Parle Aims 20,000 Cr Turnover In Next 5 Years
Parle Aims 20,000 Cr Turnover In Next 5 Years

India’s leading biscuits and confectionery maker, Parle Products, is planning to consolidate its position in the Indian market. The company aims to double its turnover in the next five years.

“If you look at Parle as a company, we have always been known for biscuits and confectionery. But we have got into quite a few categories over the last two years. We have entered into the bakery items segment like cakes and rusk, high-end chocolates, snacks and of late into pulses. So, I think now is the time to consolidate before we move forward and get into new categories," said Mayank Shah, Category Head, Parle Products in an interview.  

“Quite a few categories are moving over from unorganised to organised segments since consumers have started moving from unorganised to organised segments. One category which has seen conversion is bakery items. Then there are categories like gluten-free products, which have small and niche markets. However, we are at least a decade away from getting into that kind of specialised offerings. These categories are too small for big players like us to cater to," he further added.

Going further, the company aims to be a total food company by filling in the gaps in its offerings.

“Eventually, we are looking at several other categories and whenever and wherever there are opportunities, we would grow into a total food company,” he further said.

 
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Nestle eyes 3% sales growth in 2018
Nestle eyes 3% sales growth in 2018
 

Food group Nestle is looking to grow its sales by around 3% in 2018. The company's plan came after strong trading in North America and China pushed up underlying sales in the third quarter.

The maker of KitKat chocolate bars and Nescafe instant coffee said, "We are starting to see improved momentum in North America and in our infant nutrition category globally. Our business in China continued to grow at a mid-single-digit pace."

Nestle offers products like baby food, medical food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks.

 

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Zomato appoints Rohithari Rajan as global head of ad-sales biz
Zomato appoints Rohithari Rajan as global head of ad-sales biz
 

Online food delivery company Zomato has appointed for Egon Zehnder executive Rohithari Rajan as the global head of the ad-sales business. Prior to Egon Zehnder, Rajan was a Principal at Bain & Company.

"I worked with Rohit while I was at Bain, and learned a lot from him in my time there. Rohit has played an instrumental role in driving growth at all of the previous organizations he's been at, and we’re thrilled to leverage his knowledge and experience to strengthen our Ad sales business globally.” said, Deepinder Goyal, founder, and CEO of Zomato.

According to the company, Rajan has spent the first six years of his career at Hindustan Unilever, where he helped set up Shakti, a business initiative that doubled Unilever's direct reach in rural India. As a rural business specialist, he also worked with the United Nations Development Program in New York, developing a toolkit for pro-poor business models to deliver development goods in low-income regions, and helping the UNDP formulate its strategy for private sector engagement.

"Zomato is arguably one of the most resilient and innovative companies in its space. I’m delighted to be a part of Zomato and look forward to working with this team towards our mission of delivering better food to more people across the world,” said Rajan.

An MBA from the Indian Institute of Management Ahmedabad, and Economics graduate from Delhi University, Rajan has also authored a short novel based on rural India named- IIM-Ganjdundwara.

 

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PepsiCo gets boost from Salty snack sales
PepsiCo gets boost from Salty snack sales
 

PepsiCo, grappling with a slumping soda business, got another boost from its food operations. The maker of Mountain Dew drink posted second quarter profit that topped analysts’ estimates, helped by strong sales of Frito-Lay chips and Quaker oatmeal, according to a statement on Tuesday.

Core earnings per share were $1.61, 9 cents above analysts’ consensus estimate. Results sent company shares up 1.6% in early trade. Stock closed Monday at $107.76 in New York, down 10% for the year. PepsiCo, like rival Coca-Cola, is looking beyond sugary soda to drive growth as consumers become more health-conscious. Chief executive officer Indra Nooyi has said fixing the struggling North American beverage unit is a top priority, but in the meantime the company is getting a boost from its food brands.

Consumer giants ranging from PepsiCo to Nestle are wrestling with changing tastes as shoppers turn away from sugary foods and drinks and seek out healthier fare. Consumption of carbonated soft drinks fell to a 32-year low in the US last year, according to Beverage-Digest, a trade publication.

While chips have been less affected than sodas, PepsiCo has also introduced organic versions of some big snack brands, in addition to buying startup competitors.

 

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Goa Kings Beer targets to Raise Rs 200 cr by the quarter end
Goa Kings Beer targets to Raise Rs 200 cr by the quarter end
 

Viiking Beverages, owner of Goa Kings beer, is in talks with investors to raise up to 200 crore by the end of this quarter to help expand its product portfolio and open two new production units, a top executive said.

The company has also planned its initial public offering (IPO) by the end of 2019 or early 2020 to fund its ambitious expansion plan, Manoj Asrani, the newly appointed chief executive officer of Viiking Beverages, told ET . It has already roped in Grant Thornton to prepare for the IPO.

"We are in the final leg of discussion with an investor to raise between 150-200 crore," said Asrani, who is also chief marketing officer of Viiking Ventures, the holding company of Viiking Beverages, owned by film actor and producer Sachiin Joshi.

Asrani said there is great demand for Goa Kings Beer, which cannot be fulfilled by the firm's two existing breweries in Goa and Jammu .

"From 30,000-40,000cases last year, we are already doing 3 lakh cases a month now, but the demand is for over 5 lakh cases," he said.

Once we get the funds, we will open two production units, which will cost us at least 45-60 crore each only in capital expenditure," Asrani said.

Viiking Beverages is also looking to tie up with existing breweries under sub-lease model to boost production in the meantime. "There are lots of sick breweries, or units where they are not producing up to their potential. We have finalised one in Rajasthan and we have proposals from Telangana, Kerala and Tamil Nadu, where we will finalise one," Asrani said.

"The South Indian brewery will take care of the entire market and will cut our cost and increase profit margins by almost Rs 110 per case," he said.

The company is looking at a demand of over 1 million cases per month across the country, with five south Indian states accounting for 40% of it.

The company also plans to implement software-based selling systems, which has analytical tools to update on daily changing market dynamics.

Asrani said the company grew 300% in 2017-18 when it expanded its presence to more than 15 states in India and to about seven other countries. "I have been overlooking the sales and distribution area of Viiking Beverages for the past six months, as I strongly believe that the right distribution network is the key for the growth for any beverage company," he said. "Our recently launched Kings Goa Maxx, the strong lager beer has seen a significant growth in its first month of being launched in Delhi by absorbing close to 10% market share," he said.

Outside India, the company plans to expand into the UAE, US, UK and Timor-Leste.

 

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Parle Agro targets Rs 10K-cr turnover by 2022, to launch new categories
Parle Agro targets Rs 10K-cr turnover by 2022, to launch new categories
 

One of the biggest beverages-maker Parle Agro is planning to boost its sales and distribution network for its existing products, in addition, to launch of new categories to achieve its target of clocking Rs 10,000 crore topline by 2022, a top company official has said.

The city-based company expects to double the turnover of its flagship brands Frooti and Appy Fizz to achieve this target. While the former grosses Rs 2,200 crore now, the latter fetches around Rs 700 crore in topline.

"We are at Rs 4,200 crore now and we hope to be an Rs 5,000-crore company by December. We are looking at doubling this up over the next few years and have set an aggressive target of Rs 10,000 crore turnover by 2022," saidParle Agro joint managing director and chief marketing officer Nadia Chauhan.

"It is an aggressive target involving big plans not just in terms of furthering our sales and distribution network for existing products but also creating some new products and new categories over the next few years," she added.

Its flagship brand Frooti has been growing at 25 per cent and the company aims to double this in the next two-three years from Rs 2,200 crore now.

The mango-based beverages category is estimated to be over Rs 8,450 crore now, and Frooti enjoys 26 per cent of this segment, she said.

Parle Agro dominates the sparkling fruit juices category with its Rs 700 crore brand Appy Fizz, which it targets to be a Rs 1,000-crore brand by 2020.

The company recently roped in Hindi actor Salman Khan as the brand face for Appy Fizz and Chauhan said it is part of the strategy of growing the category and the brand.

"We really hope that this gives us huge penetration as a brand and achieve our goals of growth," she said.

Appy Fizz is one of the fastest growing brands in its portfolio, clipping at 50 per cent.

Chauhan plans to expand the distribution footprint and drive sales with innovative packaging, differentiated SKUs and aggressive pricing for Appy Fizz.

"Over the next two years, we will have lots of innovation and packaging, which we hope to increase our market penetration. Today Appy Fizz is available at about 6 lakh outlets, while Frooti is at almost 2 million outlets. We want to take Appy Fizz to the level of Frooti when it comes to retailing,” she said.

The company has earmarked Rs 200 crore for marketing activities in 2018, of which Rs 100 crore will be invested in Appy Fizz alone and the rest primarily in Frooti.

The Rs 10,000-crore fruit-based beverages market is dominated by mango, and last year the company had launched Frooti Fizz in the fruit-plus fizz category and is looking at other fruits to drive this category.

Parle Agro, which exports to 50 countries, is also evaluating opportunities to locally manufacture its products in some of its key export markets.

"We are aggressively planning to convert some of these markets to into manufacturing hubs for both captive consumptions as well to serve nearby markets. We are looking at the Middle East, East Africa, and the US for manufacturing base, as these are also big markets for us," Chauhan said.

"Currently, exports as a revenue stream is very small for us which is why we are looking some of the overseas markets for local manufacturing. We already have a manufacturing facility in Nepal," she said.

Parle Agro has 12 beverages manufacturing facilities and 56 bottling plants for water brand Bailley.

 

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Dabur records 19% Q4 profit growth at Rs 396 Cr
Dabur records 19% Q4 profit growth at Rs 396 Cr
 

FMCG major Dabur India has recorded 18.9 per cent year-on-year (YoY) rise in consolidated net profit at Rs 396.20 crore for the March quarter, an apparent rise with Rs 333.10 crore profit reported for the corresponding quarter last year.

Consolidated revenue from operation rose 6.2 per cent YoY in the March quarter to Rs 2,032.90 crore, from Rs 1,914.70 crore in the year-ago period.

Operating profit rose 16.2 per cent YoY to Rs 485.20 crore. PAT margin expanded 209 basis points on a YoY basis to 19.5 per cent.

Growth in the domestic FMCG business stood at 10 per cent, led by 7.7 per cent volume growth. The international business reported 16.8 per cent growth in constant currency terms.

The company’s board has recommended Rs 1.25 per share dividend and a special dividend of Rs 5 per share, the company said in a statement.

 

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Pepsi gets sales Boost from snack segment
Pepsi gets sales Boost from snack segment
 

The iconic American beverage maker PepsiCo’s has posted sales and earnings beating analysts’ estimates in the first quarter, buoyed by increased volumes of Frito-Lay chips as the drinks business continued to struggle.

PepsiCo, like rival Coca-Cola, has focused on introducing new, innovative drinks and products. But it was food brands that drove gains in the quarter.

The beverage-maker had previously said it had shifted its spending too far in the direction of upstarts and away from its biggest names, so it has since refocused attention on its most recognizable labels.

Core earnings were 96 cents a share in the latest quarter, beating the 93 cents that analysts were expecting. Revenue was $12.6 billion, compared with a forecast $12.4 billion. The results are a promising sign, although the North America beverage division is still beset as consumer tastes shift away from colas.

Consumption of carbonated soft drinks fell to a 31-year low in the US in 2016, according to Beverage-Digest, a trade publication. PepsiCo has relied instead on growth in its snack business. Health conscious consumers who have moved away from sugar-laden sodas haven’t made the same moves away from chips.

PepsiCo has also introduced organic and better-for-you versions of some of its biggest snack brands. Growth in the Frito-Lay division helped boost sales in the quarter. The maker of Mountain Dew and Cheetos also benefited from cost cuts as chief executive officer Indra Nooyi continues pursuing at least $1 billion in annual savings.

 

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Coca-Cola India posts double digit growth in Q1
Coca-Cola India posts double digit growth in Q1
 

Beverage maker Coca-Cola has claimed unit case volume growth of 5% for the January-March ’18 quarter for the Asia-Pacific region, which it said was driven by ‘strong performance’ in China and India, partially offset by a low single-digit decline in South East Asia.

“Operating income growth outpaced revenue growth for the quarter, largely driven by favourable product mix as sparkling soft drinks grew volume double digits in China and India,” the Atlanta-based firm said in an earnings statement. It said its price/mix declined 2% for the quarter, largely driven by negative geographic mix as growth in China and India outpaced more developed markets, the maker of Coca-Cola and Thums Up aerated drinks, Minute Maid juice and Kinley water said.

The company has been working to counter headwinds through pricing and product innovations. “We've been learning over the last couple years. We came out with some good marketing, some reinvigorated packaging, shapes, sizes, and looks, and obviously ... innovation on the flavours," chief executive James Quincey said.

 

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Vikram Bakshi-run McDonald's Sees Surge in Sales
Vikram Bakshi-run McDonald's Sees Surge in Sales
 

After months of slump because of a bitter legal battle, quick service restaurant chain McDonald’s India (MIPL)’s north & east business, operated by estranged managing director Vikram Bakshi-led Connaught Plaza Restaurants (CPRL), has reported a 6% increase in March 2018, compared with March 2017, according to internal numbers by CPRL, a person directly aware of the development said.

McDonald’s had terminated its joint venture with CPRL last year in August, but the Indian venture is operating even as a legal spat between the two continues. “We can’t compare the January-March 2017 quarter with January-March 2018, with many stores being non-operational in January and February this year. But from March onwards, CPRL has been operating 164 stores,” the CPRL official said.

In December last year, over 80 McDonald’s stores in the north and east had shut down after CPRL’s logistics partner Radhakrishna Foodland discontinued supplies, citing “reduction in volumes and uncertainty of the future”. At the same time, McDonald’s India had issued a health advisory on the ‘quality’ of food being served at stores operated by CPRL in the north and east.

Last year on August 21, McDonald’s India had directed CPRL to stop using its brand system, trademark, designs and associated intellectual property, the deadline for which ended on September 6, 2017. CPRL, however, continues to operate the restaurants, and has since, made alternate arrangements with a new logistics partner.

Till 2017, CPRL, which ran 169 stores, was category leader in the quick service restaurant space, riding on affordability and aggressive entry-level pricing. However, post mid-last year, sales at McDonald’s north and east had slumped, with stores shutting down intermittently, uncertainty about the future, a key vendor ending its contract with the chain, and supply constraints, helping rivals such as Burger King and KFC report higher sales.

Bakshi had alleged that the termination of the JV by McDonald’s violated an earlier National Company Law Tribunal (NCLT) order which had asked McDonald’s Corp to refrain from interfering in the smooth functioning of CPRL. This had resulted in NCLT issuing a show cause notice to McDonald’s Corp, which the US chain had challenged in the National Company Law Appellate Tribunal (NCLAT).

Arguments for the two hearings, both by National Company Law Tribunal (NCLT) and NCLAT, scheduled for hearing on Tuesday, remained inconclusive. McDonald’s India had also moved the Delhi High Court for enforcement of an award in its favour by the London Court of International Arbitration, even as Bakshi moved Delhi High Court, challenging the arbitration order.

Bakshi and McDonald’s have been involved in a bitter legal battle since August 2013, when the burger-and-fries chain had ousted him as managing director of their joint venture. Trouble between Bakshi-led CPRL, the 50:50 joint venture between him and McDonald’s India further escalated when Bakshi challenged his removal at the Company Law Board (now NCLT), accusing McDonald’s India of mismanagement and oppression. NCLT had reinstated Bakshi as managing director in July 2017.

 

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Patanjali Eyes Surge In Sales In coming months
Patanjali Eyes Surge In Sales In coming months
 

Baba Ramdev led Patanjali Ayurved is clocking an online sales of up to Rs 15 crore every month and expect it to grow further every month, said a top official.

The Haridwar-based company has seen a surge in its sales last financial year and expects to perform better in the current fiscal.

Patanjali CEO Acharya Balakrishna said, "We are doing online business for Rs 10 to 15 crore, and expect it to increase further every month. We are doing good in the online sales despite the fact that we are not participating in any discounted sales.”

According to Balakrishna, who was speaking at an AIMA event, the company would continue to invest in the food processing and connect with more farmers.

"This would also create more employment opportunities," he added.

For current fiscal, Balakrishna said, "We have done better than the last year (FY 2018) and expected, even more, this fiscal. We have tried to improve our internal system last fiscal".

In January this year, Patanjali Ayurved has forayed into e-commerce for its FMCG items, partnering major players in the space, including Amazon and Flipkart.

It has got eight players on board including Grofers, Shopclues, BigBasket, 1mg, PaytmMall and Netmeds, through which its entire range of products was made available online.

 

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Lindt Seeks More Chocolate Lovers In Emerging markets
Lindt Seeks More Chocolate Lovers In Emerging markets
 

Swiss chocolate maker Lindt & Spruengli is planning to gain more chocolate loving customers in Japan, China, South Africa, Brazil and Russia which the group states to be the market with "enormous potential".

Lindt, a leader in the affordable luxury chocolate segment, said in its annual report that subsidiaries in those five countries had produced "an above average result" in 2017, with organic growth of 12.4%.

Lindt said, "This positive trend is being fuelled by consumers' growing demand for quality, greater purchasing power and also a growing desire for chocolate with a high cocoa content.”

It added people gave into their temptation for Lindt chocolate elsewhere as well, with global net profits rising 7.8 percent from 2016.

Meanwhile, sales hit an all-time record for the 175 year old company of more than 4 billion Swiss francs (3.45 billion euros, $4.3 billion).

It said Lindt feted an improved market situation for key raw materials cocoa beans, cocoa butter and sugar with "much better harvests in 2016/17, allowing the previous record-high prices to ease back to normal levels".That should allay chocolate lovers' fears of an imminent crisis for their favourite treat. It was good news all round, bar in the United States, the world's largest chocolate market but a weaker one for Lindt, where company sales dipped slightly.

The dip came despite Lindt’s new packaging and discounts over Christmas, and with the relaunch of a sugar-free chocolate line.

 

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Ananda Dairy Predicts Revenue To Rise By 30 percent
Ananda Dairy Predicts Revenue To Rise By 30 percent
 

Ananda Dairy is predicting a total add up of 30 percent rise from its  Rs 2,000 crore revenue in the next financial year as it expands retail footprint as well as product portfolio.

The company is planning to open 500 retail company-owned and company-operated outlets by end of next fiscal at places like Delhi-NCR, Haryana, Uttar Pradesh and Punjab.

Ananda Group Chairman R S Dixit said, "We are targeting over 30 per cent growth in turnover to Rs 2,000 in financial year 2018-19. We expect retail outlets to contribute 15 per cent to sales by then as we increase the number of outlets. It is 10 per cent at present."

The company is expected to report a turnover of Rs 1,500 crore in the current fiscal, ending March 31. Currently, it operates over 200 outlets in the NCR. It sells over 50 products at present and has presence in most of the dairy products, except ice creams.

About the company prospects of introducing ice creams category in the near future, he said: "It is not a priority right now. It will require huge investment". Based on customer need and feedback the company will launch more value-added products especially those with higher protein content.

 

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