Indian buyers pull back on palm oil purchases amid rising prices

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November 23, 2023

Indian buyers have scaled back their palm oil purchases for December and January shipments, attributing the decision to escalating prices and refiners confronting negative margins. Industry officials, speaking to Reuters on Thursday, highlighted the challenges faced by refiners who engaged in substantial imports in the preceding months.

Reduced acquisitions from the largest global importer of vegetable oils may result in increased palm oil stocks in major producing countries like Indonesia and Malaysia. This could exert downward pressure on benchmark futures, currently hovering near their highest levels in the past two months.

“Traders are attempting to liquidate stocks accumulated at ports due to aggressive imports in recent months,” stated Rajesh Patel, managing partner at edible oil trader and broker GGN Research.

“Currently, there’s no import parity. Older imported stocks are being offered at lower prices compared to the price of new shipments.”

Traders have indicated that the landed cost of crude palm oil for December shipments on the west coast, excluding import taxes, is INR 77,500 per metric ton. Meanwhile, previously imported oil is being presented at INR 76,500.

Vegetable oil stocks in India rose to 3.3 million tons on November 1 from 2.46 million tons a year ago, propelled by increased imports during the period from July to September, as reported by the Solvent Extractors’ Association of India.

Expressing apprehension about the durability of the recent price surge, buyers are exercising caution in placing new import orders, according to Sandeep Bajoria, the CEO of Sunvin Group, a vegetable oil brokerage.

A dealer based in New Delhi from a global trade house mentioned that the deceleration in new purchases might lead to a decrease in imports for December and January.

He mentioned that the growing availability of domestic soyoil and cottonseed oil has also reduced the necessity for imports.

According to Patel from GGN Research, India’s palm oil imports in November are expected to decline to 770,000 metric tons from the previous year’s 1.1 million tons.

He mentioned that imports of soyoil and sunflower oil in November might decrease to 130,000 tons and 150,000 tons, respectively.

India predominantly procures palm oil from Indonesia, Malaysia, and Thailand, while soyoil and sunflower oil are sourced from Argentina, Brazil, Russia, and Ukraine.

Fork N Knife raises $800k in seed funding to expand into Europe and Africa

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November 23, 2023

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Fork N Knife, a cloud kitchen company, has raised $800,000 in its seed funding round to expand its business in European and African markets by the end of this year, according to a report by Zawya.

The capital was raised from a group of angel investors and institutions outside the Middle East.

The news agency quoted Fork N Knife co-founder and CEO Yasser Nasr-Aldinas saying, “Having been in the cloud kitchen industry for eight years, I saw the need for a new model that solves the real challenges faced by restaurant owners.

“We decided to challenge the conventions by offering our CAAS model, which completely removes the fixed costs that eat up the profits of restaurant owners.

“We also leverage technology to enhance the food production process and support our partners to excel in the growing food market.”

The funds will be utilized to bolster the company’s commitment to advancing the food tech sector via its “Cooking As A Service” (CAAS) model.

Its approach is purportedly distinct from the conventional fixed-fee frameworks employed by traditional cloud kitchens.

Fork N Knife asserts that its CAAS model enables restaurant and food concept developers to expand their businesses without requiring any initial investment.

As of now, Fork N Knife has three establishments in Turkey.

Nasr-Aldin added, “The success of this seed funding round reflects the confidence of the investors in Fork N Knife and the huge potential we have to transform the food industry in the region.

“We have also started negotiations for our Series A funding round, which shows the strong interest and trust in our innovative approach to cloud kitchens.”

Jack in the Box’s Q4 FY23 net earnings tumble 52% to $21.89 Million

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November 23, 2023

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Jack in the Box, the parent company of the Del Taco restaurant brand, has posted net earnings of $21.89 million for the fourth quarter (Q4) of fiscal year (FY) 2023.

This represents a 52.25% decrease compared to the $45.85 million reported a year ago.

For the quarter ending on October 1, 2023, total revenues amounted to $372.52 million, indicating a 7.5% decrease compared to the $402.77 million reported in Q4 FY22.

In Q4, the company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $68.4 million, reflecting a decline from the $81.9 million recorded in the corresponding quarter of the previous year.

The company’s diluted earnings per share decreased to $1.08 in the quarter, down from $2.17 compared to the same period last year.

Jack in the Box reported a 3.9% increase in same-store sales for the quarter, whereas Del Taco experienced a 1.5% decline in same-store sales during the same period.

During the final quarter of FY23, Del Taco inaugurated seven new restaurants while shutting down nine.

Jack in the Box attributed its sales performance to pricing, although this was partially counterbalanced by reductions in transactions and menu mix. The company experienced a 4.3% increase in systemwide sales in Q4.

In Q4 2023, the restaurant-level margin for the brand reached 20.7%, marking a rise from the 16.2% reported in the corresponding period of the previous year.

During the most recent quarter, Jack in the Box inaugurated six new restaurants and shut down 11 restaurant locations.

Jack in the Box CEO Darin Harris said, “We achieved several important milestones for our business in 2023, including positive unit growth, successful new market openings, accelerated Del Taco refranchising, strong same stores sales performance and improvements in restaurant-level profitability.

“Despite some industry headwinds, we are excited about our opportunity in 2024 to expand both brands into new markets and continue driving our transformational growth strategy.”

Turn Capital expands portfolio with acquisition of Flash Coffee in Thailand

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November 23, 2023

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Turn Capital, a venture capital firm, has successfully acquired Flash Coffee, the Thailand business/franchise of a tech-enabled coffee chain headquartered in Singapore.

The financial specifics of the transaction were not disclosed by the companies.

Turn Capital has revealed its intentions to expand the coffee chain’s footprint in Thailand by opening over 100 new stores in the next two years.

Turn Capital partner Shang Koo said, “Flash Coffee is an exciting tech-enabled coffee brand and has been a source of delight for many coffee lovers across the region.

“We are impressed by what the team has built in Thailand over the past years and are excited to play a major role in the company’s next growth phase. Turn Capital’s focus and expertise is on the consumers, building digital-enabled and loyal consumer ecosystems by creating exciting products and services.

“We are excited to partner with Flash’s management team to bring the tech-driven Flash Coffee brand to profitability and to work with the young and energetic Thailand team to grow the company over the next few years.”

Founded in 2020, Flash Coffee presently runs over 200 stores spanning Indonesia, Thailand, Hong Kong, and South Korea.

Flash Coffee Thailand managing director Vincent Hosman said, “Turn Capital goes beyond providing funds; it involves harnessing operational expertise. We are excited to spearhead our expansion endeavours, fortify our team, diversify our drinks and food offerings and continue opening new stores.

“We’re set to paint the streets of Thailand yellow, symbolising the spread of our commitment to amazing coffee at unbeatable prices. The future looks bright for Flash Coffee Thailand.”

In May of this year, Flash Coffee secured $50 million in a Series B funding round, with White Star Capital taking the lead.

Participating in the funding round were investors like Delivery Hero, Geschwister Oetker, and Conny & Co, with a number of them choosing to augment their ownership in the company.

Kim Kardashian’s Skky Partners makes fiery first investment in condiment brand Truff

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November 23, 2023

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Skky Partners, the private-equity firm founded by Kim Kardashian, has opened its account by acquiring a majority stake in the US condiments company Truff.

Specifics regarding the financial aspects were not revealed.

Founded in 2017 by Nick Ajluni and Nick Guillen, the condiments brand specializes in truffle-infused products like hot sauce, pasta sauce, mayonnaise, oil, and salt. Initially oriented toward direct-to-consumer sales, the business has grown significantly and now includes prominent retailers such as Whole Foods, Target, and Publix in its distribution network.

Entrepreneur, influencer, and private-equity investor Kardashian stated that Skky Partners’ support for Truff represents its initial investment as the firm aims to focus on consumer brands. Kardashian described Truff as precisely the type of business that embodies what they were seeking.

Jay Sammons, Skky Partners’ co-founder and managing partner, said, “The business has a very strong foundation and is now at the perfect juncture for us to bring our experience building and scaling unique consumer brands to help fuel the next stage of Truff’s growth.”

As per a statement, the founders of Truff will persist in their roles as co-CEOs and maintain their status as “significant investors in the company.”

As part of the transaction, Mark Ramadan, co-founder, and former CEO of the U.S. condiments business Sir Kensington’s, will join Truff’s board as an independent director. This addition will be accompanied by the presence of David Brisske, the managing director of Skky. It’s worth noting that Unilever acquired Sir Kensington’s in 2017.

Ajluni added, “The investment will help us expand our wholesale business through continued distribution expansion, product innovation, awareness and the implementation of in-store merchandising practices.”

A joint statement from both co-founders read, “We know that Mark’s deep experience will make him an invaluable partner to us as we look to expand our distribution footprint, accelerate in-store performance and continue to introduce new products.”

Truff distributes its products in various countries, encompassing South Korea, Australia, New Zealand, the United Kingdom, Canada, and Mexico.

Upon inquiry, the company chose not to provide information regarding its annual sales and profits.

Indian Railways takes dining to new levels with second Rail Coach Restaurant in Pune

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November 23, 2023

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The Rail Coach Restaurant stands as a pioneering endeavor by the Indian Railways, earning acclaim among both travelers and the general public across numerous states.

At Pune, the second Rail Coach Restaurant was inaugurated in the Pune rail division, with Divisional Railway Manager Indu Dubey, Additional Divisional Railway Manager Brijeshkumar Singh, and other senior officials leading the ceremony.

The rail coach restaurant at Pune railway station has been built on an area of 100 square meters, on the side of Tadiwala road circulating area near Pune Divisional Railway Manager (DRM) office. The Restaurant on Wheels (ROW) will be managed and operated by OAM Industries India Pvt. Ltd. (Haldirams).

Delectable cuisine of the highest quality will be available round the clock, meeting the preferences of all. The air-conditioned restaurant, designed as an upscale dining destination, promises a distinctive experience for diners. Inside the coach, there will be seating for 40 patrons, featuring 10 tables, according to officials.

The restaurant’s interior ambiance has been adorned to provide a wholesome dining experience for both passengers and the public. For the convenience of passengers, a takeaway counter has been set up, enabling swift order pickups to ensure timely boarding of trains. Additionally, this service is accessible through various online food ordering apps.

“It offers a wide range of products including Raj Kachori, Chola Bhatura, Pau Bhaji, Veg Thali and combo, South Indian, North Indian, Pack Sweets and Namkeens, Chaats, Beverages, Softy, traditional Indian Sweets etc. This contract will fetch a revenue amount of INR 60,00,000/- per annum for Railways and will also provide food services to the passengers and public of Pune city,” an official said.

Chinchwad station in the Pune division is already home to a mobile restaurant, serving the local community. Furthermore, plans are underway to introduce similar restaurants on wheels at Akurdi, Baramati, and Miraj stations, with the installation process already initiated.

“The Coach Restaurant will provide hygienic and delicious food not only to the passengers but also for the common public. This coach restaurant, which is to be operated by Haldirams, will be a special attraction for the youth and college students in the nearby area as it will provide service round the clock,” said Ramdas Bhise, the divisional commercial manager and PRO of the Pune rail division.

Reebok unveils new flagship store in Bengaluru, boosting brand’s retail presence

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November 23, 2023

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Reebok, a prominent brand in athletic footwear and apparel, has unveiled its latest flagship store in Kammanahalli, Bengaluru. The inauguration ceremony was conducted by O.P. Jaisha, a distinguished field athlete and Olympian, as stated in the company’s press release on Wednesday.

“We are delighted to bring Reebok’s innovative and high-performance products to the heart of Bengaluru through our new store in Kammanahalli,” shared Manoj Juneja, CEO of Reebok, expressing his excitement about the store’s opening.

Speaking on the inauguration, Olympian O.P. Jaisha said, “I practised early days of athletics in Reebok shoes, I am privileged to be a part of this occasion. The collection of shoes and apparel is very extensive and designed very thoughtfully for all fitness activities.”

The inauguration of Reebok’s Kammanahalli store is a component of ABFRL’s continual initiatives to broaden the brand’s retail presence and provide top-notch products to consumers throughout India.

Based in Boston, MA, USA, Reebok International Ltd. is a prominent global designer, marketer, and distributor of sports, fitness, and lifestyle footwear, apparel, and equipment.

Reebok is affiliated with the Authentic Brands Group (ABG), and in India, it operates in partnership with Aditya Birla Fashion and Retail Ltd. (ABFRL).

As of March 31, 2023, ABFRL reported a revenue of INR 12,418 crore and maintained a retail footprint covering 10.8 million square feet.

The organization operates a network of 3,977 stores, spanning around 33,535 multi-brand outlets, and has 6,723 points of sale in department stores throughout India, as of March 31, 2023.

ZappFresh raises $4.3 Million in latest funding round, sets sights on market expansion

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November 23, 2023

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ZappFresh, the meat delivery platform, has secured INR 30 crore (about $4.3 million) in a funding round co-led by Ah! Ventures, HT Media, Unity SFB, and Heifer Impact. With this latest funding, the Gurugram-based company has now raised a total of almost $14 million.

As stated in a press release, the proceeds will be directed towards acquisitions, expansions, and infrastructure upgrades in both the northern and southern markets, according to ZappFresh.

Established in 2015 by Deepanshu Manchanda, ZappFresh specializes in the sale of fresh meat, seafood, and ready-to-cook items through its app and website. The company sources its meat and fish from local farms, processes them at dedicated plants, and tailors the pieces to customer preferences before delivering them.

Presently, it operates in the Delhi-NCR and Bengaluru regions.

ZappFresh plans to introduce new product lines, aligning with the changing needs and preferences of customers to provide increased choices and convenience. The expanded offerings will encompass a diverse range, including poultry, goat meat, seafood, and ready-to-eat items, as outlined by ZappFresh.

According to Deepanshu Manchanda, the founder and chief executive of ZappFresh, the company completes approximately 4,500 orders each day, with an average basket size amounting to INR 600.

ZappFresh achieved profitability for the fiscal year ending in March 2023 (FY23), with its revenue increasing from INR 56 crore in the preceding fiscal year to INR 70 crore in FY23. The company reported a profit of INR 3.5 crore in FY23.

In July, ZappFresh successfully acquired Dr. Meat for approximately $3 million, marking a strategic investment poised to foster the company’s expansion.

As per information from TheKredible, a data tracking and startup intelligence platform, the co-founders of ZappFresh possess approximately 40% of the stake, with SIDBI emerging as the primary external stakeholder holding a 21% stake.

ZappFresh contends with rivals such as Licious and FreshToHome, both of which have secured substantial funding and operate on a larger scale. Despite their extensive operations, these competitors have experienced significant financial losses. In FY23, Licious reported a modest 9.6% growth, achieving INR 747.7 crore in revenue but incurring a substantial INR 500 crore loss. Similarly, FreshToHome disclosed INR 102 crore in revenue (GMV of INR 1,100 crore) for FY22, accompanied by a significant INR 477 crore loss. As of now, FreshToHome has yet to release its financial numbers for FY23.

Mamaearth shares soar 20% in intraday surge driven by strong Q2 FY24 earnings performance

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November 23, 2023

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Honasa Consumer Ltd, the holding company of D2C unicorn Mamaearth, experienced a 20% surge in its shares during Thursday’s intraday trading. The stock reached a record high of INR 422.5 on the BSE after the company disclosed its Q2 FY24 earnings.

On Wednesday, Mamaearth reported a profit after tax (PAT) of INR 29.4 Cr in Q2, demonstrating a substantial 94% year-on-year (YoY) increase. Simultaneously, its operating revenue saw a growth of 21%, reaching INR 496.1 Cr.

In fact, there seems to be an overall improvement in the company’s financial performance. In the previous fiscal year (FY23), Mamaearth had incurred a loss of INR 151 Cr. Although the startup’s performance for the entire fiscal year is yet to be observed, it has reported a profit after tax (PAT) of INR 54.1 Cr in the first half of FY24.

The startup reported that 40% of its revenue growth originated from online operations, with revenue from offline channels experiencing a 33% increase in H1 FY24. Additionally, it asserted that quick commerce has become a robust channel, witnessing a remarkable over 100% year-on-year (YoY) growth.

This was the first time the company submitted its quarterly financial statements since it went public earlier this month.

The D2C unicorn had a subdued start on the Indian stock exchanges. Although it began trading at an almost 2% premium on the NSE, the shares opened flat at INR 324 on the BSE. The presence of a loss-making book significantly contributed to the negative impact on its public listing.

In the current funding environment, investors are placing a strong emphasis on the profitability of emerging technology companies, whether they are publicly traded or not. Shares of startups such as Zomato, Paytm, and PB Fintech have experienced a notable upswing this year, rebounding from the challenges faced in 2022, driven by positive developments in their financial performance.

Mamaearth’s shares were on an upward trajectory at the start of the week but experienced a decline in yesterday’s trading. As of now, the stock is trading more than 30% above its initial listing price.

Govt mulls over voluntary ONDC registration in new ecommerce policy

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November 23, 2023

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The proposed new ecommerce policy may not require online business firms to mandatorily register on Open Network Digital Commerce (ONDC).

According to a report from Mint, the Department for Promotion of Industry and Internal Trade (DPIIT) might not enforce a requirement for online portals to reveal their ‘buyer and seller’ database to the ministry’s service facilitator, ONDC.

Nevertheless, the forthcoming policy is expected to suggest voluntary registration, indicating a departure from prior considerations. This change in position comes after conclusive consultations with stakeholders in early August. Initially, the government had been contemplating transforming ONDC into a comprehensive one-stop service-providing network.

The upcoming ecommerce policy may tackle concerns pertaining to unfair trade practices, encompassing issues like predatory pricing and flash sales.

In the proposed legislation, the government has already relaxed the obligatory criteria for establishing an independent regulator specifically designed to supervise online retail platforms.

Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CAIT), proposed that, in addition to ONDC registration, all online players should be required to register with DPIIT. Furthermore, he recommended the establishment of a distinct regulatory body to effectively combat online fraud.

Lately, stakeholders in the industry advocated for the government to allow foreign direct investment (FDI) in inventory-based ecommerce platforms engaged in the export of goods.

From the existing policy standpoint, foreign direct investment (FDI) is only allowed in ecommerce platforms utilizing a marketplace model, while it is prohibited for inventory-based ecommerce entities.

The formulation of the e-commerce policy has been an ongoing initiative since 2018. The government’s approach involves amalgamating diverse rules and regulations governing ecommerce platforms into a comprehensive and unified regulatory framework. This holistic strategy seeks to incorporate essential elements, including the Consumer Protection Act, the Foreign Direct Investment policy issued by the DPIIT, the Competition Act, and the forthcoming Digital India Act, into a cohesive set of regulations for the ecommerce sector.

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