India’s edible oil imports experienced a 19% decline in September compared to the previous month’s record high. This drop was primarily attributed to a 26% reduction in palm oil purchases by refiners, driven by soaring inventory levels, according to information provided by five industry dealers to Reuters.
Reduced procurement by the world’s largest importer of vegetable oils may result in increased palm oil inventories in major producing countries such as Indonesia and Malaysia, putting downward pressure on benchmark futures prices.
Dealers’ estimates indicate that India’s total edible oil imports for September dropped to 1.5 million metric tons, with palm oil accounting for 830,000 tons of this total.
“Edible oil inventories have gone up to all-time high levels because of record imports in July and August,” said Rajesh Patel, managing partner at edible oil trader and broker GGN Research.
“That’s why buyers are taking a pause now.”
The trade body, Solvent Extractors’ Association of India (SEA), reported that domestic vegetable oil stocks surged to 3.7 million tons as of September 1, compared to 2.4 million tons a year ago. SEA is expected to release its data on September imports around mid-October.
Sunflower oil imports witnessed a 15% decline from the previous month, amounting to 310,000 tons, while soyoil imports, on the other hand, inched up by 2% to reach 365,000 tons, as estimated by dealers.
India primarily sources its palm oil from Indonesia, Malaysia, and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia, and Ukraine.
“Drier weather in June and August, coupled with a slow start to planting, raised concerns about domestic oilseeds production,” said Ashwini Bansod, head of commodities research at Phillip Capital India Pvt Ltd.
“This led to higher import demand in July and August ahead of festivals.”
The analyst also mentioned that the improved rainfall in September alleviated concerns of a more significant drop in oilseed production.
August marked the driest month on record, experiencing a 36% deficit in rainfall. However, in September, the situation improved significantly, with India receiving 13% more rainfall than the usual average.
According to Patel from GGN Research, there is a possibility of further declines in edible oil imports in October because the existing stocks are more than sufficient to meet the demand during the festival season.
IHG Hotels & Resorts, a prominent global hotel company, recently entered into a management agreement with Saryu Properties Hotels Pvt Ltd (a part of the K Raheja Group Family) to transform two hotels in Mumbai. These properties will be rebranded as voco Mumbai Powai Hotel & Convention Centre and Holiday Inn Express & Suites – Mumbai Powai.
This signing will mark the debut of Intercontinental’s voco brand in Western India and bring a new Holiday Inn Express & Suites to Mumbai, India (Bharat).
Commenting on the signings, Sudeep Jain, Managing Director, South-West Asia, IHG Hotels & Resorts said, “We are thrilled to announce the signing of two hotels in Mumbai, in partnership with Saryu Properties & Hotels Pvt Ltd. The city offers a wealth of opportunities for the hospitality sector, and we are excited to contribute to its economic growth.”
Holiday Inn Express & Suites Mumbai Powai and Voco Mumbai Powai Hotel & Convention Centre are presently in the development stage, with planned openings in Q4 2023-2024 and Q2 2024-2025, respectively.
Both hotels will enjoy a strategic positioning within Powai, a thriving start-up hub in the city, making them attractive to a wide range of business and leisure travelers. Powai boasts numerous educational institutions, the Hiranandani Business Park, SEZ Parks, and various commercial complexes.
The location is conveniently situated just a short drive away from the Chhatrapati Shivaji Maharaj International Airport, ensuring excellent accessibility. Upon their inauguration, both hotels can anticipate significant demand from neighboring businesses, corporations, and IT companies.
Nikhil K Raheja, Managing Director, SPHPL shared “We Believe this Partnership will assist us to deliver World Class Hospitality in Powai, Mumbai. Over the years, we have seen the growth of the locality and the change in dynamics with the New International Airport, Metro proximity and the Proposed Aarey Development. This signing is a testament to IHG’s commitment to grow its footprint in India by bringing the right brands to the right markets.”
Marico reported that the demand conditions in the September quarter closely resembled the patterns seen in the previous quarter. Challenges such as increasing food prices and irregular rainfall distribution in certain areas appeared to hinder the expected improvement in rural demand.
The producer of Saffola and Parachute products reported that domestic sales volumes experienced modest year-on-year growth in the low single digits. Additionally, the company continued to observe positive trends in product demand, market share, and market penetration across its key product lines.
“Consumption trends, particularly in rural, are expected to improve in H2 owing to retail inflation levels staying within RBI’s target range, hike in MSPs, healthy sowing season, easing liquidity pressures and government spending,” Marico said in its quarterly earnings update
Regarding critical inputs, copra and edible oil prices remained within a favorable range, although the latter displayed occasional volatility. Crude derivatives remained stable, with a tendency towards upward movement. The company affirmed that there would be a substantial year-on-year increase in gross margins.
Although expenditures on advertising and promotion were notably increased to support the strategic development of both core and new product categories, the company anticipates a healthy expansion in operating profit margins, ultimately resulting in low double-digit growth in operating profit.
“We expect to maintain an improving trend across key performance parameters in H2, supported by a gradual pickup in volume and topline growth in the domestic business and healthy momentum in the international business, while the full-year margin guidance remains intact,” Marico’s update added.
Reliance Retail Ventures Ltd (RRVL) is currently in talks about a comprehensive strategy that encompasses an additional divestment of $250-300 million within the current year. This is in addition to the recent stake dilution in favor of the Qatar Investment Authority (QIA) and the US-based private equity fund KKR.
Sources familiar with the discussions indicate that following this divestment, RRVL plans to make a third stake sale offer to investors next year, at a higher valuation. This will precede its anticipated initial public offering (IPO) in 2025.
In August of this year, RRVL successfully divested 0.99 percent of its stake in favor of the Qatar Investment Authority at a value of $0.99 billion (equivalent to INR 8,278 crore). This transaction has nearly doubled the company’s valuation, increasing it from INR 4.21 trillion to INR 8.27 trillion.
Additionally, RRVL has entered into an agreement with KKR, an existing investor, who has invested an additional INR 2,069.50 crore. This has increased KKR’s stake in the company from 1.17 percent to 1.42 percent.
A top source aware of the development said, “Reliance Retail has offered all their key investors participation in this round too. What is under discussion is to divest more again in 2024 at a higher valuation before preparing for an IPO.”
Sources have indicated that due to upcoming elections in both India and the US next year, the prevailing sentiment is to abstain from pursuing an IPO in 2024 and instead aim for a public offering in the subsequent year.
A spokesperson from Reliance Industries declined to provide comments regarding the ongoing discussion of the plan.
RRVL also boasts investments from various other international stakeholders, including sovereign funds such as Saudi Arabia’s Public Investment Fund, the Abu Dhabi Investment Authority, Mubadala, and GIC Singapore. Additionally, TPG, Silverlake, and General Atlantic are among the global investors who contributed funds in 2020 and have seen their valuations almost double by 2023.
The divestment of funds in Reliance Retail constitutes 11.31 percent of the total stake, with investors contributing INR 57,562 crore for this acquisition.
In FY23, Reliance Retail recorded annual revenues exceeding INR 2.6 trillion, reflecting a substantial increase of 30 percent, while also achieving profits totaling INR 9,181 crore.
With its current valuation, Reliance Retail ranks among the top 10 retailers globally and stands as one of the four largest retailers in the country. In FY23, it recorded a remarkable 780 million footfalls, and its registered customer base expanded to nearly 250 million. This extensive reach allows Reliance Retail to serve and provide value to approximately 30 percent of the addressable population in the country, solidifying its position among the world’s top 10 most frequented retailers.
In FY23, the digital and new commerce divisions of the company achieved revenues of INR 50,000 crore, constituting one-fifth of its total sales. Reliance Retail has made substantial investments exceeding $10 billion over the past two years to bolster this segment, and this commitment is evident through its extensive expansion efforts. In the first quarter of FY24 alone, the company opened 55 new stores, bringing its total store count to 18,446, encompassing a vast retail space of 70.6 million square feet.
The company operates across diverse retail sectors, including consumer electronics, fashion and lifestyle, groceries, consumer brands, as well as the Jio Mart and Milkbasket ecommerce platforms.
Numero Uno, the cherished denim brand of India, is thrilled to unveil its brand-new logo, marking a significant milestone in the brand’s journey. The fresh logo underscores our dedication to remaining dynamic, inclusive, and at the forefront of the industry, all while staying true to Numero Uno’s fundamental principles of youthfulness, casual style, modernity, innovation, and meaningful experiences.
In the constantly shifting world of fashion, Numero Uno acknowledges the importance of staying current and setting trends rather than merely trailing behind. The fresh logo emphasizes the brand’s unwavering commitment to embodying a youthful spirit that consistently connects with the vibrant energy of today’s generation.
With an approach characterized by casual, modern, and innovative elements, the brand remains resolute in providing top-notch denim wear that not only makes a bold fashion statement but also mirrors purposeful and meaningful fashion choices.
Jaiwant S Dhingra, Director of Marketing And Business Development at Numero Uno said, “Our new logo is more than just a symbol; it is a representation of our commitment to crafting denims that capture the essence of the times while staying true to our core values. We understand that staying relevant and ahead of the curve is not a mere choice; it is a pledge.”
The integration of the new logo into Numero Uno’s clothing line has ushered in a premiumization effect, greatly elevating the visual allure of the garments and imbuing them with a refined and sophisticated aesthetic. This logo encapsulates the brand’s core identity, bestowing its apparel with an aura of effortless elegance and youthful vitality, perfectly aligning with the tastes of our valued customers.
The brand-new logo will become the focal point of all Numero Uno products, both in physical stores and across digital platforms, providing customers with a contemporary and rejuvenated experience. As Numero Uno charts its course for the future, it establishes a fresh standard in denim fashion, embracing change and innovation to sustain its leadership position in the industry.
CAMLA Barcelona, the renowned fashion brand acclaimed for its unique designs and exceptional quality, is set to embark on an exciting journey with an ambitious expansion strategy. This milestone marks a significant moment in the brand’s history, promising an extended realm of fashion excellence.
CAMLA Barcelona is gearing up to open ten new exclusive retail stores, strategically aiming to enhance accessibility and cater to a diverse clientele. With a current presence in over 100 shop-in-shop retail spaces and its dedicated online platform, glamly.com, the brand’s expansion plan is carefully designed to introduce its exquisite collections to an even wider range of fashion enthusiasts.
With a strategic focus on metropolitan areas, as well as Tier I and Tier II cities throughout India, CAMLA Barcelona’s expansion strategy is finely tuned to align with the dynamic and diverse fashion preferences thriving in urban settings. This approach solidifies the connection between CAMLA Barcelona and its stakeholders, providing a glimpse of the brand’s growing influence in the Indian fashion industry.
Akhil Jain, Executive Director of Jain Amar Group said, “As CAMLA Barcelona embarks on this thrilling chapter of expansion, our commitment to delivering exceptional fashion experiences remains unwavering. Our emphasis on accessible locations, strategic collaborations, and immersive shopping encounters reflects our dedication to our customers and their evolving tastes. We are excited to introduce our designs to new markets while remaining true to our brand identity.”
CAMLA Barcelona’s extensive nationwide presence has already established it as a preferred destination for fashion enthusiasts. The brand currently operates three exclusive retail stores in strategic cities such as Indore, Chandigarh, and Ludhiana. The upcoming expansion will solidify their position as a prominent fashion authority.
The expansion journey is accelerating with CAMLA Barcelona forging key partnerships with commercial real estate collaborators. This marks a crucial step towards realizing the brand’s vision of expanding its physical presence and increasing accessibility. As part of this strategic approach, CAMLA Barcelona is actively preparing to unveil flagship stores and traditional brick-and-mortar retail locations, offering customers an immersive experience that authentically embodies the brand’s essence and unwavering commitment to vibrant fashion.
In line with this vision, CAMLA Barcelona is prepared to make a lasting impact on the fashion scene. This expansion signifies more than just an increase in CAMLA Barcelona’s presence; it reflects a dedication to crafting a more enriched and diversified story within India’s ever-evolving fashion industry.
In an age marked by digital innovation and technological advancements, the conventional supply chain landscape has undergone a remarkable transformation. Leading this paradigm shift is SupplyNote, a pioneering firm that has not only adapted to the changing times but has also played a pivotal role in reshaping the entire supply chain industry.
The journey of SupplyNote began in 2019, when a group of forward-thinking entrepreneurs recognized a pressing need within the supply chain sector. They identified an opportunity to revolutionize the way organizations manage their procurement and fulfillment operations through digitization and automation. Thus, SupplyNote was born with an unwavering mission to streamline and modernize supply chain management.
Initially conceived as a Software as a Service (SaaS) solution to tackle supply chain challenges, SupplyNote’s evolution has been nothing short of extraordinary. Today, it stands as a full-stack powerhouse, reshaping the supply chain landscape through its innovative approaches and cutting-edge technologies.
Recently, in an exclusive interview with Snackfax, Kushang, the Founder of SupplyNote, shared illuminating insights. Here are the edited excerpts from the interaction..
Snackfax: What is the challenge your brand addresses and resolves?
Kushang: At SupplyNote, our primary focus is addressing challenges within the food and beverage industry, particularly in the Indian ecosystem and globally, with a strong emphasis on India in the coming decade. Over time, we’ve developed a range of products designed to facilitate digitization and automation within the supply chain process. While our main objective centers on assisting restaurants in making informed purchasing decisions through automation in inventory management, kitchen operations, and other processes, we’ve also ventured into streamlining billing processes through our acquisition of Pacify. Pacify enables us to gather sales data, thereby automating the backend operations, not relying on rule-based systems but a comprehensive stack-based approach.
In addition to these efforts, we offer services like Supply Link, which helps large restaurants distribute their products efficiently. Furthermore, we provide a marketplace inventory platform that allows smaller restaurants to procure supplies at competitive prices, eliminating middlemen and potentially saving them 8-10% on their bottom line, thus promoting their growth.
Currently, we offer four distinct products that cater to various stages of the restaurant business. Our immediate mission is to digitize the backend of the restaurant ecosystem within the next 5 to 8 years. Beyond that, we aspire to tackle even larger and more complex challenges in different regions.
Snackfax: Could you elaborate on the technological adaptation within the food industry?
Kushang: When you look at India, it’s predominantly a standalone market. Approximately 92% of the restaurants fall into this category. Within this landscape, we have two distinct types of standalones. First, there are the classic mithaiwalas, or what we often refer to as small, family-run or pop shops that serve exceptional food in local neighborhoods. These restaurants typically have a steady cash flow, a set group of vendors, and well-established processes. They are content operating in just one or two locations.
The second category consists of street vendors, similar to what Singaporeans refer to as “hawkers.” India has a vast market of street vendors as well. This segment is substantial and dynamic. To answer your question, yes, technology adoption has been quite radical, particularly among the larger neighborhood shops where there’s a significant cash flow. These businesses have embraced point-of-sale systems, especially during the COVID-19 pandemic when they also ventured into food delivery services.
Furthermore, I’d like to highlight a noteworthy trend that has persisted and thrived in this sector: digital payments. While there was already a shift towards digital payments, the adoption of QR-based payments has been especially prominent in the smaller restaurant segment.
Snackfax: Could you elaborate on the commercial aspects, such as point-of-sale integration, and how this fits into the broader picture?
Kushang: Pricing in any industry typically mirrors the level of comfort customers have with the product or service. Some industries are more focused on understanding the return on investment (ROI), while others may be more flexible due to higher profit margins. Unfortunately, in the food industry, it tends to lean towards the former. Entrepreneurs in this sector are often cautious with their investments, preferring to evaluate ROI before committing financial resources. However, once they recognize the value, they can be quite generous in their support.
Our pricing strategy has been aligned with market competition. We offer quarterly, half-yearly, and annual subscription packages for bulk purchases, with corresponding discounts. This approach has been our standard practice. In India, the price range for our software typically falls between $150 and $200, which caters to the majority of our customers. While there is a smaller segment willing to invest more, our primary focus remains on serving the needs of the larger audience, which constitutes around 70% of our user base.
SupplyNote made a strategic move by acquiring Posify, marking a pivotal step towards becoming a comprehensive full-stack solution provider. This acquisition seamlessly integrated point-of-sale (POS) capabilities into their platform, facilitating a holistic approach to supply chain management.
In 2022, SupplyNote expanded its horizons with the introduction of a Marketplace. This groundbreaking innovation redefined how small-scale businesses accessed essential goods, offering the convenience of next-day supply deliveries.
The continuous growth and evolution of SupplyNote are anchored in their steadfast commitment to core values. Values such as Respect, Trust, Commitment, and Delivery have fostered a culture of excellence within the organization.
Looking forward, SupplyNote’s journey is still unfolding. Equipped with a full-stack solution and a thriving marketplace, they are positioned to make a significant impact in the supply chain industry. Their dedication to catering to diverse business needs, irrespective of size or industry, positions them as pioneers in the field of supply chain management.
In an era where efficiency and adaptability are critical, SupplyNote’s transformation from a SaaS provider to a full-stack solution exemplifies resilience and a steadfast mission. Their narrative stands as a compelling testament to how innovation and unwavering dedication can lead to remarkable success, reshaping entire industries and leaving an enduring mark.
Chaiiwala, the renowned Indian street food quick-service restaurant brand, has revealed its collaboration with investment firm Lote Global to facilitate its global expansion efforts.
Lote Global Investments stands as a prominent Shariah-compliant investment firm, placing strategic emphasis on Private Equity and Real Estate. Originating from a well-established international family enterprise, the company has curated a robust portfolio of distinctive investments recognized for their ethical foundation, exceptional performance, and enduring nature.
Chaiiwalla expressed its aim to establish 500 restaurants in both domestic and international locations, focusing on significant growth markets such as the USA, Canada, and the Middle East.
In order to support their ambitious global expansion, Chaiiwala is dedicated to improving its operational capacities, supply chain infrastructure, and digital offerings in the selected markets. Currently, the brand operates 90 stores worldwide, with the goal of reaching 100 by the end of the year, including new locations in the UAE and Canada.
Established in 2015, Chaiiwala brings together the rich flavors of authentic Indian street food with a Western influence. Their extensive menu caters to breakfast, lunch, dessert, and all-day cravings, featuring standout offerings such as Karak Chaii, Caramel Chaii, English-Ish Breakfast, Masala Chips, and Karachi Bun Kebab.
The brand employs diverse formats for its stores, including High Street locations, compact kiosks, and units in retail parks. Notably, Chaiiwala expanded its offerings to include a drive-thru business in the UK, providing Indian street food since the launch of its Bolton store last year.
Muhummed Ibrahim, the Chief Executive Officer of Chaiiwala, conveyed his enthusiasm regarding the collaboration and its potential to influence the Indian street food market.
Ibrahim emphasized that Lote Global’s wealth of experience and expertise in their primary target markets will be of great value to their strategic plans.
“We are pleased to welcome Lote Global to the team as we solidify our position as the leading Indian street food business and shape the Chaiiwala brand for its next global chapter. We have already laid the groundwork for our expansion in these crucial markets and have confidence that our partners will help us seize the significant global opportunity that lies ahead,” he said.
Chaiiwala received advisory services from KPMG (CF and Tax), Freeths (Legal), and GT (VDD), whereas Lote Global enlisted the expertise of PwC (Financial DD and Tax DD), Addleshaw Goddard (Legal), OC&C (Commercial DD), Cross8 (Corporate DD), and Al Maqasid (Shariah DD) as part of the deal.
Dubai-based Jumeirah Group has set its sights on an ambitious goal of doubling its property portfolio by 2030. According to Kirti Anchan, General Manager of Jumeirah Emirates Towers, the luxury hotel chain, which currently operates 27 hotels worldwide, including 12 in the United Arab Emirates, is also eager to establish a high-end hotel in India.
“We are on a growth path and we want to double our property portfolio by 2030. India being the key market for Jumeirah Hotels and Resorts, we are definitely keen (on opening a hotel in India).
“Our focus will be the ultra-luxury market. So we want to be in the right city with the right product. We are searching for such a location and hopefully we will see something soon in India,” said Anchan.
As per Anchan, the Jumeirah Group has expanded its presence in the past 18 months with the opening of new properties in Oman, the Maldives, Bahrain, and Saudi Arabia. Additionally, the group has two more properties in development in Saudi Arabia.
“High level discussions are going on. But, yes, we are interested in opening a hotel in India. We all agree to be in India in view of travellers’ curiosity and economic growth of India” Anchan told reporters at the roadshow.
Together with other senior executives from the group, he visited the city for a roadshow aimed at engaging with local tour operators and travel agents.
“The purpose of the roadshow is to expand the network within India, because this country has a big potential. Travel trend shows that Indians, irrespective of their age, are curious to travel, they want to explore more,” said Anchan.
He emphasized that the group views India as a crucial market, noting that the influx of Indian visitors to Dubai has been steadily increasing. This growth can be attributed primarily to improved air connectivity and a simplified visa process.
“In comparison to last year, Indians coming to Dubai have grown by 24 per cent. Today, 80 flights operate between Dubai and India every day and more flights are getting added every week,” he said.
According to him, there has been a surge in travel following the COVID-19 pandemic, driven by a significant increase in people’s desire to explore. He also pointed out that individuals have now prioritized the importance of global exploration over strict financial savings.
“At Jumeirah hotels in Dubai, 20 per cent customers who check-in are Indians. They come there for different reasons, such as to attend exhibitions and conferences.
“Dubai has become an extended city of India. It takes a three-hour flight from India to reach Dubai. Another reason why more Indians are visiting Dubai is the effort put in by the UAE government to ease-up visa process,” said Anchan.
Furthermore, he mentioned that among all the Indian guests staying at Jumeirah hotels worldwide, 20 percent originate from the state of Gujarat.
Coca-Cola India, the beverage manufacturer, revealed on Wednesday that it is introducing its Coca-Cola cola brand in rPET bottles, available in 250 ml and 750 ml pack sizes. These bottles are being produced in collaboration with their primary bottling partners. The company emphasized that these bottles are crafted entirely from 100% food-grade rPET, excluding caps and labels, and they aim to raise consumer awareness through this packaging innovation.
Sanjeev Agarwal, chairman of Coca-Cola’s franchise bottling partner Moon Beverages, part of MMG Group, said, “Recycled PET is a big move in the right direction to embrace plastic circularity in India. Our new bottles made with food-grade rPET are recyclable and can become another bottle giving it another life.”
The company, known for producing Sprite and Minute Maid juices, has extended its 100% rPET bottle offering to more than 40 markets. This move brings them closer to their goal of achieving bottles with 50% recycled content by the year 2030.
In a statement, Enrique Ackermann, the Vice President of Technical and Innovation for Coca-Cola India and Southwest Asia, mentioned that the company is actively engaged in boosting the recycled materials used in its packaging, expanding the utilization of refillable bottles, and enhancing the collection of packaging for recycling purposes.
Coca-Cola has announced that consumers have the option to recycle empty PET bottles through conveniently located drop-off points or reverse vending machines (RVMs). This initiative complements an existing “return and recycle” program in partnership with the e-commerce platform Zepto, which primarily focuses on collecting PET bottles directly from consumers.
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