Hindustan Unilever reported a robust performance in last fiscal year despite facing a challenging macroeconomic environment characterized by erratic rainfall and subdued agricultural output, which impacted rural demand, as stated in its annual report.
Nitin Paranjpe, chairman at HUL said in its annual report, “We observed a gradual deflation in commodity prices within certain segments of our portfolio following an extended period of high inflation. However, cumulative inflation continued to remain high.”
In the fiscal year 2023-24, the remuneration for Rohit Jawa, the managing director of HUL, increased by 4% to reach INR 22.39 crore. This amounted to a salary 153 times greater than the average remuneration of HUL employees, as per the report. Comparatively, his annual remuneration stood at INR 21.43 crore a year earlier.
As of March 31, 2024, HUL had 7,215 permanent employees, a rise from 6,697 employees the previous year.
The median remuneration witnessed a 7.38% increase for FY24. Moreover, during the fiscal year, HUL saw a 3% growth, resulting in sales of INR 59,579 crore.
“HUL successfully steered through a challenging macro-economic landscape in the fiscal year 2023-24 by prioritizing key strategic initiatives,” stated Rohit Jawa. “These initiatives include enhancing our core through unbeatable brand excellence, leading market innovation, refining our portfolio towards premium segments, and reinforcing our position as leaders in emerging future channels.”
The country’s largest consumer goods firm disclosed that it has 19 brands generating annual sales surpassing INR 1000 crore.
Gourmet Jar, a leading artisanal brand based in Noida, has carved a niche in the premium condiments market with its clean-label, all-natural products. Founded by Apeksha Jain, the brand offers an array of spreads, dips, preserves, sauces, and pestos. In a recent conversation with Snackfax, Apeksha shared insights into how Gourmet Jar is handling the challenges in the jam category and the brand’s growth trajectory while adapting to new D2C trends.
The jam category, traditionally associated with high sugar content, has faced scrutiny as consumers become increasingly health-conscious. Despite this, Gourmet Jar has found success with its innovative approach. Apeksha acknowledges that the jam market is not expanding rapidly but insists it hasn’t declined either. “It is a category which is not growing as such but has kind of flatlined. People are still buying jams and preserves; they just want better choices,” she explains.
Gourmet Jar’s raspberry strawberry preserve stands out as a bestseller, indicating that consumers still appreciate high-quality jams. The brand’s blueberry fruit spread, which is sugar-free, has also gained popularity despite its premium price, showing that there is a demand for healthier, natural options.
Apeksha believes that “People want cleaner products and something which is more natural and real. There’s certainly a lot of work to be done in this space, as the current focus isn’t substantial. This demonstrates that consumers are willing to invest in high-quality, guilt-free options with better ingredients,” and Gourmet Jar aims to meet these expectations with their offerings.
The past year has been challenging for many businesses, and Gourmet Jar is no exception, despite being primarily an offline brand. However, the brand has managed to grow despite the market difficulties. “Our objective was to move towards profitability, and we’ve been able to do that. Growth was not really the focus, and even then we have grown like 10% over the previous year,” Apeksha notes. The company has also successfully increased its gross profit by 12%, highlighting its focus on financial stability and efficient operations.
The brand’s first quarter is dedicated to planning and research and development (R&D). “We utilise the benefit of the slower pace to develop new products and plan for the rest of the year. Our focus is on ensuring we are ready to handle the upcoming festive season and all that it entails,” she explained.
Looking ahead, Gourmet Jar plans to expand its presence in the HORECA (Hotels, Restaurants, and Cafes) sector, which constituted 30% of their business before the COVID-19 pandemic. This move is expected to drive significant growth in the coming years. “If you’re able to raise funds, we would look to grow much faster. If not, we aim to grow about 20% organically,” Apeksha states, emphasizing a balanced approach to growth.
The Direct-to-Consumer (D2C) landscape has evolved rapidly, with quick commerce players like Blinkit and Instamart reshaping consumer shopping habits. Apeksha highlights the impact of these changes: “The consumer behavior has completely changed in the last year in terms of their regular grocery shopping habits. Quick commerce is kind of taking over retail.”
Gourmet Jar has adapted by balancing its sales across various channels. Currently, 40% of their sales come from quick commerce, another 40% from offline retail, and the remaining 20% from online e-commerce and gifting channels. This diversified approach has helped them maintain stability despite market fluctuations.
To acquire new customers, Gourmet Jar leverages both offline and online channels. Apeksha explains, “We are acquiring new customers through quick commerce channels. There’s a lot of opportunity there because every household is buying products on these platforms.” The brand also focuses on offering unique value propositions on their website, such as exclusive product bundles, to attract and retain customers.
As the brand moves forward, it aims to strengthen its market position by focusing on quality, consistency, and customer loyalty. Apeksha believes that their in-house manufacturing capabilities are a significant advantage, ensuring control over product quality and innovation. “Our moat is that we have everything in-house, which is one of our strengths. The products we make are consistent in quality,” she asserts.
Beauty e-commerce giant Nykaa has announced a significant restructuring of its business divisions.
The company’s board has given the green light for parent FSN E-Commerce to acquire the western wear and accessories business of Nykaa Fashion Limited for a cash sum of INR 133.7 Cr.
The company stated in a regulatory filing with the BSE that the Board has sanctioned the acquisition of Nykaa Fashion Limited’s western wear and accessories business as a going concern on a slump sale basis. This acquisition will be carried out in accordance with the business transfer agreement between the company and the transferor company.
According to Nykaa, the decision to transfer the western wear and accessories business to Nykaa Limited aligns with their strategy to streamline and centralize owned brand operations within one entity. The transaction is anticipated to finalize by September 2024.
In addition, Nykaa obtained board approval to integrate its content delivery subsidiary, Little Black Book (LBB), with Nykaa Fashion. Initially, it disclosed the transfer of its entire ownership in LBB’s parent company, Iluminar Media, to Nykaa Fashion. Shortly thereafter, the board granted its preliminary consent to merge LBB with Nykaa Fashion.
According to the company, the stake transfer will be finalized by December 2024.
The transactions concerning Nykaa Fashion and LBB will require approval from various parties, including the National Company Law Tribunal (NCLT) and the company’s shareholders.
In a filing, Nykaa stated, “The Scheme of Amalgamation will be presented to the Boards of both companies for approval at an appropriate juncture and will be contingent upon obtaining necessary endorsements from the National Company Law Tribunal, shareholders, creditors of both entities, and any other requisite regulatory clearances.”
This development comes as Nykaa released its financial results for the quarter ended March 2024. The beauty ecommerce major experienced a significant downturn in its consolidated net profit, plummeting by nearly half (48% to be precise) sequentially to INR 9.07 Cr in Q4 FY24 from INR 17.45 Cr in the previous quarter.
However, on a year-on-year (YoY) basis, profits surged by 1.2 times from INR 4.27 Cr in Q4 FY23.
At the same time, there was a 6% quarter-on-quarter decline in operating revenue, amounting to INR 1,667.9 Cr in Q4 FY23; however, there was a notable 28% year-on-year increase.
The restructuring coincides with the company’s announcement of an additional 4.05 lakh stock options under its Employee Stock Option Policy (ESOPs) scheme, which was made public just a day before the Q4 results.
The results were announced shortly after the markets closed on Wednesday. Nykaa’s stock ended the day nearly 1% higher at INR 179.05 on the BSE.
In the thriving landscape of e-commerce, whpjewellers is swiftly rising as a frontrunner in India’s direct-to-consumer jewellery market. Committed to delivering a hassle-free and enjoyable shopping journey, this platform is on track to becoming a ubiquitous name nationwide. Catering to women, men, and children with a diverse array of collections, whpjewellers serves as a go-to destination for all fashion needs, cementing its significance in India’s retail scene.
The platform boasts a wide array of offerings, spanning from gold and diamond rings, earrings, pendants, necklaces, mangalsutras, bangles, to bracelets. For men seeking sophistication, there are elegant chains, rings, and bracelets available. Delicate designs adorn the children’s line, featuring earrings, pendants, and bracelets. Introducing Anayra, a line of Sterling 92.5 Silver Jewellery tailored for younger women. The Silver collection extends to include various puja articles, from utensils to idols. Noteworthy is the 9Ratna collection, presenting a diverse selection of colored gemstones.
whpjewellers is dedicated to ensuring a safe and intuitive shopping experience for its customers. With features like secure payment systems, swift delivery options within 24-48 hours, flexible payment plans such as EMIs and insurance coverage, personalized jewellery services, try-at-home options, and a committed customer care team, the company showcases its customer-focused approach. Founder Aditya Pethe underscores the immense growth potential of the Indian online jewellery sector, noting that in 2019, it was valued at $850 million and is projected to reach $3.7 billion by 2025, with a staggering CAGR of 28 percent. Leveraging unique and tailored offerings, whpjewellers is poised to seize a substantial market share.
In a recent achievement, whpjewellers marked a significant milestone by securing $10 million in its inaugural funding round from a Singapore-based investment firm. This injection of capital serves as a testament to investor faith in the company’s prospects and strategic vision. While pushing boundaries in expansion and innovation, whpjewellers stays committed to its ethos of offering “Something Special for Everyone,” further cementing its stature as a leading jewellery shopping hub in India.
ITC, a diversified conglomerate, is focusing on enhancing product experience and shelf life while promoting sustainability through innovative packaging. The company is also managing costs through structural reengineering and elevating product quality to meet the evolving needs of consumers, according to Biswarup Chakrabarty, General Manager and Head of Packaging Development at ITC Foods.
In a fiercely competitive market, ITC has rolled out packaging advancements, including the circular noodle block for YiPPee! noodles, breathable packs for Aashirvaad atta, and a diverse array of paper-based packaging for its entire product range. Additionally, the company is actively curbing plastic consumption while expanding its range of recyclable packaging alternatives.
In addition to prioritizing innovations, the company is reducing its plastic usage. ITC Foods brands have launched a variety of paper-based packaging for several products. Moreover, they are focusing on incorporating recycled plastic and recyclable packaging solutions.
Over recent years, e-commerce has emerged as an indispensable avenue for FMCG, with its significance steadily amplifying. Additionally, it’s morphing into fresh formats such as quick commerce, characterized by distinct product handling methods, as noted by the company.
ITC aims to render its packaging channel-neutral, as crafting separate packaging for each channel poses a significant supply chain challenge. However, not all products can employ identical packaging for the e-commerce supply chain.
Chakrabarty remarked on the divergence in packaging across channels, stating, “We craft unique secondary packaging or SKUs tailored for e-commerce, working closely alongside the respective channels.”
Despite current limitations, ITC expects biodegradable packaging materials to be used more frequently. Chakrabarty stressed that, while recycling is still economically beneficial, non-recyclable items such as small wrappers as well as wet food containers require biodegradable solutions.
With advancements in barrier technology, ITC anticipates a wider acceptance of paper-based solutions, which will improve sustainability and efficiency in the FMCG sector.
Pret A Manger, the renowned food and organic coffee chain, has unveiled its new outlet in Delhi, as announced in a social media post by a top company executive.
In India, Pret is managed by Reliance Brands, and the latest outlet can be found on the first floor above the Hamster London and Samsonite store in upscale Khan Market, Delhi—a locale known for its high rental rates, ranking among India’s most expensive markets.
Dhiraj Singh, General Manager of Real Estate & Business Development (India) at Reliance Brands Ltd, announced on LinkedIn, “Pret a Manger. Now welcoming customers at Khan Market, Delhi.”
The coffee chain recently inaugurated its 14th store in the country at the DLF Mall of India in Noida.
Established in London in 1986, Pret A Manger ventured into India through a partnership with Reliance Brands, a retail arm of Reliance Industries. Presently, the café chain operates in Mumbai, Gurugram, Noida, and Delhi.
Reliance Brands, a subsidiary of Reliance Retail Ventures Ltd, commenced its operations in 2007 with a mission to introduce and develop global brands within the luxury to premium sectors encompassing fashion and lifestyle.
Jubilant Foodworks Limited, which owns popular fast-food brands Domino’s Pizza and Dunkin’ Donuts, reported a multi-fold increase in consolidated net profit to INR 208.24 crore for the fourth quarter ended March 2024, helped by exceptional item gains.
The company had recorded a net profit of INR 28.54 crore in the January-March quarter of the previous fiscal year, according to a regulatory filing from Jubilant Foodworks Ltd (JFL).
During the quarter, its revenue from operations increased by 23.85% to INR 1,572.79 crore, compared to INR 1,269.84 crore in the corresponding period last year.
In the March quarter of FY24, the total expenses of JFL, India’s largest food service company, surged by 28.23% to INR 1,545.47 crore.
The company’s total income, including other income, rose 23.61% to INR 1,594.12 crore in the March quarter.
During FY24, Jubilant Foodworks Netherlands BV, its wholly-owned subsidiary, increased its stake in DP Eurasia NV (DPEU) by acquiring an additional share for a total consideration of INR 7,70.26 crore. This move raised its ownership in the company to 94.33%. DP Eurasia NV serves as the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Azerbaijan, and Georgia.
“The deal has led to DPEU becoming a subsidiary of JFN… As a result, a gain of INR 170.16 crore from the remeasurement of previously held equity interest at the fair value on the acquisition date has been reported under exceptional items in the financial results,” the statement explained.
In the March quarter, its profit before exceptional items and tax amounted to INR 54.86 crore, compared to INR 53.40 crore in the corresponding period of FY23.
In the Indian market, JFL’s revenue from operations reached INR 1,331.3 crore, marking a growth of 6.3%, primarily propelled by a 4.9% increase in Domino’s India.
The company’s revenue from the international market stood at INR 242.7 crore, largely influenced by a revenue contribution of INR 217.4 crore from Turkey, Azerbaijan, and Georgia over two months.
In the March quarter, JFL inaugurated 23 stores across all its international markets.
For fiscal year 2024, JFL’s consolidated net profit amounted to INR 400.07 crore, compared to INR 353.03 crore in the preceding year.
In FY24, its revenue from operations grew by 9.61% to reach INR 5,654.08 crore.
In FY24, JFL experienced a “record opening of 356 stores,” expanding the JFL Group Network to 2,991 stores across six markets: India, Turkey, Bangladesh, Sri Lanka, Azerbaijan, and Georgia.
JFL holds franchise rights for five brands, including Domino’s, Popeyes, and Dunkin’ in emerging markets, alongside two in-house brands: Hong’s Kitchen, an Indo-Chinese QSR brand in India, and COFFY, a CAFE brand in Turkey.
In a separate filing, JFL announced that its board, in a meeting held on Wednesday, approved a 60% dividend, amounting to INR 1.20 per equity share with a face value of INR 2 each for the financial year 2023-24.
On Wednesday, shares of Jubilant Foodworks settled at INR 479.15 apiece on BSE, down 0.13%.
OYO, a Delhi NCR-based hospitality unicorn, has officially withdrawn its IPO (initial public offering) documents from the market regulator SEBI. According to the SEBI document, the company has officially withdrawn its IPO papers on May 17, 2024.
This development comes as OYO intends to raise $450 million through the sale of dollar bonds, with JP Morgan expected to lead the financing.
It’s reported that securing $450 million in funding will lead to significant alterations in OYO’s financial reports. According to regulations, OYO must amend its DRHP and submit it to the market regulator with the revised figures.
The startup aims to raise this capital to pay off its term loans of approximately $1.2 billion, which were taken in 2021.
Earlier this week, reports indicated that OYO is seeking new funding at a reduced valuation. The startup reportedly engaged Incred to facilitate discussions with family offices, aiming to raise approximately $80 million to $90 million at a valuation of $2.3 billion. This valuation represents a 77% decrease from the $10 billion valuation of its previous external funding round.
This $80 million to $90 million is reportedly part of a larger funding round that could include a sovereign fund. Earlier, OYO was reported to have discussed raising capital with Malaysia-based sovereign fund Khazanah Nasional Berhad at a lower valuation, but OYO has denied reports of a down round and has not confirmed any talks with Khazanah.
Established in 2012 by Ritesh Agarwal, OYO provides a diverse range of accommodations including holiday homes, casino hotels, coworking spaces, budget hotels, and corporate stays. The company has amassed over $3.5 billion in funding so far, with notable investors such as Peak XV Partners and Microsoft.
In February of this year, Agarwal stated that the startup had achieved its second consecutive profitable quarter. During Q3, the startup reportedly recorded a profit of INR 30 Cr, marking a 2X increase from the INR 16 Cr reported in its initial profitable quarter.
In FY23, the startup’s net loss was INR 1,286.5 Cr, down 34% from INR 1,941.5 Cr in FY22, according to data that is available to the public. There was a 14% rise in operating revenue as well, from INR 4,781.3 Cr in the previous fiscal year to INR 5,463.9 Cr in FY23.
In September 2021, OYO submitted its Draft Red Herring Prospectus (DRHP) to raise INR 8,430 Cr ($1.2 Bn) via an initial public offering.
Karan Chowdhary and Manish Chowdhary, Co-Founders, WOW Skin Science
WOW Skin Science, the direct-to-consumer skincare brand with notable backers like GIC and ChrysCapital, is reportedly in discussions with both current and prospective investors to secure fresh funding at a flat valuation.
The Bengaluru-based startup is aiming to raise between $65 million to $75 million in primary capital, maintaining a valuation of $400 million, matching the figure from its previous round in 2022 when GIC injected $48 million, as reported by Mint.
Reports indicate that WOW is currently in discussions with Japanese and Middle East-based funds for this funding round.
“The company has enlisted investment bank Investec to oversee the fundraising process, with consulting firm KPMG handling vendor due diligence,” cited one of the sources. “It’s still early stages, and the specifics of the fundraising will be determined in the months ahead.”
Established in 2014 by Karan Chowdhary and Manish Chowdhary, WOW Skin Science asserts its commitment to crafting products using natural ingredients, devoid of sulphates, silicones, mineral oils, parabens, and artificial coloring. Their product range spans skincare, haircare, bathing essentials, fragrances, and nutritional supplements.
The brand competes with Plum, Honasa, Good Glamm Group, The Ayurveda Co, and various other players in the Beauty, Personal Care (BPC) sector. It also contends with newcomers like Gabit and The Minimalist.
Based on the company’s MCA filings, it recorded a total income of INR 273.01 Cr in FY23, down from INR 343.94 Cr in the previous fiscal year. Additionally, the loss increased to INR 213 Cr from INR 135 Cr in FY22.
In the direct-to-consumer (D2C) sector, beauty, skincare, and personal care brands are gaining significant traction, largely due to omnichannel distribution and the growing popularity of quick commerce among consumers. Reports suggest that the projected count of online beauty shoppers in India will surpass 122 million by FY25.
We have been reassessing our narrative over the last 18 months, prioritising brand marketing over performance marketing. One of the co-founders, Manish Chowdhary, said, “It’s crucial to keep in mind that although a company’s products are manufactured in a factory, their brand is ultimately formed in the perceptions of consumers.”
The company’s products are now available in over 200 cities across India and have expanded to 22 countries, with a particular focus on the US and South Asia as key markets. In 2022, they successfully entered the UAE market, followed by Saudi Arabia in 2023.
Ochre Spirits, a Goa-based flavoured spirit brand, is aiming to capture more than a 10 percent share of the premium flavoured spirits segment and a 5-7 percent share of the craft spirits market within the next four years, according to John Royerr, Founder of Ochre Spirits.
It also has its sights set on achieving a INR 100 crore brand status within the next four years.
“For the fiscal year 2024-2025, we project a negative EBITDA of approximately 18-19 percent. However, in the subsequent fiscal year, we anticipate improvement to a negative 2-3 percent, with the goal of transitioning to positive returns by the fiscal year 2026-2027. Presently, our growth rate stands at 35 percent month-on-month,” he elaborated.
The brand, presently operating solely in Goa, is poised for expansion into new territories such as Karnataka and Puducherry in the near future. By the following fiscal year, it targets extending its reach into states like Maharashtra, Haryana, and Kolkata.
“Furthermore, we have been exploring export prospects to the UAE and are currently in discussions with distributors in that region,” he said.
At present, the brand is available in approximately 185 retail outlets and 40 on-premises institutional outlets. By the end of July, it aims to increase its presence to 350 retail outlets and around 120 on-trade outlets, encompassing bars and restaurants.
Moving forward, the brand is diversifying its product lineup. Currently, it features three gin variants, three vodka variants, and two rum variants.
At present, rum accounts for 65 percent of the brand’s sales, with the remaining 35 percent attributed to vodka.
During the second quarter of fiscal year 2024, the brand plans to introduce two new flavoured gin variants along with a citrus-flavoured rum. Additionally, it aims to debut its line of agave spirits by the fiscal year’s end. Furthermore, it is strategizing the launch of sparkling and spring water under the same brand to diversify its revenue streams.
This multifaceted strategy not only takes into account the wide range of consumer tastes, but it also makes us more noticeable on store shelves. Our brand is better positioned to draw customer interest and boost sales within each particular category by stretching across segments like gin, vodka, and rum,” he stressed.
Ochre Spirits has inaugurated a ‘Tasting Room’ in Goa, with plans to replicate this concept in Bangalore, Pondicherry, Mumbai, and Gurgaon in the near future.
“The Tasting Room currently features three spirit categories, showcasing nine distinct flavoured spirits exclusively available at the venue. Additionally, we plan to expand our selection to include over 15 flavoured spirits by November of this year,” he said.
Currently, the brand utilizes contract manufacturing to oversee its production operations based in Goa. It has set a target to produce 10,000 cases for this year.
“Moving forward, we are in talks with another facility in order to secure a production capacity of 22,000 cases,” he said.
Since our launch in April, we’ve garnered a positive response. We’re now intensifying our marketing and PR initiatives to enhance awareness.
The bootstrapped brand is currently finalizing a pre-seed funding round of INR 3 crore, with INR 2 crore secured from friends, family, and a family office.
“We anticipate concluding this funding within the next couple of months. These funds will be allocated towards marketing, operations, team expansion, and production,” he concluded.
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