Brands
GD Foods to expand its presence in the Eastern markets
KOLKATA: The fast-moving consumer goods (FMGC) company, GD Foods Manufacturing (India) that has two brands – Tops and Royal Taste – under it, plans to expand in the eastern region.
In the present fiscal (2013-14), the company has earmarked four per cent of the turnover on the marketing spend that would include on-air and on-ground activities. However, in the next fiscal the spends would increase marginally, going up to five per cent.
The company wants to expand its presence further in the eastern region by increasing the spends as well as by entering with the Royal Taste products beginning with Kolkata market in the next five-six months.
The company has no plans to set up its manufacturing base in the eastern region but in order to capture the markets of Bihar, Odisha, Jaharkhand, it is looking at the best distribution possibilities.
In the current fiscal, the company spent around Rs 8 crore on marketing and advertising initiative.
Also, GD Foods which witnessed a turnover of Rs 153 crore in the last fiscal (2012-13), is confident to cross sales of Rs 200 crore in the current fiscal 2013-14. “Our turnover is likely to be higher than Rs 200 crore in FY14,” said GD Foods VP, Marketing Monika Solanki.
Before foraying in the Kolkata market, the company is looking at hitting 360 degree marketing campaigns including outdoor media, regional television and newspapers papers. “Our own team is working on below-the-line activities that also include on-shop activities,” she added.
The flagship company of the group – Tops – with key consumer products categories like jam, tomato ketchup, pickles, instant mixes, custard powder, culinary sauces, vermicelli, jelly among others has crossed 167 stock keeping units. “Tops pickles and culinary sauces are the main categories of products that largely drive GD Foods,” said Solanki.
A media and brand expert from the eastern region says that because of Tops’ popularity, the company will have to be really innovative to make a mark with Royal Taste. “If the company is looking to enter the eastern region with ‘Royal Taste’, it has to do innovative campaigns to win over the existing national and regional players in Kolkata and eastern region,” said the expert.
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.
