The investment will be used to assemble a high-calibre team and support the brand’s expansion efforts.
“With this funding, we are empowered to bolster our R&D investments while further expanding our product offerings with innovative and unique solutions for professionals as well as consumers,” said Nishant Gupta and Palash Pandey, Co-Founders, Renaura Wellness.
“With Series A closed, our aim is to ramp up talent acquisition and expand our team by recruiting skilled professionals who share our passion,” Gupta added.
Currently, Iluvia has a presence in more than 2,500 salons across 70 cities in India.
“We believe in Iluvia’s vision and are impressed with their dedication to creating truly transformative and revolutionary products which are highly efficacious and safer for consumers. At Fireside, our quest is on for brands that have an inherent value of goodness ingrained in every aspect of the product and Iluvia is a perfect match,” said Dipanjan Basu, Co-Founder of Fireside Ventures.
Established in 2015, Iluvia is a self-care brand offering products through its official website and available on multiple marketplaces such as Nykaa, Amazon, and Flipkart.
India’s consumer packaged goods (CPG) industry witnessed a balanced growth in 2023, as highlighted by a report from Bain & Company, a prominent global management consulting firm. The report underscores that despite inflationary pressures, the sector in India experienced gains in both retail sales value and volume.
The report, drawn from a survey of over 120 executives in consumer product companies worldwide, stated that emerging markets hold the greatest potential for volume growth in 2024
It said, emerging markets accounted for the vast majority of global volume gains.
“India was a standout example of balanced growth, with RSV (retail sales value) advancing by nearly 15 per cent since 2022, aided by consumers switching from local or unbranded products to bigger, international brands,” it said.
Volume and pricing were both under pressure in China, amid low consumer confidence, it said.
The consumer product industry experienced substantial growth in the past year, with the industry’s global RSV increasing nearly 10 percent year over year in 2023.
“While that surge is nearly double the 10-year average growth rate, three-quarters of it is likely due to price increases rather than volume gains. In the US and Europe, price increases accounted for 95 per cent of RSV growth,” it said.
The report further said that imbalance is not sustainable, and emerging markets will be key to driving profitable, volume-driven growth for consumer packaged goods in the years ahead.
While leading CPGs have increased prices by more than 20 per cent on average since the third quarter of 2021, that has been blunted by similar growth in the cost of goods sold.
“For top CPGs, the average EBIT margin remains near a 10-year low, and retailers have been looking to share their own margin pain with CPGs,” it said.
Juniper Hotels, operating hotels under the “Hyatt” brand, has unveiled details regarding its inaugural public offering. The offering, valued at INR 1,800 crore, will open for subscriptions on February 21 and conclude on February 23. Priced at INR 10 per share, the IPO consists solely of fresh equity and does not include any offer for sale (OFS) component.
The price range for the public offer will be disclosed shortly.
Approximately 75% of the IPO is earmarked for qualified institutional buyers, with 15% allocated to non-institutional investors, and the remaining 10% designated for retail investors.
The company plans to utilize the net proceeds amounting to INR 1,500 crore for repaying, prepaying, or redeeming certain existing borrowings (including settlement of accrued interest) obtained by the company and its subsidiaries, as well as for general corporate objectives.
Juniper Hotels is co-owned by Saraf Hotels and Two Seas Holdings, a subsidiary of the globally recognized hospitality giant, Hyatt Hotels Corporation.
Operating as a luxury hotel development and ownership firm, it holds a 20% share of the overall 1836 Hyatt-affiliated rooms in India as of June 2023.
The company oversees a varied collection, including seven hotels and serviced apartments.
The hotels and serviced apartments cover a range of classifications, including luxury, upper upscale, and upscale, situated across six key cities: Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi.
Notably, the Grand Hyatt Mumbai Hotel and Residences stands out as the largest hotel in India.
In the fiscal year 2023, operational revenue surged by 116%, reaching INR 667 crore compared to INR 309 crore in the previous year.
At the same time, the net loss decreased to INR 1.5 crore in fiscal 2023 from INR 188.03 crore in fiscal 2022.
JM Financial, CLSA India, and ICICI Securities serve as the book-running lead managers, while KFin Technologies acts as the registrar for the offering.
The equity shares are slated for listing on both the BSE and NSE.
In November of last year, the Kolkata-based Ambuja Neotia Group announced its acquisition of the Gurgaon-based boutique hotel chain Tree of Life Resorts & Hotels for an undisclosed sum.
The Ambuja Neotia Group currently possesses over 750 keys within its portfolio, managed by IHCL, with an additional 200 keys set to be added.
“In the first phase, we are solely providing Tree of Life with sales, marketing, distribution, training, loyalty and branding support. As things progress, we will assess further contributions and determine the number of properties to integrate onto the platform,” IHCL MD and CEO Puneet Chhatwal said.
“Whether and when we assume management responsibilities will also be decided over time. Initially, the hospitality brand will operate under the SeleQtions platform,” he added.
He said the ‘strategic’ move will facilitate the hospitality chain’s expansion into tier one and tier two cities.
“We intend to incorporate additional properties into the new platform that align with our brand rationale,” he added.
Harshavardhan Neotia, Chairman of the Ambuja Neotia Group, stated that the group acquired the chain last year due to recognizing a ‘burgeoning’ demand for boutique experiential luxury hotels post the Covid-19 pandemic.
“People began seeking out boutique accommodations, willing to pay a premium for luxury, privacy, and unique experiences, a trend less prevalent before the pandemic when larger hotels dominated. This shift in consumer preferences prompted us to see the potential in this space,” he said.
“The opportunity presented itself when the previous owner sought to divest. Upon discussions with IHCL, we found mutual resonance with the idea. Combining forces made sense as it complemented both our portfolios. Embarking on this venture alone would have been more challenging and time-consuming,” he added.
In November, Neotia mentioned that the group had identified several “stunning and bespoke” destinations like Jawai, Ranthambore, and Ayodhya, with plans to expand the Tree of Life collection in the coming days.
“We believe that achieving a portfolio of 100 properties within the next five to six years is feasible. These properties may include those owned by us, managed properties, as well as those under various arrangements,” said Neotia. “With IHCL’s support, our footprint suddenly expands significantly,” he added.
Chhatwal expressed confidence that reaching the milestone of 25 hotels by the end of 2026 should be achievable for the brand.
“There will be a fee structure in place, covering the top line, as well as fee payments to Taj. In the future the arrangement might change when all approvals are in place. In that case the company will be board managed and we will have our separate roles to play,” said Neotia.
IHCL mentioned that it is pacing ahead of its market guidance, having achieved a portfolio of over 300 hotels, with 90 hotels under development.
Sudhir Sitapati, Managing Director and Chief Executive Officer of Godrej Consumer Products
The FMCG market growth rate is expected to improve next fiscal year, according to Sudhir Sitapati, Managing Director and Chief Executive Officer of Godrej Consumer Products. This improvement will be led by a rebound in value growth, which was impacted this fiscal year due to a steep fall in commodity prices.
This year, the increase in volume has outpaced the increase in value, as most FMCG product prices have declined, according to the manufacturers of Good Knight mosquito repellent and Cinthol soaps.
Sitapati mentioned that commodity prices are currently stable to slightly positive, whereas wage inflation is on the rise. This will result in product prices being slightly higher than before in the coming quarters, ultimately contributing to a high single-digit value growth for the industry this calendar year.
“The water has found its own level as far as commodity prices. Unless there is a big geo-political factor, prices of palm oil and crude which are the biggest inputs for FMCG are expected to remain stable in 2024. This will improve overall industry growth rates next fiscal,” he said.
Godrej, the market leader in hair color in India and globally, boasts a complete portfolio in the hair care range. Sitapati mentioned that the company is evaluating options to expand its presence in the domestic market in this segment with newer categories like hair conditioners, treatment, and straighteners.
He mentioned that the company is currently gauging the market as it already offers these products through the salon channel under the brand name Godrej Professional. Depending on their success, a separate lineup may be introduced in retail stores. However, the company is not particularly interested in crowded categories such as shampoos and hair oils.
“Globally, we have a big hair care portfolio accounting for almost a third of our consolidated business. There are no definitive plans yet to launch those in India, but the potential remains,” said Sitapati.
The hair care market in India is valued at around INR 35,000 crore, encompassing products like shampoos, conditioners, hair colors, hair oils, and straighteners.
In its December quarter earnings, Godrej announced that India volumes grew by 12%, while revenue surged by 9%. However, despite this growth, revenue continued to trail volume expansion, primarily due to price declines in personal wash products. The company, positioned as the second-largest soap manufacturer, had previously raised prices of most soap packs by up to 25% during the peak of inflation in 2022. Yet, it has now opted to slash prices by up to 20%.
Irish Distillers chairman Nodjame Fouad expects India to become its second-largest market globally, driven by premiumisation and consumers experimenting across spirits after the Covid-19 pandemic.
Over the past three years, India has surpassed more than a dozen countries to become the third-largest market for the producer of Jameson whiskey, up from 17th place in 2020.
“India is a strategic market for us. It has quickly emerged to be one of our top markets. It has been, over the last number of years, growing in a way that it has outranked other markets. And we hope in the future for it to be our number two market. Our second-largest market is currently South Africa and our number one market is the United States. We will hopefully get there in the coming years,” Fouad said.
“India is a strategic market for us. There’s a massive consumer base. It’s a large whisky market, so we look at it as an important market for the strategic development of Jameson,” she added.
In 2023, India emerged as the leading market for whisky, with 400 million cases sold, constituting two-thirds of the country’s total liquor sales. While there’s been downward pressure on mass-market brands, premium spirits across various segments have shown resilience against the overall consumer slowdown. This resilience is fueled by increased consumption among millennials and a burgeoning middle class, which is increasingly opting for higher-priced beverages.
For instance, Scotch sales in India nearly doubled to 7.5 million cases (nine litres each) in 2022 from 3.9 million cases in 2020. However, the focus on Scotch sales can overshadow the significant progress made by other imported whiskies. For example, in 2015, sales of US whisky were under 50,000 nine-litre cases. By the end of 2022, however, sales had quadrupled, with a surge of 70% in that year alone, according to an IWSR report. Nevertheless, the performance of US whisky was eclipsed by Irish whisky, particularly Pernod Ricard’s Jameson, underscoring the importance of distribution and availability in driving sales.
“In 2015, annual sales of Irish whisky were less than 10,000 nine-litre cases. There were still only 50,000 cases in 2019, a level that US whisky had already achieved by 2015. But by 2021, Irish whisky outsold US whisky by 50,000 nine-litre cases, rising to 100,000 cases a year later,” said the IWSR report. “Between 2018 and 2022, Irish whisky sales have risen almost tenfold and growth was 80% in 2022 alone. Lockdowns were a key driver of growth for both US and Irish whisky, stimulating investigation, experimentation and repeat purchase.”
In India, Jameson dominates its segment, commanding approximately 95% market share. Additionally, it ranks among the top ten best-selling whisky brands globally. Irish Distillers, a subsidiary of the French spirits company Pernod Ricard, has witnessed Jameson achieve a remarkable compounded annual growth rate of 76% between 2017 and 2022, making it the fastest-growing whisky in its portfolio. The brand’s ability to appeal to consumers across various segments and age groups has been a key factor in its success, according to the company.
Unitus Capital served as the sole financial advisor to the company for the transaction.
The startup plans to utilize the newly acquired funds to broaden its operations across the nation and serve a larger customer base, including FPOs (Farmer Producer Organizations), food manufacturers, distributors, and retailers.
Established in 2020 by Debarshi Dutta, Ashutosh Singh, and Milind Borgikar, Ayekart offers fintech and supply chain solutions tailored for traditional businesses operating within the agrifood value chain.
Commenting on the funding, Co-Founder and CEO Debarshi Dutta said, “We understand the critical pain points that agrifood MSMEs face – the need for market linkages, access to finance, and an efficient technology ecosystem to enhance their businesses. To address these challenges, we have developed innovative fintech solutions tailored to empower FPOs and agrifood MSMEs.”
Ayekart operates in 18 states with over 9,000 active merchants on its platform. It claims to have facilitated more than 2.5 lakh transactions worth over INR 2.1 crore in lifetime GTV (Gross Traded Value) and has been profitable since its inception.
In 2022, the startup secured $5.5 million in a combination of debt and equity funding. This capital infusion aimed to offer financial and technological support to traditional businesses within the food and agriculture sector, facilitating their expansion.
Back then it said that it had plans to expand its services to 15 countries in the next five years.
In the agritech sector, KisanKonect recently secured $3.7 million in funding to expand its efforts in climate-smart agriculture initiatives, benefitting its network of 5,000 farmers.
Also, last year, Waycool was reported to be in talks with multiple investors, including sovereign funds, impact funds, and family offices, to raise funding in the range of $50 million to $70 million.
The 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. That round had been led by Japan-based SBI Investment and Evolvence Capital, and had also seen participation from existing investors like Tiger Global, Prosus, Accel and Matrix Partners India.
The company is currently in discussions to secure an additional $3 million in funding from SBI Investment, as revealed by its Founder and CEO, Utham Gowda.
“By supporting Captain Fresh, we are delighted to be able to reach and support more fishermen with improved economic opportunities, as well as to promote sustainable production and reduce wastage. We are also keen to support India’s food exports as a way to support global food security,” Abhinav Sinha, managing director and head of technology and telecoms at BII, said in a statement.
Both BII and SBI Investment are making their debut investments in the firm. Following this fundraising, Gowda will maintain a 19% ownership stake in the company. Matrix Partners will hold approximately 12.5%, while Accel and Ankur Capital will each have around 11 to 12%. Prosus and Tiger Global will each hold about 10%, as per Gowda’s statement.
The funds will primarily be directed towards expanding Captain Fresh’s operations in the US and European markets.
“We expect to become fully vertically integrated in these markets and evolve from being just an exporter to also distributing on our own (sic),” Gowda said.
Additionally, the company plans to invest in enhancing its supply chain in Southeast Asia, sourcing products from nations such as Indonesia and Malaysia.
The firm recently completed the acquisition of Paris-based shrimp cooker and distributor Senecrus as part of its European expansion strategy, as stated in a release.
Operating in a business-to-business (B2B) model, Captain Fresh supplies fish and seafood to sellers. According to Gowda, over the next two to three months, the company anticipates that more than 50% of its business will originate from the US market, compared to the previous range of 25-30%. Additionally, he mentioned that approximately 80-85% of the total business will be generated from the European and US markets.
Captain Fresh collaborates with retailers such as Metro, Auchan, and Carrefour, operating across France, Germany, and Poland, as well as in the Middle East. Approximately 2-3% of its business originates from India.
Gowda mentioned that the company had opted to shift its focus from India to international exports, as the latter offered a greater potential for profitability. He further stated that the company had already achieved profitability on a monthly basis and projected to attain full profitability in FY25, although specific figures were not disclosed.
Back in September, Gowda had said that international markets enabled the company to achieve Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins of over 15-20%, compared to a 3% EBITDA margin in India.
Orkla India, a subsidiary of the Norwegian industrial investment company Orkla ASA, has appointed Murali S as the CEO of Eastern, a key player in Kerala’s market for pure spices and masalas.
This leadership addition is in line with Orkla India’s recent announcement of restructuring into three business units: Eastern, MTR, and international business.
“With his proven track record and strategic acumen, we are confident that he will lead Eastern to new heights of success in the Kerala market,” Sanjay Sharma, CEO of Orkla India, said in a statement.
Murali will operate from Cochin, where he will guide the team in fortifying Orkla India’s presence in the Kerala market and driving forward the Eastern business unit.
Currently serving as CEO designate, Murali will assume full responsibility from Navas Meeran on April 1st.
“I am committed to leveraging Eastern’s strong market position and driving innovation to further enhance our brand presence in our core geographies,” said Murali.
With a career spanning more than thirty years, Murali has amassed extensive experience in the telecommunications and consumer goods industries. In previous positions, he held leadership roles at companies like Blow Plast and Vodafone Idea, serving as Operations Director and Senior Vice President, respectively.
Hospitality and travel-tech firm OYO on Thursday announced its foray into sports hospitality business shortlisting 100 hotels across 12 key cities, including Delhi, Chennai, and Bangalore, to cater to large sports events. The sports hospitality business aims to meet the unique needs of large sports events with a focus on providing end-to-end solutions, including providing accommodation to athletes and sports officials participating in various sports events, the company said in a statement.
Under the vertical, a wide array of accommodation options, ranging from budget-friendly to premium hotels, will be offered to ensure a comfortable and convenient stay to participants and attendees throughout the event, it added.
“The launch of our sports event management unit aligns with OYO’s commitment to continuous innovation and customer-centric solutions. With a focus on delivering quality hospitality, OYO plans to offer athletes a conducive and comfortable environment, ensuring they can fully concentrate on their training and competitions,” OYO Head, Government and Sports Hospitality Business, Pankaj Kumar said.
The company said it has identified 100 hotels in different categories across 12 cities, including Delhi, Chennai, Bangalore, Pune, Lucknow, Jaipur, Chandigarh, and Bhopal for the accommodation of athletes and sports officials.
Specialised packages and group booking options will be available to accommodate the unique needs of sports teams and large groups, it added.
OYO said it will engage with third-party agencies for catering to a diverse range of food options to suit the preferences and dietary requirements of athletes and attendees, and also transportation-related services.
Besides, it will also set up control rooms across all sports event venues to ensure seamless coordination and 24×7 emergency assistance.
The company said it has provided these services in more than 10 large-scale sports tournaments in 2023, including Khelo India Youth Games, Khelo India University Games, and 36th National Games, to assess its capabilities before launching the new initiative.
“As part of this initiative, OYO will also offer accommodation, catering, and transportation services for differently-abled sports person to create a more inclusive environment,” the company said, adding it has recently partnered with Khelo India Para Games, Para Kabaddi Impact Tournament, and Sardar Patel National Divyang Cricket Tournament and provided assistance to all the participants.
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