In a development that may be seen as a setback for over 50 leading companies in India, the Delhi HC on Monday upheld the constitutional validity of several provisions within the Goods and Services Tax (GST) framework related to anti-profiteering.
More than 50 major companies are challenging the Anti-profiteering mechanism introduced by the government under GST. This mechanism is designed to ensure that companies pass on the benefits of lower tax rates to consumers. Hindustan Unilever, Abbott, Johnson & Johnson, Philips, Patanjali, Samsonite, Jubilant Foods, and Nestle are among the companies that have taken the indirect-tax department to court over the anti-profiteering provisions under GST.
The HC said that it is a consumer welfare measure in the public interest and does not violate any constitutional provisions, emphasizing that the levy of interest is within the rule-making power of the central government.
“We have upheld the constitutional validity of section 171 (of CGST Act) as well as rules 122, 124, 126, 127, 129, 133 and 134 of the (CGST) rules of 2017,” the court said.
The court said that in accordance with section 171, any tax foregone must be transferred as a proportional reduction in price, emphasizing that this provision serves as a consumer welfare measure introduced in the public interest.
The rules in question address the establishment and functioning of the Anti-Profiteering Authority.
Pret A Manger, the UK-based freshly made food and organic coffee chain, has opened its 10th outlet in Mumbai, as announced by a company official on social media. Positioned at Gabbana House on 15th Road, Khar West, this new location is the fifth Pret A Manger store in the city.
“The star lands in Mumbai’s coolest neighborhood. Pret opened at 15th Road, Gabbana House, Khar West,” said Sumeet Yadav, chief executive officer of Hamleys and Pret India at Reliance Brands Ltd. in a LinkedIn post.
The chain presents a diverse array of offerings, including sandwiches, baguettes, salads, and soups. Alongside these, patrons can enjoy a variety of organic coffee, tea, shakes, and smoothies.
Pret A Manger has collaborated with Reliance Brands, the retail arm of Reliance Industries, to establish its presence in India.
In April, Reliance opened its first Pret A Manger cafe located at Maker Maxity in Mumbai. Spanning 2,567 square feet, the establishment faithfully replicated the distinctive ambiance of the brand’s renowned London shops. Later that month, Pret A Manger opened its second outlet in Mumbai at Phoenix Palladium Mall.
Today, the chain operates stores in several cities, including Mumbai, Gurgaon, and Delhi.
Established in 2007, Reliance Brands operates as a subsidiary of Reliance Retail Ventures Ltd. Its primary objective is to introduce and cultivate global brands within the luxury to premium segments across the fashion and lifestyle industry.
The company has formed long-term exclusive partnerships across various sectors with global and Indian brands, including Ritu Kumar, Bottega Veneta, Tiffany & Co., Valentino, Versace, Rahul Mishra, Armani, Balenciaga, Boss, and Zegna, among others.
Bhupendra Agarwal & Kumar Vaibhav, Co-Founders, Moms Home
Moms Home, a Jaipur-based sustainability-focused startup, has recently secured INR 5 Crores in a Pre-Series A funding round led by Mumbai-based VC firm Mistry Ventures. Founded in 2018 by IIM alumni Kumar Vaibhav and Bhupendra Agarwal, Moms Home Pvt Ltd is riding the wave of conscious consumerism in India. The startup operates two direct-to-consumer (D2C) brands – Moms Home, specializing in sustainable baby essentials, and Footprints, a sustainable apparel and accessories brand. Both brands pride themselves on offering products crafted from eco-friendly materials like cotton, bamboo, and muslin.
So far, Moms Home and Footprints have reached out to more than 2 million consumers across 300 cities in India, as reported by Vaibhav, a seasoned professional with over 14 years of experience in the sustainable FMCG and e-commerce sector. The products from these two brands are not only available on their official websites but also on leading marketplaces such as Amazon, Flipkart, Firstcry, Myntra, Nykaa, Amala Earth, and Hopscotch.
The parent company also plans to enhance its physical presence in brick-and-mortar locations.
Vaibhav is confident that the recent injection of funds will not only empower Moms Home to enhance the presence of its brands through improved distribution and new product introductions but also enable the startup to explore untapped opportunities in sustainable categories.
Talking about the partnership with Mistry Ventures, Vaibhav said, “Moms Home team is truly excited in partnering with Mistry Ventures in our journey to expand and build a strong mother and baby brand that is trustworthy, safe and affordable.”
The startup asserts that it fulfills over 30,000 orders each month and presently boasts an Annual Run Rate (ARR) of INR 20 Crores.
Moms Home aims to cover all the needs of a newborn, offering a diverse range of essentials such as clothing, bedding, nursing supplies, bathing essentials, feeding items, diapers, and more. The brand’s products are crafted from certified organic cotton and other environmentally friendly fibers. According to co-founder Agarwal, the brand currently sells more than 50,000 baby essentials each month.
“Moms Home has established a special connection with new parents who start their parental journey with us. Over the last five years, we have earned the trust of more than 5 Lakh mothers who have chosen our products for their little ones,” he added.
On the other hand, Footprint offers a range of accessories meticulously crafted from a combination of 100% organic cotton and bamboo, as highlighted by Vaibhav. The brand boasts an extensive selection of over 300 Stock Keeping Units (SKUs), spanning diverse sock categories such as business formal, kids, sports, and daily wear. In its ongoing pursuit of innovation, Footprint aims to enhance its product line by introducing personalized and designer socks.
Vaibhav stated that since its establishment, Footprints has successfully distributed more than 2 million pairs of socks through various channels, including retail partnerships, the brand’s official website, and other online platforms.
Talking about the brands, he added, “Sustainability lies at the core of both the brands. It is integrated into every aspect of the production cycle — right from selecting sustainable yarns to dyes and packaging.”
Agarwal emphasized the success of the startup by pointing out the revenue generated from its current customer base.
“Today, 30% of our revenue comes from existing customers and this is proof of our potential. We have been able to build a healthy, robust and sticky customer base,” he added.
Discussing the investment in Moms Home Pvt Ltd, Firoz Mistry of Mistry Ventures expressed, “Moms Home’s sustainable products are designed to serve the unmet needs of new parents who value safe and organic products for their new born. Its strength lies in its ability to scale with positive unit metrics and create a star product in each category. Both brands have several bestseller products across the leading online marketplaces. With a strong and experienced leadership team in place, we are excited to partner with them in their next phase of growth.”
Established in 2018 by Cyrus Mistry, Mistry Ventures is currently headed by Ashish Iyer, serving as the firm’s managing director. The venture capital firm actively supports startups at different stages of their development, contributing to their growth and scaling endeavors. Mistry Ventures has strategically invested in a range of sectors including Direct-to-Consumer (D2C), Software as a Service (SaaS), Agritech, and more.
As per Maximise Market Research, the market value of baby care products in India amounted to $8.29 billion in the year 2020. Projections indicate that the total revenue is anticipated to surge to nearly $24.27 billion by 2027, exhibiting a compound annual growth rate (CAGR) of 14.35%.
The report underscores that today’s parents have a preference for organic products for their infants. This choice is influenced by a heightened awareness of the importance of safe ingredients in baby products. Interestingly, this trend extends beyond urban parents, with individuals in smaller cities also displaying a similar inclination. Furthermore, there is a noticeable shift in consumer attention from price-based consumption to value-based consumption.
This offers a significant opportunity for startups such as Moms Home, SuperBottoms, Mothercare, and Purecloth to broaden their product ranges and address the demands of parents in search of organic and eco-friendly alternatives.
ITC Limited, a prominent player in the Fast-Moving Consumer Goods (FMCG) sector, is harnessing the power of Artificial Intelligence (AI) to enhance its product range by gaining valuable insights into emerging consumer trends. Additionally, the company is strategically integrating technology across its entire product value chain.
Under pilot runs for its dairy business, the company is leveraging AI tools to assess the health of cows and employing technologies to verify the authenticity of products through the provision of detailed product report cards to consumers.
Sanjay Singal, Chief Operating Officer for the Dairy & Beverages cluster of ITC’s Foods, said, “Our consumer data hub is powered by AI engines to segment consumers at scale and understand their needs. ITC’s Sixth Sense which is our sensing engine has a team that listens to social conversations and gathers insights for all our brands. They are using AI tools to generate contextual communication for our brands. There are applications that we are yet to deploy that can provide the farmer with the health of the cows using simple AI tools. The farmer can take a picture of the cow, and scan it and it will provide information on any disease or malnutrition of the cow. We are yet to roll out the application. The company is utilizing digital technologies starting from the source.”
The company delivering fresh milk and dairy products under the Aashirvaad Svasti brand employs thorough digital checks to assess the quality of the milk and detect any potential adulteration.
“Our fresh dairy business is in East India including Bihar, West Bengal and Jharkhand. We do not have organised farms for milk and work with nearly 13,000 farmers from whom we buy milk twice daily. We use technology wherein when the farmer comes to the village procurement centre to sell milk, we use equipment to test the basic features of the milk. We track the transport of the milk live by maintaining a temperature of four degrees throughout the supply chain from the village to the factory. To address the concern of adulteration, we have provided codes and a WhatsApp number on the milk packets wherein once entered the consumer can get the report card on the quality of the milk,” he said.
The Kolkata-based FMCG maker, recognized for its Aashirvaad brand of organic Ghee, is introducing a virtual tour of the farms. This initiative enables consumers to witness the manufacturing process of their products through an engaging online experience.
“We introduced Aashirvaad Svasti’s Organic Ghee and were clear that organic is the way to go. We went across the country to get authentic organic butter and organic milk to make ghee. The consumers are provided with a QR code on the product which when scanned will give a virtual tour of the organic farm. The customers can see the health of the cows, and what the cows are fed. There are no fertilizers used in growing the fodder for the cows and no chemicals used in the cleaning process. The entire process can be seen through the virtual farms,” added Sanjay Singal.
Additionally, the company presents an organic selection of Aashirvaad atta, giving consumers the choice to verify the specific farm from which the batch of wheat was sourced and subsequently transformed into atta.
TURMS, the smart clothing brand, has recently secured INR 1.2 crore from Azhar Iqubal, the CEO of Inshorts, marking a significant milestone in the latest episode of Shark Tank India Season 3. This strategic investment not only underscores the brand’s remarkable success on the entrepreneurial stage but also played a pivotal role in steering the company towards an impressive turnaround, leading to a successful exit.
Renowned for its innovative line of apparel, TURMS specializes in creating clothing with cutting-edge features, including anti-stain, anti-bacterial, anti-fungal, and anti-odor properties. Highlighting their commitment to revolutionizing the fashion industry, the brand’s standout products include 30-day no-wash jeans, resilient white cotton shirts, AC cool tech T-shirts, and seven-day no-smell socks.
Adding a touch of celebrity allure to its promotion, TURMS boasts Indian cricketer MS Dhoni as one of its patrons.
During the pitch on Shark Tank India, the Sharks were captivated by TURMS’ focus on practical innovation. Ashneer Grover, in particular, praised the brand’s “USP proposition,” highlighting the combination of impressive technology and the passionate pitch delivered by TURMS’ Founder, Surender Pal.
Surender Pal, who took over TURMS in 2022, shared the brand’s remarkable turnaround story with the Sharks. Under his leadership, TURMS has experienced significant growth, with the sale of four hundred thousand apparel units to date.
Aman Gupta, BOAT’s Co-Founder and Chief Marketing Officer, led tests on TURMS’ products, with Anupam Mittal, CEO of Shaadi.com, stating, “You will close the markets of the soap industries.” Azhar Iqubal, CEO of Inshorts, expressed his interest, saying, “Your products are very interesting.”
The acquisition of TURMS took place during the challenging Covid period, with Surender revealing details of the deal, including INR 1.5 crores in cash and a 12.5 percent equity stake in the new company.
Seeking a funding of INR 1.2 crore for a two percent equity stake, Surender received a counteroffer from Anupam Mittal, proposing an investment of INR 1.2 crore for a four percent equity stake and a two percent royalty. The deal was ultimately sealed at INR 1.2 crores for a four percent equity stake between Azhar Iqubal and Surender Pal.
Reflecting on the experience in Shark Tank India 3, Surender Pal said, “The sharks were genuinely impressed by the remarkable turnaround we have achieved since acquiring the company, and its current success speaks volumes.”
He added, “Shark Tank India, as a platform, not only provided a spotlight for our innovative garments but also established crucial connections with our target audience.”
Noel Wallace, the Chairman and CEO of Colgate-Palmolive, is bullish and excited about India, anticipating a demand recovery in rural markets.
“In India, we will see the continued return to the rural segment, the vitality of the rural segment, which will bode well for volume as we move forward. We have some strong innovation plans for India, around our core businesses. We are excited to see that obviously be delivered in the market and executed,” Wallace told investors during its earnings call.
“So India, very strong results across the board, 9% organic, continued strong pricing and sequentially better volume in that market. I would likewise say we remain very excited and bullish on the market in India.”
In the realm of oral care net sales, India stands as the third-largest market for this global company. With a firm grip on half of the oral care market in the country, Colgate’s products are distributed to over 1.7 million stores nationwide. Over the past decade, the toothpaste category in India has witnessed a remarkable growth, adding 430 million users—an equivalent number to the combined populations of the United States and Germany.
Nevertheless, oral care consumption in India remains considerably low. Even in comparison to other developing markets like the Philippines and Brazil, India lags behind, with these countries respectively consuming 1.8 times and 3.1 times more oral care products despite their smaller populations.
“The team is doing an exceptional job finding added distribution points to make sure we continue to capitalise on investment strategy. So bullish on India, good results and sequentially right where we would like to see their business today and setting us up for ultimately another strong year in 2024,” Wallace added.
During the quarter ending December, Colgate achieved an 8.1% sales growth, indicating a low single-digit volume increase. Notably, the toothpaste category exhibited double-digit growth, with a low single-digit volume expansion, signifying a reversal from the previous year’s decline in volumes.
Analysts noted that the company continues to work on innovation-led growth. For instance, it relaunched its flagship brand Colgate dental cream with a better formulation, doubled down on the Colgate Strong Teeth relaunch by expanding reach and availability, and also relaunched Colgate Max Fresh with a new proprietary technology.
“Colgate aims to improve performance by increasing the consumption frequency through core products, driving premiumisation with science-based innovation, expanding distribution of personal care portfolio and improving product assortment with the help of technology,” said a report by Antique Stock Broking.
The private equity firm, which holds ownership of Hometown Food Company, is currently exploring the potential sale of the renowned producer of Pillsbury‘s shelf-stable baking products and Birch Benders, as indicated by insiders familiar with the matter.
Having held ownership of Hometown for the past five years, Brynwood Partners is collaborating with the investment bank Houlihan Lokey (HLI.N) to initiate a new sales process. According to sources, the valuation of Hometown in this process is anticipated to be around $800 million.
Hometown generates around $90 million in adjusted earnings before interest, taxes, depreciation, and amortization over a 12-month period.
The sources sought anonymity as the matter is confidential. Brynwood and Houlihan Lokey declined to provide comments, while Hometown did not respond.
Hometown provides products to grocery stores, convenience stores, wholesalers, and various other distribution channels.
In 2018, Brynwood acquired the Pillsbury shelf-stable baking business, along with Hungry Jack, Funfetti, and other assets, from the J.M. Smucker company for $375 million. Subsequently, Brynwood established Hometown, based in Chicago, to facilitate the acquisition of these assets from Smucker.
In 2019, Hometown acquired the Arrowhead Mills and SunSpire brands from the Hain Celestial Group. Last year, it also completed the acquisition of Birch Benders from Sovos Brands. Birch Benders specializes in pancake and waffle mixes, frostings, and toaster waffles, offering options that cater to keto, paleo, and organic preferences.
Tupperware, the homeware brand, announced the opening of its 200th retail store in Bengaluru, as shared by a company representative on social media this Wednesday. The new store is situated at Elements Mall, Kasaba Hobli, Bengaluru.
“I am thrilled to share a momentous achievement with all of you today – the grand launch ceremony of our 200th exclusive retail store in Bengaluru! This marks a significant testament to our brand’s stronghold in the organised retail space in Tupperware India,” said Mohit Virmani, national retail head of Tupperware in a LinkedIn post.
“This achievement is a testament to the passion and commitment that defines us. Crossing the 200-store mark is not just a number; it’s a symbol of our resilience and constant pursuit of excellence,” he added.
Established in 1942 by Earl Tupper, Tupperware is a well-known American company specializing in the production and global distribution of kitchen and home-use containers for preparation, storage, and serving. Currently, its diverse range of products is available in nearly 100 countries worldwide.
In 1996, the company entered the Indian market, commencing operations with Delhi as its focal point. Later, in 2010, the company broadened its footprint by setting up a manufacturing plant in Dehradun. Achieving another milestone, the retailer inaugurated its 100th store in India in 2021.
As per a Bloomberg report, Shein investors are trying to divest shares in private market transactions, with valuations for the online fashion giant dropping as low as $45 billion. This decline mirrors a diminished interest in the company, which is currently contending with intensified competition and regulatory scrutiny as it prepares for its much-anticipated debut in the United States.
Shareholders were offered stock at valuations ranging from $45 billion to $55 billion in late 2023, as disclosed by individuals familiar with the matter. This represented a notable decrease from the $66 billion valuation Shein had secured in a May fundraising round. However, even at these diminished levels, finding buyers posed a challenge for the shareholders, prompting concerns about the potential for additional loss in value. The sources requested anonymity while discussing these private transactions.
The latest offers, which haven’t previously been reported, highlight the widening gap between market appetite and Shein’s target of up to $90 billion in an initial public offering. While private transactions aren’t always indicative of the levels a company can reach on public markets, they provide a useful barometer of investor sentiment.
The diminished interest underscores the challenges faced by the formerly dominant retailer of budget-friendly apparel in warding off Temu, a direct competitor launched approximately a year ago by the Chinese e-commerce giant PDD Holdings Inc. Concurrently, prominent clothing brands, from Fast Retailing Co.’s Uniqlo to Hennes & Mauritz AB, have accused Shein of copyright infringement. Requests for comment from Shein representatives went unanswered.
During the second quarter of last year, Shein’s shares were traded at approximately $50 billion to $60 billion, with an initial target of achieving a valuation between $80 billion and $90 billion in a public listing. However, liquidity has continued to diminish, and in a peculiar transaction towards the end of 2023, Shein was exchanged at a valuation of around $30 billion. In this particular instance, a financially burdened seller was compelled to quickly divest, according to one source.
The diminishing valuation raises concerns about Shein’s highly anticipated public listing, currently under review by China’s cyberspace administration. This regulatory body is examining the company’s data management and sharing practices, a thorough process that may extend over several months. Concurrently, officials in the United States have called on the Securities and Exchange Commission to suspend the IPO until they can confirm that Shein does not employ forced labor in its supply chain.
Established in Nanjing and presently based in Singapore, Shein achieved the status of the world’s third most valuable startup in 2022 following a funding round that assessed the company’s worth at $100 billion.
In the wake of a general decline in the valuation of startups and technology companies, Shein’s worth has also diminished. Investors, adopting a cautious approach amid an uncertain economic outlook, have contributed to the downward trend in valuations. Notably, ByteDance Ltd., the parent company of the short-video service TikTok, saw its valuation dip below $300 billion in secondary markets around July, marking a decrease of at least 25% from the previous year.
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