Godfrey Phillips India Ltd, a leading cigarette manufacturer, has reported a notable increase of 46.25 percent in its consolidated net profit, amounting to INR 215.12 crore for the fourth quarter ended March 2024. This contrasts with the INR 147.09 crore net profit recorded during the January-March period of the previous fiscal year, according to a regulatory filing from Godfrey Phillips India.
During the quarter under review, its operational revenue saw a notable uptick of 22.86 percent, reaching INR 1,197.13 crore, compared to INR 974.40 crore in the corresponding period of the previous fiscal year.
In the March quarter, Godfrey Phillips witnessed a 21.13 percent increase in total expenses, totaling INR 1,052.66 crore.
Segment-wise Revenue Breakdown
Revenue from cigarettes, tobacco, and associated products experienced a 22.81 percent surge, amounting to INR 1,073.56 crore in the fourth quarter of FY24.
Revenue from retail and associated products stayed steady at INR 101.42 crore, mirroring the figure of INR 100.98 crore from a year prior.
Godfrey Phillips manages the convenience store chain known as 24Seven.
In the March quarter, the total income of Godfrey Phillips India surged by 24.06 percent, reaching INR 1,263.50 crore.
In the financial year that ended on March 31, 2024, Godfrey Phillips saw a 28.03 percent increase in net profit, totaling INR 883.97 crore, compared to INR 690.43 crore in the preceding year.
In FY24, its operational revenue reached INR 5,304.61 crore, marking a 24.53 percent increase from INR 4,259.83 crore the previous year.
In a separate filing, Godfrey Phillips announced that its board, in a meeting held on Thursday, recommended a final dividend of INR 56 per equity share of INR 2 each for the financial year ending March 31, 2024.
In April of this year, Godfrey Phillips made the decision to divest from its unprofitable retail venture, 24Seven. As the flagship company of Modi Enterprises, Godfrey Phillips India manufactures renowned cigarette brands such as Four Square, Red and White, Cavanders, Tipper, and North Pole.
Under a license agreement with Philip Morris, Godfrey Phillips also produces and distributes the Marlboro brand.
On Thursday, shares of Godfrey Phillips India Ltd concluded at INR 3,834.25, marking a decrease of 0.43 percent from the previous closing price.
Annapurna Swadisht Limited (ASL), a Kolkata-based food and beverages company, has recorded a near 84% (83.81%) surge in consolidated net profit at INR 13.13 crore for the year ended March 31, 2024, as compared with INR 7.14 crore in the previous corresponding period.
During 2023-24, the company witnessed a substantial uptick in its consolidated revenue from operations, marking a growth of almost 65.43% to reach INR 264.97 crore, compared to INR 160.17 crore in the previous fiscal year 2022-23.
ASL saw a notable increase in its operating profit (EBITDA), rising nearly 108% to INR 28.13 crore during FY24 from INR 13.54 crore in FY23. It reported an EBITDA margin of 10.62% in FY24, marking a 216 basis points improvement from the previous year’s 8.46%.
Shreeram Bagla, Managing Director at Annapurna Swadisht, attributed the increased margins to improved economies of scale, expansion into high-margin products, and stabilization of raw material prices. During H2FY24, the company witnessed a 41.54% growth in revenue from operations, reaching INR 133.84 crore, compared to INR 94.56 crore in H2FY23.
The company’s standalone net profit soared by 99.15% to reach INR 14.22 crore in FY24, compared to INR 7.14 crore in FY23. Standalone revenue from operations also experienced a substantial increase, rising by 65.43% to INR 264.97 crore in 2023-24, compared to INR 160.17 crore in the preceding year.
Strategic Initiatives and Acquisitions
Regarding the company’s performance, Bagla remarked, “The fiscal year 2023-24 has been remarkable for Annapurna Swadisht. We’ve implemented several strategic initiatives to bolster our presence in existing markets while diversifying our product portfolio in the packaged food sector. Our expansion into the biscuits and noodles segments, alongside the recent acquisition of Arati branded mustard oil from R R Proteins and Agro Limited, underscore our commitment to growth. Furthermore, we enhanced our leadership team by appointing Gajanan Prasad Sah Kalwar, former Global CEO of Chaudhary Group, renowned for the Wai Wai brand noodles, as Joint Managing Director, positioning us for the next phase of growth.”
Bagla also highlighted that the strong demand for branded packaged snacks, particularly from Tier III and Tier IV markets, has been a key driver behind the company’s impressive performance in FY24.
Foodtech giant Zomato‘s shares took a hit of around 5% during intraday trading on Friday (May 31), falling to as low as INR 172.5 from the previous day’s close of INR 180.55. This decline was spurred by Macquarie‘s prediction of a nearly 50% decrease in Zomato’s share price over the next 12 months.
Maintaining its ‘underperform’ rating, the Australian brokerage firm set a price target of INR 96 for Zomato’s stock, representing a 46.7% decrease from the current market price.
The brokerage firm notes increased competitive pressure on Zomato within the quick commerce sector. While acknowledging that Zomato’s quick commerce arm, Blinkit, holds a decent position in the rapidly expanding Indian quick commerce ecosystem, it still anticipates downsides to both consensus forecasts and margins.
Reliance Industries’ Entry into Quick Commerce
It’s worth mentioning that this development follows closely on the heels of reports indicating that Reliance Industries Ltd (RIL), led by Mukesh Ambani, is gearing up to enter the quick commerce segment through its digital commerce platform, JioMart.
The company is expected to commence grocery deliveries in certain cities within a 30-minute timeframe starting next month.
According to Macquarie, this move is likely to benefit RIL while posing a challenge to Blinkit’s operations. NDTV Profit quoted the firm as stating, “The company intends to leverage its in-house last-mile logistics arm, Grab, and is expanding its delivery partner network, as well as considering collaborations with third-party EV bike logistics providers.”
Blinkit’s Performance and Positive Sentiment
Nevertheless, Blinkit has maintained a commanding lead in India’s quick commerce competition for several years. Analysis reveals that Blinkit has consistently been the preferred choice for consumers, outpacing competitors like Zepto, Swiggy Instamart, Dunzo, and Tata-backed BigBasket’s BBNow.
The positive consumer sentiment was evident in Blinkit’s performance for the quarter ending March 31, 2024 (Q4 FY24). With a remarkable 97% year-on-year (YoY) increase in its gross order value during the quarter, Blinkit recorded a revenue of INR 769 crore. For the entire fiscal year, the revenue surpassed INR 2,300 crore.
Due to the favorable upswing, several other brokerages have expressed optimism about Zomato. Following a robust performance in Q4 FY24, Bernstein increased its price target (PT) for Zomato to INR 230 from INR 200 previously. This upward revision in PT was largely attributed to the strong performance of Blinkit.
However, according to Bloomberg data, Macquarie has maintained the least optimistic outlook on the stock.
The brokerage’s cautious stance comes after reports surfaced of Blinkit facing protests from its delivery executives in Delhi and Mumbai. In certain areas, delivery partners staged strikes over a recent modification in Blinkit’s weekend payout structure for delivery executives around mid-May.
Nonetheless, the company’s shares regained some momentum on the BSE, reaching INR 180.15 by 3:15 PM.
Samarth Narang and Rashi Narang, Co-Founders, Heads Up For Tails
Heads Up For Tails, a petcare brand that recently ventured into the global market with its first store in Singapore, is targeting a 5% revenue contribution from international sales this fiscal year. Co-founders Rashi Narang and CEO Samarth Narang have set their goal to increase this figure to 15% by the end of the next fiscal year.
Looking ahead, the brand plans to further expand its presence in international markets by entering Dubai, Nepal, Bangladesh, and Kuwait.
“We have independently entered the Singapore market, but we are seeking a partner to facilitate our entry into Dubai, which will serve as the gateway to the GCC market. Additionally, we are seeking franchise partners in countries such as Nepal, Bangladesh, and Kuwait,” they explained.
Store Openings and Investments
During this fiscal year, the brand intends to open 5 stores in international markets and aims to double this count by the end of the next fiscal year.
“For Singapore, we will invest 1 million SGD this fiscal year and 750,000 SGD the following year. In Dubai, we’ve allocated 500,000 USD for this financial year,” they stated.
The newly opened store in Singapore occupies a 500 sq.ft area and features 2,200 SKUs.
Domestic Expansion and Investment
Additionally, the brand is planning to invest INR 15 crore to expand the pet food manufacturing capacity of its 2 production facilities located in Bengaluru, aiming to meet the demand for the next 3-5 years.
“Currently, the combined area of both facilities is 70,000 square feet and operates at more than 70% capacity. We anticipate reaching 90-92% capacity utilization by the end of this year,” they asserted.
Currently, private labels account for 52% of the brand’s revenue, with plans to increase this to 65-70% within the next 24 months.
In India, the brand runs 93 retail outlets and aims to open 7 additional stores by the end of July.
“We aim to have 112 stores operational by the end of this fiscal year and anticipate opening 150 stores by the end of the next fiscal year. The majority of the planned stores will be situated in tier I and II cities such as Jaipur, Amritsar, Indore, Bhubaneshwar, Guwahati, Jodhpur, Raipur, Patna, and Orissa,” they said.
“All these stores will be owned and operated by the company,” they further added.
Of the 93 stores operated by the brand, 88 are owned and operated by the company, while the remaining 5 are managed by franchise partners.
The typical store size for the brand covers an area of 850 sq.ft, with an approximate CAPEX of INR 30 lakh required to open each store.
“We plan to invest INR 12 crore to support our expansion plans in India,” they said.
Financial Performance and Projections
The brand, which provides 8,000 SKUs online and 2,200 SKUs offline, generates 70% of its revenue from brick-and-mortar stores, while the remaining 30% comes from online sales.
“Presently, our blended CAC stands at INR 700, with an online average order value of INR 2,450 and an offline average order value of INR 2,890. Our repeat customer ratio online is 32%, whereas offline it stands at 66%,” they asserted.
The brand, which concluded the previous fiscal year with a revenue of INR 278 crore, aims to conclude this fiscal year with a revenue of INR 345 crore.
“We aim for a sustainable 30-35% growth annually. We anticipate achieving EBITDA profitability by the end of the next fiscal year. Therefore, with our top line projected at INR 345 crore this fiscal year, we expect to be EBITDA negative by approximately INR 30 crore,” they concluded.
Blinkit, the quick commerce platform, has expanded into Surat by opening its first dark store in the city. Surat becomes Gujarat’s fourth city to benefit from Blinkit’s services, after Ahmedabad, Gandhinagar, and Vadodara.
Opening the dark store in Surat strategically targets the city’s burgeoning need for swift and hassle-free shopping options. Surat, renowned as the diamond city, showcases a thriving economy and dense population, offering Blinkit a substantial chance to serve a tech-savvy clientele prioritizing efficiency and ease of access.
Expanding its rapid delivery service to Surat, Blinkit endeavors to fulfill the changing preferences of customers who value convenience and swiftness in their shopping encounters. This initiative not only extends Blinkit’s presence in Gujarat but also reaffirms its dedication to revolutionizing the shopping landscape for everyday necessities in the city.
Blinkit focuses on delivering a wide range of items including groceries, fresh produce, meat, stationery, bakery goods, personal care products, baby essentials, pet supplies, snacks, and flowers. In the fiscal year 2023-2024, Blinkit’s total revenue exceeded INR 2,300 crore. Additionally, during Q4 alone, it expanded its network by adding 75 net new dark stores.
Known for their innovative sweet and sour lollipops, Arasha Foods, a young confectionery company based in Pune, is carving out a niche in the Indian market with innovative and affordable products. Priyanshu Bansal, the company’s founder, shared insights into their journey, focusing on their strategic emphasis on general trade over modern trade, and how this choice is propelling their growth.
Priyanshu Bansal’s passion for confectionery began at a young age. “As a kid, I loved and enjoyed indulging in confectionery products, many of which were imports,” he reminisced. His exposure to trade fairs in Dubai and India, courtesy of his father, ingrained in him a deep interest in the F&B space. This early fascination culminated in the establishment of Arasha Foods in November 2021; however, it started operating in January 2022. Our goal was to establish a mass premium confectionery brand offering innovative candy products at affordable costs, filling a significant gap in the market,” Bansal explained.
Innovative Product Offerings
Arasha Foods has distinguished itself by offering unique, innovative products like sour candies and lollipops with a twist. “To thrive in the retail offline sector, you have to stand out from the crowd,” Bansal stated. Their product line includes sour candies and a lollipop with a sweet-sour combination, which have little competition in the market. “Larger players find these categories too small to enter, but for a bootstrap company like ours, these niches are huge opportunities,” he added.
Since its inception, despite the short timeframe of just three months of FY22-23, the brand managed to achieve a turnover of approximately INR 30-35 lakhs with just two products: the icy juicy and another category in the dare drop space.
Whereas, FY23-24, presented a new set of challenges as the company navigated the offline retail space. “We faced several setbacks because the offline market was new to us,” Bansal explained. Coming from a background in real estate and trading activities, the FMCG sector was a significant shift for both Bansal and his father.
“We tried many new things and, inevitably, made some mistakes,” Bansal admitted. Despite these hurdles, Arasha Foods managed to generate over INR 2 crores in revenue for FY23-24, even while operating in just a few cities and maintaining a cautious growth approach.
Market Expansion Strategy
He revealed that for their market expansion strategy, the brand has adopted a methodical approach, starting with tier-one cities before moving into tier-two markets. “We enter one city at a time and only move on after we believe we have sufficiently covered it,” Bansal said.
This strategy has proven effective, with surprising insights along the way. For instance, their products perform exceptionally well in Navi Mumbai compared to South Mumbai. “This insight was unexpected, as we initially thought South Mumbai would be our primary market. However, we discovered a stronger demand in Navi Mumbai,” Bansal noted.
Having said that, Bansal attributes much of the brand’s success to their cautious yet strategic focus on general trade. This approach has laid a strong foundation for Arasha Foods, enabling them to navigate the complexities of the FMCG market and set the stage for future growth.
Bansal believes that for a young brand, general trade offers more substantial opportunities compared to the challenging landscape of modern trade.
“At an early stage, it’s challenging to get numbers in modern trade due to high listing fees and stringent conditions,” Bansal explained. This insight has led Arasha Foods to prioritize traditional distribution channels, which now account for 90-95% of their revenue.
“We work through distributors, sales representatives, and sales officers to reach our customers. This traditional approach has allowed us to establish a solid presence and build our brand effectively. Furthermore, our focus has always been on offline general trade. This is because offline engagement, where consumers can physically pick up, try, and taste the product, will ultimately drive growth,”
Bansal then explained why the brand is not so into the modern trade. “The high costs and inefficiencies of modern trade make it less viable for early-stage brands like ours. For example, I once saw an imported gummy brand in a Pune store with a misleading label hiding beef gelatin content. Modern trade often favors imported products without scrutiny, making it tough for domestic brands like ours to compete,” he said.
According to him, in modern trade, the consumer is generally more informed and knows what they’re buying, which simplifies the retailer’s job. However, the challenge lies in negotiating with these retailers.
Future Growth Plans
Looking ahead, Arasha Foods aims to achieve a turnover of INR 5 crores in the current financial year, with 70% of the business expected from general trade.
Additionally, Arasha Foods is also exploring quick commerce platforms like Zepto and Blinkit, planning to launch a guilt-free lollipop made from natural flavors and low sugar content. “Quick commerce holds significant potential for us, and we are actively working on products suited for this segment,” Bansal revealed. While e-commerce hasn’t been a primary focus, they plan to expand into platforms like Amazon and Flipkart to increase product trials.
For over sixty years, Nutella, the beloved hazelnut cocoa spread, has been a source of delight for consumers worldwide. To commemorate its sixtieth anniversary, Nutella is adding a special touch by celebrating India’s diverse and iconic landscapes. Introducing limited-edition landscape jars showcasing the renowned scenery of various Indian states, Nutella aims to make its anniversary celebrations even more memorable.
The limited-edition landscape Nutella jars are designed to inspire consumers to appreciate and celebrate the beauty of India. Through these jars, the brand aims to take Indian consumers on a local culinary journey, captivating their hearts and palates.
Each jar is adorned with the vibrant and scenic beauty of ten states: Punjab, Kashmir, Uttar Pradesh, Maharashtra, Goa, Karnataka, Rajasthan, Tamil Nadu, Kerala, and West Bengal (Darjeeling). These landscape jars seamlessly blend the joy of breakfast with breathtaking views, showcasing the spread’s versatility and its unique pairing with each state’s renowned local foods. From the appam of Kerala’s serene backwaters and the poie of Goa’s picturesque beaches to the bakarkhani of Kashmir’s valleys and the khooba roti of Rajasthan’s deserts, each combination with Nutella exemplifies the irresistible fusion of traditional and modern flavors at the breakfast table.
Commenting on the launch of the new landscape jars, Zoher Kapuswala, Marketing Head at Nutella, Ferrero India, said, “We believe that food and landscapes together create a unique identity. India, with its iconic landscapes, is a popular destination for people worldwide. To make our 60th anniversary more memorable and breakfast mornings more joyful, we’ve introduced these special landscape jars, offering consumers a perfect blend of food and their favorite scenery. We hope these jars inspire consumers to appreciate the beauty of our country and enjoy the delightful experience of pairing Nutella with each state’s beloved foods.”
As Nutella celebrates 60 years of winning consumers’ hearts, it invites them to try these recipes at home. By simply scanning the QR code on the landscape jars, consumers can easily access these delightful recipes.
Flipkart‘s hyper-value e-commerce platform, Shopsy, saw a remarkable surge during its first Mega Shopping Dhamaka sale from May 16th to 19th. The event witnessed a 60% increase in new customers and a 50% surge in daily demand.
With over 160 million products available for free delivery, Shopsy observed that 41% of its new users were first-time shoppers on the platform.
Kapil Thirani, head of Shopsy, expressed, “Our first Mega Shopping Dhamaka aimed to deliver the thrill of budget-friendly shopping and unbeatable prices right to our customers’ fingertips. The overwhelmingly positive response underscores the trust and confidence our customers have in us.”
Product Trends and Regional Insights
T-shirts, sarees, and bedsheets garnered the highest interest, with significant demand coming from tier 2 and tier 3 cities. Among them, Cuttack, Guwahati, Gorakhpur, Mysore, and Salem emerged as the top contributors.
Throughout the sale, Shopsy offered a variety of items at incredibly low prices, including lipsticks priced under INR 45, artificial plants under INR 45, and choppers and containers under INR 95. Additionally, there were limited-time deals where select items were available for as little as INR 1.
Customers were guaranteed doorstep delivery within a span of six days.
Shopsy recently expanded into the children’s category by introducing its summer collection across over 100 verticals.
Founded in 2007, Flipkart comprises several group entities such as Myntra, Flipkart Wholesale, Flipkart Health+, and Cleartrip. With a registered user base surpassing 500 million, Flipkart boasts a vast selection of 150 million products spanning over 80 categories. The platform hosts over 1.4 million sellers, including those from Shopsy.
AbCoffee, a Mumbai-based tech-enabled coffee chain, has unveiled its 41st coffee counter in Gurugram, according to a senior company official’s social media post.
The latest Point Of Sale (PoS) marks the company’s 14th PoS in Delhi-NCR and is situated within Global Foyer Mall, Palam Vihar, Gurugram.
“Inaugurating our deck signals the commencement of an enchanting journey for coffee aficionados in the Delhi NCR region. Swing by for a swift energizer and relish the impeccable fusion of efficiency, convenience, and excellence at abCoffee – where each sip narrates a tale and every moment is embraced with a smile,” expressed Ruben Samuel, City Operations Manager-Delhi, AbCoffee, in a LinkedIn update.
Earlier this month, the coffee retailer unveiled a new deck in Sector 18, Gurugram.
Gap Inc., a renowned Californian clothing and accessories retail chain, has opened a new store in Pune’s Amanora Mall, as revealed in a social media post by the mall.
Founded by Donald Fisher and Doris F. Fisher, Gap Inc. is currently operated by Reliance Retail. It manages Gap-branded stores across India, both in physical locations and online.
“The anticipation ends now! We’re delighted to unveil Gap, Reliance Retail at Amanora Mall. Explore the newest fashion trends with Gap at Amanora Mall,” shared Amanora Mall in a recent LinkedIn post.
The mall has introduced several new outlets, featuring brands like Nykd by Nykaa, Meena Bazaar, Burger Singh, and Yousta.
Earlier, the brand had opened stores in both Mumbai and Pune.
Gap Inc., founded in 1969, provides clothing, accessories, and personal care items for men, women, and children through retail stores, franchised outlets, and online channels. Its operations are divided into four main divisions: Gap, Banana Republic, Old Navy, and Athleta. In February 2023, the company unveiled its initial standalone store in India at Infiniti Mall, Mumbai, after setting up over 50 Gap shop-in-shops in 2022.
Reliance Retail Ltd (RRL), the retail branch of Reliance Industries Ltd., manages a comprehensive omni-channel network comprising more than 18,774 stores and digital commerce platforms.
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