Snapshots of Food Industry News
BigBasket to Increase Number of E-vans and E-bikes by 2020
BigBasket currently has 150 e-vans and 50 e-bikes, however, the online supermarket plans to increase this numbers to 1,000 e-vans and 2,000 e-bikes by 2020. BigBasket had first introduced electrical vehicles in Delhi/NCR in 2016 for its last-mile delivery operations there.
Using electronic vehicles for its operations has helped BigBasket lower its delivery costs associated with delivery of products.BigBasket’s operations have now expanded to 26 cities and they tackle about 2.5 lakh customer orders per day.
By using e-vehicles BigBasket has also displayed its commitment towards carrying out its operations in a sustainable manner. Their use of e-vehicles has enabled them to contribute positively to the environment and also to make substantive savings. BigBasket is also fulfilling the governments push for use of e-vehicles. By using these vehicles BIgBasket has also been helpful in addressing issues related to the use of e-vehicles for commercial purposes.
Advent International Set to Acquire DFM Foods
Home-gown snacking company DFM Foods known for its Crax brand is likely to be taken over by Advent International. Advent, the US headquartered fund is likely to buy out the promoters as well as Westbridge, an existing investor in DFM Foods and which owns a quarter of the company. DFM Foods was created from Delhi Flour Mills which was launched by RP Jain in 1993. The product portfolio comprises of corn rings, corn puffs, cheese balls, corn and potato sticks and about 13 namkeen variants.
The company’s sales are mostly generated from CRAX corn rings, CRAX namkeen and NATKHAT. DFM Foods has a strong presence in north India which contributes to 75 percent of sales. They have a small presence in south and their products also sell in central and western regions. Over the last 10 years the company has grown at a CAGR of 20.9%. Sales have increased from Rs.72.2 crore in 2009-10 to almost Rs.483 crores in 2019.
Patanjali Makes Available Rs 3,438 crore to Settle Ruchi Soya Dues
Baba Ramdev-led Patanjali Ayurved got the National Company Law Tribunal (NCLT) approval to acquire Ruchi Soya. They are all set to infuse over Rs 3,438 crore as equity and debt to settle dues to creditors of the debt-laden Ruchi Soya. Out of this Patanjali will infuse Rs 204.75 crore as equity and Rs 3,233.36 crore as debt.Another Rs 900 crore will be infused through subscription of non-convertible debentures and preference shares in the SPV. It will also provide credit guarantee of nearly Rs 12 crore.Ruchi Soya Industries owes around Rs 9,345 crore to financial creditors.
On April 30 this year, a committee of creditors had approved the Patanjali group’s Rs 4,350 crore resolution plan to take over Ruchi Soya and its edible oil business.The bid, approved by the NCLT, is binding on Ruchi Soya as well as its employees, members creditors, guarantors and other stakeholders involved. With acquisition of Ruchi Soya, Patanjali will become a major player in soybean oils and other products.Ruchi Soya has many manufacturing plants and its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.
Burger King India to Receive Rs. 45 Crore Capital from Everstone
Parent company Everstone has provided Burger King India with a capital infusion of Rs.45 Crore. The company will also receive a loan facility of Rs.150 crore. The funds will be utilised for opening new stores and refurbishing existing outlets. After the fresh infusion the paid-up capital now stands at Rs.366.48 crore. Since the existing authorised capital was insufficient to meet business requirements, Burger King India has also increased its authorised capital to Rs.405 crores. This indicates that there could be another round of infusion. Since loan of Rs.150 crore has also been made available over a period of 12 months, it seems that Everstone is confident of Burger King India generating cash flow in the near future.
SnacAtac launches Cornado in Gujarat and Mumbai
Ahmedabad-based Grainspan Foods, SnacAtac brand has launched their premium corn snack Cornado in Gujarat and Mumbai. SnacAtac is a new-gen snack brand and Cornado is the first product of the brand and the name Cornado, combines the words corn and tornado.The packaging also depicts a tornado of corn and a burst of flavours. Live, bold and peppy colours have been picked for each flavour for easy visual recall.Cornado is targeted at the youth and generation next and is filled with the goodness of corn, a crackling crunch, and irresistible flavours.The snack has zero trans-fat, is a rich source of calcium, high in protein, and made with natural ingredients.