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Colgate-Palmolive India Maintains Margins Despite GST Impact; Net Sales at ₹1,507 Crore

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Colgate-Palmolive India Maintains Margins Despite GST Impact; Net Sales at ₹1,507 Crore

Colgate-Palmolive India reported a muted second quarter for FY26 as the recent goods and services tax (GST) cut on oral care products disrupted its trade channels, leading to a dip in sales. Net revenue for the quarter stood at ₹1,507 crore, down 6.3% year-on-year, while net profit fell to ₹328 crore from ₹395 crore a year earlier. Sequentially, revenue rose 6.1% from ₹1,421 crore in the previous quarter.

The government’s decision to reduce GST on toothpaste and other oral care items from 18% to 5% came as a relief for consumers but caused temporary disruptions for distributors and retailers as they adjusted to new pricing structures. “We welcome this progressive move as it boosts consumer confidence and recognises oral health as a national priority,” said Prabha Narasimhan, Managing Director and CEO of Colgate-Palmolive India. She added that while the GST change affected the quarter’s performance, the company expects a steady rebound in the second half of the fiscal year.

Despite the sales dip, Colgate maintained its operating margins, supported by its cost-efficiency initiative, Funding The Growth. The company continued to invest in innovation and premiumisation with launches such as Colgate Visible White Purple and Palmolive Moments body wash range featuring natural extracts and signature fragrances. It also intensified marketing efforts for Colgate Strong Teeth through the “Cavity-Proof” campaign, promoting its 24-hour anti-cavity Arginine + Calcium Boost technology for children.

The board of directors declared a first interim dividend of ₹24 per share for FY26.

While the GST cut temporarily slowed trade activity, analysts expect benefits to emerge in the coming quarters as lower prices drive higher consumer offtake. Colgate said it remains focused on long-term brand building and premium growth within India’s expanding oral care market.

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Nestle’s India Business Hits Record ₹5,411 Crore Quarterly Sales, Reckitt Stays Strong

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Nestle’s India Business Hits Record ₹5,411 Crore Quarterly Sales, Reckitt Stays Strong

India has emerged as a rare bright spot for global consumer goods giants Nestle SA and Reckitt Benckiser, even as both companies grapple with slowing growth and operational turbulence across major international markets.

For the first time, Nestle SA spotlighted India in its post-earnings call as a high-performing market with strong growth momentum. The company’s global CFO, Anna Manz, credited continued investment in strategic emerging markets such as India, Malaysia, Indonesia, and Pakistan for offsetting weakness elsewhere. Nestle India, which manufactures popular brands like Maggi and Purina, reported a 10.8 percent year-on-year rise in domestic sales to ₹5,411 crore for the September quarter—its highest-ever quarterly revenue—driven by broad-based volume growth.

Globally, however, Nestle SA faced a challenging nine months, with sales slipping 1.9 percent year-on-year to $82.8 billion. The Swiss food major also underwent major leadership changes, including the exit of its chairman and two chief executives within a year. Newly appointed CEO Philipp Navratil announced plans to cut 16,000 jobs worldwide, calling the move a “hard but necessary decision” to realign operations.

Meanwhile, Reckitt Benckiser also highlighted India as a standout market, despite short-term disruptions caused by recent Goods and Services Tax (GST) adjustments. The company reported strong sell-out performance across its hygiene and health portfolio, including Dettol and Lysol, but noted that revenue growth was temporarily affected by the GST transition. Reckitt’s emerging markets segment grew 15.5 percent during the quarter, led by robust demand in India and China.

CFO Shannon Eisenhardt confirmed that India’s low single-digit growth in the September quarter was a result of GST-related phasing, with expectations of a rebound in the following months. Other FMCG majors such as Hindustan Unilever, Dabur, and Godrej Consumer Products have also flagged similar short-term disruptions linked to the GST overhaul.

India’s sustained consumer demand and expanding retail ecosystem, however, continue to anchor optimism for multinational players betting on emerging markets for future growth.

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Zomato, Blinkit Parent Eternal Under GST Lens Again, Faces ₹128 Crore Demand from UP

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Adding to its growing list of tax disputes, Zomato and Blinkit’s parent company, Eternal, has been served a goods and services tax (GST) demand order worth ₹128.4 crore by the Uttar Pradesh State Tax Department. The order, issued by the Deputy Commissioner of State Tax in Lucknow, covers the financial period between April 2023 and March 2024. It includes a GST demand of ₹64.2 crore along with an equivalent penalty, citing short payment of output tax and excess input tax credit claims.

The company confirmed the development in a stock exchange filing dated October 18. “The company has received an order confirming a demand of ₹64.2 crore with applicable interest and a penalty of ₹64.2 crore. We believe we have a strong case on merits and plan to appeal before the appropriate authority,” Eternal stated.

This latest notice adds to a series of tax demands faced by the company across several states in recent years. Eternal has previously received GST-related notices of ₹401.7 crore from Maharashtra in 2023, ₹2.2 crore from Delhi, ₹4.6 crore from Tamil Nadu, ₹17.7 crore from West Bengal, ₹803.4 crore again from Maharashtra, ₹1.3 crore from Uttar Pradesh, and ₹40 crore from Karnataka in 2024–25.

The latest order follows the company’s Q2 FY26 results, where Eternal reported a sharp 63% year-on-year drop in consolidated net profit to ₹65 crore. However, revenue surged 183% to ₹13,590 crore, led by Blinkit’s rapid expansion. Blinkit’s revenue jumped nearly nine times year-on-year to ₹9,891 crore, after the platform adopted an inventory-led model, increasing control over product assortment.

Meanwhile, Zomato’s food delivery business continues to face slower growth amid weak discretionary spending and rising competition in quick commerce. Eternal, which rebranded from Zomato in March 2025, also noted that new GST 2.0 rules have impacted delivery margins, as services by non-registered partners now attract an 18% tax passed on to customers.

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Reliance Retail Posts ₹3,457 Crore Profit in Q2, Sees Strong Gains Across Grocery and Fashion

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Reliance Retail Ventures Ltd (RRVL), the retail arm of Reliance Industries Ltd, reported a 22% year-on-year rise in consolidated net profit to ₹3,457 crore for the quarter ended September 2025, supported by strong festive consumption and continued network expansion across formats.

Revenue from operations increased 19% to ₹79,128 crore compared with the same period last year, while earnings before interest, tax, depreciation, and amortisation (Ebitda) grew 16.5% to ₹6,816 crore. The Ebitda margin narrowed slightly to 8.6% as the company absorbed higher operating costs and discounts tied to festive promotions.

Isha M. Ambani, Executive Director of Reliance Retail Ventures, said the results reflect the company’s commitment to operational excellence and long-term growth investments. “Our strong performance this quarter reflects festive momentum across categories, strategic investments in digital platforms, and continued focus on curating collections that resonate with the modern Indian shopper,” she said.

Category performance and growth drivers
The grocery and fashion & lifestyle businesses led the growth, rising 23% and 22% year-on-year, respectively. Consumer electronics grew 18%, driven by robust sales of televisions and air conditioners under the Reliance Digital brand. Packaged food sales were up 20%, staples rose 18%, and home and personal care products grew 13%. Fresh produce volumes surged 62% from a year earlier.

Reliance Retail added 412 new stores during the quarter, bringing its total to 19,821 outlets across India. The retail footprint stood at 77.8 million sq. ft, marginally lower than a year ago due to the company’s format optimisation strategy.

FMCG business restructuring
Reliance confirmed that its fast-moving consumer goods arm will be spun off into a new entity, New Reliance Consumer Products Ltd (New RCPL), ahead of RRVL’s planned IPO. The FMCG division posted gross revenue of ₹5,400 crore in the quarter, with its Campa beverage brand maintaining a double-digit market share.

At its annual general meeting earlier this year, Reliance reiterated its ₹1 trillion revenue target for RCPL within five years, as it strengthens its consumer products portfolio alongside its retail and digital ventures.

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Heineken Cuts 2025 Beer Sales Guidance as Demand Softens in Key Markets

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Amsterdam-based brewer Heineken has revised its 2025 global beer sales guidance downward, citing persistent macroeconomic challenges and softer consumer demand in key markets. The company now expects a modest decline in annual volume, marking a further reduction from its previous forecast. Despite this, third-quarter revenue performance exceeded analyst expectations, and the company reported gains in market share in select regions.

Heineken’s CEO, Dolf van den Brink, noted that economic volatility intensified during the third quarter, particularly affecting Latin America and Europe. “We expect demand to recover when conditions normalise,” van den Brink said, signaling optimism for the medium term. Analysts have largely anticipated the slowdown, with consensus estimates projecting a 1.8% drop in volumes and a 3.9% increase in annual profits.

In Latin America, trade tensions and shifting consumer behavior contributed to shipment volume contractions in the mid-teens, though Heineken secured market share gains in Brazil and Mexico. Europe also saw subdued consumption, partly due to prior pricing disputes affecting shelf space. Conversely, emerging markets such as Vietnam showed notable improvements, demonstrating the brewer’s resilience in previously challenging territories.

Heineken’s third-quarter results revealed a 0.3% decline in net revenue, narrowly outperforming the expected 0.8% dip. Volume fell 4.3%, in line with forecasts. While price increases have offset declining volumes in some regions, the global beer sector continues to face structural headwinds, including rising health consciousness, competition from alternative beverages, and the growing influence of wellness-focused products.

Looking ahead, Heineken maintains its annual organic operating profit target at the lower end of the previously guided 4–8% range. Investors have welcomed the clarity on volumes and profits, interpreting the commentary as largely in line with expectations. The brewer remains focused on strategic market positioning, efficiency improvements, and sustaining growth despite challenging macroeconomic conditions.

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Coca-Cola Maintains Annual Targets as India Volumes Decline in Monsoon Quarter

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Coca-Cola’s India business faced a slowdown in the July–September quarter as prolonged monsoon rains weakened demand for its summer-focused beverage portfolio. Despite the temporary setback, the Atlanta-based beverage giant remains confident about India’s long-term growth potential, according to chairman and CEO James Quincey.

“India, because of the monsoon, and China, due to economic pressures, underperformed our expectations in terms of volume,” Quincey said during the company’s third-quarter earnings call. He added that the company saw sequential improvement in September, suggesting early signs of recovery in key Asian markets.

Coca-Cola maintained its full-year sales and profit outlook, even as the Asia-Pacific region reported a decline in volume across all operating units, weighed down by softer consumer spending and unfavorable weather conditions in markets such as India and the Philippines. India remains Coca-Cola’s fifth-largest market by volume globally, underscoring its strategic importance within the company’s international portfolio.

Earlier this month, rival PepsiCo also cited weather disruptions and heightened competition as reasons for slower growth in India’s beverage sector, though both companies expect the category to recover in the coming quarters.

On the strategic front, Coca-Cola achieved a major milestone in its Indian operations by advancing its long-term bottling refranchising plan. The company recently sold a 40 percent stake in Hindustan Coca-Cola Beverages (HCCB) to the Jubilant Bhartia Group, a move Quincey described as one of the “last two major steps” in a process that began in 2015. The company reported a net gain of $102 million and transaction costs of $7 million from the India refranchising deals in the first nine months of 2025.

Globally, Coca-Cola’s unit case volume rose 1 percent, while net revenue increased 5 percent year-on-year to $12.46 billion, surpassing analyst expectations amid gradually improving demand trends.

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Consumers to Get Bigger Packs at Same Price as FMCG Firms Adjust to GST Cut

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India’s daily essentials are poised to return to their familiar “magic price points” by mid-November, as the government has allowed fast-moving consumer goods (FMCG) manufacturers to increase pack weights instead of cutting prices to reflect recent GST reductions. The move is expected to simplify pricing and restore normalcy in kirana stores and modern retail outlets after weeks of confusion.

Following the September 22 GST rate cut, FMCG companies were compelled to move away from round price tags since there was no clarity on adjusting pack weights. That left consumers and retailers dealing with awkward prices such as ₹4.45 for a biscuit pack or ₹1.77 for a shampoo sachet. Now, with a verbal nod from the Central Board of Indirect Taxes and Customs (CBIC), companies can resume selling ₹5 or ₹10 packs by slightly increasing product quantity—typically between 6% and 12%.

Mayank Shah, vice president of Parle Products, said fresh production has already started in segments like snacks, while categories requiring packaging changes will follow suit shortly. “Consumers will soon see ₹5 and ₹10 packs back on shelves, with more weight for the same price,” he said.

The industry expects the shift to ease operational and consumer challenges. Angelo George, CEO of Bisleri International, said the return to rounded price points “was only a matter of time,” emphasizing that consumers prefer predictable pricing.

Earlier, companies like Mondelez and Bisleri had introduced odd prices—₹26.69 for Bournvita and ₹9 for a 500 ml water bottle—to reflect the tax benefit. Retailers often rounded off or compensated with candies, complicating transactions.

While most players are set to follow the new structure, Amul has opted to maintain its reduced prices until formal notification, saying the intent behind the GST cut was to pass on savings directly to consumers.

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Italian Brand OVS Begins India Journey with Delhi Launch, Focuses on Sustainable Fashion

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Italian fashion retailer OVS S.p.A. has officially entered the Indian market, opening its first 9,000 sq. ft. flagship store at Pacific Mall in Delhi. The launch marks a key milestone in the brand’s global expansion as it prepares to compete with international players such as Zara, H&M, and Uniqlo.

The company aims to bring the essence of Italian fashion—quality, longevity, and affordability—to Indian consumers, setting itself apart from fast-fashion trends. “We don’t believe in fast fashion. Our garments are made to last, using biocotton and recyclable fabrics,” said Carmine Di Virgilio, Global Chief Retail Officer at OVS Global.

Unlike many global brands that enter India through partnerships, OVS has opted for a direct investment model, a move that underscores its long-term commitment. “We prefer to go direct so we can train our teams in Italy and replicate the same brand experience here,” Di Virgilio explained. He added that OVS is investing not only in retail spaces but also in building a strong local team and robust operations network.

Despite higher operating costs, OVS will maintain price parity with Italy, ensuring its products remain competitively priced. “If we lose the right price, we lose the customer. We’d rather invest in the market than in margin,” Di Virgilio said.

The brand plans a measured rollout, with a second store set to open in Mumbai by spring-summer 2026, followed by two to three more by the end of the year. Initially, OVS will focus on physical retail to help consumers experience its products before expanding online.

With over 2,000 stores globally and €1.63 billion in 2024 net sales, OVS enters India with confidence, aiming to blend Italian craftsmanship with the aspirations of a new generation of Indian shoppers.

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TABP Snacks & Beverages Bags $3 Million to Boost Production and Strengthen Nationwide Distribution

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Coimbatore-based beverage company TABP Snacks & Beverages Pvt Ltd, known for catering to India’s fast-growing regional markets, has raised around $3 million (₹25 crore) in fresh equity funding. The round saw participation from LC Nueva Capital, Entrust Family Office, and individual investors Arun Kumar Mukherjee and Soumya Malani, signaling strong investor confidence in the company’s growth trajectory.

Founded by Prabhu Gandhikumar, TABP has emerged as a promising player in India’s value-driven beverage segment. From its beginnings in Coimbatore, the company has expanded operations to 11 states across India, establishing a strong foothold in Tier-2 and Tier-3 markets that form the heart of the “Bharat” consumption story.

LC Nueva, which first invested in the company in 2021, highlighted TABP’s consistent performance and sharp execution. Since that initial backing, the company has achieved an impressive compound annual growth rate (CAGR) of over 60 percent, driven by a mix of product innovation, distribution expansion, and consumer-centric offerings.

“TABP represents the best of what Bharat has to offer — resilience, innovation, and a deep understanding of local markets,” LC Nueva said in a statement. “This is not an overnight success but the result of years of focus and execution. We are proud to continue backing Prabhu and his team as they scale this homegrown brand nationwide.”

TABP plans to utilize the newly raised capital to expand production capacity, strengthen supply chain networks, and introduce new product lines targeted at mass and regional consumers. The company’s expansion underscores the growing appetite for affordable, quality beverages beyond metro India, and the rising investor interest in home-grown consumer brands that understand India’s diverse consumption landscape.

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Coca-Cola Considers $1 Billion IPO for Indian Subsidiary Amid Record IPO Rush

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Coca-Cola Co. is reportedly evaluating plans to list its Indian bottling subsidiary, Hindustan Coca-Cola Beverages Pvt. Ltd. (HCCB), in what could be one of India’s largest beverage sector IPOs. According to people familiar with the matter, the offering could raise close to $1 billion and value the company at around $10 billion.

Discussions with investment bankers have taken place in recent weeks, though the beverage giant has yet to appoint advisors for the transaction. If approved, the public listing could take shape sometime in 2026. Sources cautioned that the structure, timing, and size of the deal remain under consideration as deliberations continue. Coca-Cola has not issued an official comment.

A potential listing of HCCB would mark a major milestone for the Atlanta-based company’s India operations, which have grown to become one of its largest international markets. The move would also align Coca-Cola with a rising trend of global corporations tapping India’s robust IPO market. Over the past year, several multinational firms, including Hyundai Motor and LG Electronics, have listed their Indian arms, raising $3.3 billion and $1.3 billion respectively.

India’s IPO pipeline remains strong, buoyed by strong retail participation and a surge of domestic liquidity. A Coca-Cola listing would likely attract significant investor interest, given the company’s deep retail penetration across India. HCCB currently serves more than 2 million retailers and operates 14 bottling plants across 12 states, employing over 5,000 people.

However, Coca-Cola faces mounting competition in the Indian beverage market, particularly from Reliance Industries’ Campa Cola, which has been expanding aggressively with its value-priced offerings.

Recently, Coca-Cola also sold a minority stake in Hindustan Coca-Cola Holdings Pvt. Ltd., HCCB’s parent company, to the Jubilant Bhartia Group — a move analysts see as part of a broader effort to localize ownership ahead of a potential market debut.

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