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

Quick Commerce

October 23, 2025

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.

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

Growth

SnackTeam

October 23, 2025

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.

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

Beverages

SnackTeam

October 22, 2025

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.

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

Beverages

SnackTeam

October 22, 2025

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.

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

FMCG

SnackTeam

October 22, 2025

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.

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

Fashion

SnackTeam

October 22, 2025

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.

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

Growth

SnackTeam

October 21, 2025

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.

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

Growth

SnackTeam

October 21, 2025

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.

Kidswear Label Orange Sugar Raises Rs 4 Crore to Expand D2C and Quick Commerce Channels

Kids
Growth

SnackTeam

October 21, 2025

Homegrown kidswear brand Orange Sugar has raised Rs 4 crore in a pre-seed angel funding round led by Consumer Collective by Atrium and Ramakant Sharma, marking a key milestone in its journey to become a trusted name in children’s apparel. The round also saw participation from several notable angel investors including Saurabh Jain, Srivatsan Chari, Kunal Mahipal, Meghana Agarwal, and Sunil Khaitan.

Founded by Tarun Agrawal, Payal Agarwal, and Bharath Gupta, Orange Sugar focuses on everyday cotton essentials for children up to 10 years old. The brand has positioned itself in the premium comfortwear space, combining soft, breathable fabrics with child-safe design. The latest infusion of capital will be directed toward expanding product categories, strengthening e-commerce and quick commerce presence, and scaling offline retail in major Indian cities.

Speaking about the milestone, Tarun Agrawal, co-founder of Orange Sugar, said, “This fundraise validates our mission to bring quality and trust to the children’s apparel category. With the backing of experienced investors, we’re now ready to innovate faster, reach more families, and build a stronger brand ecosystem.”

Orange Sugar currently retails through leading platforms such as Myntra, FirstCry, and Nykaa Fashion, along with its own D2C website, which has recorded consistent traction in recent quarters. The company also plans to enhance its parent engagement programs, strengthen supply chain efficiency, and build a wider retail footprint to capture India’s fast-growing kidswear market, projected to touch Rs 1.5 lakh crore by 2028, driven by rising disposable incomes and demand for safe, stylish children’s clothing.

With its latest fundraise, Orange Sugar aims to establish itself as a homegrown, design-forward label that combines everyday practicality with thoughtful craftsmanship — a positioning that resonates strongly with today’s young, urban parents.

Scarters’ New Luggage Line to Boost Average Order Value, Propel FY26 Growth Plans

SnackTeam

October 21, 2025

Mumbai: Direct-to-consumer lifestyle brand Scarters is charting an ambitious path for FY26, aiming for 50% year-on-year growth as it steps into the premium luggage and travel gear segment. The bootstrapped company, known for its design-led work accessories, expects its newly launched cabin luggage and suitcase collection to drive higher average order values (AOVs) and broaden its customer base.

After maintaining steady growth of 20-25% annually, Scarters anticipates AOVs to rise from ₹7,500 to the ₹20,000–₹30,000 range this fiscal year. “With our luggage portfolio now live, we’re seeing strong demand from frequent travelers and professionals. It’s a natural evolution for the brand as we continue to innovate across lifestyle categories,” said Darshan Shah, Founder of Scarters.

What began as a niche work accessories venture during the pandemic has grown into a complete lifestyle ecosystem spanning tech gear, wallets, organizers, and travel products. The company has remained profitable, choosing to reinvest earnings to fuel organic expansion.

Currently, tier-1 cities such as Mumbai and Bengaluru contribute nearly 80% of Scarters’ sales, with increasing traction from tier-2 regions like Pune, Surat, and Ahmedabad. Around 95% of total sales come from online platforms, with Scarters’ website alone accounting for nearly 70%. The brand is also piloting offline formats through airport counters and shop-in-shop models with partners like Broadway and Relay.

Scarters’ approach blends functionality with design innovation. Its newly launched cabin suitcase, developed over three years and now patent-pending, features a modular sleeve system allowing users to change looks and utility without replacing the core unit. The company also plans to enter lifestyle segments such as pickleball, golf, and travel accessories.

“We’re not chasing hyper growth,” Shah said. “Our focus is on building a brand that stands for thoughtful design, quality, and longevity.”

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