Onion exporters urge govt for ‘fair and equitable’ distribution of export quota

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February 28, 2024

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.

Continue Exploring: India eases onion export restrictions, allows shipments to selected countries

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.

Continue Exploring: India halts onion exports as prices soar due to unseasonal rainfall

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.

Continue Exploring: Onion export ban set to continue until March 31, no immediate changes expected

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.

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

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February 28, 2024

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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.

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

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.

Continue Exploring: Patanjali Ayurved vows adherence to advertising laws, promises Supreme Court no violations

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.

Continue Exploring: Patanjali ready to face penalties if found guilty of ‘false advertisements’, says Baba Ramdev

Indian FMCG firms turn to Dubai as launchpad for international expansion

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February 28, 2024

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Several Indian fast-moving consumer goods (FMCG) companies are considering Dubai as the base for their global expansion, according to Ashraf A. Mahate, the chief economist for trade and export development in the Dubai government.

Mahate emphasized the strategic advantage for Indian FMCG companies aiming to access global markets like the Middle East, Africa, or Europe to establish a presence in Dubai. This allows them to leverage top-tier infrastructure, port and airport connectivity, and numerous trade agreements already established or in negotiation by the United Arab Emirates (UAE).

He said despite India having a production linked incentive (PLI) for the food processing industry, Dubai is geared towards this industry with export and re-export infrastructure which will enable savings for the Indian companies across both financial and time.

“It is a strong reason to invest in Dubai when 20% of the cost of export is logistics. If they can add value after bringing the materials, it would become a made in UAE product whereby companies can avail the benefit from the trade agreements signed by UAE,” said Mahate. He said Indian pharmaceutical companies already use Dubai as a base before exporting to Africa.

Continue Exploring: Online gifting giant IGP enters Dubai, aims at $10 Million revenue in 1.5 years

Mahate mentioned that Indian companies are considering options such as establishing manufacturing units with local value addition and engaging in the re-export of commodities and various FMCG products. Additionally, the India-UAE Comprehensive Economic Partnership Agreement (CEPA) is expected to aid this process by allowing Indian companies to procure their raw materials from India duty-free.

“Dubai already has built linkages for raw materials. For instance, even when we don’t have any local sugarcane production, yet we have one of the world’s largest sugar refineries in Dubai. We get oil seeds from the USA and produce cooking oil in Dubai which is then exported. Unilever has a big personal care factory here producing Lifebuoy soap for the Middle east and Africa. For start-ups, Dubai itself has people from over 100 countries which could be a big testing ground before they explore other global markets,” said Mahate.

Continue Exploring: Rebel Foods expands to Saudi Arabia, aims for $100 Million food delivery enterprise in three years

Himalaya Wellness has already initiated the establishment of a plant in Dubai Industrial City, the prominent manufacturing and logistics hub of the region. The plant aims to facilitate the export of herbal medicines and personal care products and is anticipated to commence operations by the end of 2024.

Saud Abu Al Shawareb, the executive vice president of Dubai Industrial City, highlighted that among the new investors, 70% are seeking export opportunities, while the remaining 30% are aiming to penetrate the domestic market.

“Several local businesses owned by Indian investors such as IFFCO Group are also expanding their business from here,” he said.

Continue Exploring: Chai Sutta Cafe strengthens presence in Middle East with Dubai’s Preatoni Tower outlet

The emphasis on the manufacturing sector aligns with Dubai’s Economic Agenda D33, aiming to double GDP and foreign trade by 2033. Currently, manufacturing contributes 9% to the Dubai economy, contrasting with the logistics sector, including passenger traffic, which accounts for 28%. Notably, Dubai already exports food and beverage products to 130 countries.

Dubai imports a variety of bulk commodities from India, including lentils, pulses, oil seeds, nuts, fresh fruits, and vegetables. Additionally, Indian fruits and vegetables are re-exported from Dubai to various other countries. Notably, Dubai holds the distinction of being the world’s largest re-exporter of fresh fruits and vegetables.

Continue Exploring: From basmati to chicken: Indian products in high demand as the UAE seeks to expand imports

Paper and Pie sets sights on becoming a leading cafe brand nationwide, unveils ambitious expansion plans

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February 28, 2024

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In 2022, Vamsi Reddy and Sandeep Nagaiah embarked on their entrepreneurial journey, launching Paper and Pie with their first flagship outlet on Bengaluru’s vibrant Indira Nagar hi-street. Since then, the brand has steadily flourished, expanding with several more compact formats across the city in the past year. Notably, Paper and Pie captured international acclaim by representing India at the esteemed World of Coffee event in Dubai.

Sandeep Nagaiah & Vamsi Reddy, Co-Founders, Paper & Pie

The brand attracted attention with the launch of their first café in July 2022, presenting a completely unique look, feel, and design approach compared to conventional café formats. Equipped with a small conference room, a podcast studio, a full-fledged kitchen, and a dedicated brew bar, among other features, it sought to appeal to young entrepreneurs, creatives, and more.

Discussing the concept, Reddy explained that they intentionally crafted the flagship outlet to encompass various elements that appeal to young startup entrepreneurs and creatives. In the early stages, many startup entrepreneurs prefer flexible workspaces over traditional brick-and-mortar offices. They seek places where they can comfortably work while enjoying quality coffee and meals throughout the day. Additionally, such spaces offer the convenience of hosting client meetings, Reddy emphasized.

“Fresh food is the centre piece in our offering. We don’t compromise on that,” Reddy said.

Nevertheless, recognizing that the flagship model may not be universally applicable, the founders adapted their approach when they launched the second store in Whitefield in February 2023. They aimed to streamline operations to enhance cost-effectiveness and optimize returns by adjusting the layout to a more compact format.

Continue Exploring: abCoffee expands rapidly: 25 outlets opened in 20 months, aims for 150 by 2024

“We feel that the second format is more scalable and goes to multiple locations,” Reddy says.

In addition, they’ve introduced their third format—a kiosk model—at the RMZ Eco World, a prominent IT hub in the city. According to Reddy, this model offers a low initial investment while promising high returns.

The founders’ strategy involves focusing on consolidating their presence in the Bengaluru market before exploring opportunities elsewhere.

“We both are from the city, and we understand the demography of each micro market in the city,” Reddy said.

Reddy believes that by initially testing various formats within the Bengaluru market, they can effectively identify and mitigate potential challenges, thus minimizing errors when expanding beyond the city limits. “Bengaluru is a big city, we can have 15 to 20 stores here,” he informed.

Discussing their targets for 2024, Reddy mentioned that although they have three more stores scheduled to open next month, they primarily view 2024 as a year of preparation for the growth opportunities anticipated in 2025 and 2026.

“Now we are operating with independent kitchens at every outlet. We have to develop a hub and spoke model with minimum logistics as we grow the number of outlets,” he said.

He believes that the growing appetite for coffee as a beverage will create opportunities for all players in the market. “The aspiration is to develop Paper and Pie as one among the leading cafe brands in the country,” he said.

Currently operating as a bootstrapped brand, Reddy stated that they would eventually seek strategic partners or investors. To facilitate this, they have established an advisory committee to initiate discussions within the market.

Continue Exploring: Barista Coffee hits the 400-store mark, aiming for 500 stores by 2024

Titan completes acquisition of remaining 0.36% stake in CaratLane for INR 60 Cr

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February 28, 2024

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Titan, a Tata-owned watchmaker, announced on Tuesday the acquisition of the remaining 0.36% stake in omnichannel jewellery brand CaratLane for INR 60.08 Cr.

Before this, Titan held a 99.64% stake in CaratLane. Last year, the company acquired a 27.18% shareholding in the startup for INR 4,621 Cr, valuing it at nearly INR 17,000 Cr. The proposal received approval from the Competition Commission of India (CCI) in November of the same year.

Continue Exploring: Titan gets green light from CCI to acquire additional 27.18% stake in jewellery startup CaratLane

The latest agreement has also been struck at the same valuation, maintaining CaratLane’s value at the previous assessment of INR 16,666 Cr (nearly $2 Bn).

With this acquisition, CaratLane will now become a wholly-owned subsidiary of the watchmaking company. The 0.36% stake translates into 1.19 Lakh (1,19,489) shares in the jewellery brand, acquired at a face value of INR 2 each.

“As on date, CaratLane is a subsidiary of the Company wherein the Company held 99.64% of the total paid up capital of CaratLane. The completion of the aforesaid share purchase would result in CaratLane becoming a wholly owned subsidiary of the Company,” Titan said in a filing with the bourses.

The company anticipates finalizing the transaction by March 31st.

Established in 2008 by Mithun Sacheti and Srinivasa Gopalan, CaratLane is an omnichannel brand specializing in the production and retail of jewellery, operating in both India and the US.

CaratLane’s revenue reached INR 2,177 Cr in the fiscal year 2022-23 (FY23), marking an increase from INR 1,267 Cr in FY22 and INR 723 Cr in FY21. Despite this growth, its net profit experienced an 8% year-on-year (YoY) decline, amounting to INR 82 Cr during the same period.

Continue Exploring: CaratLane’s operating revenue soars by 73%, crossing INR 2,000 Cr milestone in FY23

It rivals established traditional retailers like Kalyan Jewellers and Malabar Gold, along with contemporary brands such as BlueStone and GIVA.

It’s worth noting that Titan initially acquired a majority stake in the jewellery brand at a valuation close to $69 million in 2016.

The Tata Group also includes startups such as 1mg and BigBasket within its portfolio.

Beyoung teams up with Gokwik to enhance digital footprint and combat RTO rates

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February 27, 2024

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Beyoung, a Udaipur-based fashion brand, has partnered with the New Delhi-based e-commerce enabler platform Gokwik.

The collaboration seeks to bolster Beyoung’s digital footprint in India by enhancing the reach of its cash-on-delivery (COD) service, while also tackling the issue of high return-to-origin (RTO) rates.

“Cash on delivery remains a preferred choice for many across India, and with GoKwik’s expertise, we aim to deepen our COD footprints, without worrying about the RTO losses. By utilising their advanced risk intelligence-based solutions, we hope to reach diverse consumer segments, further enhance our gross merchandise value (GMV), and effectively manage challenges related to COD orders,” said Shivam Soni, Founder, Beyoung.

Continue Exploring: GenZ-focused fashion startup Newme raises $5.4 Million in funding round led by Fireside Ventures

Since its inception in 2018, Beyoung has generated a revenue of over INR 250 crore. Over the past few years, it has acquired more than 1.5 million customers and successfully fulfilled over 20 lakh orders. Currently, with a gross merchandise value (GMV) of INR 150 crore, the brand aims to achieve a GMV of INR 600 crore in the next three years.

The company recently received funding from the Royal Office of Sheikh Tahnoon Bin Saeed Bin Tahnoon Al Nahyan from Abu Dhabi. With this investment, Beyoung plans to enhance its omnichannel presence worldwide with plans to launch over 300 stores globally in the next three years.

Continue Exploring: Indian D2C fashion brand Beyoung secures strategic investment from Abu Dhabi Royal Family, eyes global expansion

German perfume retailer Douglas set to unveil IPO plans despite market uncertainty

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February 27, 2024

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German perfume retailer Douglas is poised to announce its plans for an initial public offering (IPO) in the coming days, as reported by Reuters, citing two sources familiar with the matter. This move poses a significant test for Europe’s equity markets.

The group, majority-owned by CVC Capital Partners, is preparing to issue an intention to float on the Frankfurt bourse as soon as this week if markets hold up, according to sources who spoke on condition of anonymity.

Nonetheless, there is a possibility that the announcement could be postponed to the following Monday, as no definitive decision has been reached, one of the sources added.

A variety of macroeconomic data is anticipated this week, with U.S. inflation figures scheduled for Thursday, which could potentially impact market movements.

Continue Exploring: Shein considers London IPO amid US listing hurdles

Investment banks will begin to formally canvass investors following the intention to float announcement to define a valuation range for the share sale.

Reuters previously reported that Douglas aimed to go public by the end of March.

Spokespeople for the IPO declined to comment.

An announcement would come amid improving sentiment towards new stock listings after the successful IPOs of German defence contractor Renk and Athens International Airport earlier this month.

Growing consensus that interest rates have topped out has created a brighter backdrop for equity markets, while the CBOE Volatility Index – known as Wall Street’s fear gauge – remains at levels that bankers see as conducive for IPOs.

Besides Douglas, there are least four other major IPOs pencilled in for the first half of the year, sources have told Reuters.

Continue Exploring: Dairy tech startup Stellapps in advanced talks for $20 Million Series C funding, eyes expansion and IPO in next 3-4 years

Shein considers London IPO amid US listing hurdles

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February 27, 2024

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Fast-fashion company Shein is considering relocating its initial public offering from New York to London due to obstacles encountered in the US listing process, according to individuals familiar with the situation.

Shein, initially founded in China but now headquartered in Singapore, is in the preliminary stages of considering the London option. The company has assessed it as improbable that the US Securities and Exchange Commission will greenlight its IPO, according to sources who requested anonymity due to the confidential nature of the information.

According to the sources, Shein is continuing to progress with its application for listing in the US, which remains its favored destination. However, if the company opts to switch to London or another location, it would necessitate submitting a fresh overseas listing application with Chinese regulators, they explained. Additionally, Hong Kong or Singapore are also being contemplated as potential alternatives, as mentioned by two of the sources.

A spokesperson for Shein chose not to provide a comment.

Continue Exploring: Shein investors offer shares at 30% discount amid dwindling IPO prospects

A potential listing in London could provide a much-needed boost to the struggling market, following one of its most challenging years for IPOs in recent history. Bloomberg’s data shows that only around $1 billion was raised in the UK through IPOs last year, marking the lowest level in decades.

The UK is grappling with a challenge in retaining companies, as many are opting to relocate to the US and other destinations. Last year, chip designer Arm Holdings Plc chose a New York IPO over London, despite efforts by the UK government to encourage a domestic listing for the Cambridge-based company. Additionally, existing listed firms are also shifting overseas; earlier this month, TUI AG shareholders voted to delist from the London Stock Exchange and focus primarily on trading in Germany.

Since Didi Global Inc. was ousted from the New York stock exchange in a crackdown that effectively restricted the initial public offerings (IPOs) of Chinese companies, such offerings in the US have been predominantly small and infrequent. Amer Sports Inc.’s $1.6 billion IPO in February marked the largest Chinese-backed IPO in the US market since Didi’s $4.4 billion raise in 2021 and the first to surpass the $200 million mark during this period.

Shein has faced scrutiny from the US, with Senator Marco Rubio among those urging the SEC to prevent its listing, citing the need for greater transparency regarding its operations in China. Additionally, last year, a US Congress member requested an investigation into Shein’s cotton sourcing from Xinjiang. Moreover, US-China trade tensions have persisted for several years.

A trailblazer in the realm of ultra-rapid fashion, offering products like shirts and swimsuits priced as low as $2, Shein submitted paperwork for a US IPO last year, aiming for a valuation between $80 billion to $90 billion, according to individuals acquainted with the situation. However, private trades toward the end of 2023 assessed the company’s value significantly lower, around $50 billion.

Continue Exploring: Shein confidentially files for US IPO, targets 2024 debut amid challenging conditions

Home decor brand Chumbak expands presence with new store launch in Gurugram

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February 27, 2024

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Chumbak, a Bengaluru-based home decor brand, has opened a new store in Gurugram, as announced by the company on Monday.

The latest Chumbak outlet is situated at Good Earth City Centre Mall on Vikas Marg, Pocket H, Nirvana Country, Sector 50, Gurugram, Fatehpur, Haryana.

“We are excited to expand in Gurgaon to cater to our growing Chumbak community in the city. Like every Chumbak store, the store will bring to its shoppers all things that make them smile from souvenirs, homeware, and accessories to stuff they would love to gift,” said Shubhra Chadda, co-founder & director of product & design, Chumbak.

Continue Exploring: D2C homecare startup Happi Planet raises $1M funding from Fireside Ventures to expand offline presence and drive growth

The brand is offering shoppers an exclusive launch offer of 20% off for one month at the new store in Gurgaon. Additionally, the store will showcase art-deco pieces and souvenirs.

According to its official website, the company operates in numerous cities including Ahmedabad, Bhopal, Bengaluru, Bhubaneshwar, Calicut, Chandigarh, Chennai, Delhi, Gurugram, Guwahati, Hyderabad, Indore, Kochi, Kolkata, Lucknow, Mumbai, Nashik, Noida, and Pune, boasting a network of over 30 stores.

In January 2023, Goat Brands acquired Chumbak. Goat Brands Labs possesses a range of D2C brands.

The brand provides a vibrant and distinctive array of India-themed collectibles, décor items, art deco showpieces, dinnerware, kitchen accessories, thoughtfully crafted furnishings, and various other designer lifestyle products. Each item is meticulously designed with unwavering attention to detail and unique aesthetics.

According to information obtained from its official LinkedIn profile, the company recently secured $10.1 million in its latest Series D funding round.

Continue Exploring: D2C home care brand Koparo secures INR 6 Crore from 4P Capital Partners and Shark Tank India

Khadim India to demerge distribution business by September, expects margin improvement by 100-200 bps

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February 27, 2024

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Khadim India Ltd, a leading footwear company, is expecting to complete the demerger of its distribution business by September this year, as stated by an official on Monday. The company is hopeful that its margins will expand by 100-200 basis points by FY’26.

This strategic move is poised to unlock substantial value for its core retail business comprising approximately 848 stores under Khadim’s brand, which commands nearly 67% of the total revenue, he said.

Khadim’s Chief Financial Officer, Indrajit Chaudhuri, stated, “We are already in the process of demerger. Now, it is pending before the stock exchanges and then it will be placed before NCLT for its approval. We expect that the process will be completed by September. The demerger will be effected after the approvals are in place.”

Continue Exploring: Indian footwear industry set for exponential growth, projected to reach $90 Billion by 2030: GTRI Report

In an effort to enhance market focus and operational efficiency, KIL had previously announced its decision to separate its distribution business and manufacturing activities into KSR Footwear Ltd (KFL).

Chaudhuri projected that post-demerger, Khadim India‘s EBITDA margin would witness a substantial improvement, possibly by 100-200 basis points (bps) in its first full year of operation in FY’25-26.

“Now the EBITDA margin in retail is 17% and after demerger, we will be able to put greater focus, which will be reflected in the improvement of margins. We expect the retail business, which is currently at INR 500 crore, to surpass INR 600 crore by 2025-26,” he said.

Chaudhuri emphasised that the priorities of both businesses are distinct and cannot be adequately addressed within a single entity.

The distribution business is facing pressure, following the GST hike from 5% to 12% on footwear below MRP of INR 1,000 since January 2022.

“Owing to the GST structure change, the distribution business had become a drag on KIL, and its (retail) true value was not reflecting,” the official said.

This business, encompassing a vast network of 732 distributors, predominantly serves lower and middle-income consumers across India’s multi-brand outlets.

Accounting for 33% of the total turnover, it specialises in providing branded and affordable footwear across Tier I to Tier III cities and 96% of its products are manufactured in-house.

The retail business relies on Khadim’s outsourcing division to meet the dynamic demands of the market.

Chaudhuri acknowledged that demand remains subdued, particularly in rural areas, attributed to premiumisation trends.

However, he remains optimistic about an improvement in the demand scenario in the next one to two quarters.

Continue Exploring: D2C footwear brand Fausto makes foray into UAE market through Amazon

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