Flipkart revamps increment policy: Pay hikes to roll out in two tranches

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March 22, 2024

Flipkart, a prominent player in the e-commerce industry, has revised its approach to employee increments. This year, instead of the customary pay raises, eligible employees will receive merit-based payouts divided into two installments.

“At Flipkart, we have always prioritised what’s right for both our employees and the organisation at large, and this compensation review cycle is in line with this intention. We are providing compensation increases to employees getting promoted, merit-linked payments and bonus payouts. Additionally, our stock option allocation exercise will continue as is, for those who are eligible,” Flipkart said in a statement.

Mint was the first to break the news on this development.

The one-time adjustment will reportedly be implemented for employees at the mid-management level (Grade 12) and below. Eligible employees will receive two lump-sum payments, in April and October of this year, equivalent to the total annual salary increase they would have otherwise obtained.

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

A Flipkart executive informed The Economic Times that this change will impact approximately 19,000 to 20,000 employees of the company.

Meanwhile, the e-commerce giant will also provide a 100% bonus to its entire staff this year, and promoted employees will receive their usual increments across all grades. For the remaining grades, the company has expanded the allocation of ESOPs to foster wealth creation.

In a letter sent to employees detailing the new compensation structure, CEO Kalyan Krishnamurthy reportedly said, “The company multiplier for the bonus payout is typically arrived at by measuring the company’s performance against key business parameters, which are GMV, contribution margin,… We have decided to keep the 2023 company multiplier at 100% for all employees (including VPs and SVPs).”

Significantly, last year the company had halted salary hikes for one-third of its employees, including senior staff, due to macroeconomic challenges and unfavorable market conditions. Additionally, earlier this year, the company reportedly initiated a workforce reduction of 5-7%, amounting to around 1,000 employees, as part of a performance review process. This downsizing is anticipated to be finalized by April 2024.

Continue Exploring: Walmart-owned Flipkart initiates annual job cuts, targets 5-7% workforce reduction by April

The new policy comes in the midst of significant changes at the e-commerce giant over the past year. In late 2022, Flipkart spun off the digital payments platform PhonePe into a separate entity, subsequently distributing cash payouts totaling $700 million to its employees as part of the demerger.

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

The company has also been exploring opportunities in the quick commerce sector and has been swiftly expanding into new market segments.

Despite receiving a $600 million investment from its parent company Walmart in December 2023, the e-commerce major continues to experience significant losses. Flipkart Internet, its B2C division, reported a net loss of INR 4,026.5 crore in FY23, a 9% decrease from INR 4,419.5 crore in FY22. However, the customer-facing division saw its operating revenue surge by 42% year-on-year (YoY) to INR 14,845.8 crore in FY23.

Continue Exploring: Walmart invests $600 Million in Flipkart as e-commerce giant gears up for $1 Billion funding round

Earlier this month, reports indicated that Flipkart’s valuation had dropped by $5 billion to $35 billion as of the end of January 2024, compared to January 2022, due to the spin-off of PhonePe into a standalone entity.

Continue Exploring: Flipkart’s valuation takes a hit, declines by over INR 41,000 Crore in two years

Zomato renames ‘Pure Veg’ mode to ‘Veg Only’ amid social media backlash

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March 22, 2024

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After facing online backlash citing concerns around community and caste-based discrimination, Zomato has renamed its ‘pure veg’ mode to ‘veg only’ and dropped the plan to have a separate colour-coded fleet for exclusively delivering vegetarian food.

Several users expressed their dissatisfaction on social media with Zomato’s use of the term ‘pure veg’ and the decision to have their delivery staff wear green uniforms instead of the usual red when delivering vegetarian meals.

On Wednesday, Zomato rolled back the green uniforms that the pure-veg food-delivery fleet was earlier supposed to wear.

Continue Exploring: Zomato reverts to red uniforms for all riders amidst social media backlash over ‘Pure Veg Mode’

“Delivery partners onboarded on Zomato will never be discriminated against on the basis of any criteria,” the company said while pointing out that customers cannot select delivery partners based on the drivers’ dietary preferences.

The food delivery platform has assured that the introduction of a separate fleet will not result in any changes or impact the pay-outs for delivery partners. According to a post on X, the “veg-only mode” will be available to users by next week and will be progressively implemented nationwide.

Continue Exploring: Zomato launches dedicated services for vegetarian customers with exclusive ‘Pure Veg Fleet’ and ‘Pure Veg Mode’

In the December quarter, Zomato’s platform boasted an average of 419,000 monthly active delivery partners.

Zomato’s CEO, Deepinder Goyal, stated that the decision to introduce a veg-only mode was made in recognition of India’s status as the country with the largest vegetarian population globally. This initiative aligns with the company’s broader strategy to expand its total addressable market.

Continue Exploring: Swiggy denies any involvement in viral ad taking jibe at Zomato amidst delivery segregation controversy

Epigamia’s sales surpass INR 150 Crore milestone in FY23, sees 24% growth

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March 22, 2024

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Epigamia, a direct-to-consumer (D2C) food and beverage startup, saw its sales cross the INR 150 Crore mark in the financial year ended March 31, 2023. The Mumbai-based startup’s sales stood at INR 168 Crore in the financial year 2022-23 (FY23), reflecting a 24% increase from INR 135.7 Crore in the previous fiscal year.

Established in 2015 by Rohan Mirchandani, Uday Thakker, Ganesh Krishnamoorthy, and Rahul Jain, Epigamia initially began as a Greek yogurt brand. Since its inception, the startup has diversified its product range and now offers a variety of items including smoothies, protein drinks, and desserts.

It markets its products through its website, various e-commerce platforms, and retail stores.

Continue Exploring: Epigamia launches India’s first 25g protein milkshakes with zero sugar

Taking into account additional income, its overall revenue surged by 23%, reaching INR 172 Cr compared to INR 140.4 Cr in FY22.

Nevertheless, the startup experienced a 13% rise in net loss, reaching INR 67 Cr in FY23, up from INR 59.5 Cr in the preceding year.

In FY22, total expenditure surged by 20% to INR 239 Cr from INR 200 Cr.

The startup allocated INR 110 Cr for the acquisition of raw materials, marking a 27% increase from INR 86.8 Cr in the previous year.

During the year under review, Epigamia saw a 22% rise in marketing and advertising expenses, reaching INR 44.2 Cr compared to INR 36.2 Cr in FY22.

Although its sales increased, Epigamia was able to decrease its employee costs by 7% to INR 30 Cr in FY23, down from INR 32.5 Cr in the preceding year.

Continue Exploring: Dairy brand Epigamia focuses on profitability, targets 25% year-on-year growth in FY24

The startup’s most recent funding round took place in 2019, raising $26 Mn during its Series C funding. In total, it has accumulated approximately $60 Mn in funding to date, with support from investors including Verlinvest, Danone Manifesto Ventures, DSG Consumer, Deepika Padukone, and Innoven Capital.

According to a recent report from Moneycontrol, Verlinvest, holding approximately 30% ownership in Epigamia, is considering selling a portion of its stake in the direct-to-consumer (D2C) startup. This exit is expected to coincide with Epigamia’s plans to raise a primary round of funding aimed at expanding its product range into new categories like milkshakes and desserts.

Epigamia competes with Milky Mist, Amul, Mother Dairy, and iD Fresh.

Samara Capital in talks to acquire 50% of Del Monte Foods and minority stake in Godrej Tyson Foods

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March 22, 2024

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Samara Capital, a private equity firm, is currently in talks to purchase a 50% stake in Del Monte Foods, a producer of pasta and sauces, from Bharti Enterprises. Additionally, they are exploring acquiring a minority share in Yummiez, the frozen foods manufacturer owned by Godrej Tyson Foods, according to executives familiar with the situation.

The proposed agreements indicate increasing investor interest in the ready-to-eat packaged foods sector. This interest is driven by the growing demand for convenience and accessibility, which is fueling a preference for Western-style foods even in tier-3 and 4 markets. Furthermore, the expansion of quick commerce and e-commerce is facilitating impulse purchases and broadening market reach. Both potential deals are expected to be part of the new $150 million consolidation platform for packaged foods.

Continue Exploring: SATS launches cutting-edge RTE food facility in Bengaluru as ready-to-eat market booms in India

Samara had established the platform in collaboration with a consortium of investors, which includes Convergent Finance LLP, an investment management and advisory fund.

Continue Exploring: Samara Capital, consortium of investors pool $150M for new packaged foods platform

These tuck-in platforms acquire several firms in the same line of business to enhance product offerings and market access, while benefiting from synergies. Large corporations or private equity firms utilize these platforms to acquire and integrate multiple smaller businesses.

According to the executives mentioned above, negotiations between Samara and Bharti Enterprises for Del Monte are in an advanced stage, while discussions with Godrej Agrovet for the Godrej Tyson Foods stake are in the preliminary phase.

Continue Exploring: Convergent Finance LLP and Samara Capital to acquire 51.8% stake in Agro Tech Foods for $78 Million

Valuations for the proposed deals are still under discussion, according to the sources. In FY23, Godrej Tyson Foods surpassed the INR 1,000-crore sales mark and recorded a profit before tax of INR 13.20 crore, whereas Del Monte Foods generated revenues of INR 536.36 crore but incurred losses of INR 15.2 crore.

As of press time, emails sent to the offices of Samara Capital and Bharti Enterprises had not received responses.

A Godrej Agrovet spokesperson said, “We do not comment on any speculative or forward-looking news or rumours… We do make and shall continue to make adequate disclosures to the stock exchanges as and when required.”

Godrej Tyson Foods is a joint venture with listed Godrej Agrovet holding a 51% stake and US-based Tyson Foods owning 49%.

Jagatjit Industries in advanced talks to secure INR 300 Cr for expansion and debt repayment

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March 22, 2024

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IMFL maker Jagatjit Industries is currently in talks to secure approximately INR 300 crore in an equity deal. This funding is intended to retire its debt and support the company’s expansion plans, as revealed by a top official.

Roshini Sanah Jaiswal, Promoter & Executive Director, Jagatjit Industries said, “We’re looking at raising roughly INR 300 crore. We’ve jumped from massive losses to profits. And now for the next leap, where we focus on premium products and expansion to improve our contribution margins and eventually our bottom line, we need to raise funds.”

She refrained from disclosing details of the current negotiations but mentioned that the deal is anticipated to be finalized in the next few months.

Continue Exploring: Jagatjit Industries Q2 profits soar, marking two-fold growth to INR 2.4 Crore; secures INR 180 Crore loan for ethanol plant expansion

Jaiswal revealed that the company intends to allocate approximately 50% of the funds, roughly INR 150 crore, to settle its existing debt of around INR 160 crore, which will substantially enhance its cash flows.

The remaining 50% of the new funds will be invested in marketing, branding, enhancing the portfolio’s premium offerings, and expanding into both new and existing markets, including Uttar Pradesh, Delhi, Maharashtra, West Bengal, and Telangana.

Regarding its product portfolio, the IMFL maker intends to introduce a premium single malt either by the end of this year or the beginning of next year. At present, Jagatjit generates the majority of its revenue from its mainstream brands, including Royal Pride Whiskey, AC Black Whiskey, King Henry Damn Good Scotch, and iice Vodka.

Continue Exploring: Jagatjit Industries expands premium portfolio with launch of Royal Pride Whisky

Regarding the company’s performance, she mentioned that the brand is on course to achieve revenue between INR 750 – 760 crore by the end of the fiscal year.

“We are on track to reach INR 750 – 760 crore revenue. Last quarter, there was a hit which came largely from commodity pricing for us. However, this quarter, all our numbers should be back on track.”

For the October-December quarter, the liquor brand experienced an 84.58% decrease in revenue, dropping to INR 0.68 crore from INR 4.02 crore in the September quarter.

Continue Exploring: Diageo and AB InBev gear up to navigate liquor sales disruptions during general elections

McDonald’s launches first stand-alone drive-thru store in Ahmedabad

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March 21, 2024

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McDonald’s, a US-based fast-food chain, has launched its first stand-alone drive-through store in Ahmedabad, as announced by a company official on social media. The outlet is located at Zundal-Vaishnodevi Circle Road on SP Ring Road.

“Happy to announce the launch of Ahmedabad’s first free-standing drive-thru McDonald’s at Zundal- Vaishnodevi Circle Road on SP ring road Ahmedabad,” Gaurav Singh Panwar, deputy manager – real estate at McDonald’s India said in a LinkedIn post.

Spanning across 3,510 square feet of space, the establishment also features McCafe, a cafe chain owned by McDonald’s, as well as McDelivery services.

Continue Exploring: McDonald’s launches India’s first 24×7 airport drive-thru outlet in Mumbai

“This launch not only showcases McDonald’s commitment to serving our customers better but also contributes to the growth and development of Ahmedabad’s real estate sector. The drive-thru model offers a unique dining experience that is bound to increase footfall and create a dynamic environment for businesses in the area,” added Panwar.

McDonald’s drive-thru restaurants offer amenities including a digital order display, orders fulfilled within 120 seconds, and self-ordering kiosks (SOK).

The first McDonald’s drive-thru in India was established in 2001 at Kalamboli, Navi Mumbai.

The QSR-chain is dedicated to constructing drive-thru destination stores throughout city suburbs and national highways. It is anticipated that 30-35% of new stores in the next 4-5 years will likely feature drive-thrus.

Continue Exploring: McDonald’s India North and East regions tap into ONDC network for greater reach

Hardcastle Restaurants, a subsidiary of Westlife Foodworld Ltd., oversees the ownership and operation of McDonald’s restaurants throughout West and South India. Holding a master franchisee arrangement with McDonald’s Corporation USA, it has upheld the brand’s stewardship since 1996.

The company operates across diverse formats and brand extensions, encompassing standalone restaurants, drive-thrus, 24/7 outlets, McDelivery services, McBreakfast offerings, and dessert kiosks.

As of June 2023, McDonald’s has a presence in more than 361 restaurants spanning 58 cities throughout West and South India.

Continue Exploring: Maharashtra launches statewide fast-food chain inspections after McDonald’s cheese controversy

Rising Yellow Peas imports from Russia and Canada stabilize Chana and Tur prices in India

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March 21, 2024

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The rising imports of yellow peas from Russia and Canada, hitting their highest levels in the last six years, have served to stabilize domestic prices of chana and tur dal. This increase in imports has effectively replaced expensive pulses in sectors such as the snack food industry, hotels and restaurants, street food joints, and the pulses processing industry.

In December, the center permitted duty-free imports of yellow peas amidst a strong bullish trend in prices for the two kitchen staples.

“Import of yellow peas has proved to be a game changer for the pulses market as it has increased the availability of cheaper pulses,” said Harsha Rai, partner, Mayur Global.

“Yellow peas, in various forms such as besan (chickpea flour) and whole peas or splits, are an everyday use commodity. They are not only a staple in street food but also a key ingredient in the rapidly growing snack food industry,” she said.

Continue Exploring: Tur dal prices surge by 5% despite arrival of new crops and ongoing imports

A significant volume of yellow peas imported has already entered the distribution network.

“At INR 42/kg, yellow peas are currently the cheapest pulse available in the market. Around 600,000 tonnes have already been imported while another 900,000 to 1 million tonnes are expected to arrive by June,” said Vivek Agarwal, a Maharashtra-based importer of pulses.

Industry executives have stated that yellow peas, whether directly or indirectly, have assisted in alleviating the demand for other pulses, which are currently scarce.

Tur dal has maintained a retail price of at least INR 200/kg for quite some time now. Traders have observed a reduction in demand at such high prices. Despite not being a direct substitute, yellow peas have played a role in indirectly easing the demand for tur dal.

Continue Exploring: Chana Dal goes affordable with the launch of government’s ‘Bharat Dal’ brand

“Many processors have shifted from other pulses to processing of yellow peas to keep their plants running. Some traders have also shifted away from other pulses to yellow peas, which helped in indirectly reducing the demand for other pulses,” said Rai.

In contrast to African tur dal and lentils, which are only accepted in certain regions of the country, yellow peas are consumed throughout all parts of the nation, particularly as a substitute for chana in out-of-home and snack consumption.

The erratic monsoons experienced last year raised concerns regarding the rabi harvest of chana, prompting the government to lift the restriction on the minimum import price (MIP). Currently, duty-free imports of yellow peas are permitted until April 30th.

Industry experts are monitoring how the arrival of the new crop of chana in the coming weeks influences the government’s decision to extend duty-free import of yellow peas beyond April 30.

Continue Exploring: India mulls extending duty-free imports of yellow peas beyond April

Apparel Group’s fashion brand R&B opens second store in Kochi, further expanding its presence

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March 21, 2024

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Rare and Basics (R&B), the fashion brand owned by retail conglomerate Apparel Group, has opened its second store in Kochi, as announced by an industry official on social media. Located at LuLu Mall, Edappally, it now stands as the 19th R&B outlet across the country.

“Happy to announce that R&B store opened in Lulu mall, Kochi last week,” said Pradosh Neelakandan, manager – retail design and delivery at Lulu Group International in a LinkedIn post.

Kochi’s first R&B outlet is located at Centre Square Mall, Rajaji Junction, and was inaugurated in August 2023.

R&B stores offer a variety of Western clothing options for men, women, and children.

In India, the brand currently has a presence in cities like Kozhikode, Kochi, Ahmedabad, Hyderabad, Bengaluru, Mangalore, and Mysore.

Continue Exploring: Apparel Group’s R&B expands footprint with new Bengaluru store, marking 18th outlet in India

Apparel Group launched R&B in October 2012, debuting its first retail store at Muscat Grand Mall in Oman. The company has since expanded its presence, now operating over 70 stores across seven countries, including India, Oman, UAE, Qatar, Bahrain, Kuwait, and Saudi Arabia.

UAE-based Apparel Group manages over 2025 retail stores and represents more than 80 brands across all platforms, employing over 20,000 multicultural staff. Among the brands it oversees are Aldo, Bath & Body Works, Tim Hortons, Tommy Hilfiger, Nine West, it Spring, Charles & Keith, Inglot, La Senza, Beverly Hills Polo Club, and Victoria’s Secret.

The company has established a strong presence in the GCC region and has successfully expanded into vibrant markets in India, South Africa, Singapore, Indonesia, Thailand, Malaysia, and Egypt. Moreover, it has devised strategies to enter emerging markets like Hungary and the Philippines.

Continue Exploring: Apparel Group unveils 15th R&B store in Bengaluru, driving expansion in India

Kolkata-based Bisk Farm eyes expansion: Plans to acquire regional brands, targeting national market share growth

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March 21, 2024

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Bisk Farm, a Kolkata-based biscuit and packaged snack company, is actively exploring the possibility of acquiring regional brands in the West and South regions to enhance its distribution capabilities and increase brand presence, according to managing director Vijay Singh.

He mentioned that the company is eyeing companies with a size of INR 500 crore or more in related sectors such as impulse food, confectionery, instant snacking, and western snacks.

“Acquisition is part of our strategy to expand our presence nationally. At present, around 80% of our revenue comes from the East. We would want to change the mix with national expansion whereby East share should come down to 50% in next five years,” said Singh.

Continue Exploring: Bisk Farm taps actress Rashmika Mandanna as brand ambassador, eyes Southern India market

Bisk Farm is under the ownership of Saj Food Products. According to the company, it holds the position of the fourth largest player in the national biscuit market, in terms of both volume and value sales, trailing behind Parle, Britannia, and ITC. In the Eastern region, Bisk Farm ranks second, following Britannia. Singh aims to elevate Bisk Farm to the third position nationally within the span of five years.

“Between 2018 to 2023, we doubled our turnover. Our next five-year strategy is to expand revenue from INR 2,000 crore to INR 5,000 crore and that too through organic growth. We are upscaling distribution pan India, setting up manufacturing plants, hiring right professionals to drive this vision and increasing our advertising and promotion spending. Once we reach the revenue milestone, we may get listed in the stock exchanges through an initial public offering,” said Singh.

The company has enlisted the expertise of numerous senior FMCG industry professionals, including Sunil Duggal, former CEO of Dabur, to steer its transition into a national player. It has established manufacturing facilities in Maharashtra, Bengaluru, and Nagpur, with plans underway to inaugurate a new plant in Guwahati next year. Following that, an additional unit in the North may be established, potentially through an exclusive contract manufacturing arrangement. The Guwahati plant is projected to require an investment of INR 200 crore.

Continue Exploring: Kolkata-based SAJ Food Products sets ambitious INR 5,000 Crore revenue target by FY29, considers public listing

D2C men’s fashion brand Snitch unveils fourth flagship store in Bangalore

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March 21, 2024

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Snitch, a prominent direct-to-consumer (D2C) men’s lifestyle brand, announces the opening of its fourth consecutive store in Brigade Road, Bangalore. This move underscores the brand’s commitment to expanding into offline retail. Spanning 4000 sq/ft, the new store aims to redefine the shopping experience for customers in Bangalore, adding a fresh dimension to the city’s vibrant retail landscape.

Set for inauguration on March 22nd, 2024, this debut marks a noteworthy moment for Snitch, building on the accomplishments of its recent store openings in Surat and Bangalore within the preceding two months. With ambitions to fortify its retail footprint in major metropolitan regions, the company is targeting the establishment of 30-40 additional stores over the next two years.

Continue Exploring: D2C men’s fashion brand Snitch set to unveil third store in Surat, eyes aggressive expansion in Gujarat

Siddharth Dungarwal, Founder and CEO, Snitch stated, “Our target is to enhance the offline retail experience for our customers and make a deep dive into customers’ choices and preferences. Our offline retail growth is certainly intended to help our customers have first-hand experience/touch and feel of the products, learn and experience new lifestyle trends, and witness a personal experience with the brand to make the best of choice purchases.

“Bangalore is one of the highly increasing retail and fashion markets. The reason for opening our new outlet in this vibrant neighbourhood is because it has everything, from incredible shopping experiences from an array of trendy boutiques, bustling street markets, and high-end stores to mouthwatering culinary delights and nightlife, making it one of the best Bangalore sightseeing. With the launch of our second store in Bangalore we aim to raise the convenience of accessing premium lifestyle and trends for our customers in Bangalore.”

As Snitch charts its course of growth and expansion, the latest store embodies the brand’s commitment to style, innovation, and customer-centric values. Offering a diverse array of products, exclusive deals, and an invigorating shopping atmosphere, patrons can anticipate nothing less than an exceptional retail venture at Snitch.

Continue Exploring: D2C men’s fashion brand Snitch hits INR 400 Crore GMV milestone, targets INR 600 Crore by 2024

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