NTPC Green Energy Ltd has signed an agreement with NREDCAP to set up renewable energy projects worth Rs 2 lakh crore, Andhra Pradesh Chief Minister N Chandrababu Naidu said.

NTPC Green Energy Ltd (NGEL), the renewable energy arm of power giant NTPC, has recently launched its Rs 10,000 crore initial public offering (IPO) with a price band of Rs 102-108 per share.

NGEL has signed a joint venture with NREDCAP (New & Renewable Energy Development Corporation of Andhra Pradesh) to set up renewable energy (RE) projects worth Rs 2,00,000 crore in Andhra Pradesh, Naidu said in a post on X on Thursday.

The collaboration will focus on developing 25 GW solar/wind, 10 GW pumped storage projects (PSPs), and 0.5 MMTPA green hydrogen, the chief minister added.

“This historic project will create over one lakh jobs and position our state as a renewable energy leader at the forefront of India’s green energy revolution,” Naidu said.

Glasafe’s journey began in September 2023 with a simple yet powerful vision from its co-founders: to craft a lifestyle, not just launch another product in the market. This guiding principle shaped every decision, defining the brand’s journey.

As Kushal Choukhany says: “We’re not in the business of selling just glass bottles or tiffins; we’re here to sell you a lifestyle.” This ethos sets Bengaluru-based Glasafe apart, focusing on elevating everyday experiences through glassware that merges elegance with function. The co-founders, Kushal Choukhany, Anshul Choukhany, and Yash Agarwal, did not rush the process. Every product was meticulously crafted, with months spent perfecting each design before entering the market.

From the minute the first prototype was created, they realised they were on a mission to transform everyday essentials into symbols of elegance, consciousness, and elevated living. “We wanted Glasafe products to make you feel different, to elevate your lifestyle above the ordinary. When you use a Glasafe bottle, it’s not just about the functionality; it’s about the experience.”

The brand identity and driving forces

The name ‘Glasafe’ blends of ‘glass’ and ‘safety,’ capturing the brand’s core essence. Glasafe aims to make every product an experience, with glassware that is stylish and safe for everyday use. For instance, glass water bottles are built with an ergonomic grip that fit right in your hand, making them usable and stylish.

From the highly durable borosilicate glass to leak-proof lids, and the non-slip silicone sleeve, each detail is designed with the user in mind.

“We’re obsessed with one thing: quality, quality, and quality,” Choukhany says. “This obsession has been our driving force, ensuring that every product we release sets a new standard.”

Glasafe is a 100% designed-in-India brand that collaborates with talent from across the country. The co-founders feel that true workmanship cannot be rushed, which shows in their thorough approach. “Every curve, lid and sleeve is refined with the highest level of detailing. Your experience is what defines us,” Agarwal says.

The company has “elevated over 1,00,000 unique lives, with a staggering 30% repeat order rate”. Within just six months of launch, Glasafe achieved an ARR of Rs 250 million, a testament to its commitment and the market’s response. Their vision isn’t tied to numbers. “Our home run isn’t a sales figure; it’s about how many lifestyles we’ve elevated,” Choukhany says.

Glasafe aims to go beyond building a brand; it wants to become an integral part of an elevated lifestyle. “We’re not just offering glassware; we’re becoming a part of your story—whether it’s a conversation starter at gatherings, a choice for healthier living with the shift from single-use plastic to glass, or a step in upgrading from the ordinary to the extraordinary. Every Glasafe product is crafted with this intention, to not just meet but enhance everyday moments, reflecting a life lived with grace, intention, and a desire for something better,” Anshul says.

From the beginning, the company understood the significance of being where its customers were. Leading ecommerce platforms such as Amazon, Flipkart, Ajio, Myntra, Tata Cliq, Pepperfry, Blinkit, Zepto, Nykaa Fashion, and others provide an assortment of Glasafe’s range. This extensive online presence has ensured that customers across India can easily access Glasafe products.

A vision for the long run

The founders are focused on long-term impact that endures for years. “We are here for the long game, and we are here to win,” Anshul says. The brand’s focus remains unwavering: providing unrivalled quality while elevating lifestyles, one glass at a time.

The global glassware industry is valued at Rs 48,000 crore, and Glasafe aims to be a significant contributor by 2027-28. The brand’s next big move? Opening experience centres across India and beyond.

“We envision a world inside our bottle,” Choukhany says. “At these experience centres, customers can see, touch, and feel the essence of the brand. These will provide an immersive experience into the lifestyle we have crafted.”

Shares of Honasa Consumer, the parent company of beauty and personal care brand Mamaearth, fell below its IPO issue price, closing around Rs 225 apiece on Friday. 

Once a glowing unicorn trying to compete with legacy players like HUL, Marico, and ITC, Mamaearth’s parent Honasa was valued at Rs 10,425 crore or $ 1.25 billion at the upper band of its IPO. However, the omnichannel beauty and personal care player’s market capitalization currently stands at Rs 7308.5 crore. 

The decline in shares follows the company’s second-quarter earnings report, leading to a sharp drop in stock price.

Shares of Honasa Consumer plummeted below the company’s IPO issue price of Rs 324, after falling more than 20% on Monday, November 18. 

The stock hit a lower circuit limit on Monday , before recovering marginally from the sell-off. The stock closed at Rs225, showing slight recovery but still significantly lower than its IPO price of Rs 324.

What went wrong?

Things turned sour for the Varun and Ghazal Alagh-led company after it admitted to more than expected impact from its inventory correction project on its second quarter earnings. The company’s performance was heavily affected by Project Neev, a general trade distribution transition that was launched to improve margins. 

Under Project Neev, Honasa Consumer aimed to streamline its distribution network by removing the two-layered channel partner structure, which included super-stockists and sub-distributors in the top-50 cities. This transition was meant to simplify operations and improve efficiency by switching to a single-layered distributor structure.

So far, the company has successfully completed the transition in 70% of these cities, but the restructuring has contributed to operational disruptions and an inventory overhang, impacting its financial results. 

Project Neev, which is part of Honasa Consumer’s broader House of Brands strategy, aims to accelerate its omnichannel plans and streamline its distribution network. This shift would enable the brand to be closer to the consumer, allowing it to gather more accurate data on consumption behaviour and better understand product sales.

“The type of distribution system we have had, we have ended up carrying relatively higher inventory in the system compared to other industries, which does take investment from our distribution system into our inventory rather than in-market and in-market resources,” Varun Alagh, Co-founder and CEO, Honasa Consumer, had noted during the company’s first quarter earnings call. 

Inventory Correction goes south

The company had initially estimated that this would have an impact of around 150 basis points (bps) due to rightsizing on inventory. However, the number was much higher by the time the project was near completion. 

“The impact of the sales return and the inventory correction that has come through, which is higher than what we had imagined it to be because as we went into executing that, we clearly realised that there were pockets of sub-distributors or in-market credits which we had not taken into account and given these are all full and final parting exercises and the impact has turned out to be higher than what we had imagined it to be,” noted Varun Alagh in the company’s latest post earnings analyst call.

The company ended up taking a Rs 63 crore hit to its Q2 FY25 revenue due to the inventory correction. The losses from inventory correction further dragged the P&L down in red after the company’s previous profitable quarters. 

Honasa Consumer posted a loss of Rs 18.71 crore in the July-September 2024 quarter, a sharp decline from a profit of Rs 29.78 crore in the same period last year.

Moreover, on the flip side of its inventory correction, distributors are stuck with unsold inventory with looming expiry dates, according to media reports. 

In an exchange filing made on Monday, Honasa clarified that total inventory in its distribution value chain stood at Rs 40.69 crore, against the quoted figure of Rs 300 crore of near-expiry inventory by the All India Consumer Products Distributors Federation (AICPDF).

The company went on to further clarify that it has already received returns worth Rs 41.21 crore out of the total returns of Rs 63.52 crore. 

According to a report by The Ken, Mamaearth, in its bid to ramp up its offline play, focused only on primary sales, that is getting stock to distributors rather than creating a demand at the retail level. 

Demand concerns

Honasa Consumer’s flagship brand, Mamaearth, has also been a significant source of disappointment for investors. The demand for the brand has been muted as shifting consumer preferences and changing consumption patterns have impacted sales. 

By focusing on launching more SKUs to cater to a variety of consumers, Honasa spread itself too wide. 

“Most importantly, on investment allocation, I think our learning is that we have gone too wide and we need to narrow our focus onto a few categories and go deep within them with our hero SKUs,” Varun Alagh said during second quarter earnings.

He further flagged that the brand requires strong pivots across product mix and SKU sizing, along with a sharper communication. 

Changing consumer preferences 

There has been a growing traction for active ingredients-based products rather than natural ingredients. Active ingredients refer to chemical components like vitamin C, Hyaluronic acid, Salicylic acid, and others, which have become increasingly popular among consumers.

In contrast, Mamaearth’s core product range has largely been focused on natural ingredients such as onion extracts, beetroot, multani mitti, ubtan, etc. 

While this prompted Honasa to shift towards new-age active ingredient-based lines like The Derma Co, Aqualogica, and Dr. Sheths, these brands are still in their early stages, and it will take time for them to mature and gain significant market share.

The Derma Co is the only brand from its new age bets that has clocked Rs 500 crore annual run-rate in actives category during first quarter. 

“Younger brands like The Derma Co., Aqualogica, BBlunt, and Dr. Sheth’s achieved more than 30% growth in 1H along with improvement in margin profile (mgmt. expects TDC to deliver double-digit EBITDA in FY26) which is a key positive,” noted JM Financial in a post earnings note. 

While other beauty and personal care peers are optimistic about demand picking during the back half of the year, Honasa remains cautious due to concerns around muted consumer spending. Bigger giants like Hindustan Unilever Limited (HUL), ITC, and Nestle India also flagged impact from urban demand slowdown. 

What do experts think?

Just days after Honasa’s second-quarter earnings, Emkay Research downgraded the stock from Buy to Sell, cutting its target price in half to Rs 300 in its research report dated November 17. 

“Mamaearth is likely to see decline in FY25E (where online growth slumped and general trade in 30% of Top-50 cities await distribution) and aims to recover base in FY26E,” stated Emkay Global in the report. 

The brokerage slashed Honasa’s topline for FY25 by 9% citing it awaits “proof of execution as the management aims for a business turnaround.” 

While JM Financial reiterated its buy rating for the stock, it also reduced its price target by 22% to Rs 410 from Rs 530. 

“We like the management’s intent in terms of identifying execution gaps. However, given the tough environment and various pilots/transitions underway, the ramp up in offline channel will be gradual and take few quarters before reverting to normalised growths,” stated the report.

(Design and feature image: Nihar Apte)