͏͏ ICRA’s͏͏ assessment.

Suneja͏͏ further͏͏ noted,͏͏ “The͏͏ credit͏͏ profile͏͏ of͏͏ Indian͏͏ CPD͏͏ players͏͏ weakened͏͏ in͏͏ FY2024͏͏ due͏͏ to͏͏ an͏͏ extended͏͏ working͏͏ capital͏͏ cycle͏͏ caused͏͏ by͏͏ inventory͏͏ build-up͏͏ amidst͏͏ declining͏͏ demand͏͏ and͏͏ rising͏͏ global͏͏ lending͏͏ rates.͏͏ This͏͏ subdued͏͏ credit͏͏ profile͏͏ is͏͏ expected͏͏ to͏͏ persist͏͏ in͏͏ FY2025͏͏ due͏͏ to͏͏ reduced͏͏ operational͏͏ scale,͏͏ lower͏͏ profitability,͏͏ and͏͏ ongoing͏͏ working͏͏ capital͏͏ challenges.͏͏ However,͏͏ the͏͏ effects͏͏ of͏͏ these͏͏ decade-low͏͏ operational͏͏ levels͏͏ may͏͏ be͏͏ less͏͏ pronounced͏͏ for͏͏ certain͏͏ entities͏͏ that͏͏ manage͏͏ their͏͏ working͏͏ capital͏͏ effectively͏͏ and͏͏ minimise͏͏ reliance͏͏ on͏͏ external͏͏ debt.͏͏ Consequently,͏͏ efficient͏͏ inventory͏͏ management͏͏ will͏͏ be͏͏ crucial͏͏ from͏͏ a͏͏ credit͏͏ perspective.”

ICRA͏͏ anticipates͏͏ that͏͏ the͏͏ interest͏͏ coverage͏͏ ratio͏͏ for͏͏ CPD͏͏ entities͏͏ in͏͏ its͏͏ sample͏͏ set͏͏ will͏͏ decline͏͏ to͏͏ 2.7-2.8͏͏ times͏͏ in͏͏ FY2025,͏͏ compared͏͏ to͏͏ 3.0͏͏ times͏͏ in͏͏ FY2024͏͏ and͏͏ 4.6͏͏ times͏͏ in͏͏ FY2023.͏͏ Additionally,͏͏ total͏͏ outside͏͏ liabilities͏͏ to͏͏ tangible͏͏ net͏͏ worth͏͏ is͏͏ projected͏͏ to͏͏ be͏͏ 1-1.2͏͏ times͏͏ as͏͏ of͏͏ March͏͏ 31,͏͏ 2025,͏͏ up͏͏ from͏͏ 1.0͏͏ times͏͏ on͏͏ March͏͏ 31,͏͏ 2024,͏͏ and͏͏ 1.2͏͏ times͏͏ on͏͏ March͏͏ 31,͏͏ 2023.

Continue͏͏ Exploring:͏͏ Top͏͏ jewellery͏͏ retailers͏͏ hold͏͏ back͏͏ on͏͏ lab-grown͏͏ diamonds citing͏͏ low͏͏ consumer͏͏ demand

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Reliance Retail’s Ajio expands fashion portfolio by adding H&M to its platform

By
M Haziq Pandit
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0
Ajio H&M

Reliance Retail-owned fashion e-commerce platform Ajio has added Swedish brand Hennes & Mauritz (H&M) on͏͏ its͏͏ platform,͏͏ as͏͏ announced͏͏ in͏͏ a͏͏ joint͏͏ press͏͏ release͏͏ on͏͏ Thursday

H&M Expands͏͏ Reach͏͏ via͏͏ Ajio:

While͏͏ Ajio͏͏ enhances͏͏ its͏͏ collection͏͏ of͏͏ international͏͏ brands,͏͏ H&M͏͏ is͏͏ focused͏͏ on͏͏ expanding͏͏ its͏͏ presence͏͏ and͏͏ online͏͏ market͏͏ share͏͏ by͏͏ capitalising͏͏ on͏͏ Ajio’s͏͏ digital͏͏ platform͏͏ and͏͏ vast͏͏ reach,͏͏ according͏͏ to͏͏ the͏͏ release.

“Over͏͏ the͏͏ last͏͏ few͏͏ years,͏͏ we͏͏ have͏͏ broadened͏͏ the͏͏ fashion͏͏ spectrum͏͏ to͏͏ feature͏͏ the͏͏ best͏͏ international͏͏ brands͏͏ on͏͏ Ajio,”͏͏ stated͏͏ Vineeth͏͏ Nair,͏͏ CEO͏͏ of͏͏ Ajio.͏͏ “The͏͏ introduction͏͏ of͏͏ H&M͏͏ to͏͏ our͏͏ platform͏͏ not͏͏ only͏͏ enriches͏͏ the͏͏ variety͏͏ of͏͏ styles͏͏ available͏͏ but͏͏ also͏͏ underscores͏͏ our͏͏ commitment͏͏ to͏͏ delivering͏͏ the͏͏ latest͏͏ global͏͏ brands͏͏ and͏͏ trends͏͏ to͏͏ our͏͏ customers.”

Continue͏͏ Exploring:͏͏ British͏͏ fashion͏͏ brand͏͏ ASOS͏͏ enters͏͏ Indian͏͏ market͏͏ with͏͏ exclusive͏͏ launch͏͏ on͏͏ Ajio

H&M͏͏ first͏͏ entered͏͏ the͏͏ Flipkart-owned͏͏ online͏͏ marketplace͏͏ Myntra͏͏ in͏͏ 2019,͏͏ and͏͏ Ajio͏͏ is͏͏ now͏͏ the͏͏ second͏͏ online͏͏ platform͏͏ where͏͏ the͏͏ brand͏͏ has͏͏ established͏͏ its͏͏ presence.

H&M Brings͏͏ 10,000+͏͏ Styles͏͏ to͏͏ Ajio:

H&M͏͏ will͏͏ showcase͏͏ more͏͏ than͏͏ 10,000͏͏ styles͏͏ on͏͏ Ajio,͏͏ covering͏͏ womenswear,͏͏ menswear,͏͏ kidswear,͏͏ and͏͏ home͏͏ décor,͏͏ including͏͏ its͏͏ Autumn/Winter͏͏ 2024͏͏ collection,͏͏ with͏͏ prices͏͏ starting͏͏ at͏͏ INR͏͏ 399.

“By͏͏ leveraging͏͏ Ajio’s͏͏ strong͏͏ digital͏͏ platform͏͏ and͏͏ extensive͏͏ reach,͏͏ we͏͏ are͏͏ making͏͏ our͏͏ diverse͏͏ selection͏͏ of͏͏ high-quality,͏͏ affordable͏͏ clothing͏͏ accessible͏͏ to͏͏ a͏͏ wider͏͏ audience͏͏ of͏͏ discerning͏͏ customers͏͏ across͏͏ the͏͏ country,”͏͏ said͏͏ Yanira͏͏ Ramirez,͏͏ country͏͏ sales͏͏ manager͏͏ at͏͏ H&M͏͏ India.

H&M͏͏ made͏͏ its͏͏ entry͏͏ into͏͏ the͏͏ Indian͏͏ market͏͏ in͏͏ October͏͏ 2015͏͏ and͏͏ launched͏͏ its͏͏ official͏͏ website͏͏ in͏͏ 2018.͏͏ As͏͏ of͏͏ now,͏͏ the͏͏ company͏͏ operates͏͏ over͏͏ 64͏͏ stores͏͏ across͏͏ more͏͏ than͏͏ 29͏͏ cities͏͏ in͏͏ the͏͏ country,͏͏ according͏͏ to͏͏ its͏͏ official͏͏ website.

Continue͏͏ Exploring:͏͏ H&M bolsters͏͏ Indian͏͏ presence͏͏ with͏͏ two͏͏ more͏͏ outlets͏͏ in͏͏ Pune͏͏ and͏͏ Bengaluru

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The Organic World enters Hyderabad, bringing healthier choices to consumers

By
M Haziq Pandit
-
0
The Organic World

The Organic World (TOW), a South Indian grocery retail chain and flagship brand of Nimida Group, has opened its first store in Hyderabad,͏͏ located͏͏ in͏͏ Pragathi͏͏ Nagar.

Ambitious͏͏ Growth͏͏ Plans:

This͏͏ launch͏͏ aligns͏͏ with͏͏ the͏͏ company’s͏͏ goal͏͏ of͏͏ reaching͏͏ INR͏͏ 100͏͏ crore͏͏ or͏͏ establishing͏͏ 100͏͏ stores͏͏ by͏͏ the͏͏ end͏͏ of͏͏ 2025.

“Our͏͏ Hyderabad͏͏ store͏͏ is͏͏ just͏͏ the͏͏ beginning,”͏͏ said͏͏ Gaurav͏͏ Manchanda,͏͏ founder͏͏ of͏͏ Nimida͏͏ Group.͏͏ “With͏͏ more͏͏ than͏͏ 3,000͏͏ worry-free,͏͏ wholesome,͏͏ and͏͏ curated͏͏ grocery͏͏ options,͏͏ we͏͏ are͏͏ thrilled͏͏ to͏͏ empower͏͏ consumers͏͏ to͏͏ adopt͏͏ a͏͏ healthier͏͏ and͏͏ safer͏͏ lifestyle,͏͏ free͏͏ from͏͏ harmful͏͏ chemicals.”

Continue͏͏ Exploring:͏͏ The Organic World expands͏͏ millet͏͏ range͏͏ with͏͏ 11͏͏ new͏͏ categories,͏͏ adding͏͏ 70+͏͏ SKUs

Future͏͏ Expansion͏͏ into͏͏ Key͏͏ Markets:

The͏͏ organic͏͏ retailer͏͏ plans͏͏ to͏͏ expand͏͏ into͏͏ key͏͏ markets͏͏ such͏͏ as͏͏ Bengaluru,͏͏ Mysore,͏͏ Pune,͏͏ and͏͏ several͏͏ tier͏͏ 2͏͏ and͏͏ tier͏͏ 3͏͏ cities͏͏ across͏͏ India.

Founded͏͏ in͏͏ 2017,͏͏ TOW͏͏ currently͏͏ operates͏͏ 23͏͏ retail͏͏ stores͏͏ in͏͏ Bengaluru͏͏ and͏͏ Hyderabad,͏͏ providing͏͏ nearly͏͏ 3,000͏͏ products͏͏ across͏͏ food,͏͏ grocery,͏͏ personal͏͏ care,͏͏ and͏͏ home͏͏ care͏͏ categories.

Financial͏͏ Targets͏͏ Set͏͏ for͏͏ FY͏͏ 2025:

The͏͏ Bengaluru-based͏͏ company͏͏ aims͏͏ to͏͏ achieve͏͏ approximately͏͏ INR͏͏ 60͏͏ crore͏͏ by͏͏ the͏͏ end͏͏ of͏͏ fiscal͏͏ year͏͏ (FY)͏͏ 2025,͏͏ an͏͏ increase͏͏ from͏͏ about͏͏ INR͏͏ 35͏͏ crore͏͏ in͏͏ FY24,͏͏ according͏͏ to͏͏ Manchanda.

Continue͏͏ Exploring:͏͏ The Organic World to͏͏ expand͏͏ to͏͏ 100͏͏ stores͏͏ by͏͏ FY26,͏͏ targets͏͏ Hyderabad,͏͏ Chennai,͏͏ and͏͏ Pune

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International footwear brands unlikely to lower prices for Indian consumers: Nuvama Report

By
M Haziq Pandit
-
0
footwear

International footwear brands shifting their third-party operations to India are not expected to lower product prices for Indian consumers, as noted in Nuvama‘s September report on footwear trends.

Outsourcing͏͏ is͏͏ primarily͏͏ focused͏͏ on͏͏ achieving͏͏ cost͏͏ efficiency͏͏ in͏͏ international͏͏ markets,͏͏ rather͏͏ than͏͏ delivering͏͏ lower͏͏ prices͏͏ to͏͏ domestic͏͏ consumers,͏͏ according͏͏ to͏͏ the͏͏ report.

The͏͏ report͏͏ notes͏͏ that͏͏ international͏͏ companies͏͏ like͏͏ Nike͏͏ and͏͏ Adidas͏͏ have͏͏ been͏͏ outsourcing͏͏ manufacturing͏͏ to͏͏ Apache͏͏ Footwear͏͏ in͏͏ Hyderabad͏͏ since͏͏ 2008,͏͏ primarily͏͏ to͏͏ serve͏͏ their͏͏ international͏͏ markets.

Global͏͏ Pricing͏͏ Strategies͏͏ Remain͏͏ Firm:

However,͏͏ despite͏͏ outsourcing͏͏ manufacturing͏͏ to͏͏ India,͏͏ which͏͏ offers͏͏ a͏͏ more͏͏ cost-effective͏͏ alternative͏͏ to͏͏ production͏͏ abroad,͏͏ Nike͏͏ and͏͏ Adidas͏͏ have͏͏ not͏͏ reduced͏͏ prices͏͏ globally.

The͏͏ report͏͏ states,͏͏ “Based͏͏ on͏͏ this͏͏ information,͏͏ we͏͏ believe͏͏ that͏͏ international͏͏ players͏͏ who͏͏ have͏͏ relocated͏͏ their͏͏ third-party͏͏ operations͏͏ to͏͏ India͏͏ are͏͏ unlikely͏͏ to͏͏ pass͏͏ on͏͏ the͏͏ benefits͏͏ of͏͏ reduced͏͏ production͏͏ costs͏͏ to͏͏ Indian͏͏ consumers͏͏ in͏͏ the͏͏ future.”

Regulatory͏͏ Changes͏͏ Impacting͏͏ Quality͏͏ Control:

On͏͏ 30th͏͏ August͏͏ 2024,͏͏ the͏͏ Ministry͏͏ of͏͏ Commerce͏͏ and͏͏ Industry͏͏ revised͏͏ the͏͏ Footwear͏͏ Quality͏͏ Control͏͏ Order͏͏ (QCO),͏͏ granting͏͏ footwear͏͏ manufacturers͏͏ and͏͏ retailers͏͏ a͏͏ transition͏͏ period͏͏ until͏͏ 31st͏͏ July͏͏ 2026͏͏ to͏͏ sell͏͏ products͏͏ that͏͏ do͏͏ not͏͏ display͏͏ the͏͏ Bureau͏͏ of͏͏ Indian͏͏ Standards͏͏ (BIS)͏͏ mark.

Continue͏͏ Exploring:͏͏ Global͏͏ fashion͏͏ giants͏͏ struggle͏͏ as͏͏ India͏͏ mandates͏͏ BIS͏͏ certification͏͏ for͏͏ footwear production

After͏͏ this͏͏ period,͏͏ all͏͏ footwear͏͏ sold͏͏ in͏͏ the͏͏ domestic͏͏ market͏͏ must͏͏ comply͏͏ with͏͏ BIS͏͏ standards.͏͏ However,͏͏ the͏͏ extension͏͏ is͏͏ limited͏͏ to͏͏ sales͏͏ and͏͏ does͏͏ not͏͏ apply͏͏ to͏͏ the͏͏ procurement͏͏ of͏͏ new͏͏ merchandise,͏͏ which͏͏ will͏͏ conclude͏͏ on͏͏ 31st͏͏ July͏͏ 2024.

Local͏͏ production͏͏ in͏͏ India͏͏ is͏͏ anticipated͏͏ to͏͏ further͏͏ expand͏͏ the͏͏ supply͏͏ chain͏͏ footprint͏͏ of͏͏ international͏͏ brands͏͏ like͏͏ Nike͏͏ and͏͏ Adidas;͏͏ however,͏͏ it͏͏ is͏͏ unlikely͏͏ to͏͏ narrow͏͏ the͏͏ price͏͏ gap͏͏ between͏͏ mid-premium͏͏ local͏͏ brands͏͏ and͏͏ their͏͏ international͏͏ counterparts.

Price͏͏ differences͏͏ will͏͏ remain,͏͏ as͏͏ these͏͏ companies͏͏ prioritize͏͏ their͏͏ global͏͏ pricing͏͏ strategies͏͏ and͏͏ profitability͏͏ over͏͏ adjusting͏͏ prices͏͏ for͏͏ local͏͏ markets.

Although͏͏ local͏͏ procurement͏͏ of͏͏ materials͏͏ such͏͏ as͏͏ PVC͏͏ and͏͏ PU͏͏ is͏͏ still͏͏ in͏͏ its͏͏ early͏͏ stages͏͏ in͏͏ India,͏͏ the͏͏ increasing͏͏ number͏͏ of͏͏ third-party͏͏ operations͏͏ offers͏͏ a͏͏ substantial͏͏ opportunity͏͏ for͏͏ local͏͏ raw͏͏ material͏͏ suppliers.

Global͏͏ OEMs͏͏ such͏͏ as͏͏ Shoetown,͏͏ Feng͏͏ Tay,͏͏ Pou͏͏ Chen,͏͏ and͏͏ Apache͏͏ have͏͏ concentrated͏͏ exclusively͏͏ on͏͏ manufacturing͏͏ while͏͏ steering͏͏ clear͏͏ of͏͏ retail͏͏ operations.

As͏͏ companies͏͏ enhance͏͏ their͏͏ back-end͏͏ processes͏͏ and͏͏ work͏͏ to͏͏ streamline͏͏ non-core͏͏ inventory,͏͏ the͏͏ sector͏͏ encounters͏͏ a͏͏ combination͏͏ of͏͏ challenges͏͏ and͏͏ opportunities.

Continue͏͏ Exploring:͏͏ India’s͏͏ footwear market͏͏ set͏͏ for͏͏ double-digit͏͏ growth,͏͏ expected͏͏ to͏͏ reach͏͏ INR͏͏ 191K͏͏ Crore͏͏ by͏͏ FY͏͏ 2028:͏͏ 1Lattice͏͏ Report

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Tiger Global-backed Wow Momo Foods eyes IPO within the next two years

By
M Haziq Pandit
-
0
Wow Momo

Fast-food chain Wow Momo Foods plans to launch an initial public offering (IPO) within the next two years, according to its CEO, Sagar Daryani. The͏͏ popular͏͏ dumpling͏͏ brand͏͏ aims͏͏ to͏͏ mirror͏͏ the͏͏ swift͏͏ growth͏͏ of͏͏ Domino’s͏͏ Pizza͏͏ in͏͏ the͏͏ world’s͏͏ most͏͏ populous͏͏ nation,͏͏ as͏͏ reported͏͏ by͏͏ Reuters.

Rapid͏͏ Growth͏͏ in͏͏ India’s͏͏ Fast-Food͏͏ Sector:

India’s͏͏ USD͏͏ 5͏͏ billion͏͏ fast-food͏͏ industry͏͏ has͏͏ witnessed͏͏ remarkable͏͏ expansion,͏͏ spurred͏͏ by͏͏ a͏͏ surge͏͏ in͏͏ demand͏͏ from͏͏ low-͏͏ and͏͏ middle-income͏͏ families.

Valued͏͏ at͏͏ INR͏͏ 25͏͏ billion͏͏ (USD͏͏ 299.33͏͏ million)͏͏ and͏͏ boasting͏͏ a͏͏ network͏͏ of͏͏ 650͏͏ stores,͏͏ Wow͏͏ Momo͏͏ aims͏͏ to͏͏ be͏͏ the͏͏ first͏͏ major͏͏ local͏͏ fast-food͏͏ chain͏͏ to͏͏ go͏͏ public,͏͏ capitalising͏͏ on͏͏ this͏͏ shift͏͏ in͏͏ consumer͏͏ behaviour.

Revenue͏͏ Growth͏͏ Targets:

Tiger͏͏ Global-backed͏͏ Wow͏͏ Momo,͏͏ which͏͏ reported͏͏ revenue͏͏ of͏͏ nearly͏͏ INR͏͏ 4.8͏͏ billion͏͏ (USD͏͏ 57.47͏͏ million)͏͏ for͏͏ the͏͏ fiscal͏͏ year͏͏ ending͏͏ in͏͏ March,͏͏ aims͏͏ to͏͏ double͏͏ its͏͏ revenue͏͏ to͏͏ INR͏͏ 10͏͏ billion͏͏ over͏͏ the͏͏ next͏͏ 30͏͏ months,͏͏ according͏͏ to͏͏ co-founder͏͏ and͏͏ CEO͏͏ Sagar͏͏ Daryani.

“The͏͏ public͏͏ markets͏͏ are͏͏ experiencing͏͏ significant͏͏ growth…͏͏ The͏͏ IPO͏͏ of͏͏ a͏͏ homegrown͏͏ fast-food͏͏ chain͏͏ in͏͏ India͏͏ will͏͏ transform͏͏ the͏͏ landscape͏͏ for͏͏ the͏͏ fast-food͏͏ industry͏͏ in͏͏ the͏͏ country,”͏͏ Daryani͏͏ stated.

Continue͏͏ Exploring:͏͏ Wow!͏͏ Momo diversifies͏͏ portfolio,͏͏ enters͏͏ dessert͏͏ segment͏͏ with͏͏ Wow!͏͏ Kulfi͏͏ launch͏͏ in͏͏ Kolkata

Thriving͏͏ Public͏͏ Markets:

India’s͏͏ booming͏͏ stock͏͏ market͏͏ has͏͏ reached͏͏ record͏͏ highs͏͏ over͏͏ 50͏͏ times͏͏ this͏͏ year,͏͏ with͏͏ nearly͏͏ 200͏͏ companies,͏͏ including͏͏ e-scooter͏͏ manufacturer͏͏ Ola͏͏ Electric͏͏ and͏͏ telecom͏͏ operator͏͏ Bharti͏͏ Hexacom,͏͏ raising͏͏ billions.

In͏͏ the͏͏ restaurant͏͏ sector,͏͏ franchisees͏͏ of͏͏ Western͏͏ brands͏͏ such͏͏ as͏͏ KFC,͏͏ McDonald’s,͏͏ Burger͏͏ King,͏͏ and͏͏ Domino’s͏͏ have͏͏ entered͏͏ the͏͏ public͏͏ market͏͏ over͏͏ the͏͏ past͏͏ decade.͏͏ One͏͏ of͏͏ the͏͏ latest͏͏ local͏͏ listings͏͏ was͏͏ Barbeque-Nation͏͏ Hospitality,͏͏ which͏͏ went͏͏ public͏͏ three͏͏ years͏͏ ago.

Shares͏͏ of͏͏ Barbeque-Nation,͏͏ based͏͏ in͏͏ Bengaluru,͏͏ Karnataka,͏͏ have͏͏ risen͏͏ nearly͏͏ 28%͏͏ from͏͏ their͏͏ IPO͏͏ price,͏͏ despite͏͏ facing͏͏ challenges͏͏ with͏͏ foot͏͏ traffic͏͏ amid͏͏ inflation-weary͏͏ consumers.

Daryani͏͏ expressed͏͏ his͏͏ intention͏͏ to͏͏ emulate͏͏ the͏͏ success͏͏ of͏͏ Jubilant͏͏ FoodWorks,͏͏ which͏͏ has͏͏ grown͏͏ Domino’s͏͏ from͏͏ a͏͏ single͏͏ store͏͏ in͏͏ India͏͏ in͏͏ 1996͏͏ to͏͏ more͏͏ than͏͏ 1,800͏͏ outlets.

Wow͏͏ Momo,͏͏ which͏͏ sells͏͏ savoury͏͏ dumplings͏͏ priced͏͏ between͏͏ INR͏͏ 109-369͏͏ (USD͏͏ 1.31-$4.42)͏͏ per͏͏ serving,͏͏ aims͏͏ to͏͏ expand͏͏ its͏͏ store͏͏ count͏͏ to͏͏ 1,000͏͏ and͏͏ achieve͏͏ profitability͏͏ based͏͏ on͏͏ a͏͏ core͏͏ earnings͏͏ metric͏͏ within͏͏ the͏͏ next͏͏ two͏͏ years.

Positive͏͏ Sales͏͏ Momentum:

Although͏͏ the͏͏ company͏͏ saw͏͏ a͏͏ decline͏͏ in͏͏ same-store͏͏ sales͏͏ from͏͏ October͏͏ to͏͏ May,͏͏ reflecting͏͏ a͏͏ wider͏͏ slowdown͏͏ in͏͏ the͏͏ Indian͏͏ fast-food͏͏ sector,͏͏ sales͏͏ have͏͏ since͏͏ rebounded,͏͏ becoming͏͏ positive͏͏ from͏͏ June͏͏ to͏͏ September,͏͏ Daryani͏͏ noted.

Continue͏͏ Exploring:͏͏ Wow Momo surpasses͏͏ INR͏͏ 400͏͏ Cr͏͏ revenue͏͏ mark͏͏ in͏͏ FY23͏͏ with͏͏ 88%͏͏ growth

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