Rasayanam, a startup specializing in Ayurvedic supplements, has set its sights on reaching the INR 100 crore revenue milestone within this fiscal year. According to Ayush Aggarwal, the company’s founder, Rasayanam plans to broaden its offline footprint nationwide as part of its expansion strategy.
This year, the brand is prioritizing offline sales, aiming to collaborate with pharmacies and Ayurvedic doctors.
Aggarwal stated, “We remain profitable so far and have plans to expand both our product range as well as sales channels.”
Looking ahead, the firm aims to enhance its offerings with the introduction of six new products, which will include plant-based multivitamins and chawanprash this year.
When discussing sales and overall growth, Aggarwal revealed that online channels account for 90 percent of total sales, with the remaining 10 percent coming from offline channels.
The bootstrapped brand additionally revealed that it achieved revenue surpassing INR 30 crore in the fiscal year that ended on March 31, 2024, surpassing its initial target of INR 25 crore.
Regarding the company’s investment strategy as a whole, the Ayurveda supplements brand stated its intentions to allocate funds towards research and development (R&D), introducing new products, and expanding its manufacturing facility.
Discussing the health and wellness sector in India, Aggarwal noted its increasing competitiveness due to the emergence of new brands, a trend expected to persist. He highlighted a 70 percent rise in brand numbers compared to the previous year.
“When we launched in 2020 with our initial offering – Shilajit, only three other brands were offering this product on Amazon, today Shilajit is a separate category with more than 100 products,” he said.
Includ, an up-and-coming children’s clothing brand, has announced the successful closure of its seed funding round, securing $1.5 million. Spearheaded by Incubate Fund Asia, the round saw substantial investments from Escape Velocity, Abhishek Goyal (Co-founder of Tracxn), and the IIM Indore Alumni Angel Fund.
The startup plans to utilize the funds to enhance its supply chain, develop proprietary technology internally, and bolster brand awareness.
Moreover, the company intends to invest in technology to vertically integrate with its suppliers, establishing a robust supply chain for timely delivery. Additionally, the firm will leverage the funds to implement effective marketing and brand strategies.
Established in 2023 by Ashwin Rastogi, a seasoned entrepreneur renowned for building prominent direct-to-consumer (D2C) brands, Includ is strategically positioned to fill the market void for affordable yet premium-quality kidswear. Catering to children aged 0 to 14 years, the brand provides a diverse range of stylish and comfortable clothing. With India witnessing approximately 25 million births annually, the highest globally, Includ is poised to capitalize on a market projected to reach $20 billion, fueled by rising expenditure per child and the growing adoption of e-commerce.
Ashwin Rastogi expressed his views on the evolving nature of the Indian kidswear industry, pointing out the growing need for fashionable yet reasonably priced apparel. The kidswear market in India is undergoing a dynamic transformation, with a quick increase in demand for stylish, reasonably priced luxury clothes. We hope that by providing parents with peace of mind via quality and affordability, our expanding range will enable every kid to embrace their uniqueness. “We are grateful that prominent figures in the industry like Abhishek, Escape Velocity, Incubate Fund Asia, and others are on board with our vision,” stated Rastogi.
Expressing his enthusiasm about the partnership, Rajeev Ranka, Partner at Incubate Fund Asia, remarked, “We are thrilled to collaborate with Includ as they craft a design-centric, high-quality, and affordable brand tailored for the Indian kidswear market.”
Madhav Tandan, Managing Partner at Escape Velocity, lauded Rastogi’s extensive domain knowledge and innovative strategies. “We were greatly impressed by Ashwin’s profound expertise in the field, having established digital-first brands of considerable scale from the ground up. His understanding of apparel supply chains and keen insight into what remains largely unexplored territory, not only in India but also in other burgeoning markets, stood out to us,” he remarked.
Prior to founding Includ, Rastogi made a significant impact in the D2C sector, contributing to the success of brands like Urbanic London and Club Factory. His extensive background in e-commerce and supply chains, coupled with a keen understanding of consumer behavior in India and emerging markets, drives his passion for building a brand that resonates strongly with both children and parents. In less than a year since its launch, Includ has achieved monthly sales surpassing INR 2 Crore, underscoring the brand’s rapid growth trajectory and market acceptance.
With the surge in demand for quick-commerce platforms, niche D2C companies operating in sectors such as fast-moving consumer goods, beauty and personal care, and health and fitness are now agreeing to a commission rate of 30-45% on sales. Additionally, they are investing in advertising and offering discounts on these platforms.
This is in stark contrast to the 10-20% fee paid by large, established FMCG firms to quick-commerce platforms such as Blinkit, Zepto, & Swiggy Instamart. This disparity reflects the intense rivalry for presence on these platforms.
According to over half a dozen D2C startup founders spanning various segments, the listing process typically spans months for most small brands and frequently ends in disappointment. They emphasized the growing importance of personal referrals in standing out amidst the crowd. They acknowledged the rush to secure listings on these platforms driven by the traffic they attract, which facilitates the discovery of new brands.
These individuals requested anonymity due to their commercial agreements with the platforms. Requests for comment from Blinkit, Zepto, and Swiggy Instamart went unanswered.
When it comes to new listings, senior executives of quick-commerce enterprises highlighted that a brand’s size and comparison to competitors are critical factors. “Annual or semi-annual revisions are made to terms, even for legacy brands,” stated an executive. When analysing a new brand, other elements to consider are what consumers are searching for, sales on other platforms, brand buzz, and the breadth of that category on the site. Executive stated that brands are significant stakeholders and will discontinue selling on the platform if something occurs that does not benefit both parties.
In addition to commissions, brands often spend roughly 20% of their overall revenue on platform marketing and discount their items by 20-25%. “We get calls and emails every week asking us to advertise more — sometimes it’s for a festival, sometimes it’s for a major IPL match,” one of the founders of the company stated.
An entrepreneur operating in the beauty and personal care sector disclosed agreeing to a 45% commission rate on Blinkit. Meanwhile, another entrepreneur in the FMCG sector reluctantly accepted a 30% commission rate on Zepto, in addition to allocating 27% of their budget towards marketing and discounts.
“Diwali came and went. The expense of not being listed was significant, so we acquiesced to their terms,” stated the second entrepreneur. Additionally, they highlighted that despite the overall cost of selling on e-commerce platforms being 5-8 percentage points lower, quick commerce sales volume surged to 70% of the firm’s total sales within a year. This starkly contrasts with the less than 10% contribution from major e-commerce platforms over a span of four years, the individual emphasized.
“It took us 53 weeks to finally secure a listing on Blinkit, and we diligently followed up with them every single week,” shared a D2C founder operating in the FMCG sector.
Nevertheless, it’s not solely about sheer effort. According to individuals familiar with the matter, quick-commerce firms are strategically leveraging search metadata to identify demand for specific brands and products as they venture into new categories. This approach mirrors the category expansion strategies seen in e-commerce over half a decade ago.
After securing a listing, the battle shifts to maintaining one’s presence.
“The demands for discounts and advertising expenditures are constant, and if your product fails to perform, the threat of being replaced becomes imminent,” noted the aforementioned founder.
The volatility is further heightened by the nature of the business — many D2C brands operate with short notice periods on their contracts and supply to the platforms via weekly or bi-weekly purchase orders. Dark-store space is limited and subject to continuous experimentation, intensifying the need for consistent performance.
Furthermore, brands frequently lack access to crucial data. According to multiple founders, although both Instamart and Blinkit offer seller dashboards, these platforms do not offer comprehensive insights into which products perform best and in which geographic regions.
Nevertheless, D2C firms enlisted on quick-commerce platforms assert that they have witnessed remarkable benefits in remarkably brief periods, highlighting a growing dependency on these platforms due to their successes.
One brand operating in the beauty and personal care sector has experienced a threefold increase in sales month-on-month since being listed on Zepto, while another in the FMCG domain saw sales surge by over fourfold across various platforms in 2023. Additionally, a third FMCG brand achieved a fourfold growth between its listing in December 2023 and the present on Swiggy Instamart.
According to their founders, this surge in sales is reshaping the essence of these firms. The second firm mentioned now derives over 60% of its sales from quick commerce. As for the third firm, over 70% of sales for the SKUs listed on quick commerce platforms stem from these channels, with this segment anticipated to soon become its primary contributor to total sales.
Reports suggest that non-grocery categories have been experiencing three- to four-fold sales growth on quick-commerce platforms.
According to founders, the payment settlement process is also more streamlined on these platforms.
One of the founders expressed, “They revolutionized the game for us, and our earnings gradually improve as volumes increase, despite the significant expenditure on commissions and advertisements. However, it’s still an incredible concentration of power, where they hold increasing sway over the success or failure of entire businesses.”
Reliance Industries‘ FMCG division achieved INR 3,000 crore in sales during FY24, its first full year of operations, according to a senior industry executive familiar with the development. Notably, the beverage brand Campa Cola alone contributed INR 400 crore to this substantial revenue milestone.
To provide context to Reliance Consumer Products’ (RCPL) performance, Emami, boasting five decades of operations, reported sales of INR 3,400 crore in FY23. Meanwhile, Colgate-Palmolive (India), the leader in the oral care market, achieved revenue of INR 5,226 crore in the same year, marking its eighth decade of operations.
Listed FMCG companies are still awaiting the declaration of financial results for FY24. RCPL formally began operations on November 30, 2022. RCPL, home to brands like Campa Cola and Independence, aims to continue the sales growth momentum, particularly in staples and beverages.
The company is considering raising between INR 500 crore and INR 700 crore this fiscal year from its parent company to establish bottling plants for Campa Cola. This initiative aims to enhance capacity in response to supply constraints.
RCPL’s parent company is Reliance Retail Ventures, which also serves as the holding company for the group’s retail business. An executive, speaking on condition of anonymity, mentioned that RCPL aims to strategically locate the new bottling plants to effectively serve consumers nationwide, including kirana stores.
The executive mentioned that Reliance Consumer Products’ revenue for FY24 includes INR 1,000 crore generated from over 200,000 kirana stores, along with the remainder from Reliance Retail’s grocery store network. Additionally, the company has set an internal revenue target of INR 5,000 crore for this financial year.
“The parent company plans to inject a significant amount of capital into RCPL this year. While the exact figure is yet to be determined, it’s anticipated to fall within the range of INR 500 to INR 700 crore. This decision stems from the need to establish company-owned bottling plants, as the previous strategy of solely partnering with other bottlers proved ineffective for achieving a nationwide launch of Campa Cola,” explained the executive.
In 2022, Reliance acquired the then-defunct Campa brand for around INR 22 crore. Campa Cola is currently readily available in Andhra Pradesh, the country’s largest cola market, although supplies remain limited in most other areas, including Reliance Retail outlets.
“Aside from essentials, RCPL’s primary line of business will be beverages. Since ordering equipment for bottling factories takes time, RCPL will shortly have the funding infusion needed to get things going,” the executive stated.
Queries directed at Reliance Consumer Products went unanswered.
RCPL bottles Campa Cola in collaboration with contract manufacturers and within a facility that also produces Sosyo carbonated soft drink in Gujarat, where RCPL holds a 50% stake. Additionally, the company partners with contract bottlers in Andhra Pradesh, West Bengal, Tamil Nadu, Uttar Pradesh, and Maharashtra, where it has an agreement with Ghodawat Consumer Products.
During the period spanning February to March 2023, Reliance Retail Ventures injected INR 277 crore into RCPL by opting to subscribe to fully convertible debentures.
According to documents submitted to the Registrar of Companies, this marked the first significant capital injection by the promoters into the enterprise. Additionally, the filings reveal RCPL’s intentions to venture into every FMCG category.
The Tata group is reportedly in discussions with the promoters and shareholders of Fabindia for a stake or outright buy of the ethnic apparel business, as per reports from The Hindu BusinessLine, citing sources.
Negotiations are ongoing, though insiders suggest that the acquisition may assess its worth below the $2.5 billion estimated during the clothing company’s unsuccessful initial public offering.
Should the agreement materialize, it could potentially become the largest deal in the sector, following Aditya Birla Fashion Retail‘s acquisition of a controlling interest in TCNS Clothing last year.
This marks a strategic expansion for the Tatas into the ethnic wear sector. Their retail branch, Trent, offers apparel under various brand names like Westside, Zudio, and Utsa. Furthermore, Fabindia’s commitment to traditional techniques and sustainably sourced, hand-woven fabrics aligns well with the ethos of the Tata group.
Both the Tata group and Trent declined to comment. A spokesperson for Fabindia denied any ongoing discussions.
Fabindia requires funds not only to reduce debt but also to enhance production capacity and revitalize its clothing range.
The initial public offering (IPO) was intended to offer an exit opportunity for various investors, including Premji Invest, which holds over 20% stake through PI Opportunities Fund, and Bajaj Holdings. The majority of the IPO was planned as an offer for sale (OFS) by promoters and other shareholders, with INR 500 crore earmarked for a fresh issue.
In January, Fabindia reached an agreement to sell its subsidiary, Organic India, to Tata Consumer Products for an enterprise value of INR 1,900 crore. This decision came as part of its restructuring efforts following the abandonment of its INR 4,000-crore IPO last year, citing uncertain market conditions.
Fabindia, known for its premium ethnic apparel, has faced losses over the past three years. Tracxn data reveals that it recorded a revenue of INR 1,668 crore in FY23, marking a 21% increase from the previous year. However, expenses also surged by a fifth to INR 1,730 crore. The cash flow statement data indicates that it concluded FY23 with negative cash balances.
Once beloved by women of all generations, Fabindia has been losing market share to emerging competitors due to its failure to keep pace with fashion trends and craft designs that resonate with younger audiences. Additionally, its apparel is perceived as overpriced compared to alternatives like Global Desi.
Following the withdrawal of its IPO plan, Fabindia implemented several management changes. William Nanda Bissell, owning over 15% stake in the company, transitioned from Executive Vice-Chairman and Director to Managing Director. Mukesh Chauhan assumed the position of Executive Director. Viney Singh, upon completing his tenure as MD, assumed the role of non-executive director.
Fabindia operates a network of more than 300 stores, offering a range of products including apparel, furnishings, furniture, and lifestyle accessories.
Amidst concerns raised by a report regarding sugar levels in Nestle’s baby food products sold in certain low and middle-income countries, Nestle India said on Wednesday that it has reduced “added sugars” by up to 30 percent in its infant cereals portfolio over the past five years.
According to a report from Public Eye, a Swiss investigative organization, Nestle’s baby-food brands Cerelac and Nido, sold in countries with lower and middle incomes such as India, have been found to contain high levels of “added sugar.”
In response to the report, a spokesperson from Nestle India stated, “We stand by the nutritional quality of our products designed for early childhood and make it a priority to utilize top-notch ingredients. Over the last 5 years, Nestlé India has achieved a reduction of up to 30 percent in added sugars across various variants in our range of infant cereals (complementary food based on milk cereal).”
The company’s statement further emphasized, “We consistently assess our product range, striving for innovation and reformulation to decrease added sugar levels while maintaining uncompromised quality, safety, and flavor.”
The report, drawing from research by Public Eye and the International Baby Food Action Network (IBAN), revealed that in India, “every serving of Cerelac baby cereals contains an average of nearly three grams of added sugar.”
“Public Eye and IBFAN analyzed approximately 150 products distributed by the food corporation in lower-income countries. Nearly all Cerelac infant cereals investigated were found to contain added sugar, averaging nearly 4 grams per serving, equivalent to approximately one sugar cube, despite being marketed for babies aged six months and older,” stated a press release on Public Eye’s website.
Several months after launching its VIP subscription programme, Walmart-backed ecommerce giant Flipkart has rolled out the service to 8 new cities in order to increase its client base.
With this expansion, Flipkart’s VIP subscription programme will now be available for customers in Ahmedabad, Bhubaneswar, Coimbatore, Guwahati, Hyderabad, Patna, Pune, and Ranchi.
Previously, the programme was restricted to customers in Bengaluru, Delhi-NCR, Kolkata, and Mumbai.
The Flipkart VIP subscription program provides benefits such as 48-hour free delivery, an additional 5% savings through SuperCoins, immediate access to specialized customer support, and the ability to cancel or reschedule Cleartrip flights for just INR 1.
Moreover, there are extra perks, including special offers on Cleartrip hotel reservations, return pick-up within 48 hours, and early access to shopping festivals.
As part of the program, customers can purchase a subscription for INR 499 and enjoy VIP membership for a year. Additionally, there’s a limited-time offer allowing all new VIP customers to save on every grocery order.
Prabh Singh, Flipkart’s Senior Vice President for Growth, Customer, and Ads, expressed, “Following the success of this program in four cities, we’re excited to introduce the launch of Flipkart VIP in eight new cities.”
It’s worth noting that Flipkart introduced this program in October last year as a strategic move to compete with its rival, Amazon.
While Flipkart’s VIP program offers similar features to Amazon Prime, it doesn’t universally ensure free same-day or next-day deliveries, a service that has given Amazon a competitive edge through its Prime program.
In contrast, Amazon Prime provides a comprehensive package, including access to Prime Video, Prime Music, Gaming, and Reading. Currently, Flipkart VIP does not include entertainment offerings.
This development comes in the wake of reports from a month ago, suggesting that Flipkart is venturing into the quick commerce space to compete with platforms like Zepto, Zomato’s Blinkit, and Swiggy’s Instamart.
In the next six to eight weeks, Flipkart plans to roll out 10-15 minute delivery services in at least a dozen cities.
Recently, the company has expanded its travel service offerings by launching a bus booking facility on its app, providing customers access to 10 lakh bus connections covering over 25,000 routes across India.
In March, Flipkart Internet, its marketplace arm, received a cash injection, garnering approximately INR 924 crore ($111 million) in two installments from its affiliated entities located in Singapore.
However, amidst these developments, the ecommerce giant witnessed a decline in its valuation by $5 billion (INR 41,432 crore) as of January 2024 compared to January 2022, according to equity transactions reported by its US parent company, Walmart.
TGI Fridays has agreed to an all-share acquisition by Hostmore, its UK-based hospitality business counterpart.
The £177 million ($220 million) transaction is set to be completed in the third quarter of 2024.
Stephen Welker, Chairman of Hostmore, expressed, “Through this acquisition, we aim to amplify our current strategy, bolstering Hostmore’s financial prospects and enriching shareholder returns. Additionally, it fortifies our capacity to deliver outstanding guest experiences, leveraging our unique and reputable brand as the ultimate destination for celebrations.”
“We eagerly anticipate offering both our current and prospective shareholders the chance to partake in the substantial value creation potential of the merged entity moving forward.”
The merged entity will adopt the name TGI Fridays PLC and will trade on the London Stock Exchange under the ticker symbol “TGIF”.
The acquisition aligns with TGI Fridays’ strategy for transformation, aimed at positioning the brand for sustained, long-term global expansion.
TGI Fridays CEO Weldon Spangler remarked, “Our primary focus has been on rejuvenating the brand and fostering growth through consumer-centered initiatives, optimizing our restaurant portfolio, and recruiting key senior team members.”
“This transaction marks the next phase of our journey, expanding our corporate-owned restaurant footprint and furnishing capital for global expansion.”
“Hostmore is the ideal partner to help us realise our vision because they know how important it is to give guests ‘That Friday Feeling’ in the UK, which is the brand’s largest international market with 89 locations.”
TGI Fridays’ headquarters for its US and global operations will stay in Dallas, Texas, with Weldon Spangler remaining as CEO.
The newly formed entity will possess a portfolio of 189 corporate-owned restaurants in both the US and the UK, contributing to an aggregate of nearly 600 restaurants spread across 44 countries.
Presently, TGI Fridays is under the ownership of TriArtisan Capital Advisors, a private equity firm with investments in restaurant brands like PF Chang’s, C3, and Hooters of America.
Tropicana has broadened its product range by introducing the new Tropicana Special Start line and adding two fresh flavors to its Tropicana Multivit Boost range.
Tropicana’s latest juice line, Special Start, features three varieties of 100% pure pressed fruit juices: Sanguinello Blood Orange, Pink Grapefruit, and Pineapple. These fruits are sourced from meticulously chosen locations renowned for their exceptional taste and vibrant colors. For instance, Tropicana Sanguinello Blood Orange is sourced from the foothills of Mount Etna, known for its unparalleled flavor.
Tropicana has introduced two fresh additions to its Multivit Boost lineup: Mixed Berries and Smooth Orange. Each serving provides 100% of the daily Vitamin C needs, as well as crucial vitamins B1, B2, B6, and E.
These additional vitamins are vital for supporting regular energy metabolism, preserving skin and vision health, and shielding cells from oxidative stress.
Elizabeth Ashdown, the marketing director of Tropicana Brands Group, stated, “We recognize that consumers are actively pursuing healthier beverage options to enrich their daily habits, prioritizing their vitamin intake. By building upon the inherent health advantages of juice consumption, our latest additions to the Multivit Boost range will offer customers a flavorful juice option that aids in meeting their daily nutritional needs.”
Tropicana expanded its ambient portfolio last month with the introduction of two new juice ranges: Tropicana Rise & Shine and Tropicana Fruit Sensation.
The newly launched Special Start range and the additional Multivit Boost flavors are currently accessible for purchase at UK retailers.
Domino’s Pizza, the American multinational pizza restaurant chain, has broadened its menu by adding New York Style Pizza to its offerings.
This fresh addition boasts thin, foldable slices adorned with a tantalizing blend of 100% real mozzarella and provolone.
Domino’s pizza is crafted from hand-stretched, fresh dough, never frozen, ensuring quality with each bite.
Customers have the option to grab a large three-topping New York Style Pizza for just $10.99 or opt for the mix-and-match deal, snagging medium two-topping New York Style Pizzas for $6.99 each when ordering two or more menu items.
Members of Domino’s Rewards program can exchange 60 points for a complimentary medium two-topping New York Style Pizza.
Russell Weiner, CEO of Domino’s, expressed, “At Domino’s, we take pride in our diverse range of pizza crusts tailored to suit every palate.”
“Our pizza chefs have crafted this new pizza crust to showcase the deliciousness of our ingredients. With the perfect balance of crust, sauce, cheese, and toppings in every bite, it takes center stage. New York Style Pizza could easily become our customers’ new favorite crust,” he added.
In August 2023, Domino’s Pizza introduced Pepperoni Stuffed Cheesy Bread to its US menu, highlighting its fusion of the finest elements of pepperoni pizza into a delectable snack.
The latest addition to the menu was launched nationwide, available at both franchise and corporate outlets across the country.
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