Zomato’s tech budget inches closer to $50 Million in FY24

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August 24, 2023

Zomato, a digital-native company specializing in both food delivery and quick commerce, had a significant reason to celebrate. For the first time in its history, the company achieved profitability, recording a remarkable INR 2 crore profit in the initial quarter of this fiscal year.

Also Read: Zomato’s profitable quarter ignites bullish outlook; brokerages raise target prices

In FY23, Zomato managed an impressive volume of over 640 million orders, serving an average of 17 million monthly customers. Alongside this resurgence in business following the pandemic’s initial impact, the company also experienced a proportional increase in its demand for computing power.

Fundamentally, Zomato is built as a technology-centric platform, a fact underscored by its substantial investments in information technology. In the fiscal year 2023, Zomato committed INR 386.7 crore to IT-related expenses, reflecting a notable 34% growth compared to the previous financial year. This increase can be largely attributed to heightened platform activity and the incorporation of Blinkit in August 2022. While this rise represents a slower pace compared to the impressive 88% surge in IT spending during the preceding year ending in March 2022, the cumulative technology budget is on track to surpass the $50 million milestone in the current year.

Zomato harnesses the power of artificial intelligence and machine learning to drive advancements on its platform, catering to the needs of various stakeholders such as customers, delivery partners, and restaurants. Among these stakeholders, restaurant partners enjoy significant advantages through fully automated order management systems. These encompass a range of functions including order transmission, order processing, menu synchronization, payment reconciliation, content promotion, marketing tools, and invoice management features.

During the month of June, Zomato introduced a data analytics platform named “Food Trends” to provide its restaurant partners with a data-driven methodology for making decisions regarding dishes, pricing, and locations. Zomato Food Trends effectively processes data from millions of transactions spanning numerous cities across India and is accessible to a wide audience.

Zomato also joined forces with ICICI Bank this year to roll out its very own unified payments interface (UPI) offering named Zomato UPI. This innovative feature enables customers to conveniently settle payments for their orders directly through the app by establishing their unique UPI ID. This streamlines the payment process, eliminating the requirement for redirection to external payment gateways. Moreover, these strategic endeavors accentuate the necessity for enhanced computing power while maintaining a strong emphasis on security protocols.

Technology holds a crucial position in another aspect critical to Zomato: the enlistment of its delivery partners. This process involves leveraging Aadhaar-based verification through Digilocker, thereby strengthening the validation of authenticity and deterring impersonation. Additionally, the company has integrated checks based on application programming interfaces (APIs) to ensure compliance with regulatory licenses. In the pursuit of refining logistical operations, Zomato has taken a step further by installing automated weather stations across select cities, including Delhi-NCR, Bangalore, and Chennai. This initiative enhances rain forecasting accuracy and offers customers improved visibility through the application.

There is a perception that Zomato might face robust competition from the government-supported Open Network for Digital Commerce (ONDC), an open protocol crafted by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce. ONDC’s objective is to unite buyers, sellers, and logistics operators, and it has attracted significant players like PhonePe, Paytm, Meesho, as well as international giants such as Microsoft and Amazon, who have already become part of the platform. Nonetheless, ONDC has not yet managed to significantly impact the landscape of digital native ventures.

Kerala steps up food safety measures for Onam: Intense inspections at border check-posts

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August 24, 2023

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This effort aims to guarantee the quality and safety of milk and dairy products that are transported to Kerala from neighboring states. (Representative Image)

During the Onam festival season, the Food Safety department will enhance its surveillance at border check-posts. This effort aims to guarantee the quality and safety of milk and dairy products that are transported to Kerala from neighboring states.

In an official statement released on Wednesday, Health Minister Veena George announced that food safety authorities have been instructed to conduct frequent inspections of shipments arriving from neighboring regions. These inspections will be conducted in collaboration with the Department of Dairy Development. Teams of officials have been assigned to maintain continuous monitoring at border check-posts located in Kumily, Parassala, Aryankavu, Meenakshipuram, and Walayar. These inspection efforts are scheduled to persist until August 28th.

As stated in the press release, mobile laboratories have been deployed at the check-posts to conduct testing on milk and dairy items during transportation. These laboratories will gather samples from the tankers and conduct thorough analyses. If any samples are found to contain chemical residues, they will be forwarded to laboratories accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL) under the jurisdiction of the Food Safety department. This step is taken to ensure a comprehensive examination of the samples.

Depending on the outcomes of the tests, appropriate measures will be implemented against shipments that breach food safety standards. Additionally, samples of fruits, vegetables, fish, meat, and vegetable oils transported from other states will also be gathered at the check-posts for evaluation.

Taco Bell spices up its offerings with the new Indian Desi Menu

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August 24, 2023

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Taco Bell, the internationally acclaimed brand recognized for its Mexican-inspired fare, has recently introduced its new Indian Desi Menu.

This flavor fusion aims to bridge the offerings of Mexican-inspired fast-food with the diverse tastes of Indian consumers.

The Indian Desi Menu offers a variety of selections, ranging from the indulgent Paneer Makhni Taco to the flavorful Butter Chicken Taco and the savory Chicken Seekh Kebab Taco.

Every item has been meticulously prepared using a blend of unique ingredients, expertly paired with a medley of crisp vegetables, all encased in a comforting, airy chalupa bread or presented in a delightfully soft shell.

“With the introduction of the ‘Indian Desi Menu’ we are thrilled to offer our consumers something culturally desi, crazy and delicious. As we continue to expand our footprint across the country, it becomes imperative to bring about an offering that bridges the gap between the rich flavours of Indian cuisine and the beloved taco concept Taco Bell is renowned for.” said, Gaurav Burman, Director, Burman Hospitality Private Limited, Taco Bell’s exclusive franchise partner in India.

The company is excited to initiate a captivating online campaign, introducing the menu through a digital video available across various social media platforms.

The Indian Desi Menu is now accessible at all Taco Bell outlets across India, with prices starting at a mere INR 165.

Amul secures top spot as world’s strongest dairy brand and second strongest food brand globally

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August 24, 2023

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Amul (Representative Image)

In a significant accomplishment, Amul has clinched the title of the world’s strongest dairy brand according to the Brand Finance Food and Drink Report 2023. This comprehensive report meticulously evaluates and ranks the most potent and valuable brands in the realms of food, dairy, and non-alcoholic beverages.

Conducted by the prominent UK-based brand valuation consultancy, Brand Finance, recognized globally as a leader in its field, the report underscores Amul’s resolute dedication to excellence, ingenuity, and the trust of consumers. Notably, Amul has secured not only the premier position as the most robust global dairy brand but has also attained the remarkable distinction of being the second-strongest global food brand, yielding only to the renowned American chocolate giant, Hershey.

Amul’s remarkable achievement in this esteemed report extends beyond a single accolade. The Amul brand has additionally secured a place within the elite bracket of the top 30 most valuable food brands globally, a notable accomplishment considering the vast pool of 5000 brands worldwide. Furthermore, Amul takes pride in being the exclusive farmer-owned brand among the esteemed ranks of the world’s top 100 brands.

Jayen Mehta, Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF), the umbrella organization that markets milk and a range of milk products under the Amul brand, said, “This achievement is a testament to the hard work and dedication of the 36 lakh dairy farmer members of the Amul family. We have always strived to provide the highest quality dairy products to our consumers while upholding the values of sustainability and farmer empowerment. Being recognized as the world’s strongest dairy brand will motivate us to continue our journey of excellence and empowering dairy farmers.”

Securing an impressive valuation of $3 billion, Amul has clinched the seventh position among the globe’s most valuable dairy brands. Notably, as India’s solitary entrant on this esteemed roster, Amul consistently upholds the nation’s pride on the international platform.

Additionally, the report underscores Amul’s dedication to sustainability and ethical conduct by positioning it at the seventh spot in terms of Sustainability Perception Values (SPV).

Amul stands as India’s premier FMCG brand, boasting an annual sales turnover of INR 72,000 crores (equivalent to US $ 9 billion). It serves as an exceptional embodiment of the potency inherent in the farmer’s cooperative movement. Originating in 1946, even prior to India’s attainment of independence, Amul recently celebrated its 75th anniversary.

Choko La sets ambitious growth trajectory: Plans to expand cloud kitchens, enter new markets, and diversify product portfolio

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August 24, 2023

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The couverture chocolate brand Choko La is poised to make significant strides in its growth strategy. With 7 boutique stores and 15 cloud kitchens already under its belt, Choko La is now setting its sights on expanding its presence in both the Indian and international markets, as shared by Vibhu Mahajan, the company’s COO.

Driven by a rising demand, the brand has set its sights on elevating the number of cloud kitchens to 25 by the conclusion of this fiscal year.

“For our products, we have a huge demand coming in from cities like Mumbai, Hyderabad, Bangalore, and Chennai and to cater to this increasing demand, we are planning to open more cloud kitchens during Q4 of FY24,” he explained.

“Another reason for expanding the cloud kitchens is that demand for our cakes has grown by almost 4x in the last couple of years and we are foreseeing another 2x-3x by the next fiscal,” he added.

Currently, cakes constitute 35 percent of the brand’s revenue. Over the upcoming 2-3 years, Choko La anticipates a shift where it will vie evenly with chocolates, aiming for a balanced 50:50 revenue distribution between the two.

An investment of INR 5-6 crore will be infused to support the expansion of cloud kitchens for the brand.

Choko La, conceptualized by Vasudha Munjal Dinodia, ventured into the modern trade arena in the previous year. It has currently established its presence across Spencer’s, Modern Bazaar, and Le Marche. Looking forward, the brand is strategizing to expand its reach to encompass 24Seven and Sodhi’s outlets.

In addition to this, the brand can be found in duty-free shops at 13 international terminals, as well as on various online marketplaces including Amazon, Flipkart, and Blinkit, among others.

Currently, the brand’s revenue is comprised of 60 percent from boutique stores, while the remaining 40 percent is generated through various other avenues such as marketplaces, e-commerce, Q-commerce, and exports.

“In the coming fiscal year, we are looking to change this ratio to 40:60 and for the next couple of years, we have no plans to enter general trade,” he said.

With a portfolio encompassing over 100 SKUs, the brand identifies chocolate and chocolate hampers as its most swiftly selling product categories.

Continuing its expansion into the premium FMCG market, the brand has recently unveiled a classic-flavored chocolate drink packaged in a 200 ml can. Additionally, the brand has imminent plans to roll out this product in three additional flavors, including options catering to health-conscious consumers such as sugar-free and vegan variations.

With the strategic intent to reach into tier II and tier III cities more extensively, the brand has set a price point of INR 175 for the drink.

“In this segment, we have invested INR 2-3 crore and by Q1 of FY 25, we will be launching more pocket-friendly options in 4-5 key categories to cater to a wider audience in tier II and tier III cities,” he stated.

At present, the beverages segment constitutes 7 percent of the brand’s total revenue. As the demand for this segment continues to rise, Choko La envisions a potential increase to 15-20 percent of the overall revenue by the upcoming fiscal year.

In the previous year, the brand made its debut in the US market, and in the current year, it successfully entered the UK market.

“We are supplying to these markets through Amazon at the moment. We are also talking to the departmental stores, for example, in the US, we are in discussions with Whole Foods, which is again owned by Amazon, and in the UK, we are talking with Selfridges and Harrods and we hope to close it by Q3,” he said.

Simultaneously, the brand is in the process of preparing for market entry into Singapore and Canada.

Furthermore, Choko La has intentions to expand its presence into the GCC region, Western Europe, and Australasia.

“At present, international markets contribute to 5 per cent of our overall business, and after expanding to all these countries, we expect the contribution to go up to 15 per cent,” he said.

“In the next 3-4 years, we are eyeing a presence in 10-15 more countries.” he added.

In terms of fiscal operating revenue, the brand achieved INR 25 crore, and it anticipates concluding the current fiscal year with a figure of INR 35 crore.

Vegetable prices in India set to drop from September, says RBI Governor

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August 24, 2023

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Vegetable prices in India are set to undergo a softening trend, with a probable decline expected from September, as highlighted by Reserve Bank of India (RBI) Governor Shaktikanta Das in his recent speech on Wednesday.

The escalating costs of vegetables and cereals have propelled the retail inflation to surge by 7.44% in July, marking its highest point in 15 months.

“We expect to see an appreciable slowdown in vegetable inflation from September,” Shaktikanta Das said.

Despite the potential hindrance of geopolitical tensions on food prices, he mentioned that the prospects for cereal prices remain optimistic.

Shaktikanta Das remarked that despite the persistent elevation of core inflation, the consistent gradual reduction observed in recent months serves as an indication of effective monetary policy transmission.

He stated that the central bank would be vigilant in preventing inflation from becoming enduring and spreading across various segments.

“The frequent incidences of recurring food price shocks pose a risk to anchoring of inflation expectations, which has been underway since September 2022. We will remain watchful of this,” Shaktikanta Das said.

Since May 2022, India has implemented a cumulative increase of 250 basis points in rates to control the upward trajectory of prices. Shaktikanta Das emphasized that the central bank maintains a strong commitment to bringing inflation in line with the Monetary Policy Committee’s prescribed medium-term goal of 4%.

He highlighted that sustainable growth must be grounded in price stability. He further added that the current conditions are conducive for the ongoing expansion to persist and for the capital expenditure cycle to gather momentum in the fiscal year 2023-24.

Regarding the rupee, the head of the central bank restated that while the RBI doesn’t have a particular target, it will maintain its efforts to bolster foreign exchange reserves in order to effectively handle potential dollar outflows.

“The Reserve Bank has also made conscious efforts to improve systemic resilience and efficiency by maintaining external stability and building forex reserves,” he said.

CafePod unveils luxurious ‘Black Velvet’ coffee pods for ultimate indulgence

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August 24, 2023

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CafePod, an independent coffee company headquartered in London, United Kingdom, is introducing “Black Velvet,” a new addition to its range of Nespresso-compatible pods that offers a rich, dark, and incredibly smooth experience.

Crafted by blending elements from CafePod’s renowned blends like Supercharger Espresso and Brunch Blend, the new pod variant encapsulates the essence of dark chocolate torte with its profound and luxurious flavor profile.

With a foundation of dark chocolate, the pod unveils subtle roasted hazelnut undertones, a result of skillful blending using meticulously sourced Ethiopian and Colombian Arabica coffee beans grown at higher altitudes. The addition of Brazilian Arabica imparts a lusciously caramel note to the bold amalgamation.

Peter Grainger, Co-Founder at CafePod, commented, “The name Black Velvet says it all. This dark, strong, rich blend is set to delight coffee lovers and perfectly complements an indulgent chocolatey dessert. Our customers continuously request more strong coffee options, so we think we’ve found the ultimate pleasure blend that will satisfy their coffee needs.”

Crafted using 80% recycled aluminum, these pods will be conveniently accessible for purchase via cafepod.com, Amazon, and Ocado. Priced at an RRP of £3.80, you can obtain a set of 10 Nespresso-compatible pods.

Domino’s Pizza to close all 142 outlets in Russia amid mounting challenges

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August 24, 2023

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As per a report from CNN, Domino’s Pizza is preparing to shut down its entire network of 142 restaurants in Russia. These establishments are under the ownership of the franchise entity DP Eurasia, and they are set to initiate bankruptcy proceedings for their Russian branch known as DPRussia.

CNN reported that this decision represents one of the initial instances of Western chains exiting the country, following the departures of McDonald’s and Starbucks last year.

“With the increasingly challenging environment, DPRussia’s immediate holding company is now compelled to take this step, which will bring about the termination of the attempted sale process of DPRussia as a going concern and, inevitably, the group’s presence in Russia,” DP Eurasia said in a statement.

If acquired by a different franchisee, the pizza chain might still have a chance to maintain its presence in Russia. A similar strategy was adopted for McDonald’s and Starbucks in the country; they are presently managed by local entities that acquired the franchises and rebranded them with local names.

Since the beginning of 2022, Domino’s has refrained from extending any form of support to the Russian market.

Moonshine Meadery diversifies portfolio with Lemon Tea Mead, promoting sustainable sipping

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August 24, 2023

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Moonshine, renowned as Asia and India’s trailblazing meadery, unveils a revitalizing extension to their esteemed lineup: Lemon Tea Mead. Meticulously concocted using the essence of lemons and VAHDAM India’s Earl Grey tea, Moonshine remains steadfast in its endeavor to lead the charge for bee preservation and advocate for ecologically sound beekeeping methods, all through the simple act of enjoying a sip.

Crafted to transcend seasonal boundaries, Lemon Tea Mead presents a charming amalgamation of tastes – the lively, citrusy kick of lemon intermingled with the profound aroma of VAHDAM India’s Earl Grey tea. Its journey commences with a soft introduction of citrusy undertones that seamlessly surrender to the complex personality of Earl Grey tea, ultimately culminating in a gentle astringency bestowed by the tea’s tannins. This harmonious composition of flavors finds its foundation in the tender sweetness drawn from Moonshine’s diverse floral honey selection.

Available at an alluring price of INR 150 in Maharashtra, regardless of the season, this offering extends a welcoming gesture to novices, enhancing their understanding of meads. Moonshine has additionally partnered with Malaka Spice to creatively utilize their lemon zest, advocating for waste-reduction methods. The company has intentions to forge akin collaborations with other eateries in Pune as well.

Rohan Rehani, Co-Founder of Moonshine Meadery and Moonshine Honey Project remarked, “In the previous year 2022-2023, Moonshine accomplished a remarkable feat, utilizing over 55 MT of honey for crafting both mead and retail honey sales. It’s fascinating to note that it takes approximately 4 million flower visits by bees to produce just 1 kg of honey. Therefore, with our consumption of 55 MT of honey, we’ve effectively contributed to the pollination of a staggering 220 billion flowers. We’re taking one pint at a time and promoting more mead at a lower price point. Our objective is to consistently weave a narrative that underscores Moonshine’s commitment to ecological balance through bee preservation and dedicated beekeeping practices.”

Within the alcoholic beverage sector, Moonshine Meadery holds a unique position as the sole brand that prioritizes beekeeping methods. Every glass of Moonshine consumed results in the pollination of around 4 million flowers. In an arena where only a handful of alcohol brands place emphasis on societal and environmental matters, Moonshine’s mindful commitment radiates brilliantly, reshaping the industry’s responsibility in driving positive global progress.

Dabur India taps Kartik Aaryan for exciting launch of new Red Bae Fresh Gel Toothpaste

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August 24, 2023

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Dabur India has enlisted Kartik Aaryan to serve as the brand ambassador for the introduction of the new Dabur Red Bae Fresh Gel toothpaste variant.

Devised by Ogilvy India, the launch campaign has its sights set on engaging Generation Z and Millennials, underlining the significance of both personal and oral hygiene.

Abhishek Jugran, Vice-President – Marketing, Dabur India, said, “I’m incredibly proud to announce the launch of Dabur Red Bae Fresh Gel. Embracing innovation and customer-centricity, our new launch represents a leap towards redefining excellence in the freshness segment in toothpaste. Infused with 5 Natural Activs like wintergreen oil and mint, the product delivers a unique taste of being mild sweet and spicy, with a burst of minty deep freshness. It is clinically proven to deliver 4 times better freshness compared to ordinary toothpaste.With Dabur Red Bae Fresh Gel, one can imagine a refreshing breeze sweeping through your mouth with every brush, awakening your senses and leaving you with an invigorating chill. We have the most dynamic and vibrant youth icon, Kartik Aaryan who perfectly embodies the values of our brand to make this launch a roaring success. The launch of Red Bae Fresh Gel Toothpaste marks a new milestone in Dabur’s commitment to providing innovative and effective oral care products”.

Aaryan said, “I am delighted to be part of the Dabur family. Dabur Red is an iconic and trusted brand from the House of Dabur. I am very excited to launch their latest Gel toothpaste offering “Dabur Red Bae Fresh Gel” which represents youthfulness, attraction, energy and confidence with a tinge of desi factor which is completely in sync with my personality. I’m excited with this association and look forward to reaching the audiences with our launch creative communicating the brand’s “irresistible freshness” message very effectively.

Ritu Sharda, CCO, Ogilvy India (North), said, “Dabur is constantly innovating products that appeal to today’s youth. Dabur Red BAE Fresh Gel achieves this with a lively and fun campaign that perfectly highlights our clutter-breaking ‘Saason ka Perfume’ concept, which is inspired by Gen Z’s desire to create an everlasting impression by always looking, smelling and feeling good. Dabur’s 12-hour freshness promise with this product further solidifies our concept. The campaign is brought to life by the effervescent Kartik Aaryan.”

Augustus Daniel, Head of Marketing-Oral Care, said, “Gels is the second largest sub-segment in toothpaste category. Our new launch, Dabur Red Bae Fresh Gel, is meticulously crafted with Gen Z and Millennials in mind – from the brand name to the product and proposition. ‘BAE – Before Anyone Else’ captures the essence of a close friend or partner, while ‘irresistible freshness’ appeals to youth aiming to leave a lasting impact in every interaction. Backed by youth icon Kartik Aaryan’s endorsement, our 360-degree campaign across TV, print, and digital platforms aims to win hearts of India’s youth”

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