On Friday, Kalyan Jewellers announced its plan to open the 250th showroom in Ayodhya, Uttar Pradesh, in the current quarter. The Kerala-based jewellery firm stated in a regulatory filing that it intends to open an additional 30 showrooms in India and the Middle East in the current fourth quarter of the fiscal year 2023-24.
Of the 30 showrooms, the company plans to add 15 ‘Kalyan’ showrooms in India, two ‘Kalyan’ showrooms in the Middle East and 13 ‘Candere’ showrooms, it said.
“The ongoing quarter should witness the launch of the company’s 250th showroom in Ayodhya, a milestone in our journey,” Kalyan Jewellers added.
As of December 31, 2023, the company’s total number of showrooms across India and the Middle East stood at 235.
Ayodhya is gearing up for the inauguration of the Ram Temple on January 22. The city has already undergone a major facelift and the Ayodhya Development Authority is expecting a footfall of three lakh tourists every day during the initial months.
Kalyan Jewellers also said that it is likely to convert the company-owned showrooms launched during the previous quarter to FOCO (Franchisee Owned Franchisee Operated) in the ongoing quarter.
Additionally, the company has completed signing letters of intent for the 80 showrooms planned for FY2025 with a significant majority of these being established under a revised franchise model with further improved economics for Kalyan, the filing said.
“We continue to be encouraged by the underlying momentum in footfalls across all our major markets and are gearing up with fresh collections and campaigns for the upcoming wedding season across the country,” it added.
Snapdeal-backed SaaS startup Unicommerce has submitted its draft red herring prospectus (DRHP) to market regulator SEBI, marking the fifth Indian startup to do so in recent weeks.
The SoftBank-backed startup intends to launch its initial public offering (IPO) exclusively through an offer for sale, without the issuance of any new shares. According to the Draft Red Herring Prospectus (DRHP), the startup’s current investors plan to sell up to 2.98 crore shares during the IPO.
SB Investment Holdings (UK) Limited, a subsidiary of SoftBank from Japan holding a stake of up to 29.23% in the startup, will be divesting the largest number of shares in the IPO, totaling 1.6 crore.
AceVector Limited, the parent company and promoter of Snapdeal, plans to divest up to 1.14 crore shares. Currently, AceVector holds a 38.18% stake in Unicommerce.
B2 Partners, holding a 9.95% stake in the startup, will divest up to 22 lakh shares in the upcoming IPO.
Unicommerce has decided against participating in a pre-IPO placement.
As the IPO is solely Offer for Sale (OFS), the proceeds generated will directly benefit the shareholders divesting their stakes.
Unicommerce’s H1 FY24 Performance:
Regarding the financials, Unicommerce reported a profit of INR 6.3 crore in the first half of FY24, with an operating revenue of INR 51 crore. The startup’s total expenses for H1 FY24 amounted to INR 45.5 crore, with employee benefit expenses being the biggest contributor at INR 34.5 crore.
Founded by three classmates at IIT Delhi—Ankit Pruthi, Karun Singla, and Vibhu Garg—Unicommerce was subsequently acquired by Snapdeal in 2015. The company offers a range of SaaS products designed to empower enterprises and small and medium businesses (SMBs) in effectively overseeing the entire post-purchase ecommerce operations journey.
It offers a comprehensive suite of services that includes a Warehouse and Inventory Management System (WMS), a Multi-Channel Order Management System (OMS), and an Omni-Channel Retail Management System (Omni-RMS). Additionally, it provides a Seller Management Panel specifically designed for marketplaces, known as Uniware. The suite also encompasses post-order services such as logistics tracking and courier allocation through UniShip, along with a Payment Reconciliation feature named UniReco.
In doing so, Unicommerce has joined the ranks of Ola Electric, Awfis, FirstCry, and MobiKwik, all of whom are capitalizing on the bullish trend in the Indian equities market as they seek to make their presence felt in the public markets.
Global food prices decreased in 2023, experiencing significant drops for grains and oils as supply concerns eased, as reported by the UN’s Food and Agriculture Organization on Friday.
World food commodity prices fell by 13.7 percent in 2023 compared to the previous year, as reported by the Rome-based FAO.
Last year, the FAO’s cereals price index declined by 15.4 percent, indicating well-supplied global markets in contrast to 2022 when prices surged following Russia’s invasion of Ukraine, a significant grain exporter.
El Niño and Export Restrictions Impact Food Prices:
As supply concerns alleviated for wheat and maize, the situation was reversed for rice, driven by the impact of the El Niño weather phenomenon and India’s export restrictions. Rice prices surged by 21 percent last year.
Last year, the vegetable oil price index experienced the most significant decline, plummeting by 32.7 percent, attributed to enhanced supplies and decreased utilization for biofuel production.
Contrarily, sugar prices surged by 26.7 percent overall last year, although they pulled back from their peak in December, thanks to increased exports from Brazil and a reduction in biofuel utilization.
Despite the decline in the FAO’s overall index, consumer food prices are notably increasing in many countries, often surpassing the overall inflation rate. The FAO’s index gauges commodity market prices, showing a delay in reflecting consumer prices, which are additionally influenced by energy and labor costs during processing and distribution.
The Centre has issued directives to AIIMS, PGIMER, JIPMER, and other Institutes of National Importance (INIs), urging them to ensure the replacement of unhealthy high-fat diets, sugary beverages, and other consumables linked to non-communicable diseases, including junk food, in their college canteens with healthier alternatives.
The government recommends opting for healthier choices such as fresh fruits, vegetables, millets, and whole grains. Dr. Atul Goel, the Director General of Health Services (DGHS), emphasized in a letter to medical colleges on January 1 that implementing these small initiatives at each level can have a significant impact on both societal and national health.
Non-Communicable Diseases (NCDs) and Junk Food:
Dr. Goel, in his correspondence, highlighted that non-communicable diseases (NCD) are projected to constitute approximately 63% of all fatalities in the nation. Among these, cardiovascular diseases top the list at 27%, trailed by chronic respiratory diseases at 11%, cancers at 9%, diabetes at 3%, and other conditions at 13%. The Director General of Health Services (DGHS) pointed out that unhealthy diets, fast food (such as burgers, pizzas, etc.), and sugary beverages play a significant role in the escalating burden of NCDs.
Last year, the Director General of Health Services (DGHS) issued a similar letter to multiple medical associations, advocating for a ban on alcohol consumption during medical conferences. The correspondence detailed the associations between alcohol use and various diseases and injuries, including liver cirrhosis, cancers, and hemorrhagic strokes.
Consumer Reports has found a “widespread” presence of plastics in food despite the associated health risks. They have urged regulators to reevaluate the safety of plastics used in contact with food during production.
On Thursday, the non-profit consumer group reported that, out of 85 supermarket foods and fast foods recently tested, 84 contained “plasticizers” identified as phthalates—a chemical employed to enhance the durability of plastic.
Additionally, the study revealed that 79% of the food samples examined contained bisphenol A (BPA), along with other bisphenols—a chemical also present in plastic. However, the levels were lower compared to tests conducted in 2009.
According to Consumer Reports, none of the detected phthalate levels exceeded the limits set by U.S. and European regulators.
It also mentioned that there is no confirmed safe level of phthalates according to scientists, emphasizing that this lack of confirmation does not ensure the safety of the foods consumed.
Phthalates and bisphenols have the potential to interfere with the production and regulation of estrogen and other hormones, potentially increasing the risk of various health issues such as birth defects, cancer, diabetes, infertility, neurodevelopmental disorders, and obesity.
Annie’s Organic Cheesy Ravioli topped the list of tested supermarket foods, containing the highest amount of phthalates in nanograms per serving at 53,579. Following closely were Del Monte sliced peaches and Chicken of the Sea pink salmon.
Increased levels of phthalates were also detected in items like Cheerios, Gerber baby food, and Yoplait yogurt, as well as various burgers, nuggets, and fries from Wendy’s, Burger King, and McDonald’s.
Consumer Reports noted variations among similar products. For instance, the 33,980 nanograms per serving of phthalates in Wendy’s Crispy Chicken Nuggets exceeded the level in McDonald’s Chicken McNuggets by more than four times.
“That tells us that, as widespread as these chemicals are, there are ways to reduce how much is in our foods,” said James Rogers, who oversees Consumer Reports’ product safety testing.
Consumer Reports’ Call for Plastic Safety Reassessment:
The consumer group emphasized that a reassessment of the risks associated with plasticizers by the U.S. Food and Drug Administration and other agencies is “long overdue and crucial.”
Among the tested products, only Polar Raspberry Lime Seltzer showed no presence of phthalates.
General Mills, the parent company of brands such as Annie’s, Cheerios, and Yoplait, did not respond immediately to requests for comment. Similarly, Burger King and Wendy’s did not respond immediately to similar requests.
Chicken of the Sea and Del Monte stated that they do not add phthalates to their food and receive similar assurances from their suppliers. Del Monte also mentioned that phthalates are “widespread in the environment.”
Gerber and McDonald’s stated that they adhere to regulatory requirements and implement thorough testing for chemicals in packaging.
Riding the wave of increased sales attributed to a growing number of shops and improved brand availability, the revenue of Delhi government’s excise department saw a notable 9% increase in the third quarter of 2023-24 compared to its earnings in the same period of the preceding fiscal year.
According to data, the excise department generated a combined sum of INR 1,889.4 crore from excise duty and value-added tax on liquor sales through approximately 635 liquor stores and 920 hotels, clubs, and restaurants from October 1 to December 31 of the current year. In comparison, during the third quarter of the previous fiscal year, the excise department’s revenue from liquor sales amounted to INR 1,725.6 crore.
Authorities mentioned that the consumption of alcoholic beverages, including beer, whiskey, vodka, gin, wine, and other liquor, has been consistently on the rise in the capital.
“In last eight days of December 2023, Delhiites bought nearly 1.4 crore liquor bottles from stores worth more than INR 245 crore. This is much higher than the last year’s sales of 1.1 crore liquor bottles of the total sale value (maximum retail price) of INR 218 crore during the corresponding period,” said an official.
On the eve of the New Year, liquor shops in the capital sold over 24 lakh bottles of various brands and sizes, amounting to almost INR 48 crore. This represented a significant uptick from December 31, 2022, when over 20 lakh bottles, valued at INR 45 crore, were sold in Delhi in a single day.
The revenue generated through excise duty and value-added tax on liquor holds significant importance as a source of income for the Delhi government. During the presentation of the 2023-24 budget, the finance department at that time projected a total tax revenue collection of INR 53,565 crore from various sources, with excise accounting for 14% at INR 7,365 crore. Goods and services tax (GST) were anticipated to contribute nearly 70% to the total tax revenue, while stamp duty and vehicle registration were expected to make up the remaining 16%.
Authorities have stated that, from April 1 to December 31, 2023, the excise department has accumulated a total of INR 5,453.6 crore in the first three quarters of the fiscal year 2023-24.
Delhi Govt Optimistic About Surpassing Revenue Projections:
“Going by the trends, we hope to cross the revenue projection made in the budget estimates,” said a Delhi government official.
Authorities have noted that the festive season comprising Diwali, Christmas, and New Year consistently experiences record-breaking sales each year, with a substantial influx observed at all retail establishments in the city during this period.
Delhi government manages the retail trade of liquor through its four corporations: Delhi State Industrial and Infrastructure Development Corporation, Delhi Tourism and Transportation Development Corporation, Delhi State Civil Supplies Corporation, and Delhi Consumers’ Cooperative Wholesale Stores.
Diabetes and obesity are new age epidemics, with the number of people suffering from diabetes increasing from 180 million in 1980 to 422 million in 2014, according to the World Health Organization. It is also predicted that the increased consumption of added sugar calories leading to diabetes will be the 7th leading cause of death in 2030.
Coincidentally, India holds the distinction of having the highest number of diabetics globally. In the current landscape, there is a notable shift among Indians towards embracing a healthier lifestyle, driven by heightened awareness of health and fitness, particularly in the post-Covid period. As the quest for the ideal sugar alternative gains momentum, the utilization of Stevia has witnessed a sudden upsurge in recent years.
With the aim of advocating for healthier sugar alternatives and establishing an indigenous stevia company, Arboreal, a Lucknow-based startup has introduced a locally sourced solution catering to over 150 Food and Beverage (F&B) companies.
Founded by Swati Pandey and Manish Chauhan, Arboreal envisions accelerating the world’s transition to the ‘Post Sugar World.’
Swati gained firsthand exposure to the severe limitations of life with diabetes when her mother fell ill with it 20 years ago. Fueled by a personal commitment to finding a solution for type 2 diabetes and convinced of the market potential for Stevia as a viable 100% natural, zero-calorie sweetener that could enhance farmer incomes in some of the most underserved regions of India, Swati decided to establish Arboreal.
“I was driven by a sense of conviction that our generation must build upon the sacrifices of our parents, by taking up risks and building global ventures that will solve some of the biggest challenges facing India and the world,” said Swati.
Arboreal has undertaken groundbreaking initiatives in setting up an integrated supply chain for Stevia in India. The company collaborates with smallholder farmers in rural India, guiding them in cultivating the appropriate variety of Stevia. Subsequently, Arboreal employs its proprietary technology to process the harvested Stevia, producing zero-calorie sweetening solutions.
Over the last few years, Arboreal has acquired proprietary expertise in blending its exclusive Stevia extracts with other plant fibers. This distinctive combination not only mimics the sweetness of sugar but also replicates its texture and mouthfeel.
PM Modi’s Acknowledgment of Arboreal’s Efforts:
Significantly, the startup received appreciation from Prime Minister Narendra Modi during his popular radio program “Mann Ki Baat” on Sunday (December 31).
Stevia is rapidly gaining recognition as a healthy, natural, and zero-calorie sweetener derived from a plant source. It requires significantly less water and land to deliver an equivalent level of sweetness compared to sugar. Therefore, it has the potential to offer healthier solutions for individuals affected by diabetes and obesity.
The existing stevia production process is decentralized, involving cultivation in one country and refining in another. This not only imposes a burden on the environment but also contributes to the elevated cost of stevia.
Swati’s company is vertically integrated to ensure the consistent production of high-quality, environmentally friendly, and affordably priced Stevia products. The cultivation involves a high-yielding variety of Stevia within a scalable, traceable, and sustainable supply chain. The processing utilizes a patentable extraction method, incorporating a bio-refining approach to maintain product quality.
The cultivation of stevia in India is poised to not only conserve the nation’s land and water resources but also enhance the livelihoods of farmers. It is anticipated that farmers’ incomes will double within five years as they transition from sugarcane to stevia farming.
“Arboreal, at its core is driven by the philosophy of creating shared value and measurable triple bottom-line impact – across social, economic and environmental dimensions. I truly believe that Stevia is the right preventive solution to stem the epidemic spread of diabetes and obesity and the opportunity to lead this transition to a lower sugar and healthier world is what drives me every day,” said Swati.
Adani Wilmar Ltd. estimates that heightened demand during the festive and wedding seasons positively impacted the company’s performance in the branded oil and foods segment, resulting in its highest-ever volume recorded for the quarter.
In its quarterly business update on Friday, the consumer goods business of billionaire Gautam Adani announced a 6% overall volume growth during the quarter.
Rural sales saw robust performance, driven by sustained demand for branded staples.
Nevertheless, the company anticipates a 15% year-on-year decline in revenue for the third quarter, attributed to reduced edible oil pricing aligning with the decrease in raw material costs.
The year has witnessed robust growth in branded edible oil volume, reflecting a 4% year-on-year increase during the quarter. Meanwhile, overall volume in the edible oil segment remained unchanged, primarily due to subdued demand from institutional clients.
Adani Wilmar’s Food Segment Surges:
Despite the constraints on rice exports, the revenue in the food and FMCG segment experienced a notable 28% year-on-year growth during the quarter, accompanied by an 18% increase in volume.
Industry essentials sales remained steady, with a notable 15% increase in volume growth.
The six-month-long wedding season in India is poised to enhance Adani Wilmar’s sales, as Angshu Mallick, managing director and chief executive of Adani Wilmar, said last month, citing the “comfortable” prices of edible oil.
He mentioned that this demand provides significant support to consumption, and it is expected to persist until mid-April.
Indian munchies, particularly Lay’s, are cherished by people of all generations, making it a preferred snack choice for various occasions. However, Abhishek Prabhu, a LinkedIn user, recently conveyed discontent with the existing array of Lay’s flavors. In an interesting move, Prabhu proposed a creative concept to the company by presenting AI-generated Lay’s packaging showcasing distinctive Indian flavors that would cater to the preferences of every palate.
In his post, the user asserted that India boasts a diverse range of food items, extending beyond the classic masala taste. Infusing the flavors of local cuisine into the chips could enable people worldwide to discover and appreciate the varied delicacies of the country.
Among the suggested flavors, the user recommended options like Dhokla, Shahi Biryani, Pahado Wali Maggi, Chole Bhature, Vada Pav, Mysore Masala Dosa, Butter Chicken, and Onion Pakora.
Sharing the post, Abhishek wrote, “Ever noticed how the ‘India’s Magic Masala’ flavour in Lays is a bit… well, general? India’s culinary scene is much more than a single masala & I couldn’t help but think we’re selling our culinary heritage short with such a broad brushstroke. So, I’ve been playing around with the idea of reimagining these regional flavours for a global audience. Imagine a snack range that’s not just ‘Indian Masala’ but a spectrum of India’s culinary diversity.”
Reacting to the post, a user wrote, “Lays never stops to impress.”
Another shared, “Can’t wait for LAYS to see this post and make these flavours.”
“Amazing imagination and ideas,” a comment read.
An individual wrote, “That’s actually crazy.”
A user asked, “Please sab karo, lekin meri biryani ke sath kuch nahi karna.”
Lay’s Magic Masala Controversy:
Earlier, Lay’s decision to overhaul its iconic Magic Masala flavors sparked uproar among consumers. The situation escalated when content creator Zervaan Bunshah expressed his disappointment on Instagram regarding the company’s adjustment to the flavors. Bunshah’s viral rant struck a chord with many individuals and left social media in splits. Responding quickly to the viral video, Lay’s social media team assured Bunshah and the concerned audience that the original Magic Masala flavor would return shortly, claiming that the current version was introduced for a temporary period.
Tagging the company in the caption, Bunshah wrote, “MAGIC MASALA? MORE LIKE TRAGIC MASALA.”
Later, in response to the public demand, the company reintroduced its original flavors of chips. As a gesture to recognize the impact of content creator Zervaan Bunshah’s viral video and his influence on the community, the company took an additional step. Lay’s introduced limited edition packets featuring Zervaan Bunshah’s picture.
Marico, the consumer products maker, reported on Friday that its consolidated third-quarter revenue dipped in the low single digits due to weakened rural demand. Despite this, the company witnessed a growth in profit in the low double digits, primarily attributed to reduced costs of key raw materials.
The manufacturer, known for producing personal care items like Parachute coconut oil, stated that its domestic volumes experienced a low single-digit growth for the quarter ending on December 31 compared to the same period last year.
The Saffola brand of cooking oils, one of Marico’s biggest brands, recorded an optically weak quarter due to cautious trade sentiment.
Inflation Impact on Marico and Dabur:
Consumer goods firms like Marico and Dabur, highlighting the effects of increased inflation on weakened rural demand, emphasized that the prevailing trend remains unchanged, describing the rural scenario as “offering little to cheer.” Despite this, Marico anticipates a robust gross margin expansion and low double-digit growth in operating profit for the third quarter, thanks to lower input costs.
For the quarter ended on September 30, Marico reported a profit below estimates, with a simultaneous drop in revenue.
Marico, with operations spanning Bangladesh, Vietnam, the Middle East, and Africa, attributed the decline in revenue to significant currency depreciation in specific overseas regions.
Meanwhile, on Friday, Godrej Consumer Products expressed its anticipation of achieving mid-single-digit volume growth and double-digit sales growth in constant currency terms at a consolidated level. However, it expects a low-single-digit sales decline when measured in rupees.
On Thursday, Dabur stated that it anticipates a mid- to high-single-digit expansion in its consolidated revenue for the third quarter, with rural growth trailing behind urban growth, impacting overall performance.
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