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Indian Express
17-05-2025
- Business
- Indian Express
India's global brand moment? Titan, Royal Enfield, boAt are betting big on the world stage
A decade ago, spotting an Indian consumer brand overseas was a novelty. You might find a Haldiram's packet tucked into an ethnic store in New Jersey, or a Titan watch gifted by an NRI relative. But outside of the diaspora, Indian brands rarely showed up in the global mainstream, not in airports, not on digital shelves, and certainly not in lifestyle conversations. That's quietly beginning to change. Today, you can walk into a Lenskart store in Singapore, see a Royal Enfield cruising down the streets of London, or order Mamaearth products from Amazon UAE. Zomato is back in the Middle East, House of Masaba is shipping to New York, and boAt headphones are showing up on international marketplaces not as curiosities, but as competitive choices. It's not a tidal wave, but it is a meaningful shift. And it raises a fundamental question: Can India finally build global consumer brands? This article explores what's different now, why a new class of Indian brands, from Titan and Zomato to Suta and Minimalist, believes it can go global, and what it will take to convert that belief into an enduring presence on the world stage. Why Indian brands stayed local for so long The current wave of global ambition among Indian brands marks a sharp break from decades of caution. For most of independent India's history, going global was rarely on the roadmap. Even successful consumer-facing companies opted to deepen domestic moats rather than seek international recognition. There were structural reasons for this restraint, and they weren't trivial. A big enough playground at home India's massive and underpenetrated domestic market gave little reason to look outward. Consumer brands had ample room to grow across languages, states, and income brackets, each as complex as entering a new country. Companies like Dabur, Marico, and Emami built empires by expanding regionally, not internationally. Consider this: in 2010, over 85% of revenue for listed Indian FMCG firms still came from India. Even now, companies like Asian Paints have near-total dependence on the domestic market, simply because India has been large and profitable enough. For promoters, the cost-benefit math was obvious: why invest in international markets with unknown dynamics when the next 200 million consumers were just moving from rural to urban? Weak infrastructure and global compliance gaps Even when demand existed abroad, largely among the diaspora, the supply-side readiness wasn't there. Packaging didn't meet international shelf standards. Cold chains and fulfillment were unreliable. Logistics costs were high, and Indian ports had a long turnaround time compared to Southeast Asian peers. In 2014, India ranked 54th on the World Bank's Logistics Performance Index. Manufacturers struggled with product stability, label compliance, and import regulations in different climates. Global retail demanded predictability, but Indian exporters, even with great products, couldn't always deliver it. For brands, this meant reputational risk. And for many, it simply wasn't worth the stretch. Promoters focused on execution, not identity A deeper, cultural factor was mindset. Indian business families, operating in low-trust, capital-scarce environments, were trained to optimise for survival. Their strengths were in cost control, supply chain, and distribution, not brand storytelling or cultural export. In contrast to Japan or South Korea, where national pride backed brand-building (Sony, LG, Hyundai), Indian businesses remained execution-led. There was little precedent or pressure to go global. Even when companies tried, they often entered through commoditised B2B exports (textiles, chemicals, pharma APIs) rather than brand-led consumer goods. Public markets penalised brand-led bets Until recently, even well-managed listed companies were punished for brand-building expenses. International forays were viewed as distractions. Marketing was treated as an overhead. There was no tolerance for negative cash flows in pursuit of global expansion. In 2010, advertising-to-sales ratios for India's top 10 FMCG companies averaged just 6-8%, among the lowest in Asia. By comparison, Chinese or Korean peers spent double building recall abroad. Capital markets expected consistency, not risk. In that world, expansion meant more distribution, not more imagination. India wasn't seen as a country of brands Finally, there was the perception problem. Globally, 'Made in India' was known for cost and scale, not culture or aspiration. While China built brand infrastructure with state support, and Korea exported entertainment with consumer goods (K-pop + K-beauty), India exported software and services, largely invisible products. Indian brands weren't taken seriously because they weren't framed to be. Even domestic success stories like Amul, Fabindia, or Titan didn't travel, not because they couldn't, but because they never positioned themselves to try. For decades, these five headwinds made global ambition seem impractical. But in the past 5-7 years, each force has either weakened or reversed. Today's Indian brand builder doesn't face the same constraints. And some are already proving that the world might be more receptive than ever. Where India's global brand breakout might begin Not every Indian brand is suited for global expansion. Categories rooted in hyperlocal taste, pricing sensitivity, or cultural specificity may remain inward-focused. But a handful of sectors where India has natural leverage, operational maturity, and export-ready appeal are already showing signs of traction abroad. These aren't just early moves; they signal the start of a structural shift. Mobility and engineering: Niche over mass If there's one brand that's proven India can build a global recall, it's Royal Enfield. Once a colonial relic, the company has become an aspirational mid-segment motorcycle brand, not just in India. In FY24, Eicher Motors exported close to 78,000 Royal Enfield motorcycles, accounting for nearly 12% of Eicher Motors' two-wheeler volumes. Local assembly units in Thailand, Brazil, and the UK now support market-specific products. Unlike mass-volume OEMs, Royal Enfield has succeeded by owning a niche: retro-styled, low-maintenance, torque-rich bikes ideal for leisure riders in Europe, South America, and Southeast Asia. This is a playbook that other Indian auto firms, particularly in electric two-wheelers or utility vehicles, are beginning to explore, though early stage. Beauty and wellness: Tradition meets trust The global clean beauty market crossed $20 billion in 2030, with consumers increasingly favouring products that combine natural ingredients with science and transparency. That's where India's Ayurveda heritage meets new-age formulation. Brands like Mamaearth and Minimalist have begun international expansion, leveraging high-margin products (60%+ gross margins), direct-to-consumer distribution, and diaspora familiarity. Minimalist now sells on iHerb and Amazon US, with a product range that blends clinical actives with minimalist packaging. Forest Essentials and Kama Ayurveda, while premium and slower-scaling, are building inroads in spa chains, boutiques, and hotels across Europe and the Middle East. What connects these brands is not just cost but cultural equity plus credibility. Eyewear and fashion: Owning the new middle Lenskart, with its recent acquisition of Owndays, now has access to 13 Asian markets and a physical presence in the UAE and Singapore. The company aims to become one of the top three global eyewear brands by volume in the next five years. Unlike luxury brands, Lenskart competes on tech-led experience, affordability, and speed, backed by in-house design and manufacturing. Its supply chain allows for global delivery within 2-4 days, and its AR/AI tools standardise optical care across borders. In fashion, brands like Suta, House of Masaba, and The Souled Store have become favourites among diaspora millennials and design-forward consumers abroad. Through Shopify storefronts and Instagram, they've found an audience that wants a slice of India — but on their own terms. Many report that 10-20% of their revenue now comes from international orders despite limited physical presence. Packaged food and alcohol: Slow but emerging India's food has always travelled, but its brands did not until recently. That's changing. Sula Vineyards, listed in India and present in over 30 countries, has become a poster child for premium Indian wine. It meets EU regulatory standards and has seen uptake in parts of Western Europe, Japan, and the US. While international revenue remains in single digits, the strategic direction is clear. Vadilal, known for its frozen desserts, now exports to over 45 countries. Products are modified for shelf stability and labelled to meet North American norms. Meanwhile, Haldiram's is aggressively expanding in frozen foods, and its SKUs now show up in mainstream US grocery chains. F&B still faces high barriers from regulation to taste adaptation, but brands that invest in compliance, distribution, and diaspora awareness are slowly carving out room. Consumer electronics: The surprise contender Perhaps the most unlikely success story is boAt. What started as a budget headphone brand has become the world's fifth-largest wearables company by shipment volume, as per Counterpoint Research (Q4FY23). While most revenue is still domestic, boAt now sells in the UAE, Nepal, and a few Southeast Asian markets. Its ability to integrate design, contract manufacturing (via Dixon, Kaynes), and low-friction distribution makes it a compelling player in emerging markets with aspirational but price-sensitive consumers. The real unlock will come if boAt can combine audio, smartwatches, and wellness into a cohesive lifestyle offering abroad, moving from being 'India's budget brand' to a functional, stylish alternative to Chinese and Korean incumbents. These sectors – mobility, wellness, fashion, food, and electronics – are India's beachheads. Not because they're trendy, but because they combine three key ingredients: What happens next depends not just on the brands themselves but also on how well they execute over the years, not quarters. The road ahead: What will separate winners from hype? India's global brand ambitions are real, but ambition alone won't sustain them. For every Royal Enfield or Lenskart that builds momentum abroad, there will be others that fizzle out after an initial burst of visibility. From an investor's perspective, the challenge is not just spotting what's going global but also what's doing so with durability, margins, and method. Categories with a structural advantage will pull ahead The first separator is category economics. Brands operating in sectors with inherent Indian leverage, such as low-cost manufacturing (boAt), ingredient credibility (Mamaearth), or distribution verticals (Lenskart), have a natural edge. In contrast, categories with complex regulatory hurdles, high localisation needs, or cultural opacity will expand more slowly or face higher burn rates. For example, personal care has far better export economics (60-70% gross margins) than packaged foods (~30-35%), where shelf life, adaptation, and regulation create friction. Smart investors will back categories where India's cost advantage doesn't dilute product perception, a fine balance that's hard to manufacture after launch. Margin headroom matters more than revenue growth Building a brand abroad is not a one-quarter game, as it's a capital-intensive, multi-year journey. That's why gross margin profile matters more than top-line growth when evaluating global expansion. Brands like Minimalist and Lenskart operate at 60%+ gross margins, which allows them to absorb overseas customer acquisition costs, returns, and warehousing. On the other hand, even a Rs 1,000 crore revenue company with 30% margins will struggle to scale global operations without constant fundraising or dilution. Investors should ask: Does the business have the operating cushion to experiment, fail, and try again globally without risking core profitability? Retention beats reach A common trap for D2C brands is early global visibility without retention. A spike in orders from the diaspora or through influencers can create vanity metrics, but if repeat rates don't hold, the bucket is leaky. Across D2C benchmarks, sustainable brands typically show repeat rates of 30-35% within six months, and CAC-to-LTV ratios under 3:1. These metrics are even more important in cross-border commerce, where logistics and returns cost 2-3x more than domestic. What matters isn't how many people tried the brand in Dubai or Toronto, it's how many reordered without a festival or discount. Global identity must be built, not assumed Indian brands historically led with product or price, while global brands lead with identity and aspiration. The transition from exporter to storyteller is hard but essential. Royal Enfield didn't win because it was Indian; it won because it understood what retro motorcycling meant in Argentina or Thailand. Forest Essentials sells Ayurveda in the UK not as tradition but as a premium ritual. boAt's success abroad will hinge not on being cheap, but on offering tech with style that fits urban lifestyles. Investors should look for companies that show early signs of localised messaging, international hiring, or product adaptation, not just export shipments. Patience will be rewarded, not hype Building a global consumer brand takes 10-15 years in most cases. Dyson, Uniqlo, and Shein all spent a decade scaling abroad before achieving profitability. Indian brands will need similar timeframes. Even now, most of the companies mentioned here, such as Lenskart, Mamaearth, Royal Enfield, boAt, derive less than 20% of their revenue from international markets. That number will rise, but slowly. What matters is that the systems, including supply chain, storytelling, capital, and customer understanding, are now in place. For investors, this means ignoring quarterly noise and focusing on long-term optionality. The next Shein may not emerge from India. But the next globally respected premium skincare line, smart wearable, or fashion-tech hybrid might. Closing thought India has long exported commodities, code, and capabilities. It may finally be ready to export brands, not just to its diaspora, but to discerning consumers in cities from Singapore to San Francisco. The brands that succeed will be the ones that compound not just capital, but cultural credibility. And for investors with a long-enough lens, this could be one of the most underappreciated structural stories of the next decade. Note: This article relies on data from the annual report and industry reports. We have used our assumptions for forecasting. Parth Parikh currently heads the growth and content vertical at Finsire. He holds an FRM Charter along with an MBA in Finance from Narsee Monjee Institute of Management Studies. Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
Mint
15-05-2025
- Business
- Mint
From milk delivery to modern FMCG - Chitale Bandhu now aspires for a bigger slice of the snack market
MUMBAI: For a company that started out transporting milk to Mumbai before independence, Chitale Bandhu now speaks a very different language—inventory optimisation, omnichannel strategy, and clean-label snacking. With a ₹265 crore capacity expansion complete and Sachin Tendulkar as its brand ambassador, the fourth-generation family business is reengineering itself into a modern FMCG challenger. From building bhujia machines in the 1990s to baking ₹10 namkeen bars in 2025, the Pune-based company is betting on automation, quality and scale to capture a bigger slice of India's ₹1 trillion salty snack market. 'We've added enough capacity to take us from a 1% to a 10% market share, but we're not trying to compete in the ₹5 space – we can't maintain quality at that price," said Indraneel Chitale, managing partner at Chitale Bandhu. While the company operates 90 franchise-run stores, many of them in Pune and Mumbai, with plans to reach 125 such stores this financial year. The focus is squarely on distribution. Today, 60% of the company's top line comes from its retail network of over 250,000 outlets across 11 states and two Union Territories. Franchise store sales contribute 30%, with exports and digital channels accounting for 7% and 3% respectively. 'We look at stores as real estate and brand presence. They help with visibility and enable quick commerce, but volumetric growth is coming from general and modern trade," Chitale said. Also Read | Temasek's pricey bite of Haldiram is a risky bet on India's consumer market To support this, the company has invested ₹330 crore since 2016 in expanding manufacturing and logistics. Of this, ₹265 crore was spent recently to add capacity that can support revenue of up to ₹1,500 crore. 'We plan to utilise that capacity fully over the next three years," he added. However, scaling up in India's price-sensitive and brand-cluttered snacking market is far from easy. Legacy companies Haldiram's, Bikanervala and Balaji dominate shelf space in both traditional and modern retail. Mass-market play Chitale's growth bet is rooted in smaller product stocks at mass price points. It recently launched mini bhujia rolls at ₹20 and is now scaling up Binge Bars, baked ₹10 namkeen bars aimed at what Chitale called the 'C and D category buyer." There are over a dozen variants in the pipeline, each designed to appeal to local palates. What Chitale won't do is dilute quality to hit the lowest price points. 'We realised that at ₹5, we can't deliver the kind of ingredients we use – groundnut oil, dairy fats, and no trans fats. So we dropped that plan entirely," he said. Instead, the focus is on value-added snacking and clean-label offerings. 'Nutrition per gram is the lens we're applying. Every product we launch must deliver better health without losing taste or affordability," he said. Experts said that mass consumption may be the opportunity, but it's also where the slowdown pinches first. And unlike the metros, where brand recall can drive premium purchases, the mass-market game is unforgiving on margins. Also Read | Private equity eyes fresh bite of regional food brands, repeat of Haldiram When rural demand weakens, sub- ₹20 snacks are the first to see drop-offs. Chitale's decision to stay out of the ₹5 price point, while deliberate, also limits its play in a market that's still extremely value driven. Chitale Bandhu is using quick commerce platforms not just as a sales channel, but as a demand predictor. The company watches city-level demand closely. If Q-commerce sales in a market like Kolkata or Jammu hits a certain threshold, it starts deploying on-ground sales teams and building out distribution in that region. This approach has helped Chitale open up new territories, especially where traditional distributors were hesitant to stock perishables. 'Q-commerce is giving us digital visibility and data. If we can sell 120 packs a day in a market we've never entered, that's proof of concept," Chitale said. Q-commerce is a double-edged sword. Logistics costs remain high, and brand discoverability can be inconsistent. It's also unclear whether consumers will continue to pay a premium for speed in smaller towns and tier-2 cities. Beyond the diaspora Overseas expansion is another growth lever. The company exports its products to over 60 countries and runs 12 stores in the US, two in the UAE, and two in Australia. That number is set to grow: the US store count is expected to double to 25 this year. The strategy is shifting from selling to Indian-run grocery stores abroad to cracking mainstream retail. The company is already supplying to Coles in Australia and is in advanced talks with a leading US supermarket chain. To enable this, Chitale has set up subsidiaries in both countries. 'We want to go beyond the diaspora. That means adapting to global retail standards not just in compliance, but in packaging, positioning, and category innovation," Chitale explained. While overseas manufacturing isn't on the table just yet, the company is open to technology partnerships. 'We're interested in tech transfers that let us manufacture in India, but sell products tailored for global markets," he said. Consultants are of the view that mainstreaming Indian snacking will take more than good distribution, including brand familiarity, smart packaging, and marketing muscle. Also Read | Can an early summer thaw India's consumption slowdown? One of the brand's strongest moats is its perception of quality and transparency. During the pandemic, when a rumour circulated that factory workers were infected with covid-19, Chitale went live on Instagram from the plant to address concerns head-on. That moment cemented the brand's belief in showing – not just telling – its commitment to safety and hygiene, said Chitale. Its upcoming integrated plant in Ranjangaon will feature visitor galleries and consumer-facing education zones. 'We want people to see how our products are made. Once they trust the process, repeat purchase becomes easier," says Chitale. That trust is also what drove the company to onboard Tendulkar as brand ambassador in 2023. 'He brings authenticity and pan-India recognition, especially in regions where our brand recall is low," he added. No funding pressure Unlike peers such as Haldiram's, which is exploring private equity partnerships, Chitale Bandhu remains fully family owned. There are no plans to raise external capital. 'Unless we plan a big bang global manufacturing play, we are comfortable funding our own growth," Chitale said. For now, the playbook is clear: scale through distribution, innovate for mass appeal, and preserve trust through transparency and quality. In an industry crowded with regional titans and new-age D2C brands, Chitale Bandhu is trying to carve out a rare space, one that blends tradition with technology, nostalgia with next-gen snacking.
Mint
13-05-2025
- Business
- Mint
VC funding wave gains momentum as dealmaking rebounds, but caution prevails
Mumbai: A wave of fundraising is sweeping through India's venture capital landscape as firms like Nexus Venture Partners, Lok Capital, Chiratae Ventures, Peak XV Partners, and Fireside Ventures gear up to raise fresh capital, but with leaner fund sizes and more targeted approaches. Funds such as WEH Ventures and Avataar Venture Partner are also expected to hit the market in the coming months, while Arkam Ventures is reportedly in the final stages of closing its latest fund, multiple people familiar with the developments told Mint. While dealmaking is resuming after a lull, the fundraising strategies reflect a more selective and conservative approach. Investors are recalibrating amid valuation corrections and tougher exit conditions, experts said. Several funds have pivoted toward leaner sizes as the funding euphoria of previous years gives way to a more measured approach. This has led several firms to scale down fund sizes or maintain them at previous levels, a stark contrast to the aggressive raises from the years before. Read this | Private equity eyes fresh bite of regional food brands, repeat of Haldiram 'India's venture scene is suffering from too much money and too few investable targets. Funds raised during the 2021 boom have left about $20 billion of dry powder on the sidelines," said Siddharth Mody, partner at JSA Advocates & Solicitors. 'Managers are now three years into their investment periods yet have deployed barely half of what they raised because many growth-stage founders are still anchored to peak-cycle valuations while revenue curves trail projections." This mismatch has created a 'deal-making bottleneck," with term sheets concentrating around a handful of breakout stories while other startups struggle to secure funding, Mody added. 'Limited partners see this mismatch and are in no hurry to write new cheques. That's why India-focused fundraising collapsed to $2.7 billion in 2024, its lowest since the pandemic, even though the macro backdrop is healthy," he said. 'General partners are responding by shrinking vehicle sizes, extending deployment timetables, and keeping larger follow-on reserves for the few companies that merit additional capital. Until exits accelerate and pricing expectations normalise, expect leaner funds and a slower tempo of initial investments. Dry powder is no longer a growth accelerant but is rather an opportunity cost weighing on returns," Mody explained. Fund moves Nexus Venture Partners is eyeing a $500-600 million corpus for its eighth fund, a slight decrease from its previous $700 million fund that invested in India and the US, the people cited above said. Chiratae, meanwhile, is looking to raise over ₹2,000 crore to back Indian startups, while Lok Capital plans a $250 million fifth fund, they added. Fireside Ventures is also gearing up to raise $230 million (around ₹2,000 crore), maintaining the corpus size of its third fund raised in 2022, according to news reports. Nexus did not respond to Mint's request for comment, while Arkam and Chiratae declined to comment. 'We are in the final stages of investing from our fourth fund. We have just launched our fifth fund and have begun discussions with LPs (limited partners). It is likely to be about $250 million largely led by our existing LP base although we are hoping to bring in new investors as well," said Venky Natarajan, co-founder of Lok Capital, confirming the development. Read this | Choppy markets take toll on pre-IPO deal talks The fund expects a first close by mid-2026 and will also seek to bring back some Indian LPs, although its investor base remains predominantly overseas, he added. Over the years, Lok Capital has pivoted towards growth-stage investments in financial services, food and agriculture, climate, and healthcare, sectors with clearer revenue paths and profitability potential. 'We started with an average ticket size of about $2 million in our first fund to $10 million in Fund IV. With our new fund, we plan to do $15-20 million investments and aim to increase our focus on the consumer space, as we see a lot of opportunities there," Natarajan said. WEH Ventures, known for backing Apps for Bharat, Jar, Smallcase, and Pratilipi, is also poised to launch its next fund, driven by inbound interest from existing domestic LPs and international investors. 'We are seeing interest from our existing domestic investor base and inbound interest from other international LPs as well…India has performed well in terms of exits, and valuations have corrected," said Rohit Krishna, partner at WEH Ventures. He did not disclose the fund size. 'It's ultimately a question of which funds they want to invest in based on distributions rather than whether to invest in this asset class or not," Krishna added. Avataar Venture Capital, which raised its second $350 million fund in 2022 to invest in Enterprise/AI software, deeptech, and B2B2C business models, is now preparing to raise its third fund. 'While we have not decided on the exact size, we will never do a billion-dollar fund as it makes exits more challenging. We have stuck to around $350 million for our first two funds and aim to be in that range keeping in mind the kind of distributions we want to give our LPs," Avataar's founder Mohan Kumar told Mint. Blume Ventures and Peak XV are also in discussions to raise new funds. Blume, which has invested in Battery Smart, Purplle, and Unacademy, is expected to maintain its next two funds at about $290 million, in line with its previous corpus. Read this | India's mid-market gets a boost as Trident Growth launches ₹2,000 cr maiden fund Peak XV, meanwhile, is eyeing a $1.4 billion India-Southeast Asia fund, its first since separating from its parent firm. The new fund is expected to be raised by the end of the current fiscal year and may also invest in other funds launched by other former company executives, Mint reported last month. This comes after Peak XV cut the size of its previous $2.85 billion fund by $465 million last year to reduce its cost of capital. For context, investing in funds is a common strategy for new VC and PE firms to enter a market. Several global investors made LP investments in Indian funds before making direct investments, using these LP stakes to understand the market. The surge in fundraising activity aligns with a broader revival in Indian private equity and VC markets over the past six to eight months. Several firms, including Kedaara, ChrysCapital, Stellaris Ventures, India Quotient, Sixth Sense, Prime Ventures, Accel, A91 Partners, Cornerstone VC, and Bessemer Venture Partners, have launched new funds. 'The Indian market is fairly large and will continue to expand. While there has been some correction even in the number of GPs who have been able to raise follow-on funds, the market is very deep, and the investable opportunity is large," said Lok's Natarajan. Market mood While several firms are returning to the market, overall fundraising remains subdued. According to a report by Bain & Co., while exits in 2024 rose to $6.8 billion, total fundraising dropped by 35% to $2.7 billion, the lowest since 2020. This divergence suggests that despite increased exit activity, LPs are exercising caution, likely due to accumulated dry powder and ongoing volatility in public markets. These exits came on the back of 7x surge in returns from initial public offerings (IPOs) fuelled by investors seeking liquidity as they approach the end of their fund life cycles and a recovery in key tech stock valuations, regulatory reforms, and a pent-up IPO backlog. Some prominent startup IPOs from the last year include Ola Electric, Swiggy, Blackbuck, Unicommerce, FirstCry, and Ixigo. Also read | Venture cautiousness: Why Blume, other VCs are treading safe despite IPO wave The report noted that maiden funds also gained prominence last year, comprising nearly a third of all venture/growth capital raised. These funds are increasingly targeting specific themes such as sustainability, defence, and gaming, indicating that even as overall capital becomes scarcer, sector-specific strategies are gaining traction.
Time of India
29-04-2025
- Business
- Time of India
PepsiCo expands focus on India's snacks market amid rising local competition
PepsiCo has flown to India more than two dozen senior executives of its snacks business from around the world, with company chairman Ramon Laguarta leading the contingent. Such a large team of PepsiCo Snacks is visiting India for the first time, and it comes as the local market is exploding with regional players, and direct-to-consumer companies are eating into the share of established brands. Quick commerce that allows for easy product discoverability and delivery within 15 minutes, is pushing the change. PepsiCo's local rival, Haldiram, is expected to expand after raising $1 billion from private equity investors. The US major sees India as a key growth driver at a time when it is facing a slowdown in large markets, including at home. The general manager-level executives will be meeting in Hyderabad, as well as making plant and market visits this week, said people in the know. A PepsiCo spokesperson confirmed the India visit, saying, 'PepsiCo conducts meetings for its business executives across markets to facilitate learning and the exchange of best practices,' in an email response to ET's questions. 'India, with its significant capabilities, including the India capability centre, is a vital market for us,' PepsiCo spokesperson said. Last week, the New York-based company, which also makes Pepsi cola and Tropicana juice, reported that its international convenience foods business grew 2% in January-March, driven by India, Brazil, Egypt and Turkey, with Laguarta highlighting that India 'is in a good place.' The company does not provide country-specific numbers. As first reported by ET last December, PepsiCo's headquarters has identified India as one of its 13 'anchor markets,' and it expects these to contribute more than 85% to its future growth amid some headwinds. With its beverages business in India being outsourced almost entirely to RJ Corp-owned Varun Beverages , the company's core focus is now snacks. It has four local manufacturing plants, in Uttar Pradesh, Punjab, Maharashtra and West Bengal. Its current India head, Jagrut Kotecha, has been almost entirely associated with the snacks business during his threedecade tenure. Small is getting bigger Snacks, a category where PepsiCo used to dominate till five years ago, is now teeming with regional players and direct-to-consumer brands. 'We are leveraging quick commerce platforms to deliver even in remote pin codes, sell at lower prices and give higher retailer margins,' said the chief of a regional snacks brand, requesting not to be named. Haldiram, Bikanerwala, ITC , Parle, Balaji Wafers, Crax and Yellow Diamond maker Prataap Snacks are among the brands competing for a share in India's `47,000-crore snacks market.
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Business Standard
25-04-2025
- Business
- Business Standard
Alpha Wave Global, IHC seek CCI nod to acquire minority stakes in Haldiram
Alpha Wave Global, and IHC (International Holding Company) have sought the Competition Commission of India's approval to acquire minority stakes in Haldiram Snacks Food. Alpha Wave is a global investment company and United Arab Emirates-based IHC is one of the world's largest investment companies having a USD 250 billion market valuation and listed on Abu Dhabi Securities Exchange. "The proposed transaction entails the acquisition of less than 10 per cent of the issued and paid-up equity share capital of the target (Haldiram Snacks Food Pvt Ltd)," said a notice filed with the Competition Commission of India (CCI). The proposed combination, classified as an acquisition of shares and voting rights, falls under specific clauses of the Competition Act, it added. Haldiram Snacks Food is the combined business of the Haldiram family -- Delhi and Nagpur. In its submission to the CCI, Alpha Wave Ventures II LP and Alpha Wave IHC CI, LP (acquirers) said that the exact delineation of the relevant market may be left open as the proposed transaction does not give rise to any competition law concerns, irrespective of the manner in which the markets are defined. However, for the assessment of the proposed transaction the relevant markets may be considered either broadly -- as the market for manufacturing and sale of packaged food products in India -- or more narrowly, segmented into specific categories such as snacks, sweets, ready-to-eat meals, and bakery products, the notice said. Last month, Haldiram Snacks Food, the country's leading snack and food brand, announced that it is selling its stake to two new investors -- IHC and Alpha Wave Global. The announcement came a day after Haldiram confirmed the acquisition of a minority stake by Singapore-based global investment firm Temasek. According to industry sources, IHC and Alpha Wave are collectively acquiring a minority stake of about 6 per cent stake in Haldiram Snacks Food at a valuation of USD 10 billion (around Rs 85,000 crore), which is considered to be the largest for the Indian packaged food industry. Earlier, the National Company Law Tribunal had approved the process of the merger of the two sides and other regulatory approvals are awaited. Established in 1937 as a retail sweets and namkeen shop in Bikaner, Rajasthan, by Ganga Bhishen Agarwal, Haldiram products are sold in over 80 countries. In 2022, it was announced that the packaged snacks businesses of Delhi-based Haldiram Snacks and Nagpur-based Haldiram Foods International would be first demerged and then merged into an entity named Haldiram Snacks Food.
