PepsiCo India is expanding its portfolio of potato chips snacks with the introduction of a new sub-brand under its flagship label Lay’s Shapez, featuring heart-shaped potato-based pellets.
The Lay’s Shapez Heartiez lineup features both masala and caramel flavors, marking Lay’s entry into the sweet-flavored chips market.
Saumya Rathor, Category Lead – Potato Chips, PepsiCo India, said, “As a category leader, we believe it’s important to keep bringing innovations in the snacking segment to meet evolving consumer needs.. This sub brand has been developed for the India market. As the snacking landscape evolves, there is a discernible trend toward a surge in demand for innovative, textured, and uniquely shaped snacks, and pellet-based offerings.”
According to industry estimates, the pellet snacks segment in India is valued at INR 1800 crore and is experiencing a year-on-year growth of 18 percent.
“Lay’s Shapez Heartiez has been launched in direct response to the growing need for fun, and crunchy snacks that go beyond traditional offerings in the rapidly expanding potato-based pellet chips market,” she added.
Rathor emphasized that the new sub-brand’s products are priced strategically at popular points of INR 5, INR 10, and INR 20 to encourage trial purchases and broaden the consumer base.
In 2022, the snacks and beverage giant introduced Lay’s Gourmet, marking the brand’s debut in the kettle-chips market segment.
“We have seen strong traction for Lay’s Gourmet as we are continue to deepen its distribution in metros and mega cities,” Rathor added.
PepsiCo India has been increasingly introducing new products in the snacks category recently, spanning both the Lay’s and Kurkure brands.
This comes at a time when established snack brands are facing heightened competition from regional and local players.
Earlier this month, PepsiCo announced that its India business achieved mid-single-digit organic revenue growth for the full year of 2023. While the beverage unit experienced double-digit growth in volumes, the snacks segment encountered a “low-single-digit decline.”
Fast-moving consumer goods (FMCG) companies have increased prices by as much as 10% in efforts to stimulate top-line growth, which has been hampered by a prolonged downturn in demand.
In February, the majority of product categories such as tea, coffee, health drinks, hair oil, shampoo, and detergent powder experienced gradual price rises, with the notable exceptions of edible oil and soap. According to consumer goods distributors, the toothpaste category witnessed the most significant price hike.
Hindustan Unilever Ltd., the largest consumer goods manufacturer in India, has implemented a price increase of 2-10% for its Pepsodent line, as reported by its distributors. Colgate Palmolive India Ltd. has also raised prices by up to 10% across various products, including Charcoal Clean, Sensitive Clove, and Strong Teeth. Furthermore, the price of Colgate Visible White, in the 100-gram size, has seen a 15% increase. Additionally, Dabur has increased the price of its 200-gram Meswak toothpaste by 8%.
In the detergent sector, HUL has increased the prices of its brands Rin and Surf Excel Quick Wash by 3-4%. Similarly, Procter & Gamble, a competitor, has raised prices for its 700 gm and 1.5 kg Ariel detergent packs by up to 4% and 2.5%, respectively.
While milk prices have mostly stayed steady, HUL has implemented a 1% price increase for Boost and a 4% increase for Horlicks Chocolate Delight. In a similar vein, Cadbury has raised prices by 2% for Bournvita Pro Health and 4% for Bournvita Lil Champ. Additionally, Zydus Wellness has also raised prices by 5-8% for Complan.
According to a monthly price check report by Emkay, soaps and edible oils were the sole categories experiencing negative pricing, whereas other categories witnessed gradual price increases throughout the month.
Regarding edible oils, the brokerage observed that Marico kept its prices steady for Saffola variants, whereas individual commodity oil producers reduced prices following recent government directives.
In the biscuit category, there have been varied pricing strategies, with Britannia‘s INR 25 Good Day Butter experiencing a 17% reduction through increased volume. Britannia reduced the price of Nice Time by 13%, while increasing prices for 50-gm Bourbon by 20% and 160-gm Milk Bikis by 7%, according to Emkay.
In the last quarter ended December, FMCG companies experienced weaker than expected topline growth. This was attributed to the ongoing decline in market pricing growth and the failure of anticipated demand recovery from Q3 FY24. Management’s outlook on demand remains cautious, with hopes pinned on a resurgence during the robust summer season and improved monsoons ahead.
“In the near term, we remain cautiously optimistic,” HUL’s Managing Director and Chief Executive Officer Rohit Jawa said in a post-earnings media briefing. “We expect the gradual recovery in market demand to continue, aided by increased government spending, a recovery in winter crop sowing, and better crop realisations.”
Rural income growth will be a key factor in determining the pace of recovery, said Jawa.
Among other companies, Emami Ltd. announced a 3% price hike, whereas Dabur India Ltd. implemented a 2.5% increase across its food portfolio in the third quarter, with a portion of it reflecting in the current quarter.
“Price increases, definitely will come,” according to Dabur Chief Executive Officer Mohit Malhotra. “I think price increases going forward in the year will depend upon how inflation is actually trending.”
Regarding non-food items, aside from toothpaste, Dabur has increased the price of Dabur Sarso Amla hair oil by 5%. Marico Ltd. has also raised prices by 11% for 200- and 300-ml units of Parachute, while Bajaj Consumer has implemented a 3% price increase for the 475-gm Bajaj Almond Drops.
While copra prices have experienced moderate inflation on a month-on-month basis, the primary raw material for hair oil companies is anticipated to undergo a price correction starting in April with the onset of the flush season. However, Marico foresees prices having an upward bias once the seasonal months conclude.
“If you look at history of Marico the sweet spot for us, especially in Parachute, is a scenario as follows: low food inflation, copra inflation, therefore we position gains as we deliver high volume growth and profitability is protected,” said Marico MD and CEO Saugata Gupta. “We see that scenario likely to happen in the second half of next year.”
Analysts expect further price hikes to help companies with earnings delivery.
“Contrary to the common perception of FMCG companies effecting price cuts to pass raw-material benefits, players are emulating the case for price growth in line with inflation ahead,” according to Nitin Gupta, senior research analyst at Emkay Global Financial Services Ltd. “We now see the emergence of a scenario where further price hikes should help companies drive margins, which will support double-digit earnings momentum.”
ICICI Bank has sanctioned INR 500 crore in debt facilities to Novel Jewels, a jewellery retail store promoted by the Aditya Birla group, as reported by ET. This financial support is intended to kickstart the company’s operations in the next quarter, according to individuals familiar with the matter. Furthermore, it was disclosed that the promoter companies infused INR 290 crore into the company last year.
Initially, Novel Jewels will open four to five stores in July, spanning various cities in northern, western, and central India.
Requests for comments from Aditya Birla Group and ICICI Bank went unanswered.
ICICI Bank, serving as the sole lender thus far, has sanctioned INR 450 crore as a working capital loan and INR 50 crore as a term loan.
Essel Mining and Industries will maintain a 51% stake and inject INR 148 crore in equity capital. Meanwhile, Aditya Birla Chemicals (Thailand) and Surya Kiran Investments will collectively hold 49%, with investments of INR 55 crore and INR 87 crore, respectively. Essel Mining, closely affiliated with the Aditya Birla Group promoters, engages in the mining sector and holds interests in several Aditya Birla group firms via its subsidiary IGH Holdings.
Last June, the group announced its venture into the branded jewellery retail business with an investment of around INR 5,000 crore. They aim to establish large-format exclusive jewellery retail stores across India, showcasing in-house jewellery brands. “The promoters have committed INR 5,000 crore to this endeavor, recognizing its capital-intensive and competitive nature,” said a consultant.
Nasher Miles, a Mumbai-based startup specializing in designer bags, made waves on Shark Tank India-3 by achieving a valuation of INR 200 crore. Securing unanimous approval from Aman Gupta, Anupam Mittal, Ritesh Aggarwal, Vineeta Singh, and Namita Thapar, it became the second startup of the season to clinch a deal with all five Sharks.
Founded by Abhishek Daga, Lokesh Daga, and Shruti Kedia Daga, this company stands out for its stylish travel gear. Offering over 100 shades and styles inspired by popular tourist destinations, it caters to a wide range of tastes.
Nasher Miles aims to elevate the fashion standards of Indian travelers with their range of hard-sided bags, backpacks, and other travel essentials. Their commitment to excellence and variety is evident in the products available on their website as well as leading e-commerce platforms. More than just a travel brand, Nasher Miles is a fashion-forward luggage company on a mission to make chic travel accessories accessible to all.
Nasher Miles offers a diverse range of travel essentials to cater to different preferences and needs, including hard-sided and soft-sided bags, backpacks, and related travel accessories. Their products are available for purchase on their website and popular e-commerce platforms such as Amazon and Flipkart.
Nasher Miles strategically leverages the expanding travel and e-commerce sectors to position itself as a unique contender in the luggage market, prioritizing elegance, diversity, and affordability. With the surge in travel, a burgeoning middle class, and increasing demand among younger consumers for distinctive travel products, both the global and Indian luggage industries present significant opportunities for growth.
By prioritizing unique designs and offering a wide array of colors, Nasher Miles aims to differentiate itself in the competitive luggage market and appeal to style-conscious travelers.
To expedite their mission of revolutionizing travel gear through a blend of affordability, durability, and design, the founders sought a INR 3 crore investment with a 0.75% interest rate, valuing the business at INR 400 crore. This proposition caught the attention of the investors—Anupam, Aman, Vineeta, Namita, and Rithesh. They collectively offered INR 3 crore for a 1.5% equity stake and a 1% royalty until the initial INR 3 crore investment was recouped, thereby valuing the business at INR 200 crore.
Anupam Mittal and Vineeta Singh with Diksha Singhi, Founder of A Little Extra
A Little Extra, a distinctive jewellery brand based in Guwahati, is renowned for its unique designs inspired by emotions and natural elements. Catering to individuals who seek originality in their accessories, it stands out in the market. Despite its humble beginnings, the brand started with an initial investment of just INR 5,000, yet has impressively sold over 80,000 products since its inception.
Their vast collection encompasses over 500 designs, blending traditional art forms with contemporary aesthetics, all available at affordable prices.
To accelerate their expansion, they are presently pursuing an investment of INR 48 lakh in return for a 6% equity stake.
Founded by Diksha Singhi, a Guwahati native, A Little Extra has seen remarkable growth, evolving from a modest initial investment to achieving a significant sales milestone of over 80,000 products.
Diksha’s vision for the brand revolves around providing one-of-a-kind, budget-friendly jewellery that connects with emotions and elements, catering to individuals seeking uniqueness.
The brand has adeptly blended traditional art forms with a contemporary touch, striving to make a lasting impression on the jewellery market.
With over 500 distinctive designs, “A Little Extra” enters the vast Indian jewellery market, intertwining emotions and elements with both traditional and modern craftsmanship.
Starting with a mere INR 5,000, the brand has experienced significant growth. The Indian jewellery industry, renowned for its rich cultural heritage and diversity, provides fertile ground for innovative brands like “A Little Extra.”
By meeting the rising demand for affordable, distinctive jewellery, the brand holds a strong position among consumers who prioritize personalization and cultural significance in their accessories.
During a recent airing of Shark Tank India, Diksha Singhi pitched “A Little Extra,” seeking INR 48 lakh for a 6% equity stake, valuing the startup at INR 8 crore.
The pitch sparked intense negotiations among the investors, with Ritesh initially meeting Singhi’s request, igniting a competitive bidding process.
Vineeta’s counteroffer of INR 48 lakh for an 8% equity share slightly reduced the valuation, intensifying the situation as Anupam joined forces with Vineeta, while Ritesh teamed up with Aman, sticking to the initial valuation.
The stakes rose when Vineeta and Anupam increased their offer to INR 60 lakh for a 7.5% equity share, keeping the valuation at INR 8 crore, a proposition Singhi accepted.
Aman’s remark, “Good product, bad sharks,” sprinkled an intriguing element into the already intense investment negotiations.
As per Diksha Singhi, the raised capital will be allocated towards broadening its product range, entering new markets, upgrading technology and infrastructure, and bolstering marketing endeavors.
Captain Fresh, an online seafood company, has acquired CenSea Inc, a US-based frozen fish and seafood importer and distributor, as reported by ET, citing the company’s founder and chief executive, Utham Gowda.
Gowda refrained from revealing the exact value of the deal; however, he mentioned that his company was completing a full acquisition of CenSea through a combination of cash and stock, with 90% of the payment being in cash. He further stated that CenSea, boasting a nationwide presence across the US, would serve as the cornerstone of Captain Fresh’s operations in the country.
“On the supply side, India and South east Asia form a substantial part of CenSea’s mix with multi-decade relationships with more than 100 factory partners in these supply markets… on the demand side we are excited about the potential to cross-sell to their existing customers,” Gowda said.
Acquiring the 40-year-old American firm is a strategic move for Captain Fresh as it ventures beyond seafood exportation into distribution across markets such as the US and Europe. This expansion initiative follows the recent acquisition of Senecrus, a French shrimp distributor.
Gowda mentioned that the company is currently in discussions regarding further acquisitions in the European market, which would grant them access to the North Atlantic supply markets. However, he refrained from providing additional details at this time.
On February 16, it was reported that Captain Fresh had raised $25 million in a funding round led by UK government-backed British International Investment (BII) and Andhra Pradesh-based Nekkanti Seafoods Group. This funding was part of a larger $48 million extended funding round at a $500 million valuation, out of which $20 million had already been raised by the firm in September last year.
At the time, Gowda had indicated that within the next two to three months, the company anticipated that over 50% of its business would originate from the US market, a significant increase from the previous 25-30%. Furthermore, he stated that approximately 80-85% of the company’s total business would be derived from the European and US markets.
Approximately 2-3% of the company’s business originates from India. In remarks made in September last year, Gowda highlighted that the company achieved Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins of over 15-20% in international markets, contrasting sharply with the 3% EBITDA-level margin observed in India.
Delhi NCR-based Country Delight saw revenue of INR 650 Cr in the first half of the ongoing financial year, with the dairy tech startup expecting to sustain this rate for the full year.
According to sources citing financial data provided by the startup to its primary investors, Country Delight aims to achieve EBITDA breakeven by the end of the first half of 2025.
It’s important to mention that Country Delight has not yet submitted its audited financial statements for FY23 to the Ministry of Corporate Affairs.
Sources added that its operating revenue in FY23 reached approximately INR 900 Cr, marking a 66% increase from FY22’s INR 542.6 Cr.
However, it couldn’t be determined what Country Delight’s net loss/profit figure was for FY23. The startup witnessed its net loss surge by over 6.5 times, reaching INR 186.4 Cr in FY22 from INR 28.2 Cr in the preceding fiscal year.
In September of last year, Country Delight’s co-founder, Chakradhar Gade, expressed that the startup aimed to achieve profitability within the subsequent 8-10 months.
According to sources, Country Delight had approximately INR 400 Cr in cash reserves at the end of Q2 FY24.
A questionnaire sent to the startup requesting clarification on its FY23 and H1 FY24 figures, as well as its cash reserves, did not receive any response by the time this story was published.
It is worth noting that earlier this year, it was reported that the startup had raised $20 Mn from its existing investors, including Temasek, Venturi Partners, and others.
Earlier this month, Orios Venture Partners, one of Country Delight’s earliest supporters, achieved a 45X return during its partial exit.
Established in 2013 by Chakradhar Gade and Nitin Kaushal, Country Delight operates on a subscription-based model. It procures milk directly from farmers and offers doorstep delivery to customers. Additionally, it provides a range of products including bread, ghee, other dairy items, as well as fruits and vegetables.
Earlier, Gade also mentioned that the startup plans to sell kitchen products such as wheat, batters, jams, oil, and pickles, among others. However, it is yet to launch these products.
Besides major traditional players such as Mother Dairy, Nandini, and Amul, Country Delight competes with new-age players such as Odisha-based Milk Mantra and Reliance-acquired Milk Basket.
Satya Paul, the renowned fashion brand, unveiled its newest store in Mumbai, as announced in a press release on Wednesday. Situated at Phoenix Palladium Mall, Lower Parel, the store spans around 900 sq. ft. of retail area.
The store showcases an oval design, mirrored in the circular glass display positioned at its center, devoid of any sharp edges.
Satya Paul stores provide a diverse selection of women’s designer wear, encompassing ready-to-wear apparel, athleisure outfits, and an array of accessories like handbags, scarves, wallets, belts, and pocket squares.
Established in 1985 by fashion designer Satvinder Paul Nanda, the brand, headquartered in Gurgaon, now boasts more than 13 stores spread across various cities, including New Delhi, Kolkata, Chandigarh, Ahmedabad, and Mumbai.
The brand’s products are also available on e-commerce platforms such as Ajio Luxe and Tata CLiQ Luxury.
Arjun Rungta and Pranjal Kumar, Co-Founders, TWF Flours
TWF Flours, a Noida-based foodtech startup, has secured its first institutional funding round with an investment of around INR 12 crore ($1.4 million) from Rainmatter, a Zerodha-backed venture fund.
The company has previously secured seed funding from prominent figures in the startup ecosystem, such as Rajaraman Santhanam, co-founder of Chargebee; Shan Krishnaswamy, co-founder of Freshworks; Sharath Longanathan, co-founder of Ninjakart, among others.
According to cofounder Pranjal Kumar, this pre-Series A funding round brings TWF Flours’ total raised funds to nearly $2 million to date.
“We will invest the funds raised in this round primarily for research and development on how to improve the nutritional aspects of flour,” Kumar said.
TWF Flours employs innovative milling technology to produce higher quality flour that is both healthier and richer in nutrients. The company distributes its products directly to consumers via its website and various e-commerce platforms. Additionally, it caters to the needs of hotels and restaurants requiring specialized bread for sandwiches, pizzas, and similar dishes.
“We have mostly acquired our customers through word of mouth. Anyone setting up a good quality pizzeria will hear about us for good quality bread,” Kumar said. TWF Flours competes with imported bread in this category and is a much cheaper option with similar taste and quality, he added.
Founded in 2019 by Pranjal Kumar and his longtime professional associate Arjun Rungta, both passionate bakers, TWF Flours originated from their endeavor to produce superior quality bread in India back in 2016. This aspiration led them to conceive the idea of establishing a specialized flour company.
For Rainmatter, TWF Flours represents another investment within the health and wellness category, an area that deeply resonates with the founders of Zerodha. Last year, Rainmatter invested in Pune-based fitness startup Fittr and has also supported ventures such as The Whole Truth and Trunati. Established in 2016, Rainmatter currently operates as a INR 1,000-crore fund, focusing its investments across fintech, healthtech, and storytelling sectors.
Baskin Robbins, the American multinational ice cream and cake chain, aims to open 1000 stores this year in India and the South Asian region.
The American ice cream brand, managed by Graviss Foods Pvt Ltd, headquartered in Mumbai, India, is targeting tier 2 and 3 cities as it expands its presence in the country.
“With a commitment to providing high-quality ice creams & desserts in vibrant and convenient locations across the nation, we are happy to aim to reach a major milestone of 1,000 stores spread over 270+ cities in the country making BR the largest Ice cream Parlor chain in India,” said Vikram Seth, managing director, Graviss Foods Pvt Ltd. “We believe in the power of ice cream to contribute to the nation’s Happiness, economic growth, and job creation.”
Baskin Robbins made its debut in India in 1993 through a joint venture with the Graviss Group. The first manufacturing plant outside of North America opened near Pune. With an investment of INR 100 crore in a new factory in India in 2022 to meet escalating demand, the brand has extended its reach beyond parlors to encompass over 4,000 retail outlets across major cities. As it approaches its 30-year milestone in India in 2024, Baskin Robbins is gearing up to celebrate its enduring journey.
Presently, the ice cream chain boasts over 900 stores across 250+ cities.
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