Indian refined sunflower oil volumes are anticipated to experience an 8-10% decrease in FY25 due to a downturn in sunflower oil demand.
As per a report by CRISIL Ratings, domestic consumers have returned to soybean oil after the prices have declined following a good soy harvest.
Despite this shift, the report underscores that sunflower oil refiners are poised to see a 50-60 basis points expansion in profitability. This growth can be attributed to stable prices, effective hedging policies, and the government’s pledge to maintain duty-free imports.
Director of CRISIL Ratings Jayashree Nandakumar stated, “With an excellent harvest, the cost of soybean oil is likely to correct by USD 100 per tonne on-year and be on par with sunflower oil in fiscal 2025. Sunflower oil volume will drop from 32 lakh tonne in fiscal 2024 to 28–29 lakh tonne in fiscal 2025 as a result of the consumer shift towards soybean oil, although it would still be greater than the historical average of five years through fiscal 2024.”
Despite the projected decrease in volumes, the report indicates that refined sunflower oil prices are poised to remain stable. This stability is attributed to elevated shipping and freight expenses amidst the prevailing geopolitical uncertainties in the Middle East.
“Despite the growth slowdown, refiners’ profitability is expected to rise by 50–60 basis points due to favourable spreads brought on by robust demand and minimal price volatility. To further reduce negative price risks, refiners have put in place strong hedging procedures,” according to CRISIL Ratings Associate Director Rishi Hari.
In the Indian edible oil market, palm oil holds the largest share, accounting for roughly 40 percent of total volumes, trailed by soybean oil and sunflower oil, which claim shares of 20 percent and 15 percent respectively. The demand for sunflower oil is closely intertwined with the pricing dynamics of its alternatives, particularly palm oil and soybean oil.
India possesses substantial sunflower oil refining capacities and relies on imports for over 95 percent of its crude sunflower oil needs. Although refined sunflower oil is primarily consumed domestically, its price fluctuations are heavily influenced by the movement of imported crude oil prices.
Prabhu Gandhikumar, Founder, TABP Snacks and Beverages
As temperatures rise nationwide, so does the demand for refreshing beverages and snacks. Beverage companies anticipate a lucrative season ahead, as consumers crave icy lemonades, fizzy sodas, and fruit smoothies to beat the heat. Coimbatore-based TABP Snacks and Beverages is ready to seize this opportunity amid escalating competition.
The brand’s unique selling proposition lies in its snacks and beverages priced at INR 5 and INR 10. And its commitment to catering to the needs of the “bottom of the pyramid” segment, a philosophy deeply ingrained in the company’s ethos.
Prabhu Gandhikumar, affectionately known as Prabhu, the visionary behind the company, shared insights into the innovative strategies propelling his company’s success in this fiercely competitive market.
Prabhu highlighted the significant surge in demand, attributing it to the booming snacking business and the favorable response to TABP’s innovative beverage offerings. “So last six months have been very exciting. The extended summer season in the southern part of the country, due to reduced rainfall, contributed to robust sales,” he said.
Known for affordable pricing, last year, TABP launched lemon salt beverage for just INR 10 has been clocking great results. “This unique product has garnered excellent feedback and high rates of repeat purchases nationwide. Initially launched in Kerala last year, its success prompted expansion into Tamil Nadu, Andhra Pradesh, and Karnataka, where it continues to receive positive reception,” he said.
In addition to the lemon salt beverage, another TABP offering gaining traction is an energy drink priced at INR 10. Particularly popular among individuals needing a caffeine boost in hot weather such as rickshaw drivers, cab drivers, and service industry workers, it offers a convenient alternative to tea or coffee. Moreover, TABP’s entry into the water segment has also been successful, filling a crucial gap in the market with its competitively priced offerings.
“Overall, the past several months have seen exciting product debuts and expansions, driven by a keen understanding of customer demands and a commitment to provide affordable, high-quality beverages. And because our distribution is designed to deliver liquid-heavy products, we’ve been able to efficiently penetrate this market,” he said.
Further to their commitment to affordable snacks, Prabhu highlighted their success story on the snacks front, especially TABP’s veg biryani. “It’s performing exceptionally well. Currently, nearly 40% of our sales are attributed to our vegetarian biryani, a unique flavor that sets us apart from other MNCs and competitors,” he said.
Even during the off-season, TABP remains committed to R&D for affordable quality snacks. Their upcoming projects include INR 5 ‘Podi Idly’, ready-to-eat noodles, and packaged bhel, offering convenience and flavor.
“Our focus in snacks lies in replicating the emotion of staple foods like bhel, podi idlis, and biryanis, which are beloved by people at the bottom of the socioeconomic pyramid. Through extensive R&D, we aim to transform these traditionally unpackaged and labor-intensive dishes into affordable, packaged snacks priced at INR 5 and INR 10,” he explained.
Prabhu delved into the rationale behind TABP’s product portfolio, emphasizing the focus on affordability and accessibility. Despite stiff competition from industry giants, he outlined TABP’s unique selling proposition, highlighting the magic price point of 10 rupees that resonates with price-sensitive consumers. By prioritizing retailer margins and incentivizing product push, TABP has successfully carved out a niche for itself, challenging established players and gaining traction in untapped markets.
“Yes, Coke and Pepsi indeed have a significantly larger distribution network. They’ve heavily invested in in-store presence, with bustling coolers, prominent boards, and extensive activations. However, our strength lies in our magic price point of INR 10. While Pepsi offers an energy drink at INR 20 for 250 ml, we provide a 160 ml energy drink for INR 10,” he said.
“While the price points may appear similar, affordability is paramount. For someone who earns roughly INR 300 per day, spending even INR 20 can be a significant expense. Packaged beverages have always been aspirational for them, and if they are available at INR 10, they will gladly buy them. Furthermore, we provide merchants higher margins than Coca-Cola or Pepsi, which motivates them to promote our goods and drive growth,” he added.
He also highlighted the successful establishment of a plant in Odisha, made possible by government subsidies, enabling TABP to penetrate and thrive in the eastern market while creating employment opportunities for local communities.
“Since the establishment of our facility in Orissa, we have grown significantly, which is largely made possible by the 5 crore subsidy from the central government. With this support, we were able to enter a significant market, send truckloads of products, and generate jobs locally, which reduced migration. We are seeing significant growth in Orissa, a market with enormous potential.”
Building on Orissa plant success, they are now expanding in Gujarat, West Bengal, a third-party unit in Assam, and a plant in Guwahati expected to commence operations by the end of this month. Looking ahead, Prabhu outlined TABP’s ambitious growth targets, aiming to surpass the 500 Cr sales mark in the next 2 years. With a focus on deepening its presence in southern markets and expanding into underserved regions like Madhya Pradesh, Bihar, and Jharkhand, TABP is poised for exponential growth fueled by relentless innovation and customer-centricity.
Avenue Supermarts, the company behind DMart, has reported a 22.3% increase in its consolidated net profit for the fourth quarter ended in March 2024. The profit surged to INR 563.14 crore compared to INR 460 crore in the same quarter last year.
The profit after tax (PAT) margin for Q4 FY24 was 4.4%, up from 4.3% in Q4 FY23. Basic earnings per share (EPS) for Q4 FY24 were INR 8.66, compared to INR 7.10 for Q4 FY23.
According to the BSE filing, the company’s total revenue from operations increased to INR 12,727 crore in Q4 FY24, up from INR 10,594 crore in the corresponding period last year.
In Q4 FY24, DMart saw a rise in its earnings before interest, tax, depreciation, and amortization (EBITDA) to INR 944 crore, up from INR 772 crore in the same quarter of the previous year. The EBITDA margin for Q4 FY24 was 7.4%, slightly higher than the 7.3% recorded in Q4 FY23.
The company’s total revenue for FY24 increased to INR 50,789 crore from INR 42,840 crore in the corresponding period last year. Its EBITDA for FY24 amounted to INR 4,104 crore compared to INR 3,637 crore in FY23. The EBITDA margin for FY24 was 8.1%, down from 8.5% in FY23, as indicated in the filing.
For FY24, the net profit rose to INR 2,536 crore from INR 2,378 crore in FY23.
Regarding DMart’s brick-and-mortar business and overall performance, Neville Noronha, CEO and Managing Director, stated, “We concluded the year with growth in key financial indicators such as revenue, EBITDA, and PAT. DMart stores aged two years and older experienced a growth of 9.9% during FY 2024 compared to FY 2023.”
The company stated it operates 284 stores aged 2 years or older. Furthermore, over the fiscal year 2023-24, it opened 41 new stores, bringing the total store count to 365.
Throughout the quarter (Q4), the supermarket chain has observed a sustained increase in the contribution from general merchandise and apparel. The improvement in gross margin during Q4 FY24 compared to the same quarter of the previous fiscal year reflects this enhanced mix.
In regards to DMart Ready, its online business, Noronha mentioned, “Our e-commerce operations expanded into one new city (Gurugram) during the year, alongside reinforcing our presence in current cities.”
At present, the company maintains an online presence in 23 cities across India.
Shake Shack, the American fast casual restaurant chain, has reported an attributable net income of $2.2 million for the initial quarter (Q1) of 2024, marking a turnaround from a net loss of $1.6 million in Q1 2023.
For the quarter ended on March 27, 2024, total revenue amounted to $290.5 million, representing a 14.7% increase from the $253.28 million reported in the previous year.
System-wide sales increased by 12.3% year-on-year to reach $443.3 million.
The restaurant-level profit saw a notable increase of 22.4%, reaching $54.7 million, up from $44.7 million in Q1 2023.
The restaurant-level profit margin, calculated as a percentage of the chain’s sales, rose to 19.5% from 18.3% in the previous year.
In the quarter, Shake Shack’s total expenses amounted to $290.47 million, marking a 13.3% increase from the $256.46 million reported in the corresponding period of the previous year.
Shake Shack’s chief financial officer, Katie Fogertey, remarked, “We established a robust groundwork in the first quarter, aiming to bolster profitable sales and enhance margins in 2024. Our strategy includes targeting a 15% year-on-year revenue growth, expanding restaurant-level profit margins by 120 basic points, and achieving over a 30% year-on-year increase in adjusted EBITDA.”
In the initial quarter, Shake Shack broadened its presence by inaugurating four new company-operated sites, comprising two drive-throughs, along with four new licensed locations.
Moving forward, the company has outlined its plans for the second quarter, aiming to launch 10 company-operated locations and eight to nine licensed locations.
For the second quarter of the year, the company expects total revenue to range from $308.9 million to $314.3 million, with a restaurant-level profit margin anticipated to fall between 21.5% and 22.0%.
Fogertey further commented, “Our teams are actively implementing our 2024 strategies to enhance the overall guest experience, boost sales, widen restaurant-level profit margins, and reduce construction costs. We aim to achieve a year-on-year sales growth of 12% to 15% and increase adjusted EBITDA to between $160 million and $170 million, representing a rise of 21% to 29%.”
rue21, a teen apparel retailer, has filed for Chapter 11 bankruptcy protection for a third time, seeking to shut down its 540 stores and sell its intellectual property.
In documents filed in Wilmington, Delaware, bankruptcy court, rue21 stated that despite attempts to sell its business, no buyer emerged willing to offer more than the potential earnings from liquidating inventory through “going out of business” sales and closing down stores.
Based in Warrendale, Pennsylvania, the retailer rue21, which has previously undergone bankruptcy proceedings in 2003 and 2017, specializes in budget-friendly fashion geared towards teens and young adults. The company currently employs around 4,900 individuals and carries a debt of $194.4 million.
During its prime, rue21 operated 1,000 stores across malls nationwide in the United States. In its 2017 bankruptcy, the company closed approximately 400 stores as part of an agreement that enabled rue21 to reduce its debt by $700 million.
However, even after emerging from bankruptcy, the company faced ongoing challenges exacerbated by the rapid transition to online shopping, a trend further accelerated by the COVID-19 pandemic.
In 2022, rue21 aimed to secure additional capital to tackle its business obstacles, ultimately securing a $25 million investment from its current lenders. According to court documents, these lenders now hold an 80% stake in rue21’s stock.
rue21 plans to sell its brand and other intellectual property independently of its store closure proceedings. The company has enlisted Gordon Brothers to aid in the store closure sales.
On Saturday, the Government announced the lifting of the ban on onion exports, as per a notification from the Directorate General of Foreign Trade (DGFT), ending a restriction that had been in place for approximately six months.
“The export policy of onions has been modified from “prohibited to free,” subject to a minimum export price of $550 per metric tonne, with immediate effect and until further orders,” according to the DGFT notification.
This move is part of the government’s efforts to strike a balance, ensuring farmers receive fair prices while also maintaining inflation at manageable levels to safeguard consumers from its effects.
On April 27, the Government permitted the export of 99,150 metric tonnes of onions to six neighboring countries: Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.
On December 8, 2023, the government imposed a restriction on onion exports effective March 31 of the same year. The restriction was imposed to ensure adequate local supply and price stability in light of reduced outputs expected for both the Kharif and Rabi harvests in 2023-24 compared to the previous year, as well as increased demand in the foreign market.
The National Cooperative Exports Limited (NCEL), tasked with exporting onions to these nations, procured domestic onions for export via an e-platform at L1 prices. These onions were then supplied to government-nominated agencies in the destination countries at negotiated rates, with payment made on a 100% advance basis, as outlined by the Food Ministry.
NCEL’s offer rate to buyers considers current prices in the destination market, as well as trends in international and domestic markets. Quotas assigned for export to the six countries are fulfilled based on requests from these destinations.
Being the leading onion producer in the nation, Maharashtra serves as the primary onion supplier for NCEL’s export operations.
The Government also authorized the export of 2000 metric tonnes (MT) of white onions, specifically cultivated for markets in the Middle East and certain European countries. Given its focus solely on exports, the production costs of white onions are higher compared to other varieties, attributable to increased seed expenses, adherence to good agricultural practices (GAP), and compliance with stringent maximum residue limit (MRL) regulations.
This year, the Department of Consumer Affairs’ Price Stabilisation Fund (PSF) has set a procurement target of 5 lakh tonnes for onion buffer beginning in Rabi 2024. NCCF and NAFED are working with local agencies such as FPOs/FPCs/PACs to help with purchase, storage, and farmer registration for any store-worthy onions. On April 11-13, 2024, a high-level team from the Department of Consumer Affairs, NCCF, and NAFED toured the Maharashtra districts of Nashik and Ahmednagar to promote awareness among farmers, FPOs/FPCs, and PACs about the procurement of 5 LMT of onion for the PSF buffer.
To mitigate onion storage losses, the Department of Consumer Affairs has opted to increase the amount of onions to be irradiated and cold-stored from 1200 MT last year to over 5000 MT this year, with technical assistance from BARC, Mumbai. The previous year’s pilot project on onion irradiation and cold storage has demonstrated a reduction in storage losses to less than 10 percent.
CHUK, a manufacturer of compostable tableware crafted from sugarcane residue, reported a significant profit rebound in the third quarter of the fiscal year 2023–24. During Q3 2023, CHUK saw a remarkable pre-tax profit (PBT) of INR 174.24 lakhs.
Satish Chamyvelumani, Business Head-Compostable at CHUK, expressed, “It’s incredibly motivating and uplifting to see CHUK’s remarkable growth within just six years. The rising demand for compostable packaging reflects a growing commitment to sustainability. We’re leading this change by offering compostable tableware solutions globally. This achievement underscores our unwavering dedication to fostering a cleaner, greener planet. We’re continuously innovating and expanding our product range, eagerly anticipating sustained growth ahead.”
The projected growth of the global bagasse tableware products market indicates a CAGR of 6.7% from 2023 to 2032, with the market value anticipated to rise from US$ 2,985.1 million in 2023 to US$ 5,230.5 million by 2032, according to data. CHUK plans to expedite its growth, aiming for double the pace in the upcoming financial year. The brand’s objectives include boosting profitability, extending its global presence, and introducing new product lines that resonate with changing consumer tastes.
Earlier, CHUK collaborated with the Ram Mandir Trust during the Ayodhya Mandir consecration event to distribute compostable tableware and showcased its product portfolio at the Aahar 2024 show in Delhi.
Driven by a trend towards healthier options and convenience, ready-to-drink punch and mocktail brands, boasting ‘natural’ ingredients ranging from fruits and roots to herbs and spices, are entering India’s beverage market.
Moving away from alcoholic indulgences and fizzy aftereffects, revelers are embracing fruity blends. A Statista report suggests that the worldwide non-alcoholic beverage market is poised for a 2.3% volume growth this year. By 2027, it’s expected to soar to 944.6 billion liters, with a compound annual growth rate (CAGR) of 4.6% from 2023 to 2027. Presently, India hosts a market with over 200 contenders in the ready-to-drink juice, mocktail, and non-alcoholic beverage segment.
Producers are capitalizing on millennials and health-conscious Gen Zs, who eagerly embrace all things natural and organic.
“Post-Covid, there has been a notable shift towards healthier living, prompting a surge in demand for non-alcoholic options. Lifestyle adjustments have heightened consumer awareness of the harmful effects of alcohol, yet there persists a desire for non-alcoholic beverages that offer similar taste experiences. This trend is particularly prominent among consumers aged 25 to 34,” noted Neha Singh, co-founder of Tracxn, a startup information and market trends provider.
Singh highlighted that in recent years, a plethora of new brands have emerged to cater to the growing demand, with India standing out among other leading nations in terms of funding raised in this sector. The market is witnessing significant interest, with startups securing fresh funding from angel investors, while FMCG giants are eyeing stakes in these ventures.
For instance, Bengaluru-based Swizzle secured seed funding of nearly $67,000 from angel investors Akshay Singhal and Monika Rao in February. Coolberg received $1.1 million in its latest funding round from institutional and angel investors, including Ashok Kumar Damani. Last September, institutional investors such as Emami and Venture Catalysts, along with nine unicorns, invested an undisclosed amount in AloFrut.
According to data from Tracxn, leading players in this domain secured over $33 million in funding from institutional and angel investors between 2019 and 2024.
Harsha V Agarwal, Vice Chairman and Managing Director of Emami, resonates with similar sentiments. “We see immense growth in the segment,” she added, noting that “health and wellness” is currently the buzzword for consumers.
“Consumers are not just looking for products that are beneficial for their health, but also those that are ethically produced, with minimal environmental impact,” stated Deepender Singh, co-founder of the ready-to-drink mocktail brand Swizzle. Swizzle, which experienced a remarkable 210% growth in FY23, aims to achieve a projected revenue of INR 12 crore by the end of FY25.
Echoing the trend, Rishabh Gupta, promoter of Axiom Ayurveda, which produces canned fruit mocktails under the brand AloFrut, draws parallels between the surge in this market and the demand for energy drinks. “Energy drinks have significantly expanded their market presence in India over the past decade, and I anticipate a similar growth trajectory over the next five years. I envision the fruit or natural ingredient-based mocktail market following a comparable growth trajectory to where energy drinks currently stand within the next five to seven years,” stated Gupta. “Post-Covid, there has been a rise in house parties, and people are seeking alternatives to cola. Ready-to-drink mocktails offer them a viable option, without the need for a bartender,” he further explained.
Vaishali Mehta, co-founder of Swa, a Bangalore-based women-led initiative specializing in artisanal syrups, expresses optimism about the growing presence of natural concoctions in social gatherings. Mehta highlights that in India, many beverages rely on artificial concentrates and preservatives for their supposed exotic flavors. “Our company sources locally grown ingredients such as jamun, jackfruit, kokam, bird’s eye chili, and passion fruit for our beverages,” she emphasized.
Simpli Namdhari’s, an omnichannel retailer, has launched “WhatAir” mineral water, heralding a significant breakthrough in the beverage industry. This innovative product utilizes state-of-the-art technology to extract water directly from the air. By tapping into atmospheric moisture, WhatAir offers a sustainable solution to the global water crisis while providing consumers with a refreshing and eco-friendly alternative to traditional bottled water.
As Bangalore faces severe water scarcity, Simpli Namdhari steps forward as the first retailer in the city to offer “WhatAir” through its retail channels. This launch not only demonstrates the retailer’s dedication to sustainability, but also positions it as a pioneer in utilising technology to tackle environmental issues.
For every bottle of WhatAir bought, the retailer pledges to conserve a minimum of one liter of water per bottle, which would otherwise have been extracted from natural water reservoirs. Additionally, by utilizing glass bottles, WhatAir contributes to safeguarding water bodies from the harmful effects of single-use plastics.
Hema L, the Head of Marketing at Simpli Namdhari’s, stressed the significance of innovation in tackling ecological emergencies. “At Simpli Namdhari’s, we acknowledge the pressing need to tackle Bangalore’s water crisis. We firmly believe that innovation holds the answer to discovering enduring solutions to environmental dilemmas. With the introduction of ‘WhatAir’ mineral water, we take pride in our contribution to water conservation endeavors and in offering consumers a product that not only fulfills their hydration requirements but also champions environmental sustainability. We are excited to have been instrumental in bringing this pioneering solution to the market,” she expressed.
Consumers can now find “WhatAir” mineral water available at all Simpli Namdhari’s retail outlets.
Renowned Indian actress and entrepreneur Katrina Kaif has expanded her beauty brand, Kay Beauty, into the United Arab Emirates, marking its debut on the international stage. The eagerly awaited launch took place at Nysaa, the latest beauty destination in the UAE, where the exclusive range of Kay Beauty products is now accessible.
Established in partnership with Nykaa, India’s leading beauty retailer, Kay Beauty proudly stands as India’s first celebrity-backed makeup brand. Celebrated for its innovative spirit and top-notch products, the brand quickly gained prominence in the Indian beauty landscape. Designed to blend elegance with skincare benefits, Kay Beauty offers a diverse range of products, including lipsticks, eyeshadows, foundations, and nail colors, tailored to meet the preferences of beauty enthusiasts.
Kay Beauty’s essence lies in the mantra #ItsKayToBeYou, embodying self-acceptance and empowerment, as advocated by Kaif. The brand’s statement emphasizes, “With the foundational belief #ItsKayToBeYou, Katrina assures us a personalized experience with Kay Beauty.”
Since its inception, Kay Beauty has experienced exceptional growth, reaching a gross margin value of INR 1.5 billion in a span of just over four years. It has solidified a strong presence throughout India, operating extensively online and through more than 300 retail outlets.
Katrina Kaif, Co-Founder of Kay Beauty, expresses, “Bringing Kay Beauty to the UAE brings me immense joy. It has always been my vision to expand Kay Beauty globally, enabling customers from diverse backgrounds to experience our products firsthand. Our entry into the GCC market allows us to engage with a demographic that holds a strong passion for both beauty and Indian cinema. Launching Kay Beauty in the region through omnichannel retailing is a strategic move for us. The GCC region embraces various ethnicities, genders, and age groups, and Kay Beauty’s fundamental ethos revolves around catering to all skin tones while upholding the commitment of #makeupthatkares.”
Adwaita Nayar, Co-Founder of Nykaa and CEO of Nykaa Fashion, expressed excitement, stating, “I am thrilled to announce the launch of Kay Beauty in the GCC region, in partnership with omnichannel retailer Nysaa. Kay Beauty has made a remarkable impact in India with its innovative and inclusive product range, resonating strongly with consumers from diverse backgrounds. Given the GCC’s emergence as a focal point for beauty enthusiasts eager to explore new market offerings, we are eager to introduce Kay Beauty to the region.”
Kay Beauty debuts in the UAE featuring an expansive collection of over 60+ SKUs for lips and face, along with approximately 30+ SKUs for nails and eyes, offering a comprehensive selection to suit every beauty requirement and preference. With a steadfast dedication to inclusivity, exceptional performance, and cruelty-free formulations, the brand emerges as a premier option for makeup enthusiasts in the region.
This strategic move by Kay Beauty not only introduces its celebrated range to the UAE but also seeks to leave a notable impression in a region renowned for its diverse demographic and shared enthusiasm for both beauty and Indian cinema.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
