Delhi HC upholds Registrar of Companies’ decision to deny Reebok India’s conversion to Limited Liability Company

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February 21, 2024

The Delhi High Court has upheld the decision of the Registrar of Companies to deny the conversion of Reebok India Company from an ‘Unlimited Liability Company’ to a ‘Limited Liability Company’.

Dismissing Reebok India’s petition, Justice Subramonium Prasad said that the reasons given by the RoC in rejecting the Reebok’s application on the ground that various prosecutions have been filed by the Serious Fraud Investigation Office against it for offences under the Companies Act and the Indian Penal Code cannot said to be so perverse, especially keeping in mind the interest of shareholders and the interest of creditors.

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

“The anxiety on the part of the RoC that the creditors and stakeholder should not be left high and dry cannot be said to be completely unjustified,” Justice Prasad said.

“The registrar was also not provided with an NoC or undertaking from all the shareholders to support the conversion application and the petitioner(Reebok) did not even issue a public advertisement inviting objections from various creditors/stakeholders on the issue of conversion,” the HC said.

The Registrar of Companies (RoC) noted that Reebok experienced significant financial losses, with current liabilities surpassing assets by over INR 2100 crore. Additionally, the registrar highlighted that Reebok failed to furnish a no-objection certificate or undertaking from all shareholders to support its conversion application. Furthermore, Reebok did not issue a public advertisement inviting objections from creditors or stakeholders regarding the conversion, as stated in the High Court order.

Continue Exploring: Reebok unveils new flagship store in Bengaluru, boosting brand’s retail presence

Turkish jewellery brand Zen Diamond set to enter Indian markets with metro store rollout and online debut

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February 21, 2024

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Zen Diamond, a Turkey-based diamond jewellery brand, has announced its plans to establish a chain of stores in top Indian metros like Mumbai, Delhi, and Bangalore. Additionally, it aims to establish an online presence in the initial phase. Targeting aspirational young and mid-age consumers in India, the brand also plans to expand into tier 2 and tier 3 markets in subsequent phases.

The Zen Diamond group’s Chairman, Emil Guzelis, has joined forces with Neil Sonawala to spearhead the Zen Diamond business in India. Neil boasts extensive experience in developing jewellery distribution networks across Hong Kong, China, and Southeast Asia. Additionally, he has held a significant advisory position with the De Beers group and prominent retail chains throughout Southeast Asia, as stated by the company.

Continue Exploring: Jewellery consumption set for 10-12% value growth in FY24, driven by soaring gold prices: ICRA

“Given India’s anticipated status as the fastest-growing market for diamond jewellery over the next few decades, Zen Diamond aims to capitalize on this opportunity by becoming the preferred diamond jewellery brand for Indians,” Emil Guzelis said.

“For the growing number of online buyers who are tech-savvy and globally well-traveled, Zen Diamond aims to offer affordable access to international jewellery trends, redefining the Indian diamond jewellery experience through unparalleled customer service and in-store experiences,” added Neil Sonawala.

Established in Istanbul in 2000 by Emil Guzelis, Zen Diamond is a Turkish diamond jewellery brand with nearly 400 stores worldwide.

Continue Exploring: Fashion jewellery brand salty secures INR 5.4 Crore for team expansion and product innovation

Amazon to challenge Meesho with budget-friendly fashion vertical ‘Bazaar’

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February 21, 2024

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Amazon, the ecommerce major, is reportedly gearing up to launch its new vertical, Bazaar, showcasing budget-friendly, unbranded fashion and lifestyle products.

As per ET’s report, Amazon Bazaar is presently onboarding sellers and encouraging them to list unbranded products, including apparel, watches, shoes, jewellery, and luggage, all priced under INR 600.

According to sources familiar with the matter, the company is actively seeking to attract Indian value customers, especially as demand for mass-market products slows down and its growth rate decelerates.

“Bazaar is a new store on Amazon where you can sell your fashion and lifestyle products online at no extra charges, thus making it more profitable to run your business,” as per a document revealed by ET.

Continue Exploring: Meesho fastest growing e-commerce player; GMV tops $5 Billion: Alliance Bernstein Report

The delivery timelines for Amazon Bazaar products are expected to be two to three days, contrasting with its usual fast delivery for Prime members.

“Consumer cohorts at the lower end of the market typically do not prioritise faster deliveries… They (Amazon India) have lost out on the segment so far and essentially want to tap the typical Meesho customer,” the report said.

The market segment has already been explored by Meesho, supported by SoftBank, and Flipkart‘s Shopsy (accessible through a separate app). Reliance Industries, led by Mukesh Ambani, is also in the process of creating a budget-friendly platform called Ajio Street.

Continue Exploring: Meesho diversifies strategy, set to launch financial services and expand grocery delivery for enhanced profitability

Amazon proposes eliminating referral fees for merchants, a particularly significant move for products with a low average selling price (ASP). Meesho, boasting an ASP ranging from INR 300 to 350, operates under a commission-free model, instead generating revenue through advertising and offering logistics services to sellers.

It’s worth noting that Meesho, unlike e-commerce behemoths Amazon and Flipkart, does not possess or manage warehouses and logistics operations.

Continue Exploring: Amazon India charts new course: Partners with IWAI to utilize inland waterways for package shipping

The recent development follows closely behind Amazon’s venture into the logistics sector in India, marked by the introduction of a new division named Amazon Shipping. Initially, the company will focus on managing non-Amazon orders as it steps into this domain. Amazon has commenced partnerships with direct-to-consumer (D2C) brands, logistics aggregators, and other enterprises directly serving consumers to launch this innovative initiative.

This comes at a time when Amazon Seller Services, the marketplace business of Amazon India, has received INR 830 Cr from its US parent. As part of this capital injection, the company has allocated 830 Mn 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

This recent investment comes after Amazon injected INR 350 Cr into its fintech arm, Amazon Pay, on January 19. With this, Amazon’s cumulative investment in its Indian ventures for the year surpasses INR 1,000 Cr.

Retailers report modest 5% year-on-year growth in January sales: RAI Survey

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February 21, 2024

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According to a survey conducted by the Retailers Association of India (RAI), retail sales in January 2024 saw a modest increase of 5% compared to January 2023 levels.

Despite the festive season, October and November saw only a 7% growth, while December experienced a 4% growth, rendering the October to December quarter sluggish for retailers.

In contrast to January 2023, retail establishments have exhibited a disheartening pattern this January. Although the wedding season bolstered the jewellery, food, and grocery sectors, the majority of other categories experienced only marginal growth.

Continue Exploring: Retail sales in India plunge as consumer sentiment remains subdued; recovery expected after two to three quarters

Many retailers have reported experiencing declining sales on a like-for-like basis. Although there has been growth in the northern region of India, areas in the east and south have seen negative growth due to subdued consumer demand for non-essential products.

“Even CDIT (consumer durables and IT) retailers have found the month of January to be challenged for growth. Many garment retailers have found growth challenging in spite of it being discount season for non-occasion wear garments,” said Kumar Rajagopalan, CEO, Retailers Association of India (RAI).

Retail establishments in various regions have shown an increase in sales compared to January 2023 levels, with West India leading at 6% growth, followed by North and South India at 5% each, and East India lagging behind with only a 3% growth rate.

Across different categories, Quick Service Restaurants (QSR), food & grocery, and jewellery witnessed a 9% growth each, while sports goods saw an 8% increase, and beauty products experienced a 6% rise compared to sales figures from January 2023.

Continue Exploring: Indian retail giants scale back store expansion amidst slowing consumption trends

Animal nutrition brand eFeed secures INR 1 Crore funding from Klub for expansion

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February 21, 2024

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Animal management and nutrition brand eFeed has secured INR 1 crore from revenue-based financing platform Klub.

In January 2023, the Pune-based startup had secured $1 million (around INR 8.2 crore) in a seed round led by Omnivore.

The newly acquired funds will be directed towards expanding capacity, increasing it from 50 tons to 500 tons, to ensure sufficient product output for expansion into various geographical regions.

Founded in 2021 by Kumar Ranjan, Ravi Chauhan, and Ankit Patel, eFeed offers nutritional supplements for livestock. The company manufactures supplements with vitamins, minerals, and microbes, aimed at enhancing the quality of milk produced by cattle. These supplements are designed to provide cattle with essential nutrients for sustaining a longer, healthier life and improving gut health.

Continue Exploring: Petcare startup Supertails raises $15 Million in funding led by RPSG Capital Ventures for expansion and product scaling

In 2023, eFeed saw a 10x financial growth by selling its innovative life cycle-based nutrition products. The company aims to reach an annual revenue target of INR 100 crores by the fiscal year 2025.

Kumar Ranjan, Founder of eFeed, commented on the company’s achievements, stating, “This past year has been a testament to our commitment to sustainable growth and making a positive difference in farmers’ lives. We’ve seen exponential growth, scaling our revenue from INR 10 lakh per month in January to 1 crore per month in 2023. Our focus on profitability and sustainable scaling has been key to our success.”

In the upcoming year, eFeed aims to bolster its influence and broaden its reach while maintaining a strong focus on profitability and sustainable expansion. Presently, the company has established a solid presence in Madhya Pradesh, Uttar Pradesh, and Bihar, with its market share in Maharashtra on the rise. With one lakh farmers already integrated into its ecosystem, eFeed aims to extend its reach to ten lakh farmers by 2024. Prioritizing the sustainable utilization of working capital for long-term scalability, the company currently operates at a 25% blended gross margin and maintains positive CM 2.

Ishita Verma, Chief Operating Officer of Klub, praised eFeed’s accomplishments and highlighted Klub’s role in accelerating their growth in India, stating, “The Indian agritech sector is set to address the $34 billion market by 2027. eFeed’s dedication to innovation and sustainability aligns perfectly with Klub’s mission to support impactful ventures. We’re proud to partner with eFeed in their journey towards profitability and sustainable growth, driving positive change in the agriculture sector.”

Continue Exploring: Pet care startup Papa Pawsome secures $400K in seed funding led by Indian Angel Network

Walko Food’s NIC raises $20 Million in funding round led by Jungle Ventures

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February 21, 2024

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Walko Food‘s NIC, a renowned ice cream brand and quick-service restaurant (QSR), has secured $20 million in a recent funding round, spearheaded by its existing investor, Jungle Ventures.

This marks Jungle’s second investment in Walko Food in under a year. The Singaporean VC firm spearheaded an $11 million funding round for Walko last year in May.

Continue Exploring: Walko Food’s NIC ice cream brand secures $11 Million investment in funding round led by Jungle Ventures

The newly acquired capital will further propel Walko’s expansion across its product portfolio and customer reach, accelerating its penetration into the Indian ice cream market.

Speaking on the latest investment, Sanjiv Shah, Director, Walko Food Company said, “The capital raised will help to expand Walko’s operational capacity, enrich our product offerings, and diversify with the mass-market ice cream brand – Yummo.”

Established in 2012 by Jeetendra Bhandari, Sanjiv Shah, and Raj Bhandari, Walko offers premium ice creams, kulfis, frozen desserts, and thick shakes through its brands NIC, Grameen Kulfi, Yummo, and Cream Pot. These products are accessible on various food tech and quick commerce platforms like Instamart, Zomato, Swiggy, Blinkit, and others.

“Walko is tapping into a multi-billion-dollar opportunity in the Indian ice cream industry. In recent years, ice cream has captivated Indian consumers, causing a structural shift in dessert consumption patterns from traditional Indian sweets to ice cream. Walko has showcased leadership in this segment with a diverse range of brands spanning various price points,” said Arpit Beri, Partner, India Investments, Jungle Ventures.

According to Walko, it has achieved a Compound Annual Growth Rate (CAGR) of 90% over the past five years and has established its presence in more than 100 cities throughout India.

Earlier, the company enlisted celebrity Rashmika Mandanna as its brand ambassador for its premium ice cream brand NIC to boost brand presence. Additionally, it recently partnered with Zepto to distribute 250,000 cups of NIC ice cream.

Continue Exploring: NIC Ice Creams unveils Rashmika Mandanna as inaugural brand ambassador, elevating the ice cream experience nationwide

NIC competes with both emerging and well-established brands, including Cream and Fudge, Havmor, Baskin Robbins, Kwality Walls, Mother Dairy, Cream Bell, Amul, and Vadilal.

In FY23, NIC saw a 32% increase in revenue from operations to INR 170 crore, compared to INR 128 crore in FY22. According to the company’s consolidated financial statement, it recorded a loss of INR 26.55 crore in FY23, contrasting with a profit of INR 85 lakh in the previous year.

According to Statista, the Indian ice cream market is projected to grow annually by 10.86% between 2024 and 2028, reaching $5.33 billion in 2024. The volume is expected to reach 2.16 billion kg by 2028, with a growth rate of 11.1% in 2025.

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

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February 21, 2024

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The demand for daily groceries, essentials, and household products is projected to deteriorate over the next few quarters in India, according to global research firm Kantar. This further delays the timeline for volume recovery in the fast-moving consumer goods (FMCG) industry, following a more pronounced slowdown in the December quarter.

In the December quarter, overall product volumes, reflecting consumer purchases, saw a 5.2% increase, slightly lower than the 6.9% growth observed in the September quarter. According to data from Kantar, sales volumes in rural areas rose by 4.8%, while in urban centers, they increased by 5.6% compared to the previous year. Kantar’s monitoring encompasses both branded and unorganized products, including bulk unpackaged goods. Conversely, Nielsen focuses mainly on tracking branded retail sales.

“We are likely to see another drop in the next quarter, and the current trend of slowdown is expected to stay deep into 2024,” said K Ramakrishnan, managing director, South Asia, Worldpanel division, Kantar. “The mild slowdown we saw in the September quarter became even more pronounced in the December quarter.”

Continue Exploring: NielsenIQ forecasts 4.5-6.5% growth for FMCG sector in FY24; volume surges by 6.4% in Q4 2023 as urban-rural gap narrows

Ramakrishnan highlighted that the slowdown in demand was particularly noticeable in the food sector. “Growth here stumbled to 5.8% last quarter, from a strong 8.2% in the previous quarter,” he said.

The consumer industry in India, known for its price sensitivity, experienced a demand slump as companies raised prices by nearly 25% over the last two years to counter rising input costs. These costs initially surged due to global supply chain disruptions triggered by restrictions on mobility and business operations aimed at controlling the spread of the coronavirus. Furthermore, the subsequent combination of historically low policy rates in major economies and the conflict in Ukraine led to a sharp increase in commodity prices.

However, over the past three quarters, companies have been slashing prices amid visible consumer preference in favor of cheaper products, but the strategy hasn’t helped boost volumes just yet.

Companies, too, believe demand revival will have to wait.

“I believe it will require a couple of quarters for the recovery to materialize. Rural consumption is still facing significant pressure stemming from liquidity issues,” stated Mohit Malhotra, CEO of Dabur. “We’re observing an increase in food prices as well. Therefore, we can’t consider ourselves out of the woods until rural demand rebounds.”

The FMCG market in India saw growth of 6.1% in 2023, contrasting with a 0.1% decline in 2022, primarily driven by performance between April and September last year.

Continue Exploring: Indian FMCG sector eyes robust growth in 2024 amidst favorable market conditions

Chaigram expands footprint with 15th store launch in Kolkata, eyes aggressive growth targets

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February 21, 2024

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Kolkata-based tea chain, Chaigram, has unveiled its 15th store in the city, as revealed by a company official on social media on Monday. The new establishment, dubbed Chaigram Canteen, is situated in Sulekha, Jadavpur, Kolkata.

“We are thrilled to announce the launch of the 15th outlet of Chaigram at Sulekha more Jadavpur, Kolkata. On behalf of the team Chaigram we would love to thank all well-wishers, investors, channel partners, supply chain partners and vendors who are involved in our journey so far,” said Anirban Dey, Co-Founder of Chaigram in a LinkedIn post.

Chaigram runs its establishments under various brand names including Chaigram, Chaigram Canteen, The 99 Thali Shop, The Calcutta Street Food, and The Republic of Calcutta. All these stores are situated in Kolkata, with each brand’s outlet located in close proximity to the others.

Continue Exploring: Chaigram expands swiftly: Unveils 14 new stores in just 22 months

“Our plan is to open 100 outlets in Eastern India by another couple of years,” Dey said on social media. Additionally, the brand aims to open 25 new company-owned and operated (COCO) outlets in 2024.

Chaigram was established in 2020 with five team members, and today the brand has grown to employ over 200 members.

According to the company’s official website, the brand has served more than 5,000 customers to date, providing a wide array of over 800 curated products across 40 product categories.

Continue Exploring: Chai Sutta Bar launches its new tea brand ‘Maatea’

Flipkart explores buyout of cash-strapped Dunzo

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February 21, 2024

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Flipkart, a major ecommerce platform backed by Walmart, is reportedly exploring the acquisition of cash-starved hyperlocal delivery startup Dunzo.

According to a TechCrunch report, complexities around Reliance-backed Dunzo’s ownership structure have made it difficult for both parties to reach a deal.

It’s important to highlight that Dunzo has been grappling with a cash shortage for nearly a year. This has led the startup to implement numerous rounds of layoffs and suspend salary payments to employees for several months. Additionally, the company experienced the departure of several key board members and its co-founder, Dalvir Suri, last year.

Continue Exploring: Dunzo Co-Founder Dalvir Suri announces departure after six years of service

According to the report, discussions regarding the acquisition between Flipkart and Dunzo are ongoing. Nevertheless, the deal has not materialized yet, partly because Flipkart is uncertain about the aspects it would be able to incorporate through the acquisition.

Dunzo has multiple IP relationships with Reliance Retail. Furthermore, as the largest investor in Dunzo, the Reliance Group company holds considerable sway and has reportedly not yet approved the deal.

Emails sent to Dunzo and Flipkart did not elicit a response.

According to the report, Flipkart recognizes the value of specific assets within Dunzo, particularly its business-to-business offerings in the hyperlocal delivery sector.

Established in 2015 by Kabeer Biswas, Suri, Mukund Jha, and Ankur Aggarwal, Dunzo connects consumers with nearby stores and facilitates deliveries of products including groceries, medicines, and food, among other daily needs. Though the startup entered the quick commerce space with Dunzo Daily, it only resulted in more cash burn for the company.

In fact, the startup’s major funding round from Reliance Retail in January 2022 was to support its quick commerce operations and strengthen its B2B business.

Nonetheless, its business has faced challenges in expanding at the same pace as the leading quick-commerce giants such as Blinkit, Zepto, and Swiggy Instamart. Even in the B2B sphere, Dunzo encountered stiff competition from Porter, Shiprocket, as well as Zomato and Ola.

Continue Exploring: Cash-strapped Dunzo promises to settle outstanding payments to former employees by March-end

Dunzo has secured approximately $457 million across various funding rounds to date. In addition to Reliance, notable investors on its cap table include Google, Lightbox, Lightrock, and Alteria Capital.

Amid the ongoing challenges, Dunzo saw its losses almost quadruple year-on-year to INR 1,801 crore in FY23. Nevertheless, there was a remarkable growth in operating revenue, which stood at INR 226.6 crore during the year, marking a 317% YoY increase.

Meanwhile, reports have emerged indicating that PhonePe, a major fintech firm backed by Walmart and previously associated with Flipkart until its separation in 2022, is exploring an investment opportunity in Dunzo.

Radisson Blu, Kaushambi sets the bar high with a series of dynamic events and culinary delights throughout January

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February 20, 2024

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Radisson Blu, Kaushambi, known for its dedication to superior hospitality and innovative event coordination, successfully executed a range of dynamic and captivating events throughout January. Whether immersing in cultural festivities or savoring gourmet delights, Radisson Blu, Kaushambi, delivered an exceptional experience catering to visitors with varied interests and tastes.

Ashwani Kaushik, Cluster F&B Manager, of Radisson Blu, Kaushambi, said, “We are delighted to have hosted a diverse range of events at Radisson Blu, Kaushambi throughout January. Each event was thoughtfully organized to offer our guests an immersive and engaging experience. Furthermore, in February, we are excited to continue our series of events by organizing themed brunches and other activities. We look forward to offering our guests unforgettable experiences that they will cherish in the coming future.”

Continue Exploring: Radisson partners with EaseMyTrip and Jeewani Group for second hotel venture in Ayodhya

During the series of events, Radisson Blu arranged a New Year’s brunch and dinner, a Republic Day brunch, and a Lucknow Food Festival named ‘Lazzat e Awadh’. Additionally, Radisson Blu hosted Theme Brunches featuring diverse cuisines from around the world.

The dynamic events showcased the talents of Radisson Blu’s expert chefs, who skillfully crafted specially designed dishes to lead diners on an unforgettable culinary adventure. Meticulously curated menus featured an array of exclusive dishes, inviting guests to savor global flavors that enhanced their dining experience. With such remarkable events and innovative menus, Radisson Blu, Kaushambi, continues to push boundaries and establish new benchmarks of excellence in the highly competitive hospitality industry.

Continue Exploring: Radisson Hotel Group expands footprint with Park Inn’s grand opening in Ayodhya

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