Zepto raid fallout: FDA to inspect all quick commerce facilities
CHENNAI: Following the Maharashtra Food and Drug Administration (FDA) raid at the Dharavi outlet of Kiranakart Technologies Pvt Ltd, the parent company of the popular instant grocery delivery platform Zepto, and consequent suspension its food business license on the ground of violation of hygiene rules, the state FDA is planning to inspect the facilities of all quick commerce companies, including Blinkit and Instamart.
The action against Zepto followed a detailed inspection conducted in its facilties in Mumbai on Saturday that uncovered multiple violations of food safety and hygiene regulations at the company's distribution centre.
According to sources familiar with the development, Maharashtra health minister has already instructed the food and drug regulator go ahead with detailed inspections at the facilities of all food delivery companies in the state.
The inspections at Zepto's Dharavi store and godowns were initiated by the Maharashtra FDA under the direct instructions of Minister of State for FDA, Yogesh Kadam. The operation was led by Food Safety Officer Ram Bodke and supervised by Mangesh Mane, Joint Commissioner, Food. The probe aimed to assess compliance with the Food Safety and Standards Act, 2006, and related licensing regulations.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
7 hours ago
- Time of India
‘Q-Comm Cos Preying on Other Retail Channels to Drive Growth'
HighlightsOnly 6–8 per cent of sales on quick commerce platforms are truly incremental, with most growth occurring at the expense of modern trade and ecommerce. Quick commerce platforms, such as Zepto, Blinkit, and Instamart, are generating limited new demand and are primarily taking market share from other sales channels. Despite quick commerce being the fastest-growing sales channel, it still accounts for only 3-6 per cent of overall sales for most consumer goods firms in India. Only 6–8 per cent of sales on quick commerce platforms are truly incremental, while most of the channel's growth comes at the expense of other formats—primarily modern trade and ecommerce, followed by local kiranas, according to a report by Kearney. This is despite supermarkets and ecommerce platforms offering the steepest discounts to shoppers—typically in the range of 13–18 per cent, compared to 6–9 per cent on quick commerce and 2–5 per cent on kiranas or general trade, said the report exclusively shared with ET. Industry officials agreed that platforms such as Zepto , Blinkit , and Instamart are generating little in terms of new or additional demand. 'Quick commerce is taking some share from marketplaces, they are taking some share from general trade," said Saugata Gupta , managing director of Marico, maker of Parachute oil and Saffola cooking oil. To reduce ' cannibalistic sales ,' the company needs to 'ensure that we have a tailor-made portfolio to drive offtake, and not just give price discounting,' he added. While quick commerce started off as a top-up service for last-minute purchases for groceries and small-ticket items, it is now the fastest-growing sales channel, especially for premium portfolios. The contribution of quick commerce to ecommerce sales has been doubling every year, although on a small base. It roughly accounts for between 3-6 per cent of overall sales for most consumer goods firms in the country.
Time of India
13 hours ago
- Time of India
Quick commerce growth cannibalising other retail channels, says Kearney report
Mumbai: Only 6-8% of sales on quick commerce platforms are truly incremental, while most of the channel's growth comes at the expense of other formats-primarily modern trade and ecommerce, followed by local kiranas, according to a report by Kearney. This is despite supermarkets and ecommerce platforms offering the steepest discounts to shoppers-typically in the range of 13-18%, compared to 6-9% on quick commerce and 2-5% on kiranas or general trade, said the report exclusively shared with ET. Industry officials agreed that platforms such as Zepto , Blinkit , and Instamart are generating little in terms of new or additional demand. "Quick commerce is taking some share from marketplaces, they are taking some share from general trade," said Saugata Gupta, managing director of Marico , maker of Parachute oil and Saffola cooking oil. To reduce "cannibalistic sales," the company needs to "ensure that we have a tailor-made portfolio to drive offtake, and not just give price discounting," he added. While quick commerce started off as a top-up service for last-minute purchases for groceries and small-ticket items, it is now the fastest-growing sales channel, especially for premium portfolios. The contribution of quick commerce to ecommerce sales has been doubling every year, although on a small base. It roughly accounts for between 3-6% of overall sales for most consumer goods firms in the country. Before the entry of quick commerce companies, only about one-third of shoppers in top metros favoured online platforms for their daily shopping. Today, 87% people in these cities shop online, highlighting a major consumer shift helped by convenience and instant gratification that quick commerce provides, the Kearney report noted. However, the shift is not consistent across all categories. "In the initial growth phase, food categories have seen the highest migration, with staples leading adoption-challenging the notion that quick commerce is primarily for top-up purchases," said Siddharth Jain, partner at Kearney. However, the shift in fresh produce is lower-indicating that consumers still prefer to handpick such items, he noted. "Adoption in categories such as personal care and electronics is also lower, likely because of the limited assortment offered by quick commerce platforms in their early stages." Kearney expects the quick commerce grocery market to grow threefold between 2024 and 2027, reaching about ₹1.5 lakh crore to ₹1.7 lakh crore and extending to all towns with a population of 500,000 or more by then. Consumer companies also expect the segment to continue its growth. "It's growing because there's a three-cornered fight between the three big players in that space," Varun Berry, vice-chairman of biscuits major Britannia Industries , told investors. "And I think there are certain categories where it even becomes 30% and 35%." The industry is largely controlled by Zepto, Zomato's Blinkit and Swiggy Instamart even as top ecommerce players including Flipkart and Amazon have entered the segment. Last week, Coca-Cola global chief operating officer Henrique Braun said India has accelerated tremendously in digitisation. "One of the things that was, to me, an eye opener as well, in terms of another channel that's developing here is the quick commerce that is very unique to India. It's accelerating... Every time I come in, it's bigger," he said. Earlier this year, Unilever global CEO Fernando Fernandez said he expects the channel to contribute 10-15% sales in India in the next three-four years, from 2-3% at present. "India is a very special place because richer Indians and poorer Indians live in close proximity that basically provide demand and supply of labour, making quick commerce a logical channel to grow," he said.
Time of India
a day ago
- Time of India
Food dept cracks down on meat shops in Ghaziabad
Ghaziabad: Food safety department has launched a crackdown on illegal slaughtering, poor hygiene and unregistered food business operators (FBOs) in Ghaziabad. This led to closure notices, seizure of equipment and penalties under the Food Safety and Standards Act on Wednesday. During an inspection at Halal Chicken Shop in Shastri Nagar, chicken slaughtering was found to be taking place despite the outlet having no registration for a slaughterhouse, assistant commissioner of food (Grade II), Ghaziabad, Dr Arvind Yadav told TOI. "The FBO had a registration for a meat shop but not for slaughtering. As a preventive measure, the slaughtering equipment was seized while he was allowed to continue the shop and sale of meat. A penalty was imposed on him as per provisions of the Food Safety Act," Dr Yadav said. In Indirapuram's Kanawani Pulia area, a meat shop, run by Guddu Qureshi, was found operating without any food registration. Legal proceedings under Section 58 of the Act were initiated and the shop was shut down immediately. Another meat shop in the area, Pappu Mutton Shop, was issued a notice for violating registration conditions. Officials said its licence may be suspended if hygiene issues are not resolved within the given timeline. At Windsor Street Market in Indirapuram, Lucknow Wale Kababi Non-Veg Restaurant was pulled up for displaying roasted meat in the open and poor cleanliness, Yadav said.
