Food and grocery delivery platforms reduce inventory ahead of G-20 Summit restrictions in Delhi

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September 7, 2023

Food and grocery delivery platform (Representative Image)

Cloud kitchen operators and quick commerce platforms in Delhi are actively trimming their inventory levels within their dark stores due to the three-day restrictions imposed for the G-20 Summit. Concurrently, they are engaged in ongoing efforts to persuade the authorities to exempt delivery personnel from these restrictions.

According to industry insiders, these companies are anticipating a potential business downturn leading up to the closure period from September 8-10 due to the anticipated traffic restrictions in and around central Delhi.

“We are stocking our dark stores with fewer items for the coming week,” an executive at a quick commerce platform said on condition of anonymity. “Delivery of groceries like milk and vegetables has been allowed but there is a worry that delivery personnel might face difficulties in moving around.”

The person said “movement of delivery people as well as demand is getting impacted” due to the restrictions.

In the capital, food and grocery delivery platforms such as Zomato, Swiggy, Blinkit, Zepto, Swiggy Instamart, and BigBasket’s BB Now are in operation.

“Business will be hit,” Rashmi Daga, Founder and chief executive of cloud kitchen platform Freshmenu, said.

“We have three kitchens in the restricted areas, which will be shut during the three days. But even before that we are expecting lesser revenues because traffic restrictions keep happening,” she said.

“At least, this hasn’t come as a shock, so there is time to prepare for it to reduce wastage,” Daga added.

Restaurants and food and grocery delivery companies are persistently engaging in discussions with the Delhi government and Delhi Police to secure exemptions for food delivery personnel from the imposed restrictions.

Nonetheless, an individual familiar with the talks mentioned that the city administration and police have hinted at potential security issues associated with allowing unrestricted movement of delivery personnel within the controlled areas.

“It will be a loss of revenue,” the person said. “Unlike ecommerce or online retail, for which the revenue gets postponed, people not ordering food during those days will not order more once they’re back.”

On Monday, SnackFax had highlighted that food delivery platforms, restaurant chains, and food services companies had appealed to the authorities to categorize deliveries as “essential services,” akin to the measures implemented during the pandemic lockdowns, for the duration of the G20 Summit.

In a public notice, the Delhi Police have clarified that there are “no restrictions on the movement of essential commodities entering through Delhi borders.” However, they have not issued any specific directives regarding the allowance of food deliveries.

The city’s traffic police have issued a warning to commuters, advising them to refrain from traveling within the restricted areas and suggesting the use of metro rail services instead. Additionally, it’s worth noting that all central government offices in the national capital will remain closed from September 8 to September 10.

Apart from the anticipated disruptions to food and grocery deliveries and dining out, it is also expected that ecommerce deliveries will face delays within the restricted zones over the course of the three-day period.

Redefining snacking: Raman Greens launches nutritious millet-based snacks

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September 7, 2023

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Raman Greens warmly welcomes snack aficionados to embark on a delightful voyage where wellness seamlessly intertwines with indulgence! In celebration of the International Year of Millet, the brand is thrilled to unveil an endeavor that pledges to revolutionize your snacking routines. Raman Greens is dedicated to motivating individuals to adopt healthier options without sacrificing flavor, and they have thoughtfully crafted an assortment of nourishing and delightful offerings for your enjoyment.

Demonstrating an unshakable dedication to advancing sustainable methods and uplifting local farmers, Raman Greens has embarked on a commendable mission to advocate for the utilization of indigenous millets, particularly the revered Kodo and Kutki varieties procured from the tribal region of Dindori in Madhya Pradesh, India. Millets, inherently gluten-free, provide a substantial boost to digestive well-being. They are replete with dietary fiber and protein, bolstering immunity, and are brimming with antioxidants, rendering them an exceptional dietary selection.

Designed to cultivate a healthier and more sustainable way of life, Raman Greens has curated a selection of remarkable value-added products that encourage individuals to prioritize their health and well-being. In their commitment to endorsing local farmers and embracing a more environmentally conscious lifestyle, the brand remains resolute in delivering exceptional goods that place your health and overall wellness at the forefront. Raman Greens stands as a symbol of comprehensive well-being. Through their advocacy of millet cultivation, they aspire to contribute to the betterment of local farmers and enhance their livelihoods. By partnering with dedicated farmers, Raman Greens is actively creating opportunities for their prosperity while championing sustainable agricultural practices.

Dr. Siddharth Chaturvedi, Executive VP at Raman Greens stated, “We believe that snack time should be a celebration of nourishment and flavor. With Raman Greens, we aspire to motivate individuals to make health-conscious choices without sacrificing the joy of snacking.”

Embark on this extraordinary voyage towards making healthier snack choices and play a part in enhancing the livelihoods of local farmers, all while relishing the wholesome essence of millets. Raman Greens’ millet-infused snacks can now be found on the shelves of retail stores, and you can also discover their product range online at ramangreens.com.

Furthermore, Raman Greens has unveiled a varied selection of corporate gift hampers featuring millet-based products, which can be reserved through their website.

PepsiCo India turns up the heat with new Kurkure Sizzlin’ Hot flavor!

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September 7, 2023

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PepsiCo India has broadened the range of flavors available for its snack brand Kurkure with the introduction of Kurkure Sizzlin’ Hot.

PepsiCo India has announced that the latest flavor draws inspiration from the widely adored Flamin’ Hot concept worldwide, delivering a unique and irresistible flavor experience by combining the essence of ‘chilli ka tadka’ with the signature crunch of Kurkure.

According to the official company statement, Kurkure Sizzlin’ Hot is packed with the fiery kick of roasted red chili, offering a spicy and satisfying crunch that leaves a lasting sensation of heat with each bite.

Aastha Bhasin, Category Lead-Kurkure, PepsiCo India, said, “The launch of Kurkure Sizzlin’ Hot is a testament to our commitment to constantly innovate and provide Indian consumers with the most flavourful snacking experiences. As a brand that celebrates the use of spices, our latest offering is an ode to the extreme teekha lovers of India. The all-new Kurkure Sizzlin’ Hot really packs in a punch and offers everything the Indian consumer craves for. Get ready for an ultimate ‘teekha’ experience that brings a sensational hit of chilli with Kurkure’s chatpata crunch!”

Kurkure Sizzlin’ Hot can now be purchased for INR 10 or INR 20 on various retail and e-commerce platforms throughout India, while INR 5 packs are accessible in specific regions.

PepsiCo to invest INR 778 Crore in Assam for first food manufacturing plant, paving the way for North-East expansion

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September 7, 2023

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PepsiCo, a prominent beverage and food maker, has announced its commitment to invest INR 778 crore to establish its first food manufacturing plant in Nalbari, Assam. Spanning across 44.2 acres, this state-of-the-art plant is projected to commence operations in 2025. The initiative is expected to generate both direct and indirect employment opportunities for 500 individuals from the region of Assam, as conveyed in a statement released by PepsiCo on Wednesday.

Marking a significant milestone, the company, renowned for its extensive portfolio of beverage and food brands such as Pepsi, 7UP, Mountain Dew, Slice, Tropicana, Mirinda, Lay’s, Kurkure, Uncle Chips, and Quaker Oats, is making its inaugural investment in the North Eastern region.

PepsiCo India has entered into a three-way Memorandum of Understanding (MoU) with the Assam Skill Development Mission and the Directorate of Employment & Craftsman Training. This partnership aims to promote women’s empowerment and establish a secure and encouraging work environment, ultimately bolstering women’s employability in the region.

“The plant targets to intake 100 per cent diverse talent and aiming atleast 75 per cent women representation and intends to set up its first Community Learning Centre at Women’s ITI campus, Nalbari to upskill women over the next two years,” it said.

The new Nalbari greenfield facility will serve as a catalyst in PepsiCo’s ongoing commitment to supporting and enhancing the livelihoods of more than 5,000 farmers in the coming years.

PepsiCo India has disclosed that the facility will additionally offer farmers growth prospects through technology adoption, access to top-quality seeds, and affordable machinery. The company’s objective is to procure 50,000 tonnes of potatoes from the state to produce its renowned Lay’s chips brand.

Furthermore, it was noted that the plant will stimulate the need for an additional 60,000 tonnes of cold storage capacity in the upcoming years.

“India is amongst the fastest growing markets for PepsiCo in Africa, Middle East and South Asia (AMESA) region, and we are committed to invest in the nation to build capacity. Our first foods manufacturing plant in Assam is a testament of our long-term vision and unwavering support to the economic growth of the country by creating an equitable and sustainable ecosystem,” PepsiCo CEO – Africa, Middle East & South Asia Eugene Willemsen said.

This plant is poised to integrate the finest elements of PepsiCo’s global expertise, while contributing to Assam’s holistic advancement, he said.

PepsiCo India President Ahmed ElSheikh said, “In alignment with the government of India’s Self-Reliant India vision (Atmanirbhar vision), our investment in the greenfield facility in Assam stands as a significant milestone in our pursuit of this goal. Through the creation of employment opportunities and by empowering the farming community, our aim is to support the government’s drive for self-sufficiency in potato production.”

A Bhumi Pujan ceremony was organised by PepsiCo India. Assam Chief Minister Himanta Biswa Sarma along with key senior dignitaries from the state government attended the function, said a statement.

PepsiCo entered India in 1989 and has grown to become one of the largest food and beverage businesses in India.

India’s thriving market offers ample opportunities for domestic and British scotch whiskies: Scotch Whisky Association

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September 7, 2023

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On Wednesday, an industry association pointed out that India’s robust long-term economic growth and its domestic demographic makeup provide ample opportunities for both Indian and Scotch whiskies to thrive in the world’s largest whisky market.

The Scotch Whisky Association (SWA) additionally conveyed that the potential decrease in import tariffs as part of a free trade agreement between New Delhi and London would not only enhance the export prospects of Scotch whisky from the UK but also usher in increased variety for consumers, thanks to the entry of smaller producers into the market.

India and the UK are currently in discussions to establish a free trade agreement.

It will also lead to reduced import costs, benefiting India-Made Foreign Liquor (IMFL) brands.

The association also said that imported Scotch whisky will pose “very little” direct competition to local Indian whisky because of its small size here.

SWA stated that a significant proportion of Scotch whisky exports to India is in bulk, with bottled versions accounting for only 24 percent of total exports. Moreover, the majority of Scotch whisky sold in India is locally bottled.

India and the UK are continuing their negotiations to iron out differences in the proposed free trade agreement (FTA).

Following the G20 Trade and Investment Ministers Meeting (TIMM) at Jaipur, the progress of the negotiations was reviewed by Commerce and Industry Minister Piyush Goyal and UK’s Secretary of State for Trade Kemi Badenoch on August 26.

As New Delhi gears to host the 18th G20 Heads of State and Government Summit, SWA and International Spirits and Wines Association of India (ISWAI) jointly look forward to a successful India-UK Free Trade Agreement (FTA).

Over substantial reduction in India’s 150 per cent tariff on import of Scotch whisky, SWA CEO Mark Kent said it will pose very little direct competition to Indian whisky.

“Demographics and the strong prospects for India’s long-term economic growth mean there is plenty of room for Indian and Scotch whiskies to prosper in the world’s biggest whisky market. Only 24 per cent of exports to India are bottled in Scotland. Most Scotch whisky sold in India is bottled locally, while bulk Scotch whisky is an important ingredient in Indian whisky,” he said.

As the IMFL and Scotch categories have grown, so has the investment in facilities in India and the jobs and growth that delivers, both in the tourism and hospitality industries, he added.

Scotch whisky is the world’s most traded spirit, with worldwide consumption of 1.3 billion bottles.

However, it is less than half the volume of Indian whisky production.

G20 Summit spurs liquor companies to rely on in-home stocking as Delhi prepares for weekend shutdown

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September 7, 2023

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Liquor companies are optimistic that residents of Delhi will choose to enjoy their beverages at home as the city prepares to close markets and malls for a three-day period this weekend.

A significant decline in sales is expected for bars and restaurants due to the closure of all commercial establishments in the New Delhi district from September 8 to 10. However, industry executives are optimistic that this shortfall could be offset by heightened consumption in hotels hosting a substantial number of world leaders and delegates.

“While stocking up is possible at the hotels which are largely booked because of the G20 summit, small to medium restaurants may not see many customers as people would avoid venturing out during this period,” said Nita Kapoor, chief executive officer of International Spirits and Wines Association of India (ISWAI). She expects a jump in at-home alcobev consumption as “people are expected to spend the long weekend at home with friends and family… due to traffic disruptions”.

Nevertheless, executives noted that a significant number of individuals are planning to leave the city during the extended weekend, commencing with Janmashtami on Thursday, potentially affecting sales.

“It is anticipated that HORECA (hotels, restaurants and cafes) sales will experience a standstill,” said Amar Sinha, chief operating officer of Radico Khaitan, maker of 8PM whisky and Magic Moments vodka.

“For those who choose to remain in the city (during the weekend), they are likely to stock up on their tipple in advance.”

YouMee expands its culinary delights to DLF Avenue in Saket, offering a multifaceted Asian experience

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September 7, 2023

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YouMee is delighted to unveil its latest establishment at Commons, DLF Avenue in Saket. This expansion signifies yet another achievement for the restaurant brand, as it persistently introduces its splendid and multifaceted Asian culinary offerings to passionate food lovers right in the heart of the city.

Nestled in the lively heart of Commons at DLF Avenue, the newly opened branch has meticulously crafted a menu showcasing a diverse selection of Asian delicacies.

“We are excited to bring the YouMee experience to the vibrant neighbourhood of Saket,” said Rohit Aggarwal, Co-Founder and managing director of Lite Bite Foods. “Our team has put in a lot of effort to ensure that this new branch captures the essence of our brand while offering a wholesome experience for our valued patrons.”

Visitors can anticipate a contemporary yet inviting ambiance at the DLF Avenue location, thoughtfully designed to create a warm and welcoming environment for families, friends, and solo diners seeking a memorable culinary journey.

Tata Consumer Products and Haldiram’s deny reports of potential stake acquisition

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September 7, 2023

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Tata Consumer Products Ltd (TCPL) and Halidram’s jointly announced on Wednesday that they are not currently engaged in any discussions regarding the potential acquisition of a 51 percent stake in the prominent snacks maker and restaurant operator.

As per reports, the FMCG division of the Tata Group is currently in negotiations with Haldiram’s to acquire a controlling stake; however, they express reservations about a steep enterprise valuation.

Haldiram’s stands as a prominent producer of snacks and operator of restaurants.

“The company is not in negotiations as reported” to acquire Haldiram’s,” TCPL said in a regulatory filing.

The submission was made in reply to queries raised by both the NSE and the BSE seeking clarification regarding the reports.

According to a company spokesperson, “Tata Consumer Products does not comment on market speculation.”

Upon reaching out for a response, the management of Haldiram’s opted not to provide any comments on the issue.

Later issuing a statement, Halidram’s said, “We categorically deny recent reports of a 51 per cent stake sale and wish to clarify that we are not engaged in any discussions with Tata Consumer Products.”

TCPL possesses a portfolio of brands that encompasses products like Tata Salt, Tata Tea, Tetley, Tata Coffee, Tata Soulfull, and Eight O’clock within the realm of tea, coffee, and beverages. Additionally, they also offer Himalayan and Gluco+ in the liquid beverages category.

The company is actively pursuing growth and diversification within the foods and beverages sector.

Swiggy aims for promising IPO in 2024, banking on Instamart’s profitability

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September 7, 2023

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Swiggy’s intention to go public appears promising, given the strong profitability of its food delivery operations. Furthermore, the company has established a profit objective for its grocery delivery division, known as Swiggy Instamart.

Following intense competition in the rapid commerce sector for approximately two years, it has come to light, through insights from three well-informed sources, that discounting and expenses related to acquiring consumers are beginning to stabilize.

“Swiggy has been witnessing significant improvement in Instamart’s economics in the July-September quarter,” said one of the sources requesting anonymity. “Encouraged by the level of efficiency [consumer acquisition cost and repeat purchases], the company has set an internal target to make Instamart profitable by March-April 2024.”

The profitability of Instamart is expected to be the catalyst for the company’s anticipated listing in August-September 2024. Entrackr was the initial source to report on Swiggy’s plans for a public listing and the profitability of its food delivery segment back in February.

According to a report by Reuters, Swiggy has extended invitations to JP Morgan, Morgan Stanley, and Bank of America to prepare the company for its upcoming IPO next month.

“If the company manages to bring Swiggy Instamart in [the green], it will be a sort of turnaround as it bled heavily in the past year,” said the second source who also wished not to be named.

No immediate response was received from Swiggy in response to the queries that were sent.

Swiggy witnessed a significant increase in losses, soaring by 80% to reach $545 million in FY23, primarily attributed to substantial investments in its grocery business, as indicated by Prosus, a major backer, in their annual report. Meanwhile, the company’s earnings in the last fiscal year (FY23) reached approximately $900 million. In FY22, Instamart contributed INR 2,036 crore in revenue to Swiggy’s total income of INR 5,705 crore.

Insiders indicate that the company is currently in the process of determining its appropriate valuation for the public market, with expectations that it is unlikely to accept a valuation lower than the $11 billion mark. According to TheKredible, the firm achieved a valuation of $10.7 billion during its most recent funding round in February 2022, securing $700 million in funding.

When a grocery or rapid commerce startup focuses on achieving profitability, it typically signifies two key factors. First, it has reached a point where it deems its level of repeat usage as sustainable, allowing it to stabilize its operations before seeking new users. Second, the expenses associated with acquiring new users from this point forward are no longer sustainable. Embracing this reality and aiming for profitability often results in a substantial reduction in costs related to user acquisition and marketing. If profitability isn’t achieved in a reasonable timeframe, the startup may need to explore options such as securing additional funding or potentially seeking a buyer in the future.

No matter its level of funding, Swiggy is the kind of startup that genuinely has the opportunity for an IPO, thanks to its substantial market presence. It is expected that this move will become feasible in FY25, affording the company a brief window to maintain its growth momentum (which significantly influences valuations) without experiencing a sudden decline in its pursuit of profitability.

Mumbai-based startup Madmix valued at INR 12 Crores following successful pre-seed funding

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September 7, 2023

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Madmix, a Mumbai-based startup specializing in healthy food, formerly known as Daily Staple, and owned and operated by Mel Sante Food Production Pvt. Ltd., has achieved a significant milestone by successfully securing a substantial investment during its pre-seed funding round. The company is now valued at approximately INR 12 crores, with Prime Securities leading the investment round. Notable investors, including Authum Investments and Team India Managers, also participated in this funding endeavor.

The capital raised will be allocated towards enhancing marketing initiatives, expanding the sales team, and fueling future product development endeavors.

This well-timed infusion of capital is poised to propel Madmix into a transformative phase of growth and potential, following two years of self-funding. Despite operating with limited financial resources, the company successfully extended its global footprint, entering markets in Nepal, Hong Kong, New Zealand, and the USA. Furthermore, it has left a substantial mark in India, with its products now accessible in more than 650 stores across the country.

Moreover, coupled with Madmix’s recent rebranding and forward-looking strategy, the company is positioned to reach new heights in the realm of health-conscious and pioneering food offerings.

Madmix offers a variety of ready-to-eat snacks crafted from millets, such as jowar, featuring a selection of puffs available in five distinct flavors. Additionally, they have introduced a millet-based ready-to-cook product line, encompassing dosa, idli, chilla, bread mix, and flour mix. Madmix is dedicated to replacing unhealthy dietary choices with wholesome alternatives, and their ongoing commitment to innovation drives the development of new and nutritious products.

Gaurav Palrecha, Founder & Director, Madmix said, “We’re thrilled by the incredible support our investors have shown – it’s a true validation of our journey into the realm of madness. Consumers are becoming more conscious and are making healthy choices and we want to support them in their journey. These funds will enable us to achieve our growth numbers and we’re just getting started!“

Mr. Apurva Doshi, Sr Vice President, Equity Capital Markets, Prime Securities Limited said, “In India, snacking is more than just what we eat, it is a tradition and an important part of our cultural identity, as quoted by report ‘State of Snacking Report: A Global Consumer Trend Study’. We think the Company is revolutionising the idea of snacking with its ready-to-eat snacks and ready-to-cook range. We strongly believe in the Company’s prospects and this funding will aid the Company as it marches on in its growth journey.”

Mrs. Niru Kanodia, Director, Team India Managers Limited said, “The idea of mindful and healthy eating will drive the demand for snacking in India. We firmly believe that Madmix is rightly placed and offers balanced nutrition in every product combining with health and taste.”

Madmix, a health-focused startup with a mission to offer nutritious and delectable food items at affordable prices, is deeply committed to inventing distinctive and delightful flavors. Their team of experts is devoted to crafting innovative taste experiences that will captivate and satisfy your palate. Madmix consistently explores fresh combinations and techniques to bring you exciting and unforgettable flavors. The company’s ultimate goal is to ensure customer happiness and contentment with their products.

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