MAM
Snapdeal opens 130 new distribution hubs across India
Mumbai: E-commerce marketplace Snapdeal announced that it has opened 130 new distribution hubs across all of India since January, covering 26 states and two union territories. The expanded network is designed to cater to the surge in demand ahead of the festive season starting in India from early October.
The e-tailer further shared that the maximum number of these hubs are located in Maharashtra, Karnataka, Telangana, and Uttar Pradesh. In addition, Snapdeal has augmented its logistics network in Jammu & Kashmir and in the North-East.
The network expansion serves the growing demand for online shopping from smaller cities, said the e-tailer, such as Baramulla (J&K), Saharanpur (Uttar Pradesh), Khammam (Telangana), Alwar (Rajasthan), Sambalpur (Odisha), Tumkur (Karnataka), Latur (Maharashtra), Dimapur (Nagaland) and is designed to speed up deliveries for customers in these cities and in surrounding areas.
“The new hubs are located in areas where there is either growing buyer demand or higher seller concentration. The new facilities are designed towards rapid pick-ups from sellers and faster deliveries to buyers”, a Snapdeal spokesperson said. “The network expansion will also reduce the distance that some of our shipments travel by helping fulfill some of the demand from within the region,” the spokesperson added.
With the addition of these new hubs, Snapdeal now serves over 26,000 pin codes, reaching over 90 per cent of Indians across India, including metros, tier 1 & 2 cities, and most of tier 3 and 4 towns of India, stated the e-tailer.
The growing importance of online consumers from India’s smaller cities in driving India’s e-commerce growth was highlighted in a recent report by global consulting firm Kearney. The report shared that aspiring & mass households earning less than Rs 10 lakh per annum account for nearly 70 per cent of India’s non-food, value-driven retail demand. However, this segment today accounts for only 16 per cent of value e-commerce demand. This is expected to grow to 38 percent by 2026 and to nearly 50 per cent of value e-commerce demand by 2030.
Growing internet adoption and whittling away of resistance towards online shopping during the pandemic is driving online adoption in this segment. The Gen-Z users in India’s smaller cities are digitally savvy and they are joining the millennials as independent shoppers, which is expected to accelerate the growth of value e-commerce in India.
The rise of value-conscious shoppers, especially beyond the bigger cities in India is expected to be one of the key drivers of value e-commerce growth in India, the Kearney report added.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
