Adani Wilmar’s Q3 profit slides 18% YoY to INR 201 Crore; revenue witnesses a 17% decline

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January 31, 2024

On Wednesday, Adani Wilmar, the FMCG division of the Adani Group, reported an 18% decrease in its profit for the December quarter on a year-on-year basis. The profit stood at INR 200.9 crore, contrasting with the INR 246.1 crore reported in the corresponding quarter of the previous year.

In the September quarter of FY24, the company incurred a loss of INR 130.7 crore.

The company witnessed a 17% year-on-year decline in revenue, amounting to INR 12,828.3 crore compared to INR 15,438 crore in the corresponding quarter of the previous year.

Nevertheless, the company attained its second-highest EBITDA to date, amounting to INR 504 crores in Q3.

The company’s profitability has once more stabilized, recording an EBITDA of INR 504 crore in Q3, following two quarters of subdued profits attributed to high-cost inventory and hedge disalignment. According to a BSE filing, the Bangladesh subsidiary’s profitability remains under pressure due to local currency issues.

“The revenues from the branded products in the domestic market, under the Food & FMCG segment have been growing at 40%+ YoY in the past 9 quarters enabling us to close FY’24 with an estimated ~INR 5,000 crore of revenue in the segment,” said Angshu Mallick, MD & CEO, Adani Wilmar.

“We are putting our energies in rapidly scaling up our distribution network for General Trade to realize the immense opportunity available in the packaged staple foods. At the same time, we are developing our HORECA and Exports channels which will continue to witness much faster growth in the near future,” Mallick said.

Adani Wilmar’s edible oil volume remained unchanged year-over-year in Q3, but experienced an 8% growth during the first nine months of FY24. Meanwhile, branded products saw a 3% year-over-year growth in Q3 and a substantial 15% increase in the nine-month period of FY24.

Continue Exploring: Adani Group mulls over divestment in Adani Wilmar, decision expected in three months

In Q3, the edible oil segment generated INR 9,711 crores in revenue, reflecting a 7% sequential growth from Q2. However, in year-over-year (YoY) terms, the revenue appears to be 23% lower in Q3 FY24. This YoY decline is primarily attributed to reduced product pricing throughout the year, aligning with decreased raw-material costs.

The Food & FMCG sector, comprising items like wheat flour, rice, pulses, besan, sugar, poha, and soap, maintained strong performance. In the quarter, the segment witnessed a 25% year-over-year revenue increase, driven by a substantial underlying volume growth of 17% year-over-year.

During the first nine months of fiscal year 2024, the Food & FMCG segment achieved a turnover of INR 3,653 crores, reflecting a substantial year-over-year growth of 26%.

For the past nine consecutive quarters, there has been a consistent year-over-year growth of over 40% in the revenue of branded products in the domestic market.

The volume of industry essentials experienced a 17% year-over-year growth in Q3’24 and a 21% year-over-year growth in the first nine months of fiscal year 2024, driven by the expansion of Castor & Oleochemical businesses. The segment achieved a revenue of INR 1,844 in Q3 and INR 5,777 in 9M FY’24.

ISMA projects a 10% drop in India’s gross sugar output to 330.5 Lakh Tonnes for 2023-24 marketing year

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January 31, 2024

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The Indian Sugar Mills’ Association (ISMA) has projected a 10% decrease in India’s gross sugar production for the current marketing year, ending in September. The estimate, which excludes any diversion for ethanol, anticipates a decline to 330.5 lakh tonnes. This decrease is attributed to expected lower output in Maharashtra and Karnataka, as per ISMA’s second advance estimates for the 2023-24 marketing year, released on Wednesday.

The industry organization has projected a gross sugar production of approximately 330.5 lakh tonnes in the fiscal year 2023-24, contrasting with the previous year’s figure of 366.2 lakh tonnes. Maharashtra’s projected gross production is expected to decrease from 118.5 lakh tonnes to 99.9 lakh tonnes, and Karnataka may see a decline from 65.8 lakh tonnes to 49.7 lakh tonnes.

In Uttar Pradesh, the gross output is seen increasing marginally to 119.9 lakh tonnes from 118.9 lakh tonnes during the period under review.

“The government has so far allowed sugar diversion of only 17 lakh tonnes for production of ethanol via sugarcane juice/B-heavy molasses for 2023-24. This would mean net sugar production could be around 313.5 lakh tonnes,” ISMA said in a statement.

During the 2022-23 marketing year, net sugar production amounted to 328.2 lakh tonnes, including the diversion of 38 lakh tonnes for ethanol production from sugarcane juice and B-heavy molasses. However, with the government permitting limited diversion for the current year, there is an expected 4.5% decrease in net sugar production.

Continue Exploring: Sugar stocks rally with an 8% boost after India’s revoked ban on sugarcane juice for ethanol production

Considering an opening stock of about 56 lakh tonnes on October 1, 2023, domestic consumption of 285 lakh tonnes and the estimated net production of 313.5 lakh tonnes, ISMA said the closing stocks would be comfortable around 84.5 lakh tonnes as on September 30, 2024.

“We believe that the government may now easily allow around 18 lakh tonnes of additional sugar diversion for production of ethanol in the current ESY (Ethanol Supply Year). Even then, closing stock will be sufficient enough to cater around three months into the next season,” the association said.

Meanwhile, ISMA said 187.2 lakh tonnes of sugar has been produced during the October-January period of 2023-24 marketing year as against around 195 lakh tonnes in the corresponding period of the previous year.

Vegan and keto diets elicit innate and adaptive immune responses, altering gut microbiome: NIH Study

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January 31, 2024

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According to the latest research, shifting to a vegan diet can activate responses related to innate immunity, the immune system one is born with. Conversely, adopting a keto diet—characterized by high fat and low carbs—may initiate responses typically associated with adaptive immunity, the immune system developed over time in response to external infections and vaccinations.

Alongside modifications in the immune system, shifts in the participants’ gut microbiome were also identified by researchers at the National Institutes of Health in the US. However, they underscored the need for additional research before deeming these alterations in immunity and gut composition as ‘beneficial’ or ‘detrimental,’ as outlined in their study published in the journal Nature Medicine.

The team mentioned that the impact of the findings on therapeutic nutritional interventions, specifically in the context of diseases like cancer or inflammatory conditions, is still unknown.

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For the study, researchers closely monitored the biological responses of 20 participants over a two-week period. The participants were randomly divided into two groups, each assigned either a vegan or a keto diet. Using a “multi-omics” approach, the team analyzed multiple data sets to evaluate the body’s biochemical, cellular, metabolic, and immune responses, in addition to examining changes in the microbiome.

Upon analysis of the data, it became evident that the keto diet exhibited a greater influence on proteins in both the blood and blood plasma, as well as in the brain and bone marrow, when compared to the vegan diet.

It was also discovered that the vegan diet stimulated more pathways associated with red blood cells, including those responsible for haemoglobin production. This effect is likely attributed to the diet’s rich iron content, according to their findings.

The researchers also noted that individuals following the vegan diet, characterized by 10 percent fat and 75 percent carbohydrates, opted for a lower calorie intake compared to those adhering to the keto diet, which comprised approximately 75 percent fat and 10 percent carbohydrates.

The researchers observed distinctive metabolic and immune system changes resulting from both diets, even considering the diversity among participants in terms of ethnicity, race, gender, body mass index (BMI), and age.

According to the findings, the immune system exhibited a surprisingly swift response to nutritional interventions, indicating the potential for customizing diets to prevent or complement the treatment of diseases. This could involve slowing down processes associated with conditions like cancer or neurodegenerative disorders. Consequently, the researchers emphasized the necessity for further investigation to explore the specific impacts of these nutritional interventions on different facets of the immune system.

Continue Exploring: GFI India study unveils popular choices in plant-based foods: Chicken seekh kabab and soy milk lead the pack in consumer trials

Dabur India’s Q3 profit rises 6.2% to INR 506.44 Cr, records 7% revenue growth at INR 3,255.06 Cr

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January 31, 2024

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Dabur India Ltd, a prominent homegrown FMCG company, announced a 6.24% rise in its consolidated net profit, reaching INR 506.44 crore for the third quarter concluding in December 2023. In the corresponding period the previous year, the company recorded a net profit of INR 476.65 crore, as disclosed in a filing with the BSE.

The revenue from operations increased by 7 percent to INR 3,255.06 crore in the quarter under review, compared to INR 3,043.17 crore in the corresponding quarter of the previous fiscal year.

This was “driven by steady performance of both the Home & Personal care and Food & Beverages business,” said an earning statement from the company which owns brands such as Dabur Amla, Dabur Vatika, and juice brand Real.

Continue Exploring: Dabur anticipates mid to high single-digit growth in Q3, fueled by robust performance in foods and beverages sector

Dabur India’s total expenditures for the December quarter increased by 7.82 percent, reaching INR 2,720.62 crore.

In the third quarter of FY23, Dabur India recorded a total income of INR 3,382.43 crore, reflecting a 7.58 percent increase.

Dabur India’s shares were priced at INR 543.50 on the BSE, marking a 1.43 percent increase from the previous closing value.

Jubilant Foodworks records 18.2% decline in net profit at INR 65.70 Crore for Q3 FY24

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January 31, 2024

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Jubilant Foodworks Limited, the company behind popular fast-food brands Domino’s Pizza and Dunkin’ Donuts, reported a decrease of 18.2% in its consolidated net profit for the third quarter (Q2) ending December 2023. The net profit stood at INR 65.70 crore, down from INR 80.36 crore during the same period in the previous fiscal year, as stated in a BSE filing on Wednesday.

Nevertheless, its overall revenue increased to INR 1,382.27 crore in the third quarter of FY24, compared to the total income of INR 1,341.38 crore in the third quarter of FY23.

The total expenditures of the company for the December quarter also grew to INR 1,311.9 crore in Q3 FY24, in contrast to the total expenses of INR 1,229.8 crore in the corresponding period of the previous fiscal year, as stated in the regulatory filing.

Continue Exploring: Jubilant FoodWorks launches aggressive 360-degree rebranding for Domino’s

Lotte Wellfood to Invest INR 200 Crore in new manufacturing unit in Haryana, eyeing expansion and premium brand positioning

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January 31, 2024

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Lotte Wellfood, a Korea-based FMCG company, has announced its plan to set up a new manufacturing unit in Haryana for the production of Lotte Pepero. The FMCG giant will invest over INR 200 crore in the establishment of this advanced manufacturing facility.

“This investment aims to strengthen the position of Lotte brands in India, a country with a confectionery market worth approximately 27,000 Cr,” said Lee Chang Yeop, CEO, Lotte Wellfood.

The proposed production line, set to be operational from mid-2025, will be positioned alongside their existing factory in Haryana, which currently produces Lotte Choco Pie.

“We plan to actively expand our investments in the Indian market, which holds substantial growth potential. Following Lotte Choco Pie success in India, introducing Lotte Pepero will enhance Lotte’s brand strength and expand sales in the Indian market,” commented Lee.

With this new line, the company aims to position Lotte Pepero as a premium brand in local markets, with subsequent plans to extend its reach into retail formats and e-commerce channels, as mentioned in the release.

The CEO additionally mentioned that Lotte India achieved sales of INR 654 crore in 2023 and is setting a target for over 20 percent growth in the year 2024.

Continue Exploring: Lotte invests INR 185 Crore to ramp up Choco Pie production at Chennai factory

Furthermore, Havmor Ice Cream, a subsidiary of Lotte Wellfood, will invest INR 436 crore in its new facility in Maharashtra. Production is set to begin in the second quarter of this year in Talegaon, Pune.

Founded in 1967, Lotte Wellfood, formerly known as Lotte Confectionery, is a division of Korea’s Lotte Group. Internationally, the brand operates through 9 subsidiaries in 8 countries, which include India, Kazakhstan, and Belgium.

Hindustan Coca-Cola Beverage’s Karnataka plant becomes first carbon-neutral facility in India and Southwest Asia

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January 31, 2024

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Hindustan Coca-Cola Beverage Pvt Ltd, a prominent FMCG company in India, announced on Wednesday that its bottling facility in the Bidadi Industrial Area in Ramanagara has been certified as carbon neutral.

This is the first bottling plant of Coca-Cola in India and the Southwest Asia region, to achieve this significant milestone according to the international standard PAS 2060, the company said in a statement.

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The prestigious certification by DNV, the globally accredited registrar and classification society, will be issued to Hindustan Coca-Cola Beverage Pvt Ltd (HCCB) in May 2024.

This achievement aligns with HCCB’s ambition to reach Net Zero by 2050 and to reduce its greenhouse gas (GHG) emissions across its value chain by 25 per cent by 2030, the statement said.

Continue Exploring: Hindustan Coca-Cola Beverages FY23 net profit surges to INR 809 Crore, signaling strong growth

FHRAI seeks infrastructure status, simplified approvals, and GST reduction in pre-budget proposals for India’s hospitality sector

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January 31, 2024

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On Wednesday, the Federation of Hotel & Restaurant Associations of India (FHRAI) outlined a series of pre-budget expectations with the goal of reshaping the hospitality sector in India.

The hotels’ industry association proposed granting universal infrastructure status to hotels with a project cost exceeding INR 10 crores, regardless of the city’s population. This initiative seeks to eradicate geographical biases and enhance growth and accessibility within the hotel industry.

“The inclusive approach aligns with the spirit of equitable development, promising a remarkable nationwide surge in the hospitality sector,” it said in its report.

The apex association for the hospitality sector emphasized that conferring infrastructure status would have a transformative impact, enabling the sector to access long-term loans at cost-effective interest rates, thereby expediting its overall growth. Additionally, the sector anticipates further stimulus packages and incentives from the government to better equip it in attaining the ambitious goal of hosting 100 million international tourists by 2047. This includes advocating for a favorable GST regime and implementing measures to simplify business operations within the hospitality industry.

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“The hospitality industry is a vital contributor to India’s economic growth. We believe that the proposed pre-budget reforms are pivotal in catering to the untapped potential of our diverse nation, propelling the hospitality sector towards unprecedented growth. FHRAI urges the government to consider these reforms seriously, recognizing the crucial role of tourism and hospitality in shaping India’s economic landscape,” said Pradeep Shetty, President of the Federation of Hotel & Restaurant Associations of India.

As per the FHRAI pre-budget expectations report, the absence of a uniform system in the hospitality sector for approvals and compliance has been a concerning issue, hampering the growth of the tourism and hospitality sector in the country. From the inception of a hospitality project to the day-to-day running of the establishments, the sector is tangled in the complex web of bureaucratic processes.

“This needs to be simplified through measures such as a single window clearance system deemed approvals, self-regulation, merging of multiple approvals & licences and fixing a validity period of a minimum of 5 years for the license,” it said.

The federation emphasized the imperative to categorize tourism, travel, and hospitality under the concurrent list, aiming to establish a unified national framework shared between the Centre and States for all aspects of tourism and its related sectors.

The federation identified tourism as a crucial sector in the country, contributing approximately 10 percent to the GDP. Recognizing the substantial potential of the tourism and hospitality industry to serve as a primary catalyst for socio-economic development, it advocates for the declaration of tourism as a priority sector in the country. This designation would involve providing special incentives and benefits to empower the sector in realizing its full potential.

FHRAI has urged for a thorough examination and reduction of GST rates within the hospitality sector, with the aim of positioning India competitively on the global stage. In particular, the proposal advocates for the elimination of the 18 percent GST category applicable to hotels exceeding INR 7500, suggesting its merger with the more moderate 12 percent GST category.

Finance Minister Nirmala Sitharaman is all set to deliver the interim budget on February 1, ahead of the Lok Sabha polls scheduled in 2024.

Continue Exploring: Apparel exporters lobby for tax incentives and GST uniformity in budget 2024 to stimulate domestic manufacturing

After four years of R&D, Kikkoman launches exclusive dark soy sauce tailored for the Indian market

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January 31, 2024

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For the first time in its 350-year history, Kikkoman is launching a dark soy sauce crafted exclusively for the Indian market.

Demonstrating a dedication to Indian consumers, Japan’s Kikkoman has invested four years in creating a natural dark soy sauce. This variant, distinct from its globally renowned classic naturally brewed Kikkoman Soy Sauce, was crafted in response to the realization that many Indians expect Chinese and Pan-Asian dishes to have a visually appealing rich, dark color.

Kikkoman’s renowned classic soy sauce is celebrated for its natural brewing process involving only four essential ingredients: soybeans, wheat, salt, and water. This unique combination imparts the sauce with its distinctive clear reddish-brown hue. When creating a dark soy sauce specifically for the Indian market, Kikkoman aimed to deliver a similarly natural product, steering clear of the chemicals and artificial seasonings commonly employed by other dark soy sauce producers for color enhancement.

The outcome is the creation of Kikkoman Dark Soy Sauce, formulated by incorporating the traditional soy sauce as the foundation, along with Kikkoman’s proprietary technology designed to produce a rich, deep color.

“We set out to create a dark soy sauce that goes beyond superficial colour enhancements,” said Shohei Yokobari, Product Manager for Kikkoman Dark Soy Sauce. “It was a huge challenge to develop a natural product without added colouring or flavouring agents which is why it took four years of relentless effort and innovation. We are proud to present Kikkoman Dark Soy Sauce – a culmination of our rich brewing history and cutting-edge proprietary technology.”

Earlier, Indian chefs faced a challenge when aiming for a dark color in their dishes. While they could employ dark soy sauce for the color, it came at the expense of the delectable taste and umami characteristic of the classic Kikkoman Soy Sauce. Often, chefs resorted to combining the two, but this remained unsatisfactory as the dark soy sauces accessible to them often contained undesirable chemicals. Their aspiration was to present dishes to diners using natural and authentic ingredients. With Kikkoman Dark Soy Sauce, chefs have now found an ideal solution.

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“The flavour profile is complex and deep and if I do a blind tasting, I can easily distinguish a dish made with Kikkoman Dark Soy Sauce and one made with other soy sauces,” said Chef Vikas Seth, culinary director at Embassy Leisure, Bengaluru.

Chef Huang Te Sing, executive corporate Chinese chef at The Oriental Blossom, Marine Plaza Mumbai, called the new sauce ‘fantastic’. “It has a distinguishable umami element and the right colour balance which goes very well in my Chinese dishes at Oriental Blossom.”

At the Berco’s chain in Delhi-NCR which has 46 outlets, Chef Vishal Kharel, culinary director, plans to start using Kikkoman Dark Soy Sauce across the board because of what he called its ‘awesome taste’. “It is more flavourful in taste and natural in colour which is a perfect combination,” said Kharel.

Crafted in India, this product utilizes Kikkoman Honjozo Soy Sauce from Japan as its primary ingredient, aligning with the ‘Make In India‘ initiative. For chefs who prioritize locally sourced ingredients, this aspect adds another layer of appeal to the new sauce.

Continue Exploring: Epigamia launches India’s first 25g protein milkshakes with zero sugar

Gems and jewellery industry urges rollback of increased gold customs duty in interim budget, calls for streamlined tax structure

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January 31, 2024

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The gems and jewellery industry is pressing for the rollback of the increased basic customs duty (BCD) on imported gold in the upcoming interim Budget, while also urging the government to introduce a more streamlined tax structure.

“The jewellery industry contributes nearly 7 per cent of India’s GDP and hence, deserves a pro-business environment,” stated Saiyam Mehra, Chairman of the All India Gem and Jewellery Domestic Council, the apex body for the gems and jewellery industry.

“This will also benefit the government. We urge the finance ministry to withdraw the increase in BCD on gold in the upcoming Union Budget and a rationalised tax structure may be developed to tackle the CAD issue,” Mehra said.

He further mentioned that at present, the Basic Customs Duty (BCD) stands at 12.5 percent ad valorem, bringing the total tax on imported gold to 18.45 percent.

Continue Exploring: FMCG companies anticipate inflation-focused measures in upcoming budget to boost consumption and rural growth

He additionally appealed to the government to raise the transaction limit for PAN cards to INR 5 lakh, up from the existing INR 2 lakh, citing the surge in gold prices.

“With the rising gold rate, there is an urgent need to increase the PAN card transaction limit to INR 5 lakh from the present INR 2 lakh. A majority of consumers in rural India buy gold as an investment.

“Consumers also sell gold in case of an emergency. With the cash purchase limit of INR 10,000 per day under the Income Tax Act, consumers cannot sell gold jewellery to meet their needs. Hence, the daily purchase limit also needs to be increased to INR 1,00,000 per day,” he added.

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Moreover, the GJC has proposed the reinstatement of the EMI facility for the gems and jewellery sector.

India Bullion and Jewellers’ Association (IBJA) Director and PNG Jewellers Chairman and Managing Director Saurabh Gadgil said, “The gems and jewellery industry awaits measures to fortify the IIBX exchange, enhanced liquidity for it, so that India becomes a price maker and not a price taker.”

“Reduction in import duties on gold will ensure that unscrupulous grey market players lose their edge and start getting more organised,” he added.

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