Expanding its reach further, Tasva, the ethnic menswear brand, has made its mark in Kolkata with the unveiling of its latest store at Woodburn Park, Elgin Road, according to a recent post by a company official on social media.
This marks the brand’s second outlet in West Bengal, the first being in Siliguri.
“Thrilled to unveil our latest Tasva | Aditya Birla Group x Tarun Tahiliani store in Kolkata, situated at Elgin Road! Kolkata, we invite you to experience our outstanding service and stunning designs,” shared Varun Sharma, head of retail operations at Tasva, in a LinkedIn update.
The store features a range of sherwanis, kurta jackets, Indo-western ensembles, and accessories perfect for festivals, parties, and weddings.
Tasva is a venture under Indivinity Clothing, a collaboration between the renowned Indian designer brand Tarun Tahiliani and Aditya Birla Fashion & Retail Ltd (ABFRL). Launched in December 2021, Tasva specializes in ethnic menswear and debuted with its inaugural retail store located in Malleshwaram, Bengaluru.
In October 2022, Tasva expanded its presence into the e-commerce realm by partnering with Myntra, beyond its own online platform. Presently, the company boasts a network of over 60 stores spanning across more than 30 cities in India, as stated on its official website.
ABFRL, a fashion retail enterprise, is under the ownership of the Indian multinational conglomerate Aditya Birla Group. The company boasts a portfolio of brands including Louis Philippe, Van Heusen, Allen Solly, Peter England, and Pantaloons.
Many lifestyle companies are seeing a decline in demand across various product categories, as reported by Motilal Oswal Financial Services.
Stores have seen the clearance of accumulated old inventories, while companies have launched new summer collections.
January showed a decrease in demand, but February improved somewhat due to the wedding season and the prolonged winter. Additionally, management anticipates a stronger March, influenced by Holi and Eid festivities, as well as election expenditures. End-of-season sales (EOSS) remained consistent with the previous year during the same period, according to the brokerage. Ethnic companies are facing a subdued demand, as the quarter has fewer weddings despite more available wedding dates. Metro and Tier 1 cities/towns are still outperforming Tier 2 and Tier 3 locations.
Despite the challenging environment, companies are still expanding their stores at a rate of 10-15%. Historically, the last quarter is typically strong for retailers in terms of store growth.
“We expect all the companies in our coverage to continue adding stores. However, V-Mart is likely to shut down some of its unprofitable stores, possibly leading to a net reduction for the company in 4QFY24,” stated Motilal Oswal Financial Services.
Raw material costs have largely stabilized, and some companies have already passed these costs onto customers through price reductions in previous quarters. In the current quarter, we anticipate minimal price reductions by companies. With the clearance of old accumulated inventories, companies have launched new summer collections. The combined advantages of price reductions and raw material cost moderation could bolster demand recovery over the next two to three quarters, according to the brokerage.
In the fiscal year 2023-24, Maharashtra’s excise revenue reached a record high of INR 23,250 crore, primarily due to the tax levied on country liquor in the previous fiscal year. This collection marked an 8% increase compared to the INR 21,500 crore collected in the preceding year.
Officials stated that the 15% tax on country liquor encouraged many consumers to shift to Indian-made liquor (IMFL).
“People who used to consume 180ml bottles of country liquor shifted to lower-end Indian-made liquor (IMFL) of the same volume, as the price difference was only INR 30-40,” said an official.
Maharashtra generates an annual revenue of over INR 15,000 crore, with the majority coming from Indian-made foreign liquor (IMFL) and beer sales alone.
Industry sources suggested that the tax hike in Karnataka following the assumption of office by its new government last year might have also contributed to the revenue increase.
“The smuggling that previously happened across the region has now shifted towards Karnataka,” according to a source.
Since excise duty is imposed at the initial point of trade, regions with a higher number of factories lead in revenue collection, rather than those with higher consumption rates.
Renowned investor Ashish Kacholia has acquired a 17.2% stake in the Indian burger chain Jumboking for an undisclosed sum, making him the company’s second-largest shareholder. This investment was made through a secondary market transaction following Triton Fund’s exit from the firm, which had initially invested in 2018.
Industry experts estimate the transaction to be in the range of INR 70 crore to INR 80 crore, valuing the quick-service restaurant chain at approximately INR 400-500 crore. Jumboking reported sales of INR 110 crore in the last fiscal year, operating 170 stores across Mumbai, Delhi, Hyderabad, and Pune. It ranks as India’s third-largest burger chain, following McDonald’s and Burger King.
Dheeraj Gupta, the founder of Jumboking, stated, “Globally, franchising has proven to be the most effective method for scaling a business. While it’s a challenging model to master, once achieved, it can unlock exponential growth. Likewise, although burgers are a Western concept, Jumboking has the advantage of catering to the Indian palate more effectively.”
Founded in 2001, initially selling vada pav, a popular street food in Maharashtra, the company shifted its focus to burgers in 2017 with the goal of expanding to 1,000 stores by 2030.
Kacholia, well-known for his knack for spotting multibagger stocks, holds shares valued at INR 3,000 crore in listed companies. He invests through his firm, Lucky Securities, and has investments in more than 60 mid-sized companies.
His most significant investment is in Shaily Engineering, currently valued at INR 240 crore, followed by PCBL at INR 198 crore, Safari Industries at INR 183 crore, and Garware Hi-Tech Films at INR 173 crore. He holds a 12.5% stake in Beta Drugs, which represents his largest percentage holding in any listed company.
“Jumboking embodies top-notch execution and outstanding customer focus. I am thrilled to be part of India’s most promising QSR journey,” Kacholia commented.
According to Wazir Advisors, the organized foodservice market was valued at $27.1 billion in 2023, and the chained category is projected to grow at a CAGR of 12% from 2020 to 2026. This growth is driven by increased penetration and expansion in non-metro cities.
“QSR continues to be the fastest-growing category in the organized segment, with a projected robust growth of 18% from 2023 to 2026. This growth is fueled by the Indian population’s increasing urbanization and adoption of modern lifestyles. The QSR format has significant growth potential, as its penetration in India remains relatively low compared to developed economies,” stated Pakhi Saxena, Head of Retail and Consumer Products at Wazir Advisors.
Jumboking, an asset-light company that is 100% franchised, has experienced a seven-fold increase in sales since its repositioning in 2017. This growth is credited to its entrepreneurial franchising model, which prioritizes profitability over mere sales. The company aims to double its turnover in the next two years, expand its presence in Delhi and Hyderabad, and enter the Bangalore market this year.
D’Amazonia, a UK-based tea manufacturer, has expanded its portfolio with the introduction of a collagen-infused hot tea drink, capitalizing on its various health advantages.
D’Amazonia’s Beauty Tea combines a mix of ingredients such as Chinese green tea, collagen peptides, hibiscus, turmeric, moringa leaf, Chinese white tea, rosehip, apple pieces, and blackberry leaves.
As per D’Amazonia, collagen supplements have become a significant trend within the UK wellness community, being hailed as the “holy grail” for addressing joint stiffness and enhancing skin health. Making up 80% of the human skin, collagen is essential for retaining suppleness and firmness, acting as a natural barrier against premature wrinkles and maintaining skin elasticity.
Marcela Tupinamba, the founder of D’Amazonia, commented, “As always, our functional teas are designed to provide more than just delicious taste and refreshment.”
“Our beauty tea is designed to address the fact that as we age, our bodies not only produce collagen less efficiently but also combat unavoidable free radicals, such as UV rays from the sun, environmental pollution, and the effects of passive smoking, which hasten the depletion of our natural collagen levels.”
Starting May 24, 2024, Beauty Tea will be easily accessible for purchase, featuring 20 tea bags per package crafted entirely from 100% biodegradable materials.
Reliance-owned multinational toy retailer Hamleys has launched a new outlet in Mohali, Punjab, as per a recent social media post by a company official.
“Dhiraj Singh, General Manager – Real Estate and Business Development at Reliance Brands Ltd., announced in a LinkedIn post, “Hamleys is now open at CP67 Mall, Mohali.”
Snackfax had previously reported the opening of its first store in Italy on Corso Vittorio Emanuele in Milan.
Founded in 1760 by William Hamley, Hamleys was acquired by Reliance Brands Limited (RBL) in 2019. With more than 189 stores, the brand now operates in 16 countries.
Reliance Brands Limited (RBL), a subsidiary of Reliance Retail Ventures Ltd., was established in 2007. The company’s diverse portfolio of brand partnerships includes renowned names such as Armani Exchange, Balenciaga, Bally, Bottega Veneta, Brooks Brothers, Burberry, Canali, Coach, Diesel, Dune, EA7, Emporio Armani, G-Star Raw, Gas, Giorgio Armani, Hamleys, Hugo Boss, Hunkemoller, Iconix, Jimmy Choo, Kate Spade, La Martina, Lenscrafters, Manish Malhotra, Michael Kors, Mothercare, Muji, Paul & Shark, Paul Smith, Pottery Barn, Pret A Manger, Steve Madden, Superdry, West Elm, and Zegna.
Currently, RBL operates 2,212 sales points, consisting of 919 standalone stores and 1,293 shop-in-shops across India.
Over the last five years, RBL has not only focused on developing and managing indigenous designer brands but has also acquired the renowned British toy retailer, Hamleys. Hamleys boasts a global presence with 189 stores spread across 16 countries.
In March, India’s imports of sunflower oil surged by 51% compared to the previous month, marking the second-highest level on record. Lower prices prompted refiners to boost their sunflower oil purchases and reduce their procurement of competing palm oil, according to five dealers.
Reduced palm oil imports by India, the world’s largest vegetable oil importer, could limit the upward momentum in benchmark Malaysian palm oil futures, which are currently trading close to their highest level in a year.
Rising sunflower oil imports are expected to decrease sunflower oil stockpiles in the Black Sea region.
According to estimates from dealers, sunflower oil imports in March jumped 51% from the previous month to 448,000 metric tons, marking the second-highest level on record.
They reported that palm oil imports dropped by 3.3% to 481,000 tons, reaching the lowest level since May 2023.
“Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage, stated, “Sunflower oil imports are increasing as a substitute for palm oil. Production challenges are maintaining firm palm oil prices, leading buyers to shift towards sunflower oil.”
Dealers indicated that crude palm oil (CPO) imports are available for approximately $1,020 per metric ton, inclusive of cost, insurance, and freight (CIF), for May delivery in India. Meanwhile, soyoil and sunflower oil are being offered at approximately $1,000 and $960 per ton, respectively.
Typically, palm oil is priced lower than its competitors, soyoil and sunflower oil. However, due to decreasing stocks, its prices have surpassed those of the rival oils, which currently have ample supplies.
“Sunflower oil prices are highly competitive, which is expected to drive increased imports even during April and May,” stated Rajesh Patel, managing partner at the edible oil trading and brokerage firm, GGN Research.
Dealers estimated that soyoil imports surged by 27% to 220,000 tons in March compared to the previous month. However, this figure is considerably lower than the monthly average imports of 306,000 tons recorded in the last marketing year that ended on October 31.
Dealers reported that increased imports of sunflower oil and soyoil boosted India’s total edible oil imports to the highest level in six months, reaching 1.149 million tons in March. This marked an 18.7% rise from the previous month.
India primarily purchases palm oil from Indonesia, Malaysia, and Thailand, while sourcing soyoil and sunflower oil from Argentina, Brazil, Russia, and Ukraine.
India should expect the opening of more luxury hotels from renowned brands like Fairmont, Raffles, and Sofitel, as stated by Sébastien Bazin, the group chairman and CEO of Accor, Europe’s largest hotel chain. He further mentioned that other brands from Accor’s luxury and lifestyle division are also expected to establish their presence in the country in the coming years.
Accor plans to open 30 new hotels in India over the next three to five years, adding approximately 5,500 rooms. Despite the fact that Sébastien Bazin already operates 62 hotels in India, totaling approximately 11,000 rooms, he believes this is insufficient.
“I have always had great faith in India. However, while we operate 2,000 hotels in France, we have fewer than 100 hotels in India. Considering the vast size of the country, we should ideally have over 1,000 hotels here. I understand this will take time, but it’s a vision for the future that will be worthwhile. As we expand, we will require more Accor employees across various levels and will need to empower them with greater decision-making authority,” he elaborated.
Bazin emphasized that India is a country that cannot be overlooked.
“We are fortunate to have the best partner anyone could hope for in Rahul Bhatia of IndiGo airline. I should be visiting here every quarter to deepen my understanding of the country and to address any existing challenges,” he commented.
“It’s uncommon to find a country with the world’s largest population that has been the fastest-growing for the past five years, and likely to maintain this pace for the next five years, coupled with a burgeoning middle class, improved access to education, and advancements in technology and telecom. India boasts rich heritage, archaeology, and diverse geography stretching from the Himalayas to the Indian Ocean. It offers everything one could desire, backed by a visionary government,” he remarked.
Bazin mentioned that Accor, set to introduce its Raffles Jaipur hotel this year, is also contemplating bringing luxury brands like Orient Express to India. However, he acknowledged that challenges in hotel development timelines persist, despite a more favorable fiscal environment.
“It is likely the most historic brand in the hospitality sector, with a legacy of about 140 years. It’s more than just a product; it embodies a sentiment. We are expanding into trains, yachts, and hotels under this brand. Orient Express holds significant potential in India. Raffles, on the other hand, represents elegance, heritage, and palatial luxury, making it one of our most promising brands,” he remarked.
Accor established its luxury and lifestyle division about 18 months ago, boasting around 550 hotels and 24 brands, including notable names like 25hours, Delano, Mondrian, Mama Shelter, and MGallery. Last year, in partnership with the Hinduja Group, Accor unveiled Raffles London at The OWO, which stands as London’s most lavish hotel.
“We currently hold the second position globally in luxury lifestyle, just behind Marriott. It will take time, but our ambition is to claim the top spot,” he commented. Accor added 291 hotels with 41,000 rooms to its portfolio last year. Bazin stated that the company plans to open a comparable number of hotels, amounting to around 48,000-50,000 rooms, this year. Additionally, the company recruited 120,000 new employees last year.
“We currently hold the second position globally in luxury lifestyle, just behind Marriott. It will take time, but our ambition is to claim the top spot,” he commented. Accor added 291 hotels with 41,000 rooms to its portfolio last year. Bazin stated that the company plans to open a comparable number of hotels, amounting to around 48,000-50,000 rooms, this year. Additionally, the company recruited 120,000 new employees last year.
“In America, American chains dominate. In China, the likes of Jin Jiang and Huazhu are in control. However, outside of these regions, Accor holds sway. Apart from Europe, we are the leading operator in the Middle East, South America, and Asia Pacific, including key markets like Australia, Korea, and Japan,” Bazin explained.
Accor announced its intention to return approximately 3 billion Euros to shareholders between 2023 and 2027 through dividends and share buybacks. Bazin has committed to shareholders and analysts to achieve a growth rate of 9-12% annually for the next four years. “I’ve made this commitment to ensure disciplined delivery of results. With each passing year, our strength will increase. The travel and tourism industry is flourishing, expected to grow at about 5% annually for the next 20 years. We are fortunate to witness such high demand in travel,” he remarked.
The Food Safety and Standards Authority of India (FSSAI) has instructed all e-commerce companies not to label dairy-based beverages, cereal-based beverages, or malt-based beverages as ‘health drink’ or ‘energy drink‘. The term ‘health drink’ is not defined under the country’s food laws, and ‘energy drink’ specifically refers to carbonated and non-carbonated water-based flavored drinks as per the regulations.
Using incorrect terms may lead to “misleading” consumers. Therefore, the Food Safety and Standards Authority of India (FSSAI) has recommended that all e-commerce Food Business Operators (FBOs) promptly correct this misclassification by removing or delinking such drinks or beverages from the categories of ‘Health Drinks / Energy Drinks,’ as stated by the food regulator in a statement.
FSSAI has clarified that the term ‘Health Drink’ is neither defined nor standardized under the FSS Act 2006 or the rules and regulations governing the food industry.
The term ‘Energy Drinks’ is allowed to be used only for products such as carbonated and non-carbonated water-based flavored drinks.
Snackfax previously reported that FSSAI is considering stricter regulations for caffeine energy drinks due to their increasing sales.
“The corrective action is intended to improve clarity and transparency regarding the nature and functional properties of the products, ensuring that consumers can make informed choices without being misled,” the statement added.
Companies like PepsiCo, Coca-Cola, and Hell are selling energy drinks at approximately one-fourth the price of global category leaders like Red Bull and Monster. They have also popularized these drinks by selling them in grocery stores. According to company executives citing data from NielsenIQ, energy drink sales are growing at a rate of 50-55% per year.
However, the increasing consumption of these drinks, especially among young people, is a concern, as studies indicate potential health risks from excessive intake.
For the first time in nearly three years, the growth in sales of fast-moving consumer goods (FMCG) in villages has outpaced that in cities. This signals an early indication of demand recovery, supported by a lower baseline and price adjustments to mitigate hyperlocal competition.
According to executives referencing NielsenIQ data, rural markets saw a volume growth of 6.5% in both December and January, and a growth of 11.1% in February. In contrast, urban markets grew by 6.1% in December, 4.7% in January, and 8.7% in February, as per the data.
Until November 2023, rural demand, along with underperforming urban markets, had been dampening overall growth for the past few years. The last time villages surpassed cities in FMCG sales expansion was in March 2021.
“During the third quarter, we observed a return to growth trajectory in the hinterland demand,” stated Dabur CEO Mohit Malhotra.
Malhotra mentioned that in October-December, rural demand surpassed urban demand by 200 basis points. He also noted that Dabur’s rural distribution had seen the most growth compared to other FMCG companies.
“We have been investing ahead of the schedule in growing our rural footprint, increasing it from 1-1.2 lakh to 17,000 villages in the current financial year,” he stated.
Before the pandemic, rural demand had been growing at double the rate of urban areas. However, last year, rural growth either declined or lagged behind urban growth until the December quarter, reaching 5.8%. In contrast, urban areas saw an expansion of 6.8%.
“Rural markets were boosted by a favorable harvest this season and also had a lower base from the previous year,” commented Krishnarao Buddha, Senior Category Head for Marketing at Parle Products, India’s largest food company. “Following price reductions by many firms, we observe major national players reclaiming market share from regional and local competitors, easing concerns, particularly in rural areas.”
Over the past two years, most consumer goods companies increased prices by over 25% to counter the escalation in costs of raw materials, supply chain, and energy. The inflationary pressures began during the pandemic and were further intensified by Russia’s invasion of Ukraine. However, in the last three quarters, companies have been reducing prices due to reduced inflation and consumers shifting to more affordable products.
Companies stated that there has been a gradual overall recovery, with promising signs emerging in rural markets too. However, they emphasize the necessity of observing a longer-term trend to evaluate the sustainability of demand.
“Rural demand has shown some improvement. However, we need to witness consistent growth over several quarters to confirm that demand recovery or green shoots are on the horizon,” commented Sudhir Sitapati, Managing Director at Godrej Consumer Products, in February.
During the year leading up to December, villages, constituting almost 40% of the total FMCG market, experienced a decline in demand ranging from 3% to 5%, attributed to inflationary pressures and an unpredictable monsoon season.
“We are noticing that the growth rate differences between urban and rural areas are decreasing, narrowing from 4-6% to 1%,” stated Roosevelt Dsouza, Head of Customer Success, India, at NielsenIQ.
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