Budget supermarket chain Vishal Mega Mart to go public with $1 Billion offering

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March 12, 2024

Vishal Mega Mart, a budget supermarket chain, is reportedly planning a $1 billion initial public offering, which could value the company at up to $5 billion. Some of the proceeds are expected to be earmarked for expanding its store network.

As per a Reuters report citing sources, Partners Group of Switzerland and India’s Kedaara Capital, which hold a majority stake in Vishal Mega Mart, are anticipated to offload shares in the offering. The exact extent of ownership by these equity firms in Vishal Mega Mart, as well as their anticipated sell-off and retention amounts, remains unclear. Partners Group and Kedaara acquired Vishal Mega Mart for around $350 million in 2018 from rival buyout firms TPG and Shriram Group.

Vishal Mega Mart, predominantly situated in smaller urban centers, operates 560 stores offering a variety of clothing and grocery products.

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Insiders informed the news agency that investment banks have been invited to present proposals for the IPO this week, with expectations for the offering to occur later in the year.

According to a report by India Ratings, Vishal Mega Mart saw a 36% increase in revenue to $917 million in its last financial year ended March 2023, while net profit surged by 60%.

Vishal Mega Mart offers a wide range of products, such as clothing, home appliances, luggage, and groceries, all at affordable prices. For example, customers can purchase a T-shirt for as little as INR 99 and jeans for under INR 800. Approximately half of its sales come from clothing.

Reports of Vishal Mega Mart’s IPO comes at a time when the Indian stock markets are trading near record highs and the benchmark NIFTY index has climbed 12 per cent over the last six months. IPO activity is expected to gain pace amid the country’s rapid economic growth and a stable political environment.

Rasna sets sights on global manufacturing with overseas franchise deals

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March 12, 2024

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Rasna, a household name throughout the 80s and 90s, continues to dominate the pre-mix market and is now exploring overseas franchise agreements for manufacturing abroad.

Under this agreement, the franchisee will be responsible for investing in the plant and machinery, as well as managing day-to-day operations. Rasna will provide the pre-mix, technical expertise, and partial financial assistance. Additionally, Rasna will oversee quality control, handle marketing initiatives, and manage distribution channels.

Piruz Khambatta, Rasna Group chairman, said, “We already have 3 to 4 arrangements and we are searching for more.”

Such arrangements are currently established in Bangladesh and Nepal.

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Negotiations for franchise agreements were underway for Egypt, Indonesia, and the Philippines. Factors such as market size, rising logistics costs, and high duties were driving the interest in these arrangements.

Approximately 30-35 percent of Rasna’s sales currently stem from exports, with plans to increase this share to 50 percent within the next few years.

Rasna is currently distributed in 60 countries worldwide.

Khambatta expects the export division to clock in a 30-35 per cent year-on-year (YoY) growth in volumes in FY24. “We could have done much better but the whole year has been full of supply chain disruptions partly because of the wars and the Red Sea crisis.”

Domestically, the growth is expected to reach approximately 20 percent. The soft drink manufacturer has enlisted actress Tamannaah Bhatia as its new brand ambassador.

However, similar to other consumer-facing companies, Rasna has been facing challenges in increasing its sales in rural areas for some time now.

Khambatta said, “Last summer, rural growth didn’t pick up.”

While March was “very good”, April, May and June lagged. Diwali was also a “little pale,” he added.

Nonetheless, the Chairman of the Rasna Group expressed optimism regarding the rural segment for the upcoming fiscal year (FY25), anticipating an uptick due to the implementation of incentives during an election year.

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Roughly 20-25 percent of Rasna’s sales originate from rural areas. Khambatta noted that individuals from rural regions also place orders in urban centers. He emphasized that the rural sector serves as a growth catalyst.

“India is very unique; our growth propensity depends on the rural masses,” Khambatta pointed out.

Rasna adopts a three-pronged strategy for growth. On one front, it targets the masses; on another, it competes with startups in the direct-to-consumer (D2C) sector with higher-margin products, while exports serve as another avenue for growth.

In terms of exports, Rasna has met the criteria for the government’s Production Linked Incentive (PLI) scheme, specifically aimed at branding and marketing efforts overseas.

Moreover, Khambatta is optimistic that if the global situation improves, there could be a 50 percent increase in exports.

Startup Mahakumbh to showcase India’s agritech potential with exclusive pavilion and key industry insights

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March 12, 2024

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With the goal of fostering India’s entrepreneurial spirit and uniting key players, industry body ASSOCHAM, in collaboration with Nasscom, Bootstrap Incubation & Advisory Foundation, TiE, and Indian Venture and Alternate Capital Association (IVCA), will host Startup Mahakumbh from March 18-20 in New Delhi.

The one-of-a-kind event will see the participation of over 1,000 high-growth startups, unicorns, domestic and global venture capitalists, and other stakeholders. Additionally, it will showcase more than 10 sector-specific pavilions, highlighting India’s most innovative startups.

Meticulously selected, these pavilions will showcase cutting-edge advancements and industry insights across various fields. One particularly important pavilion will highlight the innovations and achievements of the agritech sector, crucial for modernizing the country’s agriculture.

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As per the World Economic Forum, India’s agritech sector has experienced a remarkable surge in recent years, with startups increasing from 43 in 2013 to over 1,000 in 2020. Acknowledging this growth, the agritech pavilion will host engaging discussions on India’s agritech potential, including a fireside chat featuring Mohandas Pai, Chairman of Aarin Capital Partners, and Dr. Vaibhav Tidke, Co-founder and CEO of S4S Technologies.

“The importance of the agritech pavilion is in realising what agritech startups can do for the farmers. The aim is to help the farmers transcend into the role of micro-entrepreneurs. Agritech startups will also work to decode the engagement with farmers at a social and cultural level,” said Vineet Rai, founder and chairman of Aavishkaar Group, executive member of IVCA and the lead for agritech pavillion.

Moreover, the pavilion will organize inspiring keynotes, panel discussions, and an exclusive award ceremony dedicated to promising ventures.

Attendees can anticipate one-on-one mentoring sessions, masterclasses, live pitches, deal rooms, and unicorn roundtables aimed at facilitating the exchange of ideas and networking. Spearheaded by the Aavishkaar Group, the pavilion will also exhibit exhibition pods highlighting startups at the forefront of agricultural innovation.

“We’re excited to participate in Startup Mahakumbh,” said Rai, “The ‘Bharat Innovates’ theme embodies the link between innovation and startups. As host and pavilion lead, we’ll bring key partners, visionaries, and promising enterprises, weaving a rich tapestry of insights, ideas, and investments. It will showcase the latest advancements, disruptive technologies, and opportunities reshaping agriculture’s future,” he added.

Nabard, India’s leading development bank focused on sustainable and equitable agriculture and rural development, will serve as a key partner and sponsor of the agritech pavilion. This partnership underscores Nabard’s commitment to fostering innovation and advancement in the agritech sector. Within the pavilion, Nabard will introduce a curated group of startups, demonstrating the vibrant potential within India’s agricultural startup ecosystem.

“Significant interventions need to be made to make the supply of farm inputs seamless and create more value. There is also a pressing need to look into the post-harvest aspect and how the food makes it from the farm to the fork. Innovations in branding, food processing and fintech aspects are also important. Farmers should be made an intrinsic part of the food processing industry so they flourish as micro-entrepreneurs,” said Rai.

Continue Exploring: Agritech startup Fasal secures $12 Million in funding round led by TDK Ventures, British International Investment

Fabled Pet Food enters Venezuelan market, catering to growing demand for premium pet nutrition

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March 12, 2024

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Fabled Pet Food has announced its entry into the dynamic Venezuelan market, marking a significant milestone in the company’s global expansion journey. Recognizing the increasing demand for high-quality pet nutrition in urban areas, Fabled has meticulously tailored its approach to meet the specific needs of Venezuelan pets and their devoted owners.

The decision to expand into Venezuela is aligned with the global trend of urban living, extending to beloved pets. With an increasing population of working pet parents seeking top-tier nutrition for their furry companions, Venezuela naturally became a strategic destination for Fabled Pet Food’s expansion.

The distribution strategy integrates both online and offline channels to efficiently engage the target audience. Approximately 15 percent of sales are generated through leading online platforms like Mercadolibre and Pedidos Ya, with the remaining 85 percent facilitated through a network of strategically positioned physical stores nationwide. Partnering with influential figures such as @punkypartners, a renowned dog influencer in Venezuela, amplifies the brand’s presence and interaction within the local pet community. Through collaborative endeavors and customized marketing campaigns, the brand endeavors to empower pet owners to make informed decisions regarding their pet’s nutrition and overall welfare.

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Prateek Raj Singh, Co-Founder, Fabled Pet Foods, said, “Creating a meaningful bond between pets and their owners through an urban lifestyle appropriate diet is not just our goal; it’s our passion. At Fabled Pet Foods, we believe in nurturing the health and happiness of every urban pet, one empty bowl at a time.”

Having established a robust presence in more than 100 retail outlets and prominent pet e-commerce platforms like Supertails in India, alongside its online availability via Amazon India, Fabled Pet Food has emerged as a symbol of excellence and ingenuity. Moving forward, Fabled Pet Food is dedicated to broadening its reach across various regions, with a particular emphasis on South Asian and South American territories. Colombia stands out as the next focal market, offering abundant prospects for expansion and influence.

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Swiss Beauty eyes tier 2 and smart cities for retail expansion, plans to double outlets

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March 12, 2024

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Swiss Beauty, a prominent colour cosmetics brand, has revealed plans to expand its retail presence, with a goal to double its exclusive brand outlets in 12 Indian cities by the end of the 2024-25 fiscal year. With a current network comprising 25,500 retail touch points across over 550 cities, the brand aims to elevate this number to 30,000 by extending into tier 2 and smart cities, as stated by Swiss Beauty in a recent announcement.

The brand aims to double its Exclusive Brand Outlets (EBOs) across 12 Indian cities by March 2024-25, reaching a total of 24 outlets. Additionally, it intends to inaugurate 147 beauty-assisted outlets throughout India and expand its presence by over 450 touch points in general trade during the 2024-25 period, according to the statement.

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It has established its presence in cities such as Chandigarh, Udaipur, Lucknow, Pune, Kolkata, Surat, Bengaluru, Bhopal, and Amritsar.

“Since 60 per cent of our revenue comes from offline markets, we are geared up to go stronger on expanding our retail touch points in the next 12 months adding new locations to an already present robust network of over 25,500 touch points and reaching it to 30,000,” Swiss Beauty CEO Saahil Nayar said.

Further, he said, “Around 40 per cent of our business comes from tier 2 and smart cities, and we intend to expand our presence in these regions.”

Nayar, however, did not disclose the overall business volume or revenue.

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Sinq Beverages targets Uttar Pradesh market with the launch of Bad Monkey Beer

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March 12, 2024

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Bad Monkey Beer, produced by Sinq Beverages, a renowned Indian brewery, has made its debut in Uttar Pradesh. Available at INR 130 per 500 ml can, this brew boasts a potent flavor profile, boasting an alcohol by volume (ABV) of up to 8%.

Founded in July 2018, Bad Monkey Beer is set to join the thriving beer market of Uttar Pradesh as a fresh contender.

“Uttar Pradesh is a crucial market for us. With our success in Delhi, Jharkhand, and other states, we are confident that Bad Monkey Beer will appeal to the discerning palates of beer consumers in Uttar Pradesh,” said Rohan Khare, Founder of Sinq Beverage Pvt Ltd.

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According to the brand, its beer is brewed using pure water sourced from the Himalayas, along with barley and hops. It comes in two variations: strong and tamed.

Already popular across India, including Delhi, Punjab, Chandigarh, Jharkhand, Daman Diu, and Silvassa, the brand also exports to Australia, New Zealand, and Middle Eastern countries.

According to Statista, India’s beer market is steadily growing, projected to experience an annual growth rate of 5.94% from 2023 to 2028. In 2023, the market generated USD 11.6 billion in revenue, with expectations to reach USD 23.45 billion by 2029.

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LehLah and Athiya Shetty launch ‘Your Closet’ campaign, offering exclusive access to star’s fashion picks

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March 12, 2024

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LehLah, a fashion-tech platform, has teamed up with Bollywood star Athiya Shetty to introduce the ‘Your Closet’ campaign.

The campaign will showcase select pieces from Shetty’s personal wardrobe exclusively on its app, providing users with access.

Building on the collaboration, LehLah has introduced another campaign starring Shetty. In the video, she extends a personal invitation to users to explore her carefully curated collection.

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“Collaborating with Athiya has been an absolute joy. Her innate sense of style and commitment to empowering others aligns perfectly with LehLah’s ethos. Together, we are not just offering fashion; we’re fostering a community of self-expression and support, all while contributing to a cause close to our hearts.” said Ashna Ruia, founder of LehLah.

The proceeds from the collaboration will go towards the Vipla Foundation, furthering its mission of empowering women and children.

“I am thrilled to share a part of my personal style journey with everyone through LehLah. Fashion is not just about what you wear, but how it makes you feel, and I hope my pre-loved fashion collection inspires confidence and individuality in all who explore it on the app,” said Shetty.

Launched in November 2022, LehLah is a consumer-focused fashion tech app tailored to help creators post their curated looks and tag every product with shoppable links to LehLah’s partner brands. This feature enables consumers to shop tagged products from the creator’s content directly with a single click.

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The Body Shop files for bankruptcy: US operations shut down, Canadian stores to follow suit

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March 12, 2024

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The UK-based cosmetics company, The Body Shop, shut down all of its US-based operations and will soon be closing dozens of Canadian store locations after filing for bankruptcy, CNN reported.

Earlier this month, The Body Shop, in an official release, announced that its US subsidiary was no longer operational, effective March 1.

It further added that 33 of its 105 stores in Canada will begin liquidation sales immediately and “online sales via Canada’s e-commerce store will stop,” but that all Canadian locations will remain open for the time being, reported CNN.

According to reports, high inflation in recent years has affected traditional retailers, particularly those like The Body Shop, which predominantly operated out of malls and were aimed at the middle class.

The UK-based cosmetics company, founded in 1976 by human rights activist and environmental campaigner Anita Roddick, is known for products it markets as natural, sustainable, ethical and cruelty-free.

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It was one of the first companies to prohibit testing on animals for many of its products, according to CNN.

Later in 2019, it was certified as a “B Corp,” a designation given to companies that meet certain transparency and environmental conscientiousness standards.

By 2023, it had expanded to more than 2,500 retail locations in over 80 countries and was available to purchase online in more than 60 markets.

Since its inception, The Body Shop has changed hands several times. It was purchased by cosmetics giant L’Oreal in 2006 for more than a billion dollars and later sold to Brazilian company Natura in 2017 for another billion dollars, reported CNN.

However, the brand fell into hard times and has been ailing in recent years.

In an early 2023 report, Natura noted that The Body Shop was “(facing) headwinds,” with a year-over-year decline of 13.5 per cent in 2022, a year the company said “was far from easy” for the brand. Its direct-to-consumer channels, which had “benefitted during Covid-19,” returned to “more normalized pre-pandemic levels,” further impacting sales numbers, Natura said.

Moreover, late last year, The Body Shop was sold to asset management group Aurelius for about USD 266 million, as reported by CNN.

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Elista ventures into refrigerator market with 6 budget-friendly, energy-efficient models

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March 12, 2024

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Elista, a leading Indian manufacturer specializing in electronics, home appliances, IT, and mobile accessories, has entered the refrigerator market with the introduction of a new line-up of Single-door refrigerators. Priced starting at INR 23,999, the new line-up includes six cutting-edge refrigerators, offering capacities ranging from 190 to 230 litres and energy efficiency ratings from 1-star to 4-star, designed to withstand the intense summer heat.

Elista’s strategic entry into the refrigerator market aligns seamlessly with the rapid expansion of India’s refrigerator sector, projected to surge at a Compound Annual Growth Rate (CAGR) of 10.2% from 2023 to 2031. This timely expansion positions Elista to drive significant growth, setting new benchmarks for innovation and customer satisfaction. With a focus on affordability and longer lifecycle, Elista’s energy-efficient refrigerators offer a 10-year warranty on the compressor and a 1-year comprehensive warranty for long-term, hassle-free performance.

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Commenting on the launch, Pawan Kumar, CEO of Elista, said, “The launch of Elista Refrigerators underscores our commitment to delivering segment-leading technology products at versatile price points, serving as a testament to Elista’s profound understanding of the diverse needs of Indian consumers. Proudly manufactured under the ‘Make in India’ initiative, the refrigerators are equipped with cutting-edge features to exceed consumer expectations. We are optimistic that our first refrigerator line-up will achieve the same level of success that our Smart TV range has enjoyed in the Indian market. We are anticipating that this launch will be pivotal in achieving the domestic revenue target of INR 500 crore from the nation-wide sale by the end of the year 2025.”

Elista’s refrigerators, customized for India’s climate, uphold a freezer temperature of -19±1°C to ensure optimal freshness, while incorporating convenient features such as defrost indicators, child locks, and thermostat controls. Available in solid, glittery, and glossy finishes, these refrigerators provide a diverse range of options, from minimalist door designs to premium graphics, each model uniquely crafted to enhance your kitchen’s ambiance. These products epitomize a flawless fusion of cutting-edge innovation and technological advancements, poised to revolutionize indoor cooling experiences for consumers.

The ‘Glass door range’ (Model- EW 2053FR) offers options with a 4-star rating, equipped with a copper suction tube and semi-auto defrost type. This range presents eco-friendly attributes such as fast-cooling, anti-fungal door gasket, nano health care, and rust-resistant metal parts. Incorporating a Humidity Knob to combat interior humidity, these refrigerators extend the shelf life of food items by preserving their freshness. Additionally, the curved clean back design safeguards the condenser tubing, significantly enhancing the appliance’s durability. Internally, these refrigerators feature glass shelves for added elegance, accompanied by a soft crisper basket and bottle separators for easy maintenance and cleanliness. With a reciprocating compressor and overload protector, these refrigerators ensure a seamless and superior user experience.

Elista maintains an extensive network of over 400 distributors nationwide. The latest range of Elista refrigerators is available via the company’s website, online platforms, and offline channels, spanning over 20,000 outlets throughout India.

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Luxury shoe brand Santoni to invest INR 15 Crore in expansion, eyes two new stores in India

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March 12, 2024

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Santoni, the high-end footwear label that made its debut in India through a collaboration with Luxerati Retail Pvt Ltd. in 2018, is gearing up to allocate INR 15 crore for the establishment of two additional stores in the country, as stated by Sanjay Kataria, the managing director of Luxerati Retail Pvt Ltd.

The Italian brand, which opened its first store at DLF Emporio, plans to open its next store in Mumbai this year and in either Hyderabad or Bengaluru over the next 2-3 years.

“This is the right time to open our next store as we have observed 15 per cent year-on-year growth and 60-70 per cent new customers coming in monthly. Apart from this, we have also been getting queries from other parts of the country like Mumbai and Hyderabad,” he stated.

“Currently, the sales in Mumbai maybe 70 per cent of what we do in Delhi, but I’m the growth is much more now. So hopefully it should be equivalent to Delhi in times to come,” he further added.

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The store in Delhi spans across an area of 800 square feet, and going forward, the brand will be opening stores across 800-1,000 square feet.

Until the last fiscal year, women’s wear accounted for 10 percent of the brand’s revenue, with the remaining 90 percent attributed to men’s wear.

“However, the ratio has changed to 30:70. At present, the net profitability of the brand stands at 15 per cent and we aim to scale it to 20 per cent by focusing on three aspects of the collection now, women’s, sneakers, and bespoke,” he asserted.

“We are also planning to expand the online presence of the brand in India. We will be mentioning the products and their price only for reference purposes. We won’t be linking it to the payment gateway right now and we have no plans to maintain separate stock for online shopping yet,” he further added.

The brand, aiming to reach INR 7.75 crore by the end of this fiscal year, targets revenue of INR 10 crore from the Delhi store and INR 3 crore from the Mumbai store by the following fiscal year’s end, over the span of the next two years.

“Currently, at Luxerati Retail, we have no plans to introduce any other luxury fashion brand here in India,” he concluded.

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