Tata Group eyes majority control of Haldiram’s in $10 Billion valuation standoff

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September 6, 2023

Tata Group’s consumer division is currently engaged in discussions to acquire a minimum of 51% ownership in Haldiram’s, a well-known Indian snack food manufacturer. However, sources familiar with the matter have revealed that Tata Group is expressing reservations regarding the proposed valuation of $10 billion.

Should the negotiations reach a successful conclusion, this agreement would position the Indian conglomerate to directly rival both Pepsi and the retail arm of billionaire Mukesh Ambani’s Reliance group.

Haldiram’s, a widely recognized brand in India, is reportedly in discussions with private equity firms, including Bain Capital, regarding the potential sale of a 10% ownership stake, as per their sources.

According to insiders, Tata Consumer Products, the owner of the UK-based tea company Tetley and a strategic partner of Starbucks in India, is currently in talks to acquire the stake.

A third individual with firsthand knowledge of the negotiations revealed that Tata expressed an interest in acquiring a majority stake exceeding 51%. However, Tata has communicated to Haldiram’s that the proposed valuation is considerably steep.

The potential acquisition represents an exciting opportunity for Tata, the person said, adding, “Tata (Consumer) is seen as a tea company. Haldiram’s is huge in the consumer space and has a wide market share.”

The insiders shared this information under the condition of anonymity.

A representative from Tata Consumer Products stated that they “do not provide comments on market speculations.” Haldiram’s Chief Executive Krishan Kumar Chutani and Bain declined to offer any comments.

Haldiram’s, a family-operated enterprise, can trace its roots to a modest shop established in 1937. It has gained renown for its crispy “bhujia” snack, which is available for as low as 10 rupees and can be found in local mom-and-pop stores.

According to Euromonitor International, it holds approximately 13% of India’s $6.2 billion savory snack market, a share comparable to Pepsi, renowned for its Lay’s chips.

Haldiram’s snacks are additionally available in international markets such as Singapore and the United States. The company operates approximately 150 restaurants that offer a diverse range of local cuisine, sweets, and Western dishes.

One biscuit less, one lakh more: ITC Limited pays hefty price for packaging error

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September 6, 2023

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The adage “A small mistake can snowball into a major blunder” became a harsh reality for ITC Limited when they were forced to compensate a customer with INR 1 lakh due to a packaging error in a Sunfeast Marie Light biscuit packet. This incident took place approximately two years ago when P. Dillibabu, residing in MMDA Mathur, Chennai, purchased two biscuit packets in December 2021 from a Manali retail store. His intention was to use them to feed stray animals. To his disappointment, he found that one of the packets contained only fifteen biscuits instead of the advertised sixteen, as reported by the Times of India.

Dillibabu made efforts to seek clarification from both his neighborhood store and ITC but was left dissatisfied with their responses. Growing increasingly frustrated, he decided to file a formal complaint with a consumer court. In his complaint, he emphasized that each biscuit was priced at 75 paise. Upon his calculations, he pointed out that with the company producing nearly 50 lakh packets per day, ITC could potentially be causing a daily public loss of INR 29 lakh due to the discrepancy.

In its defense before the court, the FMCG giant contended that the product’s sale was based on its weight rather than the quantity of biscuits contained within. They asserted that the product was advertised with a net weight of 76 grams. However, upon inspection, the commission determined that it actually weighed only 74 grams. ITC’s legal representatives cited the Legal Metrology Rules of 2011, which permit a maximum allowable error of 4.5 grams for pre-packaged commodities. Nevertheless, the judge disagreed, clarifying that this rule was applicable solely to items categorized as ‘volatile’ in nature.

As a result, on August 29th, the court determined that ITC had participated in ‘unfair trade practices’ and directed the immediate cessation of the sale of the particular batch of biscuits in question. Additionally, the judge decreed that the company must provide the consumer with compensation totaling INR 1 lakh. This conclusion marked the end of a case in which what appeared to be a minor mistake ultimately incurred a substantial cost for the company, all stemming from a single biscuit!

Perfora breaks new ground in oral wellness with Purple Teeth Whitening Serum

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September 6, 2023

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Perfora's Purple Magic Teeth Whitening Serum

In a world where the impact of a smile is profound, Perfora, India’s pioneering brand in digital-first oral wellness, has illuminated the path to brighter smiles through its groundbreaking innovation: the Purple Teeth Whitening Serum.

Inspired by the captivating harmony of colors, Perfora introduces a revolutionary concept that revolves around the dynamic interplay of two complementary hues: purple and yellow. The underlying science is elegantly straightforward: by applying the purple solution to your teeth, it adeptly counteracts and neutralizes the yellow stains on the enamel, revealing a noticeably brighter and more radiant smile.

Perfora’s Purple Magic Teeth Whitening Serum, presented as a gel-like solution, has been meticulously designed for sustained and regular application, effectively fading those stubborn yellow teeth stains over time. This groundbreaking formula combines the mesmerizing properties of purple with the teeth-brightening power of bromelain and papain enzymes, derived from pineapples and papayas, respectively.

This product goes beyond simple teeth whitening; it represents a smile transformation that exudes confidence. It seamlessly aligns with Perfora’s unwavering dedication to reshaping the landscape of oral beauty, establishing itself as the top choice for innovative oral care, with a special focus on catering to the preferences of Gen Z and millennials.

The Purple Teeth Whitening Serum comes in a user-friendly airless pump bottle, seamlessly fitting into your daily routine with ease. With a budget-friendly price of only INR 499 for a 30ml bottle, it serves as an economical and readily available option for individuals looking to attain a brilliant smile.

SUN Mobility teams up with Swiggy to electrify 15,000+ delivery e-bikes

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September 6, 2023

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Sun Mobility, a company specializing in energy infrastructure and services for electric vehicles (EVs), is set to join forces with Swiggy, the on-demand convenience delivery platform, with a goal to electrify over 15,000 e-bikes within their delivery fleet over the next year.

In this collaborative effort, Swiggy’s final-mile delivery e-bike fleet will gain access to SUN Mobility’s cutting-edge battery-swapping technology and an extensive network of battery-swapping stations, as indicated in an official company statement.

“We are happy to partner with the company to drive the adoption of electric mobility in India,” said Anant Badjatya, CEO, SUN Mobility.

Swiggy’s fleet delivers millions of orders each month, with delivery executives travelling an average of 80–100 kilometres daily. Mihir Shah, Head of Operations at Swiggy, added, “We look for ways to increase the adoption of electric vehicles in our delivery fleet. Working with SUN Mobility allows us to solve concerns about access to battery-swapping stations. Our delivery partners can keep going without putting in extra miles or delays due to battery swapping, all while giving them savings on fuel and vehicle maintenance and contributing to a greener environment.”

General Mills to double manufacturing capacity in India with new Nashik plant

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September 6, 2023

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General Mills India, a subsidiary of the American Fortune 500 packaged food conglomerate General Mills, celebrates a momentous occasion as it conducts a groundbreaking ceremony for its upcoming manufacturing facility in Nashik, Maharashtra. This marks a significant step in General Mills’ growth and commitment to the Indian market. The new plant will play a pivotal role in producing Pillsbury Baking Mixes specifically tailored for the Indian consumer and is projected to commence operations by August 2024.

General Mills’ forthcoming plant will become their second manufacturing hub for Pillsbury Baking Mixes within India. The company is committed to investing approximately INR 100 crore in constructing this facility, which will boast cutting-edge technology and modern infrastructure. This strategic move will effectively double General Mills India’s manufacturing capacity, ensuring their ability to keep up with the rising demand for Pillsbury bakery solutions in the Indian market. The Pillsbury brand has already established a formidable presence in the Baking Mixes sector and is poised to continue serving the expanding bakery and food service industry in India.

“The bakery industry in India is witnessing remarkable growth,” said Anand Khurana, country director for General Mills India. “Beyond birthdays, cake cutting has become integral to various occasions like anniversaries, success parties and festive gatherings. Pillsbury’s bakery solutions empower bakers with consistent quality in every cake batch and enhance efficiency in the back-of-house operations of bakery businesses. The new facility will mark Pillsbury’s commitment to serving more bakers in India and supporting their business growth.”

Pillsbury made its debut in the Indian market with Baking Mixes in 1999. Since that time, it has risen to a dominant position as the go-to choice for professional bakers in the Cake and Dessert Mixes category. The forthcoming facility in Nashik is primed to solidify Pillsbury’s reputation as the preferred brand among bakers all across the country, catering to their ever-changing requirements and demands.

India plays a central role in General Mills’ worldwide expansion strategy. The choice to expand production capacity by establishing the new facility serves as a clear demonstration of General Mills’ unwavering dedication to fostering the growth and prosperity of the baking industry.

‘’India is among General Mills’ priority markets worldwide,’ ’said Balki Radhakrishnan, vice president and managing director of Global Emerging Markets at General Mills. “In recent years, our business in India has consistently accelerated growth and the new manufacturing plant reinforces our dedication to growing in India by delighting more consumers and catering to evolving consumer needs.’’

“The growth and success in India of an iconic American brand such as General Mills shows the strength of U.S.-India economic ties and the potential of our nations to work together to serve global markets,” said Greg Pardo, spokesperson for the U.S. Consulate General Mumbai. “General Mills’ expansion here in Nashik reflects their commitment to advancing the agricultural industry of Maharashtra by creating wonderful foods for the world to enjoy.”

Reliance Retail Ventures injects INR 300 Crore in equity into RCPL for FMCG expansion

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September 6, 2023

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Reliance Retail Ventures is injecting INR 300 crore in equity into its recently established fast-moving consumer goods business, known as Reliance Consumer Products (RCPL). This investment is being made through optionally fully convertible debentures (OFCD), with INR 277 crore having already been infused into the company, as indicated by RCPL’s latest fiscal year financial report. Notably, this marks the initial significant capital injection from the company’s promoters into the venture.

Reliance Retail Ventures serves as the parent company overseeing all retail operations within the Reliance Industries conglomerate. The allotments took place on February 1 and March 31.

“During the period, the company (RCPL) obtained approval from its shareholders to offer, issue and allot up to 300,000,000 unsecured zero coupon OFCDs of face value of INR 10 each to its existing holders of equity share on right basis,” said the filing by RCPL.

RCPL has an authorized share capital of INR 1 crore, with an issued, subscribed, and fully paid-up capital of INR 1 lakh. The company commenced its operations on November 30, 2022.

The report additionally revealed that RCPL invested INR 200 crore to acquire a 50% stake in Gujarat’s Sosyo Hajoori Beverages. This joint venture aims to bolster RCPL’s footprint in the beverage sector, following its acquisition of the Campa brand.

As of the time of press, an email directed to RCPL had not received a response.

According to an industry executive, Reliance Retail Ventures intends to inject additional funding into RCPL during this fiscal year as part of its plan to expand the FMCG business on a national scale.

“The company has aggressive plans to enter each and every category since FMCG is its latest bet,” said the executive, who did not wish to be identified. Reliance Retail Ventures director Isha Ambani recently said the FMCG business made a strong start by entering several categories through multiple brands and strategic partnerships.

FarMart joins ONDC as the first food and agri-tech supply network

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September 6, 2023

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FarMart, India’s fastest-growing intelligent food supply network, has taken a groundbreaking step by becoming the first food and agri-tech company to join ONDC. This strategic move empowers FarMart to facilitate easy access to high-quality ingredients for food manufacturing businesses across India through the ONDC network.

Through this collaboration, FarMart and ONDC are collectively reshaping the food supply chain landscape. Their efforts are aimed at seamlessly linking food value chains throughout the country and fostering effortless connections between food producers and manufacturers.

The food and agri-tech company recently completed a substantial business-to-business (B2B) bulk order, supplying 5,000 kilograms of flour through their network. FarMart presently offers a diverse range of over 25 Stock Keeping Units (SKUs) consisting of processed products, including various food grains, oilseeds, spices, and pulses, catering to the needs of food businesses.

Through this partnership, food businesses nationwide will gain access to FarMart’s extensive network, comprising over 200,000 village-level aggregators and over 2,000 processors.

Speaking on the occasion Alekh Sanghera, Co-Founder & CEO of FarMart, said, “FarMart mission is to make food value chains more resilient, reliable & rewarding for humanity. Being live on ONDC is a pivotal element of our distribution strategy as it enables us to seamlessly connect farming communities with food processors and eventually end consumers while ensuring traceability.”

“Being a board member at both FarMart and ONDC, this news gives me immense joy and pride. This collaboration provides improved access for farmers, small businesses, and consumers in the food supply chain which is the shared mission of both organizations.

This is a big step towards digitization, traceability and efficiency of global food supply chains.”, said Anjali Bansal, Founder and Managing Partner at Avaana Capital.

“I am happy to see FarMart joining the network, looking forward to more Agri-tech companies, agriculture commodity buyers to join network to enable e-procurement of Agriculture Commodities,” T Koshy, MD & CEO of ONDC said in an official statement.

FarMart serves as a smart food supply network, linking farming communities with global food businesses. They develop digital products and commerce solutions that revamp food value chains, with a mission to enhance the resilience, reliability, and profitability of these chains for humanity. Notably, in 2022, FarMart achieved recognition from Deloitte, securing the top spot as the fastest-growing technology company in India.

Prominent venture capital firms such as General Catalyst, Matrix Partners, Omidyar Network, and Avaana Capital have joined forces with and provided support to FarMart. They are dedicated to investing in innovative technology companies that prioritize sustainability and purpose.

Amul named official sponsor of Indian Contingent at Hangzhou Asian Games

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September 6, 2023

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Amul has been designated as the official sponsor for the Indian Contingent participating in the 19th Asian Games scheduled to take place in Hangzhou, China, from September 23 to October 8, 2023.

Announcing Amul’s association, Jayen Mehta, In-charge Managing Director, Amul, said “Amul is delighted to announce its association with the Asian Games 2022 and the Indian Olympic Association. Milk is the world’s original energy drink, and every sportsperson nourishes their health with milk in any of its various forms such as ghee, butter, cheese or paneer among many others. Amul has partnered with Indian sportspersons through the Indian Olympic Association since the London 2012 Olympics for all Indian contingent to Olympics, Commonwealth Games and Asian Games and we are pleased to further strengthen our decade long relationship.”

In line with this partnership, Amul will incorporate the integrated logo into its communications to commemorate the achievements of the athletes.

The XIX Asian Games 2022, officially known as the 19th Asian Games Hangzhou 2022, is set to feature 482 events covering 40 sports. This continental multi-sport extravaganza, also known as Asiad, occurs every four years and gathers athletes from across Asia. Originally planned for the previous year, the event had to be postponed due to the COVID-19 pandemic.

The Indian contingent at the Asian Games will be composed of 634 athletes participating in 38 diverse sports, with the largest group of 65 athletes competing in athletics. In the previous edition held in Jakarta in 2018, India had sent a contingent of 570 athletes to compete across 36 sports, resulting in an impressive tally of 70 medals.

France reconsiders ban on animal-related terms for plant-based foods: New decree awaits European Commission approval

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September 6, 2023

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France is reconsidering a proposal to ban the use of animal-related terms for plant-based food products, such as ‘steak.’

In 2020, France’s Ministry of Agriculture initiated a move to prohibit the use of animal-related labels for products containing plant-based protein substitutes through a labeling law. The ensuing regulation was originally set to go into effect in 2022 but was temporarily halted by the Council of State, a judicial body in Paris, following appeals and feedback.

Endorsed by Marc Fesneau, the Minister of Agriculture and Food Sovereignty in France, following an examination of the Council of State’s recommendations, the fresh decree will become effective three months after the notification issued on August 23. However, it must receive prior approval from the European Commission.

In a statement released on September 4th, the Ministry indicated that “penalties” would be enforced in the event of non-compliance with the decree’s directives once it is put into effect.

Fesneau said, “This new draft decree reflects our desire to put an end to misleading claims as provided for by law, by using names relating to meat products for foodstuffs that do not contain them. It is an issue of transparency and loyalty which meets a legitimate expectation of consumers and producers.

“To maintain the bond of trust with consumers, labelling and its intelligibility are essential. This is the objective of this decree and of all government policy in this area.”

France’s draft decree applies to plant-based foods “manufactured and marketed on French territory”, or the promotion of such foods, and applies to the “use of names traditionally designating foodstuffs of animal origin”.

In response to the decree, Jasmijn de Boo, the CEO of the plant-based advocacy group ProVeg International, said the labelling rules are “counter-productive” and suggested consumers are not misled by animal-type descriptions on alternative-foods packaging.

“Plant-based foods are a vital key to solving the climate crisis as well as ensuring economic growth. Many meat and dairy companies themselves know this, which is why they are investing in both plant-based and animal-based foods, and in some cases switching to plant-based foods entirely,” de Boo said in a statement.

“Governments need to be actively promoting plant-based food, such as through subsidies and public procurement, not introducing restrictive measures.”

Suppliers of plant-based protein products will have three months to comply once the decree comes into force to “give operators time to adapt their labelling, as well as the possibility of marketing foodstuffs manufactured or labelled before its entry into force until stocks last, and at the latest one year from its publication”, the Ministry said.

UK plant-based meat brand ‘This’ makes its debut in the Netherlands

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September 6, 2023

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This, the UK plant-based meat business, has made its first foray into an international market by securing listings at the Netherlands’ largest supermarket group, Albert Heijn.

The London-based company characterized this step as a “significant achievement for the brand.”

Its products have already found their way onto the shelves of major UK supermarkets such as Tesco, where the company participated in its incubator program in 2020, as well as Morrisons and Sainsbury’s.

Starting September 11th, these products will be offered for sale in 430 Albert Heijn stores across the Netherlands. Dutch consumers will have access to four of the brand’s top-selling items: This Isn’t Beef Burgers, This Isn’t Chicken Pieces, This Isn’t Pork Sausages, and This Isn’t Streaky Bacon.

This is expressing strong confidence in its prospects in the Netherlands, citing a recent GFI report that highlighted the Dutch as having the highest per capita consumption of plant-based foods.

Last year, Albert Heijn pledged its support for the nation’s plant-based movement, with a goal to see 60% of protein consumption in the country sourced from plant-based products by 2030.

Andy Shovel, Co-Founder and Co-CEO of This, said, “This has been a huge undertaking for the business as we’ve worked to secure a really strong partnership with Albert Heijn with a four-strong range to launch into one of the hottest markets for plant-based globally.”

This said it is forecast to hit £20m ($25.1m) of revenue this year, more than 50% up on last year’s performance.

The company has leveraged crowdfunding to secure funding for its growth initiatives. Earlier this year, it successfully raised £15 million, earmarked for bolstering its research and development capabilities, streamlining its supply chains, and supporting its expansion efforts in international markets.

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