Shoppers Stop Q2 net profit slumps 83% to INR 2.73 Cr, revenue up 2.6% at INR 1,039 Cr

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October 19, 2023

Retail chain Shoppers Stop saw a notable 83.14 percent decline in consolidated net profit at INR 2.73 crore for the second quarter ending on September 30. This significant downturn was primarily a result of subdued demand in the apparel sector, although it was somewhat offset by growth in the non-apparel business.

According to a regulatory filing by Shoppers Stop, the company had recorded a net profit of INR 16.20 crore during the July-September period one year ago.

During the initial quarter of this fiscal year, the company’s revenue from operations reached INR 1,039.12 crore, marking a 2.6 percent increase from INR 1,012.74 crore in the corresponding period of the previous year.

During the September quarter, the total expenses amounted to INR 1,041.31 crore, indicating a 5 percent rise.

“Shoppers Stop reported impressive financial results, despite challenging market conditions and shifting of Pujo from Q2 to Q3 this fiscal. We have witnessed a strong pick-up in the Beauty businesses and consistent performance from non-apparels,” Shoppers Stop Executive Director and CEO Kavindra Mishra said.

Its “net profit for the quarter was affected due to muted demand in apparel, partially offset by growth in non-apparel,” he added.

During the quarter, it added 11 stores, which include – four Department, three Beauty and four Intune stores, the company said.

“Overall, the company spent a capex of INR 46 crore. Our commitment to invest in new stores will remain unchanged and plan to open 15 Departmental stores during the year,” the statement said.

Over the outlook, Mishra said Shoppers Stop anticipates a rebound in discretionary spending, propelling the company’s growth trajectory further in the second half of the fiscal.

“The growth prospects of both the Indian economy and fashion apparel are expected to be positive and we are determined to leverage our robust brand portfolio to drive consistent, sustainable growth,” he said.

Meanwhile, in a separate filing, Shoppers Stop said Christine Kasoulis has resigned from the position of the Non-Executive Independent Director of the Company with effect from October 18, 2023, subsequent to her appointment as Director.

“… She has taken up full-time employment which has resulted in her getting preoccupied and other personal commitments,” it said.

Shoppers Stop operates 102 department stores, 7 premium home concept stores, 87 Specialty Beauty stores of M.A.C, Est e Lauder, Bobbi Brown, Clinique, Jo Malone, Too Faced, SS Beauty, 6 Intune stores and 22 Airport doors.

Shoppers Stop shares on Wednesday settled at INR 690.05 on the BSE, up 0.98 per cent from the previous close.

Nestle India reports double-digit growth in domestic sales, crosses INR 5,000 Cr turnover in Q3

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October 19, 2023

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Nestle India, a leading player in the FMCG sector, reported a strong double-digit growth in its domestic sales during the third quarter. The company attributed this growth to a combination of factors, including product mix, volume, and pricing, as stated in its filing with the stock exchange on Thursday.

“We crossed INR 5,000 crore turnover, which has been our first in any quarter in the history of the company and a landmark for us,” said Suresh Narayanan, Chairman and Managing Director, Nestle India.

Nestle stated that the company’s growth has been driven by evolving consumer trends and a growing inclination to embrace brands in smaller towns and larger villages.

“We are creating a differentiated and diverse food portfolio across brands that promotes millets or ‘shree anna’ as a more sustainable food,” said the FMCG major.

The company noted that irregular rainfall patterns would have a significant impact on the production of essential ingredients such as maize, sugar, and spices, leading to a surge in prices.

Nestle’s profit for the third quarter amounted to INR 908 crore, surpassing the anticipated INR 799 crore as per polls. Additionally, the company announced a second interim dividend of INR 140.

Nestle has reaffirmed its full-year projections, with expectations of organic sales growth ranging from 7% to 8% and an underlying trading operating profit margin falling within the range of 17.0% to 17.5%.

The company reported that E-Commerce accounted for 6.1% of quarterly sales, and this growth was sustained across various channels, primarily fueled by Quick Commerce.

Despite the increasing costs of essential commodities like vegetables and dairy products, Indian consumers, especially those residing in urban areas, have shown a willingness to indulge in affordable indulgences like chocolates and biscuits.

Nestle acknowledges the coffee market’s ongoing instability, primarily attributable to a global supply shortage. The FMCG company foresees that the upcoming Indian Robusta crop harvest could be impacted by weather conditions, which may, in turn, affect production.

The leading FMCG company disclosed that its well-known brands, including Kitkat, Nescafe Classic, Nescafe Sunrise, along with the support from Munch and milkmaid, maintained their robust performance.

The upcoming winter weather may affect wheat production, but there is a significant expected surplus in milk production during the winter, which is likely to uphold price stability.

Expanding its offerings in key global markets to cater to the Indian diaspora has led to increased satisfaction and subsequent growth for the company. The Maggi and Nescafe Sunrise product lines saw strong demand across both ethnic and mainstream distribution channels.

Showroom B2B raises $6.5 Million in Pre-series A funding to amplify phygital presence in unbranded garments market

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October 19, 2023

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Showroom B2B, a B2B marketplace specializing in unbranded clothing, has successfully raised $6.5 million in a Pre-Series A funding round. This funding was spearheaded by Jungle Ventures and saw active participation from Accion Venture Lab, Saison Capital, and ICMG Partners.

The funding round also featured continued support from existing investors such as Strive, Gemba Capital, and Titan Capital, along with the ongoing participation of debt partners Alteria Capital and Stride Ventures.

With the capital secured, the startup is poised to amplify its phygital distribution model and establish new experiential stores throughout India. Showroom B2B is committed to bolstering its private label capabilities and extending access to high-quality, cost-effective fashion for retailers in Tier II cities and beyond.

Established by IIM Lucknow graduates Abhishek Dua and Shubham Gupta in 2020, Showroom B2B operates three experience stores. These stores serve as a platform for fashion retailers to interact with manufacturing samples before placing bulk orders. By forming partnerships with over 500 garment manufacturers and 3,000 retailers, the startup simplifies transactions and ensures doorstep deliveries through its app-based ordering system.

Speaking on the fundraise, Dua, said, “Our unwavering commitment to removing middlemen and empowering small retailers and wholesalers, who were previously excluded, has yielded impressive results.”

“Notably, our order sizes are consistently 5-10 times larger than competitors, and our industry-low return rate is in single digits, a stark contrast to the industry norm of 25-30%. But we recognise that there is still much work to be done, and that’s where our new investment comes into play. This infusion of capital will give us a significant boost in scaling our operations to make an even greater impact in the untapped sections of the unorganised apparel market,” he further added.

Amidst the challenges faced by wholesalers in keeping up with an expanding range of designs due to growing inventories, retailers often find themselves making frequent trips to sourcing clusters to replenish their store stocks. The startup asserts that its asset-light business model addresses this issue by providing retailers with access to a more extensive selection of competitively priced unbranded garments right within their local communities.

Vishesh Sharma, VP of India investments at Jungle Ventures, added, “With major global apparel manufacturing clusters located in Indian cities, domestically manufactured apparel is going to continue gathering steam. Showroom B2B enables these manufacturers to reach the market more efficiently while enabling customers to access a wider assortment of designs at competitive prices.”

As per the startup’s projections, India’s unbranded garment wholesale market is expected to increase from $50 billion to $80 billion over the course of the next five years.

Nars Cosmetics debuts in India, set to unveil first boutique in New Delhi this November

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October 19, 2023

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Nars Cosmetics (Representative Image)

Nars Cosmetics, a global makeup brand under the ownership of Shiseido, made its official entry into the Indian market with an announcement on Wednesday. The brand is set to open its first boutique in India at Select CityWalk Mall, New Delhi, in November, as stated in a press release.

“Nars is thrilled to launch in India, a thriving market that holds immense potential for our brands. With a growing demand for premium cosmetics and passionate beauty consumers who are influenced by global beauty trends and self-care, Nars is excited to bring innovative and high-quality products that will empower our fans and enhance their self-expression,” said Barbara Calcagni, president, Nars Cosmetics, Drunk Elephant, and Tory Burch Fragrances.

Nars Cosmetics can now be found at specific Shoppers Stop and Sephora outlets throughout the nation, as well as for online purchase at www.shoppersstop.com and www.sephora.nnnow.com.

“This is a proud and much-awaited moment for us at Shiseido Asia Pacific as we expand our presence in a dynamic and vibrant market like India with the launch of Nars Cosmetics,” said Nicole Tan, chief executive officer at Shiseido Asia Pacific.

“Through our strong distribution partnership with Shoppers Stop, we are looking forward to expanding our consumer reach with our omnichannel presence across the country. We have bold ambitions for Nars Cosmetics in India and are confident that we will bring more excitement and empowerment through beauty to the Indian beauty market, starting from this festive season,” Tan added.

Shiseido Asia Pacific, headquartered in Singapore, is a prominent beauty retail company that boasts a diverse portfolio of brands. This portfolio includes Shiseido, Clé de Peau Beauté, Nars, Drunk Elephant, Elixir, Anessa, and d program.

“Through our partnership with Shiseido, we are excited to introduce the globally renowned brand, Nars Cosmetics, to our valued Indian customers. We will continue to deliver a world-class makeup experience to beauty enthusiasts in the country while allowing our customers to embrace this new era,” said Biju Kassim, chief executive officer, Beauty at Shoppers Stop.

Makeup artist and photographer François Nars established Nars Cosmetics in 1994, initially introducing the brand with a collection of 12 lipsticks.

India allows export of over 10 Lakh tonnes of non-basmati white rice to seven countries

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October 19, 2023

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On Wednesday, the government announced its approval for the export of 1,034,800 metric tons of non-basmati white rice to seven countries, which include Nepal, Cameroon, and Malaysia. This export authorization is facilitated through the National Cooperative Exports Limited (NCEL), as stated in a notification by the Directorate General of Foreign Trade (DGFT).

While a ban on non-basmati white rice exports was implemented on July 20 to enhance domestic supply, exceptions are made to permit exports to specific countries upon government approval, primarily to fulfill their food security requirements and upon request.

“Export of non-basmati white rice… to Nepal, Cameroon, Cote D’ Ivore, Guinea, Malaysia, Philippines, and Seychelles is notified,” it said.

The allocated quantities for the respective countries are as follows: Nepal (95,000 tonnes), Cameroon (190,000 tonnes), Cote D’ Ivore (142,000 tonnes), Guinea (142,000 tonnes), Malaysia (170,000 tonnes), Philippines (295,000 tonnes), and Seychelles (800 tonnes).

Govt extends curbs on sugar exports beyond October 31 to boost domestic supply

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October 19, 2023

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The government on Wednesday again extended restrictions on sugar exports beyond October 31 this year, a move aimed at increasing the availability of the commodity in the domestic market during the festive season.

Earlier, the restrictions were imposed until October 31 of this year.

“Restriction on export of sugar (raw sugar, white sugar, refined sugar, and organic sugar) is extended beyond October 31, 2023. Other conditions will remain unchanged,” the directorate general of foreign trade (DGFT) said in a notification.

Nevertheless, it should be noted that these limitations will not apply to sugar intended for export to the European Union and the United States within the scope of CXL and TRQ duty concession quotas. A defined quantity of sugar is exported to these regions through CXL and TRQ (tariff rate quotas) mechanisms.

India holds the title of the world’s leading sugar producer and the second-largest sugar exporter. To export sugar, which falls under the restricted category, an exporter must obtain a license or government permission.

The government has been continuously monitoring the situation in the sugar sector, including production, consumption, exports, and price trends in wholesale and retail markets all over the country.

Starbucks adapts to growing competition in China with launch of new smaller cup size

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October 19, 2023

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In an effort to draw in more customers amidst increasing competition in China, Starbucks, the prominent American coffee chain, has introduced a new, smaller cup size, targeting its second-largest market.

Launched on Tuesday across its network of 6,500 stores, the 259ml cup is a key addition to Starbucks’ recently unveiled “Intenso Collection.” This cup allows for a higher espresso-to-milk or cream ratio, intensifying the flavor compared to the larger cup sizes. It’s available for 33 yuan ($4.51).

It is approximately one-third smaller than the 355ml “tall” cup, which begins at a base price of 30 yuan, yet larger than the company’s most compact “short” size, which holds 236 ml.

According to Ben Cavender, who serves as the Managing Director and leads the strategy division at China Market Research Group, Starbucks’ latest product launch is a strategic move aimed at consistently providing “innovative options” in the market, specifically targeting dedicated coffee enthusiasts.

“These probably won’t appeal to everyone but are a relatively easy line extension to implement,” he said.

This development coincides with Starbucks’ domestic competitors, like Luckin Coffee and Manner Coffee, which is backed by ByteDance, aggressively expanding and swiftly introducing new products.

These brands have garnered considerable consumer attention through partnerships, including Manner Coffee’s collaboration with the renowned French luxury brand Louis Vuitton and Luckin’s introduction of a liquor-infused latte in conjunction with China’s Kweichow Moutai. An insider familiar with the situation revealed that Starbucks’ novel cup size, a debut in China, is presently exclusive to mainland China, with its availability abroad contingent upon customer feedback.

Back in August, Starbucks reported a notable resurgence in China, as the easing of COVID restrictions led to increased demand in the catering and tourism sectors. The company has set a target of expanding its store count in the country to 9,000 by the year 2025.

Cabinet approves up to 9% hike in MSP of wheat, other major Rabi crops

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October 19, 2023

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The Cabinet Committee of Economic Affairs on Wednesday approved the increase of up to 9 per cent in the Minimum Support Prices (MSP) for all mandated Rabi crops for marketing season 2024-25.

The maximum MSP raise has been granted for lentil (masur) at INR 425 per quintal, with rapeseed and mustard receiving an increase of INR 200 per quintal.

An increase of INR 150 per quintal has been sanctioned for both wheat and safflower.

Barley will see an increase of INR 115 per quintal, while gram will receive an approved raise of INR 105 per quintal.

The MSP hike for the prescribed Rabi crops for the marketing season 2024-25 aligns with the commitment made in the Union Budget of 2018-19, which aimed to set the MSP at a minimum of 1.5 times the All-India weighted average cost of production.

The anticipated margin over the All-India weighted average cost of production stands at 102 percent for wheat, followed by 98 percent for rapeseed & mustard, 89 percent for lentil, 60 percent for gram, 60 percent for barley, and 52 percent for safflower.

The heightened MSP for Rabi crops will guarantee profitable returns to farmers and encourage the diversification of crops.

India’s foodgrain production hits record high of 329.7 million tonnes for 2022-23 season

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October 19, 2023

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According to the latest data released by the Ministry of Agriculture and Farmers Welfare, India has achieved a remarkable record in foodgrain production for the 2022-23 season. The total foodgrain production is estimated to be 3296.87 lakh tonnes, marking a significant increase of 140.71 lakh tonnes compared to the 3156.16 lakh tonnes produced during the previous year (2021-22).

In the 2022-23 season, foodgrain production has exceeded the five-year average (2017-18 to 2021-22) by an impressive 308.69 lakh tonnes.

The rice production for the 2022-23 season is projected to reach an all-time high of 1357.55 lakh tonnes, which is 62.84 lakh tonnes more than the 1294.71 lakh tonnes produced in the previous year.

The wheat production for the 2022-23 season is anticipated to reach a historic high of 1105.54 lakh tonnes, representing an increase of 28.12 lakh tonnes compared to the previous year’s wheat production of 1077.42 lakh tonnes.

The production of Nutri/Coarse Cereals is projected to be 573.19 lakh tonnes for the 2022-23 season, showing a notable increase of 62.18 lakh tonnes compared to the 511.01 lakh tonnes produced in the previous year (2021-22).

The total production of pulses for the 2022-23 season is expected to be 260.58 lakh tonnes, reflecting an increase of 14.02 lakh tonnes compared to the average pulses production of 246.56 lakh tonnes over the last five years.

Total Oilseeds production in the country during 2022-23 is estimated at record 413.55 Lakh tonnes which is higher by 33.92 Lakh tonnes than the oilseed production during 2021-22.

Total production of Sugarcane in the country during 2022-23 is estimated at 4905.33 Lakh tonnes. The production of sugarcane during 2022-23 is higher by 511.08 Lakh tonnes than the previous year sugarcane production of 4394.25 Lakh tonnes.

Production of Cotton is estimated at 336.60 Lakh bales (of 170 kg each) which is higher by 25.42 Lakh bales than the previous year’s cotton production.

Production of Jute & Mesta is estimated at 93.92 Lakh bales (of 180 kg each).

SLMG Beverages launches 100% recycled PET bottles for Coca-Cola in India

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October 19, 2023

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SLMG Beverages, a prominent member of the Ladhani Group and an authorized franchise bottler for Coca-Cola in India, unveiled a groundbreaking initiative on Wednesday by introducing 100% recycled PET bottles for the renowned cola brand.

In a statement, the company emphasized that this strategic leap not only underscores SLMG’s commitment to environmental responsibility but also marks a significant turning point in the beverage industry’s trajectory within India.

“By significantly limiting its consumption of virgin PET, SLMG Beverages is reducing its carbon footprint, seamlessly aligning with the Indian government’s ambitious target of 25 per cent recycled resin by April 2025 PET,” it said.

The company stated that it provides 90% of Coca-Cola bottles in Uttar Pradesh, a complete 100% supply in Uttarakhand, and also maintains a presence in Bihar and Madhya Pradesh. In Uttar Pradesh, it operates seven plants with a daily production capacity of 41 crore bottles.

The company serves over 300 million individuals through a network of 1.5 million outlets and a distribution system comprising more than 1,500 distributors, extending to rural areas. It has achieved remarkable success with its bottling franchises across all four states, encompassing the entire northern region of India.

“The introduction of Coca-Cola bottles made from 100 per cent recycled food-grade PET is a remarkable milestone in the beverage industry that underscores SLMG Beverages’ resolute commitment to environmental stewardship,” said S N Ladhani, Chairman and Managing Director of SLMG Beverages.

The recycled PET bottles will be available in 250 ml and 750 ml pack sizes and invite consumers to actively participate in this environmentally conscious initiative.

Made from 100 per cent food-grade PET (excluding caps and labels), the bottles feature the “Recycle Me Again” prompt, which can be read on the packaging.

Ladhani said, “When Coca Cola re-entered the Indian market, we produced the first Coca-Cola bottle in India then and are now proud to be the first bottler in India to launch the Coca-Cola brand in 100 per cent recyclable PET bottles.” Vivek Ladhani, the executive director at SLMG Beverages, said PET plastic bottles have value beyond their first life. “Recycled PET is a big step in the right direction towards making the circular economy for plastic a reality in India,” he said.

SLMG Beverages officials earlier this week met with UP government’s chief secretary Durga Shankar Mishra in Lucknow.

“We encourage all food industries in the state of Uttar Pradesh that use plastics to use proven and approved technologies so that the plastic can be recycled and reused for direct food packaging to help reduce PET bottle littering,” the top UP bureaucrat said.

SLMG Beverages recently announced that it aims to achieve a turnover of Rs 10,000 million by 2025, and plans to open two new plants this year and triple its capacity by 2030, to meet the growing demand for beverages in India.

SLMG Beverages has been associated with Coca-Cola for more than 30 years, according to the statement.

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