Actress Shilpa Shetty Kundra has collaborated with fashion consultant Ashmika Sadh to establish a new venture, marking her entry into the children’s clothing industry.
The venture Zip Zap Zoop seeks to redefine the landscape of the kids’ and teenagers’ clothing industry.
With the launch of Zip Zap Zoop, Shetty aims to push the boundaries and redefine the children’s clothing industry, as stated by the company.
”I have always wanted to understand the manufacturing process, whether the dyes are chemical free, the fabric is azo-free, friendly for kids as well environmentally sustainable,” Shetty said.
According to the brand, 80% of its assortment is crafted from sustainable materials such as organic cotton and recycled polyester, minimizing environmental impact and reducing waste. Additionally, the brand has directly and indirectly hired over 100 workers, with plans to create more job opportunities in the future. The goal is to have 1000 employees associated with the Zip Zap Zoop brand.
Sadh added, “We have introduced some special kinds of fabrics in our line of clothing which are extremely soft, comfortable & hypoallergenic, suitable for children who have sensitive skin allergies.”
Zip Zap Zoop is set to debut with a collection of 500 styles, featuring a diverse range of options in terms of styles and sizes for both boys and girls, spanning ages 0-19. This inclusive approach ensures that no child is left out. The brand’s objective is to simplify choices for both parents and kids, with the intention of establishing a devoted customer base in the months ahead.
The kids apparel market caters to kids aged 0 to 14. According to a report, India’s kids apparel market reached a size of $21.1 billion in 2022 and is expected to expand at a CAGR of 2.6% to $24.5 billion by 2028.
Last year in May, the online kids’ apparel retailer Hopscotch disclosed that its parent company, Hit the Mark, Inc., had successfully raised $20 million in a funding round led by Amazon.
The US-based asset management companyFidelity has once again lowered the valuation of Meesho on its books, now assessing the e-commerce startup at $3.5 billion.
This represents a 29% decrease from Fidelity’s highest valuation of $4.9 billion for Meesho.
In December 2023, the asset manager reviewed its investment in the ecommerce unicorn, valuing it at $27.8 million. This marked a decline from the initial investment of $41.9 million made in the latter half of 2022 through a designated mutual fund unit, as reported by TechCrunch.
It is worth mentioning that Fidelity previously reduced Meesho’s valuation to $4.1 billion by the end of October.
Meanwhile, commenting on the latest valuation markdown, a Meesho spokesperson said, “Funds attribute value to their portfolio investments, considering various factors such as the valuation of comparable companies. Based on Fidelity filings, the number of shares held and the current number of total outstanding fully diluted shares, the valuation is assessed at $3.5 Bn. The increase in the number of outstanding shares, notably due to the ESOP pool expansion, could have contributed to this valuation shift.”
Over the past year, Fidelity has consistently reevaluated the valuations of its Indian portfolio startups. In April 2023, Meesho’s valuation was reduced by 9.7% to $4.4 billion, followed by an internal upward adjustment of 5.41% in July.
In October 2023, the US-based firm also adjusted the valuation of the payments solution platform Pine Labs to $3 billion, down from $4.7 billion at the end of August. The fintech startup had previously achieved a valuation of over $5 billion after securing a $150 million funding round in 2022.
It’s important to highlight that valuation methodologies vary from investor to investor, and a reduction in valuation by Fidelity doesn’t automatically imply a negative perception from other investors. Nevertheless, there could be a cascading impact.
Meanwhile, the e-commerce unicorn Meesho is considering the development of a financial services platform and expanding its grocery delivery business in the upcoming financial year.
Established in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho, once lauded as the epitome of social e-commerce, underwent a strategic shift in 2022 to transform into a marketplace. Among its investors are notable names such as SoftBank, Peak XV, Fidelity Investments, Prosus, and Meta.
In a recent report, brokerage Bernstein stated that Meesho is capturing market share and emerging as the fastest-growing e-commerce platform in India, driven by the robust growth observed in Tier II and III cities.
According to the brokerage, Meesho experienced a 32% year-on-year increase in its user base, reaching approximately 120 million average monthly users (MAUs) in December 2023.
In a bid to enhance its product accessibility, Swedish furniture retailer Ikea is set to initiate online doorstep deliveries to 62 new districts in Maharashtra, Karnataka, Telangana, and Andhra Pradesh from February 1.
The prominent retail chain also has plans to introduce e-commerce deliveries in the Delhi-NCR region within a year.
Susanne Pulverer, CEO & CSO, Ikea India, said, “Ecommerce channel has seen significant growth in tier-2 and tier-3 cities. We have seen customers travelling from a number of neighbouring markets to our stores in Bengaluru, Hyderabad and Mumbai. Sometimes they travel half a day to come to our stores. In order to make ourselves accessible in tier-2 and tier-3 cities, we have decided to open up doorstep deliveries to additional markets in these four states. We have over time developed fulfillment capacities through our stores to serve these new markets.”
This marks a shift in the Swedish furniture retailer’s strategy, focusing on launching new physical stores and enabling broader access to its products through e-commerce operations.
Currently, the online channel constitutes 25 percent of Ikea India’s sales, with the company anticipating a further increase in this share as it expands into new markets.
Presently, Ikea operates three large-format stores in Hyderabad, Navi Mumbai, and Bengaluru, along with two city stores in Mumbai. Additionally, its products are accessible online in Mumbai, Bengaluru, Chennai, Hyderabad, Pune, and Surat.
“We have building capabilities to ensure that the online shopping expierence is seamless for our consumers in these additional markets and products arrive within the timelines that we promise. So we are working with partners for delivery. We believe we can do well in fulfilling doorstep deliveries from our stores to these 62 districts within a reasonable lead time of 7-10 days,” she added.
Discussing online shopping patterns, she highlighted that consumers typically start by purchasing smaller items, such as home furnishings and accessories.
“As consumers get acquainted with the brand, gradually they also begin buying furniture online,” she added.
Responding to a query on plans for the Delhi-NCR region, Pulverer said, “We have been working on building our presence in Delhi-NCR, a key North market. That will be our next initiative. We plan to commence online operations in about a year in Delhi which will be followed up with the opening of the meeting place integrated with an Ikea store in Gurgaon sometime in 2025.”
According to Pulverer, a recent report from Ikea revealed that 71 percent of Indian consumers hold a positive outlook for the next two years, surpassing the global average of 47 percent.
“So Indian consumers are quite positive. This is the growth decade for India and we are looking forward to more and more Indians investing in homes with rising disposable incomes. India is a priority market and we are looking forward to good growth in this decade,” she added.
Spanish fashion brand Mango highlighted the importance of India in its global growth strategy, citing the rising demand for women’s western wear, the robust retail infrastructure developed over the past decade, and the widespread adoption of online shopping in the country.
Daniel Lopez, chief expansion and franchise officer at Mango, said, “India is one of the 10-15 markets that matter the most today in the strategy of Mango for the growth of the company. The country has grown appetite, especially in the women’s wear in the western segment. The country has given itself much better infrastructure, on retail.”
“India is a very online connected country and this has led the country worldwide in terms of online intelligence,” he added.
Mango currently operates 110 stores in India through its collaboration with Myntra. The fashion brand initially entered the Indian market almost two decades ago in association with Major Brands, later partnering with DLF for further expansion. However, in 2014, Mango formed a partnership with Myntra for its online platform, and in 2017, this collaboration extended to include the opening of physical stores as well. On a global scale, the retailer aims to launch 500 new stores by 2026 in key markets such as the US, the UK, and India, as part of a three-year strategic plan. Despite experiencing a 50% increase in online demand last year, Mango expressed its commitment to expanding its physical store presence in India to 120.
“In Spain, with 45 million inhabitants, we have 350 stores and in France, with 70-80 million inhabitants, we have very close to 250. So, I think that the journey has just started in India and the roots are very solid, but we still have a lot to do ahead of us,” added Lopez.
The retailer underscored its intention to retain existing price tags, avoiding any adjustments that might dilute its global positioning centered on a strong focus on quality and in-house design. Despite the premium pricing, Mango has consistently been Myntra’s top-selling global brand in women’s western wear for the past two years.
“Mango is one of the preferred brands for the metros and is growing with our non-metro shoppers aspiring to get their hands on the latest in global fashion. The brand drops fresh styles every month and endeavours to ensure latest trends are accessible,” said Sharon Pais, chief business officer, Myntra.
Starbucks, the renowned US-based coffee chain, has marked its entry into Himachal Pradesh with the unveiling of a new drive-through store, as shared by a company official on social media. Positioned along the Shimla-Dharampur highway, this latest addition showcases Starbucks’ commitment to expanding its reach across diverse regions.
“Excited to announce that Starbucks has finally set its foot in the state of Himachal Pradesh with our latest and one of the most anticipated and iconic Drive thru store in the entire region,” expressed Rahul Chaudhary, Business Development – North at Starbucks India, in a LinkedIn post.
Operating 24/7, the new store marks the seventh drive-through location for the coffeehouse chain in India. The first drive-through Starbucks outlet in the country was launched in 2020 at Zirakpur, Punjab, situated on the Ambala Chandigarh Expressway.
“Our new Starbucks drive-thru is not just about convenience; it’s a testament to the spirit of progress and innovation that defines our nation. As we honor our rich history and look toward a bright future, this store represents a fusion of modernity and tradition,” wrote Shantanu Karekar, senior manager at Tata Starbucks on social media.
In India, the Starbucks-branded coffee chain is run through a 50:50 joint venture between Seattle-based Starbucks Coffee Co. and Tata Consumer Products Ltd. Since 2012, Tata Starbucks has successfully launched more than 390 stores spanning 54 cities in India, employing approximately 4,300 individuals.
The company aims to operate 1,000 stores in India by 2028, with a target of opening one new store every three days.
Heritage Foods posted a net profit of INR 27 crore in the third quarter ended December 31, 2023, marking an impressive year-on-year growth of 96.4%. Throughout the quarter, the company recorded a revenue of INR 941.10 crore, demonstrating substantial growth of 19.7%.
Brahmani Nara, Executive Director of Heritage Foods, said, “We continued our strong growth momentum in topline and bottom line in the third quarter of financial year 2023-24, driven by strong volume growth in our valued-added products (VAP) segment. This segment contributed 70 per cent of the incremental volumes.”
“We have been making strong inroads in expanding its distribution network and launching new products which have seen good consumer acceptance,” she added.
During the quarter, there was a 14.29% growth in the company’s average daily milk procurement level, reaching 1.63 million litres per day (MLPD) compared to the same quarter last year.
“The average milk procurement price decreased by INR 0.57 a litre, or 1.31 per cent over the comparable quarter last year, to INR 43.09/ a litre,” she said in a statement on Monday.
“While sales (milk) volumes went up by 2.32 per cent year-on-year to 0.025 MLPD, the average milk selling prices increased by INR 2.71 a litre, showing a growth of 5.18 per cent year-on-year, to INR 55 a litre,” she said.
Meanwhile, the board of directors of the company re-appointed N. Bhuvaneshwari, wife of former Andhra Pradesh Chief Minister N. Chandrababu Naidu, as a whole-time director designated as Vice-Chairperson and Managing Director of the company for a further term of five years.
N. Brahmani, the daughter-in-law of Naidu, has been appointed as whole-time Director designated as Executive Director for a five-year tenure.
Wholesale prices of tur dal have increased by 5% in the last month, despite the arrival of new crops and ongoing imports from Myanmar. According to industry representatives, the supply chain is being affected by reduced acreage and a second consecutive year of decreased production.
In 2023, retail prices for tur/arhar had peaked at INR 200/kg but experienced a decline of 5-10% in December. This reduction was attributed to price control measures, including the facilitation of yellow peas imports, stricter government monitoring of stock limits, and the sale of subsidized Bharat chana dal.
However, this also resulted in a significant drop in prices for whole unprocessed tur beans, coinciding with the commencement of the kharif crop harvest. Many farmers opted to withhold their produce, leading to a decreased availability of tur in the market.
“The availability of tur in the market had reduced when prices hit the bottom as farmers opted to wait for prices to recover,” said Latur-based dal miller Nitin Kalantry. “After dipping to a low of INR 85/kg from the high of INR 120/kg, tur prices are again on the recovery path.”
According to the Indian Pulses and Grains Association (IPGA), tur prices have seen a consecutive four-week surge, driven by the escalating purchases of whole tur by dal millers for processing into dals.
India has been fulfilling its domestic demand for tur dal through imports from Myanmar and Africa. Nevertheless, challenges from the local government in Africa have impeded supplies, while those from Myanmar are reported to be lower than anticipated, according to industry insiders.
Diversified entity ITC Ltd on Monday reported a 6.51% surge in its consolidated net profit for the December 2023 quarter, totaling INR 5,400.51 crore. This notable increase was driven by the resilient performance of the FMCG vertical. According to a regulatory filing by ITC, the company had recorded a consolidated net profit of INR 5,070.09 crore in the October-December period a year ago.
The gross revenue from sales increased by 2.3%, reaching INR 19,337.84 crore during the quarter under review. This marked a rise from INR 18,901.76 crore in the same quarter a year earlier.
In the December quarter, ITC’s revenue from operations reached INR 19,484.50 crore, reflecting a 2.43% increase from INR 19,020.65 crore recorded a year earlier.
“Amidst a challenging macro-economic and operating environment, as stated above, and high base effect in some of its operating segments, the company delivered a resilient performance during the quarter,” said ITC in an earning statement.
The total expenses of the Kolkata-headquartered firm rose by 5.33%, reaching INR 13,453.73 crore.
In the quarter, ITC’s revenue from the ‘total FMCG’ segment, encompassing the cigarettes business as well, increased by 4.47%, reaching INR 13,513.43 crore, compared to INR 12,934.67 crore in Q3 FY23.
The revenue generated from the cigarette business experienced a modest increase of 2.59%, reaching INR 8,295.18 crore in the October-December quarter. In the same quarter of the previous fiscal year, it stood at INR 8,085.72 crore.
Its differentiated variants and premium segment continue to perform well during the quarter.
“The cigarettes business witnessed consolidation on a high base after a period of sustained growth momentum,” said ITC.
ITC’s revenue from the FMCG-others segment was also up 7.61 per cent at INR 5,218.25 crore in Q3 FY24 against INR 4,848.95 crore in the year-ago period.
“The FMCG Businesses delivered resilient performance amidst a slowdown in consumer demand; staples, dairy, beverages, fragrances, personal wash, homecare, agarbattis, classmate notebooks and pens drive growth,” it said.
Competitive intensity remained high in certain categories such as biscuits, snacks, noodles, and popular soaps, including from local and regional players.
ITC’s FMCG-others segment consists of branded packaged foods like staples, snacks, meals, dairy and beverages, confections, apparel, education and stationery products, personal care products, safety matches and incense sticks.
The revenue from ITC’s Hotels segment surged 18 per cent to INR 872.46 crore.
It witnessed strong growth in ARRs (average room rents) and occupancies across properties driven by (packages), MICE (Meetings, Incentives, Conferences and Exhibitions) segments and marquee events like the ICC Cricket World Cup, it added.
“Segment EBITDA margin expanded by 470 bps year-on-year to 36.2 per cent driven mainly by higher RevPAR (revenue per available room) operating leverage and strategic cost management initiatives,” it noted.
ITC’s agribusiness was marginally down to INR 3,273.23 crore in the December quarter of FY24 as it was impacted by restrictions on wheat and rice exports. It was INR 3,305.21 crore in the year-ago quarter.
“The operating environment remained challenging due to various policy interventions of the Government of India to ensure food security and control inflation which limited business opportunities for the agribusiness,” it said.
ITC’s revenue from the ‘paperboards, paper and packaging’ segment fell 9.74 per cent to INR 2,080.91 crore on account of a subdued consumer demand and a relatively muted festive season.
The export markets in the segment remain impacted by low-priced Chinese supplies.
“Margins were impacted largely by a sharp drop in realisations and unprecedented surge in domestic wood costs due to increased demand from competing industries,” it said.
Revenue from other segments, including its information technology services, branded residences etc, rose 10.86 per cent to INR 950.04 crore against INR 856.91 crore in Q3 FY22.
Meanwhile, in a separate filing, ITC informed that its board in a meeting held on Monday declared an interim dividend of INR 6.25 per ordinary share of INR 1 each for the financial year ending on March 31, 2024.
The board also recommended the approval of the appointment of Atul Singh as a Non-Executive Director and Pushpa Subrahmanyam as an Independent Director, both for a period of five years with effect from April 2, 2024.
Shares of ITC on Monday settled at INR 450 apiece on the BSE, down 1.20 per cent from the previous close.
Meesho, an e-commerce company backed by SoftBank, plans to develop a financial services platform and expand its grocery delivery business in the upcoming financial year. This strategic move comes after a dedicated year of efforts to reduce significant losses, aligning with the broader trend in the online commerce industry, where companies are prioritizing profitability amidst increasing competition.
Walmart-owned Flipkart is making significant strides in the fintech arena with the establishment of its own venture, Super.Money, led by senior executive Prakash Sikaria. The company has committed an investment of $15-20 million to propel this new initiative.
“Flipkart is already testing a full-stack buy now-pay later and personal loan platform,” said a person aware of the matter. “It’s scaled quite fast and more lending products will be added this year.”
Meesho aims to initiate a credit marketplace, sourcing borrowers on behalf of its lending partners, which include both banks and non-banking financial companies (NBFCs). The company is set to earn a commission for every disbursal in this arrangement.
“They (Meesho) are experimenting with a lending platform, but there is a serious focus on this internally. It’s still early days,” said a person aware of plans.
According to a spokesperson from Meesho, ventures into financial services and grocery represent just a couple of the diverse initiatives the company is undertaking. The spokesperson highlighted that the startup has identified challenges related to accessing credit lines.
“Initiatives like providing sellers quicker access to payments are driving both financial inclusion and the growth of small businesses,” the spokesperson said.
After downsizing in 2022, the e-commerce company is now contemplating a re-launch of its services, with plans to reintroduce the service in one or two cities starting in April, as mentioned by the sources.
“They may expand, depending on how it goes,” one person said.
A senior fintech executive said, “For ecommerce players with a large user base, offering financial services is understandable, but there are large investments required since it is a regulated space. Also, the quality of the book is important, given the kind of users it caters to.”
Bigger rival Amazon India offers consumer credit and payment services through Amazon Pay. In parallel, the group’s e-commerce arm, Tata Neu, has ventured into lending to consumers, partnering with multiple financiers, including Tata Capital.
The executive emphasized that Meesho is not merely interested in functioning as a lead generator for its lending partners. Instead, the company is focused on developing its own credit underwriting models, decision-making systems, fraud detection, and other related capabilities. The objective is to establish a comprehensive suite of credit products.
The startup’s recent endeavors are perceived as connected to its aspirations of achieving a higher growth rate in the upcoming fiscal year. According to several informed individuals, the company is actively searching for a senior executive to spearhead the lending function. Simultaneously, it is working towards establishing an in-house credit risk and data science team.
Initially concentrating on handling merchant loans, Meesho aims to extend its lending services to consumers, particularly in non-metro areas. The platform predominantly features products with an average selling price below INR 500.
“When you are pitching to large banks and NBFCs for business partnership, you need to give them the right customers and also manage the book so credit losses do not shoot up,” said one person quoted above.
In 2022, Meesho underwent a substantial reduction in its grocery operations as part of an internal reset. Formerly operating the business under the name Farmiso, it rebranded it as Meesho Superstore and seamlessly integrated it into the main app. During this period, the company terminated at least 150 on-contract employees, along with off-roll staff.
“The burn is likely to go up in the low-margin grocery business, with expansion. The extent of aggressiveness will determine the scale,” said a person aware of current plans.
At a Flipkart townhall last week, the group chief executive, Kalyan Krishnamurthy, shared with employees that the company’s grocery business witnessed a substantial 50% year-on-year growth in 2023.
In 2023, the Bengaluru-based company terminated 15% of its workforce across 251 roles, citing the optimization for a “leaner organizational structure to attain sustained profitability.”
In FY23, Meesho achieved a 48% reduction in losses to INR 1,675 crore, while experiencing a remarkable 77% growth in operating revenue, reaching INR 5,735 crore. For the April-September 2023 period, the company reported a 37% year-on-year increase in operating revenue, totaling INR 3,521 crore, coupled with a substantial 90% reduction in losses, amounting to INR 141 crore.
In August last year, Meesho announced its first profits for the month of July. Subsequently, in a media statement released in December, the company affirmed the profitability of the September quarter, although specific numerical details were not disclosed.
On January 25, it was reported that Krishnamurthy informed Flipkart employees that the company was close to achieving profitability.
Tamil Nadu State Marketing Corporation (TASMAC) has announced a price hike in various liquor categories, effective February 1. The state-run liquor giant will increase prices by INR 10 to INR 80, impacting popular choices like beer, brandy, whiskey, and rum.
TASMAC‘s decision means an added expense of INR 10 for a 650 ml beer bottle. For ‘ordinary’ and ‘medium’ range brandy, whiskey, and rum, a 180 ml (quarter) will face a INR 10 increase, while the ‘premium’ range will see a hike of INR 20. The updated schedule suggests that larger quantities of alcoholic beverages will also incur higher prices.
The price surge is attributed to higher sales tax and excise duty, marking the first increase in Indian Made Foreign Liquor (IMFL) prices in two years. This move comes as TASMAC introduces exclusive sales of imported liquor brands at elite outlets.
The ordinary liquor range, constituting 40% of TASMAC sales, will be priced at 130 per quarter bottle, 260 per half bottle, and 520 per full bottle. Meanwhile, the medium range varies between 160 and 640. TASMAC offers a diverse selection, with 43 brands in the ordinary category, 49 in the medium range, and 128 premium brands, alongside 35 beer brands and 13 wine brands.
Consumers in Tamil Nadu will feel the pinch of these price hikes, affecting their budgets and preferences. The decision to raise prices across the board emphasizes TASMAC’s strategy to generate revenue, particularly from higher-end products. This move highlights the potential challenges for consumers in managing their expenses and adjusting their purchasing choices in response to the elevated prices.
TASMAC’s announcement of a liquor price hike in Tamil Nadu from February 1 will impact a wide range of alcoholic beverages. The move, driven by increased sales tax and excise duty, aims to bolster revenue and introduces exclusive sales for imported liquor at select outlets. As consumers brace themselves for the impending changes, the state’s liquor landscape undergoes a significant shift.
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