Weekly FMCG Update: Temasek invests in Haldiram’s, Rebel marches on, tea exports peak

Temasek to buy 10% in Haldiram’s for INR 8,500-crore
Temasek, the Singapore government’s private equity arm will acquire a 10% stake in Haldiram’s parent company, Haldiram Snacks Food, according to leading business portals. WhatPackaging? readers will recall that in May 2024, Blackstone, the Abu Dhabi Investment Authority, and Singapore’s sovereign wealth fund had submitted a bid to buy a majority stake in the company.

Rebel may bring more global brands to India
Rebel Foods, the Internet-based food company that is heading for an IPO, is in talks with global food brands to expand in India. According to Ankush Grover, co-founder and CEO for India, the Middle East and North Africa, the company (currently with 12 brands), is engaging with more global names, following the addition of Wendy's in 2023. Grover highlighted India’s growing food consumption and the maturing consumer market, making it a prime location for expansion. Rebel Foods became Wendy’s master franchisee in 2023 and has since scaled the brand.

PepsiCo targets revenue growth in India
PepsiCo plans to double its revenue in India over the next five years, viewing the country as a key market. India is a top-three market for PepsiCo, contributing to double-digit global growth. The company has invested in greenfield plants in Uttar Pradesh and Assam and will open two more facilities, including one in the southern region, to meet growing demand.

Unilever is optimistic about the second half of the year
Unilever’s CEO, Fernando Fernandez, remains confident in India’s economic outlook for the second half of the year, despite challenges from high food inflation. He highlighted the growing number of affluent and economically active households in India, expressing optimism about the country’s long-term growth potential. Fernandez also noted the evolving consumer preferences, especially in the beauty and quick commerce sectors, which present significant opportunities for the company in the future.

Indian Tea exports reach peak
Indian tea exports hit a decade-high of 255 million kg in 2024, driven by demand from the UAE, Iraq, and Russia, reflecting a 10% increase from 2023. Prices rose by 10%, benefiting producers. However, concerns grow over blending with cheaper Kenyan tea, with imports surging 288%.

Beer companies forecast summer growth
Beer companies are optimistic about summer 2024, expecting 7-10% growth despite disruptions from unseasonal rains and the 2024 election. Beermakers, including United Breweries and AB InBev, foresee rising demand, though concerns over potential state excise hikes remain. The India Meteorological Department predicts above-average temperatures, which could boost sales. However, state excise changes could cause logistical challenges, with 80% of beer sales dominated by Heineken, AB InBev, and Carlsberg. The Brewers Association expects 430-million cases in 2024-25.

Quick commerce marches on
Quick commerce has taken the grocery world by storm. Now, it makes for 70–75% of all eGrocery orders. This is a significant rise from 35% in 2022.