India’s largest consumer goods players are bracing for potential disruptions in Nepal, where political unrest has raised concerns over supply chains, distribution networks and employee safety.
PepsiCo’s bottling partner Varun Beverages, which earns nearly 3% of its consolidated revenue from Nepal, is among the companies most exposed. Dabur, ITC, Marico, and Hindustan Unilever also run significant operations in the Himalayan nation through their Indian listed entities. Industry executives say the immediate priority is ensuring the security of partner teams operating in border districts.
Reliance Consumer Products, which only in July this year launched Campa soft drinks in Nepal in collaboration with Wai Wai-maker Chaudhary Group, is also assessing risks. “We see the Nepal issue to be a slight overhang for most consumer staples,” noted Abneesh Roy, executive director at Nuvama Institutional Equities, in a client advisory.
Close to a dozen Indian companies across packaged food, soft drinks, and hospitality sectors are active in Nepal, underscoring the scale of exposure. Jaipur-based Bikaji Foods International entered the market just two months ago through a 50:50 joint venture with Chaudhary Group for manufacturing, marketing and distribution of its snacks portfolio.
Executives point out that Nepal’s geographic closeness to India magnifies the concern. “Our partner teams are on high alert, and their safety is the top priority,” said a senior executive at a listed FMCG company, who requested anonymity.
While most firms have not yet reported operational disruptions, analysts caution that prolonged instability could affect supply chains and consumer demand in Nepal, which has become a growth market for Indian FMCG players in recent years.
Walk into any Indian city today, and you’ll see Reliance Smart, More Retail, or D-Mart packed with shoppers. At the same time, neighborhood kirana stores continue to thrive. This raises the obvious question for entrepreneurs: is opening a retail or supermarket business still worth it?
The short answer: yes—but only if you understand the margins, the competition, and the changing habits of Indian consumers.
Why Supermarkets Look Attractive
The allure of the supermarket model is scale. A single outlet can serve thousands of customers daily, with a product range that spans groceries, personal care, home essentials, and even electronics. Footfall drives volume, and in retail, volume is where the profits lie. Chains like D-Mart have built billion-dollar businesses on this formula, combining bulk procurement, efficient supply chains, and competitive pricing.
For smaller entrepreneurs, supermarkets promise:
Higher ticket sizes compared to kirana stores.
Brand credibility and trust.
Opportunities for expansion through franchising or multiple outlets.
The Margin Game
Margins in the supermarket business are notoriously thin. Essentials like rice or wheat offer 5–8% margins, FMCG items around 10–15%, and premium or non-essential products up to 25–30%. The real money is made not from individual products but from sheer sales volume.
To make it worth the effort, supermarkets rely on:
Efficient supply chains to cut procurement costs.
Private labels (D-Mart and Reliance both push their in-house brands for better margins).
Add-ons like electronics, fashion, or household goods with higher markups.
The Challenges You Can’t Ignore
High setup cost: Renting a large space in a prime location, interiors, shelving, refrigeration, and staff can easily run into crores.
Competition from kiranas: While supermarkets attract bulk shoppers, local kirana stores still dominate daily essentials with credit and home delivery.
E-commerce and quick commerce: Apps like BigBasket, Blinkit, and Zepto are training customers to shop from their phones rather than visit a store.
Thin margins: Even with volume, profits can feel underwhelming if costs aren’t tightly controlled.
Town Advantage: The Midway Path
Interestingly, small-town supermarkets are emerging as a profitable sweet spot. They face less competition from e-commerce, enjoy lower rentals, and cater to aspirational customers who prefer modern retail formats. A 5,000 sq. ft. supermarket in a tier-2 city often breaks even faster than a metro outlet because costs are lower and loyalty is stronger.
Is It Worth It?
If you’re chasing quick profits, supermarkets may disappoint. But if you’re thinking long-term, willing to invest in efficient sourcing, smart technology, and customer loyalty programs, retail can still be a solid bet.
For proof, look no further than D-Mart’s phenomenal rise—its no-frills, volume-first strategy has turned it into India’s most valuable retail chain. On the other hand, poorly managed ventures like Future Group’s Big Bazaar serve as cautionary tales of high debt and poor execution.
The Bottom Line
Opening a retail or supermarket business is worth it if you approach it with scale and efficiency in mind. It’s not just about stocking shelves; it’s about building supply chains, leveraging data, and adapting to customer needs in an increasingly digital world.
In metros, hybrid models that blend offline supermarkets with online delivery options seem to be the future. In towns, supermarkets thrive on community trust and aspirational shopping. Either way, success lies in understanding that retail is no longer just a store—it’s an ecosystem.
For any new FMCG or food brand in India, cracking modern retail chains like Reliance Smart or D-Mart is a long road. The real entry point for most startups is the humble kirana or small grocery store. These shops are the backbone of India’s $800 billion retail market, and if your packaged product finds space there, you’ve won your first—and most loyal—customers.
So, how do you convince a grocery store owner to stock your product?
Start with Trust, Not Just a Sales Pitch
Small store owners are risk-averse. They already stock products that sell daily—biscuits, chips, soaps—so convincing them to replace or add something new requires trust. Approach the shopkeeper directly, introduce your product, and offer free samples so both he and his customers can try it.
Offer Margins That Make Sense
Retailers survive on margins. If a packet of biscuits from Parle gives them 10–12%, your product should ideally offer equal or better margins to make it attractive. For new brands, 15–25% retailer margin is common to ensure owners are motivated to push your product.
Support with Visibility
Don’t just drop off cartons and hope for sales. Provide free point-of-sale materials like posters, wobblers, or branded racks. Some startups even supply small display units so their product stands out instead of getting lost in a pile of FMCG giants.
Build Demand Locally
Retailers will only reorder if the product moves off their shelves. To ensure this, create local buzz:
Offer free sampling near the store.
Run buy-one-get-one offers in the first few weeks.
Encourage customers to ask for your brand by name—this makes the retailer more confident about stocking it again.
Be Flexible on Credit and Supply
Many kiranas work on short credit cycles with distributors. Be prepared to offer flexible payment terms (say, a week’s credit) and ensure timely replenishment. If your product is always available, store owners are more likely to rely on you.
Scale Through Distributors
Once you’ve cracked 10–20 shops on your own, partner with a local distributor. Distributors already supply dozens of kiranas daily. Getting your product into their basket is the fastest way to expand reach without handling every retailer yourself.
The Bottom Line
Getting a small grocery store to sell your packaged product isn’t about big marketing—it’s about building relationships, trust, and local demand. If you can offer good margins, strong visibility, and consistent supply, shopkeepers will welcome you. Remember, kiranas thrive on customer loyalty. If their customers start asking for your product, the retailer will stock it without hesitation.
The path to becoming the next Parle-G or Haldiram doesn’t start in a boardroom—it starts with one grocer agreeing to put your product on his shelf.
Step inside a mini grocery store in any Indian town, and you’ll see the real engine of the country’s retail economy. From dawn until late night, these compact outlets—often no bigger than 300–800 sq. ft.—keep households running with rice, wheat, pulses, soaps, snacks, and dairy stacked neatly on shelves. They may look small, but they operate on finely tuned systems built on trust, quick turnover, and razor-thin margins.
Core Operations: Daily Essentials and Fast Turnover
Mini grocery stores survive on volume, not margins. Staples like flour or oil move quickly, even with margins as low as 5–8%. Packaged foods, confectionery, and toiletries bring in higher margins (10–20%). The mix is carefully curated to ensure that cash keeps flowing every single day.
Most stores operate on a cash-and-carry model. Customers buy daily or weekly needs in small quantities, which means inventory moves fast, minimizing the risk of unsold stock.
Supplier and Credit Cycles
Owners typically source goods from wholesale markets, distributors, or company salesmen. Payment often happens in short credit cycles—anywhere from 7 to 21 days. This balance between credit received from suppliers and cash sales to customers is what keeps the mini grocery’s cash flow healthy.
Customer Relationships: The Real USP
Unlike supermarkets, mini grocery stores thrive on personal connections. Shopkeepers often:
Extend short-term credit (udhaar) to trusted families.
This personal touch builds loyalty that big chains struggle to match.
Technology and Modern Shifts
Even small stores are modernizing. UPI payments and QR codes are now common, reducing the reliance on cash. Some owners use simple POS software to track sales and inventory. WhatsApp has become an informal ordering platform—customers send a list, and the shop delivers within hours.
Challenges of Mini Grocery Stores
Running a mini store isn’t without hurdles:
Thin margins make profits highly dependent on volume.
Competition from supermarkets and online players like Zepto or Blinkit is rising.
Inventory management is tricky; stocking too much leads to waste, too little risks lost sales.
Yet, mini grocery stores remain resilient because they blend accessibility, trust, and convenience.
Why They Still Thrive
Despite the retail revolution, mini grocery stores continue to dominate in India, accounting for over 85% of the grocery market share. Their success lies in being hyperlocal—knowing their customers better than any app or supermarket. In towns and neighborhoods, these stores aren’t just businesses; they’re part of the community’s daily rhythm.
The Bottom Line
A mini grocery store operates on simplicity: fast-moving goods, personal customer service, and smart cash flow management. It may not have the scale of D-Mart or the technology of Amazon Fresh, but its neighborhood trust and adaptability make it one of the most resilient business models in India.
For aspiring entrepreneurs, understanding how these small stores function offers lessons in efficiency, customer loyalty, and survival in a highly competitive market.
Gurgaon-based startup Zoop, which positions itself as India’s first interactive video bazaar, is set to receive its maiden funding from Peak XV Partners. According to people familiar with the deal, the investment is expected to be in the range of ₹25–30 crore, giving the young company a financial push to scale operations in a fast-emerging retail format.
Zoop operates at the intersection of commerce and entertainment, allowing sellers to livestream their products across multiple digital platforms and engage directly with consumers. The concept builds on the growing global trend of live commerce, where shopping becomes a participatory experience rather than a static transaction.
Founded by Abhishek Nevatia, Raghav Dalela and Sanchi Virmani, Zoop is run by a lean team with an average age of just 25 years. According to LinkedIn data, the company currently employs between 11 and 50 people. Despite its size, the startup is positioning itself to take on incumbents such as BulBul, Sim Sim, Pesopie and ShoprTV, which are already experimenting with interactive commerce formats in India.
Industry trackers say live commerce in India is still in its early days but is projected to grow significantly as younger consumers seek immersive shopping experiences. Globally, markets like China have already seen livestream-based retail account for double-digit percentages of overall e-commerce sales.
“Zoop is trying to reimagine the HomeShop18 model for the modern consumer with technology and interactivity at its core,” said one person close to the development. The platform pitches itself as a digital bazaar that merges discovery with delight, bringing back the charm of curated marketplaces but in a real-time, mobile-first format.
For Peak XV Partners, which has been expanding its portfolio across new-age commerce ventures, Zoop represents a bet on the next evolution of online retail in India.
Trufrost & Butler, a fast-growing player in commercial refrigeration and foodservice equipment, has raised $7 million in growth funding from private equity firm Carpediem Capital. The company said the infusion will be used to strengthen domestic manufacturing, accelerate order fulfilment, expand its service infrastructure, and selectively enter international markets.
Founded in 2018 by industry veterans Neeraj Seth and Satish Dudeja, the company caters to a wide spectrum of clients including cafés, quick service restaurants, cloud kitchens, hotels, bakeries, bars and fine-dining establishments. Its portfolio spans refrigeration systems, cooking ranges, beverage dispensers, and other commercial kitchen essentials. Unlike traditional vendors, Trufrost & Butler positions itself as a solutions partner with a service-led model and low capital expenditure options aimed at faster returns for food and beverage operators.
Over the past five years, the company has built a footprint across major Indian cities, supported by beverage specialists and culinary consultants who work with clients on efficiency and product innovation. “This investment reflects our vision of reshaping the foodservice equipment sector with reliable products and robust support,” said Neeraj Seth, Co-founder and Managing Director. “It will allow us to scale our manufacturing base, improve service delivery, and prepare for overseas expansion while deepening our commitment to the Indian market.”
Carpediem Capital, which focuses on consumer and services businesses, sees the company as a strong contender in an otherwise fragmented industry. “Trufrost & Butler has demonstrated sharp execution and built trust in a sector where reliability is critical,” said Hithendra Ramachandran, Managing Director at Carpediem Capital. “We believe it has the potential to emerge as a category leader by bringing structure, scale and innovation to the market.”
Mars Cosmetics, among the fastest-growing players in India’s beauty and personal care segment, has appointed Anmol Sahai Mathur as its vice president of marketing. The move comes as the company prepares for its next phase of growth in a highly competitive market expected to touch $30 billion by 2030, according to industry estimates.
Mathur brings over a decade of experience in digital marketing, brand building, and creator partnerships. He returns to Mars with prior familiarity of the company’s values, which focus on accessible pricing, product innovation, and inclusivity. His mandate will be to sharpen brand identity, strengthen digital engagement, and roll out campaigns that resonate with diverse consumer segments across India.
Before this appointment, Mathur led digital marketing efforts at the Open Network for Digital Commerce (ONDC), where he managed initiatives in influencer outreach, content strategy, and digital branding. His earlier roles included leadership stints at social platforms Triller and Eloelo, where he worked on scaling user acquisition and engagement.
Commenting on the appointment, Mathur said he aimed to build marketing campaigns that reflect the “bold and open beauty philosophy” of Mars while deepening consumer trust. “This is about creating impactful stories and conversations that connect emotionally with people across markets,” he said.
Rishabh Sethia, business administrator at Mars Cosmetics, noted that bringing Mathur back was a deliberate move. “He understands our DNA and has the expertise to guide us through the next stage of expansion. His leadership will help us reach new customers while reinforcing our promise of affordable and high-quality products,” Sethia said.
With this appointment, Mars Cosmetics is signaling its intent to scale aggressively in India’s beauty market while continuing its push for inclusive campaigns under its “Makeup for Everyone” vision.
Commercial interior design and build startup Flipspaces has raised $50 million in a fresh Series C funding round, taking its total capital raised in this round to more than $85 million. The latest financing, announced on Monday, will be used to scale operations in India, the United States and the United Arab Emirates, while also bolstering its proprietary technology platform.
The round saw participation from CE-Invests, based in the UAE, Panthera Growth Partners from Singapore, and Japan’s SMBC Asia Rising Fund. Earlier this year, Flipspaces closed a $35 million investment led by Iron Pillar, with backing from Synergy Capital Partners and Prashasta Seth. The latest tranche also enabled an exit for early investor Carpediem Capital.
Kunal Sharma, founder and chief executive officer, said the company plans to channel the proceeds into three areas: artificial intelligence-led technology development, international market expansion, and targeted acquisitions across its key geographies. “We are creating a technology-first ecosystem that redefines how interior design and execution are delivered globally,” Sharma said.
Founded in 2015 by Sharma along with Ankur Muchhal, Vikash Anand and Mrinal Sharma, Flipspaces has built a platform-driven model that integrates business development, design, procurement and project management. The company also offers virtual reality walkthroughs that allow clients to visualize and tweak layouts before execution. Its next phase of technology innovation includes AI tools aimed at enhancing efficiency, transparency and delivery timelines in what remains a fragmented global interiors industry.
Flipspaces has delivered more than 1,000 projects covering eight million square feet across its three core markets. In India, it has largely focused on commercial office spaces, while in the US its portfolio includes restaurants and cafés. Its client roster features large enterprises such as Adani, Genpact and Larsen & Toubro.
The Food Safety and Standards Authority of India (FSSAI) has begun the process of revising the country’s organic food regulations in a move aimed at bringing them in line with evolving global benchmarks. A senior official confirmed that a dedicated committee has been set up to draft the new framework, which will govern certification, accreditation, and labelling for organic products.
The revision comes at a time when India’s organic sector has gained prominence internationally, both as a supplier and as a consumer-driven market. Current regulations, framed under the Food Safety and Standards (Organic Foods) Regulations, 2017, draw heavily from the National Programme for Organic Production (NPOP), last updated in 2014. That programme governs certification processes, accreditation norms, and use of the “India Organic” label.
“India is in the process of updating its overall guidelines for organic farming. Naturally, this requires organic food standards to be revisited as well,” the official said. While no timeline has been fixed for the release of new regulations, the overhaul will extend to all organic agricultural products.
The NPOP framework, operated under the Ministry of Commerce, has long served as the backbone of India’s organic certification ecosystem. It works in parallel with the participatory guarantee system managed by the Ministry of Agriculture and Farmers’ Welfare. Importantly, NPOP’s crop standards already enjoy recognition as “equivalent” by the European Commission, Switzerland, and Great Britain, enabling smoother trade in organic produce.
The revised regulations are expected to factor in recent changes in international rules, particularly in the EU and North America, where stricter definitions of organic farming and traceability requirements are emerging. With India’s organic exports growing steadily over the past two decades, industry players view the regulatory upgrade as crucial to maintaining credibility and expanding market access.
A man from Coimbatore has triggered a wave of debate online after pointing out that ordering food through Swiggy turned out to be far more expensive than picking it up himself from the same restaurant just a short distance away. The customer, Sunder (@SunderjiJB), posted screenshots on X comparing the bills. He said his Swiggy order came to ₹1,473, but when he went to the outlet—barely two kilometres from his home—the exact same meal cost only ₹810. That’s a difference of ₹663, or nearly 81 percent more.
Sharing the bills, he asked Swiggy directly: “Why is the app charging so much more for the same food? Is this what convenience really costs?” His post has already been seen more than 2.1 million times.
Swiggy hasn’t yet responded to this particular complaint, though the company has previously said that the prices shown on its app are set by restaurants themselves. A representative from Swiggy Cares had earlier explained that menu rates can vary between dine-in and delivery, and the decision lies with the restaurants, not the platform.
The frustration comes at a time when both Swiggy and Zomato have quietly increased their “platform fee” again, hoping to cash in on the festive season surge. Swiggy, headquartered in Bengaluru, has raised its platform fee three times in just three weeks, now charging ₹15 per order (including GST). Meanwhile, Gurugram-based Zomato recently hiked its fee by 20 percent, taking it to ₹12 per order (excluding GST).
Given Swiggy handles around 20 lakh orders daily, it is pulling in close to ₹3 crore a day solely from platform fees. Zomato, which sees 23 to 25 lakh daily orders, earns a similar amount.
Even with these extra earnings, both companies remain under financial pressure. Their quick-commerce arms—Swiggy Instamart and Zomato-owned Blinkit—continue to be capital-heavy and eat into profits.
What exactly is a platform fee?
It’s an additional charge tacked onto your bill, separate from delivery fees, packaging, restaurant charges, surges, and taxes. Companies say it helps cover logistics and operating costs, cushions the burden of running resource-heavy services like quick commerce, and adds to margins. But for many customers, especially now during the festive rush, it’s become a symbol of how expensive “convenience” really is.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
