Revlon to boost presence and revenue in India, aims to launch perfume range

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November 15, 2023

Revlon (Representative Image)

Revlon, the renowned beauty and cosmetics brand, is aiming to achieve a business expansion by doubling its current revenue to INR 400 crore in the ongoing fiscal year. Operating in India through its local partner, Modi-Mundipharma Beauty Products, the company is set to enhance its offline network.

According to a senior company official, Revlon plans to boost its presence by increasing the number of stores from the current 300 to 600. Additionally, the company aims to quadruple its reach, expanding from 1,000 departmental stores to an impressive 4,000 stores. This strategic move is part of Revlon’s commitment to further establish its position in the Indian market.

Moreover, as part of its initiative to broaden its product range for the Indian market, Revlon is contemplating the introduction of perfumes under its brand. This expansion comes in response to the anticipated significant growth in the beauty and cosmetics sector, driven by the millennial generation.

Similar to many beauty brands, Revlon experienced success during the COVID-19 pandemic. However, like its counterparts, the brand has made a remarkable comeback and is currently enjoying a sales “boom” during this festive season, earning a “Diwali blockbuster” in terms of sales.

When asked about expansion Meghna Modi said, “We have around 300 outlets and planning to go around 600 outlets and increase presence in 1,000 department stores to 4,000 department stores.”

Regarding the timeline for this, Modi said, “It will be in the next 2-3 years. We will also double our business next year.”

Revlon achieved a turnover of approximately INR 200 crore for the fiscal year ending on March 31, 2023.

At present, 25 percent of Revlon’s sales in India are generated through online channels, while the remaining 75 percent come from offline sources such as the brand’s own stores and departmental stores managed by prominent retailers.

The company is strengthening its footprint on social media platforms, including Instagram, as mentioned by Modi, who returned to spearhead the Revlon business a few weeks ago after a two-decade hiatus.

Revlon operates within the luxury segment, contending with global brands like MAC Cosmetics and Estee Lauder. Additionally, it faces competition from domestic brands such as Lakme, L’Oreal’s Maybelline, and numerous emerging online or direct-to-consumer (D2C) rivals like Nykaa, Sugar, MyGlamm, and others.

As per a collaborative report from Redseer Strategy Consultant and Peak XV (formerly Sequoia Capital India & Southeast Asia), the Indian beauty and personal care market is projected to reach USD 30 billion by 2027, constituting approximately 5 percent of the global market.

The Indian Beauty and Personal Care (BPC) market, valued at approximately USD 19 billion in 2022, exhibits a relatively low per capita spend in the category. However, the report suggests that as the country continues to prosper, significant growth potential in this sector will emerge strongly.

In the midst of heightened competition in the beauty and cosmetic sector, Revlon is placing its confidence in the quality of its products.

“Whenever we do a study, consumers love our products,” she said, adding, “Our promise is long way and long care.”

Additionally, Revlon aims to capture the attention of aspirational consumers in tier II cities by offering affordable entry price points, starting from INR 399 onwards. This positions the brand in competition with Maybelline from L’Oreal and Lakme from Hindustan Unilever Limited (HUL).

Nevertheless, Modi also emphasized the necessity for enhancing visibility and merchandising in tier II cities.

Modi-Mundipharma Beauty Products, formerly recognized as Modi-Revlon and affiliated with the Umesh Modi Group, launched Revlon in India in 1995. The company specializes in the sale of color cosmetics, fragrances, and hair care products.

Tilaknagar Industries set to launch Mansion House Chambers Brandy in key Southern markets

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November 15, 2023

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Tilaknagar Industries Ltd, a renowned producer of premium brandy, has outlined its strategy to introduce Mansion House Chambers, its high-end brand, in pivotal southern markets. The company announced on Tuesday that it had initially introduced Mansion House Chambers Brandy in the nearby region of Puducherry and is now poised to expand its presence in key southern markets during the initial phase.

“We are immensely passionate about brandy. Our latest premium offering, Mansion House Chambers, is born out of our unrelenting focus on innovation to diversify our portfolio and revitalise the brandy segment,” said Chairman and Managing Director Amit Dahanukar in a company statement.

The introduction of the new brand comes on the heels of the company experiencing a substantial 28% growth, outpacing the 4% growth observed in the Indian Made Foreign Liquor industry for the first half of the year ending on September 30, 2023. Tilaknagar Industries reported a sales increase to 53.6 lakh cases during the initial six-month period concluding on September 30, 2023, compared to the 42 lakh cases sold in the corresponding period the previous year. It’s noteworthy that India holds a significant position as one of the largest global markets for brandy.

Brandy continues to hold over 20 per cent of the IMFL sector, the statement added.

Nestlé India adds flavor to nutrition: Launches MAGGI Oats Noodles with Millet Magic

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November 15, 2023

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Nestlé India has expanded its range of Millet-based products by introducing MAGGI Oats Noodles with Millet Magic under the MAGGI Oats Noodles sub-brand. With almost two-thirds of Indian households regularly enjoying MAGGI noodles, this launch has the potential to play a significant role in popularizing millets across the country.

The latest offering blends Sorghum (Jowar) and Finger Millet (Ragi) with wholesome oats. MAGGI has taken a tasteful approach with aromatic spices to enhance the enjoyment of millets and elevate the overall experience.

Commenting on the launch, Rajat Jain, director – Foods Business, Nestlé India, said, “We are excited to introduce the new MAGGI Oats Noodles with Millet Magic with goodness of millets. This launch aligns with MAGGI’s commitment to provide consumers diverse options by recalibrating innovations. With this new product, we have combined oats with Indian millet to offer consumers a product that is a source of fiber and protein. Over the four decades of our existence in India, we have received immense love from our consumers. We are confident that our consumers will receive the MAGGI Oats Noodles with Millet Magic with equal love and enthusiasm.”

The MAGGI Oats Noodles with Millet Magic is a key addition to Nestlé India’s innovative millet-based product lineup spanning various categories. The Nestlé R&D Centre India Private Limited in Manesar, a subsidiary of Nestlé S.A and an integral part of Nestlé’s global R&D network, has entered into a Memorandum of Understanding (MOU) with Nutrihub-IIMR to collaborate on aspects such as millet processing, health and nutritional benefits, sustainable regenerative agriculture practices for millets, and partnerships with startups. As a product from the MAGGI brand, consumers can expect a delightful taste, thanks to a tastemaker infused with a blend of 20 spices and herbs.

The MAGGI Oats Noodles with Millet Magic will be accessible in major metropolitan areas and will be priced at INR 175 for a package containing 4 servings.

Baba Food Processing faces 5% decline on NSE SME after debut at IPO price

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November 15, 2023

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Baba Food Processing’s stock had a subdued start on the NSE, debuting at the IPO price of INR 76 on November 15. Following its listing, the stock experienced a 5 percent decline, settling at INR 72.2 on the SME platform of the exchange.

Baba Foods’ shares were commanding a 13 percent premium in the grey market, an unofficial ecosystem where shares are traded before allotment and up until the listing day. Investors commonly monitor the grey market premium (GMP) to gauge expectations for the listing price.

The offering garnered strong investor interest, witnessing a subscription rate of 69 times. The retail segment was oversubscribed by 60 times, non-institutional investors showed substantial demand with an 84 times oversubscription, and qualified institutional buyers took the lead by subscribing 147 times their allocated quota.

The Baba Food Processing IPO opened for subscription on November 3 and closed on the 7th. The price band for the issue was fixed at INR 72-76 per share. Through the IPO, the company raised INR 33 crore. The offer consisted entirely of a fresh issue of 43.42 lakh shares.

The funds generated will be directed towards investing in the wholly owned subsidiary, Panchakanya Foods Private Limited (PFPL). The objective is to establish a state-of-the-art, highly automated roller flour mill, and chakki whole wheat atta mill in Patna, Bihar.

The generated funds will be allocated for acquiring machinery to produce chickpea flour (Besan) and roasted gram flour (Sattu) at its current manufacturing facility in Ranchi. Additionally, a portion or the entirety of specific outstanding unsecured borrowings obtained by the company will be prepaid or repaid using the proceeds.

Horizon Management served as the book-running lead manager, Mas Services Limited acted as the registrar, and Nikunj Stock Brokers functioned as the market maker for the offering.

Baba Food Processing operates as an agro-food manufacturing company, producing a diverse array of items such as whole wheat atta (wheat flour), refined flour (maida), tandoori atta, and semolina flour (sooji). With a current manufacturing facility in Nagri, Ranchi, the company is in the process of establishing an additional unit in Patna, Bihar.

Burman Family dismisses betting app probe allegations as a ploy to hinder Religare acquisition

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November 15, 2023

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The Burman Family, promoters of the Dabur Group, categorically denied the allegations surrounding the betting app probe on Tuesday. Emphasizing that they have not received any formal communication on the matter, the family asserted in an official statement that the FIR was triggered by vested interests seeking to impede the acquisition of Religare Enterprises Ltd (REL) by the Burman Family.

As per ANI reports, an FIR has been lodged by the Mumbai Police against 32 individuals, including Mohit Burman and Gaurav Burman, in relation to the ongoing investigation into the Mahadev betting app.

A spokesperson for the Burman Family said, “We have not received any formal communication on any such FIR. However, we have sighted the FIR, which is being circulated to media houses. The FIR is patently false and baseless. Nothing could be further from the truth than as wrongly stated in the FIR.”

“From a copy of the FIR that is being circulated in the media, we note that allegations are being made that Mohit Burman and Gaurav Burman are directly related to some of the accused. Mohit Burman and Gaurav Burman do not even know or have ever met the accused mentioned in the FIR being circulated selectively in the media,” the statement added.

The Burman Family stated that the FIR is instigated by vested interests, characterizing it as an effort to hinder their acquisition of REL.

“Curiously, the FIR comes at a time when the Burman Family has sought to increase its existing shareholding of 21.24 per cent in Religare Enterprises and launched a legitimate open offer under the SEBI Takeover Code. As part of this, the Burman Family brought to the notice of the Board and the regulators certain governance issues being perpetrated by Dr Rashmi Saluja, the current Chairman,” the official statement added.

The Burman Family expressed astonishment, labeling these “coercive actions” as “flagrantly illegal.”

“Nevertheless, we remain resolute that we will proceed with our acquisition of Religare Enterprises as contemplated,” the official statement added.

Indian hotels capitalizing on high demand despite dipping occupancy, steers focus on revenue

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November 15, 2023

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Hotel chains remain unconcerned about a decline in occupancy rates, directing their attention towards bolstering revenue through market absorption of increased rates.

According to a recent report from consultancy HVS Anarock, hotels across India experienced an occupancy range of 60-62% in September. This reflects a decrease of 3-5 percentage points compared to 2019 and 1-3 percentage points compared to 2022. The report indicates a drop in demand for hotels in Pune, Bengaluru, Chennai, Delhi, and Hyderabad, while Chandigarh, Goa, Kochi, Kolkata, and Mumbai witnessed an increase in occupancy.

In September, Revenue Per Available Room (RevPAR) experienced growth compared to the corresponding periods in both 2019 and 2022. Consequently, hotels are relatively unperturbed by the decline in occupancy, attributing it to local festivities and the G-20 summit in Delhi.

“We are in a high demand, low supply environment. Hoteliers are ready to risk losing low paying segments in favour of higher paying ones. However, market seems to be absorbing the rate increase strategy with no material impact on occupancies except for seasonal variations and impact of holiday cycles. One must remember that Delhi and Mumbai have amongst the lowest hotel rates for global gateway cities,” said Sanjay Sethi, Managing Director and CEO of Chalet Hotels.

Patanjali Keswani, Chairman of Lemon Tree Hotels added, “The focus for us is on RevPAR growth. While there was some moderation in demand in September, the overall outlook is positive as we continue to open new properties.”

As per the HVS Anarock report, hotels achieved a RevPar ranging from INR 4200-4464 in September. This marked a 19-21% increase compared to 2019 and a 15-17% increase compared to 2022.

RevPAR serves as an industry metric utilized by hotels for room pricing. Additionally, hotels reported increased RevPAR on a quarterly basis. According to JLL India, there was a year-on-year growth of 15.1% in RevPAR for the July-September quarter.

“While occupancy rates can fluctuate due to seasonal trends and global events, the underlying momentum for travel and hospitality remains strong,” said Satyen Jain, CEO, Pride Hotels Group.

JB Singh, President and CEO of InterGlobe Hotels, notes that the hospitality sector in India typically experiences subdued performance in August and September. This is attributed to the onset of various occasions and local festivals during this period.

“Moreover the market witnessed a decline in September due to movement restrictions due to G20 summit in New Delhi. Weeklong festivities during Ganesh Chaturthi in Maharashtra and Karnataka, led to a drop in public and corporate movement to and from these States,” Singh said. He added the InterGlobe hotels however witnessed a robust demand in September and he foresees further improvement in the coming months.

Kamat Hotels India Ltd observed increased average daily rates and occupancies in their Mumbai and Goa properties in September. Although Orchid Hotel in Pune experienced a slight decline in occupancy, the company’s Vice President (Sales and Marketing), Sanjeev Advani, mentioned that revenue increased due to a rise in the average daily rate.

FSSAI enhances accessibility: FoSCoS portal now available in four additional regional languages, more to follow soon

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November 15, 2023

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To improve user experience and accessibility, the Food Safety and Standards Authority of India (FSSAI) has introduced the Food Safety Compliance System (FoSCoS) portal in four additional regional languages, in addition to Hindi and English.

The portal is now accessible in Gujarati, Tamil, Telugu, and Marathi, alongside Hindi and English.

According to an official statement, the Food Safety and Standards Authority of India (FSSAI) intends to soon launch the portal in Kannada, Punjabi, Malayalam, Assamese, Bengali, and Odia.

The recent development is geared towards improving the user experience for local food businesses, facilitating seamless interaction with the FSSAI’s nationwide online compliance portal, FoSCoS, which was introduced in 2020.

T.A.C CEO Shreedha Singh invests INR 2 Crore in Shree Radhe Dairy Farms, fostering growth and innovation in dairy industry

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November 15, 2023

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T.A.C, The Ayurveda Company, is pleased to announce that Shreedha Singh, CEO and Co-Founder, has made a substantial investment in Shree Radhe Dairy Farms. This investment, with a particular focus on their renowned brand, Vastu Ghee, was facilitated through the innovative show ‘Indian Angels.’ In a collective effort with four other angel investors, Singh invested INR 2 crore for a 2 percent stake in the enterprise.

‘Indian Angels’ is a trailblazing show that spotlights visionaries making noteworthy contributions across diverse industries. Going beyond merely offering aspiring entrepreneurs an opportunity to secure vital investments, the platform actively encourages viewers to become investors, fostering a culture of innovation and support. Shreedha Singh’s involvement as an angel investor not only signifies a strategic investment but also serves as an inspiration, particularly for women making significant strides in shaping India’s corporate landscape.

Shreedha Singh commented, “The founders of Shree Radhe Dairy Farms showcase a humble beginning and on-ground domain expertise. Their journey from a modest start to achieving a revenue of 100 crore with a 3 percent profit margin reflects their dedicated efforts. India’s status as the world’s leading dairy supplier provides ample opportunities for growth in the industry. It’s not just about dairy; it’s about having a vision, working hard, and being in a market that demands real and high-quality products. I am proud to be part of their journey.”

Shree Radhe Dairy Farms, renowned for producing Vastu Ghee, brings forth more than 12 years of expertise in the food and beverage sector, specifically within the dairy industry. Having expanded their team from 12 to over 400 individuals, their product line, which includes Pure Desi Ghee, is well-regarded for its authenticity and purity. With a widespread network encompassing over 2000 distributors and 200,000 retailers nationwide, Vastu Ghee has firmly established itself as a household name.

Manufactured in a top-tier, secure facility, Vastu Ghee is devoid of adulterants and artificial enhancers. The company places a high priority on the welfare of its cattle, adhering to safe farming practices that yield genuine and pure milk and dairy products. Shreedha Singh’s investment signifies a dedication to backing businesses with a clear vision for growth, scalability, and an unwavering commitment to excellence. This strategic move underscores her commitment to championing indigenous and authentic Indian brands, highlighting the extensive opportunities for success across the nation.

Rebel Foods surpasses INR 1,000 Cr operating revenue milestone, reports 39% YoY growth in FY23

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November 15, 2023

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Mumbai-based cloud kitchen giant Rebel Foods saw its operating revenue cross the INR 1,000 Cr mark in the financial year ending on March 31, 2023.

According to the latest financial statements submitted to the Registrar of Companies, Rebel Foods, the umbrella company for Faasos and Behrouz Biryani, disclosed an operating revenue of INR 1,195.2 Cr in FY23, marking a 39% increase from the INR 858.6 Cr reported in the preceding fiscal year.

Established in 2011 by Kallol Banerjee and Jaydeep Barman, Rebel Foods is a startup specializing in cloud kitchens. It encompasses well-known brands including Faasos, Behrouz Biryani, Ovenstory Pizza, Mandarin Oak, The Good Bowl, SLAY Coffee, and Sweet Truth.

The main revenue stream for the startup comes from the sale of its food products. When considering additional income, the startup achieved a total revenue of INR 1,258.7 Cr in FY23, marking a 1.3X increase from the INR 907.5 Cr generated in FY22. However, during the same period, the startup recorded a loss of INR 656.5 Cr, reflecting a 23% year-on-year (YoY) increase.

During the year under review, the startup witnessed a 28% rise in total expenditure, reaching INR 1,827 Cr, compared to the INR 1,428.9 Cr spent in the previous year.

As a cloud kitchen, Rebel Foods allocated a significant portion of its funds towards the acquisition of raw materials. In the period being evaluated, the startup’s procurement cost increased from INR 446.4 Cr in FY22 to INR 577.5 Cr.

The startup’s employee benefit expenses, primarily consisting of salaries, saw a 34% year-on-year (YoY) rise, reaching INR 405.4 Cr in FY23. In June, Rebel Foods extended Employee Stock Ownership Plans (ESOPs) to 5,000 employees. According to its LinkedIn profile, the company currently employs 2,743 individuals.

Advertising expenses experienced a modest increase of 5%, reaching INR 197.9 Cr in FY23, compared to the INR 188.5 Cr incurred in FY22.

Additionally, the startup allocated INR 163.3 Cr towards commissions paid to various selling agents, predominantly Swiggy and Zomato.

In terms of unit economics, Rebel Foods expended INR 1.5 to generate each rupee from its operations. The startup’s EBITDA margin showed improvement, narrowing to -37.8% in FY23 from -46.4% in FY22.

Thus far, the startup has secured slightly more than $500 million in funding, with notable backers including Goldman Sachs, Peak XV Partners, InnoVen Capital, Trifecta Capital, and the Qatar Investment Authority (QIA). Asserting a widespread presence, the startup asserts a network of over 450 kitchens spanning 70 cities nationwide. In the competitive landscape, the startup faces competition from rivals such as Curefoods, Biriyani By Kilo, Freshmenu, and others.

OYO initiates INR 1,620 Cr debt repurchase, aims to proactively settle one-third of Term Loan B

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November 15, 2023

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OYO, a major player in the hospitality industry, is said to be strategizing to proactively settle approximately one-third of its outstanding Term Loan B (TLB) through a debt repurchase initiative.

According to the news agency PTI, OYO intends to disburse INR 1,620 Crore ($195 million) to acquire 30% of its outstanding Term Loan B (TLB). Although the debt repayment is slated for June 2026, it is said that the entire transaction will be financed using funds from the company’s balance sheet and the cash collateral account.

As per the report, the travel tech major will execute the buyback deal at par value via a public bidding process, which began on November 14 and will continue until November 18. If the bids exceed the specified amount, OYO will then buy the loan back on a pro-rata basis.

The buyback initiative is anticipated to decrease OYO’s yearly interest obligations by over INR 225 Crore. As of November 13, OYO’s debt instruments are said to have concluded at 90 cents on the dollar.

This follows closely after OYO co-founder and CEO Ritesh Agarwal informed senior executives in an internal email that OYO was on track to announce its first profitable quarter in the second quarter (Q2) of the financial year 2023-24 (FY24), with a profit after tax (PAT) of INR 16 Crore.

Interestingly, just one month ago, the hospitality unicorn headquartered in Delhi-NCR was reportedly negotiating to restructure its $660 million Term Loan B (TLB) with Apollo Management. This loan was secured during the peak of the Covid-19 pandemic in 2021 when the global hospitality industry came to a halt.

Previously, under the leadership of Ritesh Agarwal, the startup declared its operational profitability in FY23, boasting an adjusted EBITDA of INR 277 Crore. Throughout the fiscal year, the hospitality unicorn, preparing for an IPO, managed to reduce its net losses by 34% YoY, amounting to INR 1,286.5 Crore, despite a 14% YoY surge in operating revenue, reaching INR 5,463.9 Crore in FY23.

The company had also highlighted its strong position to attain an adjusted EBITDA of approximately INR 800 Crore in FY24. It is primarily due to this positive transformation that the startup anticipates funding the prepayment of the Term Loan B (TLB).

In the meantime, preparations are in progress for the eagerly anticipated IPO of OYO, marked by the departure of key executives such as OYO’s India CEO Ankit Gupta and the head of OYO Europe, Mandar Vaidya. Simultaneously, significant appointments have been announced amidst a substantial management restructuring within the company.

Amid all this, Agarwal is set to join the upcoming season of Shark Tank India as the newest shark, adding another dimension to his diverse professional engagements.

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