Printing the ‘date of manufacturing’ and ‘unit sale price’ has become mandatory on all packaged commodities effective from Monday, according to Consumer Affairs Secretary Rohit Kumar Singh.
Earlier, companies had the choice to print either the ‘date of manufacturing,’ ‘date of import,’ or the date of packaging on packaged commodities.
Now, companies are obligated to print only the ‘date of manufacturing,’ along with the ‘unit sale price,’ according to the latest notification issued by the Consumer Affairs Ministry.
“Since packaged items are sold in different quantities, it is important that consumers are aware of the ‘unit sale price’ of what is packed and make an informed purchase decision,” stated the Consumer Affairs Secretary.
Empowering Consumers with Details on Packaged Items:
Including the manufacturing date on the packaging enables consumers to determine the age of the packaged item, aiding them in making informed and conscious purchase decisions.
Angel investors and early institutional shareholders of the e-commerce firm Meesho are in talks with potential investors to sell off their shares, according to individuals familiar with the situation.
Discussions are underway for a transaction with a valuation ranging from $3 to $3.5 billion, though this figure is subject to change, as per individuals briefed on the matter.
According to sources, WestBridge Capital and Norwest Venture Partners are among the entities that have held talks with Meesho’s early investors.
The development underscores the growing trend of secondary share sales in late-stage firms. New investors are also looking at assets that have been able to withstand the funding drought and reduce operating burn over the last year or so.
Meesho’s early investor, Venture Highway, sold a portion of its stake in the company to WestBridge Capital in October. Nevertheless, it still holds a 1% share in the SoftBank and Meta-backed startup, which was last valued at nearly $5 billion in 2021.
“WestBridge has indicated it wants to buy more in Meesho and Norwest has also held talks,” a person briefed on the discussions said. “The conversations are largely around the pricing of the deal, as older investors want to make an exit now.”
Certainly, secondary transactions usually occur at a discount compared to the latest primary valuation. The magnitude of this discount, however, could influence the timing of the company’s pursuit of new primary capital.
A representative from Meesho opted not to provide a comment, citing adherence to the company’s policy.
Inquiries directed to Norwest Venture Partners and WestBridge Capital failed to elicit any response.
“There are additional investors expressing interest,” stated another individual familiar with the matter. The identities of these investors were not immediately available.
Sources added that Venture Highway intends to divest its remaining 1% stake in Meesho during this round. Notable early investors in Meesho include Maninder Gulati from Oyo and Arun Sarin, the former chief of the Vodafone group.
Meesho’s Financial Highlights:
On December 29, Meesho reported a 48% reduction in its loss for the fiscal year ending March 31, amounting to INR 1,675 crore. Simultaneously, the operating revenue experienced a substantial growth of 77%, reaching INR 5,735 crore.
For the first half of FY24, the online marketplace reported a 37% year-on-year increase in its operating revenue, reaching INR 3,521 crore, along with a substantial 90% reduction in loss to INR 141 crore.
The company announced its attainment of profitability for the September quarter but refrained from providing specific figures. Meesho’s Chief Executive, Vidit Aatrey, had previously mentioned in August that the firm had achieved its first after-tax profit for the month of July.
During the ongoing funding downturn, prominent startups have enabled investor exits through secondary investments. Simultaneously, they are bringing in new investors in anticipation of a potential initial public offering (IPO) in the next two to three years.
On December 25, it was reported that FirstCry underwent a secondary share sale exceeding INR 1,000 crore late last year, just before filing its draft IPO papers.
While 2023 witnessed a seven-year record low for primary funding for startups in India, totaling around $8.8 billion, investors and founders have conveyed their expectations of more secondary funding deals happening in 2024.
In a secondary share sale, the funds go to the investor selling the stake, while primary funding is injected into the company for various purposes. One of the most significant deals of this kind in 2023 was Lenskart’s $600 million funding, with approximately $450 million allocated to the secondary transaction. This occurred when ADIA (Abu Dhabi Investment Authority) and Chrys Capital invested in the Gurgaon-based omni-channel retailer.
Zomato, Swiggy, and Blinkit experienced a substantial surge in orders throughout the New Year festivities. Deepinder Goyal, the CEO of Zomato, announced on his X.com (formerly Twitter) that the platform had achieved the highest daily deliveries.
Swiggy witnessed over one million active users on the app each hour, handling a higher volume of orders per minute compared to any other day. Rohit Kapoor, the CEO of Swiggy, mentioned that the New Year celebration resulted in 1.6 times more orders than the Cricket World Cup Final between India and Australia on November 19, 2023.
Zomato has witnessed a notable increase in orders since Christmas, delivering more than 140 orders per second. Interestingly, Biryani emerged as one of the most ordered food items on Zomato throughout India.
As per Goyal’s statement, Zomato fulfilled a greater number of orders during the 2023 New Year celebrations than the combined orders during NYE of 2015, 2016, 2017, 2018, 2019, and 2020. These figures underscore the platform’s success and the evolving preferences of Indian users in utilizing delivery apps for festive occasions. Goyal further mentioned that Zomato users generously tipped over INR 98 lakhs to delivery partners in a single day and expressed gratitude for their kind gesture.
The rapid-commerce and food-delivery platforms observed a substantial increase in orders on New Year’s Eve, with delivery workers, cloud kitchens, and restaurants gearing up for heightened customer activity. Zepto, for example, was projected to receive more than three times the number of orders compared to December 31, 2022, and approximately 15% to 20% higher than its previous peak day, which was the cricket World Cup final, as reported by co-founder and chief executive Aadit Palicha.
Both Swiggy and Zomato witnessed a surge in food orders during a recent event. According to Zomato’s CEO, Deepinder Goyal, the number of app openings on that day surpassed even Christmas Day.
Likewise, Blinkit and Zepto noted a boost in the sales of chips and beverages during the event. Zepto witnessed a 35% increase in chip sales compared to the preceding week, with a corresponding rise in soft drink sales. The company anticipated selling over 600,000 units of chips and soft drinks throughout the event.
PepsiCo, the manufacturer of beverages and snacks, is contemplating multiple candidates for the position of President and Chief Executive Officer for its business in India. This includes a potential candidate from its global system, as indicated by executives with direct knowledge of the ongoing considerations.
Earlier, George Kovoor, the current Senior Vice President and General Manager of beverages at PepsiCo India, was believed to be taking over the top role to succeed Ahmed ElSheikh. The developments follow PepsiCo’s current president ElSheikh, who is expected to move to a global role within the company this year, making way for the leadership transition.
Executives mentioned a blend of factors contributing to the recent developments. “Long-term and sustained profitability, and not just volume growth, for the snacks and beverages business is a core criterion. Another global mandate is the requirement for sharper marketing, with intensified competition,” stated one of the executives.
PepsiCo, the New York-based company, reported a mid-single-digit decline in its snacks business for the quarter ending September 2023, as disclosed during its earnings call.
In the past 12-15 months, the snacks sector, in particular, has witnessed heightened competition, marked by the entry of numerous new players and a robust resurgence of regional brands, leading to a shift in market share from national players.
An email requesting a comment from PepsiCo India went unanswered until the time of press.
Liquor outlets managed by the State-owned Mysore Sales International Limited (MSIL) recorded sales of alcoholic beverages amounting to INR 18.85 crore on Sunday, as reported by the Industries department.
MSIL manages a network of 1031 stores throughout Karnataka and achieved remarkable business performance on the final day of the year.
The sales witnessed an increase of approximately INR 10 crore, considering that on a regular day, MSIL outlets typically generate around INR 8 crore in business.
This signifies a rise of INR 4.34 crore in comparison to the sales of INR 14.51 crore on the corresponding day in 2022, as stated by MSIL Managing Director Manojkumar.
An establishment near Raichur railway station achieved the highest sales, amounting to INR 11.66 lakh, while another outlet on Gunj road in the same city generated a business of INR 9.96 lakh.
Bengaluru Urban Leads in Liquor Sales
Among the districts, Bengaluru Urban led the rankings with sales touching INR 1.82 crore. On the same day in the previous year, the district had sold liquor worth INR 1.35 crore.
The upgraded first-of-its-kind MSIL Boutique, which opened on Monday at Thimmaiah Road in Basaveshawaranagara, Bengaluru, sold beverages worth INR 3.5 lakh. The same outlet had recorded sales of INR 2.59 lakh on December 31 in the previous year.
Zomato, the foodtech giant, is currently facing fresh tax trouble as tax authorities have slapped a notice of INR 4.2 crore on the startup for alleged short payment of goods and services tax (GST).
This development closely follows the Gurugram-based listed foodtech giant receiving a show cause notice of INR 401.7 crore from the Directorate General of GST Intelligence, Pune Zonal Unit. The notice pertains to unpaid tax on delivery charges collected from customers last week.
Zomato has received three orders from the Sales Tax Officer, Ward 300, Delhi, and the Deputy Commissioner, DGSTO-4, Bengaluru, Karnataka. These orders allege short payment of GST, along with applicable interest and penalty under Section 73 of the Central Goods and Services Tax Act, 2017 (‘CGST Act, 2017’), Delhi Goods and Services Tax Act, 2017 (‘DGST Act, 2017’), and Karnataka Goods and Services Tax Act, 2017 (‘KGST Act, 2017’). The total amount specified in these orders is INR 4.24 crore, as mentioned in a company filing with the exchange.
“The authorities in Delhi and Karnataka seem to have issued the above orders dated December 30 and 31, 2023 without giving due consideration to our response submitted earlier. We believe that we have a strong case on merit and the company will be filing appeals against the orders before the appropriate appellate authorities,” Zomato said in the filing.
During Monday’s session, the company’s shares commenced trading at INR 124.65 each, reflecting a 0.77% increase from its previous closing price of INR 123.7.
GST Notices Hit Zomato and Swiggy
Earlier, reports surfaced that the food delivery giants Zomato and Swiggy reportedly received notices for a cumulative goods and services tax (GST) worth INR 1,000 Cr, as the tax authorities now view delivery charges collected by these platforms as their revenue.
It’s noteworthy that in January last year, the Centre included ‘restaurant services’ and cloud kitchens within the scope of Section 9(5) of the CGST Act, 2017. This resulted in platforms like Swiggy and Zomato being liable to pay 5% GST on the ‘restaurant services’ they provide.
However, the clarity on whether delivery services and the associated fees would also incur taxation remained uncertain.
The delivery fees imposed by both Swiggy and Zomato have consistently been a topic of discussion, sparking controversy from various perspectives.
In 2016, Swiggy started the practice of applying food delivery fees. Following suit, Zomato introduced its own delivery charges.
Having established a standard for delivery fees, Zomato subsequently introduced a loyalty programme, now recognised as Zomato Gold. Within this programme, customers can bypass delivery fees by subscribing to a monthly plan, which also provides additional perks.
Likewise, Swiggy introduced Swiggy One, embracing the idea of waiving delivery fees through a subscription model and complementing it with additional benefits.
Zomato and Swiggy fulfill 1.8 to 2 million orders daily nationwide. The introduction of a new Goods and Services Tax (GST) has the potential to disrupt their cash flow.
Meanwhile, both platforms have started imposing a platform fee on orders, with charges ranging from INR 2 to INR 5 per order. It is noteworthy that this fee is universally applicable to all customers, regardless of whether they are subscribed to any specific loyalty programme.
Zomato reported its second consecutive profitable quarter, with profit after tax surging to INR 36 crore during the September quarter of the financial year 2023-24 (FY24). This was an 18-fold jump from PAT of INR 2 crore in the preceding quarter.
ITC plans to scale up the cloud kitchen business it has been piloting in Bengaluru. The conglomerate, renowned for offering North Indian lunch and dinner as well as bakery products via food delivery apps, has now introduced this service in Chennai. Furthermore, there are intentions to expand into Mumbai, Delhi, and Kolkata. Executive Director Hemant Malik mentioned that the company is also considering the inclusion of breakfast and oriental cuisines.
The company refers to this business as food-tech, identifying it as one of the emerging vectors of growth. Currently, it operates three brands: ITC Aashirvaad Soul Creations for North Indian daily or comfort food, ITC Master Chef Creations for North Indian gourmet cuisines, and ITC Sunfeast Baked Creations for bakery products. In Bengaluru, there are 19 cloud kitchens, and in Chennai, there are four. Notably, these kitchens have already reached the break-even point.
“We have a winning formula, which includes having established brands that come with certain credibility, cuisine supported by ITC Hotels’ chefs, and capabilities of the packaged foods business,” said Malik.
ITC’s Operational Model: Central and Satellite Kitchens
“The tech-learning needed for the business comes from our focus on digitalisation. The model involves setting up of central kitchen and satellite kitchens in cities where we operate. We are already the market leader in Bengaluru in the premium space within two years of operation and will now scale up in other cities,” said Malik.
The model incorporates a central kitchen and several satellite kitchens, as per the preference of Swiggy and Zomato for kitchens every 2.5-3 km. ITC’s food tech central kitchen in Bengaluru has the capability to serve both Chennai and Hyderabad.
“Our strategy is to add new cuisines and meals apart from expansion into the metros,” said Malik.
The average order value for ITC’s cloud kitchens is INR 900, twice the industry average. A key distinction from ITC Hotels’ kitchens is the 5% Goods and Services Tax (GST) applied in this business, compared to the 18% GST for hotel restaurants. Additionally, these kitchens operate as quick-service establishments. ITC has successfully fulfilled over one million orders.
In a recent investor presentation, ITC highlighted the institutional synergies between its cloud kitchen business and various aspects of ITC, including the food business adhering to FSSAI regulations, packaging solutions for fresh food delivery, a digital-first approach to gather consumer feedback for upcoming FMCG products, the culinary expertise from the hotels business, and the production of industrial-ready-to-eat and frozen food products.
Approximately 90% of orders on food delivery platforms originate from dine-in restaurants, with the remaining 10% coming from cloud kitchens. The company, as mentioned in the presentation, pointed out that the scalability of North Indian cuisine poses a challenge due to its reliance on chef skills and the absence of standardization.
Listed food delivery platform Zomato has raised the platform fee to INR 4 per order in key markets, as indicated on its app.
The revised rates came into effect on January 1st.
As per information cited in an ET report, platform fees were temporarily increased to as much as INR 9 per order in specific markets on New Year’s Eve.
“These are business calls which we take basis various factors from time to time,” a Zomato spokesperson was cited by ET as saying on the platform fee hike.
Coincidentally, on Sunday (December 31), Zomato witnessed its order volume surge to record-breaking levels during New Year’s Eve. Speaking to X, CEO Deepinder Goyal mentioned that the figure surpassed the cumulative number of orders the food delivery platform had recorded for New Year’s Eve in the previous six years.
Zomato introduced a platform fee for orders on its platform in August last year, starting at INR 2 and later increasing to INR 3 across major markets. Swiggy, Zomato’s main competitor, also initiated a fee of INR 2, which was subsequently raised to INR 3.
Both platforms impose a platform fee in addition to the delivery charge, although it is waived for customers enrolled in their respective loyalty programmes. Nevertheless, the platform fee is applicable to Zomato Gold and Swiggy One members.
Incidentally, Zomato’s quick commerce arm Blinkit also levies an INR 2 platform fee per order.
Platform Fee’s Role in Zomato’s Profitability
Although it may not be well-received by users, platform fees have contributed to the enhanced revenues of food delivery startups. For example, in its quarterly results from July to September, Zomato credited the increase in the percentage of its earnings (referred to as take rate) per food delivery order to the platform fee.
As per a research note by Jefferies in November, Zomato’s take rate in the September quarter of FY24 stood at 24.1%, showing an improvement of 28 basis points (0.28 percentage points) compared to the previous year and 32 basis points from the preceding three-month period.
The platform fee is increasingly seen as a key factor in Zomato’s turnaround, leading to profitability in the last two quarters. Zomato recorded a profit after tax of INR 36 Cr for the quarter ending September 30, 2023. In the April-June quarter, it had posted a net profit of INR 2 Cr.
The shares of the foodtech giant concluded trading 0.7% higher at INR 124.50 on the BSE on Monday (January 1).
Years ago, a chocolate truffle cake from Delhi’s top bakery would have been the centre of attention at any birthday celebration, and a pineapple pastry or hot chocolate fudge would have been the pinnacle of sweet pleasure for Delhiites. Then, the trend shifted to cheesecakes and other more refined desserts.
New sugar rush temptations are popping up in Delhi’s many boutique and artisanal bakeries, completely changing the city’s dessert scene. The selection includes vegan and gluten-free cakes, Basque cheesecakes, croissant pizzas, handmade chocolates, macaroons, and traditional French sweets like Paris Brest, choux pastries, buns, and macaroons. The superiority of the components and their presentation are what really make them stand out.
Bakeries to try:
If you ever develop a sweet tooth in Delhi, here are eight bakeries that provide doorstep delivery.
Pasteleria Basque
What could possibly be more delicious than a cheesecake? A cheesecake from Basque Country that has been accidentally burned. Originally from Spain’s San Sebastian area, Yuvraj Singh Solanki introduced this specialty to Delhi. He opened this bakery shop in the heart of Delhi. As a single bite of this crustless cheesecake reveals a hint of cream cheese, the sweetness is just right, and the top is faintly charred. Does it bring you to your knees? There are now just three cheesecake flavours available: original, yuzu, and lotus biscoff. However, they plan to expand their repertoire to include dark chocolate and avocado.
Torte
It must be difficult for a pastry chef who is gluten intolerant. Rhea Wadhawan’s discovery that she had a gluten allergy meant she had to cut out most of the sweets she loved. So, in her kitchen, she created Torte to provide gluten-free alternatives to her usual cheesecakes and tarts. “I wanted to make sure that people like me could have nice things, so I’m always thinking of new and exciting options,” Wadhawan explains. Torte also offers vegan and keto sweets, gluten-free madeleines, and macros.
Mr & Mitts Bakery
Sourdough doughnuts and cronuts were the most popular items as customers dealt with the lockout, something Mitali Sahani hadn’t anticipated when she established her delivery-only bakery last year. The idea for the bakery came to Sahani when she saw that individuals who were housebound were itching to do something new, she adds. Crispy hazelnut crunch cake and Nutella cupcakes are also popular. She has a collection of the best cakes in town. There is a selection of sugar-free cakes available as well.
Monique Patisserie
At Monique Patisserie, a French chef named Maxime Montay, hailing from the French Riviera, has introduced Delhiites to traditional French sweets like St. Honore with Paris Brest. In the midst of the epidemic this year, Shivan Gupta created a boutique cloud bakery, and these intricate pastries have become popular sellers. You may be tempted to refrain from biting into St. Honore because of its beauty. Carefully piped Chantilly cream on a puff pastry base, and a circle of choux pastries filled with pastry cream make up the topping. Charcuterie made with hazelnut and almond praline is called Paris Brest. The previous generation was reluctant to travel, but times have changed. Gupta claims that taste preferences among consumers have become more sophisticated. “Whatever went into these sweets, they want to know everything about it.” Place an additional order for macarons if you’re a fan.
Miam Patisserie
Indulge in a Black Forest cake that Chef Bani Nanda created with a variety of classic flavors—cherry jam, chocolate genoise sponge, dark chocolate ganache, velvet spray—and a layer of vanilla mousse. This is now among her most popular products. According to her, fans want their beloved classics, but in a different form. Nanda explains that after having ‘enough of brownies and fondant cakes’, the group was open to the idea of trying something new. “Familiar flavours, but served in a new way, may still entice them.” The Belgian Dark Chocolate and salted Caramel cake is another classic; adding just the right amount of salt gives it a unique flavour.
Paris My Love
Known for his work at popular Delhi bakeries like L’Opera and The Artful Baker, Sahil Mehta started this side enterprise to cater to a certain demographic. A beloved dessert, the Angelina cake consists of hazelnut, vanilla, and the best chocolate in the world spread out over a hazelnut brownie. “I am content serving the most exclusive clients. The quality of the components remains unwavering. People do not beg, so I know there is a demand for my cakes, which range from Rs 3500 to 4,000. Croissants, which must be delicious, are another best-seller; they sell 250 each day, on average. When you’re feeling adventurous, try one of their pizza croissants. The foundation is constructed with croissant dough, which gives it a flaky texture instead of a thick one.
Colocal
Colocal offers chocolate in a whole new form for those who think it should be an essential ingredient in sweets. The bakery and chocolate factory brought the idea of ‘bean to bar’ to the nation’s capital, using cacao beans grown in nearby Tamil Nadu and Kerala. A first for Delhi, the in-house chocolate factory allows visitors to see the process of making chocolate from the ground up. Owners Sheetal Saxena and Nishant Kumar Sinha claim that their chocolate-based sweets, such as chocolate tarts, twice-baked cakes, and creamy fondue, are quite popular.
Project Sweet Dish
Two pastry chefs who had previously worked at Oberoi launched this little boutique bakery last year. Their butter croissants, Korean buns, and ragi croissants are a hit, but you have to be quick since they only sell them once a month. Mocha praline—a combination of coffee, chocolate, and almonds—is their most popular cake flavour. Other popular options include hazelnut, cherry almond, and a tropical cake with passionfruit, banana, coconut, and vanilla. When things improve, they could provide desserts.
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