HMVL Invests ₹9.34 Cr in Organic Foods with Kaze Living

HMVL is investing up to ₹9.34 Crore in KSKT Agromart Private Limited, the operator of the online platform 'Kaze Living'. KSKT Agromart reported a turnover of ₹12.99 Crore in FY2024-25, a significant increase from ₹5.45 Crore in FY2023-24.

The Deal

Hindustan Media Ventures Limited (HMVL) is investing up to ₹9.34 Crore in KSKT Agromart Private Limited, the company behind the 'Kaze Living' online platform. The investment will be made through the subscription of equity shares or convertible equity-linked instruments.

KSKT Agromart operates 'Kaze Living,' focusing on delivering healthier food options, including organic produce, dairy, and specialty items. The company has shown rapid growth, with its turnover rising from ₹1.17 Crore in FY2022-23 to ₹5.45 Crore in FY2023-24, and further to ₹12.99 Crore in FY2024-25. The investment is expected to be completed by April 2026.

Strategic Shift for HMVL

This investment represents a significant strategic move for HMVL, a company primarily known for its extensive media operations, including the Hindi daily 'Hindustan'. It marks an entry into the growing organic grocery and healthy food market, a sector seeing strong consumer demand.

The move could allow HMVL to use its media assets for promotional support for 'Kaze Living,' while diversifying its revenue streams away from the traditional media sector, which has faced challenges.

HMVL's Diversification Strategy

Hindustan Media Ventures Limited is an Indian media company, part of the Dainik Jagran group. Its main businesses are in print media (publishing 'Hindustan' newspaper), radio, and digital platforms.

HMVL has previously looked to diversify, announcing investments totaling over ₹65 crore in sectors like sexual wellness, sports, manufacturing, and food technology in early 2025. This suggests a broader strategy to explore emerging business opportunities.

Impact of the Investment

• HMVL gains exposure to the high-growth online organic and healthy foods market.
• KSKT Agromart receives essential capital to support its expansion and operations.
• The investment diversifies HMVL's revenue base, reducing its reliance solely on the media sector.
• 'Kaze Living' could benefit from HMVL's media reach for marketing and brand building.

Potential Risks

• Sector Execution Risk: HMVL is entering a new business area, which involves risks in understanding and managing the complexities of the agri-retail supply chain.
• Dilution: The investment through convertible instruments means potential future dilution of HMVL's stake, depending on conversion terms.
• Performance Dependency: The success of the investment relies on 'Kaze Living's' ability to maintain its rapid growth and profitability in a competitive market.

Market Context

Major players in India's organized retail and online grocery market include Avenue Supermarts (DMart), known for its value pricing and owned stores; Reliance Retail, a diversified giant with a vast network and digital presence (JioMart); and Tata Consumer Products, which is expanding its packaged foods and beverages business. These companies manage extensive physical and online retail infrastructures for large-scale grocery distribution.

HMVL's entry through a minority investment in a specialized online platform like 'Kaze Living' offers a different approach compared to these established retail companies.

Key Growth Figures

• KSKT Agromart's turnover grew from ₹1.17 Crore in FY2022-23 to ₹5.45 Crore in FY2023-24, and further to ₹12.99 Crore in FY2024-25.

What to Watch For

• HMVL's final ownership stake after any convertible instruments are converted.
• The investment closing by the April 2026 deadline.
• 'Kaze Living's' performance and its contribution to HMVL's revenue.
• Potential benefits from HMVL's media reach for 'Kaze Living'.