On Wednesday, Aditya Birla Fashion & Retail Ltd (ABFRL) announced a joint venture with Christian Louboutin, a distinguished designer of high-end footwear, targeting the Indian market.
In a press release, ABFRL stated that Christian Louboutin would shift its existing Indian business to a subsidiary of ABFRL, with both partners holding an equal stake in the venture.
In 1991, Christian Louboutin initiated his venture with a women’s footwear collection in Paris. Subsequently, he introduced a men’s collection a few years later, followed by the establishment of Christian Louboutin Beauté in 2014. In 2022, he expanded his offerings to include kids’ and pets’ collections. Notably, both his women’s and men’s collections gained recognition for the distinctive signature of the red lacquered sole.
In the official statement, Alexis Mourot, the Chief Executive of the Christian Louboutin Group, emphasized the significance of the Indian market, describing it as a highly important region for the group.
Sathyajit Radhakrishnan, CEO of ABFRL’s international business, said, “The brand’s distinctive style and craftsmanship appeals to a discerning Indian audience that is growing rapidly.”
On Wednesday, Swiggy, the online food and grocery delivery startup, announced the appointment of Anand Kripalu, former managing director and chief executive of Diageo India, as an independent director and chairman of its board.
A graduate of IIM Calcutta and the CEO of EPL, a packaging manufacturing company, Kripalu brings extensive FMCG experience to the table. His previous roles include serving as the president for India and Southeast Asia at Mondelez, a chocolate maker. This board appointment coincides with Swiggy reportedly gearing up for an initial public offering in 2024.
“I’m pleased to have Anand Kripalu join as an independent director and chairperson of the Swiggy board. Anand is a veteran in the consumer goods industry, and his deep knowledge and perspective will be instrumental in guiding Swiggy as we continue to innovate and redefine the on-demand delivery landscape in India,” said Sriharsha Majety, CEO, Swiggy.
In February, the Bengaluru-headquartered food delivery company added Sahil Barua, CEO of Delhivery, Mallika Srinivasan, managing director of tractor manufacturer TAFE, and distinguished chartered accountant Shailesh Haribhakti to its board as independent directors.
In addition to Barua, Srinivasan, Haribhakti, and Majety, Kripalu will be joining Nandan Reddy, co-founder of Swiggy, on the board. The board of Swiggy also includes Larry Illg, CEO of Prosus’ Edtech and Food, Ashutosh Sharma, head of investment in India for Prosus Ventures, Sumer Juneja, managing director for India and EMEA at SoftBank Investment Advisors, and Anand Daniel, a partner at Accel.
“Swiggy has transformed food and grocery delivery in the country, bringing unparalleled convenience to millions of homes. I am honoured to join its accomplished board, and look forward to lending my experience and perspective as Swiggy shapes the future of convenience,” said Kripalu on his appointment.
On November 30, Prosus, Swiggy’s largest shareholder, announced a 35% reduction in the Indian food-delivery company’s losses compared to the previous year, totaling $208 million for the half-year ending on September 30.
Demi-fine jewellery brand Flourish by Gunjan Jain has ventured into Mumbai with its first retail store, House of Flourish, situated on Waterfield Road in Bandra, as announced in a press release on Tuesday.
Spanning 450 square feet, the recently inaugurated store showcases a variety of meticulously handcrafted jewellery pieces crafted from 18k gold and sterling silver. The collection features synthetic emeralds, solitaires, cubic zirconia, Swarovski stones, and moissanites, all sourced from international origins.
The price range for the products falls between INR 5,000 and INR 150,000.
“We are excited to introduce the people of Mumbai to our exquisite demi-fine jewellery that blends luxury and affordability. Our Bandra store is designed to cater to free-spirited, well-travelled sophisticated women/customers who never compromise on quality in their quest for elegance,” said Gunjan Jain, Founder of Flourish.
“In our Bandra store, where every shade of blue dances with the purity of white, creating an ambience that whispers luxury and royalty. For those wondering, ‘Why Blue?’ Our store is themed to reflect gender neutrality. We are open to anyone who likes to define their style without boundaries – men, women and children alike,” Jain added.
Established in 2021, Flourish by Gunjan Jain inaugurated its flagship store in Kolkata in 2022. In addition to its physical stores, the brand broadens its presence through its official website. Moving forward, the brand is poised for international expansion and intends to enter global markets, commencing next year.
Incredible Spirits Private Limited (ISPL), a startup in the Indian alcoholic beverage industry, has launched Swigger, the country’s first-ever collection of premium Ready-to-Drink (RTD) shots.
Infused with natural and organic flavors, this meticulously crafted product makes its debut with two Gin and two Vodka variations.
The gin-based Ready-to-Drink (RTD) shots incorporate distillation techniques that infuse the flavors of Elderflower & Berries and Pink Grapefruit & Lime. On the other hand, the Vodka-based options boast variations such as Mandarin and Lime, Lychee, and Cinnamon.
Presented in 60ml double shot glasses, these flavorful SWIGGER shots come with a pull rip cap closure, ensuring a secure and hassle-free experience for consumers. This design not only maintains purity but also adds a touch of convenience to the overall enjoyment.
“We are excited to launch the country’s first spirits-based Ready-to-Drink premium shots brand. The RTD shots category is a completely new segment in India and, therefore, presents an enormous opportunity,” said Arun Raina, Co-founder, Incredible Spirits Private Limited.
Tilaknagar Industries, a leading manufacturer of Indian-Made Foreign Liquor (IMFL) and the largest producer of premium brandy in India, has made a significant investment of INR 1 crore to secure a 19.50% equity stake in Incredible Spirits Private Limited.
“Younger consumers have become more experimental which is giving a push to premium, on-the-go alco-bev products. Swigger is a first-of-its-kind offering in India’s RTD space and through this innovation, we aim to offer a safe and an enriching experience,” said Pranav Teredesai, Co-founder, Incredible Spirits Private Limited.
After this debut, there are intentions to unveil additional premium shot variations that will include Cognac, Bourbon Whiskey, Dark Rum, and Tequila.
According to the IWSR report in May 2022, India’s Ready-to-Drink (RTD) market consisted of 3 million cases in 2021. Projections suggest an annual growth rate exceeding 9% for the next five years, with an expected increase to 4.5 million cases by 2026.
A senior government official announced that the central government will establish retail outlets at key metro stations in the national capital this month, offering kitchen essentials like onions, pulses, and atta at discounted prices to consumers.
If the project proves successful, the official indicated a readiness to extend it to other cities like Mumbai, Chennai, and Bengaluru, all of which boast metro rail networks.
The escalating costs of essential food items such as wheat, rice, pulses, sugar, and onions pose a significant worry for the union government, particularly as it approaches the general elections scheduled for April-May 2024, where it will seek voter support.
The first store will be established at Central Delhi’s Rajiv Chowk metro station to capitalize on its high footfall. It will be owned and operated by the National Cooperative Consumers’ Federation of India Ltd (NCCF), an organization responsible for procuring agricultural commodities such as food grains, pulses, spices, oil seeds, pharmaceutical items, and other consumer goods on behalf of the government. The store aims to sell these products to consumers at reasonable rates.
NCCF is planning to establish 15-20 stores at metro stations in Delhi. Presently, the organization operates mobile vans in various cities to distribute subsidized food items. However, this program has a restricted outreach.
Propelled by irregular and insufficient rainfall, retail inflation reached a 15-month peak of 7.44% in July, with food price inflation surging to 11.5% — the highest in over three and a half years.
Despite the government’s interventions, such as banning wheat exports, limiting sugar, onion, and rice shipments, importing pulses, and selling wheat, rice, and vegetables like onions from its reserves, food inflation, constituting nearly half of the overall consumer price basket, has decelerated but persisted at a high rate of 6.61% in October.
The official stated that the government aims to extend its outreach to a larger consumer base and facilitate their access to the provided subsidies by establishing these stores in metro stations.
“This is a part of a pilot that NCCF is doing together with the Delhi Metro Rail Corporation,” said the official, adding that, if successful, this will be replicated in other major cities which have the metro rail.
In an effort to curb the surging prices of pulses in the domestic market, the government is set to import 400,000 tonnes of tur dal (pigeon pea) from Myanmar in January. Additionally, in February, another substantial measure is planned, with 1 million tonnes of urad dal (black gram) to be imported, all aimed at mitigating the escalating cost concerns.
India is importing tur during the ongoing harvesting period, anticipating reduced production compared to the previous year due to a decline in cultivated acreage.
In January of this year, the government implemented a stock limit on tur and urad to prevent hoarding and speculative activities, with the intention of improving affordability for consumers. Despite the initial deadline set for October 30, the government decided to extend this measure until the end of December.
According to government data, on Tuesday, the retail price of urad across all of India was INR 11,198.09 per quintal, compared to last year’s figure of INR 9,627.48.
In October, retail inflation for pulses surged to 18.79%, primarily driven by significant increases in the prices of tur (40.94%), gram (11.16%), and moong (12.75%). The inflation rate for tur surpassed the 37.3% recorded in September, despite the government’s initiatives to boost imports from Africa and Myanmar by eliminating the import duty on tur in March.
Compounding the issue, a reduction in tur acreage during the kharif season resulted in a production shortfall, contributing to a rise in food inflation over the past few months. Government data reveals that the area under tur decreased from 4.61 million hectares on September 29, 2022, to 4.39 million hectares on September 29, 2023.
As per the initial advance estimates from the Ministry of Agriculture for the kharif crops of 2023-24, the projected tur production stands at 3.42 million tonnes, closely resembling last year’s output. Additionally, the anticipated urad cultivation area is estimated at 3.07 million hectares, slightly lower than the approximately 3.10 million hectares recorded in the previous year.
“The total annual requirement of tur dal in India is 45 lakh (4.5 million) metric tonnes as it is consumed in most parts of India,” said Bimal Kothari, chairman of the India Pulses & Grains Association.
Experts suggest that with tur prices remaining nearly 40% higher in November, there is a possibility of further acceleration in pulses inflation. Tur carries a 0.8% weight in the retail basket.
At the wholesale level, tur dal is hovering at INR 87-90 per kg. “Post imports, it is expected that there will be no sudden surge in prices. The consignments for tur will land in India from Myanmar in January,” added Kothari.
As per the Bank of Baroda’s kharif crop projection report for 2023-2024, the production of urad dal is anticipated to decrease to 1.5-1.6 million tonnes, marking a decline from the 1.77 million tonnes recorded during the kharif season of 2022-2023.
KFC, the global food services chain, announced on Wednesday that it has achieved a milestone of 1,000 outlets in India, marking one of its fastest-growing markets globally. Sabir Sami, the CEO of KFC global, stated in a release that the company is focused on expanding its presence in every market where it operates.
In India, Yum Restaurants is managed by three franchisees: Devyani International Limited and Sapphire Foods oversee KFC and Pizza Hut, while Taco Bell is operated by Burman Hospitality.
Having made its debut in India in 1995, KFC announced plans to create over a hundred thousand jobs across the country.
In India, Pizza Hut, another brand under Yum Restaurants, lags behind KFC and manages slightly over 800 stores in the country.
“KFC continues to perform well despite demand headwinds and overall slowdown, as it has been able to maintain store operating margins despite aggressive store expansion,” ICICI Securities wrote in a report earlier this week.
On the flip side, analysts note that Pizza Hut has faced elevated consumption stress compared to other sub-segments in the QSR sector, primarily attributed to intensified competition from regional players.
The majority of major QSR chains experienced sluggish sales in the September quarter, with consumers affected by inflation opting for lower-priced alternatives, amidst heightened competition at the hyper-local level.
In the September quarter, both KFC and Pizza Hut witnessed a year-on-year decline in same-store sales, with a 4% drop for KFC and a 10% decrease for Pizza Hut.
Nevertheless, companies in the sector haven’t scaled back their growth projections. ICRA, a credit ratings firm, indicated that the top five players in the domestic QSR industry are anticipated to incorporate 2,300 new stores between FY23 and FY25, involving an estimated capital expenditure of INR 5,800 crore.
KFC announced that it has increased the count of restaurants where speech and hearing-impaired employees are engaged, doubling the previous number.
According to a CRISIL report, the surge in onion and tomato prices resulted in a 10% increase in the cost of vegetarian thalis and a 5% rise in non-vegetarian thalis in November compared to the previous month.
In November 2023, the cost of a vegetarian thali rose by 9% compared to the same period the previous year. Additionally, the prices of pulses, constituting approximately 9% of the total cost of the vegetarian thali, witnessed a year-on-year increase of 21%.
The report indicated that in November, the prices of onions and tomatoes saw a surge of 58% and 35%, respectively, compared to October. This increase was attributed to festive demand and reduced output during the Kharif season due to unpredictable rainfall conditions.
Prices of broiler chicken, constituting approximately half of the cost of a non-vegetarian thali, experienced a 1-3% decrease.
The substantial increase in prices of essential food items such as wheat, rice, pulses, sugar, and onions in India over the recent months poses a significant challenge for the union government, especially as they approach the general elections scheduled for April-May 2024.
Due to irregular and insufficient rainfall, the yearly retail inflation reached a 15-month peak of 7.44% in July. Additionally, food price inflation escalated to 11.5% during the same month, marking its highest level in over three and a half years.
In spite of the government’s measures to control food prices, including the ban on wheat exports, limitations on sugar, onion, and rice exports, pulse imports, and the sale of wheat, rice, and vegetables like onions from its reserves, food inflation, constituting almost half of the total consumer price basket, stood at 6.61% in October.
In October, the retail inflation for pulses surged to 18.79%, primarily driven by significant increases in the prices of tur (40.94%), gram (11.16%), and moong (12.75%). The inflation rate for tur surpassed the 37.3% recorded in September, despite the government’s initiative to boost imports from Africa and Myanmar by eliminating the import duty on tur in March.
The recent hailstorms in Maharashtra over the past few weeks have caused damage to the onion crop in areas like Nashik and Ahmednagar.
The arrivals of onions at mandis, which typically reach their peak at this time of the year, have decreased, leading to an increase in prices.
Unfavorable weather conditions have led to a delay in kharif onion sowing, resulting in reduced coverage and a delayed arrival of the onion crop. As stored rabi onions (harvested in April-May) are depleting and kharif onion arrival is delayed, a tight supply situation has emerged, leading to an increase in prices.
Saudi Arabia-based specialty coffee chain Barn’s is gearing up to enter the public market with plans to launch its initial public offering (IPO) in 2024, according to a report from the World Coffee Portal.
Founded in 1992 by the Al Amjaad Group, the coffee chain based in Jeddah runs a network of over 550 stores throughout Saudi Arabia, making it the largest market in the Middle East region.
Franchises account for over 70% of Barn’s stores in the region.
Al Amjaad Group CEO Mohamed Al Zain was quoted by the World Coffee Portal as saying, “Saudi Arabia’s recognition as the “coffee capital of the Middle East” is a testament to our passion for coffee and our commitment to fostering a vibrant coffee culture.
“We believe that this is just the beginning of our journey, and we look forward to further elevating Saudi Arabia’s standing in the international coffee community,” he said.
During Barn’s annual franchise meeting, Mohamed Al Zain articulated that the proposed IPO would empower the public to transition from loyal customers to becoming investors in the company’s success.
The coffee chain is set to achieve a global presence of 1,000 stores by the close of the 2020s, with the brand’s inaugural overseas expansion anticipated in 2024.
According to the report, the coffee chain will concentrate on extending its footprint in the Middle East and North African (MENA) markets. Additionally, it plans to broaden its presence in the UK, US, and Malaysia.
In July 2024, Barn’s finalized an agreement with Premier Fine Foods to launch stores not only in Malaysia but also in various Southeast Asian regions.
Premier intends to establish 25 Barn’s Coffee outlets in Kuala Lumpur, Malaysia.
Additionally, there are intentions to broaden the coffee chain’s footprint across Southeast Asia by inaugurating 300 stores by the year 2033.
The Coffee, a Brazilian coffee chain, aims to extend its global presence by opening its first stores in the Middle East in 2024, as reported by the World Coffee Portal.
The decision is fueled by a rising demand for coffee in the region, ongoing investments in coffee production, and the identified growth opportunities in that area.
The expansion of The Coffee in the Middle East will kick off with the opening of two franchised stores in Dubai, United Arab Emirates (UAE), in 2024.
It intends to inaugurate its initial establishments in Saudi Arabia and Egypt within the first half of the same year.
Established in 2018, The Coffee concluded a funding round of $7.5 million in January 2023.
By October 2023, the coffee chain secured an extra $10 million to support its venture into the Middle East and to enhance its operations across Europe and South America.
Presently, The Coffee runs 200 establishments in Brazil and has 23 outlets spread across Chile, Colombia, France, Peru, Portugal, and Spain.
Approximately 85% of The Coffee’s revenue is derived from its activities in Brazil, and it aims to reach a total of 320 stores in the country by the end of 2024.
The plan is to establish 1,500 stores outside Brazil, with an additional 12 slated to open before the conclusion of 2023, followed by 35 more in the first half of 2024.
In the Middle East, the UAE holds the position of the second-largest market for branded coffee shops, boasting over 1,400 coffee outlets.
In December 2023, SSP Group revealed the launch of a new Food Park at Abu Dhabi International Airport in the UAE. Additionally, in September, the renowned Indian chef Ranveer Brar inaugurated his inaugural UAE restaurant, KashKan, in Dubai.
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