Sula Vineyards to open two new tasting rooms next fiscal year, anticipates strong grape harvest

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March 5, 2024

Listed wine-maker Sula Vineyards Ltd plans to open tasting rooms across the country, in addition to launching its fourth and fifth wine-tasting rooms in the next fiscal.

The company is also anticipating a record grape harvest this year.

According to the company, it will open its fourth tasting room on the Mumbai-Agra highway close to the Nashik Airport and HAL Ozar, thus catering to the fast-growing demand from the regions north and east of Nashik.

“This marks a significant step for Sula – our first tasting room outside our own winery premises – the start of a new chapter where we envision more Sula tasting rooms opening across the country. Plans are already in the works to open a fifth tasting room in the second half of FY25,” said Rajeev Samanth, CEO, Sula Vineyards Ltd.

Continue Exploring: Pune-based Ronin Wines raises $675k in funding to drive growth of Moonshine Honey Project

The 2024 grape harvest is shaping up to be excellent in quantity as well as quality for a fourth consecutive year, with the wine grape harvest setting a new record of over 10,500 tonnes.

“The harvest is excellent, with red grapes comprising about 65 per cent of total wine grapes. This signifies a notable shift from five years ago, when red grapes constituted 55 per cent of the total, reflecting India’s increasing preference for red wines. Syrah and Chenin Blanc are the two top varieties in this harvest,” said Karan Vasani, COO, Sula Vineyards Ltd.

Continue Exploring: Sula Vineyards asserts strong stand despite unseasonal rains, no impact on 2024 harvest

Popeyes expands presence in India: Unveils two new outlets in Delhi, Faridabad

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March 4, 2024

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Popeyes, a US-based fried chicken restaurant chain operated by Jubilant FoodWorks Limited (JFL) in India, has opened two new restaurants in the Delhi-NCR region, as stated in a social media post by a company official.

“What a weekend to start with !! Popeyes new store launch in Delhi NCR today at Pacific Mall, Jasola and Mall of Faridabad,” said Kartik Shandilya, Lead Business Development at Popeyes – North India in a LinkedIn post.

The two recently opened restaurants are situated at Pacific Mall Jasola, NH-19, adjacent to Jasola Apollo Metro Station, Jasola, New Delhi, and the Mall of Faridabad, NIT Bus Stand, K L Mehta Road, 01, New Industrial Township, Faridabad.

The Jasola Mall establishment will mark the second Popeyes store in New Delhi. Additionally, with the Mall of Faridabad outlet, it will become the second Popeyes store in Haryana state, following the brand’s existing store in Gurugram.

Since its debut in India last year, JFL has launched 35 Popeyes stores nationwide. Its most recent addition was the inauguration of its inaugural restaurant in Delhi at Omaxe Chowk, Chandni Chowk.

Continue Exploring: Popeyes makes grand debut in Delhi’s Chandni Chowk, delighting chicken aficionados

In December last year, it was reported that Popeyes plans to add about two dozen stores in India in the next three months or so to take the total number of restaurants in the country to about 50 by the end of the current fiscal year.

Last week, Sameer Khetarpal, CEO and MD of JFL, expressed expectations that Popeyes, its fried chicken brand, would surpass INR 1,000 crore in sales within the next 3-4 years during an interaction with the media.

JFL, also acting as the master franchisor of Domino’s, is in the process of expanding its footprint and anticipates having approximately 3,000 outlets in the medium term.

The company is going to “rapidly expand across” its QSR brands, with a key focus on Domino’s as India is a “very rapidly expanding market” with more discretionary income, and urbanisation led by its growing economy.

JFL plans to expand Popeyes’ presence to the NCR region and other prominent cities in North India. Launched by JFL in January 2022, the brand currently operates in 10 cities across South India, with Delhi being its eleventh city.

For the current fiscal year, the company has allocated approximately INR 750 crore for expansion and the opening of new stores.

Continue Exploring: Jubilant Foods expects Popeyes to hit INR 1,000 Crore sales mark in 3-4 years, plans rapid expansion

Sugar production in India drops by 1.19% to 25.53 MT so far in current marketing year: ISMA

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March 4, 2024

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India’s sugar production declined 1.19 per cent to 25.53 million tonne so far in the ongoing 2023-24 marketing year, the industry body ISMA said on Monday.

Sugar production stood at 25.84 MT till February in the year-ago period. Sugar marketing year runs from October to September.

In its second estimate, the Indian Sugar Mills Association (ISMA) has projected sugar output to decline by 10 per cent to 33.05 MT in the current 2023-24 marketing year as against 36.62 MT in the previous year.

Continue Exploring: Artificial sweeteners struggle to catch up with sugary products despite industry push

According to ISMA, sugar production in Maharashtra, Karnataka, Gujarat, and Tamil Nadu remained lower till February of the ongoing marketing year.

However, sugar output in Uttar Pradesh — the country’s second largest producer of the sweetener — was higher at 7.81 MT as against 7 MT in the period under review.

The production in Maharashtra — the country’s largest producer of sugar — was down at 9.09 MT till February of this marketing year, compared with 9.51 MT in the year-ago period.

Similarly, the production in Karnataka — the country’s third largest producer — was down at 4.7 MT from 5.12 MT in the period.

Sugar output reached 7,70,000 tonne in Gujarat and 5,80,000 tonne in Tamil Nadu so far this marketing year.

Around 466 factories were operating till February of the current marketing year as against 447 in the year-ago period.

“In the current season, rate of closure of mills in Maharashtra and Karnataka is slower than last year, indicating that tail of the season could be longer this year in these states,” ISMA said.

So far, a total of 49 factories have closed across these two states this year as against 74 factories closed in the year-ago period, it said.

Overall, 65 factories have closed their crushing operations across the country as against 86 in the year-ago period.

Continue Exploring: ISMA projects a 10% drop in India’s gross sugar output to 330.5 Lakh Tonnes for 2023-24 marketing year

India authorizes export of 110,000 tonnes of rice to African nations to bolster food security amid global crisis

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March 4, 2024

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As part of India’s efforts to engage with the Global South, the government has authorized the export of 110,000 tonnes of rice to three African nations, aiming to assist them in addressing their food security requirements.

As per a notification from the Directorate General of Foreign Trade (DGFT), Tanzania has been granted permission to import 30,000 tonnes of non-basmati white rice, Djibouti has been allowed to import 30,000 tonnes of broken rice, and Guinea Bissau has been permitted to import 50,000 tonnes of broken rice.

Since July 20, 2023, exports of non-basmati white rice have been prohibited to maintain ample domestic stocks and manage inflation levels.

Continue Exploring: India prohibits non-basmati white rice exports amidst supply concerns

Nevertheless, certain exports are being permitted to allied nations to safeguard their food security, particularly affected by disrupted supplies stemming from the ongoing conflict between Russia and Ukraine.

The African countries had sought support from India to meet their needs as they were facing problems due to shortage of food supplies and runaway inflation in its wake.

Continue Exploring: Govt extends 20% export duty on parboiled rice to curb price inflation

Tata Consumer Products eyes further acquisitions after Capital Foods and Organic India deals

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March 4, 2024

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After acquiring Capital Foods and Organic India, Tata Consumer Products Limited (TCPL), a fast-moving consumer goods (FMCG) manufacturer, is prepared for further acquisitions. According to a senior company official, TCPL is actively seeking new acquisitions that bring substantial operational value to the company.

In the meantime, the company has established a goal of integrating its latest acquisitions, Capital Foods (valued at INR 5,100 crore) and Organic India (valued at INR 1,900 crore), into the business within 100 days.

Continue Exploring: Tata Consumer Products set to expand portfolio with strategic acquisitions of Capital Foods and Organic India

Ajit Krishnakumar, COO of Tata Consumer Products Ltd said, “We are in the process of integrating Capital Foods and Organic India, which is substantial and amounts to a total of INR 7,000 crore. From an operational perspective, there is no reason that we will not look for acquisitions. We remain disciplined. We have to define the criteria, which is that it should be worthwhile, and we will pursue it. We will not be running away because of the price, as long as the acquisitions meet the criteria; we have the position to continue with it.”

The Mumbai-based company revealed its acquisition of both firms on January 12th. It noted that the sectors in which these companies operate are experiencing growth rates ranging from 15 to 20 percent compared to their foundational categories. TCPL intends to consolidate the three manufacturing plants of Capital Foods into its existing manufacturing infrastructure. Previously, the company had acquired Kottaram Agro Foods, headquartered in Bengaluru.

Continue Exploring: Tata Consumer Products approves INR 6,500 Crore fundraising for Capital Foods and Organic India acquisitions

“We have platforms that we are interested in that include pantry and mini meals. We have also talked about proteins. We have defined our interests for several reasons which start with what brands will work, distribution strategy etc. We want to grow and will tap into opportunities. It could be a mix of inorganic and organic growth,” added Ajit Krishnakumar.

The company’s distribution network spans 3.9 million outlets across India, with direct access to 1.5 million of them.

TCPL is gearing up to establish a specialized pharmaceutical distribution network featuring Organic India’s product range, which encompasses capsules containing Tulsi, ashwagandha, and Triphala. Additionally, TCPL will market its own in-house products, such as GoFit plant proteins and Soulfull products, through pharmacy channels.

Continue Exploring: Tata Consumer Products to tap pharma channels with Organic India and expand Capital Foods into oriental cuisine space

Poultry companies set for 5-6% revenue growth in FY2025, says ICRA

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March 4, 2024

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Credit rating agency ICRA expects the revenue growth for its sample set of domestic poultry companies to improve mildly to about 5-6 per cent in FY2025 after an estimated modest Year-on-Year (YoY) growth of about 3-4 per cent in FY2024.

According to ICRA, the growth will be driven by demand improvement, increasing share of organised players and growing preference for value-added products.

“While broiler meat realisations continued to be strong till 7M FY2024 (YoY growth of about 2 per cent), they started tapering thereafter due to high placement and excess supply in key markets,” ICRA said in its recent report.

Subsequently, Q3 FY2024 witnessed a about 10% Quarter-on- Quarter (QoQ) drop in average realisations, resulting in overall flat average numbers in 9M FY2024 on a YoY basis. The same could revive gradually, as the oversupply scenario corrects over the next few months, ICRA said.

Continue Exploring: Popeyes makes grand debut in Delhi’s Chandni Chowk, delighting chicken aficionados

While realisations improved in 7M FY2024 following controlled supply and healthy demand, poultry companies’ earnings were further supported by softened feed costs, ICRA said.

Average maize prices during April-November 2023 decreased by about 9 per cent vis-à-vis FY2023. Likewise, soybean prices softened in the current fiscal and average prices in 9M FY2024 declined by about 14 per cent vis-à-vis FY2023. However, the realisations started tapering from November 2023 onwards and the grain prices, particularly maize, also started rallying since then, ICRA said.

Further, significant contraction in soybean harvest during the kharif season and delayed sowing of maize may result in a potential spike in feed costs and is likely to exert pressure on the margins of poultry companies over the next few quarters, ICRA said.

Continue Exploring: India’s food boom: Agro, dairy, poultry sector surge sparks growth for local brands

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

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March 4, 2024

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Zomato, a major player in the foodtech industry, saw its shares surge to a record peak of INR 175.5 during early trading on the BSE on Monday, March 4th.

The stock, which has been experiencing an upward trend since mid-April last year, surged nearly 5% during intraday trading to reach its all-time high.

Even last Friday, the stock surged almost 5% intraday to touch the previous all-time high of INR 173.45.

Continue Exploring: Zomato’s bull run continues: Stock jumps 5%, setting new record peak

Following its rally earlier today, the shares retraced some of their gains to conclude the day with a 1.3% increase, reaching a new record closing price of INR 169.75 on the BSE.

Currently, Zomato is trading at a level last observed in November last year, when it had reached a record intraday high of INR 169.1.

Since its listing in July 2021, Zomato’s shares have experienced significant fluctuations. In the backdrop of a downturn in the global tech sector, the company witnessed a substantial 60% decline in market capitalization in 2022. Moreover, apprehensions surrounding its losses and the acquisition of the loss-making Blinkit contributed to the challenges faced by shares of the startup led by Deepinder Goyal.

However, as the startup reported its first profitable quarter in Q1 and continued to grow its profits every quarter thereafter, the market sentiment towards the stock became positive.

Although its primary food delivery segment experiences sluggish growth, the strengthening fundamentals of its quick commerce division, Blinkit, have sparked bullish sentiment on the stock among investors.

Presently, the company is expanding its roster of brands and introducing fresh categories on Blinkit, positioning itself to compete against ecommerce giants like Amazon and Flipkart.

Continue Exploring: Zomato’s Blinkit set to ramp up e-commerce deliveries with diverse product range

During its most recent reported quarter, Q3 FY24, Zomato recorded a profit after tax (PAT) of INR 138 Cr, marking a substantial 283% increase quarter-on-quarter.

The company’s shares have surged by over 37% since the beginning of the year.

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

FMCG giants boost advertising spend, surpass pre-Covid levels amid economic boom

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March 4, 2024

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consumer goods shopping — (Representative Image)

In the December quarter, advertising expenses as a proportion of sales at leading fast-moving consumer goods (FMCG) companies exceeded pre-Covid levels for the first time, reflecting a push to spur demand amid a booming economy.

According to a study by ET, Dabur, Colgate-Palmolive, Emami, Godrej Consumer Products, United Spirits, and Jyothy Labs have surpassed their FY19 levels. Hindustan Unilever (HUL), India’s largest consumer goods company, and Marico have seen increases in advertising and promotion (A&P) spending, but it has not yet reached pre-Covid levels.

The study encompassed eight companies that have consistently provided A&P data since fiscal year 2018.

Advertising expenditure experienced a widespread decline during the pandemic and was further constrained by inflation.

Continue Exploring: FMCG giants raise prices by up to 10% to bolster profits amid slow demand recovery

India’s economy saw a significant surge, reaching a six-quarter high of 8.4% in the period of October to December, as per data released on February 29th.

According to industry executives, the A&P recovery suggests that companies are gearing up to intensify their advertising efforts in response to heightened competition from regional brands. This move comes amidst a decrease in input prices, as they aim to stimulate demand recovery.

In the December quarter, Colgate-Palmolive’s A&P expenditure accounted for 14.64% of sales, compared to 12.65% in FY19. Similarly, for Jyothy Labs, the A&P expenditure was 8.97%, as opposed to 6.18% in FY19.

Recently, Hindustan Unilever‘s chief financial officer, Ritesh Tiwari, informed investors that the A&P spend in the December quarter stood at 10.7%, marking a 270 basis points increase compared to the previous year.

One hundred basis points is equivalent to one percentage point.

“Our absolute A&P investments were almost INR 400 crore higher than last year as we continue to invest competitively behind our brands,” he said.

In the nine months leading up to December, HUL recorded a 33% increase in advertising and promotion spending compared to the previous year.

FMCG companies are among the largest advertisers in the country, benchmarking their ad budget as a percentage of sales.

Continue Exploring: FMCG demand in India faces continued decline, Kantar predicts further downturn

Safari Industries raises INR 229 Crore in funding from Lighthouse’s AIF, eyes expansion in Indian luggage market

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March 4, 2024

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Safari Industries (India), a prominent luggage brand, has raised INR 229 Crore (around $27 million) in fresh funding from the growth-stage venture capital firm Lighthouse‘s fourth alternative investment fund (AIF).

According to the official statement, this marks the second investment made by Lighthouse in the company.

Last week, Lighthouse invested INR 284 Crore in Kushal’s, facilitating a partial exit for its initial institutional investor, India SME Investments.

Lighthouse’s portfolio includes companies such as Bikaji Foods, Nykaa, Duroflex Mattresses, Fabindia, Ferns N Petals, Cera Sanitaryware, Dhanuka Agritech, Kama Ayurveda, and Kushal’s Retail.

Continue Exploring: Luggage brand Nasher Miles bags INR 3 Cr investment on Shark Tank India 3

Safari’s chairman and MD Sudhir Jatia said, “Indian luggage market still remains highly unorganised, and we intend to leverage Lighthouse’s experience in building high-quality brands as we penetrate deeper into the Indian market.”

Safari produces and sells a wide variety of luggage bags and backpacks. The company boasts over 800 stock keeping units (SKUs) and a network of 9,300+ customer touch-points across online and offline platforms.

Media reports indicate that last year, the company provided an exit opportunity to one of its investors, Investcorp, achieving an impressive internal rate of return (IRR) of 102%. The total return for the investor stood at INR 285 Crore, resulting in a remarkable 3.8x multiple on the initial investment of INR 75 Crore.

Safari competes with VIP, American Tourister, as well as startups such as Mokobara, Nasher Miles, etc.

The announcement follows closely after Mokobara, its competitor, successfully secured $12 million in funding led by Peak XV Partners, elevating the startup’s valuation to $80 million. Mokobara currently operates numerous stores in Bengaluru, Delhi, Mumbai, and Pune, with plans to expand further by opening an additional 25 stores by April of this year.

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

As of 2024, the Indian luggage industry market is valued at $15.05 billion, with a projected compound annual growth rate (CAGR) of 5.21% expected by 2028, according to a market study.

Flipkart Internet receives INR 924 Crore cash infusion from Singapore entities

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March 4, 2024

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Flipkart’s marketplace arm, Flipkart Internet, has received a cash infusion, raising about INR 924 crore ($111 million) in two parts from its related entities based in Singapore.

According to ROC filing, the ecommerce giant backed by Walmart received new funding from its affiliated entities based in Singapore on January 8 of this year. The company sanctioned two resolutions to inject capital into it on December 20 and 22 of the previous year.

ET was the first to report this development.

Earlier reports suggested that Flipkart was exploring the possibility of raising a new round of funding worth $1 billion, with Walmart pledging $600 million. This new injection is expected to value Flipkart at approximately 5-10% higher than its previous valuation of $33 billion.

However, Flipkart confirmed Walmart’s infusion of $600 Mn in the company but said that the rest is speculative.

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

Last year, Walmart acquired additional shares of Flipkart, purchasing Tiger Global Management’s shares for $1.4 billion and providing the hedge fund with an exit from the company.

This comes at a time when Flipkart is experiencing significant growth in sales. The Big Billion Days event held in October last year marked its largest ever, attracting approximately 1.4 billion customers over the course of eight days (8-15).

Flipkart Internet generates its revenue predominantly from commission charges and additional services provided to merchants, such as product advertising. Its operating revenue surged by 42%, reaching INR 14,845.8 billion in the fiscal year 2022-23 (FY23), compared to INR 10,477.4 billion in FY22.

The ecommerce giant saw a 9% reduction in its net loss, which decreased to INR 4,026.5 billion in FY23 from INR 4,419.5 billion in FY22. Total expenditure increased to INR 19,043 billion in FY23, with ESOP costs amounting to INR 2,155 billion.

Meanwhile, Amazon India’s marketplace business, Amazon Seller Services, recently secured INR 830 crore from its US parent company. As part of this capital injection, Amazon Seller Services has allocated 830 million equity shares to Amazon Corporate Holdings Ltd and Amazon.com.inc.

Continue Exploring: Amazon India’s marketplace division sees INR 830 Cr investment from US parent

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