MANDAR JOSHI

Conversion of ECB into CCPS (Equity): Understanding RBI regulations Bira 91 raised ECB, may convert it into CCPS at a later stage. This would require adhering to ECB regulations issued by RBI. Let's understand those regulations. ECB Conversion is permitted, subject to following conditions: a. Activity of the borrowing company (for instance Bira 91) should be as per FDI policy, given that conversion would result in FDI instead borrowing. b. Lender's consent is required, with no breach of applicable sector cap on the foreign equity holding under FDI policy. c. Applicable pricing guidelines for shares should be complied with i.e. valuation norms. d. Conversion would require reporting to RBI in prescribed forms i.e. Form FC-GPR and Form ECB 2 Return. e. Exchange rate for conversion would be as per date of the agreement. For startups and growing companies, converting ECB into equity can be a strategic financial move. Adhering to RBI guidelines can facilitate a seamless conversion process, ensuring compliance and fostering growth. Share your experiences and insights in the comments! #ECB #RBI #FDI #EquityConversion #Finance #Compliance #Startups #BusinessGrowth #Bira91

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Entrepreneurial Lessons from Mamaearth’s Journey One of India’s most renowned beauty brands, Mamaearth , along with its parent company Honasa Consumer Ltd., is currently facing significant challenges. The past month has been particularly difficult for Honasa Consumer Ltd., leaving an impact that is unlikely to fade anytime soon. The company reported disappointing Q2 FY25 results, leading to a sharp decline in its stock, which plummeted by an alarming 40% over the course of last week. Challenges Faced by Mamaearth: 1. Overextension Across Categories Diversifying into ten product categories diluted focus and strained resources, weakening the brand’s core identity. 2. Overreliance on Online Sales With over 65% of revenue coming from e-commerce, limited offline presence restricted growth and increased vulnerability to market fluctuations. 3. High Marketing Costs Excessive spending on marketing, far above industry norms, raised concerns about the sustainability of such high expenditures. 4. Inventory Issues Distributors reported significant unsold inventory nearing expiration, indicating demand forecasting and production mismatches. 5. Lagging Behind Consumer Trends Focusing heavily on natural formulations while consumers shifted towards active ingredient-based products created a disconnect. Key Lessons for Entrepreneurs: 1. Focus on Core Strengths: Strengthen your primary offerings before diversifying. 2. Diversify Revenue Channels: Build an omnichannel strategy to mitigate risks and maximize reach. 3. Control Marketing Spend: Align marketing investments with measurable returns. 4. Adapt to Trends: Stay agile to evolving consumer preferences and market shifts. 5. Optimize Inventory Management: Lean practices ensure financial health and minimize waste. Takeaway: Mamaearth’s journey highlights the importance of financial discipline, adaptability, and focusing on sustainable growth. Entrepreneurs must learn to balance expansion with operational efficiency to navigate competitive markets. Follow Maharshi Ganatra for Business, Investment and Finance. #Entrepreneurship #BusinessStrategy #Challenges #SustainableGrowth #LessonsLearned

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Ever found yourself scrolling through job boards, noticing more openings for coders and analysts than factory workers?    It seems India's economy is shifting gears, and it's got many of us thinking.   I recently read a fascinating article in The Economic Times that argued India's real strength isn't #manufacturing; it's services. This means #IT, #finance, #healthcare, and #education – industries that need brains, not just brawn.   This got me thinking. While China's manufacturing prowess is well-known, is India quietly carving out its own niche?   Economists Rakesh Mohan and Raghuram Rajan have different perspectives. Mohan believes we need to focus on manufacturing exports to create more jobs, particularly for the masses in states like Uttar Pradesh and Bihar. Rajan, on the other hand, thinks we should play to our strengths in services.   The article makes a compelling case for the latter. India boasts a vast, educated #workforce that's ideal for the service industry. Moreover, services are less susceptible to #automation than manufacturing, meaning they're more likely to create lasting jobs.   Of course, there are challenges. We need to improve our #infrastructure, streamline regulations, and invest in education and healthcare. But if we get it right, the potential is huge. We could attract more companies to set up global competence centers here, creating high-quality jobs and stemming the brain drain. This, in turn, could boost our #GDP and significantly raise per capita income.   We also can't forget the basics. We need better public services, better governance, and a strong judicial system. It's about creating an environment where everyone has the opportunity to succeed. It's a big task, but it's one we can't ignore.   The big question is, can we make this transition smoothly? Can we create enough good jobs for everyone? And can we ensure that the benefits of growth reach every corner of our society?   These are the questions we need to answer if we want India's economic story to be a success.    One thing's for sure: It's an exciting time to be Indian! #economy #growth #success

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Very relevant in a transitional phase of FRB’s while separating ownership from management.

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Trifecta Capital has launched its largest venture debt fund yet, totaling a whopping ₹2,000 crore, with an additional ₹500 crore greenshoe option. This fund is sector-agnostic, targeting: ✅ Electric mobility ✅ SaaS ✅ Fintech ✅ Enterprise tech Founded in 2015 by Rahul Khanna and Nilesh Kothari, the firm has already invested in over 30 unicorns and numerous high-value companies like Zepto, Meesho, BlueStone, and Urban Company. While staying clear of riskier sectors such as cryptocurrencies, gaming, and P2P lending, Trifecta Capital has successfully deployed ₹6,000 crore from its three funds, including recycled capital. For enquiries, drop an email to [email protected] #VentureCapital #Investment #ElectricMobility #SaaS #Fintech #EnterpriseTech #Startups #Unicorns #TrifectaCapital #Funding #BusinessGrowth

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Last week TagZ Foods, a D2C snacking startup entered into a distress sale, being acquired by Reliance Consumer Products for INR 28 crore. This development raises questions about the factors leading to such a sale and the implications for both TagZ and Reliance. Reasons Behind TagZ's Distress Sale: 1️⃣ Operational Challenges and Production Halt: TagZ faced significant scalability issues, leading to a halt in production in recent months. This led to the unavailability of their products on e-commerce platforms and retail stores, adversely affecting revenue streams. 2️⃣ Financial Strain: In the fiscal year 2023, TagZ reported a net loss of INR 10.7 crore against an operating revenue of INR 9.6 crore, highlighting financial difficulties. 3️⃣ Employee Attrition: The operational setbacks led to a wave of attrition, further destabilising the company's internal structure and operations. 4️⃣ Competitive Market Landscape: Operating in a competitive market with established brands like Lays and Too Yumm, TagZ clearly struggled to maintain a competitive edge. For Reliance, acquiring TagZ presents an opportunity to expand its footprint in the D2C snacking segment. Leveraging its extensive distribution network and resources, Reliance can address the scalability issues that plagued TagZ, potentially revitalising the brand and integrating it into its broader consumer goods portfolio. I believe a strong financial backbone could have helped TagZ withstand external shocks like rising competition or funding scarcity. They could've focused on: •⁠ ⁠Unit Economics: Ensuring each sale contributed positively to margins by balancing marketing spend, logistics, and production costs. •⁠ ⁠Cash Flow Management: Optimising operating expenses to prevent cash burn, ensuring liquidity during lean phases. •⁠ ⁠Scenario Planning: Preparing for different market conditions with contingency plans and diversified revenue streams. What’s your take on the current state of the D2C market? Is it time for a strategic reset for startups in this space? #financialplanning #d2c #startups #food #dtc

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It is fabulous to see the growing interest in Angel Investments in Startups.. The news of Mamaearth stocks and also those of Zomato, Policy Bazar etc doing so well and making many new millionaires is definitely helping the cause. Some of these angel investors are beneficiaries of exits and esops and hence believe in this asset class, while others are looking to build such breakout events in their lives. Yet there are others who thrive in the ecosystem and enjoy riding the wave while making profits or losses from it. Whatever is the motivation, this space needs to be tread with caution. As a lead investor of our syndicate VG Angels at VentureGarage and having over a decade of experience in this space, I often advice my fellow angel investors the following: 1. Angel Investment is probably the riskiest asset class and requires patience. If you want to be one, then invest in 7-8 cos in 3 years or so and then expect a breakout in the 4th year from one of them. 2. There are over 20000 startups registering in the country every year, it is almost impossible for you to source and then invest in one of the top 20 of those. Follow a syndicate lead investor or a curated angel network for the deal flow and evaluation. 3. Founders are not looking for your mentorship. Invest in them first and then maybe you can mentor them. Definitely do not invest in founders who need your active guidance. 4. Learn about the future opportunities and build your thesis around some sectors. Learning new stuff is one of the big requirements and motivators of angel investments after all. Invest in those sectors which you are bullish about. Happy investing! https://lnkd.in/g2xx3zBX

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Out now - Our Q4FY24 Report: blog.zomato.com/q4fy24 If you have any further questions or feedback, please email us at [email protected]. Always listening! Quick snapshots of how we’re powering India’s changing lifestyles: #Profitability Our consolidated Adjusted EBITDA stood at INR 194 crore - improving by INR 369 crore as compared to the same quarter last year. I'm also happy to share that our quick commerce business turned Adjusted EBITDA positive in the month of March 2024. #Growth YoY topline growth accelerated to 61% and continues to trend above the stated outlook of 40%. Across our B2C businesses, the GOV grew 28%, 97%, and 207% for the food delivery (Zomato), quick commerce (Blinkit), and Going-out verticals, respectively. #QuickCommerce Blinkit turned Adjusted EBITDA positive in March 2024. One of the key vectors for this growth is store expansion. We aim to get to 1,000 stores (from the current number of 526) by the end of FY25. #ESG Zomato now has the best ESG rating amongst major global food delivery companies, as per Sustainalytics, a leading global agency. We hope to continue to improve this rating with progress on our ambitious Net Zero goal across our food delivery value chain by 2033. #ZomatoGiveback Our proprietary network of 650+ on-ground weather stations, which provides real-time data on parameters such as temperature, rainfall, etc. is now live. As a Zomato giveback, we have made this data freely accessible through an API available on weatherunion.com #WayForward The current state of our businesses is thanks to the exceptional execution by our teams.  Our journey in the last two years has increased the expectations that our shareholders have from us, and we will continue trying our best to live up to them.

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#SMEIPO or #LOTTERY tickets. Today SME IPO of #HOAC Foods India got subscribed 1994 times. HNI portion subscribed 1402 Times and Retail Portion subscribed 2542 Times. Total Subscription amount is of INR 10167 Cr. Against Issue Size of 5.54 Cr. As per DRHP Company's Revenue (Annualized) for 23024 is about 12 Cr and Annualized PAT is about 0.75 Cr. This is nothing but madness in current Primary Market where majority of applicants are looking for Listing gains.

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At just 27, he's already graced the pages of Forbes, shared the mic with India's foreign minister on his podcast, and captivated audiences with over 200 speeches. Raj Shamani embarked on a remarkable journey from launching a small dishwashing gel business with a loan from his father to achieving entrepreneurial success. At just 17, his ambition took him to the United Nations, representing India in UNIDO, Vienna, through the Youth Representative Program for Young Leaders. It was here that his natural leadership abilities began to shine. His skills in negotiation, planning, and marketing quickly made him known as a dynamic speaker. From TED talks to addressing esteemed organisations like Jaguar Land Rover and Forbes, he mesmerised audiences with his passion and insights. But his journey wasn't just about formal education as he embraced self-learning, mastering essential skills through online resources like Google and YouTube. Driven by a desire to uplift others, he launched the 'AUNTYPRENUER' initiative, training over 70 housewives to boost their household incomes. In 2016, he managed two small consumer products companies. Taking decisive action, he merged them with his father's company, single-handedly spearheading a remarkable turnaround. Within 2 years, their combined efforts saw their turnover become 10x.  By focusing on rural and remote areas, he transformed Shamani Industries into the leading home and laundry care brand in Central India. He seized every opportunity to learn and grow, whether it was through watching YouTube videos or representing India at the United Nations Youth Representative Program. Cut to now, he has built :  > a linkedin community of 240k+ followers > A youtube channel with 3M+ subscribers >A company called House of X which is India’s first creator-led house of brands that raised a funding of $1.54 million in its first round. He has addressed prestigious organisations across 26 countries and continues to inspire millions with his story of perseverance and determination. Today, he’s a content creator, angel investor, author, public speaker, coach and an entrepreneur. His story is a lesson that with unwavering determination and a readiness to embrace risks, anyone can conquer challenges and turn their dreams into reality. How has his journey motivated you? #CaseStudy #Entreupreneur

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Country Delight is one of the fastest & fewest Indian D2C brands to >2x valuation every ~1-2 years. How? Country Delight (CD) in 2024 raised ~₹160 Cr in Series E. It initially had a successful PMF, growing bootstrapped for its first 4 years without funding • Valuation jump - Series C Nov'21 : ~$94 MM Series D Mar'22 : ~$428 MM Series E Jan'24 : ~$790 MM . How? » By turning into a Free #Cashflow Machine (-ve WC biz). Somewhat like the retail-tech behemoth Apple! • In the last 8 years - 1.) Average cash collection time from customers has fallen from ~66 days, to just <10 days (mostly pay in advance) 2.) How long do they pay suppliers in? From >10 days in 2017, to ~25-30 days today. 3.) Average cash conversion cycle has gone from >45 days in 2015, to less than ~1 day today. ✓Result? Operating Cashflows >>> Profits » Cash on the books explodes - From ~₹12 Lakhs in FY'17, To over ~₹484 Crores in FY'24! World's "Highest Customer Retention" within D2C? ✓ Dairy category. Almost ~70% of all CD customers acquired ~3-4 years ago give nearly the SAME revenue, EVERY month consistently even till today. New customers add on to these, as CDs marketing spends in last couple of years grew ~5x, simultaneously exploding the free cashflows flywheel. In addition, Cross sell & Up-sell of "high gross margin" newly added products (~60% success rate) like ghee, paneer, vegetables, essentials, etc. In this model "owning customers long-term" gives - ✓ Highest LTV, Lowest CAC, Highest ROCE. Amidst giant peer brands like Amul and Mother Dairy that handle close to ~45M litres / day.. • Country Delight carved its "premium niche" from scratch - Growing ~1.5-2x YoY - From ₹0 to ~₹1380 Crores revenue in last ~8-9 years! - More than 15M deliveries per month - Network of 10,000+ Indian farmers, lakhs of cattle. One of my favourite quote, by the Founder - » Animals are the best non-depreciable assets because they only multiply ;) #india #business #startups #technology #consumer

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While e-commerce majors like Amazon and corporate retailers like Zudio are leading the market, has anyone thought about the fate of small-time textile shops and grocery shops? We may introspect how Kerala's economy has evolved in the last decade. It's a fact that Keralites are now more into online purchases of products, even groceries, after the strong penetration of smartphones and internet. The Covid pandemic also made us more addicted to online stores, making the situation tough for small-time brick-and-mortar businesses. But thankfully, a new set of customers have come up in Kerala to keep the cash chests of small businesses ringing. Yes, the large population of migrant workforce in Kerala is slowly becoming the saviour of the small and medium shops and stores. According to a recent report in The New Indian Express, which quoted the Centre for Migration and Inclusive Development (CMID), there are over 35 lakh migrant workers in Kerala, who are earning a total of Rs 49,000 crore here yearly. On an average, a migrant worker earns Rs 700 per day. Obviously, these migrant labourers send a considerable amount of their earnings to their home state, but they also spend a percentage of their money in Kerala buying groceries, daily needs and clothing. This helps the local businesses to stay afloat. The news report quotes an official of CMID as saying, "While most of the Kerala households now depend on shopping malls or use e-commerce websites like Amazon and Flipkart for their purchases, and commute through Uber or their private vehicles, the small grocery shops, hotels, private buses, and autorickshaws largely survive on the spending by the migrant population here. The migrant population could be spending anything between Rs 30,000 crore to 32,000 crore in Kerala's informal economy." For any local community to thrive and sustain, money needs to keep rotating hands locally, and the very existence of small businesses is a must in the market. More than a workforce for traders, hotels, and small-time manufacturing units, these migrant labourers are now the customers for small and medium traders. #economy

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How Skippi founded by Ravi Kabra and Anuja Kabra is Reviving 90s Nostalgia and Building a Successful Business For 90s kids in India, candies and chuskis were cherished parts of childhood. However, as health concerns grew, their popularity declined. Skippi identified this gap and is now disrupting the market, successfully competing with global giants. Key Numbers: 👉 The global confectionery market is projected to reach USD 290 billion by 2024, growing at a 3.5% CAGR. 👉 Healthy confectionery is expanding at 7% CAGR, double the rate of traditional products. 👉 The global ice pops market is valued at USD 4.5 billion. 👉 Healthy ice pops represent 20% of this market, valued at USD 900 million. 👉 Nostalgia-driven demand for these treats has surged by 30%. Takeaways: 1️⃣ Exports: Skippi has identified demand for its products in India and internationally, including Nepal, Bhutan, Singapore, and the Gulf countries. The company is also planning expansion into the US and UK. This quick execution in response to global demand is a key lesson for D2C brands. 2️⃣ Leveraging Past Experience: The founders of Skippi bring significant experience in the F&B sector, gained from their family business in India and working with reputable brands in Australia. This experience has been invaluable in the start-up ecosystem and is a major factor for investors, as founders familiar with industry challenges are more likely to succeed. 3️⃣ Omni-channel Distribution: Skippi has rapidly expanded its distribution network, integrating offline sales, quick commerce, and online channels. This strategy has driven substantial growth and demonstrates the founders' commitment, which investors highly value. Major Challenge: Skippi faces challenges with counterfeit products, as local brands imitate their branding or falsely claim affiliation. This damages their brand image and poses serious risks for the business. It's crucial for start-ups to protect their intellectual property and secure legal registrations early on. One of our clients, Mr. Ankit Gala , founder of Ciaz Shreemati in Mumbai, faced similar issues and had to rebrand to combat counterfeits. #Skippi #Icepops #D2C #Business #StartupSuccess

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Q-Commerce overtaking traditional e-commerce? Currently we are seeing a big boom in terms of the different SKUs being sold in Quick commerce apps like Zepto, Blinkit, etc. - Atomberg Technologies 's fans - Sony's PS5 - Samosa, Chai and what not - Digital Gold from Jar! Zepto is in talks to raise $300m for its broader ecommerce play. While Swiggy is preparing to file for an IPO this year, incumbent Flipkart is readying its entry into quick commerce. Zomato has invested $240 million in Blinkit over the last one year. Taking a step back, the lines between quick commerce and traditional e commerce have started to become increasingly blurred with QCom pretty much catering to every needs! Also, multiple reports suggest that QCommerce can potentially become bigger than traditional e commerce in India!  Case in point : According to Goldman Sachs, the valuation of Blinkit is greater than Zomato's core food delivery biz! Non-grocery boom in Q-Commerce: Categories including beauty, toys, health and electronics are witnessing robust sales growth on quick-commerce platforms overall. While the overall base for the new categories is still small, aggressive expansion by these players is starting to ensure a dominant presence for these categories. Plus AOV is higher which also comes with better margins, making it a win-win! Case in point: Zepto - 2x sales MoM in segments such as toys and electronics accessories - Beauty category expanded 3x QoQ - ~15% of Zepto’s $1.2bn annualised gross sales currently comes from non-grocery products (Source: Goldman Sachs) For several D2C quick commerce has become the fastest growth channel as well as the platform with highest customer engagement This is definitely a positive for the consumers and the Q-Commerce players, but is everything on the up and up?   As the demand for space on quick-commerce platforms skyrockets, niche D2C cos in segments like FMCG, beauty and personal care, and health and fitness are agreeing to pay a 30-45% commission on sales, besides shelling out on advertising and discounting on these Q-Com platforms. On top of the commissions, brands are also regularly spending around 20% of their total sales on ads on the platforms, and discounting their products by about 20-25% (totaling 60-70% revenue!). This is in stark contrast to the 10-20% commission that large FMCG cos pay these platforms reflecting the intense competition for visibility. The brand's scale and comparison with competitors are crucial considerations when it comes to new listings. On the positive side, smaller D2C brands have seen 40-60% total revenue coming from Q-Commerce compared to ~10-20% from traditional ecommerce, which is surprising! Essentially, Q-com currently has a BIIIG Bargaining power against new D2C brands and can essentially make or break their businesses! Is this sustainable on the long run? #ecommerce #quickcommerce #india #zepto #businessmodel #d2c #startups #LIPostingChallenge

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While scaling offline distribution in GT/MT, founders should never forget the interdependence of demand and supply A brand irrespective of how good it is, won’t sell if consumers don’t find it at their preferred point of purchase And irrespective of how strong its distribution is and how widely available it is, consumers won’t buy it if the product- price-brand proposition isn’t strong enough It takes both demand and supply to fire at the same time to achieve sales There are 2 problems that can happen if brands aren’t able to maintain the balance and why sales don’t scale up a) Poor Distribution : While the product proposition is strong and the brand creates demand, but the product wasn’t available and visible in places where consumers were buying the category. This renders marketing spends useless. Distribution and visibility problems will have to be solved by sales and trade marketing teams b) Poor Demand/Pull: This is the more common and bigger problem for new brands. The products are available and visible in stores, but the product price brand proposition isn’t great (could be lack of PPCMF or brand awareness problem ) and offtakes are low. This triggers a vicious cycle. Retailers hate slow moving items with poor stock turnover. So brands that don’t sell much lose shelf space and even gets delisted from the shop. In this sales, field sales team can’t do much to influence or increase numbers. Demand problems have to be solved by product and brand marketing teams So, any brand looking to scale offline in General Trade or Modern Trade have to balance supply and demand and ensure both grow in tandem. Second chances also don’t come easy here And that is what makes it very difficult. The consumer tech equivalent of this is the difficulty in scaling 2 sided marketplaces

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Driving Without Honking: A 2-Day experience from West Delhi to Gurgaon and return Yesterday and today, I undertook a challenge to drive from West Delhi to Gurgaon (25km) and back without honking. It turned out to be a fascinating and insightful experience. Challenges Faced 1. Heavy Traffic: Navigating through peak office time without honking was tough. 2. Unpredictable Drivers: Dealing with sudden lane changeing drivers tested patience. 3. Pedestrians & Bikers: Ensuring safety for pedestrians and bikers without using the horn required extra vigilance. Benefits Experienced: 1. Surprisingly, not honking made the drive much calmer and more focused. 2. I was more alert and mindful of my surroundings. 3. It contributed to noise pollution reduction, even if a bit Key Learnings 1. Being patient helps navigate challenging driving situations effectively. In life too patience helps sail through challenging situations effectively 2. Using indicators and eye contact improved my ability to communicate intentions without honking. 3. Adapting to a different driving style broadened my perspective on road behavior. Adaptability helps tackle unforeseen challenges and turn them into opportunities. This experience has reinforced my belief that once you set your mind on something nothing is impossible. #DrivingExperience #NoHonkingChallenge #MindfulDriving

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🌿 Empowering Your Choices at The Organic World 🌿 At The Organic World, we are driven by three core principles: Affordability, Accessibility, and Authenticity. We believe that everyone deserves the choice to lead a healthier, chemical-free lifestyle without having to compromise on quality or cost. 🍏 Affordability: We strive to make organic and natural products more economical, ensuring that healthy choices are within reach for everyone. 📍 Accessibility: With 21 stores across Bengaluru and plans to expand further, we are bringing organic products closer to you, making it convenient to choose healthy. 🔍 Authenticity: Every item on our shelves is free from harmful chemicals. We partner with trusted farms and brands to bring you the purest products. Join us in transforming the way we think about food and wellness. Together, we can make a healthier, more sustainable world. 🌍 #OrganicLiving #SustainableChoices #TheOrganicWorld Nimida Group

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