Packaged mineral water brand Mount Kailash has appointed Pallavi Saha as its new chief executive officer.
Saha recently took on the role to support the company’s growth and expansion efforts.
Bringing more than twenty years of expertise, she has worked with renowned brands such as Apple, Whirlpool, and Chobani. She is also recognised for her leadership in developing new product lines in the United States, Europe, as well as the Asia-Pacific region.
Leveraging her profound grasp of global trends and their impact on industries, she will be instrumental in shaping the company’s strategies to synchronize with India’s anticipated economic growth.
Commenting on the same, Saha remarked, “I am deeply honored to be affiliated with a brand that epitomizes the noble cause of elevating humanity. Continuing this esteemed legacy is both humbling and motivating.”
She will spearhead Mount Kailash’s strategic expansion initiatives, starting with the Delhi National Capital Region (NCR). The company aims to fortify its foothold in this area initially and envisions extending its influence gradually across the northern region. This ensures that a wider audience can avail themselves of its premium hydration solutions.
Zomato, the foodtech giant, has received approval from the Indonesian government to liquidate its subsidiary in the Southeast Asian country.
According to a regulatory filing, the company announced that it obtained the final decree from Indonesia’s Ministry of Law on April 29, approving the liquidation of Zomato Media Indonesia.
The company stated, “We would like to inform that on April 29, 2024, the Indonesian Ministry of Law issued a final decree letter approving the liquidation of PT. Zomato Media Indonesia (“PTZMI”), a wholly owned subsidiary of Zomato Limited with effect from March 21, 2024.”
The approval comes a year after the company initiated the liquidation process of the subsidiary. According to Zomato’s red herring prospectus filed in July 2021, the Indonesian arm did not have active business operations.
In the same document, Zomato stated that PTZMI’s net worth stood at approximately INR 1.5 Cr, constituting a mere 0.01% of its overall net worth.
The foodtech giant ventured into Indonesia nearly a decade ago, in 2013. Nonetheless, it seems to have struggled to gain traction in the country. The decisive setback occurred in late-2020 amidst the Covid-19 pandemic, prompting the company to terminate all its employees in Indonesia.
In February last year, the company officially ceased its operations in Indonesia. Subsequently, its websites for the country began displaying a message confirming the shutdown of its foodtech services there.
This development comes at a time when Zomato has been actively dissolving its foreign subsidiaries. In February this year, it announced the completion of the liquidation of its subsidiaries in Vietnam and the Czech Republic.
In January, the company also initiated the process of dissolving its Polish step-down subsidiary, Gastronauci SP. Z.O.O. Since 2021, it has liquidated subsidiaries in Slovakia, the Czech Republic, the US, the UK, Ireland, New Zealand, Canada, Australia, Jordan, and Qatar.
While the exact reason remains undisclosed, the spree of shutdowns likely originated from the company’s efforts to streamline operations and close unprofitable subsidiaries that contributed little to its overall revenue.
Nevertheless, it has intensified its focus on its presence in India and has introduced numerous new offerings and pilot programs in the past month. These include an all-electric large order fleet, a ‘Pure Veg’ fleet, last-mile delivery services for office workers within corporate parks, as well as priority deliveries in select areas of Bengaluru and Mumbai.
In terms of finances, the foodtech giant maintains robust profit and revenue growth. Zomato saw its net profit increase more than fourfold sequentially to INR 138 Cr in the quarter ending December 2023. Similarly, its operating revenue surged over 15% quarter-on-quarter (QoQ) to INR 3,288 Cr in Q3 FY24.
Building on this momentum, Zomato’s shares have soared almost 200% in the last 12 months, with the stock rising over 56% year-to-date (YTD). Recently, Goldman Sachs raised its price target (PT) on the stock by more than 40%, increasing it from INR 170 to INR 240.
Zomato’s shares closed yesterday’s trading session down by 0.28% at INR 193.05 on the BSE.
Licious, a renowned brand for premium meats and seafood, is set to open five physical stores in Bengaluru by June. Founders Vivek Gupta and Abhay Hanjura plan to expand the store network to 35-40 locations across two to three cities by the end of this fiscal year.
The initiative aims to tap into new users in the offline channel and eventually transition them to online transactions as well, they said.
In the upcoming five years, the Bengaluru-based startup has set its sights on establishing 500 stores nationwide, marking it as its “next big focus” area.
“Traditionally, meat has predominantly been an offline-focused category, and we’re simply following the customer’s preferences,” stated Hanjura.
This aligns with the trend of numerous new-age online-centric brands venturing into offline spaces to attract fresh customers. Additionally, there are reports highlighting how tech-first venture funds are supporting consumer brands with retail presence, particularly in the food and beverage sector.
While pursuing its omnichannel strategy, Temasek-backed Licious is also aiming to achieve profitability on an earnings before interest, tax, depreciation, and amortization (EBITDA) basis by the end of FY25, Gupta mentioned.
The founders stated that the company maintains an operating profit margin of approximately 6%, covering processing, wastage, manufacturing, and delivery costs, while excluding marketing and corporate expenses.
The decision comes just months after Licious cut 80 jobs as part of a plan to improve profitability.
In FY23, the company recorded a 9% year-on-year growth in revenue, reaching INR 748 crore, falling short of the projected revenue of INR 1,500 crore. However, there was a notable reduction in the year’s losses, decreasing by approximately 38% to INR 529 crore.
In November last year, reports indicated that online meat firms were reevaluating their business strategies to adjust growth expectations due to a slowdown in consumption. These firms were adversely impacted by the resurgence of physical meat and fish shops, as well as macroeconomic challenges such as inflation.
Licious’ main competitor is FreshToHome, which is backed by Iron Pillar.
Hanjura stated that Licious currently maintains a monthly revenue run rate of approximately INR 73 crore, with aspirations to reach INR 100 crore by the end of FY25. He mentioned that out of this target, INR 8-10 crore is expected to stem from offline sales.
He mentioned that the company’s monthly cash burn has decreased to INR 10 crore from approximately INR 50 crore per month a year ago.
Gupta stated that, in order to decrease cash burn, the company has implemented measures such as cost reduction in sourcing and processing, alongside enhancements in demand forecasting, among other initiatives.
Gupta mentioned, “We also integrated technological solutions such as proprietary software, which augmented the yield from each animal. For boneless chicken pieces, for example, the yield per chicken rose from 50% to 77%.” Additionally, he noted that wastage simultaneously decreased from 6% to 3.5%.
As per the founders, the premium meat and seafood market is still far from reaching saturation.
Gupta explained, “In the case of many grocery items such as milk, tea, flour, and others, FMCG companies levy a significant premium compared to prices offered by unorganized sellers. Similarly, we aim to establish a comparable premium in unorganized wet markets. However, the distinction lies in the fact that FMCG players have gradually implemented this strategy over many years, resulting in customers not perceiving the premium as prominently.”
Recently, Licious launched a subscription service called ‘Infiniti,’ which provides customers with perks such as free delivery and cashbacks on purchases. Presently, the company boasts 1.5 lakh subscribers, contributing to 40% of its revenue. Licious targets to increase its subscriber base to 2.5 lakh users by the conclusion of FY25.
For comparison, the company boasts more than 4 lakh monthly transacting users. Infiniti subscribers also demonstrate the highest monthly retention rates, exceeding 90%, in contrast to 30% for ‘light’ users. Additionally, they engage in over 60 transactions annually, with an average order value of INR 800, compared to the 25-30 transactions per year typically conducted by more casual users.
Hanjura emphasized, “Meat business thrives on repetition… Hence, growth doesn’t solely rely on expanding into new markets. It’s about delving deeper into existing markets, boosting consumption, and capturing a larger share of the consumer’s preferences.”
Approximately 85% of Licious’ sales originate from its proprietary website, while the remaining portion is generated through online grocery and quick-commerce platforms. In terms of value, chicken sales account for 45% of the business, followed by seafood at 20%, mutton at 18%, and the remaining portion is attributed to eggs and ready-to-eat products.
Kazo Fashion Pvt. Ltd., a Delhi-based fast fashion retailer, has expanded its retail footprint by opening a new store in Noida.
Located at DLF Mall of India, Noida, the latest store spans an area of 900 sq. ft. It features flexible store fixtures and infrastructure, showcasing the Spring-Summer 2024 collection.
“We are excited to announce the opening of our latest retail outlet in Noida, offering our esteemed customers the latest in cutting-edge fashion,” remarked Deepak Aggarwal, CEO & Founder of Kazo.
“We’re thrilled to unveil our newest store at the renowned DLF Mall of India. This strategic choice highlights our commitment to placing Kazo in dynamic, bustling areas that resonate with our fashion-forward audience,” expressed Siddhant Aggarwal, Director of Operations at Kazo.
Earlier this month, Kazo inaugurated a store at CP67 Mall, Mohali, as part of its efforts to bolster the brand’s presence in North India.
Established in 2007 by Deepak Aggarwal, Kazo is a women’s fashion brand providing a diverse range of products including tops, dresses, outerwear, bottom-wear, Co-Ord sets, jumpsuits, bags, accessories, and fragrances. With over 65 exclusive brand outlets (EBOs) and 120 shop-in-shop counters nationwide, the brand offers a comprehensive shopping experience through its website, mobile app, and multi-channel platforms.
The fresh offerings, Deep Ridge Crinkle Fries and French Fries, cook in under 8 minutes, promising “maximum crispiness”.
Mark Hodge, McCain’s Vice President of Marketing, expressed, “As pioneers in the frozen potato industry, we’ve developed a specialized selection of products tailored for air fryers. Our commitment to innovation ensures that we provide fast, convenient, and delicious options for busy consumers. Recognizing the demand for convenient, healthier choices, our Air Fryer range empowers consumers to elevate their home-cooked meals with restaurant-quality dishes in mere minutes.”
The recently launched McCain Air Fryer lineup is now accessible for purchase at various retailers throughout the UK.
Heinz has teamed up with the London-based chicken shop chain Morley’s to introduce its newest offering, the Heinz x Morley’s Fried Chicken Sauce.
The sauce, boasting a fusion of sweet and spicy notes, incorporates tomatoes, paprika, onions, and a touch of chili. Crafted to complement fried chicken, it also enhances various dishes, from spiced grilled lamb to halloumi and rice.
The sauce made its debut last year, initially exclusively offered in select Morley’s London chicken shops. “The response to our sauce last summer was incredible,” remarked Shan Selvendran, co-owner of Morley’s. “We knew we had loyal fans, but the overwhelming demand, with people searching for it and reaching out to us, caught us off guard! Collaborating with Heinz to fulfill our fans’ wishes is a dream come true. Seeing our family business featured in supermarkets nationwide will be truly special!”
Thiago Rapp, the head of sauces at Heinz, remarked, “Heinz x Morley’s Fried Chicken Sauce is a flavor explosion, blending sweetness and spice to elevate any meal. Fried chicken holds a special place in British cuisine, even more popular than fish and chips! Thus, combining our dedication to crafting the nation’s favorite sauces with Morley’s cult following was a natural choice. We’ve developed a sauce that amplifies the taste of any dish, whether you’re a fried chicken enthusiast or simply appreciate great food. This sauce truly revolutionizes the culinary experience.”
This marks the most recent addition to a series of innovative ventures from Kraft Heinz. Just this month, Heinz joined forces with Mattel to introduce a vegan ‘Barbiecue’ mayonnaise, while back in February, the brand launched a limited-edition pasta sauce named “The Godfather,” in collaboration with Paramount Pictures. Also in February, Heinz teamed up with Cathedral City to create cheesy baked beans, and in November, it revealed a novel pickle-flavored tomato ketchup.
The sauce is now available for purchase in major UK retailers starting today, priced at £3.39.
Starbucks, a US-based coffee chain, has opened its fifth store in Surat, as announced by a company official on social media. Positioned on VIP Road, it now stands as the 23rd Starbucks outlet in Gujarat.
“Incredibly excited to unveil the grand opening of our latest store in the diamond capital of the world – Surat, Gujarat. Starting off this fiscal year with the launch of a store in its inaugural month is truly remarkable,” shared Niyati Shah, Assistant Manager of Business Development at Starbucks India, in a LinkedIn update.
The store is situated at the International Wealth Centre, which serves as both a commercial and retail building.
Recently, the coffee retailer achieved a significant milestone in India by reaching 400 stores, with a new addition in Coimbatore at The Lakshmi Mills. With the goal of operating 1,000 stores in India by 2028, the company plans to open a new store every three days.
The Starbucks-branded coffee chain in India operates through a joint venture split evenly (50:50) between Seattle-based Starbucks Coffee Co. and Tata Consumer Products Ltd.
In 2023, Starbucks expanded its presence in India by venturing into 15 additional cities and inaugurating 71 new stores.
The beverage giant aims to double its workforce, expanding to approximately 8,600 partners from the current 4,300. This expansion strategy includes venturing into tier 2 and 3 cities in India and introducing services such as drive-thrus, airport locations, and 24-hour store formats to meet the diverse needs of customers.
The company recently unveiled its first store within the premises of Delhi High Court in India.
In the first quarter (Q1) of 2024, Domino’s Pizza reported a net profit of $125.8 million, marking a 20.1% surge from the previous year’s $104.8 million.
The rise in net income by $21.1 million was credited to increased earnings from operations, according to the company.
Throughout the quarter, Domino’s Pizza experienced a 5.9% revenue growth, reaching $1.08 billion from $1.02 billion in Q1 2023.
The $60.2 million revenue increase is due to higher supply chain revenues, US franchise royalties and fees, and US company-owned store revenues.
Operating income surged by $32.9 million, marking an 18.6% increase in the first quarter of 2024 compared to the corresponding period of the previous year.
In Q1 2024, the company’s diluted EPS (earnings per share) stood at $3.58, a rise from $2.93 in Q1 2023.
Domino’s global retail sales grew by 7.3% during the quarter, excluding the adverse impact of foreign currency fluctuations.
US same-store sales and international same-store sales (excluding the influence of foreign currency) increased by 5.6% and 0.9%, respectively.
In the latest quarter, the company disclosed a global net store growth of 164.
The board of directors at Domino’s Pizza announced a quarterly dividend of $1.51 per share for its outstanding common stock, benefiting shareholders.
Domino’s CEO, Russell Weiner, expressed, “Our first-quarter results showcase the strong beginning of our Hungry for More strategy, yielding increased sales, expanded store presence, and enhanced profits.”
“The significant value generated by our enhanced Domino’s Rewards loyalty program led to exceptional performance, resulting in double-digit profit growth that positively impacted our bottom line.”
“For the second consecutive quarter, both our carryout as well as delivery operations had positive order counts, which is important for our growth in the US. Furthermore, all income groups saw this order growth. We also started advertising on Uber Eats in Q1, and we’re still on schedule to end the year with at least 3% of revenue originating from this new channel.”
KFC Malaysia has decided to temporarily shut down its outlets across the country, attributing the move to challenging economic circumstances. This decision follows reports in local media suggesting that the closures were prompted by boycotts over perceived connections between the fast-food chain and Israel.
As a predominantly Muslim nation, Malaysia strongly backs the Palestinian cause. Consequently, certain Western fast-food brands within the country, like in other Muslim-majority nations, have faced boycott efforts due to Israel’s military actions in Gaza.
QSR Brands (M) Holdings Bhd, the operator of KFC and Pizza Hut franchises in Malaysia, announced the temporary closure of KFC outlets, citing “challenging economic conditions” as the reason.
“In response to rising business costs and to concentrate on high-engagement trade zones, QSR Brands and KFC Malaysia have proactively opted to temporarily close outlets,” stated a late Monday release.
Although it didn’t provide exact figures, the company didn’t specify the number of affected stores. However, local media outlets reported that over 100 outlets had been temporarily shut down.
QSR Brands stated that employees from the impacted stores were given the chance to transfer to outlets located in areas with higher customer engagement.
FirstCry, a kids-focused omnichannel retailer, recorded a consolidated net loss of INR 278.2 Cr for the nine months ending December 2023 in the financial year 2023-24 (FY24).
The Pune-headquartered startup reported a consolidated net loss of INR 486 Cr for the entire financial year 2022-23 (FY23), marking a 518% surge from INR 78.6 Cr in the preceding fiscal year.
According to the latest DRHP, FirstCry has recorded INR 4,814 Cr in revenue from operations for the initial nine months of FY24. The startup, preparing for an IPO, saw its operating revenue surge by 135%, reaching INR 5,632.5 Cr in FY23 compared to INR 2,401.2 Cr in the preceding fiscal year.
It’s worth noting that the omnichannel marketplace refiled its draft red herring prospectus (DRHP) on Tuesday (April 30) following a directive from the Securities and Exchange Board of India (SEBI). SEBI asserted that certain crucial indicators were omitted in the draft papers filed last December.
Meanwhile, during the period under review, FirstCry disclosed a total expenditure of INR 5,159.8 Cr. This contrasts with the company’s total expenditure of INR 6,315.6 Cr in FY23.
“We may experience losses in the future. We have experienced losses for the nine months that ended on December 31, 2023, as well as for the fiscal years 2023 and 2022. “The company stated in its DRHP that it lost INR 278.2 Cr during the nine months that ended on December 31, 2023, as a result of its total expenses surpassing its total income.
In the period, the startup’s primary expenditure remains its procurement cost, amounting to INR 3,108.1 Cr. During FY23, the startup incurred a procurement cost of INR 3,935.3 Cr.
FirstCry allocated INR 370.4 Cr towards staff salaries, gratuity, PF, and other employee welfare benefits. In FY23, it disbursed INR 769.8 Cr for employee benefit expenses. Moreover, an employee share-based payment expense of INR 133.8 Cr was registered during the period.
Additionally, the startup allocated INR 365 Cr towards its advertising and sales promotion efforts. Throughout FY23, its advertising expenses totaled INR 416.4 Cr.
Established in 2010 by Supam Maheshwari and Amitava Saha, FirstCry operates as an omnichannel marketplace catering to baby and kids products. The startup transitioned into a public company last year, marking the initial phase of its journey towards listing on the stock exchanges.
To date, FirstCry has secured more than $700 Mn through various funding rounds, with notable backers including SoftBank, Chrys Capital, and Vertex Ventures.
In its IPO, the SoftBank-supported startup plans to raise INR 1,816 Cr through the issuance of fresh shares. Additionally, the offer-for-sale (OFS) segment involves shareholders selling 5.4 Cr equity shares.
Participating in the OFS are a number of shareholders, including SoftBank, Premji Invest, TPG Growth, and Mahindra.
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