Despite strong sales growth, Starbucks India logs INR 81.84 Crore losses

May 24, 2024

Starbucks, a US-based coffee chain, reported a 12% growth in sales to INR 1,218 crore, but losses widened to INR 81.84 crore for its operations in India in FY24.

In India, the brand operates under ‘Tata Starbucks Pvt Ltd‘, a joint venture with Tata Consumer Products, in which both entities hold an equal stake.

According to its latest annual report, Tata Consumer Products bore half of the total loss, amounting to INR 40.91 crore.

A year ago, it had incurred a loss of INR 24.97 crore with sales totaling INR 1086.89 crore.

“The year saw a decline in demand across the Quick Service Restaurant (QSR) sector, leading to subdued growth in our same-store sales,” stated the company in its annual report.

The report further mentioned, “Profitability remained subdued due to the decline in demand across the overall Quick Service Restaurant (QSR) sector.”

During this year, Starbucks opened 95 new stores, exceeding last year’s record of 71 expansions. Their expansion efforts reached 20 new cities, including tier 2 cities. Consequently, the coffee brand now boasts a total of 421 stores spread across 61 cities in India.

Continue Exploring: Starbucks continues expansion in India, opens its first outlet in Manali

In the fiscal year 2023, Tata Starbucks achieved sales of over INR 1000 crore, marking the first instance since its entry into the Indian market in 2012.

“In the fiscal year 2023-24, Tata Consumer Products has witnessed significant milestones across various fronts. Our innovative approach has resulted in a fivefold increase in revenue from innovation within the Indian business over the last three years,” remarked N. Chandrasekaran, Chairman of Tata Consumer Products, addressing shareholders in the company’s annual report for 2023-24.

Starbucks plans to inaugurate 1000 stores in India by 2028. CEO Laxman Narasimhan stated in January of this year that Starbucks intends to launch a new café every third day in India to achieve this objective.

Continue Exploring: Starbucks CEO bullish on India’s coffee market, targets 1000 cafes by 2028

Emerging players such as Pret a Manger, Tim Hortons, and Third Wave Coffee are also expanding their presence in the Indian market by adding more stores.

Under a franchise agreement with Reliance Brands, the British coffee and sandwich chain Pret a Manger currently operates 11 stores in India. Its goal is to inaugurate as many as 100 outlets over the next five years.

The Canadian coffee chain, Tim Hortons, plans to establish over 100 stores within the next three years. Meanwhile, Third Wave Coffee has already surpassed the milestone of 100 stores.

Continue Exploring: TATA Starbucks launches global favourite refreshers in India

Renowned Rameshwaram Cafe introduces ‘Rameshwaram On Wheels’ food truck

SnackTeam

May 24, 2024

Despite a recent bomb blast on March 1, the renowned Rameshwaram Cafe in Bangalore remains resilient, showcasing innovation with the introduction of a new food truck. The establishment, famous for its traditional South Indian cuisine, is now gaining traction with the debut of “Rameshwaram On Wheels,” a mobile kitchen ready to serve at diverse events.

With a cutting-edge kitchen onboard, the food truck can simultaneously prepare 120 idlis and is adaptable for both corporate and personal events. Despite recent obstacles, the cafe continues to attract patrons with its authentic cuisine, maintaining its status as a beloved destination.

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Rameshwaram Cafe reportedly generates INR 4.5 crore monthly, with annual earnings surpassing INR 50 crore. Co-founders Divya and Raghavendra Rao, brought together by a mutual acquaintance, launched their inaugural branch in Indiranagar in 2021. Beyond merely tantalizing taste buds, they’ve made a notable societal contribution by providing employment opportunities to over 200 individuals.

Tata’s affordable fashion label Zudio outpaces Westside, surging ahead with record expansion and sales in FY24

SnackTeam

May 24, 2024

Over the past few years, Zudio, Tata Group‘s affordable clothing label, has been steadily winning over Indian shoppers. Its remarkable expansion has even outpaced that of the long-standing Tata-operated retail giant, Westside.

By the end of the fiscal year 2023-24, Westside boasted 232 stores across 91 cities. In contrast, Zudio, launched in 2016, had surged ahead, reaching 545 stores in 161 cities, as outlined in Tata Group’s Trent company’s annual report for the fiscal year.

In FY24, Zudio expanded into 46 new cities and fortified its position in 48 existing ones. The brand’s sales figures were remarkable, with 90 T-shirts sold every minute, 20 pairs of denim every hour, alongside 19 fragrances and 17 lipsticks. Zudio’s success can be attributed to its emphasis on accessibility, affordability, and appealing product selections.

Continue Exploring: Zudio unveils its biggest store in North India, offering affordable fashion

Reports indicate that the brand’s strategy of reducing lead times, ensuring swift delivery of fresh collections to stores, has been a game-changer for it.

Zudio primarily procures its merchandise from domestic sources in India, prioritizing accessibility, agility, and adaptability. In FY24, Zudio expanded its network by incorporating 203 new stores and renovating 10 existing ones, with an average store size of around 10,000 square feet. The typical investment for establishing a new Zudio outlet usually falls within the range of INR 3-4 crore, encompassing capital expenses, deposits, and inventory.

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Zudio functions as part of Fiora Hypermarket Limited, a wholly-owned subsidiary of Booker India Limited, itself a Trent subsidiary. In FY24, Fiora Hypermarket Limited witnessed an increase in total income to INR 192.33 crore, compared to the previous year’s total income of INR 187.25 crore. The company’s Total Comprehensive Income rose to INR 12.47 crore, marking a notable improvement from the Total Comprehensive Loss of INR 11.98 crore in the preceding year.

Zudio’s outstanding growth and achievements in FY24 reaffirm its standing as a pivotal player in the affordable clothing sector. With a steadfast dedication to accessibility, innovative offerings, and strategic expansion, Zudio remains a dominant force in the Indian retail arena.

Continue Exploring: Tata’s Trent set to outshine competitors as low-priced apparel draws in young buyers

Amrapali Foods launches India’s first D2C delivery of GI-tagged Shahi Litchis from Bihar

SnackTeam

May 24, 2024

Amrapali Foods, drawing on over three decades of expertise in litchi processing, is thrilled to introduce India’s first Direct-to-Consumer (D2C) delivery service for Shahi Litchis. Renowned as the pride of the Muzaffarpur district in Bihar, these exquisite fruits can now be savored by discerning consumers across the nation.

Shahi Litchis, often hailed as the ‘Queen of Litchis,’ boast a distinctive allure that sets them apart from their counterparts. Among the diverse array of litchi varieties cultivated in Bihar, Shahi Litchis hold the prestigious Geographical Indication (GI) designation, a testament to their authenticity and unique attributes. This coveted recognition not only validates their origin but also emphasizes their exceptional qualities, distinguishing them as a premium cultivar. Renowned for their captivating aroma and succulent flesh, Shahi Litchis tantalize the taste buds with a sweet, sugary flavor that epitomizes the essence of summer indulgence. Their robust fragrance and juicy consistency make them a favorite among fruit enthusiasts, offering a delightful sensory experience during their specific harvesting season.

Continue Exploring: Odisha’s red ant chutney officially recognized with GI tag

One of the hallmarks of Shahi Litchis is their reduced seed size, allowing for a higher ratio of flavorful, edible flesh. This distinctive trait enhances their appeal, providing consumers with a more indulgent and satisfying eating experience. Beyond their superior taste and texture, the GI designation carries profound significance, symbolizing not only the geographic origin but also the quality, tradition, and uniqueness embodied by Shahi Litchis. Much like how Champagne is synonymous with the Champagne region of France, Shahi Litchis serve as proud ambassadors of Bihar’s fertile soil and the skillful cultivation practices that have nurtured these regal fruits for generations.

Continue Exploring: India’s fresh fruit exports surge by 29%, market presence expands to 111 countries

Nikhil Singh, the director and chief executive officer of Amrapali Foods, emphasized, “Our Amrapali Shahi Litchi Boxes encapsulate the essence of premium GI-tagged Shahi Litchis. Each box of Original Shahi Litchis contains meticulously selected authentic fruits harvested at dawn. Our meticulous process includes pre-cooling and sulfur treatment to preserve freshness and ensure the elimination of harmful germs. To maintain uniformity, only litchis free from twigs and leaves are chosen, and size grading ensures each litchi weighs an average of 25g. The premium set comprises four punnet boxes, each weighing 500g and crafted with appealing design aesthetics. Storing litchis in a refrigerator can prolong their shelf life, and our cold chain logistics ensure their delivery in a fresh, refrigerated state.”

He shared his excitement, stating, “Our D2C service bridges the gap between Bihar’s orchards and consumers, delivering the essence of these orchards directly to homes. Shahi Litchis represent a regal indulgence, and we’re delighted to make them accessible nationwide. In the coming 3 to 5 years, our aim is to showcase to the world the GI Tagged fruits, food, and other specialties unique to Bihar.”

Continue Exploring: Varanasi’s iconic Tiranga Barfi officially recognized with GI Tag

FMCG giants like Nestle, ITC, and Tata Consumer embrace premiumization with innovative strategies

SnackTeam

May 24, 2024

For the first time, Nestle India, a packaged foods manufacturer, is planning to recruit tasters and connoisseurs of premium foods for its soon-to-be-launched super-premium Nespresso coffee and boutiques.

“The marketing strategy is quite distinct. For instance, establishing a boutique would require a substantial investment, at least a couple of crores. Thus, the branding, positioning, advertising, and event support for the brand need to be notably different,” remarked Suresh Narayanan, the chairman of Nestle India. He emphasized that the company’s focus on premiumization will “usher in a new dimension, enhancing the company’s strengths in coffee, chocolates, and milk.”

Continue Exploring: Nestlé brings Nespresso to Indian market, customers to enjoy full selection by late 2024

Meanwhile, ITC is embracing artificial intelligence (AI) and machine learning (ML) to forecast demand and consumer trends within retail outlets and supply chains. This initiative also involves suggesting the most suitable product packaging for specific stores within its premium portfolio, which encompasses Fabelle chocolates, skincare, and deodorants.

Sandeep Sule, divisional chief executive of trade marketing and distribution at ITC Ltd, which produces Fiama body washes, Engage fragrances, and Fabelle chocolates, stated, “We are utilizing AI and ML models to strategically position our premium portfolio in stores.”

“We’ve established a comprehensive omni-channel distribution network that promotes our premium portfolio across various channels, extending beyond just metropolitan and tier 1 cities,” stated Sule. He highlighted that the contribution of their premium personal care portfolio has doubled within four years.

Continue Exploring: ITC leverages innovative packaging and product premiumization to elevate customer experience

FMCG giants like Nestle, ITC, Tata Consumer, Parle Products, Amul, Britannia, and Parag Milk Foods are embracing new skill sets, micro-segmenting consumers, and overhauling their sales, distribution, and marketing approaches to promote premium products. This marks a significant departure from their traditional strategies focused on selling daily essentials.

Mayank Shah, vice president of biscuit manufacturer Parle Products, emphasized the importance of identifying the target consumer for premium products and aligning strategies accordingly to avoid wastage of resources. He highlighted a shift towards utilizing data and AI for narrow customer targeting to facilitate cross-selling and upselling, a departure from previous practices. Presently, approximately 15-18% of Parle’s product portfolio qualifies as premium, defined as products priced at INR 200-250 per kg and above.

Tata Consumer Products is employing micro-segmentation strategies to reach specific consumer groups, with its premium range showing faster growth rates compared to the company’s overall performance. Sunil D’Souza, managing director at Tata Consumer Products, emphasized the significance of premiumization, citing a burgeoning middle class with increased disposable income as a driving force. This was highlighted in a note to shareholders within the company’s annual report for FY 23-24.

Continue Exploring: Premiumization and cost cuts boost margins for HUL, Tata Consumer, and Nestle India in Q1

The company is leveraging the trend of premiumization by offering products such as Himalayan Saffron and Preserves, dry fruits under the Tata Sampann brand, and ready-to-cook as well as ready-to-eat items under Tata Sampann Yumside in traditional retail settings. Additionally, they’re introducing direct-to-consumer brands like Tata Tea 1868 and Tata Coffee Sonnets, along with Tata Coffee Gold Cold Brew, aiming to provide “cafe-style experiences.”

Gujarat Cooperative Milk Marketing Federation (GCMMF), known for selling Amul ice-cream through pushcarts, retail outlets, and e-commerce platforms, has identified upscale parlors as a key focus channel. This initiative includes the establishment of Amul Ice Lounge stores, which specialize in stocking high-end ice-cream varieties. This shift in strategy is indicative of a broader trend observed across various consumer staple categories.

Parag Milk Foods, renowned for its cheese, milk, and ghee offerings, is actively promoting its premium Pride of Cows milk and dairy products as the standard bearer for the dairy industry. Akshali Shah, executive director at Parag Milk Foods, emphasized their commitment to delivering single-origin milk, ensuring consistency by sourcing from one farm and one breed directly to the consumer’s doorstep.

Continue Exploring: DFM Foods diversifies product range with larger pack sizes, targets premiumization strategy for growth

Rare Rabbit’s FY23 profit soars to INR 32 Cr as sales cross INR 350 Cr mark

SnackTeam

May 24, 2024

House of Rare, a Bengaluru-based fashion brand which operates popular fashion label Rare Rabbit, has nearly doubled its net profit in the financial year ending on March 31, 2023.

The bootstrapped startup has reported a profit of INR 32.2 Cr for FY23, marking an 84% year-on-year increase from INR 17.5 Cr, driven by a rise in sales.

In FY23, the startup saw a 77% year-on-year increase in revenue from operations, soaring to INR 376 Cr from INR 212.5 Cr.

The apparel startup generates its revenue primarily by selling clothing and footwear through its retail outlets, a proprietary e-commerce platform, and online marketplaces.

Taking into account other sources of income, House of Rare’s total income reached INR 381 Cr, marking a 74% increase from INR 219 Cr.

Continue Exploring: Tata Capital eyes $300 Million stake in luxury fashion label Rare Rabbit

In the financial year 2022-23 (FY23), the startup’s total expenditure amounted to INR 338.7 Cr, representing a 72% increase from INR 196.6 Cr.

As an apparel brand, the startup’s primary expenditure was the procurement cost of raw materials. In FY23, the startup allocated INR 136 Cr for this purpose, marking a 77% increase from the INR 76.9 Cr spent in the previous fiscal year.

Nearly 20% of the startup’s total expenses went towards advertising. In FY23, advertising costs surged to INR 63.3 Cr, reflecting a 51% increase from INR 42 Cr.

In FY23, the startup directed INR 39.5 Cr towards employee expenses, marking a 54% increase compared to the previous fiscal year. This encompasses various costs such as salaries, PF contributions, gratuity, ESOP expenses, and other related outlays. The uptick in this spending signifies a growth in the workforce size.

The startup recorded an EBITDA of INR 56.2 Cr in FY23, leading to a 14.9% EBITDA margin, indicating a slight improvement from the 14.4% reported in the previous year.

Established in 2015 by Manish Poddar and Akshika Poddar, The House of Rare manages Rare Rabbit, the women’s fashion wear brand Rareism, and the everyday wear brand Articale.

Interestingly, the startup is reportedly in discussions to secure its first funding round of approximately $60 Mn. A91 Partners is expected to lead the funding, with additional participation anticipated from the family offices of Ravi Modi, the owner of Manyavar, and Nikhil Kamath.

Continue Exploring: Rare Rabbit’s INR 500 Cr funding round may see participation from Nikhil Kamath, Manyavar Family Office alongside A91 Partners

The upcoming funding round is anticipated to primarily involve capital infusion, with a secondary sale expected from the husband-wife founder duo. This funding round is projected to value the startup at approximately $266 Mn.

The startup is said to have generated a revenue of INR 600 Cr in FY24. However, these FY24 figures remain unverified as the startup has yet to file its audited financial statements.

House Of Rare competes with contemporary D2C fashion brands such as Bombay Shirt Company, Snitch, Damensch, The Souled Store, and others.

Reliance Industries targets consumer durables market with Wyzr brand expansion

SnackTeam

May 24, 2024

Reliance Industries Limited plans to strengthen its consumer durable vertical in the coming months with the new brand Wyzr.

The Wyzr brand, managed by Reliance Retail Ventures, plans to manufacture a variety of small appliances, including irons and fans, as well as white goods and consumer durables like refrigerators and televisions, according to a report by Hindu Business Line.

Presently, Wyzr offers a range of products such as air coolers, mixer-grinders, and fans. Reliance aims to expand its portfolio by incorporating additional small kitchen, home, and garment care appliances in the near future.

According to a source familiar with the matter, Reliance Retail aims to establish a made-in-India brand within the consumer durable segment, offering high-quality products at competitive prices.

Continue Exploring: Reliance Retail’s Smart & Smart Bazaar embrace premiumization with diverse product portfolio expansion

Wyzr is targeting to provide cost-effective offerings in this sector, directly challenging the dominance of Chinese brands that have saturated online marketplaces.

Sources indicate that ResQ, a subsidiary of Reliance, is associated with Wyzr and will assist the brand with its after-sales services.

According to The BL report, initially, products will be manufactured on a contract basis, with plans to transition to in-house manufacturing once a certain volume is reached. Reliance has purportedly partnered with multiple manufacturing players within the industry.

The products are expected to be available across all channels, including Reliance’s own e-commerce platforms and other marketplaces. Currently, Wyzr products are accessible on Flipkart.

Continue Exploring: Reliance Retail’s JioMart sees 94% YoY surge in seller base in Q4 FY24

Reliance’s foray into consumer durables is anticipated to entail inorganic expansion. The conglomerate is reportedly considering acquisitions of regional manufacturers renowned for their products’ strong brand recognition.

Coincidentally, Reliance’s expansion into other sectors like pharmacy, furniture, and apparel also entailed acquisitions, such as Netmeds, Urban Ladder, and Zivame. Additionally, Reliance Retail oversees brands like Tira and Ajio, both of which employ a private label strategy.

It remains to be seen whether Reliance opts to integrate Wyzr as a private label under the Reliance Digital umbrella or develop it as an independent business entity in the future.

Continue Exploring: Reliance Retail’s Tira bets big on AI tools to push into Indian beauty market

In the consumer durables sector, established players maintain a firm grip on the market, although startups like fan manufacturer Atomberg have gained significant traction with innovative products in recent times. Additionally, last year, at-home services unicorn Urban Company ventured into the consumer durables space with offerings such as water purifiers and smart locks.

Continue Exploring: Urban Company diversifies portfolio with entry into branded products, launches ‘Native’ water purifiers

Bikaji Foods International’s Q4 net profit surges 200% to INR 116.3 Cr

SnackTeam

May 24, 2024

Ethnic snacks manufacturer Bikaji Foods International reported a 200 percent increase in net profit, reaching INR 116.28 crore for the quarter ended March 31, compared to INR 38.67 crore in the same period last year, according to the company’s announcement to the exchanges.

Sequentially, the profit saw a 153 percent increase compared to INR 45.99 crore in the December quarter.

Additionally, operating revenue climbed by 12.8% to INR 520.82 crore in the March quarter, compared to INR 461.69 crore during the same time in the previous year.

Continue Exploring: Bikaji Foods International delivers strong Q3 performance with 15% net profit surge, reaching INR 46 Crore

EBITDA rose by 10.2 percent to INR 67.5 crore in the reported quarter, compared to INR 61.3 crore in the same period last year, with the margin standing at 13 percent.

The company’s board also approved a final dividend of INR 1 per equity share.

On May 23, the company’s stock price experienced a slight decline of 0.67 percent, reaching INR 533.9 on the BSE.

Continue Exploring: Blackstone-led consortium eyes $8.5 Billion stake in Haldiram snacks, setting stage for India’s largest PE buyout yet

Metro Brands’ Q4 FY24 net profit more than doubles, hits INR 155.57 Cr

SnackTeam

May 23, 2024

Metro Brands, the footwear retail chain, has reported a remarkable 126.3 percent increase in its consolidated net profit, reaching INR 155.57 crore in the fourth quarter ended March 31st, 2024. This substantial growth contrasts with the consolidated PAT of INR 68.74 crore reported in a similar period one year ago, as indicated in the company’s regulatory filing.

In Q4 FY24, the company recorded a total income of INR 607.33 crore, marking a 7.8 percent increase from INR 562.87 crore in the corresponding period of the previous fiscal year.

Total expenses for the company rose to INR 503.73 crore in Q4 FY24, up from INR 468.28 crore in Q4 FY23.

Continue Exploring: Metro Brands teams up with Nextail to revolutionize retail with AI-driven merchandising solutions

According to the BSE filing, Metro Brands recorded a total income of INR 2,427.52 crore in the fiscal year 2023-24, an increase from INR 2,181.51 crore in the preceding fiscal year.

Commenting on the company’s financial performance, Nissan Joseph, CEO of Metro Brands Limited, expressed satisfaction, stating, “Despite the challenging backdrop of FY23 following the post-COVID-19 recovery, I am pleased to note an 11% year-on-year growth in our sales. Moreover, our sales per square foot have risen from INR 17,500 per sq. ft. in FY’19 to INR 18,700 per sq. ft. in FY24, showcasing our effective adjustment to evolving market dynamics and the continued recovery post-COVID.”

Continue Exploring: Indian footwear industry set for exponential growth, projected to reach $90 Billion by 2030: GTRI Report

He added, “Through our strategic initiatives and resilient operational frameworks, we’ve sustained our performance, ensuring effective fulfillment of our customers’ and stakeholders’ requirements. We remain confident that our adaptability and commitment to customer satisfaction will remain key drivers of our growth.”

Metro Brands has expanded its retail partnership with Crocs, securing exclusive ownership and operation rights for Crocs stores throughout western and southern India. Furthermore, the company will maintain operations for all current stores in northern and eastern India. The year saw the opening of a net total of 97 new stores, underscoring the company’s growth and expansion efforts.

Continue Exploring: Crocs India extends exclusive partnership with Metro Brands

Wildcraft India partners with Apparel Group to expand presence across GCC region

SnackTeam

May 23, 2024

Wildcraft India, a renowned outdoor and adventure gear brand, has announced a strategic partnership with the Apparel Group, a prominent fashion and lifestyle retail player based in Dubai, to facilitate its expansion across the Gulf Cooperation Council (GCC) region.

As part of the collaboration, Apparel Group will team up with key retailers for Shop-in-Shop (SIS) collaborations, ensuring widespread availability of the Wildcraft brand across various consumer touchpoints, both offline and online.

The partnership aims to create an exclusive store network spanning all six Middle Eastern countries: Saudi Arabia, UAE, Oman, Qatar, Bahrain, and Kuwait.

Continue Exploring: Wildcraft eyes growth with INR 80 Crore investment in new warehouse facility

“This collaboration marks a significant step in positioning Wildcraft as a leader in outdoor and adventure gear retail within the GCC region,” stated Gaurav Dublish, Co-Founder of Wildcraft India.

Initially, Wildcraft intends to launch specific flagship stores, designed to offer immersive experiences for customers to engage with and understand the brand. This will be followed by the expansion of the store network in the years to come.

Moreover, Apparel Group intends to have Wildcraft listed on prominent e-commerce platforms.

“This partnership represents a significant stride in our continuous endeavor to bring innovative and high-quality brands to the forefront of global retail. We believe that Wildcraft’s distinctive product range will strongly resonate with our clientele, reinforcing our standing as pioneers in the international retail landscape,” remarked Neeraj Teckchandani, CEO of Apparel Group.

Continue Exploring: Safari Industries raises INR 229 Crore in funding from Lighthouse’s AIF, eyes expansion in Indian luggage market

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