In a significant leap towards community welfare and sustainable water security, Hindustan Coca-Cola Beverages Private Limited (HCCB), a leading FMCG company in India, has introduced a Drinking Water ATM in collaboration with the Y4D Foundation at the Natya Mandir premises in Nalbari, Assam. The inauguration of this innovative initiative was attended by distinguished dignitaries, including Shri. Jayanta Mallabaruah, the Hon’ble Minister of PHED, SEED, and Tourism in Assam, and Smt. Varnali Deka, IAS, the District Commissioner of Nalbari district.
Tailored to meet the needs of approximately 4000 residents in the community, the Drinking Water ATM reflects HCCB’s firm commitment to ensuring sustainable water security and actively contributing to regional empowerment initiatives.
Varnali Deka, IAS, District Commissioner of Nalbari district, Assam said, “Initiatives that empower the community and cater to the overall welfare of the people have a long-standing impact on lives. We are happy to have HCCB actively enabling access to safe and clean water for the local community of Nalbari. This development impacts thousands of people and paves the way to positive change in the region. The Water ATM will bring succour to more than 150 shops and commercial establishments, 50 Street vendors in the immediate vicinity, besides providing water to attendees of all the events at the frequently used Natya Mandir with a capacity of 500 people.”
Himanshu Priyadarshi, Chief Public Affairs, Communications and Sustainability Officer, HCCB said, “At Hindustan Coca-Cola Beverages, we recognise the need for community empowerment and the challenges encountered in accessing safe, clean drinking water. The introduction of Drinking Water ATM in the Nalbari district marks an important step towards addressing this need. The initiative aligns with our larger vision to foster community welfare and contributes towards ensuring access to water and sanitation for all. These programs showcase our steadfast commitment to driving positive change in the communities we serve.”
Apart from the water initiative, HCCB has undertaken efforts to empower women and the community in Assam. This includes upskilling over 400 women in digital and financial literacy and equipping a local school with a digital smartboard for tech-enabled learning. In addition, plans for bee farming training and equipment supply for 20 women in Nalbari aim to enhance employability, fostering welfare, and empower women with valuable skills.
In 2023, the retail sector recorded a historic peak in leasing, securing 7.1 million square feet across eight cities. This marked a notable 47% surge compared to the previous year, even as major retailers reduced their pace of store expansion.
According to CBRE, about two dozen international brands entered India, and the expansion efforts of existing global brands in the country have fueled the demand.
Retail leasing witnessed a significant uptick in 2023, with international brands contributing nearly 25%, a substantial jump from the 14% recorded in the previous year.
La Vie en Rose, the Canadian lingerie retailer, marked its entry into the Indian market through a partnership with Apparel Group India. The journey began with the launch of its first store in Delhi-NCR in July 2023, followed by expansions into Pune and Bangalore.
Similarly, Rimowa, the German luxury luggage brand, ventured into the Indian market through a partnership with Reliance Brands, debuting its first store in Mumbai.
Other notable expansions by international players include the establishment of stores by French fashion & apparel brand Bugatti Fashion and the American furniture brand West Elm in Pune. Furthermore, American lingerie brand Victoria’s Secret has expanded its retail presence by opening stores in Hyderabad and Pune.
“The luxury sector, which saw a 162% increase in 2023, shows a promising trend with the entry and expansion of international brands. This positive momentum is expected to continue, aligning with our anticipation for a similar trend in the years ahead,” said Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE.
India has become one of the most enticing consumer markets, reflecting a growing interest among retailers in establishing new setups, expanding, and upgrading stores.
The demand for retail spaces in newly completed malls played a crucial role in influencing the overall occupancy of retail spaces during the year. Primary leasing in these malls accounted for nearly 30% of the total absorption.
“As retail leasing in major tier II cities of India (Chandigarh, Lucknow, Jaipur, Indore and Kochi) surges to 1.2 million sq. ft. in 2023, we witness a transformative shift led by sectors such as fashion & apparel, homeware, entertainment, and hypermarkets, commanding over 70% of leasing activity. The increased demand for organized retail spaces has attracted leading developers and institutional players to these markets, evolving retail formats from vanilla stores to shopping malls, department stores, hypermarkets, and dedicated entertainment zones,” said Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India.
Additionally, the total retail supply reached a historic peak of 6 million square feet in 2023, marking a significant year-on-year increase of over 316%. This rise in supply can be attributed to the commencement of operations for 12 investment-grade malls located in Bangalore, Pune, Mumbai, Hyderabad, Ahmedabad, Delhi-NCR, and Chennai.
In 2023, the primary driver of retail leasing was the fashion and apparel sector, commanding a 32% share of the total leasing. This trend was largely shaped by the prevalence of mid-range fashion value and athleisure brands.
Homeware and department stores dominated the leasing scene in 2023, securing a formidable 17% share. Following closely were food & beverage at 12%, luxury at 9%, and consumer electronics at 6%, shaping the overall distribution in the leasing market.
The expectation of a growing mall supply and positive consumer spending trends is anticipated to stimulate future expansion for both international and domestic retailers.
Apparel exporters body AEPC, on Wednesday, called for essential tax incentives, emphasizing uniformity in GST and enhanced interest subsidies to invigorate domestic manufacturing and fortify India’s outbound shipments. AEPC, representing the Apparel Export Promotion Council, specifically urged for tax concessions targeting apparel manufacturers embracing Environmental, Social, and Corporate Governance (ESG) standards and complying with international quality norms. Additionally, the council pressed for budgetary support to amplify branding and marketing initiatives for products made in India, leading up to the upcoming Budget presentation scheduled for February 1.
The council said that interest equalisation rates were revised downward from 3 to 2 per cent for non-MSME (Micro, Small and Medium Enterprises) manufacturer exporters under the interest equalisation scheme on pre-and post-shipment export credit.
“High cost of capital has been a major bottleneck for the exporting community. AEPC has requested the government to increase the rates under the scheme to 5 per cent for all the apparel exporters,” it said, adding it will increase the apparel industry’s competitiveness in the international market and enable them to avail necessary working capital.
Regarding the Goods and Services tax (GST), it said that a uniform tax of 5 per cent only should be levied across the entire MMF (Man-Made Fibre) value chain (fibre, yarn and fabric).
Currently, the MMF GST rate on fibre is 18 per cent, yarn 12 per cent, and fabric 5 per cent, resulting in unutilised input credit and consequent liquidity issues for MSME units, the council added.
Further, it suggested the government include trimmings and embellishments under Import of Goods at Concessional Rates (IGCR) duty rules.
The operations involved in the garment export trade essentially require various kinds of quality trimmings and embellishments (tags, labels, stickers, belts, buttons, linings, inter-linings, etc.) to ensure the desired functionality and aesthetics of garments in the global market.
In order to maintain their brand image, foreign buyers insist on maintaining consistency and quality and avoiding the use of counterfeits. Any deviation in the specification and quality results in the rejection of the shipment, it said.
“Indian apparel exporters are constrained to use only those trimmings and embellishments, which are pre-approved by the buyer and these are mostly required to be sourced from overseas suppliers nominated by the garment buyers,” the council argued.
As of now, certain trims and embellishment items are not entitled to duty exemption, it said.
“AEPC has submitted a list of items currently not permitted, such as draw cord, elastic band/tape, metal tab/stopper/clip, velcro tape, leather badge, and D-ring, and has requested these items be included in the list for eligibility for duty exemption,” the AEPC said in a statement.
It has also urged that minimum wastage at the rate of 10 per cent should be allowed under the IGCR rules for the import of trimmings and accessories by issuing an appropriate notification.
This will help apparel exporters submit their utilisation details on time and get the bond executed at the customs release.
“We will look forward to the response of the government on the suggestions made by AEPC, which have been made after wider industry consultations,” Mithileshwar Thakur, Secretary General, AEPC, said.
As per a TOI report, the Siddaramaiah-led government in Karnataka is planning to implement a 10 percentage point increase in the duty on beer from the first week of February. This initiative is geared towards boosting the sales of Indian-made liquor, which serves as a substantial revenue source for the state exchequer. Notably, this move by the Congress-led government represents the second hike in beer duty within a span of seven months.
The excise department has released a notification outlining a planned duty hike, and citizens are urged to express their objections until January 27. According to T Nagarajappa, additional excise commissioner, if no substantial concerns are raised during this period, the state excise department plans to move forward with the implementation of the decision.
The proposed increase in the additional excise duty (AED) comes just a month ahead of the state budget. This adjustment is projected to elevate the cost of a 650ml beer bottle by INR 8 to INR 10 as the AED climbs from 185% to 195%. Nagarajappa foresees an extra monthly revenue of INR 20 crore resulting from this modification.
After coming to power and succeeding the BJP government, Congress implemented a 20% AED hike on liquor sales in its first full-fledged budget soon after taking charge last year.
With the recent surge in prices, Karnataka is poised to have the highest liquor prices among the southern states. Despite consumers attributing the hike to the traditional summer season surge in beer sales, excise officials contend that the increase is strategically aimed at revitalizing the sales of Indian-made liquor (IML), which has witnessed a decline over the past year.
Sales of non-Indian Made Liquor (IML) with a lower contribution to government revenue than Indian beers have reached a peak. In 2023, beer sales experienced a 15% surge compared to the previous year, while IML sales saw a modest increase, slightly surpassing 2%.
Significantly, areas like Belagavi North, Belagavi South, Dharwad, Gada, and Udupi recorded negative growth, with 10 districts witnessing less than 1% growth in Indian Made Liquor (IML) sales. Despite excise officials asserting that the strategy intends to enhance IML sales by raising beer prices, aficionados find this explanation puzzling.
The Karnataka excise department argues that an upturn in beer prices may not necessarily lead to a surge in Indian Made Liquor (IML) sales. Instead, they suggest that the government should consider lowering IML prices as an alternative to bolster revenue, which is crucial for funding the envisaged expansion of the five poll guarantees in the upcoming fiscal year.
Bar owners suggest that the decrease in Indian Made Liquor (IML) sales can be attributed to the rise of budget-friendly beer brands in the market. Three recently introduced brands, priced at INR 100 per bottle, have become popular, particularly among the working class. This change in consumer preference toward affordable beer options has affected the demand for low-cost variants of IML liquor. In contrast to beer, IML carries a higher Alcohol by Volume (ABV).
Sunny Leone‘s journey has been a rollercoaster of careers, and it is not limited to Bollywood. First, she rocked the actress gig with films like Kennedy, Kuch Kuch Locha Hai, One NightStand, Ginna, and many more. Later, in 2019, she decided to try her hand at business.
She even managed to do so by starting a production company, SunCity Media and Entertainment, with her husband, Daniel Weber, which is the parent company of 3 of her brands: I am Animal (Unisex Athleisure Brand), Affetto (fresh line of fragrances), and Starstruck (cruelty-free cosmetics brand). Besides being a businesswoman, she’s also a full-on restaurateur.
From the big screen to the business scene to the kitchen – the 42-year-old is serving success on every plate. Leone recently opened her new restaurant in Noida on Saturday night, 20th January.
She named the restaurant ChicaLoca—a world cuisine restaurant and a gourmet cocktail bar. It’s the two-floored restaurant giving us a sneak peek into her fancy life.
What Does Sunny Leone Have to Say About Her Newly Launched Restaurant?
The Bollywood Diva attended the presentation with her husband, Daniel Weber, who already owns a cosmetics brand. She told Times of India, “To conquer the world.” The actress cum entrepreneur then went on to say, “On a serious note, I think is to findappropriate businesses to invest in or create and really create ideas.”
The inside ambience of ChicaLoca
The actress feels that entertainers should not limit themselves to only acting in films and TV shows. Instead, they should branch out to expand their brand influence, saying: “I think entertainers should not just stop at films and TV shows. We should definitely venture out and try new things so that we can expand our brand in many different ways.”
The Ontario native is joined by Sahil Baweja, director of Singing Bowls Hospitality at Gulshan One 29, in Noida, Uttar Pradesh, who shared, “We aim to create an environment that mirrors Sunny’s infectious energy and joyous persona.”
Chef Vaibhav Bhargava is the maestro behind the magic happening in the kitchen at Chica Loca. This place brings continental food – Indian, Oriental, Mexican, and Italian dishes all in one spot, matching flavors from around the world with some local favorites.
More than that, the mom of 3 isn’t only conquering the food scene, but she’s also mixing up magic in the drink department with “Potions by Sunny Leone,” offering selections of cocktails. It’s inspired by Sunny’s Bollywood adventures, travel, and personal experiences.
The restaurant features a vibrant atmosphere, a cool stage, a bar that knows its cocktails, and a terrace with breathtaking views. The actress is thinking big, aiming to take the venture for places like Goa, Hyderabad, and Mumbai.
According to the solvent extractors association, the government has asked cooking oil companies to align their product prices with the decline in international rates. However, manufacturers have indicated that an immediate reduction may not be feasible
Industry executives stated that a reduction in retail prices may not be achievable until March, when the mustard crop harvest kicks off.
“The ministry of consumer affair has expressed that the MRP on oils like soyabean, sunflower and palm oil have not been reduced to the extent of decrease in international prices,” said Ajay Jhunjhunwala, president of Solvent Extractors’ Association of India, in a letter addressed to association members on Tuesday.
Nevertheless, industry executives indicated that there is limited room for an immediate decrease in prices.
“Cooking oil prices have been very stable. There was no steep increase or decrease in prices. Our MRP is corrected every month in line with the prevailing price trends. We do not foresee immediate correction in prices,” said Angshu Mallick, CEO of Adani Wilmar, which sells cooking oil under the ‘Fortune’ brand. “However, we keep on watching the international commodity prices and will take action based on that.”
Sandeep Bajoria, CEO of vegetable oil brokerage Sunvin Group, said, “Prices had declined by about 10% in December and have again increased by 8% in January.”
Executives mentioned that the majority of companies could only manage a price reduction of 3-4%.
India’s leading retailers have considerably decelerated their store expansion in the current fiscal year. According to their latest investor disclosures, the top five retail chains—Reliance Retail, Titan Company, Avenue Supermarts (owner of DMart), V-Mart Retail, and Shoppers Stop—have collectively opened 44% fewer stores in the first three quarters through December compared to the same period last year. This slowdown follows a record number of outlets opened by these retailers in the previous year.
During the period between April and December, Reliance Retail inaugurated 1,276 new stores, a significant decrease from the 2,376 stores opened in the corresponding period the previous year. Titan Company, owned by Tata, launched 239 outlets encompassing various brands, including Tanishq jewellery stores, a decline from the 359 stores opened in the same period last year. Avenue Supermarts, on the other hand, introduced 17 new DMart stores, down from 22 stores the previous year.
V-Mart and Shoppers Stop expanded their store presence compared to the first nine months of the previous fiscal year. V-Mart’s new store count increased from 42 to 46; however, considering closures of underperforming outlets, the net addition dropped to 31 from 34. Shoppers Stop has not disclosed its net count, as it hasn’t reported the number of stores it closed. Additionally, the retailer operates in the bridge-to-luxury and premium segment, which is less affected by shifts in consumption patterns.
According to top industry executives, the slowdown in store expansion can be attributed to a heightened focus on profitability. This shift occurred as consumption failed to reach the expected levels, and most new markets are already saturated with 2-4 retailers, leaving minimal room for additional outlets.
Lalit Agarwal, the Managing Director of V-Mart, said that until the last fiscal year, numerous untapped markets remained available. However, the scope for exploration has diminished as many retailers have undertaken significant expansion efforts.
“There is also a mindset change in the expansion strategy where the focus is now on profitability since overall consumption has not picked up. The rural and mass segment has improved year-on-year, but we are yet to return to the original consumption levels,” he said. “Hence, expansion has become muted for the industry this fiscal.”
Moreover, the expansion during the previous fiscal year was influenced by pent-up factors, as store additions during the peak of the Covid period (FY21 and FY22) were hampered by restrictions on offline store operating hours. According to a recent report from Jefferies, Reliance Retail has curtailed its retail business capital expenditure, and it is expected to remain moderate. The report highlighted that the peak investments in supply chain and digital infrastructure have already been made, and the pace of store additions has decreased. In the last quarter, Reliance Retail’s net store addition stood at 124, marking the lowest figure in five years, excluding the quarters affected by the Covid pandemic.
Continued inflation and a decrease in funding for startups might pose challenges for the cloud kitchen segment in India, making it difficult to maintain the pace of revenue growth seen in the past.
The earnings reports of the first two quarters for listed restaurant and food companies indicate a broader trend of sluggish growth amid macroeconomic headwinds.
In the fiscal year 2023, Rebel Foods, backed by Peak XV Partners and Coatue, reported a notable 40% year-over-year growth in revenue. Simultaneously, Curefoods, supported by Accel, witnessed a quadruple increase. Similarly, Biryani by Kilo, with backing from Alpha Wave, experienced a doubling of its revenue.
Listed restaurant chains like Jubilant Foodworks, Restaurant Brands Asia, Westlife Development, Devyani International, Sapphire Foods, and Barbeque Nation experienced year-over-year topline growth of 17-48% in the previous fiscal year. However, this growth narrowed to 6-22% in the first half of FY24, with Barbeque Nation reporting flat revenue growth during the April-September period.
Ankush Grover, CEO and co-founder for India and MENA regions at Rebel Foods, stated that the multi-brand company is experiencing a consistent year-over-year growth of 15-20% for its key brands such as Behrouz Biryani and Oven Story.
Ankit Nagori, the founder of Curefoods, emphasized that companies are prioritizing sustainable growth. Curefoods anticipates achieving a revenue of INR 800 crore by the end of FY24, reflecting a growth of over 100% from FY23.
“Inflation as well as interest rate increases are hampering the overall size of the consumer plate,” Nagori said. “For us, the food costs have gone up, and for customers the wallet sizes have shrunk. In general, disposable incomes are lower than the last 18 months, and I’m hoping it will correct in the next few months.”
Rebel Foods manages various brands like Faasos, Oven Story, and Behrouz Biryani. Curefoods oversees a range of cloud kitchen brands, including EatFit, CakeZone, Nomad Pizza, Sharief Bhai, and Frozen Bottle.
While Jubilant Foodworks holds the master franchise for Domino’s Pizza, Dunkin Donuts, and Popeye’s in India, Westlife Development operates McDonald’s restaurants in the southern and western regions of the country. As for Burger King, its master franchisee in India is Restaurant Brands Asia.
Devyani International manages Yum! Brands restaurants like Pizza Hut and KFC across 14 regions, including Karnataka, Telangana, Andhra Pradesh, and West Bengal. Meanwhile, Sapphire Foods oversees Pizza Hut and KFC outlets in 10 regions, encompassing Maharashtra, Delhi, Haryana, and Gujarat. Speciality Restaurants handles establishments such as Oh! Calcutta and Mainland China.
“There’s no doubt that more Indians are eating out…that’s in tandem with the growing young population, especially in urban areas with a demography of working professionals who don’t choose to cook at home,” a Mumbai-based consumer sector analyst said. “This is the cohort that will drive growth, because for these customers, eating out is not necessarily a discretionary spend.”
However, at present, the larger brands appear to be encountering a deceleration in their growth. According to industry experts, the price hikes implemented by restaurant chains and eateries in the past 12-15 months to address escalating food inflation may have reached their maximum elasticity.
Moreover, the rise of alternative choices like local chains or smaller brands may pose a challenge to their larger counterparts in competing for a slice of the market.
“On the pretext of inflation, a lot of restaurants, including cloud kitchen brands, started increasing their prices. While initially it worked out, there’s a tipping point to how much you can increase without impacting the demand,” explained Arvind Singhal, Chairman of Gurgaon-based consumer retail-focused consultancy firm Technopak. “The same thing is happening in the FMCG industry, where the story of premiumisation has been overplayed.”
He said, “The other factor is for every segment within the restaurant sector, there are more options available to the customer. Overall, the food and beverage sector is not suffering…simply because so much is starting to come from smaller players.”
According to Singhal, there has been a notable surge in the number of small eateries and restaurants after the Covid-19 pandemic.
As of September 30, 2023, Zomato, the food-delivery company, reported having 238,000 restaurant partners on its platform, compared to 207,000 the previous year and 173,000 as of the end of September 2021. This number includes both existing restaurants onboarded by Zomato and serves as a partial proxy for new eateries emerging on the platform.
Curefoods’ Nagori said, “Last two-three years, there were a lot of tailwinds in the cloud kitchen business including the change in consumer behaviour. Funding in the sector also fuelled a lot of growth. Next few years are all about chasing profitability, while also looking at omnichannel–that’s the only way to grow in tier-II, tier-III markets.”
In the October-December quarter, United Spirits reported a consolidated net profit of INR 350.2 crore, marking a 63 percent year-on-year (YoY) increase from the INR 214.2 crore reported in the corresponding period of the previous year.
The consolidated revenue from operations in Q3FY24 rose by 5.3 percent year-on-year (YoY) to reach INR 6,962 crore, compared to INR 6,609.8 crore in the corresponding period of the previous year.
In Q3FY24, the volume of cases for the Diageo-owned company declined by 1.8 percent Year-over-Year (YoY) to 16,476.
In the quarter spanning October to December, the sales of United Spirits’ Prestige and Above (PA) category surged by 10 percent Year over Year (YoY), reaching INR 2,369 crore. During the same period, PA volumes experienced a 4.6 percent growth, totaling 13,419 cases.
In the third quarter of FY24, the sales for the popular category dropped by 12.6 percent Year over Year (YoY) to INR 305 crore, with volumes witnessing a decline of 22.8 percent to 3,057 cases during the same period.
“Our consumer engagement remained high with a slew of festivals, the cricket world cup and peak wedding season. The focus on continuous improvement and value chain productivity is reflected in the performance,” said Hina Nagarajan, chief executive officer and managing director of United Spirits.
He further said that, as the company looks ahead, it maintains a cautiously optimistic stance on growth. This optimism is underpinned by ongoing investments in its brands, a firm belief in the potential of their innovation and renovation pipeline, and a long-term confidence in the consumer potential of India.
United Spirits’ range of products includes Indian-made foreign liquor such as whisky, brandy, rum, vodka, gin, and wine. Among its notable brands are Johnnie Walker, McDowells, Signature, and Smirnoff.
The Indian Hotels Company (IHCL) announced the signing of its third hotel in Ayodhya, Uttar Pradesh. According to a company statement, this brownfield project will bear the IHCL SeleQtions branding.
Puneet Chhatwal, Managing Director and Chief Executive Officer of IHCL, mentioned that this signing is in line with IHCL’s strategy to establish a significant presence in spiritual destinations.
“Ayodhya’s remarkable transformation to a world-class pilgrimage destination, marked by the inauguration of the Ram Janmabhoomi Mandir, is poised to draw an influx of tourists from around the world,” he said.
“This new hotel addition reflects our commitment to developing cultural circuits and itineraries, harnessing their tourism potential. IHCL will now offer three distinct brands in Ayodhya of about 400 rooms and we are delighted to collaborate with KM Vyapar Ltd for this SeleQtions hotel,” he added.
The company said that the 150-key hotel, spanning 1.3 acres, is conveniently located within a short driving distance from the upcoming Maryada Purushottam Shri Ram International Airport and well-known tourist attractions.
IHCL announced that it will offer various dining choices, including an all-day diner, along with additional recreational amenities such as a spa, swimming pool, and fitness center.
The hotel will also offer over 10,000 square feet of banqueting space for social gatherings and corporate events.
Aditya Jhunjhunwala, the promoter of KM Vyapar Ltd, expressed his delight in collaborating with IHCL for the hotel.
“We are confident that the company, with its successful track record of pioneering new destinations, will contribute to the growth and enhancement of Ayodhya’s hospitality landscape,” he added.
With this addition, IHCL will now have three hotels representing the SeleQtions, Vivanta, and Ginger brands in Ayodhya.
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