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Mamaearth parent Honasa Consumer ordered to pay INR 56.6 Crores compensation to UAE distributor

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Mamaearth Honasa Consumer

Honasa Consumer Ltd, Mamaearth‘s parent company, has been directed by a UAE court order to pay compensation totaling INR 56.6 Crores to a former distributor. This development comes just ahead of the company’s earnings call for the fourth quarter of FY24.

The United Arab Emirates’ Court of full Commercial Jurisdiction-(Court of First Instance) Dubai has ordered Honasa to compensate RSM General Trading, its former distributor in the Middle East and Africa markets, for improper contract termination.

RSM General Trading served as Honasa’s distributor from July 30, 2020, until January 17, 2023.

Continue Exploring: Mamaearth parent Honasa Consumer plans merger of two subsidiaries to eliminate cost duplication and enhance efficiency

In a filing with the exchange, the company stated that on May 16, the court issued an order to pay its former distributor a fine of AED 25.07 million, equivalent to approximately INR 56.6 crores, as compensation. Additionally, the court mandated a legal interest rate of 5% from the date the judgment becomes final until full payment is completed, along with AED 1,000 (INR 22,665) as attorney fees.

Nevertheless, Honasa stated that it considers the court’s decision to be without merit and therefore insignificant to its operations.

“The Company holds the view that the judgment lacked merit and was erroneous, as it failed to properly consider the facts and submissions presented by the Company. Consequently, the Company is currently in the process of filing an appeal with the Court of Appeal (Dubai) to contest the ruling issued by the Court of First Instance,” stated the company.

Honasa terminated its partnership with the distributor a few months before its public listing in India. Prior to being listed in November 2023, the company had intentions to bolster its international expansion endeavors, with a focus on Bangladesh, Malaysia, Vietnam, and Thailand.

During that period, the company was actively seeking to broaden its footprint in the UAE through strategic acquisitions or organic growth. However, these initiatives appeared to have been delayed as a result of the termination of the contract with RSM General Trading.

Currently, it remains uncertain whether Honasa has ventured into international markets with alternative distributors.

Continue Exploring: Mamaearth parent Honasa Consumer sees 250% YoY surge in net profit to INR 26.1 Crore in Q3FY24

In addition to the flagship brand Mamaearth, Honasa possesses and manages The Derma Co, Aqualogica, Ayuga, Dr. Sheth’s, BBlunt, and Momspresso. However, Momspresso was closed down prior to the IPO.

Following its initial public offering, Honasa has experienced a robust surge in profits. In the third quarter of FY24, it recorded a remarkable 264% rise in its consolidated net profit, climbing to INR 25.9 Crores from INR 7.1 Crores in the corresponding quarter of the previous year.

Nevertheless, this represented an 11% sequential decrease from the INR 29.4 Crore profit it reported in the preceding September quarter.

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DS Group targets INR 5,000 Cr sales from confectionery business in 5 years, eyes expansion into tier II and III cities

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DS Group
DS Group

Dharampal Satyapal Group (DS Group), a domestic FMCG company, aims to achieve a revenue of INR 5,000 crore in the next five years from its confectionery division. This goal comes after surpassing the INR 1,000-crore milestone in 2023-24, as stated by a senior company official. The conglomerate, renowned for its brands like Pulse, Pass Pass, Rajnigandha Pearls, Chingles, Pulse Natkaare, and LuvIt in the confectionery segment, plans to expand its sales outlets in India to approximately 50 lakh within the next five years, a significant increase from the current 26 lakh outlets.

“Our confectionery division has seen a growth of over 20% in the past three years, while the industry has grown at 9%,” shared Dharampal Satyapal (DS) Group Vice Chairman Rajiv Kumar. “We have surpassed the INR 1,000-crore sales turnover mark in 2023-24. Our next target is to reach INR 5,000 crore within the next five years.”

Continue Exploring: DS Group’s confectionery business achieves INR 1,000 Cr sales in FY24

He also mentioned that the group intends to boost the confectionery business, aiming for a Compound Annual Growth Rate (CAGR) of around 30% over the next five years, employing both organic and inorganic growth strategies.

Regarding investments, he noted that there won’t be substantial investments in manufacturing since it is outsourced to third-party facilities across India.

Continue Exploring: FMCG giant DS Group appoints Jyotiroop Barua to lead confectionery business

Nevertheless, he mentioned that expenditures on advertising and promotions would be ramped up as needed. In the fiscal year 2023-24, the group allocated INR 100 crore for advertising in the confectionery category.

“We’re expanding our footprint in South India. Within the next year, we aim to double our outlets to a minimum of 50 lakh from the current 26 lakh. Our focus will be on tier II and III cities as well as rural markets,” Kumar stated.

Continue Exploring: DS Group’s Catch Spices hits INR 1,000 Crore in sales, plans expansion into ready-to-cook and digital-first products

“At present, the company holds a dominant position in North and East India, with plans underway to broaden its presence in South and West India,” he added.

Looking ahead, he mentioned that the company will sustain its leadership in the Hard-boiled Candy (HBC) and Indian ethnic confectionery (IEC) segments, while also venturing into new segments like chocolate.

Continue Exploring: DS Group boosts portfolio with acquisition of LuvIt Chocolate brand, solidifying market position

“Moving forward, our objective is to enhance our influence in the chocolate market while tactically advancing our leadership in the Indian ethnic confectionery domain with inventive product lines,” Kumar stated.

As part of the company’s sustainability drive, he mentioned that DS Group currently utilizes more than 800 electric vehicles for distributing confectionery products and plans to expand this fleet in the future.

Continue Exploring: DS Group brings Italian luxury to India with first Brioni boutique in Delhi

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Challenges mount for hyperlocal platform Dunzo as key investor Lightbox steps down from board

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Dunzo
Dunzo

Lightbox, the key investor of cash-strapped hyperlocal platform Dunzo, has stepped down from its board seat,adding to the challenges faced by the startup as it grapples with financial difficulties.

With an 11.1% stake, Lightbox stands as the platform’s third-largest shareholder, trailing behind Reliance Retail (25.8%) and Google India (19.3%). However, Lightbox’s latest decision to step down from its board seat represents a significant shift, leaving Dunzo without a representation from any of its primary investors.

According to Moneycontrol, the sequence of board exits began in 2023. Between the months of August and October, Reliance Retail and Lightrock executives resigned from their board positions. In addition, former Lightbox partner Siddharth Talwar announced his resignation from the board in August 2023.

Dunzo cofounders Dalvir Suri and Mukund Jha also vacated their board seats before departing the company. The current board comprises cofounder and CEO Kabeer Biswas and STIC Investments’ Hongjim Kim.

Continue Exploring: Dunzo’s leadership exodus continues: Co-Founder Mukund Jha steps down

Established in 2015 by Kabeer Biswas, Dalvir Suri, Mukund Jha, and Ankur Aggarwal, Dunzo serves as a platform connecting consumers with local stores and enabling deliveries of various essentials such as groceries, medicines, and food, catering to everyday requirements.

As reported last year, its venture into the quick commerce realm with Dunzo Daily resulted in a significant surge in its cash expenditure, placing the company in a precarious position.

Due to its fragile financial condition, Dunzo has become ensnared in a barrage of legal notices from vendors. Google India, Nilenso, Clover Ventures, Facebook India, Cupshup, Koo, and Glance are among the vendors collectively owed approximately INR 11.4 Cr.

Continue Exploring: Legal troubles mount for struggling Dunzo as companies seek payment resolution

The financial pressure on the Bengaluru-based quick commerce startup is apparent from its fiscal year 2023 figures. Dunzo suffered a significant loss of INR 1,801 Cr in FY23, marking a notable rise from INR 464 Cr in the previous fiscal year.

A number of employees have raised concerns regarding the non-payment of salaries and the delay in final settlements for those who were let go.

Continue Exploring: NCLT warns Dunzo of moratorium over unpaid dues worth INR 4 Cr

Despite a 317% growth in operating revenue to INR 226.6 Cr in FY23, the company faced significant expenses while investing in the quick commerce model. Consequently, Dunzo has largely scaled back its quick commerce operations and shifted focus to B2B deliveries, moving away from its previous dominance in hyperlocal deliveries.

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DS Group’s confectionery business achieves INR 1,000 Cr sales in FY24

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DS Group

The confectionery arm of Dharampal Satyapal Foods (DS Group) has achieved an annual sales turnover of INR 1,000 crores in FY 2023-24.

The company has now set its sights on achieving a Compound Annual Growth Rate (CAGR) of approximately 30% and reaching a turnover of INR 5,000 crores over the next five years through organic and inorganic growth strategies.

“This milestone reflects our strategic focus on increasing localization, diversifying our product offerings, and cultivating one of the most expansive distribution networks nationwide,” remarked Rajiv Kumar, Vice Chairman of DS Group. “Moving forward, our goal is to expand our presence in the chocolate sector while strategically reinforcing our leadership position in the Indian ethnic confectionery market through innovative product launches.”

Continue Exploring: FMCG giant DS Group appoints Jyotiroop Barua to lead confectionery business

Established in 1929, the DS Group (Dharampal Satyapal Group) stands as a diversified corporation and a prominent FMCG conglomerate. With a wide-ranging portfolio, the company operates across various sectors including mouth fresheners, food and beverage, confectionery, hospitality, agriculture, and luxury retail. Renowned brands under its umbrella include Rajnigandha, Catch, Pulse, FRU, Ksheer, Pass Pass, BABA, Tulsi, L’Opera, Le Marche, UnCafe, Birthright, Laderach, LuvIt, Chingles, The Manu Maharani, and Namah. Notably, the company holds a dominant position in the Hard Boiled Candy (HBC) and Indian ethnic confectionery (IEC) segments.

DS Group’s confectionery products are accessible through a network spanning over 26 lakh retail outlets, both directly and indirectly. Over the past three years, the confectionery division of DS Group has achieved a remarkable growth rate of over 20% CAGR.

Continue Exploring: DS Group boosts portfolio with acquisition of LuvIt Chocolate brand, solidifying market position

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B2B seafood startup Captain Fresh appoints Mathew George as Group CFO

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Mathew George
Mathew George

Captain Fresh, a Bengaluru-based B2B seafood startup, announced the appointment of Mathew George as its Group Chief Financial Officer (CFO).

This development comes after the startup’s recent fundraising efforts, as reported in February. In the same month, Captain Fresh acquired CenSea Inc, a US-based importer and distributor of frozen fish and seafood, to enter the lucrative North American market.

Continue Exploring: Captain Fresh expands US presence with acquisition of CenSea Inc, eyes European market growth

George’s appointment is anticipated to strengthen both financial operations and merger and acquisition endeavors as the company aims to amplify its presence and venture into additional markets. Utham Gowda, Captain Fresh’s co-founder and CEO, emphasized George’s pivotal role in the company’s trajectory toward a public listing.

Gowda stated, “Mathew’s vast knowledge as well as extensive experience will be critical in fostering financial excellence as we grow our global business. We look forward to leveraging Mathew’s leadership as we move towards becoming a publicly traded entity.”

This year, Captain Fresh has secured over $25 million from new investors and is currently in the process of raising additional funds from existing supporters like Tiger Global, Matrix Partners, Evolvence, and SBI Investment.

Continue Exploring: B2B seafood startup Captain Fresh secures $25M in funding Led by UK Govt-backed BII and Nekkanti Seafoods Group, eyes international expansion

“With a clear vision, proven execution success, as well as the support of esteemed investors, I am confident we are well positioned to continue our growth trajectory. “I’m excited to use my financial expertise in collaboration with the team to create value for our shareholders and employees,” George said in a press release.

George, previously serving as the Group Chief Financial Officer at Medi Assist, has held positions at notable organizations such as Jumbo Group, HCL Technologies, Cognizant, Genpact, and Accenture.

Established in 2019, Captain Fresh functions as a seafood supply chain platform, facilitating a marketplace for fisherfolk to vend their catch. Additionally, it collaborates with retail outlets and supermarket chains, overseeing end-to-end operations management for fish sales.

The company competes with other startups in the meat and seafood supply sector, including FreshtoHome, Licious, Freshma, and similar ventures.

Continue Exploring: Seafood companies boost investments in local market amid global export challenges: Shrimps, squids, and lobsters see surge in domestic demand

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Shoppers Stop hits milestone with 10 Million first citizen club members

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Shoppers Stop

Shoppers Stop, a Mumbai-based department store chain, has achieved a significant milestone with 10 million first-citizen club members.

Since its establishment, the first citizen club has been pivotal to Shoppers Stop’s customer engagement strategy, marking the longest-running loyalty program in Indian retail. Its members relish exclusive perks like personalized offers, early access to sales and new arrivals, exclusive event invitations, and special birthday promotions. Furthermore, they can leverage Shoppers Stop’s personal shopper service for customized shopping guidance, enriching their retail journey.

Continue Exploring: Shoppers Stop appoints Kavindra Mishra as MD & CEO

“We are thrilled to commemorate this remarkable achievement. It demonstrates the trust and loyalty that our customers have consistently shown us,” said Shwetal Basu, Chief Marketing and Communication Officer at Shoppers Stop. “Here at Shoppers Stop, we see milestones not as accomplishments, but as markers on a journey we’ve taken with our valued customers. We take this opportunity to express our appreciation to all of our First Citizen Club members for their unwavering love, trust, and loyalty, which has propelled us on this successful journey.”

The loyalty program encompasses tiered membership levels, among which the esteemed Black Card tier stands out for its superior benefits. Black Card members enjoy accelerated reward points accumulation, access to personal shoppers, exclusive lounges, dedicated billing queues and fitting rooms, early access to premium deals and discounts, as well as invitations to luxury events and experiences.

As of March 31st, 2024, Shoppers Stop has expanded its reach to encompass 112 department stores across 62 cities. Additionally, the company operates seven premium home concept stores under the name Home Stop, along with 87 Specialty Beauty stores featuring renowned brands such as M.A.C, Estée Lauder, Bobbi Brown, Clinique, Jo Malone, Too Faced, and SSBeauty. Moreover, it manages 21 Airport doors and 22 Intune Stores, collectively occupying an impressive area of 4.3 million square feet.

Continue Exploring: Shoppers Stop reports 53% rise in Q4 profit driven by beauty and luxury items

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McDonald’s hits 400-store milestone in India with new outlet at Hyderabad Airport

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McDonald's

McDonald’s, the American fast-food chain, has achieved the milestone of 400 stores in India, according to a recent social media post by an industry official. This comes following the multinational brand’s entry into the Indian market in 1996.

The latest outlet is situated within the International Departures section of GMR Hyderabad International Airport.

In a LinkedIn post, Prem Khatri, associate of business development at GMR Group, said, “Happy to have been part of McDonald’s India 400th store at the International Departures of GMR Hyderabad International Airport Ltd. The outlet has been well-designed for both productivity as well as aesthetic appeal.”

Continue Exploring: McDonald’s expands McCafe presence in India with 50th outlet launch in Noida

GMR Group, a conglomerate consisting of multiple entities such as GMR Infrastructure, GMR Energy, GMR Airports, and GMR Enterprises, has hosted McDonald’s India outlets across various GMR Airport sites for over 15 years.

Hardcastle Restaurants, a subsidiary of Westlife Foodworld Ltd., is responsible for owning and managing McDonald’s restaurants in West and South India. Since 1996, it has maintained a master franchisee partnership with McDonald’s Corporation USA, serving as the brand’s custodian in the region.

The company headquartered in Chicago operates across diverse formats and brand extensions, encompassing standalone restaurants, drive-thrus, 24/7 outlets, McDelivery services, McBreakfast offerings, and dessert kiosks.

In recent years, international quick-service restaurant (QSR) chains have been rapidly expanding in India. In the fiscal year (FY) 2024, Domino’s achieved the milestone of 300 stores, Wendy’s inaugurated its 100th store, and Subway commenced operations at over 200 stores across the country.

Continue Exploring: McDonald’s India operator Westlife Foodworld reports 96% profit slide in Q4 amidst weak demand

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FSSAI finds no traces of ethylene oxide in MDH, Everest spice samples

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MDH and Everest Spice Mixes
MDH and Everest Spice Mixes

The Food Safety and Standards Authority of India (FSSAI) has found no traces of cancer-causing Ethylene Oxide (ETO) in the samples of MDH and Everest spices, as per sources.

Sources have stated that the scientific panel at FSSAI has cleared a total of 28 samples, all of which show no traces of Ethylene Oxide (ETO).

The regulatory body gathered nine samples of Everest spices from manufacturing facilities located in Maharashtra and Gujarat. Additionally, 25 samples of MDH spices were collected from facilities in Delhi, Haryana, and Rajasthan.

Of the total 28 lab reports received and scrutinized, six are still pending.

Continue Exploring: One in three households likely to avoid MDH, Everest Spices amid quality concerns: Survey

Each collected sample underwent analysis to ensure compliance with quality parameters such as moisture content, presence of live and dead insect fragments, and rodent contamination. Safety parameters including heavy metals like lead, copper, and tin, as well as aflatoxins, melamine, 234 pesticide residues, macrobacteria, and additives were also assessed. Furthermore, the samples were analyzed for Ethylene Oxide (ETO) at NABL-accredited laboratories.

Sources mentioned that the panel also scrutinized test reports from over 300 spice samples of various other brands sourced from different parts of the country. These reports conclusively indicated the absence of Ethylene Oxide (ETO).

Earlier this month, sources informed that the government would not shy away from revoking licenses of spice manufacturers should they be discovered violating the regulations concerning acceptable limits for pesticide residue in packaged products.

Continue Exploring: FSSAI launches quality checks on MDH and Everest spice mixes following reports of high ethylene oxide levels 

On April 22, the food regulator initiated nationwide quality inspections on spices available in the market. This action followed after the Centre for Food Safety (CFS) in Hong Kong and the Singapore Food Agency highlighted the presence of Ethylene Oxide (ETO) in samples of pre-packaged spice mix products from two Indian brands—MDH and Everest Spices—and subsequently recalled them from the market.

“Substances such as ETO are utilized for fumigation to facilitate the storage of these goods. In an ideal scenario, products intended for export should not be diverted to the domestic market,” stated an official from FSSAI previously.

According to a senior official, the FSSAI had gathered more than 1,500 spice samples from both small and large brands across the country for the initiative.

Continue Exploring: MDH and Everest spice controversy threatens over half of India’s spice exports, urgent action needed: Report

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Pluugin E-commerce sets sights on Indian market expansion, plans nationwide coverage and strategic job creation

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Pluugin E-commerce

Pluugin E-commerce, a Dubai-based company, is planning to extend its footprint in India. With a strategic vision for expansion, the company aims to create over 2,100 job opportunities in the local market over the next three years.

Operating across 12 states presently, Pluugin E-commerce is gearing up to achieve full nationwide coverage within the next 12 months. Furthermore, it revealed that India will function as the backend office supporting its global operations in Bangladesh, Nepal, and Sri Lanka.

Aparna Gupta, Founder & Managing Director of Pluugin E-commerce, expressed, “We firmly believe that in today’s e-commerce realm, every brand holds the promise of transcending borders. Our aim is to empower them to realize this potential, particularly focusing on MSMEs. Our strategic foray into the Indian market opens up fresh avenues for growth in e-commerce, facilitating a global platform for all ‘Make in India’ brands.”

The e-commerce sector is rapidly burgeoning in India, extending its influence beyond metropolitan centers to tier 2 and 3 regions. Projections indicate that by 2024, it will be valued at $112.93 billion, with expectations to soar to $299 billion by 2029.

Continue Exploring: Ecommerce sees modest Q1 growth at 12-15%, industry anticipates 20% uptick by April

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Consumers stay indoors as scorching heat drives surge in demand for essentials on e-commerce platforms

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online grocery
(Representative Image)

E-commerce platforms are experiencing a surge in the demand for essentials like groceries, as consumers choose the convenience of shopping from home to steer clear of stepping out during intense heatwave conditions. This rise in deliveries is also driving up the need for additional manpower at these companies.

Industry experts have reported that daily deliveries by e-commerce companies, including quick-commerce platforms, have surpassed 2.0 million in the last month, up from 1.2-1.5 million a year earlier. TeamLease Services, a staffing services provider, suggests that this surge could lead to a demand for an additional 10,000 operations personnel at the dark stores or distribution centers of these platforms, along with 30,000 more bikers to handle the increased volume of orders.

Ujjwal Chaudhry, a partner at consultancy firm RedSeer, noted that quick-commerce orders experienced a significant surge in the National Capital Region during the initial weeks of May. He emphasized that the growth rate in Delhi-NCR was nearly double that of other metropolitan cities.

Continue Exploring: From scoops to sundaes: Ice cream sales set to soar 15-20% this summer

He attributed this largely to the heat, noting that people are reluctant to venture outside for shopping.

Executives at staffing and e-commerce firms noted that a growing proportion of consumers are ordering ice creams and beverages online in addition to groceries.

Kartik Narayan, Chief Executive of Staffing at Teamlease Services, pointed out that there’s a greater demand for bikers in grocery delivery compared to restaurant delivery. He highlighted that with the rising demand for items like ice cream and cold drinks, alongside the soaring temperatures, there’s a substantial increase in the requirement for workers both at the dark stores of the platforms and for order delivery.

Continue Exploring: FMCG and dairy giants prepare for summer surge: PepsiCo and Coca-Cola ramp up production as heatwave looms, Dabur and Havmor expand capacity

During this summer season, Amazon has experienced a notable increase in demand for ice cream and dairy products on Amazon Fresh, its grocery delivery platform.

Srikant Sree Ram, Director of Amazon Fresh, said, “We observed remarkable growth in both ice cream and dairy beverage categories, with a 43% year-on-year increase in units sold for each. Additionally, our customer base expanded, with a 20% rise in ice cream shoppers and a 33% surge in those purchasing dairy and dairy alternative beverages.”

Continue Exploring: Amazon Fresh sees 43% YoY growth in ice creams and dairy beverages sales

Jayen Mehta, Managing Director of the Amul dairy brand, noted, “We have observed a 55-60% increase in sales on e-commerce and quick-commerce channels in April-May, compared to the corresponding period last year.” He further stated that overall ice cream sales across various channels, such as grocery stores, modern trade, e-commerce, pushcarts, and ice cream parlors, have risen by 40% compared to the previous year.

Executives noted that the surge encompasses categories typically associated with the summer season.

Manish Bandlish, Managing Director at Mother Dairy, stated, “As peak summer conditions prevail across most regions of the country, we are experiencing a notable increase in demand for products such as ice cream, curd, and beverages in key markets. Ice cream sales alone have surged by more than 20% compared to the corresponding period last year.”

The demand for delivery and warehouse staff has increased by 20% compared to the previous summer. Companies have adjusted their incentive policies and enhanced working conditions for gig workers to incentivize them to work during the hot summer months. Aditya Mishra, Chief Executive of CIEL HR Services, noted, “With rising temperatures across all regions in India, consumers are minimizing their time spent outside their homes for routine purchases.”

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