The post Understanding Three Decades of Scale, Systems and Structure with Ajay Mariwala appeared first on Business of Food.

India, Then and Now: A Market Ready to Premiumise

India’s evolution is visible not just in skylines, but in shelves. The last decade has seen steady premiumisation across categories, including spirits. Consumers are more travelled, more exposed, and more willing to experiment. As Debashish Shyam, Co-Founder, Ardent Alcobev, notes, “We feel the market is right for consumers to move on to the best the world has to offer.”

The ambition is not to replace IMFL loyalty overnight, but to create a credible bridge — an upgrade path that feels rational rather than indulgent. The opportunity lies between entry-level domestic labels and prohibitively priced imports. That middle is expanding.

The Investor Who Looked Beyond the Balance Sheet

Kevin Pietersen’s involvement is positioned as strategic, not symbolic. Reflecting on his decision, he has said, “When you get asked to invest, you ask a lot of questions around the business opportunity. I’m very aware of where India is and where India will be in five, ten, fifteen years.”

His conviction stems from long familiarity with the country. “I’ve been coming to India since 2003. I’ve seen the growth. It’s an incredible opportunity.”

Importantly, he frames his role beyond capital deployment. “Can I add value? Am I genuinely interested? Or do I just put money in and see what happens in five years?” For Pietersen, the answer lay in active participation — sitting at the table, discussing blends, packaging, and long-term brand architecture. “This is our brand,” he emphasises. The intent is stewardship, not endorsement.

Dram Bell: Built for the Indian Palate

Dram Bell, bottled in Scotland, is offered in Premium and a 5-year-old Reserve. The Reserve, notably, positions itself against 3-year-old competitors at similar price levels — a deliberate disruption.

The flavour profile was consciously engineered. As Master Blender Iain Forteath explains, “The best way to judge whisky for a market is to look at the cuisine and the culture.” With Indian food often rich in spice, the blend avoids peat and heavy smoke. Instead, it leans into honeyed sweetness, toasted nuts, caramel, and soft fruit.

“It was designed to be complex and interesting, but the mouthfeel and the finish had to be smooth,” Forteath notes. The objective was clarity without aggression: a Scotch that holds its own whether consumed neat, on the rocks, or with soda.

The Ch(V)oice of Youth: Glacir Vodka and Gin Soak

With Indian alcobev growth skewing younger and more urban, white spirits are no longer secondary to whisky. They represent experimentation, social versatility, and cocktail-led consumption. Glacir Vodka and Gin Soak enter this space not as novelty additions.

Glacir Vodka is distilled and bottled in Russia using water sourced from Lake Baikal, the world’s largest freshwater lake by volume. The liquid undergoes triple distillation and charcoal filtration, processes associated with enhancing smoothness and removing impurities. The resulting profile is clean and neutral with subtle wheat-grain sweetness and a velvety mouthfeel — characteristics that make it adaptable across straight pours, highballs, and contemporary cocktails. Priced at Rs 1,640 for 700 ml, it sits within the accessible premium bracket, targeting consumers trading up from mass vodka labels.

Gin Soak operates in a category experiencing disproportionate growth among urban millennials and Gen Z consumers. Bottled at 47% ABV, it caters to a segment seeking bolder flavour intensity. The gin uses a twice-soaked botanical distillation process and features Sagan Dali, a rare botanical sourced from Russia’s Altai Highlands, alongside nine total botanicals. The process is designed to retain aromatic oils while preserving clarity, resulting in a dry, herb-forward profile with notes of wild herbs and dry berries and a crisp finish. At Rs 1,940 for 700 ml, it competes within the premium imported gin bracket while remaining below ultra-luxury price bands.

Responsible Drinking, Responsible Branding

As consumption rises and premiumisation accelerates, the real differentiator is not how loudly a brand speaks, but what it chooses not to say. Ardent’s stance is clear: participation without provocation.

The company avoids the familiar industry playbook of glamour-led excess. There is no glorification of binge culture, no visual language built around volume. Instead, the communication focuses on provenance, process, and flavour integrity. The message is straightforward — if one chooses to drink, choose well.

Responsible branding, in this context, is also about transparency. Bottled-in-origin claims are not marketing embellishments; they are traceable production choices. Age statements are declared. Processes are articulated. The consumer is trusted with information rather than seduced by abstraction.

Equally significant is tone. The narrative does not position alcohol as aspiration in itself. Instead, it positions quality as the aspiration. There is a difference. The former drives impulse; the latter encourages evaluation.

In a country where regulatory frameworks restrict direct advertising, many brands resort to surrogate tactics. Ardent’s approach appears more restrained. The spotlight remains on the liquid, not lifestyle theatrics. That restraint signals confidence.

Iain Forteath’s Blueprint for a Culturally Tuned Scotch

Iain Forteath, the master blender behind Dram Bell’s premium scotch, does not begin with barrels or botanicals. He begins with context. His approach to India has been deliberate. Having travelled to the country consistently since 2015, Forteath studied not just the market, but the environment in which whisky is consumed. For him, designing a blend for India required cultural understanding as much as technical precision. He believes the best way to judge a whisky for any market is to look at its cuisine. Indian food, he observes, is layered, complex, and spice-forward. When strong alcohol meets intense spice, the result can amplify heat in an unpleasant way. That became a central design consideration. The whisky had to marry with the food, not fight it.

He is careful with the word “approachable.” In his vocabulary, it is not a compromise. It is engineering. The whisky needed complexity and body, yet it had to remain inviting, something that could introduce consumers to Scotch without overwhelming them. Flavourful, but not sharp. Structured, but not heavy.

Consumption rituals in India also shaped his thinking. He quickly recognised the dominance of whisky and soda — a pairing more culturally embedded here than almost anywhere else in the world. Rather than resist it, he accepted it as part of the landscape. The blend was therefore crafted to hold its character whether enjoyed neat, on the rocks, or lengthened with soda.

Yet Forteath’s reflections extend beyond liquid. He notes that in India, whisky is often tied to grand occasions — weddings, banquets, milestones. His personal view is subtly different. A good bottle, he suggests, should create its own moment. It does not require ceremony. It requires conversation. For him, whisky is less about volume and more about experience. Open the bottle. Share it. Discuss the flavours. There is no need for excess, only appreciation.

The post Bottled in Origin, Built for India: Ardent Alcobev’s Premium Play appeared first on Business of Food.

Food & Beverage Sector: Mixed Cost Signals

Budget recalibrations will have uneven cost implications for F&B producers, processors, retailers, and commercial operators:

Cheaper / Cost Reductions

• Biogas-mixed CNG: Full excise duty exclusion on biogas inputs lowers the cost of biogas-mixed CNG, supporting cleaner fuel adoption and agri-linked energy supply chains.
• Microwave oven manufacturing inputs: Customs duty exempted on specified components — expected to reduce manufacturing cost and support domestic value addition.
• Seafood processing inputs: Duty-free import cap raised from 1% to 3% of FOB export value, improving sourcing flexibility and global competitiveness for seafood processors.

Simplification

• Alcohol TCS rationalised to a flat 2% — simplifies compliance for sellers, though retail prices may not fall.

Cost Increases

• Commercial LPG cylinders: Price for 19-kg cylinders increased by Rs 49, raising operating costs for restaurants, hotels, cafés, and food vendors reliant on LPG.
• Coffee roasting, brewing & vending machines: Withdrawal of duty exemptions will inflate capital costs for cafés and corporate beverage counters.

Static

• Milk prices: No revision under the 2026–27 budget cycle.

FMCG Sector: Moderately Positive Outlook with Structural Support

Analyst commentary and sector reports indicate the budget’s measures should have a moderately positive influence on FMCG demand and supply dynamics by bolstering rural incomes and supporting agri-linked output:

• Rural consumption catalysts like enhanced agricultural information infrastructure (e.g., AI-driven platforms) aim to stimulate consumption growth in non-urban markets — a key demand engine for FMCG firms.
• PLI and global branding initiatives are designed to strengthen segmental production capabilities, with targeted outlays for processed foods and export-oriented products.
• Duty tweaks across hygiene, personal care, and related inputs support localisation without immediate negative impact on core sector competitiveness.

Funding & Growth

• Rs 10,000 crore SME Growth Fund established to enhance competitiveness and scale.
• Top-up to existing Self-Reliant India Fund expands the equity cushion for emerging firms.

Liquidity & Market Access

• Mandatory TReDS use by Central PSUs for MSME supplier settlements improves payment cycles and cash flow.
• GeM-TReDS integration and invoice financing support via guarantee schemes unlock capital via discounting and securitisation pathways.

Collectively, these interventions are aimed at formalising MSME operations, reducing governance costs, and facilitating access to finance and markets. and related inputs support localisation without immediate negative impact on core-sector competitiveness.

Sector headwinds remain, including raw-material inflation and cost pressure on palm oil, coffee, and cereal inputs that continue to squeeze margins.

MSMEs: Growth Funding, Compliance Facilitation, and Liquidity Enhancements

Budget 2026 emphasised enterprise scalability and formalisation for MSMEs with multi-pronged interventions:

Funding & Growth

• Rs 10,000 crore SME Growth Fund established to enhance competitiveness and scale.
• Top-up to existing Self-Reliant India Fund expands the equity cushion for emerging firms.

Liquidity & Market Access

• Mandatory TReDS use by Central PSUs for MSME supplier settlements improves payment cycles and cash flow.
• GeM-TReDS integration and invoice financing support via guarantee schemes unlock capital via discounting and securitisation pathways.
• Corporate Mitras cadre to assist MSMEs with compliance, reporting, and statutory obligations at a lower cost — a tier-2/tier-3 focus aiming to reduce regulatory friction.

Collectively, these interventions are aimed at formalising MSME operations, reducing governance costs, and facilitating access to finance and markets.

Women-Led Enterprise Enablement: SHE-Marts Initiative

The budget introduced SHE-Marts, a cluster-level retail and entrepreneurial platform for women, particularly in rural regions.

• Designed to transition women from loan recipients to business owners, SHE-Marts provide market access, branding opportunities, and product showcase platforms for female entrepreneurs.
• The initiative builds on existing rural self-help models and is expected to strengthen women-led microenterprise ecosystems.

Agriculture Push in Budget 2026–27

Finance Minister Nirmala Sitharaman positioned agriculture as a cornerstone of India’s growth and “Viksit Bharat” vision, emphasising technology, high-value crop support, and rural livelihoods. Key announcements included the launch of Bharat VISTAAR, a multilingual AI platform integrating AgriStack and ICAR advisories to deliver data-driven advisories on crops, weather, and markets, aimed at boosting farm productivity and reducing decision-making risk.

The budget also targeted diversification and value addition in farming: dedicated programmes for high-value crops such as coconut, sandalwood, cashew, cocoa, and nuts; market and value chain strengthening for fisheries and animal husbandry; and support for livestock, dairy, and poultry enterprises. These efforts are designed to increase incomes for small and marginal farmers while expanding rural enterprise opportunities.

What The Sector Is Saying

Saugata Gupta, MD & CEO, Marico Limited

“The Union Budget 2026–27 lays out India’s growth strategy with a clear focus on sustained public investment, manufacturing scale-up, support to MSMEs, employment generation, and fiscal consolidation, a decisive shift towards people-first, consumption-led growth aligned with the vision of Viksit Bharat.

 The continued emphasis on enhancing agricultural incomes through higher productivity and value addition is structurally positive for rural and semi-urban demand, creating sustained tailwinds for consumption.

At the same time, the thrust on strengthening MSMEs and legacy industrial clusters, supported by improved access to credit and deeper formalisation, will further improve domestic supply chains, particularly across Tier II and Tier III markets. This is complemented by the public capital expenditure target of ₹12.2 lakh crore and continued investments in freight corridors, inland waterways, and multimodal logistics, which are expected to enhance distribution networks, improve supply chain efficiencies, and enable faster scale-up of emerging consumption hubs.

The Budget positions technology-backed artificial intelligence as a powerful driver of inclusive growth. Initiatives such as Bharat VISTAAR are an encouraging step towards boosting farm productivity, while the expanded AI Mission and enhanced R&D focus are set to accelerate innovation and services across sectors. Collectively, these measures reflect a strong commitment to leveraging technology to bridge regional, income, and capability gaps.

Additionally, the simplification of compliances reflects the government’s intent to build trust-based governance.

Overall, this Budget reflects a consistent, reform-first approach anchored in fiscal prudence, infrastructure-led development, and inclusive growth, creating a supportive ecosystem for long-term, consumption-driven growth across both urban and rural India. The emphasis is firmly on execution, competitiveness, and long-term capacity building as we advance towards becoming an Atmanirbhar Bharat.”

Jayesh Desai, Chairman, Rajhans Group

Budget 2026–27 provides a strong and timely impetus to India’s textile and manufacturing ecosystem. The proposed mega textile parks, modernisation of traditional clusters, and focused support for technical and sustainable textiles will significantly enhance India’s global competitiveness and export readiness. Equally important is the emphasis on logistics and infrastructure, particularly the announcement of new Dedicated Freight Corridors, including enhanced east–west connectivity linking Surat with major production and consumption centres. These measures will improve supply chain efficiency, reduce logistics costs, and strengthen India’s position as a reliable global sourcing destination. In all, the Budget demonstrates a long-term, integrated approach to industrial growth, employment generation, and value-added manufacturing.

Ekansh Garg, Co-founder & CEO, Cravicious Foods

It’s encouraging to see the Union Budget 2026–27 put the spotlight firmly on India’s food processing sector. Support for the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, along with the proposed Rs. 28,000 crore allocation over five years for flagship food processing initiatives signals a serious push to modernize infrastructure, expand cold storage, and strengthen production and testing facilities. For companies like ours, this creates the foundation to grow responsibly, maintain high quality, and ensure compliance. Strong infrastructure not only helps reduce wastage but also enables brands to scale efficiently and deliver products that meet both domestic and global standards. This approach makes it clear that India is committed to becoming a global hub for clean, ready-to-cook, and frozen foods, giving businesses the confidence to innovate and bring better solutions to consumers everywhere.

Shakir Haq, CEO, NKP Empire

The Budget sends a clear signal that growth over the next few years will be driven by better infrastructure, stronger tourism, and deeper development across Tier 2 and Tier 3 cities. As connectivity improves and more destinations open up, travel and local consumption will naturally rise, creating new demand for food and hospitality businesses beyond the metros. For restaurant groups like NKP Empire, this is an opportunity to expand into emerging markets where organised dining is still evolving. Improved logistics and a growing tourism ecosystem also make it easier to scale operations while maintaining quality and consistency. Overall, the Budget creates a supportive environment for hospitality brands to grow alongside India’s changing travel and consumption patterns, especially in cities that are just beginning to see increased footfall and economic activity.

Dhruv Taneja, Founder and Global CEO, MatchLog Solutions

“The Union Budget 2026–27 delivers a visionary blueprint for India’s logistics backbone, with public capex rising to ₹12.2 lakh crore, new freight corridors between Dankuni and Surat, 20 additional national waterways, coastal cargo promotion, and seven high-speed rail corridors all pointing to a clear focus on faster, greener cargo movement and last-mile connectivity. The creation of an Infrastructure Risk Guarantee Fund, dedicated REITs for CPSE real estate recycling, and a ₹5,000 crore outlay for City Economic Regions in Tier II and III cities further underline the intent to de-risk long-gestation projects and anchor logistics growth where demand is actually emerging.

Equally important are the trust-based customs and warehousing reforms and the proposed container manufacturing scheme, which can strengthen India’s position in global trade flows. The next big unlock now lies in directly incentivising container reuse and reduction of empty runs, backed by data-driven frameworks for measurable emission reduction. Clear signals on technology adoption, reuse-led models, and outcome-based incentives would help scale digital platforms faster and make India’s supply chains not just more efficient, but genuinely sustainable.”

Arjun Toor, Co-Founder, RollsKing

”The Union Budget’s focus on skilling, employment generation, and inclusive growth is a positive step for labour-intensive sectors such as Hospitality, QSR, and Food & Beverages. With focused transformation, we are hopeful these sectors will offer task-oriented and process-driven roles, making them well-suited to create dignified livelihood opportunities for Divyangjans through customized and role-specific training. Additionally, the focus on hospitality education, destination-led tourism, and improved infrastructure will drive consumption across dine-in and delivery formats, while GST rationalisation remains a key industry expectation. By strengthening industry-relevant training and encouraging participation across diverse ability groups, the Budget can enable sustainable job creation and create a supportive environment to scale responsibly, especially in emerging Tier-2 and Tier-3 cities.”

Paritosh Ladhani, Joint Managing Director, SLMG Beverages

“The Union Budget 2026 strongly reinforces a manufacturing-first, ‘Make in India’ approach, which is encouraging for companies that are deeply invested in domestic production and local supply chains. The continued push on infrastructure, with capital expenditure raised to Rs. 12.2 lakh crore, will directly benefit beverage manufacturers by improving logistics efficiency, distribution reach, and last-mile connectivity across markets. The focus on localisation across bottling, packaging and allied inputs supports greater cost stability and resilience, while sustained support for MSMEs remains critical given their integral role in our vendor and transport ecosystem. Although there were no direct tax incentives for non-alcoholic beverages, the broader pro-manufacturing and pro-consumption policy environment, along with ongoing discussions on GST rationalisation, provides a positive foundation for volume-led growth and long-term expansion of India’s packaged beverage sector.”

Gaurav Manchanda, Founder & Director, The Organic World

“The introduction of Bharat Vistar, a multilingual, AI-driven platform integrated with AgriStack, is a positive step towards expanding access to agricultural knowledge and equipping farmers with advanced tools to make better-informed decisions. The push for AI-enabled agritech can help bridge information gaps and enhance productivity across diverse farming communities. As the Founder and Director of The Organic World, I view these measures as important building blocks for a more inclusive and future-ready agricultural ecosystem. Collectively, they can support stronger rural livelihoods and enable wider access to clean, sustainable, and nutritious food for consumers across the country.”

Abhay Parnerkar, CEO, Godrej Foods Ltd.

“The Union Budget 2026 reflects a strong and welcome focus on strengthening India’s Agri and animal husbandry ecosystem. The government’s push towards credit-linked support for animal husbandry, development of farmer-producer organizations, and integrated approaches to improving farmer incomes will go a long way in reinforcing resilient, future-ready food value chains. At Godrej Foods Ltd, our farm-to-fork model is built on deep partnerships with farmers, who remain central to everything we do, from quality and traceability to consumer trust. Continued investment in agricultural infrastructure, innovation, and manufacturing capabilities not only empowers farmers but also enables food brands to deliver safe, nutritious, and responsibly produced food to Indian households. These measures signal a positive step towards building a more sustainable and inclusive food economy.”

Dr. Ashvini Jakhar, Founder and CEO, Prozo

“The Budget 2026–27 sends a strong signal that resilient, technology-led supply chains are central to India’s growth strategy. The Government’s continued emphasis on public capital expenditure, scaled up to ₹12.2 lakh crore, along with new Dedicated Freight Corridors, the operationalisation of 20 National Waterways, and a clear push for modal shift to greener logistics, will materially reduce friction and improve the speed and reliability of goods movement across the country.

By prioritising infrastructure development, domestic manufacturing, and MSME enablement, the Budget reinforces the link between efficient logistics networks and economic competitiveness. Measures such as the ₹10,000 crore SME Growth Fund, enhanced TReDS-based liquidity, and logistics-linked industrial corridors will help smaller enterprises integrate more effectively into domestic and global value chains.

For integrated supply chain platforms like Prozo, this Budget is an enabler for scalable, end-to-end logistics models combining warehousing, fulfilment, and data-driven visibility. As India accelerates its manufacturing and export ambitions, technology-enabled and transparent logistics infrastructure will be critical to ensure businesses of all sizes can compete efficiently in both domestic and global markets.”

Mohit Malhotra, CEO, Dabur India Limited

“The Union Budget 2026–27 was on expected lines as it reflects quiet strength and continuity. This is not a Budget driven by short-term populism. Instead, it places its faith in continuity, institution-building, and resilience. With a sustained focus on enhancing farmer income, institution-building, infrastructur,e and maintaining fiscal discipline, the Budget reinforces confidence in India’s medium-term growth trajectory, even as it avoids dramatic policy shifts.

The continued emphasis on public investment is a key positive, with capital expenditure rising nearly 9% to ₹12.2 lakh crore for 2026–27, underscoring the government’s commitment to infrastructure-led growth. The sharper focus on Tier-2 and Tier-3 cities, along with the recognition of Global Capability Centres as a growth driver, is expected to broaden India’s economic footprint beyond metros. For companies like Dabur, these measures will help drive deeper penetration of branded consumer products by improving access, logistics efficiency, and income resilience across Bharat.

The Budget’s systematic push to strengthen India’s traditional medicine ecosystem is particularly encouraging. Announcements, including the setting up of three new All India Institutes of Ayurveda, training of caregivers in yoga and Ayurveda services, creation of integrated AYUSH-led medical hubs, and the upgradation of AYUSH pharmacies and testing laboratories, mark a significant step towards mainstreaming Ayurveda through scale, standards, and skills. This aligns well with our long-standing engagement with Ayurveda and rural livelihoods, including partnerships with over 13,000 farmers cultivating medicinal plants across the country.

At the macro level, the commitment to fiscal discipline, with the fiscal deficit pegged at 4.3% of GDP, provides reassurance on policy credibility and economic stability. While the absence of a stronger near-term consumption stimulus and the increase in STT on futures and options remain areas of concern, the Budget’s balanced approach strengthens the foundation for sustainable growth in an uncertain global environment.”

Ankit Kedia, Founder and Lead Investor, Capital-A

“The announcements made today mark a clear inflection point in India’s manufacturing and deep-tech journey. The expansion of the India Semiconductor Mission into equipment, materials, and full-stack IP reflects an important recognition that semiconductors and advanced manufacturing cannot be built in silos, and that value creation sits across the entire supply chain. “By coupling this with higher allocations for electronics components, capital goods, and critical inputs such as rare earths, the Budget lays the groundwork for durable industrial growth and stronger capital formation. However, these sectors are defined by long investment cycles and high execution risk. To translate today’s intent into sustained growth, investors will need greater clarity on implementation timelines, incentive design, and the role of private capital in scaling these ecosystems.”

Aayush Madhusudan Agrawal, Founder and Director, Lenexis Foodworks

“The Union Budget 2026 reflects a strong commitment to sustainable growth, infrastructure-led development, and ease of doing business. For the QSR industry, the focus on Tier 2 and Tier 3 cities, logistics efficiency, and skilling creates a powerful foundation for the next phase of expansion. At Lenexis Foodworks, we see this as an opportunity to deepen our presence, strengthen our supply chains, and deliver greater value to consumers across India.”

Meenakshi Kumarr, Chef & Founder, Anahata Cafe

“The Budget’s focus on strengthening the hospitality and food & beverages ecosystem is a welcome step for emerging brands like Anahata Café. Upgrading the National Council for Hotel Management into a National Institute of Hospitality will help create a stronger talent pipeline by aligning academia with industry needs—something the F&B sector has long required. The Divyangjan Kaushal Yojana is especially encouraging, as hospitality and food processing offer meaningful, task-oriented roles that can enable dignified and inclusive employment when supported by customised training. Additionally, the creation of a Rs. 10,000 crore SME Growth Fund, along with the Self-Reliant India Fund, will help to nurture SMEs. For women-led F&B and FMCG startups, access to equity capital and risk funding is critical to scaling operations and building resilient supply chains.”

Akash Agrawalla, Co-founder, ZOFF Foods

“The Union Budget 2026–27 is a forward-looking blueprint that democratises growth across India. As a brand rooted in Raipur, we welcome the focus on Tier-2 and Tier-3 cities as Bharat’s new growth engines.

The revival of 2,000 industry clusters and the Rs. 10,000-crore MSME Growth Fund are masterstrokes for the manufacturing ecosystem. By integrating platforms like GeM and TReDS, the government is effectively solving the liquidity bottlenecks that often hinder small enterprises. Furthermore, the expansion of dedicated freight corridors and national waterways will drastically reduce logistics overheads, which is critical for the food processing industry to remain competitive globally.

The emphasis on SHE Mart and high-value agriculture—particularly the support for coastal crops and rural value chains—demonstrates a deep commitment to empowering women-led enterprises and farmers alike. Coupled with the reduction in the MAT rate to 14%, this budget doesn’t just sustain economic momentum; it empowers the next generation of home-grown entrepreneurs to scale sustainably from the heart of India.” 

Nischal C, Head of Corporate Communications, QNET India region

“The Union Budget is reform-oriented, introducing measures to empower entrepreneurs and strengthen the business ecosystem. The launch of ‘She Marts’ for women entrepreneurs will provide community-owned retail outlets, enabling women to expand their businesses at the grassroots level.

Additionally, simplification of tax compliance will ease operational challenges for small business owners and distributors, allowing them to focus more on growth. Improvements in digital infrastructure and payments will enhance online connectivity and transaction efficiency, supporting businesses that rely heavily on digital platforms.

These measures will encourage innovation, improve access to resources, and reinforce sustainable growth opportunities for entrepreneurs across sectors.”

The post Union Budget 2026-27: Key Takeaways and Industry Outlook appeared first on Business of Food.

The sharper shift came through GST realignment. Zero-rating daily staples such as chapatis, rotis, paneer, and UHT milk, alongside a consolidated 5 percent slab for dairy, processed foods, snacks, personal care, and baby products, altered cost structures across FMCG and food service. With consumer inflation projected to ease by up to 1.1 percentage points, the budget created consumption headroom at a time when MSME financing, women-led entrepreneurship, and green infrastructure were being actively encouraged—particularly across Tier II and Tier III markets.

What FMCG Leaders Are Really Asking from Budget 2026

As Union Budget 2026 approaches, the FMCG leaders’ expectations are narrowing to a few decisive asks: fix GST inefficiencies, revive consumption, and enable manufacturing at scale. The intent is acknowledged, but delivery will be the real test.

GST remains the most immediate friction point. Ramesh Bafna, Chief Financial Officer, Zepto, calls unutilised input tax credit “taxes already paid by businesses,” arguing that allowing these credits to be used against reverse charge liabilities and TCS would “meaningfully improve ease of doing business” while reducing cash outflows and unlocking working capital “without revenue loss to the government.” Nikhil Doda, Co-Founder and Chief Operating Officer, Lahori Zeera, flags the same issue from the factory floor. With most FMCG products now taxed at 5 percent, he notes that higher GST on services, advertising, and machinery leads to continuous accumulation of credits, adding to “the overall cost of manufacturing and selling” and dampening appetite for fresh investment in plant and equipment.

On the demand side, industry leaders are looking to Budget 2026 to reignite consumption momentum. Ishita Malpani, Managing Director, Amruta Tea, says targeted fiscal support that boosts disposable incomes and brings clarity to GST implementation will be “crucial for stimulating consumer spending and improving affordability.” Continued investment in rural infrastructure and logistics, she adds, will strengthen the backbone of India’s consumption story while helping homegrown brands scale. A spokesperson for DS Group echoes this, urging a “consumption-driven framework” backed by higher capital expenditure, corporate tax rationalisation, and targeted manufacturing support to strengthen both household spending power and the ‘Make in India’ mission.

Food processing and frozen foods, which gained policy visibility in Budget 2025, are now seeking sharper execution. Haresh Karamchandani, Managing Director and Group CEO, HyFun Foods, believes Budget 2026 can “accelerate India’s food processing ecosystem” through PLI schemes, export-oriented incentives, cold-chain investments, and support for backward integration, helping India emerge as a dependable global supplier of value-added foods. From a startup lens, Ekansh Garg, Co-Founder and CEO, Cravicious Foods, points to gaps between policy and reality. The current Rs 1 crore subsidy cap for expansions, he says, is inadequate for capital-intensive frozen food projects, and a single-window clearance system is essential to cut through multi-departmental approvals. Easier, collateral-free access to credit would further enable companies to invest in technology and meet rising demand.

Collectively, these views underline a clear industry message: Budget 2026 must move beyond broad assurances to targeted fixes: resolving GST distortions, unlocking working capital, strengthening consumption, and backing manufacturing with policies aligned to on-ground realities.

Food Service Sets Its Budget Agenda

As Budget 2026 comes into view, food service and hospitality leaders are sharpening their demands around three themes: tax clarity, formalisation, and the removal of structural bottlenecks that slow expansion despite clear consumer demand.

For food-tech and processed traditional foods, GST remains the first hurdle. Sanket S, Founder, Scandalous Foods, says the sector is looking for “GST simplification and more balanced tax rates on processed traditional foods” to ease pressure on MSMEs and bring unorganised players into the formal economy. He links tax reform directly to growth levers such as cold-chain infrastructure and household purchasing power, arguing that targeted support for automation and easier access to credit—aligned with Atmanirbhar Bharat—can help India emerge as “a global centre for preserved traditional foods.”

Women entrepreneurship is another area where industry voices want Budget 2026 to move from rhetoric to decisive support. Meenakshi Kumarr, Chef and Founder, Anahata Cafe, calls the Budget a potential “turning point” for women-led enterprises, particularly in food and hospitality. Despite rising participation, she notes that women founders continue to face barriers in finance, mentorship, and compliance. “Many women-led ventures are operating at the grassroots level and require flexible funding models that recognise their realities rather than traditional balance sheets,” she says, advocating collateral-free credit, interest subvention, and simpler formalisation. Investment in skills, digital enablement, food safety, and sustainability training, she adds, is essential to help women entrepreneurs in Tier II and III cities scale responsibly.

From an operator’s lens, the focus is squarely on structural alignment. Pulkit Arora, Director, CYK Hospitalities, says the industry is hopeful that Budget 2026 will finally address long-pending issues such as restoration of input tax credit, recognition of hospitality as an industry, and simpler licensing. These changes, he argues, would allow businesses to focus on “quality, innovation, and consistency rather than dealing with inefficiencies.” His colleague, Simran Jeet Singh, Director, CYK Hospitalities, links policy clarity directly to expansion, noting that brands are ready to grow and markets are ready to consume. What’s missing, he says, are “clearer leasing frameworks, single-window approvals, and uniform commercial policies” that make expansion predictable rather than fragmented.

At an industry level, the National Restaurant Association of India has flagged rising cost pressures. NRAI President Sagar Daryani points to Notification No. 09/2024 on reverse charge mechanism for commercial leases, stating that it has increased costs for smaller restaurants and MSMEs. The association is calling for its review, along with reinstatement of the SEIS scheme, targeted subsidies on essential inputs, better access to debt financing, and industry status for food services. Daryani also reiterates the long-standing demand for a dedicated food services ministry to support growth, sustainability, and employment across the sector.

Together, these perspectives reinforce a consistent message to policymakers: food service and hospitality do not need incremental tweaks in Budget 2026. They need clarity, correction, and commitment to convert demand momentum into durable, nationwide growth.

What the Food Ecosystem’s Enablers Expect from Budget 2026

Beyond the food and beverage industry, the ecosystem that enables it—from protein innovation and logistics to energy infrastructure—is also lining up clear asks from Union Budget 2026. These solution providers argue that India’s next phase of food-sector growth will hinge on integrated policy support for technology, sustainability, and large-scale infrastructure.

At the intersection of food, science, and sustainability, Sneha Singh, Managing Director at GFI India, positions smart proteins as a strategic priority. With demand rising for affordable, high-quality nutrition, she says the budget must reduce capital risk through public–private partnerships and institutional procurement pilots to help alternative proteins reach price parity and scale. Singh also calls for deeper investment in agricultural R&D for underutilised pulses and indigenous crops, alongside dedicated processing infrastructure for plant-based value chains to lift farmer incomes. Linking food innovation to India’s broader bioeconomy ambitions, she notes that sustained funding under the BioE3 policy and RDI Fund—especially for shared biomanufacturing infrastructure, Bio-AI, and workforce skilling—could accelerate India’s path to a $300 billion bioeconomy and position it as a global hub for next-generation proteins.

Logistics players, meanwhile, are focused on execution and efficiency. Dipanjan Banerjee, Chief Commercial Officer at Blue Dart, says Budget 2026 must build on PM Gati Shakti by prioritising seamless physical and digital integration across air, road, rail, and multimodal corridors. Reducing dwell times, simplifying customs, and enabling smoother intermodal transfers, he argues, are critical to lowering logistics costs to global benchmarks—especially as India scales exports and e-commerce simultaneously. Banerjee also flags cross-border e-commerce reforms for MSMEs, cleaner mobility incentives, and faster adoption of EVs and Sustainable Aviation Fuel as essential to future-proof logistics while meeting climate goals.

A similar technology-first view comes from Dhruv Taneja, Founder and Global CEO of MatchLog, who stresses the need for digital innovation in inland container logistics. He points out that incentives for AI-driven freight platforms, EV trucking corridors, and multimodal hubs under Gati Shakti can cut empty miles by up to 15 percent, reduce emissions, and improve asset productivity. To scale such efficiencies nationally, Taneja calls for budgetary support for technology-led freight networks, shared inland infrastructure near industrial clusters, and end-to-end digital documentation to ease port congestion and accelerate turnaround times.

Energy infrastructure, a critical but often invisible enabler, also features prominently. Satyen Mamtora, CEO and Managing Director at Transformers and Rectifiers (India) Ltd., says India’s energy transition will require a stronger, more resilient grid. Ahead of Budget 2026, he is looking for faster approvals, a single-window mechanism to address right-of-way delays, and increased support for energy storage to enable large-scale renewable integration. A consistent policy push on grid modernisation and indigenous manufacturing of transformers and storage systems, he adds, will be key to energy security, competitiveness, and clean energy goals.

Taken together, solution providers are delivering a unified message: Budget 2026 must move beyond sector-specific incentives and invest in the connective tissue of the economy. Technology, logistics, energy, and sustainable innovation are no longer support functions—they are central to how India’s food, manufacturing, and export ambitions will be realised.

Conclusion

As Budget 2026 approaches, the conversation has moved decisively forward. The issue is no longer sector recognition, but policy depth and execution: further GST rationalisation, clarity on input tax credit, faster single-window clearances, and sharper incentives that translate intent into scale. Budget 2025 laid the foundation. Budget 2026 will determine whether India’s food and hospitality sectors merely consolidate or decisively accelerate.

The post The Food Economy Lens for Budget 2026 appeared first on Business of Food.

The post Inside Salad Days’ System-First Growth Playbook appeared first on Business of Food.

The post From Expansion to Scale: The F&B Franchise Roadmap to 2026 appeared first on Business of Food.

Fresh Lock isn’t a cosmetic redesign. It is a technology-led rethink of the spice pack itself. Moisture, heat, and air exposure have always been the disruptors that strip masalas of their vibrancy. Once aroma escapes or natural oils dissipate, quality drops irreversibly. Fresh Lock’s high-barrier, moisture-resistant construction is engineered to shut out these variables entirely, creating a sealed environment that protects the volatility of spices from production to consumption.

For retailers, the value is immediate and measurable. Traditional packaging often fails under real supply-chain conditions—transport heat, storage humidity, and multiple handling points. These inconsistencies lead to product degradation, consumer complaints, and weaker repeat cycles. Fresh Lock changes that trajectory. The technology stabilises the product across every leg of movement, ensuring that what reaches the shelf is as potent as what left the factory. Retailers benefit from longer shelf stability, fewer returns, and stronger consumer trust.

Inside the kitchen, the change is instantly recognisable. The fragrance that escapes the moment the pack is opened. The clean, unclumped texture. The deeper, natural colour. The flavour consistency that holds across recipes. As home cooks demand purer, more authentic experiences—and as regional cuisines gain renewed attention—Fresh Lock delivers the sensory reliability that today’s consumer expects.

What sets this innovation apart is the balance Goldiee strikes between heritage and precision engineering. The brand has always understood the heartbeat of the Indian kitchen, but Fresh Lock signals a readiness to lead the next phase of category evolution. While many players continue with traditional packaging, Goldiee is moving the industry forward with a solution that solves a longstanding, structural challenge.

Another layer to this shift is its alignment with today’s fast-expanding retail channels. Hypermarkets, convenience formats, and quick-commerce platforms place increased pressure on product stability, given fluctuating temperatures and unpredictable transit cycles. Whether the pack sits on a shelf under bright lighting or travels in a delivery bag across the city, its integrity remains intact, giving retailers and consumers the same level of trust.

As the spice market grows more crowded, differentiation has become rare—and often superficial. Fresh Lock breaks that pattern. It is a practical, tangible innovation that directly enhances product performance. By protecting freshness at every step, Goldiee is setting a new benchmark for quality in a category where expectations are rising faster than ever.

The post A Fresh Advantage: Goldiee’s Reinvention of Spice Preservation appeared first on Business of Food.

The post Inside Kinder Joy’s Playbook for Tapping India’s “Kidult” Economy appeared first on Business of Food.

The post Clarity, Colour, Credibility: The New Blueprint for High-Impact Packaging appeared first on Business of Food.

The post Coffee Sutra: Where the Bean Meets the Business appeared first on Business of Food.