Bread manufacturer Modern Food eyes 25% growth in FY17

NEW DELHI: Leading bread manufacturer, Modern Foods on Friday announced that it is set to expand its business verticals, especially into the health and wellness, and packaged foods segments.

Speaking after the launch of its revamped brand identity, Modern Foods’ chief executive officer and Board Member, Aseem Soni said that the company was looking to grow its revenues four-fold by 2021, riding on the expansion of its portfolio.

“We are looking at a 25 per cent increase in revenue by FY17-18. We would like to quadruple it (the revenue by 2021),” said Soni, adding that the figure would hit Rs 1,000 crore by that year.

The company, acquired by Singapore-based Everstone Capital, registered Rs 270 crore in revenue in 2016-17. The company and its promoters, however, say they are going to be aggressive in expanding its reach, primarily through diversification.

The main focus will be on the health and wellness segment and value added products. It is also looking at branching our into other packaged foods like biscuits, noodles etc. The company is also considering collaborating or acquiring good local brands as part of the expansion.

“We will venture into new categories and markets, either alone or with collaborations. We are looking at entering the packaged foods market,” pointed out Everstone Capital Asia, managing director Rajev Shukla.

Resource: http://www.newindianexpress.com

Resource: http://grandiose.org.in/

Grofers launches offline stores, ties up with Oyo Rooms to set up tuck shops

In a shift from its core strategy, online grocery firm Grofers has set up around 15 offline outlets across Delhi-NCR, according to people privy to the development.

The company has launched two types of offline outlets -- tuck shops and franchise stores. It has tied-up with start-ups across Delhi NCR such as Oyo Rooms to place tuck shops in their office premises which will serve low ticket items like snacks and soft drinks.

The franchise stores have been set up near multiple residential areas in Gurgaon. These stores will offer fresh produce and dairy products to meet the everyday needs of the residents.

According to the people quoted above, as the shops are under a franchise model, the capital requirement to open such stores will be low.

However, there isn't any clarity if Grofers plans to expand this segment in a large manner to emerge as a potential competitor to the likes of BigBazaar and Spencer's.

"It is just in a pilot stage. These are just for brand reinforcement," said one of the officials quoted above.

"Instant gratification of employees could be satisfied through these stores. Thus, the tuck shops are also a value add for corporates and their employees," he added.

Recently, there were reports of merger talks between Grofers and rival Big Basket. But, in an interaction with Moneycontrol last month, BigBasket's founder Hari Menon categorically denied that the company had no plans to merge with Grofers.

This is not Grofers' first encounter with the offline segment.

The company that produces its private label products under the brand Freshbury and Best Value also sells them through multiple retail outlets.

Grofers currently claims to be getting 11000-12000 orders from the online segment on a daily basis with an average ticket size of Rs 1,000.

Last year, the company suspended operations in nine cities. It has now relaunched those cities and plans to expand to 70 cities.

The company had given pink slips to many staffers last year and was rumoured to be on the brink of a closure. But, it has managed bounced back and expanded to about 25 cities.

Resource: http://www.moneycontrol.com

Resource: http://grandiose.org.in/

Maroosh inks multiple franchisee deals for store expansion: Impresa Hospitality

NEW DELHI: Impresa Hospitality, which owns quick service restaurant brand Maroosh, is expanding its domestic and global footprint through a series of franchisee deals. 

It has signed a master franchise partnership with diversified hospitality and real estate group Lalin & Co for the Sri Lanka market, besides a similar deal for setting up stores in Singapore and Hong Kong with retail and licensing consultancy Franchise India. A third similar tie-up has been inked with an Abu Dhabi-based company for merger-cum-expansion in mid-east markets. 

Impresa Hospitality managing director and chief executive Ketan Kadam said: “Expansion through franchisees is an ideal route for expansion in the existing market environment. The business model does not require capex, so we can focus on brand building.” 

For expansion in the domestic market, the company has signed a master franchise deal with Franchise India for setting up stores in the Delhi NCR region besides Bangalore, with the plan to set up over a hundred stores over a three-year period, Impresa Hospitality said. 

Resource: http://economictimes.indiatimes.com

Resource: http://grandiose.org.in/

No F1 race in India since 2013, but Formula One has to pay tax, says SC

New Delhi: The Supreme Court on Monday held that Formula One World Championship (FOWC), which conducts Formula One car racing events, has a permanent establishment for its business in India and income accruing from it is taxable.

A permanent establishment (PE) is a fixed place of business, which generally gives rise to income or value-added tax liability in a particular jurisdiction.

“We have held that FOWC has PE in India and income that is attributable in India will be taxed. The amount that is to be taxed is to be assessed by an assessing officer,” said a Supreme Court bench consisting justices A.K. Sikri and Ashok Bhushan.

Advocate Ankur Saigal, who appeared for Jaypee Group, said that though the detailed judgement is awaited but the Supreme Court has held that an assessing officer will assess the income to be taxed.

Jaypee Group organized three Formula One races at its Buddh International Circuit at Greater Noida, Uttar Pradesh, from 2011 to 2013 before the Indian Grand Prix ran into tax troubles with the state government. Jaypee Sports International Ltd had signed a five-year contract with Formula One Management (FOM) to host the championship in India.

FOWC has challenged last year’s Delhi high court judgement which had ruled that a payment by Jaiprakash Associates Ltd for the use of FOWC logos and symbols to promote the Grand Prix couldn’t be considered royalty and be taxed as such.

The high court had also ruled that FOWC has a permanent establishment in India for conducting its business and set aside the finding of the Authority of Advance Ruling (AAR) on the issue. It had said the use of trademarks was “purely incidental” and as event organiser and host of the F1 Grand Prix Championship, Jaypee was bound to use the F1 marks, logos and devices.

FOWC and Jaypee group had approached the AAR to ascertain if the payment received by FOWC outside India from Jaypee could be considered royalty or not in terms of the double taxation avoidance agreement between the UK and Indian governments.

Another question for consideration before the AAR was whether FOWC had a permanent establishment for its business in India which it found that the payment was royalty and taxable and that Formula One did not have a permanent establishment in India.

Resource: http://www.livemint.com

Resource: http://grandiose.org.in/

Italy - India: High Profile Italian Business Mission at New Delhi and Mumbai; More Than 800 BTBS Organized

The high profile Italian business mission to India starts on 26th April, promoted by the Italian Ministries of Economic Development and Foreign Affairs and International Cooperation and organized by Italian Trade Agency, Confindustria (Confederation of Italian Industry), ABI (Italian Bankers' Association), Unioncamere (Union of Italian Chambers of Commerce) and Rete Imprese Italia (Network of Italian Enterprises) in collaboration with FICCI (Federation of Indian Chambers of Commerce and Industry) and CII (Confederation of Indian Industry). This year, the delegation is led by Deputy Minister of Economic Development, Hon'ble Ivan Scalfarotto, along with Michele Scannavini, President of Italian Trade Agency, Licia Mattioli, Vice President of Confindustria for Internationalization and Guido Rosa, Vice President ABI (Italian Bankers' Association) for Internationalization.

Over 60 companies, 6 Industrial Associations and Trade Associations, 4 Universities and Research Centers, 8 Banks, CDP (Cassa Depositi e Prestiti) group, a total of 150 participants and more than 800 business to business meetings (B2B) between Italian companies and Indian counterparts. 

These are the multi-sectorial mission numbers that will address the New Delhi and Mumbai stages with specific focus on Infrastructure and Construction, Machinery, Automotive, Renewable Energy and ICT. This is an important opportunity to boost economic cooperation between the two countries and to deepen the business and investment opportunities for Italian companies.

"We are going to India with a particularly robust and qualified delegation," says Italian Deputy Minister of Economic Development, Hon'ble Ivan Scalfarotto. "An indispensable feature for the relationship with a country of extraordinary importance, both from an economic point of view and from a geographic and demographic perspective. The sixth economy of the planet has also recently shown great dynamism, backed by public policies that open significant opportunities for Italian companies. There exist opportunities linked both to the ongoing infrastructure and to the development processes in the country and the presence of a growing middle-class with lifestyles and levels of consumption particularly suitable for the penetration of Italian excellence."

"The strong growth recorded in the recent years," points out the President of Italian Trade Agency, Michele Scannavini, "and the estimates of an increase of GDP by 7.2% at the end of 2017 make India one of the most dynamic economies in the world. Among the factors that supported this growth, are the progressive integration of the Indian economy into a global one and the greater opening up towards international trade, events that result in opportunities for the Italian System. The infrastructure sector, which is experiencing a strong demand, along with industrial machinery, automotive and renewable energy, are the most attractive sectors for our enterprises."

"We chose to return to India," explains Licia Mattioli, Vice President of Confindustria for Internationalization, "since the consumption continues to grow, driven by the dynamism of 'aspiring middle-class', mainly comprising of young people whose average income is rising steadily. The demand for high-quality products does increase with interesting opportunities for our enterprises. Thanks to the reforms of the internal market put in place by the Modi Government, India is a favourable investment environment due to the relaunch of industry and employment, the increasing liberalization of the national economy, the progressive opening up to international trade and, to the imposing infrastructure plan for the modernization of ports and airports."

"The Italian banking delegation," says Guido Rosa, Vice President ABI (Italian Bankers' Association) for Internationalization, "with the aim of strengthening the support offered to Italian companies, both from Italy and directly in India, will meet the Reserve Bank of India (RBI) and the leading local banks, led by their Banking Association (IBA) with the aim of focusing on the state of interbank relations."

With a trade exchange of over 7.5 billion Euros in 2016, Italy is India's fifth trading partner among the EU countries, with more than 500 companies present, with technological and production skills. The market size, demand growth, industry and foreign investment revival represent the priorities of government and the guidelines of the Make in India campaign, aimed at promoting a broad set of measures to boost Indian production and its international competitiveness with the aim of increasing the manufacturing share of GDP from 15% to 25% by 2022. The new technologies and partnerships with foreign partners are needed in every sector, especially in the most knowledge and technology-intensive industrial sectors and the Italian System can play a leading role in the process of industrialization and growth of the country.

Over the past two decades India has recorded sustained growth rates with an annual average rate of 5.8% and some peaks (7.3% in 2014, 7.5% in 2015, 7.6% in 2016) which have led it to be the first country among the BRICS and one of the first among the world's major economies. Among the origins of this rapid economic growth, is surely the progressive opening up of the Indian economy to the world and to international trade, coupled with a series of internal market reforms that have profoundly restructured the national economy.

The Programme of the Business Mission will include sectors' meetings for the Italian business delegation and in particular it will be focused on the following: on 27th April, in New Delhi, the Italy - India Business Forum 'Going forward on a common path' will take place, and it will be followed by a session of business meetings between Italian and Indian companies. The mission will then continue in Mumbai, where, in the morning of 28th April, the Italy - India Investment Forum will be held, followed by a further session of business meetings.

Resource: http://www.prnewswire.co.in

Resource: http://grandiose.org.in/

Reliance Jio News : Beta Launch Of FTTH Broadband, 108+ Mln Subscribers, 100 GB Free Data Offer With LG G6

Jio Planning To Expand FTTH Broadband Under Beta Program To Other States Soon

The company has been currently offering its FTTH (Fiber-To-The-Home) broadband services under a pilot program to select areas and housing societies in Delhi, Mumbai, Chennai, and Pune. However, according to an ET report, the company will expand it to cities in other states soon.

The FTTH services will be bundled with JioMedia share device, smart set top box, routers, and Power Line Communication (PLC) devices, which will allow Jio to offer HD TV services, VoD (Video-on-Demand), and JioCloud. Jio will also offer landline phone services along with this service bouquet.

The FTTH service will also enable new services like home automation via Smart Plugs, home surveillance, smart camera, smart doorbell, smart lock, and chime alarm. The best part about these services is that the user would be able to manage them via his/her mobile devices.

Jio Crosses 108 Million Subscribers; Plans To Add Another 1,00,000 Mobile Towers

After achieving a record 100 million subscribers in 170 days, Reliance Jio is growing at a very fast pace. The company had reached a subscriber base of 108.9 million subscribers as of 31 March 2017.

The company has over 1,00,000 mobile towers as of now, and it plans to double its towers by adding another 1,00,000 towers in the coming months. Jio wants to match Airtel and Vodafone in terms of cell sites and coverage, both of which already have close to 2 lakh cell sites each.

Jio is working with Samsung to bringing 5G services in India besides working on a massive 4G LTE network expansion project for the rural areas in India. Samsung is the only 4G equipment provider to Jio and has already bagged contracts to supply equipment for over 1,40,000 mobile sites in India.

As far as data speed is concerned, Jio has again emerged as the fastest 4G telecom operator in the country with an average download speed of 16.48 Mbps.

LG G6 Buyers To Get Additional 100 GB 4G Data From Jio

As we earlier predicted, Reliance Jio is offering complementary data benefits on flagships phones from brands other than Apple and Samsung. Now the company will be offering extra 100 GB to those who buy LG G6 by shelling out Rs. 51,990.

Jio was offering 448 GB data to Samsung Galaxy S8 and S8+ users for 8 months when they subscribe to Rs. 309 monthly pack. Similarly, for the LG G6, the extra 100 GB data would be valid for 10 months (10 GB/month) starting June 2017 until March 2018. The LG G6 users would need to recharge with Rs. 309 every month in order to be able to enjoy the extra data benefits.

How To Claim Extra 100 GB Data on LG G6?

The LG G6 buyers would need to insert their Jio SIM into the newly purchased LG G6 handset to be eligible for the extra data offer. But it must be noted that the extra data would be valid only that particular SIM on the same LG G6 smartphone (verified via IMEI number).

Reliance Jio is growing by leaps and bounds and is disrupting the market by launching amazing promotional offers and super affordable tariff plans. But would it be able to sustain its growth momentum? Or will it hike its tariff plans significantly post a few years once it has gained a strong foothold in the market? Only time will tell, but we would love to hear your thoughts about it. So kindly post a comment.

Resource: http://trak.in

Resource: http://grandiose.org.in/

Beer companies to collectively launch new brands in India to reverse sales decline

BANGALORE | MUMBAI: Heineken, Anheuser-Busch InBev, and Carlsberg are collectively introducing about a dozen new beer brands in India to slake the thirst of its summer-singed consumers. 

For the world’s top three brewers, which together control about 90 per cent of India’s beer market, new products could be the recipe for fending off an unhealthy cocktail of sales bans, shrinking store networks, and stagnant demand in a warm, tropical country with promising demographics and increasing affluence. 

India’s beer sales fell 2 per cent in the year to March 2017, but companies expect the segment to expand 5-7 per cent in the current fiscal, driven by premium products. 

“We need to strengthen our portfolio because consumers want to choose, and we want to be a part of their choice. In the next six months, we will come up with two strong beer brands in the premium segment, and an interesting portfolio of imported brands in the next six weeks,” said Shekhar Ramamurthy, managing director at United Breweries (UB). Heineken owns 43 per cent of UB, which sells KingfisherBSE 3.03 %, Kalyani Black Label, and Zingaro beers, and controls half of India’s beer market. 

UB will launch brands including Desperados, a pale lager beer, a wheat beer brand EdelweissBSE 0.00 %, Mexican brand Sol, and Dos Equis, a pale lager from Heineken’s international portfolio. 

“Then some more are being developed in India in the premium segment to further strengthen our market leadership. Kingfisher will continue to be our lead brand,” said Ramamurthy. The launch strategy appears ambitious, given that about 30,000 vends near highways accounts for a third of the total stores, and they were legally restricted from selling alcohol from April 1. 

With annual sales of about 300 million cases, India is the latest focus area for global brewers that are battling sluggishness in more mature markets around the world. Yet, average consumption of beer in India is about 2 litres per person a year, minuscule compared to the global consumption average of about 30 litres. Still, AB InBev, the maker of Budweiser and Fosters, said consumer sentiment continues to stay positive and its portfolio expansion will help re-stimulate growth. 

“The trend of consumers trading up has never been stronger in the country and the premium segment has been unaffected by the slowdown,” said Kartikeya Sharma, marketing director, AB InBev, India and South-East Asia. Imported labels such as Corona, Hoegaarden and Stella, which are limited to Mumbai, Delhi, and Bangalore, will now be taken to more than a dozen markets across India, he said. 

In India, the industry remains regulated with high taxation. In many parts of the country, wholesale or retail distribution is controlled by the state government. Also in 60 per cent of the markets, state governments dictate the price at which beer can be sold. Hence, companies are pushing for premium brands that earn higher margins. 

Also, India remains a country favouring strong beer, and global companies have been producing stronger variants of their flagship beer brands such as Carlsberg Elephant, Tuborg, and Budweiser. 

Last week, Carlsberg launched a premium strong beer with scotch malts, Tuborg Classic, which managing director Michael N Jensen claimed will be one of the biggest innovations to have hit the Indian beer industry. Apart from mainstream beer brands, experts believe the market could see a slew of new launches in the craft beer segment, an expanding niche. 

From just two craft breweries in 2008, India now has more than 50 across the country, with most centred around Gurgaon, Pune and Bangalore, as per Euromonitor data. There has been a global move toward craft beers, and India mirrors the trend. “We expect at least 20 new beers to be launched in the fiscal, as there is interest from Canada, New Zealand, Lithuania, and even Iceland," said Rahul Singh, who owns 40 beer cafes across 12 cities. 

Resource: http://economictimes.indiatimes.com

Resource: http://grandiose.org.in/