Marks & Spencer’s food retail arm continues strong sales streak, challenges leading grocers in UK

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February 6, 2024

UK industry data released on Tuesday indicated that Marks & Spencer’s food retail arm continued to capitalize on the strong sales momentum of 2023, carrying it into the early weeks of the new year.

According to market researcher NIQ, Marks & Spencer’s grocery sales surged by 11.6% year-on-year in the 12 weeks leading up to January 27, placing it second only to Lidl, a German-owned discounter, which experienced a 13.2% increase and is hailed as Britain’s fastest-growing grocer.

The leading market player, Tesco, recorded a sales growth of 6.9%, whereas Sainsbury’s, holding the second position, achieved a growth of 8.4%.

Continue Exploring: UK retail giant Tesco revises profit forecast following strong Christmas sales performance

Asda and Morrisons were once again among the laggards, with sales growth of 2.7% and 3.4% respectively, as shown by the data.

During the four-week period ending on January 27, UK supermarkets experienced a 6.6% year-on-year increase in total sales, as reported by NIQ. Meanwhile, food inflation stood at 6.1%, marking its lowest rate since June 2022.

Echoing the data from rival market researcher Kantar last week, NIQ stated that promotional activity accounted for 23% of sales, down from 26% over Christmas.

Furthermore, it noted that online grocery retained its share of 11.2% of the total grocery expenditure.

On a separate note, Tuesday’s data from the British Retail Consortium revealed that retailers experienced sluggish overall sales in January, reflecting consumer caution towards spending. This underscores the impact of high inflation and borrowing costs, which are placing pressure on households.

Continue Exploring: UK grocery costs remain 30% higher than two years ago despite ongoing inflation easing

Tata Neu joins online food delivery race through ONDC integration, posing competition to Zomato and Swiggy

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February 6, 2024

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Tata Group is set to make its foray into online food ordering through its super app Tata Neu, utilizing the Open Network for Digital Commerce (ONDC), as reported by MoneyControl.

The salt-to-steel conglomerate is gearing up for closed-user group trials in the next few days, as reported. However, it may take another month or longer before the feature is available to the public.

According to reports, Gaurav Porwal, Senior Vice President at Tata Digital, is leading the ONDC project.

In April 2022, Tata Neu was introduced as the digital platform encompassing Tata Group’s range of consumer brands, including BigBasket for online groceries, Croma for electronics, Tata CliQ for fashion, 1MG for e-pharmacy, Starbucks for coffee, and the group’s budget airline, formerly AirAsia, now rebranded as AIX Connect.

The 155-year-old conglomerate is poised to enter into competition with the new-age foodtech unicorns Zomato and Swiggy, reportedly dominating 95% of the online food delivery market. The objective is to establish a ‘high-frequency use case,’ encouraging consumers to engage with the app regularly, according to reports.

Continue Exploring: ONDC disrupts food delivery landscape: 50,000 restaurants join platform, challenging Zomato and Swiggy dominance

Several major super apps, such as China’s WeChat or Gojek, have a central offering, such as instant messaging or ride-hailing, around which additional services are integrated.

Following the introduction of ONDC, numerous players like the hyperlocal commerce platform Magicpin and PhonePe’s Pincode have begun offering food delivery services. In May last year, Magicpin announced that it was handling up to 20,000 orders daily.

ONDC facilitates interactions among various participants in the e-commerce ecosystem, such as buyers, sellers, service providers, and intermediaries, enabling them to collaborate in fulfilling business needs.

Tata Neu will function as the business-to-consumer interface within ONDC, serving as a buyer-side application. This approach eliminates the necessity of managing a fleet of delivery riders or negotiating with restaurants to join the platform.

Continue Exploring: ONDC network live in 500 towns & cities, MoS Commerce affirms full adherence to e-commerce regulations

Nykaa continues strong growth trajectory: Q3 net profit doubles YoY to INR 17.4 Cr

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February 6, 2024

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Nykaa, a prominent player in the beauty and fashion e-commerce sector, witnessed a significant surge in its consolidated net profit during the December quarter (Q3) of the fiscal year 2023-24 (FY24). The company’s net profit more than doubled, reaching INR 17.4 Cr compared to INR 8.5 Cr in the corresponding quarter of the previous year. This remarkable growth was attributed to the steady enhancement of its fashion segment, particularly during the festive period.

The net profit also experienced a significant increase of 123.7% on a quarter-on-quarter (QoQ) basis, rising from INR 7.8 Cr in the previous fiscal quarter, Q2 FY24.

The operating revenue saw a 22% growth, reaching INR 1,788.8 Cr in the current quarter compared to INR 1,462.8 Cr reported in Q3 FY23.

During the third quarter of fiscal year 2024, the company reported a 5.5% expansion in its EBITDA margin, with EBITDA increasing by 26% year-on-year to INR 98.8 Cr, attributed to enhancements in both direct and indirect cost efficiencies, as stated by the company.

Continue Exploring: Nuvama analysts bullish on Mamaearth for MSCI Smallcap Index, Nykaa gaining momentum for Global Standard Index

Nykaa announced in a statement that it implemented an ESOP grant targeting critical and top talent across various organizational levels during the quarter. This initiative is currently reflected in the company’s employee expenses. If adjusted for ESOP and new business expenses, the company’s EBITDA margin would have stood at 6.1%.

In Q3 FY2024, the business experienced a 29% year-on-year increase in gross merchandise value (GMV), totaling INR 3,619.4 Cr.

The company reported a 25% year-on-year growth in consolidated gross merchandise value (GMV) within the beauty and personal care (BPC) segment. Additionally, the GMV of Nykaa’s fashion vertical surged by 40% year-on-year.

“Our fashion business is showing consistent improvement in profitability, reflecting our platform strength and quality of our customers,” said Nykaa.

Continue Exploring: Nykaa’s fashion vertical takes the lead with anticipated 40% YoY GMV growth in Q3 FY24

Nykaa Fashion’s contribution margin as a percentage of net sales value (NSV) improved by 510 basis points, reaching 6% in Q3 FY24, compared to 0.9% in the same quarter of the previous year.

Delhi HC orders panel to probe alleged non-veg ingredients in Patanjali toothpaste, seeks recommendations in 10 weeks

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February 6, 2024

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The Delhi High Court has directed a committee appointed by the Ministry of Ayush to establish the guidelines for classifying raw materials utilized in drug manufacturing as either vegetarian, non-vegetarian, or falling under other categories.

The court directive, issued on February 2, was prompted by a petition alleging the presence of non-vegetarian components in Patanjali’s Divya Manjan toothpaste.

The petition, submitted by attorney Yatin Sharma, contends that Patanjali is marketing ‘Divya Manjan’ with a green dot on their official website, despite it containing non-vegetarian ingredients. The petition calls for stringent measures against the company for neglecting to indicate the red mark, thereby misleading, unduly influencing, offending religious sentiments, deceiving, misrepresenting, and defrauding their customers.

Sharma lodged the petition in July last year and was instructed to address the relevant authorities accordingly. In response, the lawyer filed a complaint with the Ministry of Ayush on July 23, 2023, prompting the ministry to suggest the formation of a committee to establish guidelines for classifying raw materials employed in drug manufacturing as either vegetarian, non-vegetarian, or falling under other categories.

Continue Exploring: Patanjali Ayurved faces govt scrutiny as PMO directs Ministry of Ayush to address deceptive advertising complaints

In the interim, the court has allotted the committee formed by the ministry a period of 10 weeks to formulate its recommendations.

It’s worth noting that the Supreme Court recently directed Patanjali Ayurved to refrain from publishing misleading claims and advertisements disparaging modern medical systems. The court warned of imposing a fine of INR 1 crore on each product for making false claims suggesting it can cure specific ailments.

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

During a hearing on a petition filed by the Indian Medical Association (IMA) last November, a bench comprising justices Ahsanuddin Amanullah and Prashant Kumar Mishra verbally cautioned against Patanjali Ayurved’s misleading advertisements, emphasizing the gravity of any such transgressions.

Earlier, on August 23, 2022, notices were issued by the Supreme Court to the Union Health Ministry, the Ministry of Ayush, and Patanjali Ayurved Ltd., following an IMA plea alleging a smear campaign by Ramdev against the vaccination drive and modern medicines.

During these proceedings, Ramdev was strongly rebuked by the court for his criticism of allopathy and allopathic practitioners, asserting the necessity of restraining him from disparaging doctors and other treatment modalities.

IGP takes gifting to new heights with 30-minute instant delivery service

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February 6, 2024

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In an era where time is of the essence, IGP.com, the international gifts platform, makes a groundbreaking stride in the Indian retail landscape. With the introduction of its 30-minute instant delivery service, it not only sets a new benchmark for swift gifting experiences but also aims to redefine the dynamics of connections, ensuring seamless and memorable moments between gift giver and receiver.

IGP.com, renowned for its efficient same-day and scheduled deliveries across 400+ cities in India, further solidifies its dedication to swift service by introducing a lightning-fast 30-minute delivery option. Named “Your gift, their smile – Experience instant bliss with 30-minute delivery,” this initiative encompasses over 250 SKUs, accessible across more than 2000 pin codes, underscoring the platform’s unwavering commitment to instant joy.

This achievement is made possible by a sturdy logistics framework, orchestrated through three central warehouses strategically located alongside over 50 dark stores. This careful arrangement guarantees swift and punctual deliveries, transforming the 24/7 super instant delivery pledge from mere commitment into a tangible experience.

Tarun Joshi, the CEO and Co-Founder of IGP said, “We are thrilled to introduce the 30-minute instant delivery service, a testament to our commitment to enriching relationships through prompt and delightful gifting experiences. At IGP.com, we believe in creating moments of joy, and this service is designed to make those moments even more special, ensuring your gift brings an instant smile to your loved ones.”

As IGP.com bolsters its offerings in the Indian market, it has concurrently embarked on a global expansion journey, establishing operations in Dubai. This strategic step highlights the platform’s unwavering commitment to spreading happiness worldwide, fostering a harmonious celebration of love and joy across borders. With its ongoing innovation and global expansion efforts, IGP.com is poised to deliver unparalleled gifting experiences that transcend geographical constraints, delighting customers around the globe.

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

Ajeenkya DY Patil University brings Young Chef Young Waiter Competition 2024 to India, fostering next-gen hospitality stars

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February 6, 2024

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Dr Robert Walton MBE, Chairman and President of the Restaurant Association UK and Mr Sean Valentine, Managing Director, World Young Chef Young Waiter

Ajeenkya DY Patil University (ADYPU), renowned for its commitment to cultivating budding talents through top-tier education, organized the inauguration of the highly esteemed Young Chef Young Waiter (YCYW) 2024 in Mumbai on January 18, 2024. With a legacy of fostering and motivating the global hospitality sector for more than forty years, this competition marks its debut in India, promising an exciting milestone for the industry.

Launched in 1979 in the UK through collaboration with UK Hospitality and the Restaurant Association, the competition aimed to elevate hospitality as a preferred career path. With unwavering support from industry professionals, it has thrived for over 45 years.

Dr Robert Walton MBE, Chairman and President of the Restaurant Association UK, said, “The Young Chef Young Waiter competition has a storied history of discovering and celebrating talent in the hospitality industry. Hosting this event at Ajeenkya DY Patil University adds a new and exciting dimension, especially as we resonate with the university’s dedication to encouraging out-of-the box thinking. We keenly await new flavours and experiences from India.”

Adding to this, Sean Valentine, Managing Director, World Young Chef Young Waiter, said, “The YCYW competition will be the perfect launchpad for young Indian talent to build global networks and learn from the very best. We want to spotlight India as a rising giant in hospitality excellence.”

The alignment of values between the university and the Young Chef, Young Waiter competition is remarkable. Both entities prioritize creativity, forward-thinking, and a proactive approach, aiming to foster talent and inspire young individuals to explore careers in culinary arts and hospitality. Through the competition, the goal is to facilitate the professional development of aspiring chefs and service personnel by challenging their abilities in high-pressure scenarios and providing opportunities for learning from global industry experts.

Continue Exploring: HRAWI and Ingram Micro collaborate to drive digital transformation in hospitality sector

Dr Ajeenkya DY Patil, President, Ajeenkya DY Patil University and Chairman, Ajeenkya DY Patil Group said, “We are thrilled to host the YCYW competition and join in the celebration of the rising stars in India’s vibrant hospitality segment. By providing a global platform for young talent, we hope to spotlight Indian culinary arts and service excellence while inspiring wider interest in this industry. We are proud to be associated with this initiative, and we look forward to seeing the extraordinary skills that young professionals will bring to the table.”

The judging panel for the competition will consist of Chef Mario Perara and Chef Cyrus Todiwala, both renowned figures in their respective domains. The event will start with an initial review of applications, leading to the India Finals, and ultimately culminating in the finalists vying for victory on the global stage.

Celebrity chef Cyrus Todiwala OBE DL, Café Spice, United Kingdom, said, “Indian cuisine and service standards have made their mark globally. In fact, the country has seen praiseworthy growth in culinary excellence and service standards in the last decade. We are delighted to bring this global competition to India to celebrate the immense potential of local talent on the world stage.”

“I’m thrilled to judge the creative talents of India’s next generation of hospitality heroes. This is a great opportunity for them to show the world that they have what it takes to leave a mark on the hospitality industry worldwide,” added Celebrity Chef Mario Pereira, Executive Chef, The Dorchester.

Continue Exploring: India’s hospitality industry toasts to 2024 with high hopes and record-breaking revenue growth

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

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February 6, 2024

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The fast-moving consumer goods (FMCG) sector in India experienced a 6% growth in value and a 6.4% growth in volume during the October-December quarter, reflecting a year-on-year increase in demand nationwide.

According to NielsenIQ‘s quarterly update, volume growth for the quarter increased by 6.1% compared to the same period last year. Additionally, in 2023, the consumption gap between urban and rural markets narrowed for the first time, as reported by the researcher.

NielsenIQ forecasts a growth of 4.5-6.5% for the FMCG market in FY24, indicating the industry’s adeptness in navigating complexities and adjusting to changing market dynamics.

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

Roosevelt Dsouza, head of customer success – India, NielsenIQ said, “The favourable interim Union Budget 2024-25, and several economic boosters for the rural sector, should augur well for companies with a rural strategy.”

Rural markets experienced a growth of 5.8%, whereas urban markets saw a higher growth of 6.8%. However, in sequential terms, rural markets exhibited a volume slowdown. India’s villages account for more than a third of the yearly sales of FMCG companies, underscoring their significance in revitalizing the sector.

Consumption in non-food categories surged by 8.7%, outpacing the growth in food categories, which stood at 3.8%.

Although experiencing a decrease in sequential quarters, the narrative of rural recovery continued to progress steadily throughout the year. In the fourth quarter of 2023, there was an increase in consumption, predominantly propelled by habit-forming categories like biscuits and noodles in food, along with essential home products.

“These categories have thrived despite flat to negative price growth, indicating resilience and sustained demand,” the researcher said.

Continue Exploring: FMCG firms optimistic about rural recovery amid macroeconomic improvements

Modern trade continued to sustain robust double-digit growth at 16.8%, while Traditional Trade witnessed a decline, posting a growth rate of 5.3% in the quarter, down from 7.5% in the previous quarter.

“Despite certain challenges, the positive momentum in modern trade adds a promising dimension to the overall market scenario,” the researcher said.

In urban markets, average pack sizes continue to show a positive trend, albeit with a consistent preference for larger packs. Conversely, in rural areas, there’s an emerging inclination towards larger pack sizes, indicating a path of recovery.

According to NielsenIQ, smaller manufacturers are experiencing greater volume growth rates in non-food categories compared to larger manufacturers, while the trend reverses in food categories.

Govt pushes for Indian toy sector expansion with Snapdeal, Walmart collaborations

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February 6, 2024

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The government announced on Monday that tie-ups between domestic toy makers and “internationally acclaimed big players” including Snapdeal and Walmart are in the pipeline, asserting that the sector is poised for success in the future.

The statement comes amidst Indian toy makers receiving orders above $10 million at a five-day international toy fair in Germany.

“While the domestic manufacturers have already experienced success in Germany, tie-ups with internationally acclaimed big players including Snapdeal and Walmart is in the pipeline,” the commerce and industry ministry said in a statement.

Continue Exploring: Toys ‘R’ Us bets big on Indian market, eyes top five position within 4-5 years

The exporters reported that buyers from nations including the US, the UK, South Africa, and Germany expressed keen interest in their products and made substantial orders during the Nuremberg fair, which took place from January 30 to February 3. India had over 55 participants at the event.

“The Indian toy sector is growing at a healthy rate and competing with global players. Among the most popular categories at the fair were those pertaining to wooden toys and educational learning toys,” the ministry said.

According to the statement, initiatives led by the Department for Promotion of Industry and Internal Trade such as enforcing mandatory quality standards, raising customs duties, and implementing a National Action Plan on Toys have contributed to the production of top-notch products that garnered recognition on the global stage.

The domestic manufacturers at the fair observed a notable shift in the approach and behavior of buyers.

“India is now being recognised as a lucrative alternative sourcing destination,” the ministry said, adding that the show has opened the doors for international joint ventures.

In 2022-23, India’s toy exports surged to $325.72 million from $96.17 million in 2014-15. Conversely, imports witnessed a 52% decline to $158.7 million in 2022-23 from $332.55 million in 2014-15.

Continue Exploring: Walmart targets $10 Billion annual exports from India, with toys taking center stage

FSSAI greenlights amendments for single food certification authority

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February 6, 2024

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In a step aimed at enhancing the business environment under the principle of ‘One Nation, One Commodity, One Regulator,’ the Food Safety and Standards Authority of India (FSSAI) approved several amendments during its 43rd meeting to simplify regulations related to food safety and standards.

Chaired by Union Health Secretary Apurva Chandra, the meeting sanctioned a series of amendments to eliminate the need for multiple certification authorities, including Bureau of Indian Standards (BIS) and AGMARK certification for food products. Additionally, it addressed certification requirements for Mead in Honey wine and Ready-to-Drink (RTD) alcoholic beverages, as well as standards for milk fat products, Haleem, and more.

Upon the completion of these amendments, food enterprises will no longer be required to approach various authorities for compulsory certification. Instead, only FSSAI certification will be mandated for food products.

Continue Exploring: FSSAI revises order allowing regional names on curd labels amidst political controversy in Tamil Nadu

The Food Authority also approved a first-of-its-kind and comprehensive manuals of methods of analysis for ensuring regulatory compliance of the food products.

The amendments to various Food Safety and Standards Regulations were approved during the meeting for the draft notification, seeking stakeholder input prior to finalization. These modifications encompassed the updating of standards for Milk Fat Products, wherein the fatty acid specifications for Ghee will also extend to other milk fat products.

The Food Authority is also going to set standards for ‘Haleem’ as part of standards for meat products. Haleem is a dish made of meat, pulses, grains and other ingredients, which currently don’t have any set standards.

G. Kamala Vardhana Rao, CEO, FSSAI; officials from the ministry of health and family welfare, ministry of commerce, ministry of consumer affairs, food and public distribution, ministry of law and justice, ministry of MSME; states and union territories attended the meeting. Representatives from industry associations, consumer organisations, research institutes and farmers’ organisations were also present in the meeting.

Continue Exploring: FSSAI issues directives to airlines and flight caterers for strict compliance with food safety standards

FMCG firms optimistic about rural recovery amid macroeconomic improvements

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February 6, 2024

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Major FMCG firms are placing their bets on a gradual resurgence in rural demand for the current year, fueled by improving macroeconomic conditions, sustained government expenditure, and strategic price reductions. Several companies have reported that the industry experienced subdued rural demand during the December quarter, while urban consumption maintained its lead over rural demand.

During the Q3 earnings call, Saugata Gupta, the Managing Director and CEO of Marico Ltd, highlighted that the FMCG volume growth, based on a four-year CAGR, stayed in the low single-digits. Additionally, he noted that the rural and mass categories were “tracking lower” compared to the urban and premium categories.

“So far, while the pace of recovery in consumption has not been on anticipated lines, we remain optimistic of a gradual uptick in consumption trends over the course of the next calendar year, in light of improving macroeconomic indicators, continued government spending, lower inflation and substantial cuts in consumer pricing implemented by large organised players in response to an accommodative and stable input cost environment,” he added.

Hindustan Unilever also observed that the impact of an uneven monsoon on the Kharif crop affected rural incomes and agricultural yields. In its Q3 earnings report, the company highlighted that urban growth continues to surpass rural growth across various industries, including FMCG.

Continue Exploring: Rising competition spurs FMCG firms to strengthen rural distribution networks

“Looking ahead, in the near term, we remain cautiously optimistic. We expect the gradual recovery in market demand to continue, aided by increased government spending, recovery in winter crop sowing and better crop realisations. At the same time, rural income growth and winter crop yields will be key factors that determine the pace of recovery,” said Ritesh Tiwari, CFO and Executive Director, Hindustan Unilever.

During a recent global earnings call, the global leadership of Colgate-Palmolive conveyed a positive outlook regarding the recovery of rural markets in India.

“We’ll see the continued return to the rural segment, the vitality of the rural segment, which will bode well for volume as we look forward,” the company’s Chairman and CEO Noel Wallace stated.

Dabur India has reported the onset of a revival in rural markets, attributing it to factors such as easing inflation, the expansion of its rural distribution footprint, and the strategic curation of a rural portfolio. The FMCG giant highlighted that in the December quarter, rural demand outpaced urban demand by 200 basis points.

Noting that the company’s performance in rural markets is contrarian to peers, Mohit Malhotra, CEO, Dabur India, said, “The gap between urban and rural growth at the FMCG industry level has been reducing, which is a positive sign. So, as the gap narrows between urban and rural growth with prices going up, I think rural recovery is imminent.”

Continue Exploring: Interim Budget 2024 sets the tone for inclusive development, FMCG executives optimistic

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