From scoops to sundaes: Ice cream sales set to soar 15-20% this summer

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March 7, 2024

Sales of ice creams and dairy products are set to see a notable uptick this summer, with a projected 15-20% increase on the horizon owing to expected above-normal temperatures. Consequently, companies are preparing for a potential exponential surge in sales.

Consumers may not need to pay more to enjoy their favorite ice cream and dairy product brands, as milk procurement prices have fallen and dairies have surplus stocks.

The India Meteorological Department (IMD) predicts higher-than-average summer temperatures this year, accompanied by an increase in the number of heat-wave days. This has led to a surge in demand for leading ice-cream brands.

Continue Exploring: Ice cream sales soar in Gujarat as summer cravings kick in early: Anticipated to break records this season

“Summer is the most anticipated season for our business, especially for categories like ice creams, curd and beverages. We are expecting exponential growth in demand for dairy products in the coming months. Over the last 15 days, ice creams alone have witnessed a significant surge in demand versus the same period last year,” said Manish Bandlish, managing director, Mother Dairy.

‘Amul‘, the renowned dairy product brand under the Gujarat Cooperative Milk Marketing Federation (GCMMF), commanding over 50% of India’s ice cream market, anticipates maintaining its strong sales momentum through the upcoming summer season.

“We have already seen a growth of 25% to 30% in the ice cream segment in the FY24. The growth in ice cream sales in the summer of 2024 is expected to be 30-40% more than last year’s summer season sale,” said Jayen Mehta, managing director, GCMMF.

Businesses have also allocated funds for expanding their capacity and launching new products to cater to the anticipated increase in demand.

“We are fully prepared to match this growing demand and have already augmented our production capacities as well as our distribution infrastructure. As we get into the season, we are all geared up to excite consumers with our delightful offerings of over 30 new products. Overall, we are confident of delivering robust growth in our dairy products portfolio this year,” said Bandlish.

Meanwhile, decreased raw material costs and abundant stocks may enable dairy companies to control production expenses and refrain from hiking product prices. Milk prices have remained consistent over the year, with a decline noted in Maharashtra, one of the leading milk-producing states.

“The dairy companies are offering various schemes to increase ice cream sales. Prices of dairy products are not likely to increase much as milk prices have not increased during this year,” said RS Sodhi, president, Indian Dairy Association.

“The demand is also expected to be more, which can lead to an increase in the overall summer season sale of dairy products by at least 15% to 20% over the previous year,” he said.

Continue Exploring: Amul’s first Ice Lounge in Northern India opens in Lucknow, bringing exotic ice creams from around the globe

ITC’s emphasis on premium products propels personal care business, doubles sales contribution to 38%

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March 7, 2024

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Premium products in the personal care business at ITC have seen a significant surge in contribution to sales, doubling in the last four years to 38%, as highlighted by Sameer Satpathy, the divisional chief executive for the business. Moreover, these premium offerings account for about two-thirds of all the new products launched in the past two years, indicating a strategic emphasis on premiumization within the sector.

According to analysts, the emphasis on premium products has not only aided ITC in achieving break-even in the personal care sector but has also led to consistent quarterly profits in the business.

While Satpathy declined to comment directly on this matter, he noted that the emphasis on premiumization has positively affected the bottom line by enhancing margins.

“Premium products sales have moved up exponentially from pre-pandemic period and doubled to around 38% of our sales. With growing opportunities in the Indian market, we will continue to strengthen our focus on premiumisation. Companies with capabilities to marry technology, innovation, supply chains and sustainability concerns together will gain much more in premium play,” said Satpathy.

Continue Exploring: Shift in Indian beauty market: Fairness creams witness first decline as demand swells for radiance and hydration products

He mentioned that 65% of the recent personal care product introductions belonged to the premium category, contributing to doubling the segment’s prominence from pre-pandemic levels.

Through this business, ITC operates in categories such as body wash, deodorant, skincare, and floor cleanser, constituting the second crucial element of its strategy to expand the non-cigarette fast-moving consumer goods (FMCG) segment. However, the foods business remains the primary revenue and profit driver within ITC’s non-cigarette FMCG business, boasting market leadership across various categories.

ITC holds the position of the second largest player in the shower gel and women’s deodorant segments within the personal care business. Additionally, its herbal floor cleanser has emerged as the market leader in certain regions like the East. In the October-December quarter, ITC saw a year-on-year expansion of 100 basis points in the EBITDA margins of its non-cigarette FMCG business, reaching 11%. Despite facing challenges such as high input costs and subdued demand, ITC has witnessed an upward trend in EBITDA over the past few quarters.

“Non-cigarette FMCG segment Ebitda margin stood at 11% backed by premiumisation, supply chain optimisation, cost management, digital initiatives and judicious pricing actions,” BNP Paribas said in a recent report.

Satpathy mentioned that premium consumers became more consolidated during the pandemic, especially with the emergence of numerous digital channels.

“We jumped a decade as far as digitalisation is concerned. This boosted sales of premium brands and larger packs since such consumers tend to consume more. The cherry on the cake has been quick commerce,” he said.

ITC has downsized its mass-market brand Superia, primarily operating in the soaps segment, due to its limited market share and low margins. The brand is currently available in select rural markets such as the Hindi heartland and Odisha.

Continue Exploring: ITC sees untapped market potential for YiPPee! Noodles, aims for further growth in the North region

Parineeti Chopra-backed personal care startup Clensta hits INR 100 Crore annual run rate, aims for INR 1,000 Crore milestone in three years

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March 7, 2024

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Clensta, a personal care products start-up backed by actress Parineeti Chopra, has reached an annual run rate (ARR) of INR 100 crore in FY24, as reported by company executives on Wednesday. They anticipate this figure to soar to INR 1,000 crore within the next three years.

Puneet Gupta, the founder of Clensta, mentioned that the brand is currently focusing on further penetrating its presence in its existing 57 cities through same-store, same-city growth strategies. Additionally, Gupta highlighted Clensta’s efforts in expanding its global reach through strategic partnerships with prominent players such as the Lulu group in the GCC and UAE, as well as Carrefour in Africa.

Actor-turned-entrepreneur Chopra invested in the sustainable personal care products maker last year, acquiring a minority stake in the company. This direct-to-consumer player sells a range of personal care products, with some utilizing waterless technology.

Continue Exploring: Clensta secures funding boost as Parineeti Chopra backs the sustainable personal care startup

The startup further unveiled the second phase of its Buy1Give1 initiative. For every Clensta product purchased, the company pledges to donate one bottle of drinking water to the underprivileged. This endeavor aligns with their commitment to “ensuring water security for all.

Last year, Clensta secured INR 75 crore in a pre-Series B funding round, spearheaded by TradeCred and co-led by the Royal Family of the UAE and Chopra, among other investors.

The Gurgaon-headquartered company was founded in 2016 by Gupta and began selling the products three years later. In addition to its own platform, Clensta sells its products through ecommerce channels as well as in offline chains including Health and Glow and Tata 1 MG.

Continue Exploring: Clensta taps JM Financial for expansion, fortifying its robust omnichannel presence

Antfin Singapore divests 2% stake in Zomato via bulk deals worth INR 2,827 Cr

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March 7, 2024

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Antfin Singapore, a subsidiary of the Chinese tech giant Ant Group, divested a 2% stake in foodtech major Zomato via bulk deals for INR 2,827 Cr on Wednesday.

According to BSE data, Antfin sold 9.7 crore shares of Zomato at a price of INR 160.40 per share, along with an additional 7.93 crore shares at INR 160.11 each.

Together, these two transactions amounted to a total value of more than INR 2,827 Cr.

Continue Exploring: Antfin Singapore mulls selling 2% stake in Zomato for INR 2,800 Cr amid surging share prices

Morgan Stanley Asia (Singapore) took the chance to acquire some of the offloaded shares. It purchased over 5.68 crore shares of the foodtech giant at INR 160.1 apiece, amounting to a total deal of INR 909.5 Cr.

At the close of the December quarter in 2023, the Chinese investment firm maintained a 6.42% ownership stake in the company.

This development comes as Zomato shares continue to scale new heights, hitting a record peak of INR 175.5 during intraday trading on Monday (March 4). With this surge, Antfin could be contemplating profit booking, as the startup gains popularity among investors amid sustained profitability and revenue growth.

Zomato witnessed a remarkable surge in its profit after tax (PAT), jumping by 283% quarter-on-quarter (QoQ) to INR 138 Cr in the quarter concluding December 2023. Furthermore, operating revenue grew to INR 3,288 Cr from INR 2,848 Cr in Q2 FY24.

Continue Exploring: Continue Exploring: Zomato reports third consecutive profitable quarter with INR 138 Cr PAT in Q3 FY24

Fueled by strong financial performance, Zomato’s shares have skyrocketed by almost 200% over the last 12 months. Additionally, the stock has experienced a surge of more than 30% on a year-to-date (YTD) basis.

As a result, several prominent investors have divested their holdings in the company in recent months to capitalize on profits. In January, Societe Generale sold more than 86.5 lakh shares of Zomato in a block deal worth INR 117 Cr, while Motilal Oswal Mutual Fund executed a block deal valued at INR 621.6 Cr.

Before that, SoftBank sold 9.35 crore shares of Zomato in a block deal worth INR 1,127 Cr in December 2023.

Meanwhile, Zomato shares concluded Wednesday’s trading session down by 2.68% at INR 161.60 on the BSE.

Continue Exploring: Zomato’s shares reach record high of INR 175.5 amidst bullish market sentiment

Westside to amp up beauty portfolio and strengthen e-commerce presence

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March 6, 2024

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Westside, a retail establishment under Tata’s Trent, is poised to broaden its beauty offerings while simultaneously boosting its presence in the e-commerce sphere, according to Shailina Parti, COO at Trent Ltd.

Out of the 300 stores the brand operates, it has refurbished approximately 15-20 so far, with plans to expand the area dedicated to beauty by three times in its revamped stores. This expansion aligns with the brand’s average of opening 30 new stores annually.

“To capture the beauty market, we’re investing in R&D, along with launching many new ranges. We’ve gone into fragrance in a big way. We are also launching skincare. Our objective is to develop affordable quality products. So, we are building beauty and we see beauty very much in the forefront of our strategy,” she said.

“Westside.com has grown 150 percent on last year. We want to further build our online proposition. Currently, e-commerce contributes to 7 per cent of our overall revenue and is profitable. There lies an opportunity to grow it by another 30-40 percent on the current base over the next 2 years,” she further added.

Currently, 65 percent of the brand’s revenue originates from women’s wear, with men’s wear contributing 30 percent, while the remaining 5 percent is distributed across other categories.

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

“There are 3 pillars of our strategy in terms of our platform – ethnic women’s fashion, women’s western wear, and men’s wear. These are the three fastest-moving and highest revenue categories,” she said.

The brand is also considering housing the home segment exclusively in stores with ample space.

“We’ve realized doing a little bit of home in all our stores all over the country, may not be what we want. We should find the right stores with lots of space and do it well. So that’s what we’re doing and we will keep it to limited stores,” she explained.

In addition to this, the brand is also heavily investing in other categories such as lingerie and accessories.

Presently, the 25-year-old brand operates in 86 cities, including 8 metro and tier I cities, and 78 tier II cities. It maintains 109 stores in metro and tier I cities, and 121 in tier II cities.

“We are betting big on tier II cities as aspirations and purchasing power of the consumers is improving. Apart from this, there’s less competition in those cities for fashion. So, the less competition gives us the advantage as well” she asserted.

The brand, which has 25 to 30 percent of its stores located in malls and the rest on high streets or in out-of-town areas, is experiencing a 17 percent year-on-year growth.

“We are not in the business of above-the-line marketing and advertising as we’re building a community. We’re building experiential marketing that connects people with Westside, not on a brand level, but on a community level and we see that as a very much long-term strategy,” she said.

She further added, “Westside as a brand in India is evolving every year. It’s not a revolution and it’s not going to have super fast growth. So, going ahead, I see 10-15 per cent growth each year.”

Continue Exploring: Shift in Indian beauty market: Fairness creams witness first decline as demand swells for radiance and hydration products

Patanjali Ayurved teams up with Ongo to launch open-loop co-branded prepaid cards

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March 6, 2024

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Patanjali Ayurved Ltd., a Haridwar-based multinational conglomerate, has collaborated with New Delhi-based digital payments brand Ongo to introduce open-loop co-branded prepaid cards, as announced by the company on Wednesday.

As per the release, an open-loop prepaid card features a network logo and can be utilized across the Rupay network nationwide on any compatible device.

Acharya Balkrishna, co-founder and managing director, of Patanjali Ayurved Ltd., said, “We are delighted to provide an elevated shopping experience to our esteemed clientele by introducing the open-loop co-branded cards in collaboration with Ongo. With Patanjali-Ongo cards, our valued customers will gain access to exclusive benefits spanning a diverse range of Patanjali’s products and services across Patanjali stores.”

Continue Exploring: SC slams Patanjali Ayurved for misleading ads, bans promotion of medical claims; contempt notice issued

Users of the Patanjali-Ongo co-branded card will accrue rewards for buying Patanjali products through the card. Moreover, they can utilize the card for a multitude of transactions, including shopping, dining, fueling, and e-commerce. Additionally, the card is equipped with a National Common Mobility Card (NCMC) feature, facilitating seamless use of transit services such as NCMC-enabled Metro, buses, tolls, and parking nationwide.

Customers can enroll for this service by registering through the Ongo app, which is accessible on both the Play Store and the App Store, or by visiting their nearest Patanjali stores.

“We are thrilled to partner with Patanjali Ayurved, the country’s leading conglomerate to introduce open-loop cobranded prepaid cards on our Ongo platform. Through this partnership, we aim to provide unparalleled convenience to Patanjali’s extensive customer base, ensuring every transaction is enriched with seamless efficiency and ease,” said Ravi B Goyal, Chairman & MD.

Continue Exploring: SC warns Patanjali over ‘false’ advertising claims

Gopal Snacks IPO subscribed 56% on first day; retail investors lead with 88% subscription

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March 6, 2024

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The initial public offer of Gopal Snacks was subscribed 56 per cent on the first day of bidding on Wednesday.

The Initial Public Offer (IPO) received bids for 66,61,628 shares against 1,19,79,993 shares on offer, as per NSE data.

The portion for Retail Individual Investors (RIIs) fetched 88 per cent subscription, while the quota for non-institutional investors got subscribed 49 per cent.

The IPO has an Offer For Sale (OFS) aggregating up to INR 650 crore. The proposed IPO is entirely an OFS of equity shares by promoters and other selling shareholders.

Continue Exploring: Gopal Snacks raises INR 194 Crore from anchor investors ahead of IPO launch

The IPO comes in a price range of INR 381-401 a share.

Gopal Snacks Ltd on Tuesday said it has garnered INR 194 crore from anchor investors.

The Rajkot-based company’s IPO would conclude on March 11.

Founded in 1999, Gopal Snacks is a fast-moving consumer goods company in India, offering namkeen, western snacks, and other products across India and internationally. As of September 2023, the namkeen makers’ products were sold in 10 states and 2 Union Territories. It has a network of 3 depots and 617 distributors.

The company operates three manufacturing facilities — Rajkot and Modasa in Gujarat, and Nagpur in Maharashtra. Furthermore, it runs three ancillary manufacturing facilities that mostly produce ‘besan’, raw snack pellets, seasoning, and spices. These are mainly used internally to make finished products like namkeen, gathiya, and snack pellets.

Intensive Fiscal Services, Axis Capital and JM Financial are the managers to the offer.

The equity shares of the company are proposed to be listed on the BSE and NSE.

Continue Exploring: Gopal Snacks sets IPO price band at INR 381-401 per share, subscription opens March 6

French-American beauty giant Laura Mercier makes grand entrance into Indian market with Mumbai store debut

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March 6, 2024

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Laura Mercier, the renowned French-American cosmetics and skincare brand, has made its entry into the Indian market with the unveiling of its first retail store in Mumbai. As announced by an industry official on social media, the store is conveniently situated at Phoenix Palladium Mall, Lower Parel, Mumbai, Maharashtra.

Baccarose, a Mumbai-based luxury beauty company, introduced the brand to India. Baccarose manages over 65 brands on e-commerce platforms and collaborates with retailers such as Sephora, Nykaa, Shopper Stop, and Lifestyle.

“Palladium Mumbai welcomes the first store of Laura Mercier in India,” wrote Asha Someshwar, general manager leasing at The Phoenix Mills Ltd. in a LinkedIn post.

In addition to skincare products and fragrances, the store provides a variety of cosmetics for eyes, lips, and face.

Continue Exploring: French apparel brand Kiabi partners with Myntra for Indian debut

Established in 1996 by celebrity makeup artist Laura Mercier, the personal care brand extends its merchandise through various channels, including exclusive retail outlets and partnerships with Sephora, Nordstrom, Hudson’s Bay, Saks Fifth Avenue, and Shoppers Drug Mart.

Meanwhile, Baccarose, established in 1984 by Hemansu Kotecha, asserts itself as a prominent distributor of international luxury beauty brands in India. With a multi-tier distribution network encompassing 16 warehouses nationwide, the company caters to diverse segments of the market.

Recently, Baccarose brought the French luxury perfume brand Alexandre.J to India, further expanding its fragrance portfolio.

Continue Exploring: Baccarose partners with Alexandre.J to bring French perfume elegance to Indian consumers

Harley’s Corner revolutionizes dog nutrition in India with new product offerings

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March 6, 2024

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Harley’s Corner, a pioneering brand renowned for its 100% preservative-free wet dog food, unveils a groundbreaking expansion in India with the introduction of two novel product categories. This marks a significant milestone as it becomes the first indigenous brand in the country to offer such diverse options. The new additions comprise Puppy Food and Therapeutic Food, broadening the brand’s spectrum to cater to a wider array of canine nutritional requirements.

The Puppy Food line showcases expertly formulated recipes designed to nurture the optimal growth and development of young pups, supplying vital nutrients frequently absent in conventional dog food selections.

In addition to the Puppy Food line, Harley’s Corner presents its innovative Therapeutic Food category, targeting distinct health issues and dietary needs of dogs. This range encompasses formulations catering to gastrointestinal wellness, mobility and joint assistance, hypoallergenic requirements, renal health, and weight management, providing holistic solutions for pet owners.

Continue Exploring: Indian pet food brand Drools secures $60 Million investment from L Catterton, valuing the company at $600 Million

Ishmeet Singh Chandiok, the visionary Founder of Harley’s Corner and India’s pioneer Dog chef, shares his excitement for the latest product expansions, underlining the brand’s steadfast dedication to offering top-tier choices for pet owners. The launch of Puppy Food and Therapeutic Food underscores Harley’s Corner’s unwavering commitment to delivering nutritious and convenient meal solutions tailored to dogs at all stages of life.

Dedicated to employing solely the finest human-grade ingredients, Harley’s Corner guarantees dogs receive tailor-made optimal nutrition. The option to pre-order Puppy Food and Therapeutic Food through the Harley’s Corner website represents a notable achievement in the brand’s endeavor to spearhead the pet food sector by furnishing nourishing meal choices for dogs, irrespective of age, breed, or health status.

Continue Exploring: Ayurvedic pet food startup TABPS Pets secures INR 6.5 Crore funding boost from cricket stars Hemang Badhani and KS Bharath

AdilQadri Perfumes targets INR 250 Crore revenue milestone by 2025, eyes venture capital funding boost

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March 6, 2024

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AdilQadri, a direct-to-consumer perfume brand, has set its sights on achieving INR 250 crore in revenues for the fiscal year 2025. Additionally, it intends to secure $4-5 million in funding from venture capitalists.

In FY23, the company achieved about INR 20 crore in revenue and is projected to conclude the current fiscal year with sales totaling INR 90 crore.

“We are looking to open online stores in the US, Canada. And we are planning offline and online stores in Saudi and we are expanding to D2C in Dubai which previously only had a retail store,” said Qadri who started the firm in 2018.

With 15 stores already established in Gujarat and Maharashtra, expansion plans are underway to reach regions such as Telangana, Kerala, and Delhi. The company aims to build a network of 111 stores across India and overseas within the next five years.

Continue Exploring: Baccarose partners with Alexandre.J to bring French perfume elegance to Indian consumers

From a modest 20 orders in 2019, AdilQadri Perfumes has surged to over 80,000 orders monthly across various channels. According to a Technavio report, the perfume market in India is projected to expand to $1328 million between 2022 and 2027, with a compound annual growth rate (CAGR) of 15.23%. This growth hinges on several factors, including rising demand from millennials, impactful endorsements by celebrities and on social media platforms, and a growing emphasis on personal grooming.

The Gujarat-based firm has emphasized its collaboration with multiple tech enablers to cater to various functions and business needs. For example, it utilizes Shopify as a platform, Shiprocket for logistics, and GoKwik for checkout, return to origin, and prepaid shares. The company has reported that GoKwik contributed to a 40-45% increase in prepaid transactions.

“Over the past two years, this strategic collaboration has proven immensely successful, with checkout conversions soaring from 18% to an impressive 30%. The prepaid orders also experienced a significant uplift of 40%, while the RTO rate has come down from 35% to 27%, showcasing the brand’s commitment to building solutions that optimised shopper experience, thereby unlocking growth for the brand,” said Qadri

Roughly one-third of the orders are received for gifting purposes, and the company intends to enhance the gifting experience by focusing on packaging and expanding its product line. Additionally, the company is gearing up to introduce its incense sticks on its website, thereby broadening its offerings in the fragrance category.

Continue Exploring: French apparel brand Kiabi partners with Myntra for Indian debut

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