Dunzo reports INR 1,800 Crore loss in FY23, while operational revenue soars to INR 226 Crore

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November 6, 2023

The struggling quick-commerce firm Dunzo witnessed a substantial increase in its losses, which soared to INR 1,801.8 crore in FY23. Despite this, its operational revenue surged more than fourfold, reaching INR 226.6 crore.

The company backed by Reliance Retail, which significantly reduced its operations and downsized its workforce throughout the year, experienced a notable increase in its total expenses, reaching INR 2,054.4 crore in FY23, compared to INR 531.7 crore in FY22. In the previous year, Dunzo had reported a loss of INR 464 crore, with operating revenue of INR 54.3 crore.

In FY23, employee benefit costs surged to INR 338 crore, compared to INR 138.3 crore in the preceding year. Similarly, advertising expenditures increased to INR 309.7 crore from INR 64.4 crore in the previous year, driven by the company’s advertising campaign during the Indian Premier League last year.

In recent months, investors have been closely scrutinizing Dunzo’s cash flow as the company faced challenges with debt terms and delayed salary payments for several months. They even resorted to using a payroll financing app to cover August salaries. Some portions of employee salaries for June and July have now been postponed until February of the following year.

Also Read: Dunzo turns to payroll financing app OneTap for August salary payments amid financial strain

Also Read: Legal troubles mount for struggling Dunzo as companies seek payment resolution

Meanwhile, the company witnessed the departure of five individuals from its board, including co-founders Dalvir Suri and Mukund Jha, along with representatives from investors Reliance Retail and Lightrock. Suri and Jha have completely exited the startup.

Also Read: Dunzo’s leadership exodus continues: Co-Founder Mukund Jha steps down

The company, based in Bengaluru, has additionally released numerous employees, reducing its team size to approximately 200 from the initial count of over 1,000 at the start of the year. Reports indicate that it is currently in negotiations for a potential funding injection of up to $35 million from current investors, with some of them proposing a reduced valuation of around $200 million – which is just a quarter of its peak value of $800 million.

Dunzo has significantly scaled down its operations to only a few dark stores in its hometown of Bengaluru, while collaborating with partner stores in other locations. The anticipated new funding is expected to come with a condition that the company primarily concentrates on its B2B business, known as Dunzo Merchant Services. This segment provides last-mile delivery services to clients and boasts significantly healthier profit margins compared to its B2C operation.

Costa Coffee launches exclusive Diwali-inspired menu with renowned baker Shivesh Bhatia

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November 6, 2023

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Costa Coffee, a brand owned by Coca-Cola, has unveiled its yearly Diwali initiative, #CostaWaliDiwali, in collaboration with Shivesh Bhatia, the renowned baker and content creator.

Their collaborative endeavor brings forth a Diwali-inspired coffee menu that harmonizes Diwali traditions with Costa Coffee’s innovative and modern approach.

Costa Coffee has unveiled its Blisstachio Rose beverage lineup, which includes the delightful Blisstachio Rose Hot Latte, the refreshing Blisstachio Rose Iced Cappuccino, and the enticing Blisstachio Rose Boba Frappe, drawing inspiration from traditional Indian sweets.

“At Costa Coffee, we are dedicated to embracing and celebrating cultural richness through our coffee. This Diwali, our collaboration with Shivesh Bhatia for the launch of Blisstachio Rose collection showcases our commitment to crafting unique experiences for our consumers. The skilful fusion of tradition with contemporary creativity builds a symphony of flavour that celebrates the richness of Diwali in every cup,” said Vinay Nair, General Manager, India & Emerging International, Costa Coffee at the Coca-Cola Company.

Costa Coffee has collaborated with Shamon Sachdeva, a talented graphic design student from Anant National University, to create captivating Diwali-themed coffee cup designs.

Shamon’s artistic skill intricately transforms traditional diya flames into coffee beans, paying a creative tribute to Costa Coffee through compelling visual narratives.

I am thrilled to be joining hands with Costa Coffee for an exciting festive range of beverages. Creating this range using flavours that hold a special place in my heart that I have enjoyed growing up has truly been a fulfilling experience. From brainstorming ideas to conducting trials and finally witnessing the Blisstachio Range launch, it has been an absolute joyride to spread festive cheer among people with the best of drinks.” said Shivesh Bhatia.

Costa Coffee has launched its 150th store in New Delhi. As part of its ongoing expansion plan, the brand aims to establish more outlets in the top 8-10 major Indian cities, aiming to broaden and enrich its presence across the nation.

IHG Hotels & Resorts to launch two new hotels in Chandigarh tri-city area, expanding its presence in Punjab

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November 6, 2023

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IHG Hotels & Resorts, an international hotel corporation, has signed a management agreement with NK Sharma Hospitality Pvt Ltd to launch two new hotels in the Chandigarh tri-city area. The establishments will include Crowne Plaza Chandigarh Zirakpur, targeting the upscale market, and Holiday Inn & Suites Chandigarh Zirakpur, forming part of the essentials collection.

At present, these hotels are in the construction stage and are scheduled to open their doors to guests in January 2027.

“We are thrilled to expand our mainstream offering with another Holiday Inn hotel in Punjab in the vibrant locale of Zirakpur, and to introduce Crowne Plaza Chandigarh Zirakpur, alongside our longstanding partners NK Sharma Hospitality Pvt Ltd. The hotels’ strategic location along the NH22 and their easy accessibility to popular leisure destinations like Shimla and Kasauli will undoubtedly prove to be a significant draw for travelers across segments, both leisure and business,” said Sudeep Jain, Managing Director, South West Asia, IHG Hotels & Resorts.

By expanding IHG’s presence alongside Holiday Inn Chandigarh Panchkula and Holiday Inn Chandigarh Zirakpur, this dual agreement will strengthen the company’s offerings in Punjab, adding over 350 rooms to its state portfolio.

Located in Zirakpur and part of a cluster, these forthcoming hotels will be strategically positioned adjacent to National Highway 22, a major thoroughfare in India, attracting travelers from surrounding urban areas.

Upon their inauguration, both Crowne Plaza Chandigarh Zirakpur and Holiday Inn & Suites Chandigarh Zirakpur will strategically provide expansive banquet facilities encompassing approximately 100,000 square feet of meeting space.

“We are delighted to further strengthen our partnership with IHG Hotels & Resorts through the expansion of Holiday Inn & Suites and to debut Crowne Plaza in Punjab. Building upon the success of Holiday Inn Chandigarh Panchkula, we have confidence that our partnership will prove to be fruitful, dedicated to providing top-quality hospitality to our guests. We look forward to harnessing the benefits of IHG’s global systems and robust loyalty program to maximize our mutual success,” said NK Sharma, Managing Director at NK Sharma Hospitality Pvt Ltd.

This strategic location enables them to efficiently serve the considerable demand for hosting weddings, conferences, and events in Zirakpur, Chandigarh, Mohali, Panchkula, and Dera Bassi. Additionally, their proximity to Himachal Pradesh, Haryana, and Uttarakhand will draw travelers seeking convenient stopovers during their leisure travels.

Burma Burma unveils largest restaurant yet in India, making Hyderabad home to its 10th culinary haven

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November 6, 2023

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Marking a remarkable culinary milestone, India’s pioneering Burmese specialty restaurant and tea room, Burma Burma, has recently opened its doors at Knowledge City in HITECH City, Hyderabad. This exceptional establishment celebrates the diverse culture, sumptuous cuisine, and distinctive cooking techniques of Burma.

With its extensive range of beverages and mouthwatering cuisine inspired by the streets and homes of Burma, this award-winning restaurant has already made a resounding impression nationwide. As it sets up shop in Hyderabad, it promises to be a delightful addition to the city’s burgeoning and diverse food scene.

Burma Burma seamlessly blends the authentic culinary traditions of Burma with a contemporary twist, offering a curated collection of artisanal teas within a space that harmoniously combines traditional Burmese elements with modern aesthetics. Their ever-evolving menu features a range of delectable dishes and beverages, drawing inspiration from Burmese street food, tribal heritage, and cherished heirloom recipes passed down through generations. Infused with bold flavors tailored to Indian tastes, guests can explore an array of options, including delectable small plates, refreshing salads, hearty mains, thirst-quenching coolers, mocktails, and chilled bubble teas, as well as indulgent desserts and artisanal, small-batch ice creams that evoke nostalgia.

Incorporating contemporary and minimalist design elements that honor the timeless allure of Burma and its captivating textile legacy, the fresh 120-seat restaurant and tea room sprawls across 4000 square feet. This new establishment stands as a splendid inclusion in Hyderabad’s expanding array of international cuisine options.

This is one of the first Burma Burma restaurants designed with a forward-thinking approach. As you enter, you’ll immediately notice the incorporation of unique elements inspired by its country of origin, intricately woven into the interior design. Notably, the restaurant features striking large wire-work pagoda installations, which serve a dual purpose as both decorative elements and a source of ambient lighting. However, the real eye-catchers are the vibrant booth-backs crafted from traditional Burmese basket weaves. Not only do they provide privacy, but they also inject a burst of color into the predominantly earthy-neutral color scheme of the restaurant.

In the newest branch of Burma Burma in Hyderabad, Minnie Bhatt, the Design Director at Minnie Bhatt Designs, infuses the interiors with authentic design elements that create an immersive dining experience. While maintaining the consistent design language seen across the brand’s various restaurants, the Hyderabad location distinguishes itself. A stunning 30-foot printed canvas wall panel depicting the skyline of Bagan, an ancient Burmese city, serves as a captivating backdrop that anchors the space. Throughout the restaurant, smaller design surprises are scattered, inviting customers on an enchanting design exploration.

Founded in 2014 by restaurateurs and childhood friends Chirag Chhajer and Ankit Gupta, Burma Burma (Hunger Pangs Pvt. Ltd.) has rapidly expanded its footprint to encompass 10 restaurants and delivery kitchens in key cities such as Bangalore, Delhi-NCR, Mumbai, Ahmedabad, and Kolkata. In a truly unique endeavor, Burma Burma brings the vibrant essence of Burmese culture to life like never before. Notably, Burma Burma clinched the 34th spot in the prestigious Conde Nast Traveller Top Restaurant Awards for 2023.

DeVANS Modern Breweries boosts production with new partnership in Uttar Pradesh

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November 6, 2023

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Just one year after substantially increasing its production capacity through joint endeavors in Arunachal Pradesh and Jharkhand, DeVANS Modern Breweries, renowned as the country’s oldest manufacturer of top-quality malt spirits and an array of acclaimed beers, has announced a new collaboration in Uttar Pradesh. DeVANS has formed a production alliance with Vairagi Brewery in Barabanki, Uttar Pradesh, expanding its production capability by an extra 24,000 KL, bringing the total capacity to 2 million cases per year.

“Uttar Pradesh stands as a substantial beer market, and DeVANS had been encountering challenges in fully servicing the market due to capacity limitations. The Vairagi production alliance will be instrumental in satisfying the demand for our beers within the state. Furthermore, it will enable us to circumvent supplementary expenses related to import duties and freight, while simultaneously elevating our overall production capacity to 1,80,600 KL,” emphasized Prem Dewan, Chairman and MD of DeVANS Modern Breweries Ltd.

DeVANS, known for its acclaimed beer brands like Godfather, Six Fields, and Kotsberg, presently operates two breweries, one in Rajasthan and another in Jammu. Furthermore, it has been engaging in beer production collaborations in Arunachal and Jharkhand over the past year. The Vairagi partnership represents the third production collaboration for the company, and discussions are ongoing in two other states to establish similar arrangements. Additionally, DeVANS has initiated a strategic alliance with Tropical Breweries Ltd in Tamil Nadu, which is set to commence production of the company’s brands by November this year. Notably, these partnerships are built on cutting-edge, modern breweries with superior infrastructure to ensure the production of high-quality beers.

DeVANS has consistently brought innovative products to the Indian market, such as Six Fields Cult, recognized as India’s leading Belgian-style robust wheat beer, and Godfather Super 8, the country’s sole beer boasting an 8 percent ABV. Expanding beyond beer, DeVANS is delving into broadening its range of spirits. Last year, DeVANS entered the Single Malt segment with the launch of GianChand single malt whisky, which received notable acclaim. Several more single malt variations, distinguished by extended maturation, are set to be released by December 2023. Additionally, the company is planning to introduce a premium craft gin and a blended whisky in the subsequent year.

Sustainable agri-produce brand Himshakti secures $99.8K in pre-seed funding led by EvolveX, targets expansion and new product launch

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November 6, 2023

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Sustainable agri-produce brand Himshakti has secured $99.8K in its pre-seed funding round, with EvolveX taking the lead as the primary investor, and We Founder Circle participating as a co-investor. In addition to these contributions, Himshakti received support from VC funds such as Artha Venture Fund and Auxano, as well as backing from VKJ Projects and distinguished angel investors.

In a press release, Himshakti stated that the funds raised will be allocated towards team expansion, sales and marketing initiatives, and the introduction of new products. Additionally, the firm has outlined plans to extend its presence to over 1,000 premium stores across North India within the next three months.

Established in 2019 by Harshit Sehdev, Himshakti specializes in offering organic products such as seasoned salts, spices, teas, cereals, and juices sourced from the Himalayan region of India. The company proudly asserts its role in introducing India’s pink salt through partnerships with Hindustan Salts Ltd and Sambhar Salts Ltd.

Commenting on the investment, Harshit Sehdev, Founder, Himshakti stated,“Our vision at Himshakti is dedicated to establishing sustainable income avenues for remote Himalayan villagers and introducing the natural superfoods of the Himalayas to our consumers. This ambitious endeavor thrives on the support we receive, and I am profoundly grateful to EvolveX and WFC for nurturing our mission. Their commitment has ignited an extraordinary sense of enthusiasm and excitement within the Himshakti team and myself.”

Bhawna Bhatnagar, Co-Founder of EvolveX, shared, “In the aftermath of the COVID-19 pandemic, there has been a palpable rise in the demand for healthier consumable alternatives. With this backdrop, the allure of pristine Himalayan agricultural products is unmatched. Himshakti’s offeringsalign perfectly with this growing consumer preference, providing a fitting solution to today’s health-conscious individuals. Particularly inspiring is Himshakti’s focus on women empowerment through itsconnections with over 12,000 women farmers. At EvolveX, we remain fully dedicated to supporting theirtransformative journey.”

The Dehradun-based FMCG brand has expanded its product line by launching new organic offerings, including Hemp flour, Hemp seeds, Hemp oil, Nettle tea, and Chamomile tea, among various other teas. Its primary goal is to provide consistent income and support to local villagers and farmers.

In October last year, the FMCG brand raised INR 17 lakh in funding, led by Artha Venture Fund and IIM Kashipur, with participation from angel investors Anand Kumar of Pier Counsel and Varun Agrawal of StarClinch.

Mother Dairy’s Safal outlets to sell onions at subsidized rates amid soaring prices

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November 6, 2023

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In an effort to alleviate the burden of soaring onion prices for consumers, the Central government announced on Saturday that Mother Dairy’s Safal outlets in Delhi-NCR will offer subsidized buffer onions at a rate of INR 25 per kilogram starting this weekend. Similarly, the Hyderabad Agricultural Cooperatives Association is extending this initiative to Telangana and other southern states.

Furthermore, cooperative organizations such as NCCF and Nafed have been actively involved in selling buffer onions at subsidized prices on behalf of the central government. Nafed has established 329 retail points, including mobile vans and station outlets, across 55 cities in 21 states, while NCCF has set up 457 retail points in 54 cities across 20 states to make these affordable onions available to the public.

As of November 3, Kendriya Bhandar has also commenced retail distribution of onions through its outlets in the Delhi-NCR region.

“Safal Mother Dairy will start from this weekend. The retail sale of onions to consumers in Telangana and other southern states is being taken up by Hyderabad Agricultural Cooperatives Association (HACA),” the consumer affairs ministry said in a statement.

The ministry has launched a robust retail distribution of onions from the buffer stock, aiming to alleviate the recent surge in onion prices caused by delays in the arrival of the kharif crop and provide relief to consumers.

The government has retained a buffer stock of 500,000 tonnes of onions for the present year and intends to establish an additional buffer of 200,000 tonnes.

Due to the recent government measures, wholesale prices are showing a declining trend, but it takes time to reflect in retail markets.

According to the statement, the wholesale price of onions in the Lasalgaon market in Maharashtra was INR 4,800 per quintal on October 28. However, by November 3, it had dropped to INR 3,650 per quintal, reflecting a significant 24% decrease within just one week.

“Retail prices are expected to show a similar decline from the coming week,” the ministry noted.

It’s worth noting that in the last week of June 2023, tomato prices surged due to supply disruptions caused by monsoon rains and a white fly infestation. In response, the government stepped in by procuring tomatoes through NCCF and Nafed from producing states like Karnataka, Andhra Pradesh, and Maharashtra. These tomatoes were then provided to consumers at a significantly subsidized rate in major consumption centers.

Furthermore, in an effort to guarantee the accessibility and affordability of lentils for regular households, the government has introduced Bharat Dal at a subsidized rate of INR 60 per kilogram.

Bharat Dal is offered for retail purchase by consumers, as well as for distribution to the Army and various welfare programs through NAFED, NCCF, Kendriya Bhandar, Safal, and state-controlled cooperatives in Telangana and Maharashtra.

Tyson Foods issues major recall for popular ‘Fun Nuggets’ over metal fragments found in packaging

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November 6, 2023

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US-based food company Tyson Foods has initiated a voluntary recall of approximately 30,000 pounds of frozen, fully cooked dinosaur-shaped chicken “Fun Nuggets” or Dino Chicken Nuggets.

A few consumers have raised concerns about discovering small, flexible metal fragments in the product. As a precautionary measure, the company announced in a statement on Saturday that it was recalling the affected product.

The company specified that the recall pertains to Tyson brand fully cooked “Fun Nuggets” available in 29-ounce packages, and assured that no other Tyson brand products have been impacted by this issue.

According to the company, the product was manufactured at a single facility on September 5, 2023.

In a statement released on Saturday, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced that Tyson Foods is recalling approximately 30,000 pounds of fully cooked breaded chicken.

The FSIS disclosed that there has been a single reported minor oral injury linked to the consumption of this product. They further noted that they have not received any further reports of injury or illness related to the consumption of these products.

India leads Asia-Pacific markets as top performer for global consumer goods corporations

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November 6, 2023

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The Indian market has showcased remarkable performance in contrast to the rest of the Asia Pacific, including China, for numerous major global consumer goods companies, as per their post-earnings management comments in the past quarter.

Several of these companies, including Mondelez International, PepsiCo, Coca-Cola, Pernod Ricard, Colgate-Palmolive, Unilever, Levis Strauss & Co, Yum! Brands, Honeywell International, and AO Smith, reported robust growth, with some achieving double-digit increases in their India operations during the July-September quarter. Their India performance stood out as one of the strongest across all emerging markets for these multinational corporations. Apple and Coca-Cola, for instance, achieved their highest sales and volume performance in several years, while major players in the alcohol beverage industry, Pernod Ricard and Budweiser Brewing Company, anticipate their India business to significantly contribute to their global figures in the current fiscal year, thanks to the notable trend of premium product demand.

The senior leadership of these corporations affirmed that the demand in India continued to exhibit remarkable strength.

Mondelez’s Chairman and Chief Executive, Dirk Van de Put, noted that consumer demand in India during the previous quarter reached its highest point in four years.

Coca-Cola’s Chairman and CEO, James Quincey, mentioned that the company is witnessing strong consumer demand in Latin America, India, and various regions within Central and Southeast Asia. However, he noted that consumer spending confidence has not fully rebounded in Africa and China.

Global consumer goods giants are experiencing renewed optimism at a juncture when industry observers have consistently reported month-on-month improvements in demand for various products in India, including fast-moving consumer goods, groceries, consumer electronics, and mobile phones. This positive trend coincides with a moderation in inflation.

In October, the initial month of the current quarter, demand has shown further enhancement, driven by increased festive spending and a growing emphasis on premiumization, as reported by industry executives.

Quincey said Coca-Cola delivered double-digit volume and revenue growth in India, which resulted in the highest value share gain over the past three years even as China was a drag in volumetric terms. “We’re winning in the (Indian) marketplace by generating 2.6 billion transactions at affordable price points and driving availability across rural regions,” he said.

For the first time ever, Apple CEO Tim Cook began his earnings call by focusing on India’s performance, highlighting the record-high revenue and iPhone sales in the Indian market during the last quarter. Cook expressed his enthusiasm for the Indian market, attributing its success to the expanding middle-class segment, improved distribution networks, and various positive factors. He also noted that the two retail stores established in India have outperformed their initial expectations.

During the earnings call, Mondelez’s management reported that the company’s India operation experienced double-digit growth in the September quarter, whereas China expanded at a high single-digit rate, in contrast to the 3.4% volume growth in all emerging markets combined. Colgate-Palmolive executives, on the other hand, mentioned a 4% decrease in net sales for the Asia Pacific region in the last quarter, with a 1.5% decline in organic sales growth. However, they highlighted that the India business continued to demonstrate strong organic sales growth.

According to Reserve Bank of India Governor Shaktikanta Das, India’s GDP growth for the September quarter is expected to surpass earlier estimates. Furthermore, India’s goods and services tax revenue saw a notable 13% increase in October, reaching Rs 1.72 lakh crore. This marks the second-highest monthly collection since the introduction of the levy in July 2017.

International corporations engaged in discretionary sectors such as alcohol have confirmed that the premiumization trend remains unabated.

Helene de Tissot, Pernod Ricard’s Chief Financial Officer, remarked that in India, the fundamental performance is exceptionally robust.

“That’s why we believe this is going to support our ambition to deliver strong growth in the rest of the year and strong growth in the full year and in India. The fundamentals are excellent. There’s an ongoing premiumisation trend, geographic structural tailwind…So this is a key market for us with a very strong potential. That’s why our ambition is very strong for the year,” Tissot said.

Budweiser Brewing Company APAC, one of the major beer companies in the Asia Pacific, reported robust double-digit growth in its premium and super-premium portfolios in India during the last quarter. This substantial growth in these segments contributed to a strong double-digit increase in overall revenue for the company’s India business.

Adani Group set to exit edible oil giant Adani Wilmar in high-stakes sale

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November 6, 2023

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Adani Group is currently engaging in discussions with several multinational consumer goods corporations regarding the potential sale of its complete 43.97% share in Adani Wilmar Ltd, the owner of the renowned Fortune brand known for its edible oils and packaged grocery products. According to insiders familiar with the situation, a transaction is anticipated to be formally concluded within the next month.

The conglomerate, which spans ports and renewable energy, anticipates receiving $2.5-3 billion for its stake in the joint venture with Wilmar International, a Singapore-based company that also holds a 43.97% ownership in the firm, as per their statement.

As of the press time, emails sent to Adani Group and Adani Wilmar have gone unanswered.

Wilmar International has chosen not to provide a comment.

Adani Wilmar’s stock price has decreased from INR 488 in mid-May to INR 317.45 on Friday, resulting in a market capitalization of INR 41,258 crore ($4.96 billion).

“Adani Group will exit a few businesses to invest more deeply in core focus areas such as infrastructure,” one executive said. “Plans to disinvest its stake in Adani Wilmar are on these lines,” he said, adding that proceeds from the proposed sale are likely to be used for investments in other group businesses, and not to pare debt.

Adani Wilmar stands as a major contender in the edible oil industry. In the previous fiscal year, the company disclosed a net profit of INR 607 crore on a revenue of INR 55,262 crore.

The group’s promoters have been contemplating divestment of non-core assets to establish a financial cushion. This decision was prompted by the Hindenburg short-seller report on the group earlier this year, which resulted in the abrupt cancellation of a planned share sale in the flagship Adani Enterprises and caused a wealth erosion of $150 billion for investors. However, it’s worth noting that the group’s companies have since regained most of the value lost in their share prices.

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