Nitin Gadkari lays the foundation stone for Mother Dairy’s major milk processing plant in Nagpur

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November 27, 2023

Nitin Gadkari, Hon’ble Minister for Road Transport & Highways, Government of India, virtually laid the foundation stone for Mother Dairy’s proposed state-of-the-art mega milk processing plant in Nagpur, Maharashtra. This significant event unfolded during the inaugural day of Agrovision 2023, in the esteemed presence of Radhakrishna Vikhe Patil, Hon’ble Minister for Revenue, Animal Husbandry & Dairy Development, Government of Maharashtra, Dr. Meenesh Shah, Chairman, National Dairy Development Board (NDDB), and Manish Bandlish, Managing Director, Mother Dairy Fruit & Vegetable.

The new plant, set up with an investment of over INR 500 crores, will span 25 acres in the Butibori Industrial Estate, Nagpur. The upcoming facility is designed with a processing capacity of 6 lakh liters of milk per day, expandable up to 10 lakh liters per day. It will produce poly-pack milk and various value-added dairy products, including ice creams, chaach, lassi, paneer, etc.

During the event, Nitin Gadkari, the esteemed Minister for Road Transport & Highways in the Government of India, expressed that the day is truly auspicious. He highlighted the collaborative efforts of the Government of India, Government of Maharashtra, and NDDB-Mother Dairy, marking a new chapter in dairy development for the Vidarbha and Marathwada regions.

Mr. Gadkari reaffirmed his vision for Vidarbha and Marathwada to play a crucial role in enhancing the milk production of Maharashtra. He emphasized the significant contribution of NDDB and Mother Dairy in boosting milk production in these areas, recognizing the positive impact of their interventions on the region’s dairy farmers’ returns. Mr. Gadkari noted that the forthcoming operational Mother Dairy processing plant would create new opportunities for farmers in Vidarbha and Marathwada. To replicate the success of the dairy development program, he encouraged NDDB and Mother Dairy to explore potential avenues for fruits, vegetables, and edible oils produced in the region, leveraging the Safal and Dhara brands.

Gadkari commended the Government of Maharashtra for providing NDDB-Mother Dairy with this opportunity and consistently striving to improve the conditions for the region’s milk producers. He expressed that the Government of India shares equal enthusiasm for the ongoing dairy transformation in these areas.

Radhakrishna Vikhe Patil, Hon’ble Minister for Revenue, Animal Husbandry & Dairy Development, Government of Maharashtra, stated that the dairy development project being undertaken in Vidarbha and Marathwada has indeed provided a new ray of hope to the dairy farmers of the region.

Patil emphasized that previously, dairy farmers in the region struggled to receive profitable returns, prompting some to exit the dairy business. However, with the entry of NDDB-Mother Dairy into the region, the situation has undergone a significant transformation. He also noted the remarkable increase in milk production due to the dairy development project, a stark contrast to the previous negligible levels. Patil commended the foresight behind such a positive change. He underscored the Government of Maharashtra’s commitment to supporting the expansion of this dairy development project into numerous additional districts.

During the event, Dr. Meenesh Shah, Chairman of the National Dairy Development Board, highlighted the initiatives and strategies implemented by NDDB and Mother Dairy for the dairy development in Vidarbha and Marathwada. He underscored the significance of the livestock and dairy sectors in the socio-economic development of the rural areas. Dr. Shah shared that as a result of the Vidarbha-Marathwada Dairy Development Project, the average daily milk procurement in the region has reached approximately 3 lakh liters, benefiting around 30,000 farmers across 3000 villages in 11 districts. The dairy farmers in the region have accrued benefits amounting to around INR 2000 crores for their produce.

Manish Bandlish, Managing Director of Mother Dairy Fruit & Vegetable Pvt. Ltd., expressed that Mother Dairy has successfully developed a resilient procurement network and a substantial presence in booths/retail. He mentioned the organization’s efforts to strengthen the entire value chain in the region through the new plant. The planned Nagpur milk processing plant, equipped with state-of-the-art technology, will be Mother Dairy’s fifth facility in the Western region. This expansion complements the existing plants in Gujarat and Maharashtra, underscoring the commitment to extend beyond Delhi NCR and specifically target growth in the Western markets.

The upcoming facility stands as one of Mother Dairy’s largest dairy processing centers, featuring state-of-the-art technology and infrastructure. The products produced at this facility will be distributed and marketed throughout various regions of the country.

Hospitality sector sees impressive bounce back as weddings fire up

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November 27, 2023

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The hospitality sector is undergoing a remarkable resurgence, driven by a significant uptick in weddings and associated events. Post-pandemic festivities are reverberating throughout the industry, signaling a significant change in preferences and customs and painting a dynamic picture of evolving traditions. According to the latest projections from CAIT, a substantial rise is anticipated, with around 3.8 million weddings expected to take place this season, in contrast to 3.2 million weddings during the same period last year.

Jaideep Dang, Managing Director of the Hotels and Hospitality Group at JLL, highlights a broader trend, remarking, “In Q3 2023, the hotel sector maintains robust performance growth, primarily propelled by increases in Average Daily Rates (ADRs). This strong upward trajectory, fueled by weddings and the approaching winter holidays, underscores the industry’s adaptability and enduring business appeal.”

Monisha Dewan, Vice President of Sales & Distribution – South Asia at Marriott International, offers a quantitative outlook on this expansion, expressing, “In 2023, weddings and associated events have experienced a notable surge, with an annual average growth rate of around 30 percent, and there is an expectation that this trend will persist into 2024.” This significant upswing, along with its economic implications, positions the hospitality sector as a resilient and strategic participant in the business landscape.

Quantifying this surge in celebrations, CAIT’s estimates project a substantial economic impact. The forecasts suggest that weddings this season are poised to generate a business value of INR 4.74 lakh crore encompassing goods and services, reflecting a notable rise from INR 3.75 lakh crore the previous year. This data not only highlights the changing dynamics of wedding celebrations but also emphasizes the considerable economic contribution of the hospitality sector within the context of business news.

Vikramjit Singh, President of Lemon Tree Hotels, emphasizes this transformation, expressing, “Following the pandemic, there has been a noteworthy rise in the quantity of weddings and associated events.” Beyond being a numerical increase, this trend signifies a strategic shift in consumer behavior within the industry.

A discernible trend in this revival is the inclination toward more intimate gatherings, especially in Tier-1 cities. Singh explains that couples and families are choosing smaller, personalized celebrations. This departure from the conventional grandeur of weddings with over 500 guests is motivated by a practical decision, with events now tailored to a more modest guest list of 200-300 individuals.

At the same time, the economic viability of destination weddings is becoming increasingly evident. Cities like Udaipur, well-known for hosting weddings, are experiencing a consistent flow of tourists in search of the perfect backdrop for their special day.

Somesh Agarwal, Managing Director of Radisson Blu Palace Resort & Spa in Udaipur, notes the strategic appeal of these locations, stating, “We host around 100 weddings a year, from big fat to intimate weddings and ceremonies.” This trend not only reflects a demand for unique settings but also positions these destinations as lucrative business avenues for the hospitality sector.

Capitalizing on this upswing, hotels are forming specialized teams to orchestrate weddings. This strategic initiative not only elevates the overall guest experience but also creates supplementary revenue streams. The influence extends beyond the hotel premises, offering a substantial boost to related sectors.

As per the CAIT report, the calculations encompass a breakdown of expenses, with five percent allocated for banquet halls, hotels, and other wedding venues, another five percent for event management, twelve percent for tent decoration, ten percent for catering services, four percent for flower decoration, three percent for travel and cab services, two percent for photo and video shoots, three percent for orchestra and band services, three percent for lights and sound, and the remaining three percent for miscellaneous expenses.

Tough market conditions force South Korean food delivery service Baemin to exit Vietnam

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November 27, 2023

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After four years of operation in Vietnam, Baemin, South Korea’s leading food delivery platform, is set to withdraw from the market on December 8 due to intense competition, according to media reports on Saturday.

Germany-based Delivery Hero SE has opted to exit the Vietnamese market, citing challenges stemming from global macroeconomic conditions and long-term profit trends. According to media reports, the parent company of Baemin Vietnam will shift its focus to other markets where it maintains a leading position.

During August, Delivery Hero’s co-founder and Chief Executive, Niklas Östberg, informed Reuters that the company’s overall business in the Asian market was thriving, except for Vietnam. Consequently, the German company initiated the process of downsizing its operations in Vietnam during the third quarter of this year.

In 2019, Baemin made its entry into the Vietnamese market through the acquisition of the local player Vietnammm from the Dutch company Takeaway.com. According to tech industry research firm Momentum Works, Baemin Vietnam held a 12% market share in the country’s food delivery sector last year. This figure trailed behind Grabfood, which had a 45% market share, and Shopeefood, which held a 41% share in the same period.

In October, Baemin secured the leading position in Korea’s food delivery market, capturing approximately 65% of the market share, as reported by Seoul-based data research firm IGAWorks. Following Baemin, the second-largest player was Yogiyo with a 19% share, while Coupang Eats held the third position with a 15% share.

In 2019, Delivery Hero inked an agreement to purchase an 88% stake in Woowa Brothers Corp., the operator of Baemin, for $4 billion. The ultimate transaction value, disclosed by the German food delivery giant in March 2021, amounted to €5.7 billion ($6.2 billion).

In 2021, Delivery Hero divested its entire stake in Yogiyo to a consortium comprising GS Retail Co., Affinity Equity Partners, and the UK-based investment firm Permira for 800 billion won ($612.4 million). This divestiture was a prerequisite for the acquisition of Baemin, mandated by the Korea Fair Trade Commission due to concerns about Delivery Hero’s potential monopoly in Korea.

Alibaba Co-Founder Jack Ma enters food and beverage space with new pre-packaged food enterprise

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November 27, 2023

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Jack Ma, Co-Founder of Alibaba Group Holding, has embarked on a fresh venture in the food and beverage sector. As reported by the South China Morning Post, Ma has initiated a new business focused on selling pre-packaged food. This move is seen as a potential indication of his expansion into sectors aligned with his post-retirement emphasis on the agriculture industry. It’s noteworthy that Jack Ma relinquished his role as chairman of Alibaba on his 55th birthday in 2019.

Jack Ma’s pre-packaged food company is named “Hangzhou Ma’s Kitchen Food” when translated into English. As per the National Enterprise Credit Information Publicity System, an official platform for business registry information, the company has been established in Hangzhou, China—the hometown of the business magnate and the headquarters of his empire.

According to the South China Morning Post, the company’s plan includes the sale of pre-packaged foods, ready meals, and edible agricultural products. Jack Ma’s decision to venture into this market is said to align with the growing demand for packaged food and shifts in lifestyle post-pandemic. Market research suggests potential growth in the domestic ready-meals industry in China over the next three years.

Subway unveils festive surprise with debut of Choc Mint Cookie, first addition to cookie lineup in four years

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November 27, 2023

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Subway has introduced a fresh cookie flavor, marking the first addition to their lineup in almost four years.

The Choc Mint Cookie is set to arrive at Subway outlets throughout Australia and New Zealand, available for a limited time until stocks run out.

Rodica Titeica, the Director of Marketing for Australia and New Zealand at Subway, expressed that in recent years, Subway cookies have achieved a level of popularity and recognition comparable to Subway Footlong subs. As a result, introducing a new flavor was deemed appropriate.

“Our annual Cookiemas campaigns have played a huge part in our cookie success and so when deciding on the new flavour to release, a Christmas-inspired cookie only seemed fitting. We cannot wait for guests to try this new flavour, but they’ll have to get in quick,” Titeica said.

Crafted fresh daily on-site, the Choc Mint Cookie flavor now stands alongside the five beloved favorites: Chocolate Chip, Chocolate Chip Rainbow, Double Chocolate Chip, Raspberry Cheesecake, and White Chip Macadamia Nut.

Subway reported the sale of 53.6 million cookies in Australia and New Zealand for the year 2023, averaging out to two cookies per person over the course of the year.

Khadim India set to secure INR 15 Crore through equity share warrants for nationwide expansion

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November 27, 2023

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Khadim (Representative Image)

The Khadim India footwear retail brand is set to secure approximately INR 15 crore through a preferential issue of fully convertible Equity Share warrants on a private placement basis. This issuance will be directed towards one of the promoters and several other specified non-promoter entities, following approval by the company’s board of directors.

The company is set to issue 408,768 (Four Lakh Eight Thousand Seven Hundred Sixty-Eight) fully convertible equity share warrants with a face value of INR 10 each. These warrants will subsequently be converted into Equity Shares with a face value of INR 10 each.

The funds will primarily be employed for nationwide retail expansion and the refurbishment of existing stores, strengthening the company’s market position.

The warrants will be offered at a rate of INR 365, inclusive of a premium of INR 355 per equity share, totaling up to INR 14,92,00,320 (Rupees fourteen crore ninety-two lakh three hundred twenty only). The conversion of these warrants into Equity Shares is to be completed within 18 months from the date of allotment.

Speaking on this fund raise, Indrajit Chaudhuri, CFO of Khadim India, said, “The company has been at the forefront of meeting the rising demand for the superior quality of fashion footwear at an affordable price point. The preferential issue enables the stakeholders to participate in the growth trajectory of Khadim.”

The World of Rum to host first ever global rum ecosystem conclave in Paris

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November 27, 2023

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The first-ever installment of The World of Rum is scheduled to take place from February 13 to 15, 2024, at the renowned Palais Brongniart in Paris. This extraordinary occasion aims to bring together imaginative and forward-thinking individuals from across the globe, delving into the multifaceted realms of economics, industry, politics, heritage, education, and training that drive the flourishing rum ecosystem.

For the first time in France, The World of Rum 2024 will bring together players from the global rum ecosystem over three days to engage in discussions on the significant challenges and opportunities that will shape the future of the sector. Anticipated in Paris are buyers and public institutions from more than 20 producing countries, alongside participants from the entire rum value chain. This inaugural edition promises a dynamic forum for announcing new initiatives within the Rum Ecosystem, fostering the exchange of experiences, and showcasing innovative ideas. With 50 exhibitors and representations from 22 countries, this groundbreaking event is further supported by Business France, which will assist a group of 20 companies in its Overseas pavilion. This unique occasion presents the chance to discover exceptional artisanal rums, featuring over 25 brands, including agricultural rums, arranged rums, amber rums, white rums, old rums, and more.

Diverging from conventional tasting-centric gatherings, the World of Rum distinguishes itself by spotlighting the complete Rum Ecosystem. This encompasses producers, distributors, manufacturers, harvesters, international buyers, influencers, and those involved in producing bottles, casks, yeast, and more. Attendees will encounter a distinctive chance to explore emerging French distillers, innovative 100% ecological packaging solutions, the application of artificial intelligence in supporting the Rum Ecosystem, and the advantageous applications of sugar cane in the pharmaceutical industry.

For Patrick LOGER, event organiser, “Given the worldwide craze for rum, this first international edition in Paris is an opportunity for all the players in the Ecosystem, from all horizons, to explain and understand the strong international growth of the market for this spirit.”

At the forefront of a taste revolution, France emerges as a trailblazer in the rum industry. The establishment of new distilleries within the heart of metropolitan areas attests to this surge, positioning the country at the forefront of the global stage. Young French entrepreneurs are spearheading the creation of spirits, embodying a renaissance in artisanal excellence with a distinct French flair. From Saint Pierre to Miquelon, passing through Brest, rum is gaining momentum and solidifying its status as the sole spirit experiencing growing demand among the 26-49 age group. This trend underscores the vibrant innovation defining the landscape of French rum.

Serving as a catalyst for burgeoning trends in the spirits realm, The World of Rum brings together international speakers and industry professionals to share their success stories in the Wines and Spirits sector. Emerging French rum enthusiasts will actively contribute to the dialogue, shedding light on their innovative production methods and their connection to sugar cane cultivation. Furthermore, globally acclaimed bartenders will unravel the dynamic evolution of mixology, playing a pivotal role in the advancement of rum, particularly in Asian countries.

Structured around four thematic areas—Public Affairs, Business, Innovation, and Education—the conference program is designed to provide a comprehensive exploration of the Rum Ecosystem. Over 35 distinguished speakers will contribute their expertise, sparking discussions on pivotal topics. Across these three days, the World of Rum will be a platform for celebrating talent and expertise, fostering international partnerships, and inspiring innovation within the ecosystem. Serving as a vibrant intersection of ideas, exchanges, and debates, the event will delve into the cultural and societal dimensions of rum with the overarching goal of:

Introducing global-scale public policies aimed at bolstering the rum ecosystem.

Fostering global collaborations among producers, distributors, and buyers.

Advocating for a sustainable and responsible industrial model across the entire sector.

Showcasing innovations and startups within the rum industry.

Directing young individuals toward fulfilling educational and professional paths, especially within universities and prestigious educational institutions.

Identifying employment opportunities in the rum sector globally.

Parle products faces growth setback in FY23 as inflationary pressures impact sales

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November 27, 2023

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Parle Products, the company behind well-known brands like Parle G, Monaco, and Melody, witnessed a deceleration in growth, settling at 4% during FY23. This marked a shift from its consistent double-digit growth seen over the past three years, though it retained its position as the largest food company in the country.

The biscuit manufacturer reported a net sales figure of INR 17,223 crore, experiencing a more than threefold increase in profit, reaching INR 905 crore for the fiscal year ending in March. Comparatively, in the preceding year, the company recorded sales amounting to INR 16,490 crore and a profit of INR 255 crore, as indicated in its latest filing with the Registrar of Companies. In the fiscal year 2022, the venerable 90-year-old company achieved a milestone by surpassing $2 billion in annual revenues, making it the first packaged food company in India to achieve this feat. Notably, its iconic glucose biscuit brand crossed the billion-dollar sales mark during this period.

“Growth slowed down mainly due to inflationary pressure which forced us to hike prices in a staggered manner throughout the year. It also led to the overall biscuits market declining by volumes, especially in the first part of the fiscal. We also saw regional players springing up in the second half when input costs fell, full impact of which will be seen during the current fiscal,” said Mayank Shah, senior category head at Parle Products.

In recent years, particularly amid the pandemic, Parle’s emphasis on providing value for money, particularly with its flagship product Parle G, has played a pivotal role in sustaining the brand’s growth. This strategy has proven especially effective during periods of inflation, as consumers tend to reduce expenditures and prefer smaller packaging options.

Nevertheless, the performance in FY23 was hindered by a slowdown in rural areas, which account for approximately 60% of Parle’s sales. This market began to decline in the previous calendar year. Parle reported sales of nearly INR 23,000 crore in consumer price terms, expressing optimism that it is poised to surpass the $3 billion sales milestone by the upcoming year.

Nearly three years ago, the company outpaced rivals, including Britannia and Nestle, to become the country’s biggest food company by annual revenue. Britannia had revenues of INR 15,618 crore while Nestle had sales of INR 16,896 crore last fiscal.

Certainly, while Britannia holds the top position in the biscuits category in terms of market value, Parle takes the lead in terms of volume, selling approximately 1.2 million tonnes of biscuits each year. Britannia has consistently been increasing its market share in recent years.

As per Kantar, Parle Products has consistently secured a position among the top fast-moving consumer brands in India for the past decade.

Fortune Park Hotels broadens presence in Tamil Nadu, unveils new hotel in Tiruppur

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November 27, 2023

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ITC Ltd’s wholly-owned subsidiary, Fortune Park Hotels, has expanded its footprint in Tamil Nadu by inaugurating Fortune Park Tiruppur in the state. This newly established property in Tiruppur, renowned as the textile and knitwear hub of the nation, signifies a notable advancement in the southward growth of Fortune Hotels, as per a press release issued on Sunday.

Fortune Park Hotels is currently situated in five additional locations across Tamil Nadu, encompassing Vellore, Ootacamund, Madurai, Chennai, and Hosur.

“The Fortune Park Tiruppur is our sixth milestone in Tamil Nadu. It is exciting to continue our successful stride into tier II and III markets aptly capturing the allure of cities like Tiruppur..” said Fortune Hotels Managing Director Samir MC in a statement.

The hotel includes an all-day dining restaurant named ‘Zodiac,’ a ‘Neptune Bar,’ and a rooftop fine dining venue called ‘Nakshatra,’ which is set to open soon. Additionally, guests can enjoy a comprehensive wellness experience with facilities such as a spa and a well-equipped gymnasium, among other amenities.

According to the statement, Fortune Park Hotels is established in 54 cities nationwide.

PepsiCo India set for major leadership transition; George Kovoor tipped as new president

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November 27, 2023

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PepsiCo India is anticipated to name George Kovoor, one of its highly experienced executives, as president. This move comes as the current president, Ahmed ElSheikh, is anticipated to transition to a global role within the American food and beverage company in the early part of next year, according to executives familiar with the situation.

“The leadership change is on the cards and likely to be announced in the coming months. It is just a matter of time,” one of the executives said, requesting not to be identified.

Kovoor, who serves as the senior vice-president and general manager of beverages at PepsiCo, has held this position since January 2022. With a three-decade-long history with the company, known for iconic brands like Pepsi, Mountain Dew, Tropicana, Lays, and Doritos, he has undertaken diverse leadership roles in Asia-Pacific, China, and New York. After an 18-year stint abroad, he returned to India, taking on the additional responsibility of formulating the company’s long-term sustainability strategy for its Indian operations.

Prior to assuming his current position, he held the role of senior vice-president for International Away From Home at PepsiCo’s global headquarters in New York.

ElSheikh, who hails from Egypt, has been spearheading the operations of PepsiCo India since 2017. As the first expatriate entrusted with leading PepsiCo’s endeavors in India, he has played a pivotal role in the company’s strategic initiatives and operational success.

“Kovoor has been identified for the role to succeed ElSheikh, who is expected to move to a global role, and comes at a time when soft drinks and packaged foods are becoming intensely competitive businesses,” said a second executive. “There are newer, larger players such as Reliance Consumer, a slew of direct-to-consumer brands and, most importantly, the resurgence of smaller regional brands which are increasingly posing threats to national brands.”

In 2019, ElSheikh spearheaded the national refranchising initiative, transferring company-owned bottling operations in the southern and western regions to Varun Beverages Ltd (VBL), owned by Ravi Jaipuria. This strategic move aimed to harness synergies of scale and enhance operational productivity. Before this, VBL was already overseeing the franchise bottling of PepsiCo’s businesses in the northern and eastern regions.

As of the time of press, queries sent via email to PepsiCo have not received any responses.

For the fiscal year ending in March 2023, PepsiCo disclosed a revenue of INR 8,128 crore, marking a significant 29% year-on-year increase. The robust growth was driven by double-digit expansion across packaged foods and beverages, propelled by heightened out-of-home demand and a surge in rural demand, supported by growing electrification and distribution expansion efforts.

The corporation supplies concentrate to its bottling ally, VBL, which is in charge of bottling and producing the multinational’s soda beverages such as Pepsi, Sting, and Mountain Dew, as well as Tropicana juices and Aquafina water in India. VBL accounts for 90% of PepsiCo India’s beverage sales volume. Additionally, the publicly listed VBL holds franchise territory rights for Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe.

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