Consumer goods manufacturer Dabur announced on Wednesday its plans to establish a new manufacturing unit in south India, with a slated investment of INR 135 crore for the project. This facility is set to produce a variety of Dabur’s Ayurvedic Healthcare, personal care, and home care products, encompassing popular items like Dabur Honey, Dabur Red Paste, and Odonil air fresheners, according to a statement from Dabur India.
In a meeting held on Wednesday, the board of the indigenous FMCG and Ayurvedic products manufacturer sanctioned an investment of INR 135 crore for the establishment of a greenfield facility in southern India, as per the company’s statement.
“Our business has scaled up in south India and today accounts for 18-20 per cent of Dabur’s domestic business. With south India’s contribution increasing, we have decided to establish a new manufacturing facility there to better cater to the local demand,” Dabur India CEO Mohit Malhotra said.
This marks the company’s 14th domestic manufacturing site, adding to its portfolio of brands including Dabur Amla, Dabur Vatika, and the juice brand Real.
“This is not only an opportunity to bring more jobs to the region, but also allows us to further expand our manufacturing capabilities and meet the growing need for Dabur products in south India,” he added.
PharmEasy, the Mumbai-based ePharmacy startup, marked a significant milestone as its operating revenue surpassed the INR 6,000 Crore mark in the financial year concluding on March 31, 2023. This unicorn reported a substantial 16% surge, reaching an operating revenue of INR 6,643.9 Crores in FY23, demonstrating notable growth from INR 5,728.8 Crores in the preceding fiscal year.
The startup predominantly derives its revenue from the sales of medicines on its marketplace. In the fiscal year 2022-23, it achieved a total revenue of INR 5,925.3 Crores from the sale of pharmaceutical and cosmetic products, and an additional INR 701.2 Crores from diagnostic and other services. In the preceding fiscal year (FY22), the earnings from medicine sales amounted to INR 5,229.9 Crores, while the revenue from diagnostic and other services reached INR 417.8 Crores.
Taking into account other sources of income, the total revenue for the startup reached INR 6,699.7 Crores, reflecting a 15% growth compared to the INR 5,781 Crores reported in the preceding fiscal year.
Nevertheless, there was a notable surge in net loss, rising by over 31% to INR 5,211.7 Crores in FY23 from INR 3,992.4 Crores in FY22, primarily attributed to an impairment loss of INR 2,921.9 Crores incurred during the review period. When excluding the impact of the impairment loss, PharmEasy’s net loss exhibited a 16% decrease, amounting to INR 2,289.8 Crores in the year under review as opposed to INR 2,731.7 Crores in FY22.
The startup witnessed a modest 6% growth in total expenditure, reaching INR 8,974 Crores from INR 8,491.5 Crores in FY22.
PharmEasy’s Revenue Breakdown in FY23:
The startup’s procurement cost constituted about 63% of the total expenditure. In FY23, there was a 12% increase in PharmEasy’s procurement cost, amounting to INR 5,730.8 Crores, compared to INR 5,113 Crores in the previous year.
The startup successfully reduced its employee cost by 12%, achieving INR 1,283.3 Crores in FY23 compared to INR 1,458.9 Crores in the preceding fiscal year. It’s worth noting that the startup implemented several rounds of layoffs in both 2022 and 2023.
With the aim of limiting its expenditure, the startup reduced its marketing cost by more than 50% to INR 235 Crores in FY23, down from INR 494 Crores in FY22.
Having abandoned its IPO plans in 2022, PharmEasy encountered a significant cash shortage last year. However, it recently successfully secured INR 3,500 Crores (approximately $424 million) through a rights issue.
The startup announced its intention to use a portion of the proceeds from the rights issue to settle some of its outstanding debt.
Similar to the edtech startup BYJU’S, PharmEasy has been making efforts to repay the debt it acquired from Goldman Sachs. Previously, the startup violated its loan covenant terms with Goldman Sachs within a year of securing the high-cost debt.
According to the loan terms, the startup was obligated to secure an equity round of approximately INR 1,000 Crores ($120 million) but did not fulfill this requirement. The company had initially raised the debt to settle a prior obligation incurred for the acquisition of Thyrocare.
In the midst of these developments, PharmEasy appointed Yatharth Bhargova as the new Group CFO for its parent entity, API Holdings Private Limited, last year. With a capital raised of approximately $1 billion to date, PharmEasy competes with notable backers such as B Capital, Temasek, Eight Roads Ventures, Prosus, and Bessemer Venture Partners. The company competes with rivals like Tata 1mg, MediBuddy, and Practo in the online pharmacy market.
Ice cream brand Havmor has opened its ice cream parlour, Havefunn, in Nadiad, Gujarat, according to a statement released by the company on Tuesday.
This brings the total count of Havfunn ice cream parlours to 54 in Gujarat and 234 across India, as mentioned in the release.
The Havfunn Parlours offers a variety of scoops, cakes, sundaes, and shakes. The recently opened parlour has a store size of 495 square feet.
The launch of this Havfunn Parlour aligns with the brand’s growth plans for 2024, opening avenues for both consumers and potential franchisees. Havmor serves consumers across more than 21 states and union territories.
With over 80 years in existence, Havmor Ice Cream, a division of LOTTE Wellfood Co. Ltd., presents a diverse range of flavors. These span from the indigenous ‘paan ice cream’ and ‘laddoo ice cream’ to options like Mocha, Nutty Belgian dark chocolate, and Ice Cream Cakes.
On Wednesday, Adani Wilmar, the FMCG division of the Adani Group, reported an 18% decrease in its profit for the December quarter on a year-on-year basis. The profit stood at INR 200.9 crore, contrasting with the INR 246.1 crore reported in the corresponding quarter of the previous year.
In the September quarter of FY24, the company incurred a loss of INR 130.7 crore.
The company witnessed a 17% year-on-year decline in revenue, amounting to INR 12,828.3 crore compared to INR 15,438 crore in the corresponding quarter of the previous year.
Nevertheless, the company attained its second-highest EBITDA to date, amounting to INR 504 crores in Q3.
The company’s profitability has once more stabilized, recording an EBITDA of INR 504 crore in Q3, following two quarters of subdued profits attributed to high-cost inventory and hedge disalignment. According to a BSE filing, the Bangladesh subsidiary’s profitability remains under pressure due to local currency issues.
“The revenues from the branded products in the domestic market, under the Food & FMCG segment have been growing at 40%+ YoY in the past 9 quarters enabling us to close FY’24 with an estimated ~INR 5,000 crore of revenue in the segment,” said Angshu Mallick, MD & CEO, Adani Wilmar.
“We are putting our energies in rapidly scaling up our distribution network for General Trade to realize the immense opportunity available in the packaged staple foods. At the same time, we are developing our HORECA and Exports channels which will continue to witness much faster growth in the near future,” Mallick said.
Adani Wilmar’s edible oil volume remained unchanged year-over-year in Q3, but experienced an 8% growth during the first nine months of FY24. Meanwhile, branded products saw a 3% year-over-year growth in Q3 and a substantial 15% increase in the nine-month period of FY24.
In Q3, the edible oil segment generated INR 9,711 crores in revenue, reflecting a 7% sequential growth from Q2. However, in year-over-year (YoY) terms, the revenue appears to be 23% lower in Q3 FY24. This YoY decline is primarily attributed to reduced product pricing throughout the year, aligning with decreased raw-material costs.
The Food & FMCG sector, comprising items like wheat flour, rice, pulses, besan, sugar, poha, and soap, maintained strong performance. In the quarter, the segment witnessed a 25% year-over-year revenue increase, driven by a substantial underlying volume growth of 17% year-over-year.
During the first nine months of fiscal year 2024, the Food & FMCG segment achieved a turnover of INR 3,653 crores, reflecting a substantial year-over-year growth of 26%.
For the past nine consecutive quarters, there has been a consistent year-over-year growth of over 40% in the revenue of branded products in the domestic market.
The volume of industry essentials experienced a 17% year-over-year growth in Q3’24 and a 21% year-over-year growth in the first nine months of fiscal year 2024, driven by the expansion of Castor & Oleochemical businesses. The segment achieved a revenue of INR 1,844 in Q3 and INR 5,777 in 9M FY’24.
The Indian Sugar Mills’ Association (ISMA) has projected a 10% decrease in India’s gross sugar production for the current marketing year, ending in September. The estimate, which excludes any diversion for ethanol, anticipates a decline to 330.5 lakh tonnes. This decrease is attributed to expected lower output in Maharashtra and Karnataka, as per ISMA’s second advance estimates for the 2023-24 marketing year, released on Wednesday.
The industry organization has projected a gross sugar production of approximately 330.5 lakh tonnes in the fiscal year 2023-24, contrasting with the previous year’s figure of 366.2 lakh tonnes. Maharashtra’s projected gross production is expected to decrease from 118.5 lakh tonnes to 99.9 lakh tonnes, and Karnataka may see a decline from 65.8 lakh tonnes to 49.7 lakh tonnes.
In Uttar Pradesh, the gross output is seen increasing marginally to 119.9 lakh tonnes from 118.9 lakh tonnes during the period under review.
“The government has so far allowed sugar diversion of only 17 lakh tonnes for production of ethanol via sugarcane juice/B-heavy molasses for 2023-24. This would mean net sugar production could be around 313.5 lakh tonnes,” ISMA said in a statement.
During the 2022-23 marketing year, net sugar production amounted to 328.2 lakh tonnes, including the diversion of 38 lakh tonnes for ethanol production from sugarcane juice and B-heavy molasses. However, with the government permitting limited diversion for the current year, there is an expected 4.5% decrease in net sugar production.
Considering an opening stock of about 56 lakh tonnes on October 1, 2023, domestic consumption of 285 lakh tonnes and the estimated net production of 313.5 lakh tonnes, ISMA said the closing stocks would be comfortable around 84.5 lakh tonnes as on September 30, 2024.
“We believe that the government may now easily allow around 18 lakh tonnes of additional sugar diversion for production of ethanol in the current ESY (Ethanol Supply Year). Even then, closing stock will be sufficient enough to cater around three months into the next season,” the association said.
Meanwhile, ISMA said 187.2 lakh tonnes of sugar has been produced during the October-January period of 2023-24 marketing year as against around 195 lakh tonnes in the corresponding period of the previous year.
According to the latest research, shifting to a vegan diet can activate responses related to innate immunity, the immune system one is born with. Conversely, adopting a keto diet—characterized by high fat and low carbs—may initiate responses typically associated with adaptive immunity, the immune system developed over time in response to external infections and vaccinations.
Alongside modifications in the immune system, shifts in the participants’ gut microbiome were also identified by researchers at the National Institutes of Health in the US. However, they underscored the need for additional research before deeming these alterations in immunity and gut composition as ‘beneficial’ or ‘detrimental,’ as outlined in their study published in the journal Nature Medicine.
The team mentioned that the impact of the findings on therapeutic nutritional interventions, specifically in the context of diseases like cancer or inflammatory conditions, is still unknown.
For the study, researchers closely monitored the biological responses of 20 participants over a two-week period. The participants were randomly divided into two groups, each assigned either a vegan or a keto diet. Using a “multi-omics” approach, the team analyzed multiple data sets to evaluate the body’s biochemical, cellular, metabolic, and immune responses, in addition to examining changes in the microbiome.
Upon analysis of the data, it became evident that the keto diet exhibited a greater influence on proteins in both the blood and blood plasma, as well as in the brain and bone marrow, when compared to the vegan diet.
It was also discovered that the vegan diet stimulated more pathways associated with red blood cells, including those responsible for haemoglobin production. This effect is likely attributed to the diet’s rich iron content, according to their findings.
The researchers also noted that individuals following the vegan diet, characterized by 10 percent fat and 75 percent carbohydrates, opted for a lower calorie intake compared to those adhering to the keto diet, which comprised approximately 75 percent fat and 10 percent carbohydrates.
The researchers observed distinctive metabolic and immune system changes resulting from both diets, even considering the diversity among participants in terms of ethnicity, race, gender, body mass index (BMI), and age.
According to the findings, the immune system exhibited a surprisingly swift response to nutritional interventions, indicating the potential for customizing diets to prevent or complement the treatment of diseases. This could involve slowing down processes associated with conditions like cancer or neurodegenerative disorders. Consequently, the researchers emphasized the necessity for further investigation to explore the specific impacts of these nutritional interventions on different facets of the immune system.
Dabur India Ltd, a prominent homegrown FMCG company, announced a 6.24% rise in its consolidated net profit, reaching INR 506.44 crore for the third quarter concluding in December 2023. In the corresponding period the previous year, the company recorded a net profit of INR 476.65 crore, as disclosed in a filing with the BSE.
The revenue from operations increased by 7 percent to INR 3,255.06 crore in the quarter under review, compared to INR 3,043.17 crore in the corresponding quarter of the previous fiscal year.
This was “driven by steady performance of both the Home & Personal care and Food & Beverages business,” said an earning statement from the company which owns brands such as Dabur Amla, Dabur Vatika, and juice brand Real.
Jubilant Foodworks Limited, the company behind popular fast-food brands Domino’s Pizza and Dunkin’ Donuts, reported a decrease of 18.2% in its consolidated net profit for the third quarter (Q2) ending December 2023. The net profit stood at INR 65.70 crore, down from INR 80.36 crore during the same period in the previous fiscal year, as stated in a BSE filing on Wednesday.
Nevertheless, its overall revenue increased to INR 1,382.27 crore in the third quarter of FY24, compared to the total income of INR 1,341.38 crore in the third quarter of FY23.
The total expenditures of the company for the December quarter also grew to INR 1,311.9 crore in Q3 FY24, in contrast to the total expenses of INR 1,229.8 crore in the corresponding period of the previous fiscal year, as stated in the regulatory filing.
Lotte Wellfood, a Korea-based FMCG company, has announced its plan to set up a new manufacturing unit in Haryana for the production of Lotte Pepero. The FMCG giant will invest over INR 200 crore in the establishment of this advanced manufacturing facility.
“This investment aims to strengthen the position of Lotte brands in India, a country with a confectionery market worth approximately 27,000 Cr,” said Lee Chang Yeop, CEO, Lotte Wellfood.
The proposed production line, set to be operational from mid-2025, will be positioned alongside their existing factory in Haryana, which currently produces Lotte Choco Pie.
“We plan to actively expand our investments in the Indian market, which holds substantial growth potential. Following Lotte Choco Pie success in India, introducing Lotte Pepero will enhance Lotte’s brand strength and expand sales in the Indian market,” commented Lee.
With this new line, the company aims to position Lotte Pepero as a premium brand in local markets, with subsequent plans to extend its reach into retail formats and e-commerce channels, as mentioned in the release.
The CEO additionally mentioned that Lotte India achieved sales of INR 654 crore in 2023 and is setting a target for over 20 percent growth in the year 2024.
Furthermore, Havmor Ice Cream, a subsidiary of Lotte Wellfood, will invest INR 436 crore in its new facility in Maharashtra. Production is set to begin in the second quarter of this year in Talegaon, Pune.
Founded in 1967, Lotte Wellfood, formerly known as Lotte Confectionery, is a division of Korea’s Lotte Group. Internationally, the brand operates through 9 subsidiaries in 8 countries, which include India, Kazakhstan, and Belgium.
Hindustan Coca-Cola Beverage Pvt Ltd, a prominent FMCG company in India, announced on Wednesday that its bottling facility in the Bidadi Industrial Area in Ramanagara has been certified as carbon neutral.
This is the first bottling plant of Coca-Cola in India and the Southwest Asia region, to achieve this significant milestone according to the international standard PAS 2060, the company said in a statement.
The prestigious certification by DNV, the globally accredited registrar and classification society, will be issued to Hindustan Coca-Cola Beverage Pvt Ltd (HCCB) in May 2024.
This achievement aligns with HCCB’s ambition to reach Net Zero by 2050 and to reduce its greenhouse gas (GHG) emissions across its value chain by 25 per cent by 2030, the statement said.
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