MAM
Misleading ads’ celebrity brand endorsers may be penalised
NEW DELHI: The Government has said that a Parliamentary Committee’s recommendation of penalties against against endorsers of misleading advertisements was under consideration.
The Parliamentary Standing Committee on Food, Consumer Affairs and Public Distribution had recommended a fine of Rs One million and imprisonment up to two years or both for first time offence and fine of Rs 5 million and imprisonment for five years for the second time offence for celebrity endorsers.
The Committee had made the recommendation while examining the Consumer Protection Bill 2015, minister of state for consumer affairs, food and public distribution C R Chaudhary told the Parliament.
The Committee had recommended stringent provisions to tackle misleading advertisement as well as to fix liability on endorsers / celebrities.
Replying to another question, he said the Department of Consumer Affairs has launched a portal “Grievance against Misleading Advertisement (GAMA)” where a consumer can lodge a complaint against a misleading advertisement.
4400 plaints of misleading ads since Mar ’15
A total of 4438 complaints have been received since March 2015 through this portal. The Advertising Standards Council of India (ASCI) processes these complaints according to its Code.
The ASCI and the Ministry had signed a memorandum of understanding in this regard.
If a complaint is upheld, ASCI takes up the complaint with the company / agency concerned either for withdrawal or modification of the advertisement. In case of non-compliance of its orders, ASCI forwards the complaints to the regulators concerned for taking appropriate action.
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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.
