Amid the spotlight on soaring tomato prices caused by supply shortages, government data reveals that the prices of all food items, except potatoes, have also experienced significant spikes.
This week, the food and consumer affairs ministry informed the Parliament that over the past year, tur dal prices witnessed a substantial increase of 28%, with rice following closely at 10.5%. Additionally, urad dal and atta also experienced an 8% rise each in their prices. As of Thursday, the average retail price of rice stood at INR 41 per kg, compared to INR 37 a year ago.
The ministry has linked the increase in tur dal prices to a decline in domestic production. According to the third advance estimate of the agriculture ministry for the 2022-23 crop year, tur dal production is projected to be 34.3 lakh tonnes, significantly lower than the 42.2 lakh tonnes recorded during the previous crop year.
Earlier, Kaushik, a member of the Agricultural Produce Marketing Committee (APMC), informed PTI that vegetable wholesalers are grappling with losses due to a substantial decline in the sales of tomatoes, capsicum, and other seasonal vegetables.
As reported by the price monitoring cell of the consumer affairs ministry, the average retail price of tur dal on Thursday stood at INR 136 per kg, a notable rise from INR 106.5 per kg observed last year. Similarly, the price of urad dal has also seen an increase to INR 114 per kilo from last year’s INR 106.5.
As per the ministry’s statement, the all-India average retail price of potatoes is approximately 12% lower than the previous year, while the price of onions has seen an increase of about 5% compared to a year ago.
On tomato prices, the ministry said, “The prices of tomato has increased in recent weeks on account of a combination of factors like crop seasonality, white fly disease in Kolar, instantaneous arrival of monsoon rains in northern part of the country which adversely affected tomato crops in Haryana and Himachal Pradesh and logistics disruptions in isolated areas due to heavy rains.”
According to government data, the average price of tomatoes on Thursday reached INR 140 per kilo, marking a significant increase from INR 34 per kilo last year. Among different regions, Bulandshahr in Uttar Pradesh recorded the highest tomato price at INR 257 per kg, while it was being sold at INR 213 per kilo in Delhi and INR 157 per kilo in Mumbai.
The State government has plans to establish clean street food hubs in Chennai, Kancheepuram, and Tiruvallur districts in the near future. Similarly, hubs of a similar nature will be introduced in Chengalpattu, Nagapattinam, and Coimbatore districts. To facilitate this initiative, local authorities in these selected districts will allocate suitable land for the establishment of these food hubs, which will be operated in compliance with stringent food safety standards.
The Greater Chennai Corporation has pinpointed specific locations within the city to set up the food hubs.
Every hub will consist of a cluster of 20 or more food vendors who will sell their products only after meeting essential hygiene and sanitation standards.
The hubs will be recognised by the local body as a clean street food hub based on an audit.
Construction of the food hubs at Elliot’s Beach is scheduled to commence soon. Additionally, locations like Mamallapuram in Chengalpattu district, Avadi in Tiruvallur district, and Velankanni in Nagapattinam district have been identified for similar food hubs in other parts of the State.
Satheesh Kumar, Designated Officer, Food Safety Department, Chennai, said more than 50 vendors in Chennai will receive training in cooking and storing of food.
“The food should not be unhygienic. The vendors should focus on proper disposal of waste,” said Dr. Satheesh Kumar.
Most food vendors do not follow any standard operating procedure with regard to hygiene.
Many public health issues have been reported by residents after consuming food sold by these vendors.
Based on the hygiene rating of the stalls at the food hubs, the government will set up similar hubs in more districts.
Haldiram’s, the renowned Indian brand known for its delectable sweets and snacks, is gearing up to commemorate the joyous festival of Teej with a delightful campaign that aims to bring the “Sweetness of Relationships” to the celebrations. The campaign, titled “Rishton Ki Mithas, Haldiram’s Ke Sath,” serves as a tribute to the timeless customs of Teej, rejoicing in the advent of the monsoon season and the cherished connections of love and togetherness.
Haldiram’s Teej campaign captures the spirit of the time-honored cultural celebration through an enticing assortment of Ghevar, catering to a wide array of tastes. Indulge in the delightful flavors of Malai Ghevar, Kaju Cream Ghevar, Kesar Ghevar, Plain Ghevar, Rose Ghevar, Khas Ghevar, Kalakand Ghevar, Kesar Malai Ghevar, and more. Each Ghevar variant embodies the genuine taste and expertise for which Haldiram’s is renowned.
Speaking about the launch of Teej Campaign, Divya Batra, Head of Marketing, Haldiram’s, said, “Teej is the festival of love, joy, and tradition. At Haldiram’s, we aim to bring in this joy into our offerings, and our diverse range of Ghevar flavours is a perfect reflection of the diversity and richness of Indian culture. With our Teej campaign, we invite everyone to celebrate the festival with their loved ones and experience the authentic flavors of India.”
Kailash Aggarwal, President – Retail QSR- Haldiram’s, said, “As we celebrate Teej, we also celebrate the strong bonds of relationships that unite us all. Haldiram’s has always been a part of people’s lives during festivals, and we are honored to be a part of their special moments. Our exclusive Ghevar range, known for its authentic taste, and specially designed gift boxes, ensuring hygiene and freshness, are crafted to make this Teej even more memorable for our cherished customers.”
The Ghevar boxes by Haldiram’s are also available on Swiggy and Zomato.
Food delivery applications have seamlessly woven into the fabric of our daily lives, offering unparalleled convenience and solace to those seeking a respite after a taxing day. Nevertheless, picture the excitement that would ensue if your food order arrived not by the hands of a delivery agent on a bike but instead through the futuristic innovation of a drone. This spectacle recently captivated the online community when a viral Instagram video showcased precisely that – a food delivery orchestrated by a drone.
Sohan Rai, a prominent tech content creator, took up the role of a food delivery agent for Zomato, but with a visionary twist. Recognizing the challenges traditional delivery personnel face, like navigating through traffic jams and locating elusive addresses, Sohan identified an opportunity to leverage his expertise in drones to revolutionize the food delivery landscape. He embarked on a daring mission to construct his very own autonomous drone, engineered to soar the skies sans a pilot. The undertaking was ambitious, entailing multiple iterations and repairs, but Sohan remained resolute in his determination to bring his vision to fruition.
Having completed the drone’s construction and programming, Sohan ingeniously integrated a sophisticated dropping mechanism to ensure the safe delivery of food. To put his creation to the test, he procured a delectable pizza from Pizza Hut, carefully securing it onto the drone. The delivery destination was approximately 1.5 kilometers away, and with precision, Sohan programmed the drone to follow a meticulous path that would lead to a direct drop-off at the customer’s compound. All set for the daring expedition, the autonomous drone gracefully soared into the skies, commencing its thrilling journey to deliver the pizza. A second drone accompanied closely, capturing every moment of this groundbreaking process on camera. The mission was an astounding success as the pizza reached its destination promptly and with utmost safety.
In the caption of this post, Sohan wrote, “Being a huge enthusiast of drones, I wanted to put my skills into use and build an autonomous drone which could deliver a pizza directly to a home, without having a pilot. Here, I have built the drone with a lot of Jugaad, and it would be a lot better when it is commercial.”
Since its upload on 31st July, the Instagram reel has become an online sensation, drawing a substantial amount of attention. With over 7 million views, surpassing a million likes, and accumulating thousands of comments, the video has captivated a massive audience and continues to do so.
“Man. This is so cool!!!”, wrote one person.
“Excellent work,” commented another
“Nice… but while trying to solve the problem of the delivery guy.
You kind of killed his job.” pointed out one user.
A person wrote, “Me: Thanks for pizza and drone.. ok. Bye.”
Another jokingly asked, “What if the customer chose cash on delivery?”
Sohan’s groundbreaking experiment serves as a shining example of the potential technology holds in the domain of food delivery. Although the commercial feasibility of drone deliveries necessitates further fine-tuning, his creation has ignited a thought-provoking discussion about the possibilities for future advancements in this field.
DEWAR’S is proud to announce the launch of ‘The New Old Fashioned’ mixer in India, bringing forth the epitome of a premium whisky cocktail experience. Developed in collaboration with the leading cocktail mixer brand Jimmy’s, this ready-to-serve premium mixer is perfectly tailored to meet the evolving preferences of the new-age consumers. Enriched with a delightful array of flavors, it offers a hassle-free way to elevate your at-home whisky-drinking moments, delivering a truly premium service like never before.
With its roots tracing back to the early 19th century, the Old Fashioned cocktail holds a significant place in history and remains a globally cherished whisky concoction. Adding a modern flair to this classic favorite, the new mixer offers a contemporary rendition of the timeless Old Fashioned. Packaged elegantly in 250 ml glass bottles, each accommodating up to 4 cocktails, this innovative twist is brought to you by DEWAR’S.
Presently, this exciting innovation can be acquired through drinkjimmys.com and prominent retail outlets in over 20 cities. The brand has plans to further its reach by extending its presence to quick commerce platforms in the near future. As the year unfolds, the availability of these mixers is slated to expand nationwide, ensuring that consumers all across the country can partake in the enjoyment of this remarkable product.
In recent years, the drinking preferences of whisky enthusiasts have undergone a remarkable transformation. According to the 2023 Bacardi Cocktail Trends Report, a noteworthy 30% of consumers now prioritize purchasing drinks based solely on their curiosity about unique flavors, indicating a growing fascination with experimentation. Moreover, the DIY mixology trend has surged, with a significant 37% of consumers reveling in the art of crafting cocktails at home.
This changing landscape has revolutionized the whisky experience, moving beyond the traditional consumption of whisky neat or on the rocks. The surge in consumers’ adventurous spirit has propelled the popularity of whisky highballs. Interestingly, modern consumers also hold a special fondness for nostalgic elements, offering a brilliant opportunity to captivate their desires by reintroducing the classic old-fashioned with a modern twist through the launch of this innovative mixer.
The confluence of evolving preferences and nostalgia-driven trends paves the way for exciting avenues to engage the whisky-drinking audience in captivating and novel ways. Embracing these dynamics allows brands like DEWAR’S to meet the needs of the contemporary consumer and present them with an extraordinary whisky cocktail experience.
Commenting on the latest innovation by DEWAR’S, Vijay Dev, Category Lead – Global Whiskies, Bacardi said, “Today’s whisky consumers’ curiosity is leading to a departure from conventional whisky norms. Their sense of curiosity has fuelled the growing popularity of unique and refreshing whisky cocktails. With the launch of our premium mixer, DEWAR’S aims to cater to the exploratory spirit of these modern whisky lovers, offering them a quick and innovative way to indulge in the timeless taste of an Old Fashioned. We are excited to provide a platform for these curious consumers to delve into the world of whisky and discover new dimensions of flavor, all from the comfort of their own homes.”
Talking about the collaboration with DEWAR’S, Ankur Bhatia, Founder and CEO of Radiohead Brands, said, “The at-home cocktail culture in India is growing fast and Jimmy’s has been at its forefront. This New Old Fashioned is one of the most complex mixers we have co-created especially for DEWAR’S. It took us over a year to perfect the blend – using four different types of bitters blended with orange zest, cherry, cinnamon, and aromatic cloves – for a perfect at-home Old Fashioned cocktail experience. We are truly excited to partner with DEWAR’S, one of the world’s leading alcobev brands, and bring this mixer to consumers across the country.”
Shares of Zomato Ltd witnessed a wave of upward revisions in target prices from multiple brokerages as the company achieved profitability for the first time. Nevertheless, despite this notable milestone, many brokerages opted to retain their current stock ratings. This positive shift in financial performance has garnered significant attention and confidence from investors and analysts alike.
Motilal Oswal Securities projects a 28 percent surge in the stock target to reach INR 110 per share, surpassing the current market price. JM Financial is even more optimistic, anticipating a 37 percent leap in the stock value over the next 12 months, targeting INR 115 per share. Citi has also revised its target price upward from INR 84 to INR 115, reflecting their increased confidence in the company’s potential. Similarly, Morgan Stanley has raised its target price to INR 115 from INR 85 per share, aligning with the positive sentiment surrounding the stock’s future performance.
Goldman Sachs has raised its target price for the stock to INR 100, up from the previous INR 82. Meanwhile, Jefferies India is even more optimistic, setting a target price of INR 130, a substantial increase from INR 100. Kotak anticipates the stock price to reach INR 105 within the next year, compared to its earlier target of INR 95. HSBC, on the other hand, has raised its target price by 20 percent, now valuing the stock at INR 102. These revisions in target prices indicate growing confidence in the company’s future performance and potential for growth.
On August 3, Zomato reported a net profit of INR 2 crore in the first quarter of the current financial year. The company also revealed revenues of INR 2,416 crore, which marked a significant 70.9% increase compared to the previous year. This growth was attributed to the recovery in demand, aided by cooling inflation, and the continued success of the food delivery platform’s loyalty program. The positive financial results demonstrate the company’s resilience and the effectiveness of its strategies in adapting to market conditions and retaining customer loyalty.
JM Financial’s use of the term ‘stellar’ to characterize Zomato’s earnings might be an understatement considering the enormity of the achievement. The firm’s prior confidence in the Street estimates being overly conservative proved well-founded, as the actual extent of Zomato’s earnings surpassing expectations was truly remarkable and exceeded all anticipations. The brokerage firm’s decision to retain Zomato as its top pick within its listed internet coverage reflects the company’s exceptional performance and potential for further growth.
“Baking in the results and the guidance, even with a decent margin of safety, suggests Zomato is a rare play on both growth as well as profitability. While the stock has moved up 35 percent since March-quarter results, we expect the momentum to sustain, as at CMP, the market is largely capturing value attributable to only its FD business, whereas significant value unlocking is waiting to happen in Blinkit,” JM Financial said in a note.
Jefferies acknowledges that Zomato’s journey since its IPO has been a rollercoaster ride, marked by noteworthy highs and lows. However, the company has achieved a remarkable milestone by attaining adjusted-EBITDA and consolidated PAT positivity much sooner than anticipated, surpassing their own projections. This resounding success firmly puts to rest any doubts about Zomato’s ability to generate ‘respectable’ profits, solidifying the company’s position as a robust and promising player in the market.
Moreover, the outstanding results further bolster the credibility of Zomato’s management team and showcase their strong execution capabilities. This newfound confidence in the management bodes well for Blinkit, a division that was previously underestimated or even perceived negatively by many investors. As a consequence of these favorable developments, Jefferies has substantially revised their EBITDA projections, reflecting the growing optimism surrounding Zomato’s overall performance and potential for future growth.
Zomato witnessed an 11.4 percent expansion in the gross order value (GOV) of its food delivery, reaching INR 7,318 crore. Additionally, the average monthly transacting users surged by 5.4 percent, totaling 17.5 million.
Meanwhile, Blinkit, another division of Zomato, experienced a sequential growth of about 5 percent in its GOV, amounting to INR 2,140 crore. Simultaneously, the average order value (AOV) for Blinkit increased to INR 582, marking an impressive 11.5 percent rise compared to the previous quarter. These figures demonstrate the company’s ongoing efforts to enhance its business and further solidify its position in the market.
“We remain positive and expect long-duration 15 percent GOV (Gross Order Value) growth in food delivery, though we see significant upside from the quick commerce business (Blinkit), which could be as big as the FD business ahead with commensurate unit economics,” HSBC said in its latest note.
Nomura Research, Dolat, and Macquarie Research have revised their target prices downward. Nomura now projects a target price of INR 60, a significant 37 percent reduction from its earlier target of INR 87. Dolat has also decreased its target price to INR 65, reflecting a 25 percent decline. Meanwhile, Macquarie has maintained its underperformance rating and retained the target price at INR 55 per share, aligning it with the current market price. These adjustments in target prices reflect the varying outlooks of the respective brokerages on the stock’s future performance.
Zomato’s outlook is brimming with optimism as the company foresees a remarkable growth trajectory for its adjusted revenue, targeting a rate of +40 percent over the next couple of years. This expected growth is set to fuel the continued improvement of contribution margin (CM) and adjusted EBITDA margin, showcasing the company’s commitment to sustained progress and financial success.
According to Nomura’s projections, Zomato’s core food delivery business is expected to achieve a Compound Annual Growth Rate (CAGR) of approximately 20 percent during the FY24-25 period, with a contribution margin (CM) ranging between 7 percent to 7.5 percent. While Nomura acknowledges that Zomato is progressing well towards achieving its EBITDA margin target of 4-5 percent (as a percentage of Gross Order Value) earlier than anticipated, the brokerage remains skeptical about the company’s ability to maintain a double-digit CM in the face of sustained high growth in the long term.
“Transacting user growth momentum in both food delivery (+0.9mn QoQ in a seasonally strong quarter) and quick commerce (flat) was below estimates. We note lack of clarity from the management on the bottom-up growth drivers for the core food delivery business. Further, if a bulk of the growth guidance is driven by Hyperpure, Going Out, or Blinkit, this would unlikely be value-accretive,” said Macquarie in its latest report.
According to informed executives, Tata Consumer Products and ITC Foods have begun discussions regarding the acquisition of a substantial share in Organic India, a company supported by Fabindia and known for its organic teas and health products. The talks suggest that Tata Consumer or ITC may consider purchasing Fabindia’s existing stake in Organic India, or they might explore the possibility of acquiring a new stake in the company.
“After its buy-out talks with mineral water maker Bisleri fell through earlier this year, Tata Consumer has been actively scouting for acquisitions in the foods and beverages space, specially in the health and wellness category,” one of the executives said.
Specific information regarding the negotiations and the potential valuation of the Lucknow-based manufacturer, known for producing an extensive selection of premium organic teas and food supplements, remains undisclosed at this time.
Organic India is supported by Premji Invest and Lighthouse Capital, and Fabindia holds a significant ownership of over 40% in the company.
The spokespersons of Tata Consumer Products and ITC stated that they do not comment on market speculation when queried about the potential acquisition of Organic India. Furthermore, despite sending an email seeking comment, there was no response from Fabindia’s spokesperson until the time of press.
According to the mentioned executives, not only Tata Consumer Products and ITC but also several other packaged consumer goods companies are actively pursuing Organic India.
As per the ‘Indian Organic Sector Vision 2025’ report published by the commerce ministry, the organic and wellness products industry has witnessed substantial growth, particularly in high-double digits following the Covid-19 pandemic. The report predicts that the sector is expected to reach INR 75,000 crore by the year 2025.
The market is projected to experience a significant annual growth rate of approximately 16-18% until the year 2026-27.
Wilko, the budget retailer, has issued a concerning statement, indicating that it is teetering on the verge of collapse. This distressing situation puts over 12,000 jobs in jeopardy. The high street is grappling with mounting expenses and lackluster consumer demand, exacerbating the challenges faced by the company.
The household and garden products retailer, boasting approximately 400 stores, has disclosed its action of filing a notice of intention to appoint administrators at the high court on Thursday. The advisory firm PricewaterhouseCoopers (PwC) has been enlisted to handle the situation.
In recent months, PricewaterhouseCoopers (PwC) has been collaborating with Wilko to actively seek a potential buyer, aiming to secure the necessary additional funds by the end of this month to sustain ongoing operations.
Should Wilko succumb to administration, it would become the most significant retailer to do so since the convenience store chain McColl’s, which experienced a similar situation just over a year ago. Fortunately, McColl’s was successfully rescued by the supermarket chain Morrisons.
Established in 1930 with the opening of its first store in Leicester by JK Wilkinson, the budget retailer has played a crucial role in filling numerous high street gaps left by the collapse of Woolworths in late 2008. Despite its efforts, the tough economic climate has posed significant challenges for the company. To address its financial difficulties, Wilko borrowed £40 million from the restructuring specialist Hilco last year. The company took measures to tackle the situation, including job cuts, restructuring its leadership team, and selling off a distribution centre after experiencing losses and facing a cash crunch.
The retailer witnessed a decline in sales as it grappled with payment issues to suppliers, resulting in empty spaces on shelves. Moreover, the withdrawal of trade cover by at least one credit insurer prompted certain suppliers to temporarily halt deliveries.
Notwithstanding its challenges, the owners of Wilko, headed by the Wilkinson family, received £3 million in dividends during the 12 months leading up to February 2022. However, in the accounts filed at Companies House last year, the company’s auditors cautioned that it lacked adequate committed financing to endure a “severe but plausible downturn in trading activity.”
Hilco, the owner of Homebase and former owner of HMV, is poised to be a prominent candidate to assume control of Wilko in the event of administration, given its status as one of the largest creditors.
Issuing a notice of intention provides a business with a 10-day safeguard against creditors, allowing it the necessary time to stabilize its financial situation. It is important to note that such a notice does not automatically entail the appointment of administrators.
Mark Jackson, the Chief Executive of Wilko, said, “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present, we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with.
“Unfortunately, with this in mind, today we’re having to take the difficult decision to file a [notice of intention to appoint administrators].”
According to Jackson, the company plans to persist in engaging with interested parties and endeavors to secure its future as swiftly as possible.
“We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Wilko and maximise the significant opportunities that we know exist,” he said.
Andy Prendergast, the national secretary for the GMB union, which represents some Wilko workers, said, “This is extremely concerning but we remain hopeful that a buyer can be found.
“Wilko’s staff deserve reassurance that their jobs are safe. We hope this is the number one priority going forward.”
DS Group, the FMCG conglomerate, has appointed Jyotiroop Barua as the business head of Dharampal Satyapal Foods, its confectionery business, according to a press release on Thursday.
Taking on his new position, Barua will assume the responsibility of spearheading the company’s business strategy and fostering growth, aiming to solidify its presence in the segment.
On his appointment, Barua said, “DS Group has grown at a tremendous pace in the last few years with the evolving consumer needs and is recognized amongst the top three players in the non-chocolate FMCG segment in India. I am very excited to take the reins and help steer the company to new heights. Post entry into the chocolate segment, which is primarily dominated by MNCs, DS Group looks promisingly at the next decade to further consolidate its position in the confectionery business.”
Rajiv Kumar, Vice Chairman, DS Group said, “It’s an exciting time for us and our team is geared up for an extremely successful decade ahead as we consolidate our position as one of the leading Indian FMCG majors. As we continue to evolve with the rapidly changing business landscape, we are delighted to welcome Barua to the DS family. With his extensive experience, we look forward to the market insights and fresh ideas that he brings to the table and are confident of his ability to grow our already well-established confectionery business.”
With an extensive background spanning more than three decades in the FMCG sector, Barua possesses diverse expertise across various channels and regions, encompassing both domestic and international markets. Armed with a profound comprehension of sales and marketing dynamics, distribution networks, strategic initiatives, and operational intricacies within the realm of consumer goods, he has contributed his skills to esteemed organizations including MTR, Dabur, Anheuser-Busch InBev, Dunkans Industries, The Assam Company, and several others.
Radico Khaitan, the renowned Indian company, reported a 10% rise in first-quarter profit on Thursday. This impressive growth was fueled by the soaring demand for its premium liquors, including Rampur whisky, Jaisalmer gin, and Magic Moments vodka.
In the April-June quarter, the company’s consolidated net profit surged to 682.7 million rupees ($8.25 million), marking a significant increase from 619.9 million rupees recorded in the same period the previous year.
Experiencing a remarkable growth trajectory, the company witnessed a substantial surge in revenue from operations, soaring over 26% to reach 40.23 billion rupees. This impressive increase was primarily driven by a remarkable 40% spike in sales of their premium liquors. Additionally, the company also boasts a “regular” segment featuring more affordable alcohol options, including 8 PM whisky, Old Admiral brandy, and Contessa rum.
Radico Khaitan attributed its improved margins to a strategic emphasis on expanding its premium business, coupled with prudent price adjustments implemented over the past four quarters. Furthermore, the favorable trend in raw material prices also played a role in bolstering their profitability.
Lalit Khaitan, Chairman and Managing Director of Radico Khaitan Limited, said, “Although we have faced raw material pressure in the short term, the mid-to long-term growth and margin trajectory remain intact.”
United Spirits, the producer of renowned brands like Smirnoff vodka and Black Dog whisky, also reported an increase in quarterly profit. This growth was primarily driven by the decline in raw material prices and reduced excise duty expenditure.
Prior to the release of the results, Radico Khaitan’s shares concluded the day 0.7% higher. During the April-June quarter, the company’s shares experienced a moderate increase of 1.7%. In comparison, United Spirits observed a significant surge, with their shares gaining an impressive 20.6% during the same period.
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