Tata Group eyes expansion with potential stake purchase in Fabindia’s apparel business

April 18, 2024

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.

Continue Exploring: Tata Group’s Zudio makes big move with first flagship store launch in Noida

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.

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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.

Nestle India responds to sugar concerns in baby food, highlights 30% reduction in added sugars over 5 years

SnackTeam

April 18, 2024

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).”

Continue Exploring: Nestle shareholders push for healthier food sales amid concerns over nutritional impact

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.

Continue Exploring: Nestle India approves 0.15% annual increase in royalty payments to parent company for next five years

Flipkart expands VIP subscription to eight new cities, intensifying competition with Amazon Prime

SnackTeam

April 18, 2024

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.

Continue Exploring: Amazon launches affordable Prime membership to compete with Flipkart’s VIP pass

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.

Continue Exploring: Flipkart challenges Zepto and Blinkit with quick commerce expansion

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.

Continue Exploring: Flipkart expands portfolio with nationwide bus booking services, introduces 25,000 routes across India

The company has recently secured numerous investments.

Last week, the company received INR 1,421 crore (approximately $170 million) from its Singapore parent through an internal cash transfer.

Continue Exploring: Flipkart Internet receives INR 1,421 Cr in funding from Singapore-based parent

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.

Continue Exploring: Flipkart Internet receives INR 924 Crore cash infusion from Singapore entities

TGI Fridays enters merger agreement with UK franchisee Hostmore in $220 Million deal

SnackTeam

April 17, 2024

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.”

Continue Exploring: Nourish You acquires One Good in India’s largest ever plant-based foods merger

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.

Continue Exploring: TGI Friday’s closes 36 restaurants in the US, sells 8 to former CEO Ray Blanchette amid ongoing transformation

Tropicana diversifies product range with Special Start Line and Multivit Boost Flavors

SnackTeam

April 17, 2024

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.

Continue Exploring: Tropicana diversifies ambient portfolio with new juice offerings

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.

Continue Exploring: Taco Bell introduces refreshing Agua Frescas beverages in California!

Domino’s diversifies menu with introduction of New York Style Pizza in the US!

SnackTeam

April 17, 2024

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.

Continue Exploring: Magicpin integrates Domino’s Pizza into ONDC network, targets 1300+ stores in 45 days

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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LoveChild by Masaba Gupta partners with Shoppers Stop for retail expansion

SnackTeam

April 17, 2024

LoveChild, the beauty brand by Masaba Gupta, the renowned Indian fashion designer and actress, has partnered with the department store chain Shoppers Stop.

As part of this collaboration, LoveChild has introduced its shop-in-shop at Shoppers Stop, nestled within R City Mall, Ghatkopar. Moreover, its collection of beauty essentials will be showcased on the Shoppers Stop Beauty online platform.

“We’re excited to introduce the LoveChild kiosk at Shoppers Stop and proud to be their offline retail collaborator. This alliance with LoveChild by Masaba underscores our dedication to providing Shoppers Stop customers with top-notch, premium beauty products,” remarked Biju Kassim, Shoppers Stop’s Chief Executive Officer of Beauty.

LoveChild made its foray into offline retailing in February of this year, inaugurating two brand kiosks in Mumbai and Delhi.

“We’re excited to begin this transformative journey in partnership with Shoppers Stop. Through our Shop-in-Shop and Online Retail presence at Shoppers Stop, we aspire to empower consumers to embrace homegrown beauty brands, offering potent formulations and solutions where skincare meets beauty,” Gupta expressed.

The brand plans to open additional kiosks in the upcoming months across various cities.

Continue Exploring: Masaba Gupta’s LoveChild brand makes offline debut with Mumbai kiosk launch

In August 2022, Gupta’s fashion and lifestyle brand, House of Masaba, unveiled its own makeup line, Lovechild, featuring a dedicated e-commerce platform offering a vibrant selection of lipsticks, lip glosses, and nail polishes.

LoveChild is presently under the ownership of the Aditya Birla Group within the House of Masaba franchise. In January 2022, the company established a strategic alliance with The Aditya Birla Fashion and Retail Ltd (ABFRL), with ABFRL acquiring a 51% stake in the venture. This partnership was designed to enable ABFRL’s entry into the beauty and personal care market in India.

The House of Masaba concept debuted in 2009. Presently, the brand boasts 15 stores across India, with four located in Delhi, four in Mumbai, two in Bengaluru, and one each in Ahmedabad, Hyderabad, Gurugram, Kolkata, and Ludhiana.

Continue Exploring: Ace Turtle and Shoppers Stop collaborate to introduce Dockers, redefining men’s fashion in India

British fashion retailer Superdry maps out privatization route in bid to secure future

SnackTeam

April 17, 2024

Superdry, the British fashion retailer, has put forth a rescue plan to avoid administration. This proposal, spearheaded by CEO Julian Dunkerton, entails fundraising, departure from the London Stock Exchange, and a comprehensive restructuring strategy.

The success of the restructuring plan hinges on the completion of the equity raise, which is contingent upon obtaining approval from shareholders.

Superdry’s share trading experienced a brief suspension following a significant drop early on Tuesday, prompted by the company’s cautionary statement regarding potential administration if the plan failed to materialize. The shares were last recorded at a 33% decrease, trading at 5.36 pence, marking an 84% decline for the year.

The rescue strategy, aimed at securing significant cash savings through rent cuts at 39 out of Superdry’s 94 stores in the UK, along with extending the maturity of loans from the group’s debt facility agreements, arrives amidst the company’s struggle with diminished demand and financial constraints.

Continue Exploring: Superdry CEO Julian Dunkerton weighs takeover options as struggling retailer seeks recovery

“This plan is the best course for all stakeholders, focusing on achieving the right size,” Dunkerton stated.

The 59-year-old, who co-founded Superdry in 2003 and holds the largest share, announced last month that he won’t be making an offer for shares beyond those he already possesses.

Dunkerton has fully underwritten an equity raise offering two options: an open offer aiming to raise the sterling-equivalent of 8 million euros ($8.49 million) or a placing to raise gross proceeds of 10 million pounds ($12.45 million).

Dunkerton also mentioned that there are currently no plans to return to a public listing in the near future.

Known for its jackets and clothing inspired by American vintage styles and Japanese graphics, Superdry acknowledged that trading conditions continued to remain challenging.

In recent years, its popularity has waned as it grapples with the challenge of attracting younger shoppers despite ramping up its marketing endeavors. In a similar vein, Ted Baker, a prominent brand in the UK, succumbed to administration last month, revealing plans for store closures and workforce reductions.

“The expectation is that the company can rejuvenate its struggling brand away from the scrutiny of public markets,” commented Danni Hewson, an analyst at AJ Bell.

Continue Exploring: Reliance Brands unveils new Superdry store in Bengaluru, promising fashion enthusiasts a fresh retail experience

Zepto gains ground in quick-commerce market as Instamart slips

SnackTeam

April 17, 2024

Over the last couple of years, Zepto has steadily increased its share of the quick-commerce market, edging out Swiggy Instamart. According to a report from HSBC Global Research, Blinkit has grown its share to 40%.

The report, created in collaboration with Zepto’s senior management, estimates that the company’s market share rose from 15% in March 2022 to 28% in January 2024.

During the same period, Instamart’s market share declined from 52% in March 2022, when it held the largest share in the ecosystem, to 32% in January 2024. Conversely, Blinkit‘s market share increased from 32% to 40% over that timeframe.

Swiggy Instamart did not respond to a request for comment regarding the report.

Continue Exploring: Flipkart challenges Zepto and Blinkit with quick commerce expansion

According to the report, Blinkit, boasting approximately $2 billion in gross merchandise value (GMV) terms and poised to double in 2024, holds the dominant position in the market. Currently, Blinkit’s margins at the earnings before interest, taxes, depreciation, and amortization (EBITDA) level stand at -2%, with expectations to enhance to 4-5% by FY27.

HSBC also increased the target price of Zomato, the parent company of Blinkit, to INR 215 per share and assigned it a ‘buy’ rating. Zomato shares were last traded at INR 188.3 per share on the NSE.

Continue Exploring: Quick-commerce giants grab 30-50% of FMCG sales, kirana stores witness slowdown

“Our projection is that India would move straight from unorganised retail (kirana shops) to quick-commerce (QC), with minimal penetration of modern retail (MR). Furthermore, in our opinion, the bulk of value movement at this point is happening from unorganised retail to QC. Importantly, this is caused by the fact that, in contrast to MR, QC mimics the majority of characteristics of unorganised retail in India,” the report said.

This report comes as all major quick-commerce platforms expand their offerings, recording robust sales growth in non-grocery categories like beauty, toys, health, and electronics, as reported by Snackfax on March 4. According to a Goldman Sachs report, around 15% of Zepto’s $1.2-billion annualized gross sales currently come from non-grocery products.

Continue Exploring: Quick commerce platforms Blinkit and Zepto expand into e-commerce, targeting fashion, beauty, electronics, and more

According to the HSBC report, advertising revenue would also play a vital role in the profitability of quick-commerce platforms.

“Even when juxtaposed with ecommerce platforms such as Flipkart & Amazon, QC is better positioned to capture ad spend due to its better terms of trade (take rate) for grocery versus non-grocery. We believe that advertising take rates (terms of trade) in food are about 6-8% higher than in electronics, giving QC platforms a significant relative edge over other ecommerce platforms,” it stated.

Continue Exploring: Mall hypermarkets scale down as quick commerce apps gain momentum, sales decline prompts closures, say operators

Mokobara expands footprint: Opens first store in Tamil Nadu, marks milestone of 10 stores across 5 cities in just one year

SnackTeam

April 17, 2024

Mokobara, a renowned travel and lifestyle brand, has launched its first store in Tamil Nadu, as announced by a company representative on social media.

“Incredibly excited to announce that Mokobara has achieved a significant milestone with 10 operational stores across more than 5 cities within just one year,” stated Ayushi Yadav, Mokobara’s head of business development, in a LinkedIn post.

In May 2023, the company made its foray into brick-and-mortar retail by inaugurating its first retail store in Bengaluru at Phoenix Marketcity, Whitefield.

Continue Exploring: D2C luggage brand Mokobara secures $12 million in funding from Peak XV Partners, existing investors

The D2C brand offers products such as travel bags, briefcases, totes, slings, wallets, and accessories.

In December 2023, the retailer unveiled its ninth store in Hyderabad at Sarath City Capital Mall. Concurrently, the brand entered North India with the inauguration of its first store in Gurugram within the same month.

Continue Exploring: Mokobara expands to North India with first store in Gurugram

Established in early 2020 by Sangeet Agarwal and Navin Parwal, Mokobara began as an online luggage brand catering directly to consumers. Alongside its brick-and-mortar presence in cities such as Bengaluru, Mumbai, and Pune, the brand also reaches customers through its own e-commerce platform and several online marketplaces like Flipkart, Myntra, Amazon, and Nykaa.

At present, Mokobara is intensifying its omnichannel expansion efforts with plans to open more than 20 retail stores during the fiscal year 2024.

Continue Exploring: Mokobara’s operating revenue soars fourfold to INR 53 Crore in FY23, despite a 78% increase in losses

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