MAM
Leo Burnett wins PepsiCo India’s creative mandate
Mumbai: PepsiCo India has selected Publicis Groupe agency Leo Burnett India as its creative partner to drive long-term growth and momentum across its foods and beverages portfolio.
As part of the partnership, Leo Burnett will be responsible for the company’s creative and digital mandate across all brands in the country. The account has been won after an intense multi- agency pitch.
Speaking about the appointment, PepsiCo India senior vice president George Kovoor said, “At PepsiCo India, our aim is to create innovative and purposeful consumer campaigns that help us engage effectively with our consumers. With an intent to further accelerate our marketing efforts, we are delighted to welcome Leo Burnett as our new creative agency. Their strategic thinking along with robust creative & marketing capabilities make them the right partners for our next phase of growth.”
Leo Burnett CEO, South Asia & chairman BBH India Dheeraj Sinha said, “We are overwhelmed with the trust posed in us by PepsiCo India in aligning their portfolio with us. PepsiCo’s business in India is witnessing a tremendous growth journey and we are looking forward to being their partners in accelerating this momentum. The mandate offers us a wonderful opportunity to further create groundbreaking work, and integrate culture, creativity, data and technology in campaigns, going forward.”
Brands
Kwality Wall’s reports standalone losses following strategic HUL demerger
Ice cream major faces Rs 64 crore Ebitda loss amid commodity inflation and muted Q3 sales
MUMBAI: Kwality Wall’s (India) Limited (KWIL) has released its first set of financial results as a standalone entity, revealing a challenging start to its independent journey. Following its successful demerger from Hindustan Unilever Limited (HUL) on 1st December 2025 and its subsequent listing on 16th February 2026, the company is navigating a transition period marked by structural changes and high input costs.
For the quarter ended 31st December 2025, the company reported revenue of Rs 222 crores. Despite the revenue base, the bottom line was impacted by several factors, resulting in an Ebitda loss of Rs 64.2 crores. When calculated on a Pre-IND AS 116 basis, the Ebitda loss stood at Rs 83.8 crores.
Organic Sales Growth (OSG) declined by 6.5 per cent year-on-year during the quarter. Volume growth, however, saw a marginal increase of 1.2 per cent. The company reported a gross margin of 41.5 per cent. Additionally, exceptional expenses amounting to Rs 94 crores were recorded, primarily linked to non-recurring costs during the transition phase.
Performance across portfolios and channels was mixed. Within the impulse portfolio, brands such as Magnum and Cornetto recorded mid-single digit volume growth, indicating steady demand in on-the-go consumption. However, the in-home portfolio, which includes take-home packs, experienced muted consumption. The company is planning a relaunch of this category with improved offerings ahead of the 2026 season.
Quick commerce (Q-Com) continued to emerge as a strong growth driver, delivering robust double-digit growth during the quarter. Meanwhile, the company also expanded its physical distribution network by increasing the number of company-owned cabinets across markets.
Margin pressure during the quarter was driven by a combination of one-off factors and broader cost inflation. Gross margins were impacted by around 600 basis points due to trade investments made for stock liquidation. Additionally, cocoa price inflation contributed to another 400 basis points of pressure on margins.
Deputy managing director Chitrank Goel attributed the muted performance partly to prolonged monsoons and transitional challenges linked to the GST framework. Operating expenses also increased as the company invested in establishing its standalone supply chain, operational systems and corporate infrastructure following the demerger.
Looking ahead, the management remains focused on a volume-driven growth strategy. To restore profitability, the company has initiated a cost productivity programme aimed at reducing non-consumer-facing costs. It is also working on building regional manufacturing networks to optimise logistics expenses and improve operational efficiency.
The commodity outlook for the near term remains mixed. Dairy prices are expected to remain firm due to tight supply conditions and rising fodder costs. Sugar prices may also move higher following increases in the Minimum Selling Price (MSP). While cocoa prices have moderated recently, currency depreciation has offset some of the potential cost relief for the company.
