Reliance‘s FMCG division has partnered with a prominent Sri Lankan beverage company to bring the Elephant House brand to India. This strategic move is in line with the conglomerate’s aim to strengthen its beverage portfolio in a market largely controlled by Coca-Cola and Pepsi.
In a statement, Reliance Consumer Products Limited (RCPL), the FMCG arm of Reliance Retail Ventures Limited, announced its collaboration with Sri Lanka’s Elephant House to produce, promote, distribute, and sell beverages under the Elephant House label in India.
“This association will not only help RCPL bolster its growing beverage portfolio that boasts iconic brands such as Campa, Sosyo and Raskik but will also bring exceptional new products and value propositions to Indian consumers,” Reliance said.
Ceylon Cold Stores PLC, the parent company of Elephant House, stands as Sri Lanka’s foremost listed conglomerate. Renowned for its diverse array of beverages such as Necto, Cream Soda, EGB (Ginger Beer), Orange Barley, and Lemonade, Elephant House has firmly established itself as a leading brand within the Sri Lankan market.
Since the past year, Reliance has been expanding its FMCG operations, simultaneously emphasizing the development of its own private labels and the acquisition of both popular and regional brands.
Last year, Reliance Consumer Products unveiled the revival of the iconic beverage brand, Campa, marking yet another milestone in the Mukesh Ambani-owned company’s efforts to bolster its wide-ranging FMCG portfolio. This assortment includes heritage brands like Sosyo Hajoori, confectionary products from Lotus Chocolates, Sri Lanka’s prominent biscuit brand Maliban, alongside its own branded daily essentials such as Independence and Good Life, among others.
“This (Reliance-Elephant House) partnership will not only add its much-loved beverages to our growing FMCG portfolio but will also offer our Indian consumers great choice and value proposition through quality products,” said Ketan Mody, COO, Reliance Consumer Products Limited.
Krishan Balendra, Chairperson of the John Keells Group, said, “We are proud to announce the expansion of the Elephant House brand to the Indian market. Our partnership with Reliance Consumer Products Limited marks a significant milestone in the journey of our heritage brand and represents our commitment to delivering our high-quality beverages to new consumer segments. We look forward to the opportunity this partnership brings, to provide refreshing and innovative beverage options to meet the diverse preferences of Indian consumers.”
In the early 2000s, it was commonly believed that Indian spirits couldn’t compete with their global counterparts. India was primarily recognized as a mass producer of dark spirits, and local brands were often seen as inferior. However, this perception shifted as India began crafting spirits that not only rivaled but surpassed international standards. With India’s ascent as the fifth-largest economy globally, its spirits industry has kept pace, delivering premium offerings that command recognition on par with global standards. Today, domestically produced spirits are highly coveted among Indian consumers, reflecting their quality and appeal.
One such new-age Indian spirit brand that has rapidly risen in prominence is Short Story. In 2022, Third Eye Distillery, the parent company responsible for the globally acclaimed Stranger & Sons Gin, made the strategic move to expand its portfolio of spirits. This decision culminated in the introduction of Short Story, featuring a trio of white spirits: Grain Vodka, White Rum, and Dry Gin.
Established with the overarching goal of showcasing high-quality Indian spirits on the global stage and enhancing the cocktail culture within the nation, Third Eye Distillery identified a gap in the market for dependable, premium homegrown spirits. With Short Story, they sought to bridge this gap and establish a standard for accessible, top-tier spirits from India.
Within just over a year since its launch, Short Story has managed to create waves not only across India but also on the global platform as its spirits have bagged some of the most prestigious awards alongside the top spirits of the world.
Adding yet another milestone accolade to their name, Short Story Dry Gin has secured a Gold Medal and has also been declared as the ‘Country Winner’ for being the best London Dry Gin from India, at the World Gin Awards 2024 organized by The World Drinks Awards – the global awards selecting the very best in all internationally recognised styles of drink and presented by TheDrinksReport.com.
Pankaj Balachandran, Brand Director, Short Story, said, “Earlier, there was a prevailing notion that premium liquor equated to imported spirits. Our goal was to shift that perception and create a homegrown spirit that not only resonated with Indians but also instilled a sense of pride in consumption. It is immensely gratifying to see our spirits being appreciated globally and equally reassuring that we are on the right path towards our goal to take Indian spirits worldwide!”
Speaking further about the spirit he added, “Post the pandemic we noticed that the Indian consumer is no longer just looking for a quick, cheap drink. They’re seeking out newness as well as quality. Much buzz and hype had been generated about the ingredients and the technique that goes into the creation of some of our homegrown brands, but we wanted to keep things simple and let the spirits speak for themselves to consumers. Hence the name, Short Story!”
The brand has already garnered over 15 international awards to its name! Last year, Short Story’s spirits managed to bag multiple international awards in just their first year. DBSB, awarded Short Story White Rum a Gold medal in their Summer Tasting 2023 in the UK. Additionally, all three spirits – Grain Vodka, Dry Gin, and White Rum – won Gold medals at the San Francisco World Spirits Competition. Moreover, at the Asian Spirits Masters 2023, Short Story Grain Vodka was awarded the highest honor – Master Medal, a recognition reserved for only 10 spirits among competitions from over 59 countries, while the White Rum earned a Gold Medal. Furthermore, all three spirits of the Short Story portfolio also swept Gold Medals at the Singapore World Spirits Competition 2023.
Short Story is currently accessible in nine domestic markets, including Maharashtra, Goa, Delhi, Karnataka, Haryana, Rajasthan, and more. It also holds a presence in travel retail at Mumbai Duty Free. In the coming months, the brand plans to extend its reach to additional domestic and international markets. Moreover, Short Story can be found in many premier bars across its available cities, such as The Bombay Canteen, Americano, Masque, Copitas, Hideaway, Sidecar, Klap, Izumi, PCO, and more.
Burger Singh, a Gurugram-based restaurant chain, reported that its website was hacked on Tuesday by Pakistani hackers.
The company stated on X, formerly known as Twitter, that hackers not only breached but vandalized their website, leaving a digital graffiti wall on the same.
“It seems our digital doorstep got a surprise makeover on the 27th of February, 2024, thanks to a special visit from our not-so-friendly neighbourhood web wizards, Team Insane PK, straight out of Pakistan. And guess what? We weren’t the party of the year—Gujarat University got an invite too,” the company said in a press statement.
The company adds that the backstory to this attack could be the result of a cheeky promo called “Fpak20,” ring any bells?) that the company used recently offering discounts.
The promo code offered a 20% discount on all orders placed online in light of the airstrike on the Jaish terror camps, media reports said.
The culprits, a group known for their digital doodling on sites from Delhi Police to Mumbai Police and beyond, seem to have taken a particular interest in our humble burger domain. Their resume is impressive, in a ‘most wanted’ kind of way, and now, we’re the latest addition, the company added.
The growth in the number of active users for the top 20 online retailers more than halved last calendar year, reversing the surge seen during the pandemic as shoppers shift to brick-and-mortar stores.
The active user base in these online firms reached 499 million in 2023, up from 455 million in 2022.
Nevertheless, the growth rate stood at 10%, marking a five-year low in comparison to the 22-55% surge recorded between 2019 and 2022, as per the most recent report released by the Boston Consulting Group and the Retailers Association of India.
According to the report, the slowdown in new user addition on eCom post-Covid period acceleration could be due to the consumers partially switching back to offline.
The surge experienced during Covid was a result of mobility restrictions, and a decline in funding within e-commerce is also noted, with a 58% decrease in deals in 2023 compared to the previous year.
However, the share of e-commerce retail in the total retail market has grown from 4% in 2018 to 8% in 2023, with expectations of reaching 13-15% by 2028.
“Jump in user growth during Covid was reported but growth in new user addition declining, driven by a shift in consumer habits, lower discounting and growing premiumization,” BCG said in the report.
However, the growth of e-retail is expected to continue in Tier 2 cities, with projections suggesting a contribution of over 50% in the medium term. Moreover, Tier 2 regions are demonstrating higher spending per order.
There has been a 60% increase in time spent on apps over the past year, along with a 40% rise in data consumption and an additional 20% increase in consumer spending within apps.
India continues to be a bright spot among the major economies, growing fastest among the top 5 global economies and projected to become the 3rd largest by GDP in 2030. Additionally, India’s retail market is expected to reach $2 trillion in the next 10 years, presenting a significant opportunity for retailers.
Organised retail in India has consistently shown faster growth compared to the underlying category. Nevertheless, recent quarters have seen subdued performance due to potential headwinds.
Some major retailers have noted a decrease in like-for-like store growth. However, profitability has remained steady and aligned with global peers during the same period.
“The Indian retail sector will more than double in size to 2 trillion dollars in the next decade – across categories and formats – and the successful retailers are the ones who continue to challenge the perceived growth profitability trade off,” said Abheek Singhi, Managing Director and Senior Partner at BCG.
As per the report, consumers are allocating more of their spending towards experiences rather than products, with service categories experiencing a growth rate of 1.4 times the Compound Annual Growth Rate (CAGR) of product categories.
“By focusing on personalized customer experiences, exploring new collaborations, and leveraging AI for efficiency, we can propel India’s retail industry towards unprecedented growth and global competitiveness,” said Kumar Rajagopalan, CEO, Retailers Association of India (RAI).
Beauty and personal care house of brands Honasa Consumer Pvt. Ltd has recently unveiled a multi-brand outlet (MBO) in Bengaluru, as stated by a mall official on social media on Tuesday. The outlet is located on the upper ground floor of Mantri Square Mall, Malleshwaram.
“Happy to announce the arrival of the first store of Honasa Consumer at Mantri Square Mall. The first offline store of Honasa Beauty brings together beauty and personal care infused with technology and a commitment to customer satisfaction,” said Kamakshi Mantri, chief strategy officer at Mantri Developers Pvt. Ltd. in a LinkedIn post.
While Mantri claims this store to be the brand’s first MBO in the country, Snackfax had reported Honasa opening an MBO at Seasons Mall, Pune in January, making this the company’s second MBO in the country and first in Bengaluru.
The store showcases a range of beauty and personal care brands, which include Mamaearth, Aqualogica, The Derma Co, Ayuga, Dr. Sheth’s, and the hair care brand BBlunt.
Established in 2016 by Varun Alagh and Ghazal Alagh, Honasa Consumer adopted a digital-first approach. The company introduced Mamaearth, a toxin-free baby care brand, as its flagship product. Subsequently, the brand diversified its offerings to include beauty and personal care products for adults.
In 2020, The Derma Co became a part of the company, followed by the introductions of Aqualogica and Ayug in 2021. The acquisitions of BBlunt and Dr. Sheth’s occurred in 2022, coinciding with the parent company’s achievement of an annual revenue milestone of INR 1,000 crores in the same year.
During the third quarter (Q3) of the financial year (FY) 2024, the company demonstrated robust performance, exhibiting a revenue growth of 28% and a remarkable year-on-year profit after tax (PAT) surge of 264% to INR 26 crore.
Patanjali Foods, a subsidiary of the Baba Ramdev-led Patanjali Group, affirmed that its business operations and financial performance will remain unaffected by the recent Supreme Court remarks regarding advertisements for ayurvedic medicines sold by another firm within the promoter group. Clarifying in a regulatory disclosure, Patanjali Foods Ltd stated that the Supreme Court’s observations do not pertain to Patanjali Foods Ltd (PFL), an autonomous listed entity solely engaged in the production of edible oil and FMCG food products.
“The observations do not have any beating on the regular business operations or the financial performance of Patanjali Foods,” the company said.
Patanjali Group has nearly 74 per cent stake in Patanjali Foods.
Out of 73.82 per cent promoter stake, Patanjali Ayurved has 32.37 per cent stake.
Earlier, the Supreme Court, expressing concern, stated that the nation had been “misled,” as it temporarily prohibited Patanjali Ayurved from advertising or branding products intended for medical treatment until further directives are issued.
The apex court issued notices to Patanjali Ayurved and its Managing Director Acharya Balkrishna, questioning why contempt proceedings should not be initiated against them for apparently breaching the firm’s commitment made in court regarding the advertising of its products and their medicinal effectiveness.
Marriott International, the world’s largest hotel chain by number of rooms, reaffirmed its long-term commitment to South Asia on Tuesday by adding more than 4,600 rooms to the development pipeline following the signing of 28 hotel deals in 2023 and this year so far. At Marriott, South Asia comprises India, Nepal, Bhutan, Bangladesh, and Sri Lanka.
Marriott emphasized that its strategy highlights the company’s expansion in the region, where it presently manages a collection of 160 operational properties spanning 17 unique brands. Within India, the company oversees operations at 148 hotels.
In 2024, Marriott anticipates the opening of 14 hotels, including the debut of the Moxy brand in South Asia in early January 2024. The company also plans to introduce the Ritz-Carlton brand with The Ritz-Carlton, Amila Hills in Shimla, expected to open in May 2029. Additionally, Marriott intends to expand its luxury footprint in India with the JW Marriott Surat Resort and Spa and the JW Marriott Sohna Resort and Spa in Delhi-NCR.
“Marriott International’s strategic expansion in South Asia solidifies our commitment to accentuate the strong growth within the region’s travel and tourism sector,” said Rajeev Menon, president, Asia Pacific excluding China, Marriott International. “Our diverse brand portfolio, Marriott Bonvoy – an award-winning travel programme and strong distribution platforms position us well to create experiences and benefits for our guests and stakeholders in the region,” he said.
Kiran Andicot, regional vice president development, South Asia at Marriott International, said the chain’s focus remains on capitalising on opportunities in key gateway cities, strategic commercial centres, and major resort destinations in the region.
“By debuting Marriott International’s portfolio of brands into new markets, we offer best-in-class experiences to meet the demands of today’s travellers,” he added.
The chain stated that 77% of the rooms signed in 2023 are within the luxury and premium portfolio, compared to 48% in 2022.
Marriott Hotels and Resorts, the leading brand of the company, is set to unveil its presence in emerging locales with six new additions to its roster of premium brands. The forthcoming properties include Guwahati Marriott Resort & Spa, Ludhiana Marriott Hotel, Ayodhya Marriott Hotel, Shimla Marriott Hotel, and the Amritsar Marriott Hotel.
“Westin Hotels & Resorts will augment the wellness portfolio with the anticipated addition of the Westin Hyderabad Resort and the Westin Coorg Resort and Spa. Le Meridien Hotels & Resorts is expected to expand its footprint in North India with the Le Méridien Jalandhar,” according to the company.
Marriott also plans to broaden its collection of select brands throughout the region, responding to robust demand for chic yet affordable hospitality, according to the company.
Approximately 45% of the upcoming properties set to open in India within the next four years will be represented by Courtyard by Marriott and Fairfield by Marriott. These include Courtyard by Marriott Gwalior, Courtyard by Marriott Guwahati, Beltola, Fairfield by Marriott Guwahati, Fairfield by Marriott Andheri, Fairfield by Marriott Jalandhar, and Fairfield by Marriott Naina Tikker in Himachal Pradesh.
Jesper Brodin, the global CEO of Ingka Group, highlighted that India holds the top position on Ikea’s priority markets list for investment, remarking, “India is ranked ‘number one, two, and three’.” He underscored the difficulty in keeping pace with the country’s evolving digital and physical infrastructure. Ingka Group primarily operates Ikea stores as a franchisee.
“It has been incredibly interesting to see the speed of development the last five to 10 years,” he told in an interview. “Things were moving before but today, it’s even harder to keep up with all the changes in India. And India has moved from a country catching up to be a country that in many aspects are leaders in digital and more so the economic progression.”
He highlighted India’s leading position in terms of growth.
“We are deeply impressed by the economic development in India, which if you compare to any of the big countries out there, it’s the leader in economic growth and development right now,” he said. “And their outlook is quite optimistic.”
The world’s largest furniture and home products retailer, renowned for its ready-to-assemble offerings, began sourcing from India in the 1980s. With over sixty suppliers in the country, predominantly in textiles, it obtained approval from the former Foreign Investment Promotion Board (FIPB) over a decade ago for its INR 10,500 crore investment proposal to establish 25 stores by 2025, each boasting an expansive size equivalent to about four football fields. Presently, it has inaugurated three large-format stores and two smaller city outlets, with plans underway to introduce larger stores in Gurgaon and Noida within the National Capital Region shortly. Additionally, it has extended its ecommerce services across Maharashtra, Karnataka, Telangana, Andhra Pradesh, and Gujarat, with ambitions to launch online operations in Delhi later this year.
According to IDBI Capital, the domestic furniture market is currently estimated at $32 billion, with expectations to reach $38 billion by 2026. This growth trajectory is fueled by increasing demand for both residential and commercial infrastructure development, primarily supported by a burgeoning middle-class segment within the country.
Brodin, who once worked as an assistant for Ikea founder Ingvar Kamprad, said India is the biggest “expansion adventure” in the group currently.
“When we think about India, we think about size,” he said. “In terms of investment priorities, India ranks one, two and three. We have consciously decided we cannot financially afford to be in the startup phase in too many places. But India is the top priority for us now.”
The Indian market aligns well with Ikea’s global vision of providing affordable solutions to a larger population with substantial needs.
“India is the ultimate market for us with all these people who have thin wallets, so many needs, big family situations,” he said. “So, for us to succeed in India I think is the most exciting expansion project that we have.”
The Swedish retailer announced that it has reduced costs due to a softening in raw material prices, enabling Ikea to decrease prices on numerous products by approximately 20% both in India and worldwide. This reduction is expected to drive an increase in sales volumes.
India ranks as the world’s fifth-largest producer and the fourth-largest consumer of furniture. However, per-capita furniture consumption stands at $5, notably lower than countries like China with $237 and Vietnam with $330, indicating substantial room for growth. While approximately three-fourths of India’s furniture industry is dominated by standalone stores and local carpenters, the recent emergence of about half a dozen ecommerce players, such as Flipkart and Amazon, has entered the market, signaling a shift in the landscape.
The company stated that it is engaged in discussions with the Indian government to establish quality standards aimed at ensuring the production of safer and standardized products, particularly concerning the ingredients and materials utilized. This initiative is intended to foster a fair and equitable market environment.
“We have been invited to be part of the dialogue–how do we find a pathway which is right for consumers, right for India to claim its space on the market, but also helping the government to reach the $2 trillion export target by actually making sure that the standards are exportable?” said Brodin, who started at Ikea in 1995 as a purchase manager and became Ingka Group CEO in 2017.
Ingka, the primary global franchisee of Ikea, commands almost 90% of the company’s sales. Owned by a distinct entity, Inter IKEA, the brand produces all its merchandise.
Ikea, which opened its first India store in Hyderabad in 2018, has swiftly become a formidable presence in the market, surpassing local competitors Urban Ladder and Pepperfry within its inaugural year of operation at that single outlet. By 2023, it recorded sales of INR 1,768 crore, marking a remarkable 61% increase from the previous year. However, despite this notable growth, the company faced a widened net loss of over INR 1,134 crore, attributed to investments in new infrastructure such as land acquisition and distribution centers for forthcoming stores.
The flat-pack furniture giant expressed its ongoing efforts to establish a strong presence in the Indian market, emphasizing that it would require at least 8-10 stores to fully leverage economies of scale.
“The sooner we can get to that, the better,” Brodin said. “Chapter one was the sourcing and foundation and then getting the first door up and running. And then the intention is to get the company in top big cities. We are measuring out and laying out plans to see how we can do it for 1.4 billion people. And if I am certain about anything, it is that the economic outlook for India is looking good.”
Exporters have approached the government seeking clarity amidst an imbroglio, with the Centre recently announcing limited onion exports to select countries while maintaining a broader ban on exporting the bulb vegetable overseas.
The Horticulture Produce Exporters’ Association (HPEA) has approached the Centre, seeking ‘fair and equitable’ distribution of the export quota among all exporters.
India imposed a ban on onion exports from December 7 to March 31 to control escalating prices and curb inflation. Despite recent claims by some political leaders from the ruling BJP suggesting a reversal of the ban, senior government officials reaffirmed that the export prohibition would persist. Subsequently, the government announced the allowance of exporting 54,760 tonnes of onions to Bhutan, Bahrain, Bangladesh, and Mauritius.
A leading onion exporter from Maharashtra, who spoke to ET on condition of anonymity, alleged that only three to four exporters have been given a share of the export quota for select countries.
“The importers from our overseas markets have told us that a few of the Indian traders have received letters for export of onions. The same group of exporters is inquiring in the market for rail transport from Nashik to Kolkata for export to Bangladesh and have started buying onions,” this exporter said.
HEPA has sent a letter to the consumer affairs ministry, urging for transparency in export procedures so that all its members can be informed and participate if interested.
“We pray your good self to follow a fair, just and equitable system for distribution of the quantity to our associate members,” wrote HEPA in a letter to the ministry.
There is a global shortage of onions, which has fueled demand for Indian onions, especially from countries celebrating the Ramadan festival in March. The current huge profits of up to 300% on onion exports have also led to smuggling of onions.
“There is confusion about what are the modalities of exports that the central government wants to follow. We are hearing that it could appoint agencies like NAFED as canalising agencies. Even if they appoint canalising agencies, we hope that they would not allow only a few exporters to corner the quota,” said another exporter, who requested not to be identified.
The Supreme Court came down heavily on Patanjali Ayurved on Tuesday for its ‘misleading’ advertisements, imposing a ban on the company from promoting any product associated with diseases or medical conditions. The court expressed concern that such deceptive advertisements were misleading the entire nation.
This ruling follows a petition filed by the Indian Medical Association against Patanjali Ayurved, accusing the company of spreading deceptive advertisements.
Moreover, the Supreme Court has issued a contempt of court notice to Patanjali Ayurved and Acharya Balakrishnan for their engagement in disseminating misleading advertisements across various media platforms. They have been given a three-week period to provide a response to the notice.
During the hearing, Justices Hima Kohli and A. Amanullah criticized Patanjali Ayurved for airing advertisements despite previous court orders issued last year.
In November 2023 as well, the Supreme Court warned Patanjali that it would be fined INR 1 crore if a false claim is made that its products can “cure” certain diseases.
While referring to their previous warning to Patanjali, the bench said, “Despite our warning you are saying your products are better than chemical-based medicines.”
The bench decided to issue notices for contempt of court orders to the two people featured in the advertisements, Baba Ramdev and Acharya Balakrishnan. Justice Amanullah said that these individuals must file a reply and explain how they disregarded the court’s orders.
Sanghi, representing Patanjali Ayurved, defended Baba Ramdev, asserting that he is a ‘sanyasi’ who is not proficient in English. However, Justice Amanullah deemed the document containing the advertisements as contemptuous and a clear violation of the court’s orders.
Senior advocate PS Patwalia, representing the Indian Medical Association, highlighted a press conference held by Baba Ramdev following a previous Supreme Court order.
Patwalia stated that Patanjali Ayurved had released advertisements unlawfully, asserting the ability to cure different conditions such as diabetes and asthma. Patwalia also referenced a defamation lawsuit filed by Patanjali Ayurved against the Advertising Council.
On this matter, the top court remarked that there can’t be any defense of advertisements showing cures for illnesses including diabetes and blood pressure.
“What do you mean by permanent relief to the diseases? It means only two things – either death or cure,” the Supreme Court said, asking Patanjali Ayurved to show how they discharged their duties to tackle misleading advertisements.
During the proceedings, the bench questioned the actions taken by the Ministry of Ayush in response to the misleading advertisements.
The Additional Solicitor General (ASG) mentioned that data was being gathered on complaints and violations involving Patanjali Ayurved. Nevertheless, the bench voiced dissatisfaction with the ministry’s reply, calling for immediate action and self-regulation concerning such advertisements.
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