KOLKATA: ITC plans to invest up to Rs 5,000 crore buying shares of its rivals across sectors it operates in, its chairman YC Deveshwar said.
"We currently have a liquidity in our books to the tune of Rs 4,000-5,000 crore of funds. We would like to deploy it as equity investments in sectors where we operate, have a thorough understanding and hence feel safer about our investment," he told newsmen after the company's 100th AGM here on Friday.
The cigarettes-to-hotels conglomerate will look at a wide range of rival companies in FMCG, IT and agri-products for treasury investment. ITC also plans to get into dairy business, making pasteurised milk, milk powder, cheese, milk chocolates and butter, Deveshwar told the AGM. "It's actually a compliment to rivals if we invest in them. As far as I know, some of them are actually happy with our investment," said Deveshwar.
ITC's investment inEast India Hotels (EIH) andHotel Leelaventure have yielded handsome returns. The company boughtEIH shares at Rs 35, and on Friday it closed at Rs 96.05 on the BSE. Hotel Leelaventure share closed at Rs 45.75. ITC also holds stakes in cigarette companyVST Industries and food companyAgro Tech Foods, which makes Sundrop oil and ACT II popcorn.
ITC, which holds little less than 15% in EIH and Leelaventure, had at one point created a takeover threat in both these companies. Asked whether ITC may increase its stake in EIH and Leelaventure up to 25%-the new trigger point for mandatory buyout offer as per market regulator Sebi's new takeover code-Deveshwar said the company will do so if the share price is attractive. "It will be decided by the treasury. If required, we may also sell shares if prices are attractive," he said.
ITC also plans to enter the dairy business by rolling out products like pasteurised milk, skimmed milk powder, cheese, milk chocolates and butter. "We are starting a project in Munger in Bihar where we are engaged in animal husbandry project to improve the yield of cattle. The first products to be launched in the market will be ghee and skimmed milk powder," he said.
Deveshwar said in the AGM that ITC plans to turn its personal care and branded food business profitable over the next six year.
Success in my Habit
Friday, July 29, 2011
JLL launches separate consultation arm for non-realty firms
NEW DELHI: The country's largestproperty consultantJones Lang LaSalle India today said it has started a new arm to service non-realty focused companies that want to put in money in the sector as an investment purpose only.
The company has launched a new division -- JLL Corporate Finance, which has already brokered some high profile deals such asJet Airways tying up with Godrej Properties to develop 2.5 acres land in Bandra Kurla Complex andMafatlal Industries selling 7.6 acres land to Piramal Realty for Rs 605.80 crore.
"Real estate as an investment and asset class has existed in India almost forever. However, this sector has also been limited in many respects by a severe dearth of information.
"JLL Corporate Finance will assist corporates to make informed decisions about acquiring, disposing of or optimally utilising their real estate, regardless of whether they occupy it or have acquired it purely from an investment perspective," Jones Lang LaSalle (JLL) India Chairman and Country Head Anuj Puri said in a statement.
The consultant firm said every business is functionally into real estate as traditionally all Indian corporates have parked funds in this sector when they have excess liquidity, especially when they perceive the property market to be down.
However,JLL India said not all companies or businesses have has the expertise required to make sound business decisions about their realty holdings.
"During times of market improvement or when they require liquidity to rake back into their business, they tend to monetise their real estate holdings," it added.
JLL Corporate Finance Managing Director Ambar Maheshwari said the companies, for whom real estate is not a core business focus, are engaged in such dealings on a gut-feel and promoter-driven perspective.
"Such a perspective can only come with a sound understanding of the real estate sector, which is extremely important when it comes to addressing the shareholder value issue. Real estate is a substantial asset class and unless corporates optimise the returns their real estate portfolios yield, shareholder value is compromised," he added.
The company has launched a new division -- JLL Corporate Finance, which has already brokered some high profile deals such asJet Airways tying up with Godrej Properties to develop 2.5 acres land in Bandra Kurla Complex andMafatlal Industries selling 7.6 acres land to Piramal Realty for Rs 605.80 crore.
"Real estate as an investment and asset class has existed in India almost forever. However, this sector has also been limited in many respects by a severe dearth of information.
"JLL Corporate Finance will assist corporates to make informed decisions about acquiring, disposing of or optimally utilising their real estate, regardless of whether they occupy it or have acquired it purely from an investment perspective," Jones Lang LaSalle (JLL) India Chairman and Country Head Anuj Puri said in a statement.
The consultant firm said every business is functionally into real estate as traditionally all Indian corporates have parked funds in this sector when they have excess liquidity, especially when they perceive the property market to be down.
However,JLL India said not all companies or businesses have has the expertise required to make sound business decisions about their realty holdings.
"During times of market improvement or when they require liquidity to rake back into their business, they tend to monetise their real estate holdings," it added.
JLL Corporate Finance Managing Director Ambar Maheshwari said the companies, for whom real estate is not a core business focus, are engaged in such dealings on a gut-feel and promoter-driven perspective.
"Such a perspective can only come with a sound understanding of the real estate sector, which is extremely important when it comes to addressing the shareholder value issue. Real estate is a substantial asset class and unless corporates optimise the returns their real estate portfolios yield, shareholder value is compromised," he added.
Ford to create 5,000 jobs in Gujarat
GANDHINAGAR: US automobile majorFord will invest $1 billion (Rs.4,000 crore) to manufacture cars and engines at an integrated facility at Sanad in Gujarat, generating 5,000 jobs, the company announced Thursday.
Ford has entered signed a memorandum of understanding (MoU) with theGujarat government to construct the facility, a company statement said. The construction of both the plants will begin later this year, with the first vehicle and engine scheduled to come off the line in 2014, it added.
"We selected Gujarat because of its pro-business environment, infrastructure, access to ports in northwestern India and skilled workforce," said Joe Hinrichs, president and chief executive, Ford Asia Pacific and Africa regions.
"The facilities (will be used for) stamping, body, paint and assembly operations for vehicle manufacturing, as well as machining and assembly operations for engine manufacturing," the statement said.
"The vehicle manufacturing plant will have an initial annual capacity of 240,000 units, and the engine plant will have an initial annual capacity of 270,000 engines," the statement said.
Ford has entered signed a memorandum of understanding (MoU) with theGujarat government to construct the facility, a company statement said. The construction of both the plants will begin later this year, with the first vehicle and engine scheduled to come off the line in 2014, it added.
"We selected Gujarat because of its pro-business environment, infrastructure, access to ports in northwestern India and skilled workforce," said Joe Hinrichs, president and chief executive, Ford Asia Pacific and Africa regions.
"The facilities (will be used for) stamping, body, paint and assembly operations for vehicle manufacturing, as well as machining and assembly operations for engine manufacturing," the statement said.
"The vehicle manufacturing plant will have an initial annual capacity of 240,000 units, and the engine plant will have an initial annual capacity of 270,000 engines," the statement said.
MediaTek buys 10% in Spice Digital for $20 million
NEW DELHI: Taiwan's MediaTek, maker of chips used in mobile phones, picked up a 10% stake in Indian value-added services playerSpice Digital for $20 million, valuing the company at $200 million, or 883 crore.
MediaTek chairman Ming-Kai Tsai said: "Through this investment in Spice Digital, we are hoping to capitalise on its market potential and reinforce its strong operator relationship and leading position in India, SEA, Africa and Middle East."
This is the latest move by MediaTek, which already has presence in India, to expand into the fast growing economy and its booming telecom market. Mobile value-added service market in India is expected to grow 100% over five years and will constitute about 10% of total telecom revenue for Indian operators, according to market research.
MediaTek chairman Ming-Kai Tsai said: "Through this investment in Spice Digital, we are hoping to capitalise on its market potential and reinforce its strong operator relationship and leading position in India, SEA, Africa and Middle East."
This is the latest move by MediaTek, which already has presence in India, to expand into the fast growing economy and its booming telecom market. Mobile value-added service market in India is expected to grow 100% over five years and will constitute about 10% of total telecom revenue for Indian operators, according to market research.
ONGC, Sistema may soon merge assets in Russia
NEW DELHI: Oil and Natural Gas Corporation (ONGC) is scrutinising data of Russian blocks of theSistema group, preparatory to finalising a seven-month old proposal to merge their assets in Russia to create giant energy firm that will be 25% owned by Indian firm's overseas armONGC Videsh (OVL), two oil ministry officials said. They said Sistema was also studying data of OVL's Russian assets held by Imperial Energy.
"The valuation of companies will be ascertained after that," one official said, requesting anonymity.OVL acquired Imperial Energy in 2009 for $2.1 billion. OVL managing directorJoeman Thomas confirmed the development. "We have received data from Sistema very recently. It may take couple of months to analyse data before we take a decision," he told ET.
Last December, energy majors of two countries had announced a mega-merger of three companies - Bashneft, RussNeft and Imperial Energy - that would make ONGC a shareholder in Russian firms' annual oil production of 25 million tonnes, refining capacity of 20 million tonnes a year, and discovered oilfields Trebs and Titov. The merger is expected to bail out Imperial Energy that is struggling to be profitable due to high taxes imposed on foreign oil and gas in Russia.
Earlier, Thomas told reporters the company was expecting a tax relief from the Russian authorities. "So far, we have been able to manage operating profit of $15-16 per barrel before capex and opex (capital expenditure and operating expenditure)," he said. India is demanding exemption from mineral extraction tax and a 10-year tax holiday from export duty for Imperial Energy as its assets are located in difficult geographical terrain.
Russia provides tax relief to companies operating in similar geographical regions such as East Siberia. The proposed merger deal will also give ONGC an immediate access to the biggest discovered oilfields in Russia, Trebs and Titov, which India was eyeing for a long time. The fields have estimated 200 million tonnes recoverable reserves, equivalent to 35% of ONGC's total oil reserves. The deal is significant for India that imports 80% of the oil it consumes.
The deal, which does not involve any cash transaction, was announced in December 21, 2010, during the official visit of PresidentDmitry Medvedev to India. Sistema has 75% direct stake in Bashneft that produces 13 million tonnes of oil from fields in Russia.
"The valuation of companies will be ascertained after that," one official said, requesting anonymity.OVL acquired Imperial Energy in 2009 for $2.1 billion. OVL managing directorJoeman Thomas confirmed the development. "We have received data from Sistema very recently. It may take couple of months to analyse data before we take a decision," he told ET.
Last December, energy majors of two countries had announced a mega-merger of three companies - Bashneft, RussNeft and Imperial Energy - that would make ONGC a shareholder in Russian firms' annual oil production of 25 million tonnes, refining capacity of 20 million tonnes a year, and discovered oilfields Trebs and Titov. The merger is expected to bail out Imperial Energy that is struggling to be profitable due to high taxes imposed on foreign oil and gas in Russia.
Earlier, Thomas told reporters the company was expecting a tax relief from the Russian authorities. "So far, we have been able to manage operating profit of $15-16 per barrel before capex and opex (capital expenditure and operating expenditure)," he said. India is demanding exemption from mineral extraction tax and a 10-year tax holiday from export duty for Imperial Energy as its assets are located in difficult geographical terrain.
Russia provides tax relief to companies operating in similar geographical regions such as East Siberia. The proposed merger deal will also give ONGC an immediate access to the biggest discovered oilfields in Russia, Trebs and Titov, which India was eyeing for a long time. The fields have estimated 200 million tonnes recoverable reserves, equivalent to 35% of ONGC's total oil reserves. The deal is significant for India that imports 80% of the oil it consumes.
The deal, which does not involve any cash transaction, was announced in December 21, 2010, during the official visit of PresidentDmitry Medvedev to India. Sistema has 75% direct stake in Bashneft that produces 13 million tonnes of oil from fields in Russia.
Data shows deeper US recession, sharper slowdown
WASHINGTON: The Great Recession" was even greater than previously thought, and theUS economy has skated uncomfortably close to a new one this year.
New data on Friday showed the 2007-2009US recession was much more severe than prior measures had found, with economic output declining a cumulative of 5.1 per cent instead of 4.1 per cent.
The report also showed the current slowdown began earlier and has been deeper than previously thought, with growth in the first quarter advancing at only a 0.4 per cent annual pace.
The data indicated the economy began slowing in the fourth quarter of last year before high gasoline prices and supply chain disruptions from Japan's earthquake had hit, suggesting the weakness is more fundamental and less temporary than economists had believed.
The annual revisions ofUS GDP data from the Commerce Department showed economic growth contracted at an annual average rate of 0.3 per cent between 2007 and 2010. Output over that stretch had previously been estimated to have been flat.
At the depth of the recession in the fourth quarter of 2008, output plummeted at an annual rate of 8.9 per cent -- the steepest quarterly decline since 1958, and 2.1 per centage points more than previously reported.
For a table, see see [ID:nCLATIE70O] The recession was already the deepest since the Great Depression and, while it still pales in comparison, the data help explain why it is taking so long to shake off its legacy.
"The general picture of the recession remains pretty much the same, it was a record decline before and now it is a even bigger decline,"Steven Landefeld, the director of the department'sBureau of Economic Analysis, told reporters.
New data on Friday showed the 2007-2009US recession was much more severe than prior measures had found, with economic output declining a cumulative of 5.1 per cent instead of 4.1 per cent.
The report also showed the current slowdown began earlier and has been deeper than previously thought, with growth in the first quarter advancing at only a 0.4 per cent annual pace.
The data indicated the economy began slowing in the fourth quarter of last year before high gasoline prices and supply chain disruptions from Japan's earthquake had hit, suggesting the weakness is more fundamental and less temporary than economists had believed.
The annual revisions ofUS GDP data from the Commerce Department showed economic growth contracted at an annual average rate of 0.3 per cent between 2007 and 2010. Output over that stretch had previously been estimated to have been flat.
At the depth of the recession in the fourth quarter of 2008, output plummeted at an annual rate of 8.9 per cent -- the steepest quarterly decline since 1958, and 2.1 per centage points more than previously reported.
For a table, see see [ID:nCLATIE70O] The recession was already the deepest since the Great Depression and, while it still pales in comparison, the data help explain why it is taking so long to shake off its legacy.
"The general picture of the recession remains pretty much the same, it was a record decline before and now it is a even bigger decline,"Steven Landefeld, the director of the department'sBureau of Economic Analysis, told reporters.
HCL Technologies to hire 3,000 people in Q1
Software exporter HCL Technologies (HCLT) today said it will hire about 3,000 people in the July-September quarter."We have already hired 3,000 people in the June quarter. In this quarter, we will hire an additional 3,000 freshers," HCLT Chief Executive Vineet Nayar told reporters here.
The Indian IT industry is ramping up its headcount as it gears up to meet renewed demand for IT services following a slump during the economic meltdown.
The companies are also building up bench strengths to handle the bigger size and variety of projects they expect to grab in the coming months.
Larger rival Tata Consultancy Services ( TCS)) plans to hire about 60,000 people this fiscal, while peers Wipro and Infosys are also hiring aggressively.
The move to hire more people, coupled with wage hikes, will have an impact of about 300 basis points on the first quarter numbers of HCLT.
"We expect the September quarter margins to drop 300 basis points. Of this, about 250 bps would be on account of wage hikes and the remaining 50 bps on new hires," Nayar said.
The company, which follows a July-June fiscal, has given a 12-14 per cent wage hike for its Indiastaff, while onsite salaries have been increased by 2-3 per cent. The wage hikes are effective July 1.
HCLT is, however, confident of making up for the drop in margins. "Though we are expecting a 300 bps drop in margins in Q1, we will recover in the next three quarters," he said.
The company also plans a capital expenditure of USD 230 million in FY'12.
"Last year, our capex was at USD 170 million. This year, we are stepping up our capex to USD 230 million. Most of this will go toward expansion of campuses," HCLT Chief Financial Officer Anil Chanana said.
The Indian IT industry is ramping up its headcount as it gears up to meet renewed demand for IT services following a slump during the economic meltdown.
The companies are also building up bench strengths to handle the bigger size and variety of projects they expect to grab in the coming months.
Larger rival Tata Consultancy Services ( TCS)) plans to hire about 60,000 people this fiscal, while peers Wipro and Infosys are also hiring aggressively.
The move to hire more people, coupled with wage hikes, will have an impact of about 300 basis points on the first quarter numbers of HCLT.
"We expect the September quarter margins to drop 300 basis points. Of this, about 250 bps would be on account of wage hikes and the remaining 50 bps on new hires," Nayar said.
The company, which follows a July-June fiscal, has given a 12-14 per cent wage hike for its Indiastaff, while onsite salaries have been increased by 2-3 per cent. The wage hikes are effective July 1.
HCLT is, however, confident of making up for the drop in margins. "Though we are expecting a 300 bps drop in margins in Q1, we will recover in the next three quarters," he said.
The company also plans a capital expenditure of USD 230 million in FY'12.
"Last year, our capex was at USD 170 million. This year, we are stepping up our capex to USD 230 million. Most of this will go toward expansion of campuses," HCLT Chief Financial Officer Anil Chanana said.
Nintendo posts loss, slashes 3DS prices
Japan's Nintendo reported a first-quarter loss, lowered its annual forecast and slashed the price of its 3DS handheld console by 40 per cent less than six months after its launch.
The gaming giant booked a net loss of 25.5 billion yen ($327.9 million) for the April-June quarter and cut its forecast for the year to March 2012 to a net profit of 20 billion yen, down 74.2 per cent from the previous year.
Nintendo also said it would slash the price of its 3DS handheld console, released in February, from 25,000 yen to 15,000 yen from August 11 in Japan, to be followed by similar cuts in foreign markets by September.
The 3DS, the world's first video game console with a 3D screen that works without special glasses, globally sold 710,000 units and 4.53 million game titles during the period.
Its price will be lowered to generate "momentum" for the device before the key year-end shopping season, Nintendo said.
Meanwhile, the Wii home console sold 1.56 million units, thanks mainly to price cuts in the European and US markets. But the Wii business also suffered from having a limited number of mega hit game titles.
In the first quarter, Kyoto-based Nintendo -- which like other game makers faces stiff competition from smart phones and tablet computers -- said a limited number of megahit game titles and a soaring yen hurt its earnings.
A surging yen against the dollar, the inventory markdown due to the planned price cuts, global advertisement and promotional costs for the 3DS, plus research and development costs for new products, also weighed on the earnings.
The company lowered its exchange rate projections for the dollar from 83 yen to 80 yen and for the euro from 120 yen to 115 yen. In the first quarter last year, the company valued the dollar at an average of 92 yen.
"These factors considerably decreased profits," Nintendo said.
Nintendo in June announced a plan to launch a Wii U" console in 2012, as the global game sector becomes increasingly crowded with competitors.
The gaming giant booked a net loss of 25.5 billion yen ($327.9 million) for the April-June quarter and cut its forecast for the year to March 2012 to a net profit of 20 billion yen, down 74.2 per cent from the previous year.
Nintendo also said it would slash the price of its 3DS handheld console, released in February, from 25,000 yen to 15,000 yen from August 11 in Japan, to be followed by similar cuts in foreign markets by September.
The 3DS, the world's first video game console with a 3D screen that works without special glasses, globally sold 710,000 units and 4.53 million game titles during the period.
Its price will be lowered to generate "momentum" for the device before the key year-end shopping season, Nintendo said.
Meanwhile, the Wii home console sold 1.56 million units, thanks mainly to price cuts in the European and US markets. But the Wii business also suffered from having a limited number of mega hit game titles.
In the first quarter, Kyoto-based Nintendo -- which like other game makers faces stiff competition from smart phones and tablet computers -- said a limited number of megahit game titles and a soaring yen hurt its earnings.
A surging yen against the dollar, the inventory markdown due to the planned price cuts, global advertisement and promotional costs for the 3DS, plus research and development costs for new products, also weighed on the earnings.
The company lowered its exchange rate projections for the dollar from 83 yen to 80 yen and for the euro from 120 yen to 115 yen. In the first quarter last year, the company valued the dollar at an average of 92 yen.
"These factors considerably decreased profits," Nintendo said.
Nintendo in June announced a plan to launch a Wii U" console in 2012, as the global game sector becomes increasingly crowded with competitors.
Alibaba launches smartphone running its Cloud OS
Alibaba Group launched its first self-developed mobile operating system andsmartphone on Thursday in a bid to capture a slice of China's rapidly growing mobile Internet market.
The cloud computing-based operating system, Aliyun, will run the K-Touch Cloud Smartphone, to be launched at the end of July in 10 colours, saidWang Jian, president ofAlibaba Cloud Computing, a unit of Alibaba Group.
A tablet PC running the Aliyun OS, which is based on a customised Android system, will also be launched in China by the end of the year, Wang told reporters after a presentation inBeijing.
Handset manufacturer Tianyu will manufacture the K-Touch as well as the tablet, Wang said.
"Mobile users want a more open and convenient mobile OS, one that allows them to truly enjoy all that the Internet has to offer, right in the palm of their hand, and the cloud OS, with its use of cloud-based applications, will provide that," said
The Aliyun operating system will feature cloud services such as email, Internet search and support for web-based applications. Users will not be required to download or install applications onto their mobile devices, Wang said.
Alibaba Cloud plans to integrate the operating system with other devices including mobile phones with larger screens and tablet computers in the coming months.
Wang said the company was looking to launch tablet computers running Aliyun by the end of the year.
The company is currently in talks with Qualcomm Inc to develop a lower-end chipset optimised to run Aliyun OS in lower-end mobile phones, Wang said. The K-Touch phones use a high-end chipset fromNvidia Corp for crisp display of intricate games.
Alibaba Group, which is 40 percent owned by Yahoo Inc , operates China's largest B2B online marketplace, Alibaba.com , and China's largest online consumer shopping site, Taobao.com.
Wang said Alibaba does not have sales targets for the K-Touch. "We are not responsible for selling the phone; we just provide the system, so there is no hard number," he said, adding that within 15 minutes of the end of Thursday's presentation, Alibaba sold 1,000 of the phones on Taobao.
Alibaba will have an English-language version of the Aliyun OS ready by the end of this year, but Wang could not say when English versions of the phones and tablets might go on sale.
Nor will Alibaba get into the phone-manufacturing business, Wang said. "We shouldn't make a phone," he said. "We're not in that ecosystem, and it's a very good decision not to make a phone."
China, the world's largest mobile phone market, has nearly 907 million mobile subscribers, according to statistics provided by the three leading telcos in June.
The cloud computing-based operating system, Aliyun, will run the K-Touch Cloud Smartphone, to be launched at the end of July in 10 colours, saidWang Jian, president ofAlibaba Cloud Computing, a unit of Alibaba Group.
A tablet PC running the Aliyun OS, which is based on a customised Android system, will also be launched in China by the end of the year, Wang told reporters after a presentation inBeijing.
Handset manufacturer Tianyu will manufacture the K-Touch as well as the tablet, Wang said.
"Mobile users want a more open and convenient mobile OS, one that allows them to truly enjoy all that the Internet has to offer, right in the palm of their hand, and the cloud OS, with its use of cloud-based applications, will provide that," said
The Aliyun operating system will feature cloud services such as email, Internet search and support for web-based applications. Users will not be required to download or install applications onto their mobile devices, Wang said.
Alibaba Cloud plans to integrate the operating system with other devices including mobile phones with larger screens and tablet computers in the coming months.
Wang said the company was looking to launch tablet computers running Aliyun by the end of the year.
The company is currently in talks with Qualcomm Inc to develop a lower-end chipset optimised to run Aliyun OS in lower-end mobile phones, Wang said. The K-Touch phones use a high-end chipset fromNvidia Corp for crisp display of intricate games.
Alibaba Group, which is 40 percent owned by Yahoo Inc , operates China's largest B2B online marketplace, Alibaba.com , and China's largest online consumer shopping site, Taobao.com.
Wang said Alibaba does not have sales targets for the K-Touch. "We are not responsible for selling the phone; we just provide the system, so there is no hard number," he said, adding that within 15 minutes of the end of Thursday's presentation, Alibaba sold 1,000 of the phones on Taobao.
Alibaba will have an English-language version of the Aliyun OS ready by the end of this year, but Wang could not say when English versions of the phones and tablets might go on sale.
Nor will Alibaba get into the phone-manufacturing business, Wang said. "We shouldn't make a phone," he said. "We're not in that ecosystem, and it's a very good decision not to make a phone."
China, the world's largest mobile phone market, has nearly 907 million mobile subscribers, according to statistics provided by the three leading telcos in June.
Logitech cuts targets, replaces CEO
Logitech , the world's biggest computer mouse maker, cut its sales target and replaced its chief executive on Thursday after weak sales in Europe pushed it into the red in the three months to the end of June.
Logitech, which also produces speakers, webcams and keyboards, faces sluggish consumer demand in Europe where a cloudy economic outlook is dampening willingness to spend.
Sales to Europe, the Middle East and Africa in the first quarter of its business year fell 14 percent, while in the Americas they rose only 1 percent.
After trying to entice buyers by slashing the price on its key Google TV set-top box by $150, the firm posted a first-quarter net loss of $30 million, versus a profit of $20 million a year earlier.
In a note to clients entitled "Logitech hasn't yet made it out of the mouse trap", analysts at Wegelin described the group's results and outlook as disappointing.
Shares in the company sank to their lowest since October 2001, and were down 9 percent to 7. 48 Swiss francs at 0 911 GMT, underperforming a 0.9 percent weaker Swiss index. They have plummeted more than 50 percent since January.
"The result is abysmal," said one trader in Zurich.Philips , Europe's biggest consumer electronics producer, has also been hit by sagging consumer demand, and issued a grim outlook after a surprise quarterly loss.
To help restore confidence, Chairman Guerrino De Luca, who headed the company from 1998-2008, will replace Gerald Quindlen as chief executive until a permanent replacement can be found, Logitech said.
"We welcome the return of De Luca as CEO (until another candidate is identified) which may help to restore some confidence," Michael Voeth of Vontobel said in a note.
After the weak first quarter, Logitech now expects sales of $2.5 billion for the 2012 fiscal year, down from an earlier forecast of $2.6 billion, a figure that had already disappointed some analysts
Logitech, which also produces speakers, webcams and keyboards, faces sluggish consumer demand in Europe where a cloudy economic outlook is dampening willingness to spend.
Sales to Europe, the Middle East and Africa in the first quarter of its business year fell 14 percent, while in the Americas they rose only 1 percent.
After trying to entice buyers by slashing the price on its key Google TV set-top box by $150, the firm posted a first-quarter net loss of $30 million, versus a profit of $20 million a year earlier.
In a note to clients entitled "Logitech hasn't yet made it out of the mouse trap", analysts at Wegelin described the group's results and outlook as disappointing.
Shares in the company sank to their lowest since October 2001, and were down 9 percent to 7. 48 Swiss francs at 0 911 GMT, underperforming a 0.9 percent weaker Swiss index. They have plummeted more than 50 percent since January.
"The result is abysmal," said one trader in Zurich.Philips , Europe's biggest consumer electronics producer, has also been hit by sagging consumer demand, and issued a grim outlook after a surprise quarterly loss.
To help restore confidence, Chairman Guerrino De Luca, who headed the company from 1998-2008, will replace Gerald Quindlen as chief executive until a permanent replacement can be found, Logitech said.
"We welcome the return of De Luca as CEO (until another candidate is identified) which may help to restore some confidence," Michael Voeth of Vontobel said in a note.
After the weak first quarter, Logitech now expects sales of $2.5 billion for the 2012 fiscal year, down from an earlier forecast of $2.6 billion, a figure that had already disappointed some analysts
Tuesday, July 26, 2011
Tata Sky launches 'Tata Sky Mobile Access'
New Delhi: Tata Sky, the leading direct-to-home service provider, has in association withRyz Media Inc introduced 'Tata Sky Mobile Access', a cutting edge app for Apple devices.
This app enables subscribers to user their iPhones,iPads and iPod Touch as a universal remote to control consumer electronic devices in their homes. In addition, subscribers can use the app to access 4-day programme listings, read extended information for movies; search for programs based on title and set their favourite shows for recording on the go. Keeping in line with the constant need for being connected to friends and family through social platforms,Tata Sky Mobile access allows subscribers to share what they are watching on TV through Facebook and Twitter, the company said.
Further, the app allows subscribers to view which programmes their Facebook friends are currently watching, helping them to decide on what to watch. At launch, this app will be available on Apple Devices only. An app for Android devices will be launched shortly after.
This app can be downloaded free of cost from the iTunes store and will work across all Tata Sky boxes. To use the Universal Remote Functionality, the subscriber will need to use the app along with a unique orb-shaped MP3 Mobile Accessory. This accessory plugs into the audio jack of the Apple Device and enables the subscriber to control his Tata Sky set-top box, TV, amplifier and DVD player. As part of the launch phase, the new MP3 Mobile accessory will be given free of charge to the first 1000 subscribers. Post the promotional period, the accessory can be purchased for Rs 350, including shipping and handling.
Speaking on the launch, Vikram Mehra, Chief Marketing Officer, Tata Sky, said, "Over the last one year, India has witnessed an explosion of tablets and smart phones combined with an unprecedented popularity of social platforms like Facebook and Twitter across all age groups. The Tata Sky Mobile Access App is a natural integration of TV entertainment with these smart devices allowing subscribers to not only control their TV and set-top boxes with their smart devices, but also make their content choice based on what their friends and family are viewing. This is the first-of-its-kind functionality offered by any DTH service provider in India."
This app enables subscribers to user their iPhones,iPads and iPod Touch as a universal remote to control consumer electronic devices in their homes. In addition, subscribers can use the app to access 4-day programme listings, read extended information for movies; search for programs based on title and set their favourite shows for recording on the go. Keeping in line with the constant need for being connected to friends and family through social platforms,Tata Sky Mobile access allows subscribers to share what they are watching on TV through Facebook and Twitter, the company said.
Further, the app allows subscribers to view which programmes their Facebook friends are currently watching, helping them to decide on what to watch. At launch, this app will be available on Apple Devices only. An app for Android devices will be launched shortly after.
This app can be downloaded free of cost from the iTunes store and will work across all Tata Sky boxes. To use the Universal Remote Functionality, the subscriber will need to use the app along with a unique orb-shaped MP3 Mobile Accessory. This accessory plugs into the audio jack of the Apple Device and enables the subscriber to control his Tata Sky set-top box, TV, amplifier and DVD player. As part of the launch phase, the new MP3 Mobile accessory will be given free of charge to the first 1000 subscribers. Post the promotional period, the accessory can be purchased for Rs 350, including shipping and handling.
Speaking on the launch, Vikram Mehra, Chief Marketing Officer, Tata Sky, said, "Over the last one year, India has witnessed an explosion of tablets and smart phones combined with an unprecedented popularity of social platforms like Facebook and Twitter across all age groups. The Tata Sky Mobile Access App is a natural integration of TV entertainment with these smart devices allowing subscribers to not only control their TV and set-top boxes with their smart devices, but also make their content choice based on what their friends and family are viewing. This is the first-of-its-kind functionality offered by any DTH service provider in India."
Walt Disney offers to buy out UTV's rest 49.56% stake for Rs 2,000 cr
NEW DELHI:Walt Disney Co plans to buy the rest ofUTV Software Communications (UTV) it does not own and delist the company in a deal potentially valued at $454 million, or Rs 2,014 crore, as the US entertainment giant seeks to expand its presence in Bollywood, media and gaming.
The Burbank, California-based company, which owns 50.44% of UTV Software, said in a statement it would buy out public shareholders at a price not exceeding 1,000 per share, an 11% premium to Monday's stock closing price of Rs 901.8. The buyout will give Walt Disney control over five businesses.
UTV Software, a holding company, makes and distributes movies, broadcasts a clutch of movie and entertainment channels, produces content for television and other digital media, and also has a presence in gaming.
It operates through a number of subsidiaries, including movie production under UTV Motion Pictures, Indiagames, andUTV Global Broadcasting that broadcasts entertainment and movie channels. All these will become part of Walt Disney's Indian unit once the transaction is completed.
Following the news of the buyout, one of the biggest in India's media and entertainment industry, the company's stock closed at Rs 950.45, or 5.39% higher, on the Bombay Stock Exchange on Tuesday.
Disney said it would also buy the 20% stake held by promoter Rohinton (Ronnie) Screwvala and his associates if it garnered enough shares to delist the company. It, however, said delisting of a public company in India was a long process and could take several months to complete.
"Given the multiple stages and the nature of the process, a successful outcome is uncertain," it added.
The entertainment behemoth also said if the delisting went through, Screwvala would cease to be the chairman and managing director ofUTV Software Communications and become the managing director ofThe Walt Disney Company India, responsible for overseeing Indian businesses of theDisney Group.
Mahesh Samat, currently managing Disney's assets in India, will become chief operating officer, reporting to Screwvala. The statement did not say what would happen if the response to the open offer was insufficient to delist the company. Disney's statement merely said if the delisting was unsuccessful, it would "consider the full range of strategic options".
Farokh Balsara, partner & national leader, media & entertainment practice, at consultant Ernst & Young, said the deal illustrated the potential of the Indian movie and entertainment market. "It is an endorsement of the potential international companies see in the robust Indian entertainment and media sector. UTV and Disney are similar businesses and the acquisition will help Disney synergise its Indian operations. These are some of the bets international companies are making in the fast-growing Indian market."
India is the world's third-largest TV market trailing China and the US with nearly 138 million TV households, according to a March 2011 report by KPMG and industry lobby FICCI. The media and entertainment industry is likely to expand 14% annually until 2015, with segments such as TV, gaming and animation expected to outpace the industry growth, the report said.
The Burbank, California-based company, which owns 50.44% of UTV Software, said in a statement it would buy out public shareholders at a price not exceeding 1,000 per share, an 11% premium to Monday's stock closing price of Rs 901.8. The buyout will give Walt Disney control over five businesses.
UTV Software, a holding company, makes and distributes movies, broadcasts a clutch of movie and entertainment channels, produces content for television and other digital media, and also has a presence in gaming.
It operates through a number of subsidiaries, including movie production under UTV Motion Pictures, Indiagames, andUTV Global Broadcasting that broadcasts entertainment and movie channels. All these will become part of Walt Disney's Indian unit once the transaction is completed.
Following the news of the buyout, one of the biggest in India's media and entertainment industry, the company's stock closed at Rs 950.45, or 5.39% higher, on the Bombay Stock Exchange on Tuesday.
Disney said it would also buy the 20% stake held by promoter Rohinton (Ronnie) Screwvala and his associates if it garnered enough shares to delist the company. It, however, said delisting of a public company in India was a long process and could take several months to complete.
"Given the multiple stages and the nature of the process, a successful outcome is uncertain," it added.
The entertainment behemoth also said if the delisting went through, Screwvala would cease to be the chairman and managing director ofUTV Software Communications and become the managing director ofThe Walt Disney Company India, responsible for overseeing Indian businesses of theDisney Group.
Mahesh Samat, currently managing Disney's assets in India, will become chief operating officer, reporting to Screwvala. The statement did not say what would happen if the response to the open offer was insufficient to delist the company. Disney's statement merely said if the delisting was unsuccessful, it would "consider the full range of strategic options".
Farokh Balsara, partner & national leader, media & entertainment practice, at consultant Ernst & Young, said the deal illustrated the potential of the Indian movie and entertainment market. "It is an endorsement of the potential international companies see in the robust Indian entertainment and media sector. UTV and Disney are similar businesses and the acquisition will help Disney synergise its Indian operations. These are some of the bets international companies are making in the fast-growing Indian market."
India is the world's third-largest TV market trailing China and the US with nearly 138 million TV households, according to a March 2011 report by KPMG and industry lobby FICCI. The media and entertainment industry is likely to expand 14% annually until 2015, with segments such as TV, gaming and animation expected to outpace the industry growth, the report said.
July box-office record: Bollywood rakes in Rs 210 crore
MUMBAI: No July in Bollywood's box-office history has raked in as much profits as this month has. Peg it to the youthful appeal ofDelhi Belly andZindagi Na Mile Dobara or the bloody rage ofMurder 2 and Singham, but July 2011 brought business worth Rs 210 crore.
Suniel Wadhwa, independent distributor and box office analyst says, "After the box office hit record levels in June with Ready, Double Dhamaal, the good times continued to roll in July. At Rs 210 crore net box office collections, it was the highest-grossing July ever seen in the history of Bollywood, jumping over by 80% from July 2010." and recording an increase of 105% compared to an average six-monthly January-June 2011 monthly box office.
While Salman Khan's Ready contributed to about 40% of the box office collection in the first half of 2011, the collection of July is about 26% of the total of the first half of 2011. The adult certification to films didn't stop audiences from going to cinema halls for Aamir Khan's Delhi Belly and Mohit Suri's Murder 2. Buddhah Hoga Tera Baap was a treat for Amitabh Bachchan fans.
Both producers and exhibitors were worried about the performances of two films-Zindagi Na Milegi Dobara andHarry Potter which released after the 13/7 terror attack. The audiences surprised them all with Zindagi Na Milegi Dobara breaking the previous week release Murder 2's first weekend record and Harry Potter with nearly 80% opening on the first day.
Says Trade analyst Taran Adarsh, "Every film that released in July has broken the previous releases' weekend opening record, from Ready to Singham. This month has broken the myth about audience spending in the first half of the month but this month has been just the opposite. The weekend collection of this month has been nothing less than Rs 120 crore for all the six films and biggest surprise has been the weekday collection at times has beaten the weekend business which one considered to be the time of business of cinema.''
Prices of film tickets have gone up by at least 15% in the last one year but that did not stop the audiences from walking into cinema halls. both multiplexes and single screen cinemas
Theatres all over the country achieved their target even before the month ended. Vishal Anand, head of operations, Fun Cinemas, said, "Most multiplexes achieved their target in the first three weeks of the month and the business that came from the films in the last part was only surplus.
The tone for July was set on the first day of the month itself with Delhi Belly making the cash tills ring. It has been the highest month for cinema sales ever for us at Fun cinemas. The trend continued with Transformers, Bbuddah Hoga Tera Baap and then the biggies like ZNMD and Harry Potter," he said. It just blew everyones sales imagination with a good support by Delhi Belly in the 3rd week also.Singham supported the cinemas too. We expected sales to be stronger than June but this has surpassed our expectations. July has been more than 40 per cent than June, which had the highest sales record only to be broken after four weeks only.''
Suniel Wadhwa, independent distributor and box office analyst says, "After the box office hit record levels in June with Ready, Double Dhamaal, the good times continued to roll in July. At Rs 210 crore net box office collections, it was the highest-grossing July ever seen in the history of Bollywood, jumping over by 80% from July 2010." and recording an increase of 105% compared to an average six-monthly January-June 2011 monthly box office.
While Salman Khan's Ready contributed to about 40% of the box office collection in the first half of 2011, the collection of July is about 26% of the total of the first half of 2011. The adult certification to films didn't stop audiences from going to cinema halls for Aamir Khan's Delhi Belly and Mohit Suri's Murder 2. Buddhah Hoga Tera Baap was a treat for Amitabh Bachchan fans.
Both producers and exhibitors were worried about the performances of two films-Zindagi Na Milegi Dobara andHarry Potter which released after the 13/7 terror attack. The audiences surprised them all with Zindagi Na Milegi Dobara breaking the previous week release Murder 2's first weekend record and Harry Potter with nearly 80% opening on the first day.
Says Trade analyst Taran Adarsh, "Every film that released in July has broken the previous releases' weekend opening record, from Ready to Singham. This month has broken the myth about audience spending in the first half of the month but this month has been just the opposite. The weekend collection of this month has been nothing less than Rs 120 crore for all the six films and biggest surprise has been the weekday collection at times has beaten the weekend business which one considered to be the time of business of cinema.''
Prices of film tickets have gone up by at least 15% in the last one year but that did not stop the audiences from walking into cinema halls. both multiplexes and single screen cinemas
Theatres all over the country achieved their target even before the month ended. Vishal Anand, head of operations, Fun Cinemas, said, "Most multiplexes achieved their target in the first three weeks of the month and the business that came from the films in the last part was only surplus.
The tone for July was set on the first day of the month itself with Delhi Belly making the cash tills ring. It has been the highest month for cinema sales ever for us at Fun cinemas. The trend continued with Transformers, Bbuddah Hoga Tera Baap and then the biggies like ZNMD and Harry Potter," he said. It just blew everyones sales imagination with a good support by Delhi Belly in the 3rd week also.Singham supported the cinemas too. We expected sales to be stronger than June but this has surpassed our expectations. July has been more than 40 per cent than June, which had the highest sales record only to be broken after four weeks only.''
GVR Infra Projects raises Rs 150 crore from IDFC Private Equity
MUMBAI:GVR Infra Projects (GVR) on Friday said it has raised Rs 150 crore as private equity investment fromIDFC Private Equity (IDFC PE).
"While GVR is proud of its achievements in a short span of 11 years, we believe that the potential for growth is immense and there is still a lot more to be achieved. We are passionate about infrastructure and are extremely delighted to have an experienced investor likeIDFC PE as our partner," GVR Managing Director K Ganga Prasad said in a statement.
Chennai-based GVR has clocked Rs 1,000-crore revenue in FY11 and has an order book of Rs 4,200 crore.
"GVR has an excellent management team and their strong order book position, coupled with profitable growth over the years, is a testimony to their execution capabilities," IDFC PE Partner S G Shyam Sundar said.
"We are positive on the roads sector as we expect strong order inflows at the national and state level. We also believe that Railways and urban infrastructure sectors, where GVR has a presence, will open up in a big way in the coming years," Sundar said.
In its eight years of existence, this is only the third investment by IDFC PE in the roads sector.
Previously IDFC PE invested in L&T Infrastructure Developers and Ashoka Buildcon.
"While GVR is proud of its achievements in a short span of 11 years, we believe that the potential for growth is immense and there is still a lot more to be achieved. We are passionate about infrastructure and are extremely delighted to have an experienced investor likeIDFC PE as our partner," GVR Managing Director K Ganga Prasad said in a statement.
Chennai-based GVR has clocked Rs 1,000-crore revenue in FY11 and has an order book of Rs 4,200 crore.
"GVR has an excellent management team and their strong order book position, coupled with profitable growth over the years, is a testimony to their execution capabilities," IDFC PE Partner S G Shyam Sundar said.
"We are positive on the roads sector as we expect strong order inflows at the national and state level. We also believe that Railways and urban infrastructure sectors, where GVR has a presence, will open up in a big way in the coming years," Sundar said.
In its eight years of existence, this is only the third investment by IDFC PE in the roads sector.
Previously IDFC PE invested in L&T Infrastructure Developers and Ashoka Buildcon.
PFC Consulting to form JV targeting Asian countries
NEW DELHI: PFC Consulting, a subsidiary ofPower Finance Corporation, today said it may form a joint venture with another firm to provide consultancy services in Asian countries.
"PFC Consulting will join hands with another consultant to foray into Asian countries after which it (PFC Consulting) may get listed," PFC Chairman and Managing Director Satnam Singh said.
However, Singh clarified that the exercise of looking for a JV partner has not begun yet.
At present,PFC Consulting is engaged in providing consultancy services in India's power sector.
"PFC Consulting will join hands with another consultant to foray into Asian countries after which it (PFC Consulting) may get listed," PFC Chairman and Managing Director Satnam Singh said.
However, Singh clarified that the exercise of looking for a JV partner has not begun yet.
At present,PFC Consulting is engaged in providing consultancy services in India's power sector.
Small agencies like Taproot, Creativeland, Scarecrow winning big brands such as Airtel, Audi, Nestle & Pepsi
MUMBAI: While pitching for business from a prominent marketer, Agnello Dias, the founder of independent advertising agencyTaproot India, had his audience's attention even before a single slide hit the screen. He walked in for the presentation alone, armed with no more than a pen drive and a satchel. The marketer was unused to such minimalism.
Dias had just been preceded by a large agency with an impressive global pedigree and a small army of staff. Yet, the relatively tiny size and lack of international affiliations did not get in the way of Taproot bagging marquee businesses. The agency's portfolio includesPepsiCo and Airtel. And it is by no means the only creative independent shop to win highly prized accounts.
Shortly afterCreativeland Asia completed a project on Audi A8, it was given the marketing communication portfolio on the entire brand. AndScarecrow, floated by Raghu Bhat and Manish Bhatt barely a year ago, already boasts of an assignment withNestle for a new-to-market product.
More than ever before, marketers chasing big game-changing ideas are giving a chance to independent agencies.
"After working with an international network agency over three years, we thought we need to bring some new creative ideas and some freshness to the marketing communication," says Clemens Ollmert, head of marketing atAudi India. He finds "a really nice mix of craziness (unconventional creativity) and realism (grounded strategic thinking)" in Creativeland Asia.
Not long ago, independent advertising firms helmed by creative people used to be regarded as boutiques, with portfolios full of ads for either small or very local brands. Lack of serious strategic muscle and a vast network of offices and staff would often keep big business away. All of that has changed over the last five years or so.
"Agencies like Taproot bring in unique advantages in terms of freshness of perspective and the ability to triangulate cultural insights with consumer and brand truths to create big fearless game changing communication ideas," says Deepika Warrier, PepsiCo's marketing director-beverages.
She, however, admits that there is a definite role for scale companies like JWT, especially at a time when "marketing teams churn more than agencies". Typically, large marketers begin working with the independents via a single project, which acts as a foot in the door, leading to a more long-term association.
In the case of Taproot, it was a very prestigious assignment: conceiving of the ICC Cricket World Cup campaign 'Change The Game' for Pepsi. Shortly afterward, Taproot made it to PepsiCo's roster of agencies
Dias had just been preceded by a large agency with an impressive global pedigree and a small army of staff. Yet, the relatively tiny size and lack of international affiliations did not get in the way of Taproot bagging marquee businesses. The agency's portfolio includesPepsiCo and Airtel. And it is by no means the only creative independent shop to win highly prized accounts.
Shortly afterCreativeland Asia completed a project on Audi A8, it was given the marketing communication portfolio on the entire brand. AndScarecrow, floated by Raghu Bhat and Manish Bhatt barely a year ago, already boasts of an assignment withNestle for a new-to-market product.
More than ever before, marketers chasing big game-changing ideas are giving a chance to independent agencies.
"After working with an international network agency over three years, we thought we need to bring some new creative ideas and some freshness to the marketing communication," says Clemens Ollmert, head of marketing atAudi India. He finds "a really nice mix of craziness (unconventional creativity) and realism (grounded strategic thinking)" in Creativeland Asia.
Not long ago, independent advertising firms helmed by creative people used to be regarded as boutiques, with portfolios full of ads for either small or very local brands. Lack of serious strategic muscle and a vast network of offices and staff would often keep big business away. All of that has changed over the last five years or so.
"Agencies like Taproot bring in unique advantages in terms of freshness of perspective and the ability to triangulate cultural insights with consumer and brand truths to create big fearless game changing communication ideas," says Deepika Warrier, PepsiCo's marketing director-beverages.
She, however, admits that there is a definite role for scale companies like JWT, especially at a time when "marketing teams churn more than agencies". Typically, large marketers begin working with the independents via a single project, which acts as a foot in the door, leading to a more long-term association.
In the case of Taproot, it was a very prestigious assignment: conceiving of the ICC Cricket World Cup campaign 'Change The Game' for Pepsi. Shortly afterward, Taproot made it to PepsiCo's roster of agencies
Youth-centric brands such as KFC, Kurkure, Philips, HUL's Axe integrate TV ads with Facebook apps to drive sales
NEW DELHI: Youth-centric brands such as KFC, PepsiCo's Kurkure,Philips and HUL's Axe have extended their catchy television commercials into whackyFacebook apps to drive traffic in the virtual world and sales in the real world.
If the Philips app lets users try out all the different looks that John Abraham sports in its television campaign for male grooming products on themselves, Kurkure challenges people to find the right mix for its different variants by trying different ingredients, extending its 'Ingredients of India' television campaign. Thousands have signed up for these apps.
"With apps running on a parallel with TV commercials, the recall value for the brand improves drastically as consumers are directly interacting with the product," says ad filmmaker Prahlad Kakkar. And brands say this media integration strategy has helped increase product recalls and boost sales.
Dhruv Kaul, director, marketing, at fast-food chain KFC, says, "Though it is difficult to measure sales through such apps, it has helped drive further engagement with our target group which is young adults and teenagers."
In the latestKFC Krushers Kafeccino television commercial, a group of youngsters click the expressions of their friend as soon as she tastes the drink for the first time. Now, Kafeccino's Facebook 'Kool Hours' app allows people to upload their photos and earn points for every picture and caption. As many as 2,500 users uploaded their photographs in seven days.
Around 47% of Indian Facebook users are in the 18-24 age group, according to Socialbakers, a company tracking social media statistics.
This makes the social networking site a prime destination for all youth-centric marketers. "A relevant app helps generate buzz about the product and becomes a popular topic of discussion in one's peer group. The target group feels that they are 'with it'," says marketing expert Harish Bijoor, CEO of Harish Bijoor Consults Inc. "In that sense, it connects with their mindset easily," he adds.
Philips would second that. The number of 'likes' on its Facebook page increased over 37,600 in a month since it introduced an app that allows men to try out the different beard styles as shown in its John Abraham-starrer TV ad for men's grooming kit.
PepsiCo's Facebook app for its Kurkure snack-based on its 'Ingredients of India' TV campaign with catch phrase 'badal jaa'-also has created a lot of interest with some 20,000 users trying it.
If the Philips app lets users try out all the different looks that John Abraham sports in its television campaign for male grooming products on themselves, Kurkure challenges people to find the right mix for its different variants by trying different ingredients, extending its 'Ingredients of India' television campaign. Thousands have signed up for these apps.
"With apps running on a parallel with TV commercials, the recall value for the brand improves drastically as consumers are directly interacting with the product," says ad filmmaker Prahlad Kakkar. And brands say this media integration strategy has helped increase product recalls and boost sales.
Dhruv Kaul, director, marketing, at fast-food chain KFC, says, "Though it is difficult to measure sales through such apps, it has helped drive further engagement with our target group which is young adults and teenagers."
In the latestKFC Krushers Kafeccino television commercial, a group of youngsters click the expressions of their friend as soon as she tastes the drink for the first time. Now, Kafeccino's Facebook 'Kool Hours' app allows people to upload their photos and earn points for every picture and caption. As many as 2,500 users uploaded their photographs in seven days.
Around 47% of Indian Facebook users are in the 18-24 age group, according to Socialbakers, a company tracking social media statistics.
This makes the social networking site a prime destination for all youth-centric marketers. "A relevant app helps generate buzz about the product and becomes a popular topic of discussion in one's peer group. The target group feels that they are 'with it'," says marketing expert Harish Bijoor, CEO of Harish Bijoor Consults Inc. "In that sense, it connects with their mindset easily," he adds.
Philips would second that. The number of 'likes' on its Facebook page increased over 37,600 in a month since it introduced an app that allows men to try out the different beard styles as shown in its John Abraham-starrer TV ad for men's grooming kit.
PepsiCo's Facebook app for its Kurkure snack-based on its 'Ingredients of India' TV campaign with catch phrase 'badal jaa'-also has created a lot of interest with some 20,000 users trying it.
Pharma companies may get tax sops for clinical trials, patent filings
NEW DELHI: TheDepartment of Pharmaceuticals is planning to recommend extension of tax benefits given to drugmakers for in-house R&D and research work done outside the firm such asclinical trials, bio-equivalence studies, regulatory approvals and patent filings which could benefit most Indian drug companies.
Expenses incurred ondrug development process outside the firm should be eligible for tax exemption, if done through firms exclusively engaged in R&D and approved by specified authority, a draft proposal of the sub-working group (SWG) on regulatory issues for pharma sector for 12th Five-Year Plan said.
At present, the government gives weighted average tax deduction of 200% for in-house R&D investments and up to 175% if done with few R&D partners recognised by government. Pharma requires big investments to develop new medicines and most local drugmakers spend about 5-10% of their revenues on R&D.
Rajesh Jain, managing director at Delhi-basedPanacea Biotec said two-third of drugmakers' drug development expenses are done outside the company such as pre-clinical studies and clinical trials. Hence, the new proposal will cover bulk of their R&D investments. "It will boost moral and investment by local firms," Jain said.
SWG has sought the industry's views to finalise its proposal and sent to Working Group (WG) of the Department of Pharmaceuticals. If the WG endorses the proposal, it will be sent to Planning Commission to be part of the Five-Year Plan beginning 2012.
Among other tax exemption proposals to incentivise pharma sector for investment in R&D, SWG has also recommended extending the weighted tax deduction benefit by another 10 years to 2022.
It has also proposed a modification in minimum alternate tax (MAT) structure. With imposition of MAT of 20%, companies are unable to avail full benefit of tax deduction. Though the law provides for carryover and set off, investments in R&D is ongoing and growing, limiting firms from enjoying weighted deduction to R&D, it said.
"Alternatively, the amount spent for R&D should be treated as investment tax credit and allowed to be set off against tax and/or MAT payable," it said.
Expenses incurred ondrug development process outside the firm should be eligible for tax exemption, if done through firms exclusively engaged in R&D and approved by specified authority, a draft proposal of the sub-working group (SWG) on regulatory issues for pharma sector for 12th Five-Year Plan said.
At present, the government gives weighted average tax deduction of 200% for in-house R&D investments and up to 175% if done with few R&D partners recognised by government. Pharma requires big investments to develop new medicines and most local drugmakers spend about 5-10% of their revenues on R&D.
Rajesh Jain, managing director at Delhi-basedPanacea Biotec said two-third of drugmakers' drug development expenses are done outside the company such as pre-clinical studies and clinical trials. Hence, the new proposal will cover bulk of their R&D investments. "It will boost moral and investment by local firms," Jain said.
SWG has sought the industry's views to finalise its proposal and sent to Working Group (WG) of the Department of Pharmaceuticals. If the WG endorses the proposal, it will be sent to Planning Commission to be part of the Five-Year Plan beginning 2012.
Among other tax exemption proposals to incentivise pharma sector for investment in R&D, SWG has also recommended extending the weighted tax deduction benefit by another 10 years to 2022.
It has also proposed a modification in minimum alternate tax (MAT) structure. With imposition of MAT of 20%, companies are unable to avail full benefit of tax deduction. Though the law provides for carryover and set off, investments in R&D is ongoing and growing, limiting firms from enjoying weighted deduction to R&D, it said.
"Alternatively, the amount spent for R&D should be treated as investment tax credit and allowed to be set off against tax and/or MAT payable," it said.
Jindal Saw to invest $600 mn in 2 years, buy stakes in global firms
NEW DELHI:Pipe maker Jindal Saw on Tuesday said it will invest USD 600 million over the next two years to expand its capacity and buy stakes in firms based in the Middle East, the US and the European Union.
"We will invest USD 600 million over the next two years for capacity expansion. This will also include acquisition of stakes in overseas firms," company Managing Director Sminu Jindal told reporters on the sidelines of an Assocham event here.
Jindal said the company has already initiated talks with firms for buying stakes and signing of the deals may happen within a year.
"We will be interested in buying stakes in firms which produce ductile iron and seamless pipes. We have got enough capacity for large-dia pipe makings in India," she said.
Jindal said Jindal Saw would like to buy minority, but added that it might look at outright acquisition of firms, going forward.
Jindal, however, declined to give further details of the likely stake buying, but insisted that the overall investment of USD 600 million in the next two years would form a part of the proposed outlay in acquisition of stakes in firms abroad.
"USD 600 million will be the total investment. We are yet to finalise how much would go where," she said, adding that the company might raise some debt to fund the proposed fund infusion, but a majority would come from internal accruals.
Jindal Saw, which has seven manufacturing facilities in India, had clocked Rs 4,171 crore revenue last fiscal and it hopes the topline to remain "very much same as in the last fiscal" this fiscal. Around 60 per cent of its revenue comes from exports.
"We will invest USD 600 million over the next two years for capacity expansion. This will also include acquisition of stakes in overseas firms," company Managing Director Sminu Jindal told reporters on the sidelines of an Assocham event here.
Jindal said the company has already initiated talks with firms for buying stakes and signing of the deals may happen within a year.
"We will be interested in buying stakes in firms which produce ductile iron and seamless pipes. We have got enough capacity for large-dia pipe makings in India," she said.
Jindal said Jindal Saw would like to buy minority, but added that it might look at outright acquisition of firms, going forward.
Jindal, however, declined to give further details of the likely stake buying, but insisted that the overall investment of USD 600 million in the next two years would form a part of the proposed outlay in acquisition of stakes in firms abroad.
"USD 600 million will be the total investment. We are yet to finalise how much would go where," she said, adding that the company might raise some debt to fund the proposed fund infusion, but a majority would come from internal accruals.
Jindal Saw, which has seven manufacturing facilities in India, had clocked Rs 4,171 crore revenue last fiscal and it hopes the topline to remain "very much same as in the last fiscal" this fiscal. Around 60 per cent of its revenue comes from exports.
Flex eyes Rs 1,000-cr rev from non-plastic packaging prod biz
MUMBAI:Packaging major Uflex, which started manufacturing non-plastic-based alternative innovative packaging solutions to plastic pouches, is eyeing a Rs 1,000-crore revenue from this new product by end-this fiscal.
"We expect an around Rs 1,000-crore revenue from this new product by FY 12 and expect it to increase over the years,"Uflex Group President (Finance and Accounts), R K Jain, told PTI here.
The company has already started manufacturing the eco-friendly product and plans to manufacture around 36,000- tonnes per annum to cater to the market demand.
"We plan to manufacture around 36,000-tonnes per annum to garner an around Rs 1,000-crore revenue by end-this fiscal," he said.
The Supreme Court's landmark decision to ban the use of plastic in sachets for storing or selling tobacco, gutka and pan masala came into effect pan-India from March 1 this year.
The packaging major is also eyeing a Rs 4,800-crore revenue from its entire business in FY 12, as against Rs 3,500-crore revenue in FY 11.
"We are expecting an around Rs 4,800-crore revenue by end this fiscal," he said. On top of this, the company is eyeing a Rs 1,000-crore from its non-plastic-based innovative packaging product.
"We expect an around Rs 1,000-crore revenue from this new product by FY 12 and expect it to increase over the years,"Uflex Group President (Finance and Accounts), R K Jain, told PTI here.
The company has already started manufacturing the eco-friendly product and plans to manufacture around 36,000- tonnes per annum to cater to the market demand.
"We plan to manufacture around 36,000-tonnes per annum to garner an around Rs 1,000-crore revenue by end-this fiscal," he said.
The Supreme Court's landmark decision to ban the use of plastic in sachets for storing or selling tobacco, gutka and pan masala came into effect pan-India from March 1 this year.
The packaging major is also eyeing a Rs 4,800-crore revenue from its entire business in FY 12, as against Rs 3,500-crore revenue in FY 11.
"We are expecting an around Rs 4,800-crore revenue by end this fiscal," he said. On top of this, the company is eyeing a Rs 1,000-crore from its non-plastic-based innovative packaging product.
Fineotex incorporates wholly-owned subsidiary in Malaysia
MUMBAI: Chemical makerFineotex Chemicals on Thursday said it has incorporated a wholly-owned subsidiary inMalaysia to carry on its business in that region.
The company is also in advance stages of negotiations with foreign parties for investing in business in and around Malaysia.
"The company has incorporated a wholly-owned subsidiary in Malaysia to carry on the business in that region. It is in advance stages of negotiations with foreign parties for investing in business in and around Malaysia," it said in a filing to the Bombay Stock Exchange (BSE).
Fineotex manufactures speciality chemicals among others for textile, garment, construction, leather, water treatment, paint industries.
It currently has its manufacturing facilities in Navi Mumbai.
Shares of the company today closed at Rs 283.15, down by 3.25 per cent from previous close on theBSE
The company is also in advance stages of negotiations with foreign parties for investing in business in and around Malaysia.
"The company has incorporated a wholly-owned subsidiary in Malaysia to carry on the business in that region. It is in advance stages of negotiations with foreign parties for investing in business in and around Malaysia," it said in a filing to the Bombay Stock Exchange (BSE).
Fineotex manufactures speciality chemicals among others for textile, garment, construction, leather, water treatment, paint industries.
It currently has its manufacturing facilities in Navi Mumbai.
Shares of the company today closed at Rs 283.15, down by 3.25 per cent from previous close on theBSE
Madras Cement in talks to sell Bengal unit
MUMBAI/CHENNAI: Madras Cements, the flagship enterprise of Chennai-based Ramco Group, is holding talks with European giantsLafarge andHolcim to divest itscement grinding unit in West Bengal for roughly Rs 350 crore, said sources briefed on the matter.
PE giant KKR-backed Dalmia Cements had evinced early interest but has dropped out of the deal-making now.
"We have been approached by a number of cement manufacturers to sell the grinding unit. At present we are only exploring the offers made by these people. No decision has been taken as yet,"Ramco Group vice-chairmanP R Venketrama Raja told TOI. A Lafarge spokesperson declined to comment, while Holcim could not be reached for response.
The Rs 2,636-croreMadras Cements moves clinker (an intermediary product in cement manufacturing) from its existing cement plant at Jayanthipuram in Andhra Pradesh in bulk and grinds it with gypsum and bags them as cement to sell in the eastern markets. The unit located at Kolaghat in Purba Medinipur district in West Bengal was set up to feed cement from the surplus southern to eastern region.
Since clinker can be moved in bulk, logistics costs can be brought down as bagged cement transportation is more expensive than clinker transportation.
Madras Cements has capacity in excess of 10 million tonne per annum after doubling the production facility at Ariyalur plant in Tamil Nadu. The country's major cement manufacturers have been ramping up capacity in the southern states, especially Tamil Nadu, prompting players like Madras Cements to protect their turf.
On Monday, Madras Cements dropped 0.54% in to close at Rs 82 on the BSE.
PE giant KKR-backed Dalmia Cements had evinced early interest but has dropped out of the deal-making now.
"We have been approached by a number of cement manufacturers to sell the grinding unit. At present we are only exploring the offers made by these people. No decision has been taken as yet,"Ramco Group vice-chairmanP R Venketrama Raja told TOI. A Lafarge spokesperson declined to comment, while Holcim could not be reached for response.
The Rs 2,636-croreMadras Cements moves clinker (an intermediary product in cement manufacturing) from its existing cement plant at Jayanthipuram in Andhra Pradesh in bulk and grinds it with gypsum and bags them as cement to sell in the eastern markets. The unit located at Kolaghat in Purba Medinipur district in West Bengal was set up to feed cement from the surplus southern to eastern region.
Since clinker can be moved in bulk, logistics costs can be brought down as bagged cement transportation is more expensive than clinker transportation.
Madras Cements has capacity in excess of 10 million tonne per annum after doubling the production facility at Ariyalur plant in Tamil Nadu. The country's major cement manufacturers have been ramping up capacity in the southern states, especially Tamil Nadu, prompting players like Madras Cements to protect their turf.
On Monday, Madras Cements dropped 0.54% in to close at Rs 82 on the BSE.
C&S Electric eyes Rs 240 crore revenue from EPC business
NEW DELHI:Electrical and electronic equipment supplierC&S Electric Ltd aims to earn Rs 240 crore revenue from engineering, procurement and construction (EPC) business in the next one year.
The company is hopeful of bagging EPC contracts for the solar power projects under the government's ambitious Jawaharlal Nehru National Solar Mission programme, bids for which would be invited next month.
"About 300 MW capacity solar projects would be in the offing under the Jawaharlal Nehru National Solar Mission, of which we would like to capture 20 MW capacity projects," Rohit Dhar, Senior Vice President, Strategy & Business Development, C&S Electric Limited said.
"Whether it would be a 20 MW solar plant or 20 power projects of 1 MW each etc...that would be decided at the time of invitation of bids," Dhar added.
On an average the cost of generating 1MW solar power is Rs 15 crore and since EPC contributes about 80 per cent of the total value of the project, the company may be able to generate a business of approximately Rs 240 crore through these projects.
The company is currently executing a 1MW solar photo-voltaic plant at Bhiwadi in Haryana.
The company is hopeful of bagging EPC contracts for the solar power projects under the government's ambitious Jawaharlal Nehru National Solar Mission programme, bids for which would be invited next month.
"About 300 MW capacity solar projects would be in the offing under the Jawaharlal Nehru National Solar Mission, of which we would like to capture 20 MW capacity projects," Rohit Dhar, Senior Vice President, Strategy & Business Development, C&S Electric Limited said.
"Whether it would be a 20 MW solar plant or 20 power projects of 1 MW each etc...that would be decided at the time of invitation of bids," Dhar added.
On an average the cost of generating 1MW solar power is Rs 15 crore and since EPC contributes about 80 per cent of the total value of the project, the company may be able to generate a business of approximately Rs 240 crore through these projects.
The company is currently executing a 1MW solar photo-voltaic plant at Bhiwadi in Haryana.
Areva T&D India to supply equipment for PowerGrid Corporation's national test sub-station at Bina
NEW DELHI: Areva T&D India, which is now a part ofAlstom Grid, on Monday said it has signed an agreement with state-run transmission utilityPowerGrid Corporation for supply of equipment to set up a national test sub-station at Bina, in Madhya Pradesh.
As per a Memorandum of Understanding (MoU),Areva T&D India will provide equipment to PowerGrid Corp for the Bina sub-station, an official statement said.
The equipment will be developed, manufactured and tested at Areva T&D India's factories at Hosur and Padappai, in Tamil Nadu.
"We are delighted to partner with PowerGrid for setting up the national test sub-station," Areva T&D India Managing Director Rathin Basu said.
As per a Memorandum of Understanding (MoU),Areva T&D India will provide equipment to PowerGrid Corp for the Bina sub-station, an official statement said.
The equipment will be developed, manufactured and tested at Areva T&D India's factories at Hosur and Padappai, in Tamil Nadu.
"We are delighted to partner with PowerGrid for setting up the national test sub-station," Areva T&D India Managing Director Rathin Basu said.
Marg Ltd bags Rs 250 cr order from Guj-based BECL
AHMEDABAD: Chennai-based MARG Limited, has won a work order valued at Rs 237.85 Crore fromBhavnagar Energy Company Limited (BECL) in Gujarat. The scope of engineering, procurement and construction (EPC) work includes laying five kilometre long submarine pipeline in the roughest sea of Gulf of Khambhat, installing critical marine and civil structures, pumping stations, pipelines, substations and transmission lines.
The work order includes a sea water intake, outfall and circulating water system for the 2 X 250 MW Lignite Based Thermal Power Plant at Padva in Bhavnagar district.
"We are glad to have bagged this prestigious order from BECL. We are consolidating our presence in the EPC sector through strategic International alliances .Our pursuit of 'technological innovation' to deliver world class infrastructure is being partnered by knowledge initiatives of our collaborators. MARG's domain expertise in port, marine infrastructure, industrial EPC and other infrastructure projects will add value for the successful completion and on-time delivery of this project," stated GRK Reddy, chairman and managing director, MARG Group,a BSE listed company in a release issued here.
Bhavnagar Energy Company Limited (BECL) is promoted by state PSUs viz. Gujarat Power Corporation Limited (GPCL),Gujarat State Investments Limited (GSIL), Gujarat Mineral Development Corporation Limited (GMDC),Gujarat Industries Power Company Limited (GIPCL), Gujarat Alkalies and Chemicals Limited (GACL), Gujarat Narmada Valley Fertilisers Company Limited (GNFC) and Gujarat State Fertilisers & Chemicals Limited (GSFC).
The company's EPC division provides integrated turnkey solutions and its range of services include integrated design, engineering, material procurement, field services and construction & project management services for infrastructure sector and real estate projects.
The work order includes a sea water intake, outfall and circulating water system for the 2 X 250 MW Lignite Based Thermal Power Plant at Padva in Bhavnagar district.
"We are glad to have bagged this prestigious order from BECL. We are consolidating our presence in the EPC sector through strategic International alliances .Our pursuit of 'technological innovation' to deliver world class infrastructure is being partnered by knowledge initiatives of our collaborators. MARG's domain expertise in port, marine infrastructure, industrial EPC and other infrastructure projects will add value for the successful completion and on-time delivery of this project," stated GRK Reddy, chairman and managing director, MARG Group,a BSE listed company in a release issued here.
Bhavnagar Energy Company Limited (BECL) is promoted by state PSUs viz. Gujarat Power Corporation Limited (GPCL),Gujarat State Investments Limited (GSIL), Gujarat Mineral Development Corporation Limited (GMDC),Gujarat Industries Power Company Limited (GIPCL), Gujarat Alkalies and Chemicals Limited (GACL), Gujarat Narmada Valley Fertilisers Company Limited (GNFC) and Gujarat State Fertilisers & Chemicals Limited (GSFC).
The company's EPC division provides integrated turnkey solutions and its range of services include integrated design, engineering, material procurement, field services and construction & project management services for infrastructure sector and real estate projects.
India to be 2nd largest steel producer by 2013: Steel Minister
NEW DELHI:Steel MinisterBeni Prasad Verma today exuded confidence that India will become the world's second largest producer of the alloy by 2013, with an installed annual production capacity of 120 MT.
"Currently, India has the fourth largest steel sector in the world, both in terms of capacity and production. By 2013, India will be the second largest steel producer in the world. It is estimated that India will have a production capacity of 120 MT," Verma said at an Assocham event here.
India's production capacity currently stands at around 80 MT and the minister said the capacity was expected to rise to over 150 MT by 2020. The steel-making capacity of the country was just 51 MT in 2006.
Meanwhile, Steel SecretaryP K Mishra said by the end of the current financial year, the steel manufacturing capacity of the country might reach around 90 MT.
"This is likely to cross 110 MT by next financial year when the brownfield capacity addition projects of SAIL,JSW Steel andTata Steel get commissioned," Mishra said.
The secretary said that growth in steel demand averaged 10 per cent over the last seven years and there was a likelihood that the trend would continue at least for the next decade.
"There are expectations that steel demand in the country may exceed 10 per cent at times, during the next 10-15 years horizon. In such a scenario, our steel production capacity should reach 150 MT by 2018," he said.
Mishra hoped that the country would be able to meet steel demand through domestic production at least for the next five years.
"Currently, India has the fourth largest steel sector in the world, both in terms of capacity and production. By 2013, India will be the second largest steel producer in the world. It is estimated that India will have a production capacity of 120 MT," Verma said at an Assocham event here.
India's production capacity currently stands at around 80 MT and the minister said the capacity was expected to rise to over 150 MT by 2020. The steel-making capacity of the country was just 51 MT in 2006.
Meanwhile, Steel SecretaryP K Mishra said by the end of the current financial year, the steel manufacturing capacity of the country might reach around 90 MT.
"This is likely to cross 110 MT by next financial year when the brownfield capacity addition projects of SAIL,JSW Steel andTata Steel get commissioned," Mishra said.
The secretary said that growth in steel demand averaged 10 per cent over the last seven years and there was a likelihood that the trend would continue at least for the next decade.
"There are expectations that steel demand in the country may exceed 10 per cent at times, during the next 10-15 years horizon. In such a scenario, our steel production capacity should reach 150 MT by 2018," he said.
Mishra hoped that the country would be able to meet steel demand through domestic production at least for the next five years.
Four construction PSUs likely to be merged
NEW DELHI: Four major construction PSUs, of which two are sick, may be merged to achieve greater synergy between companies like NBCC and HSCL.
The companies which are being considered for merger are National Buildings Construction Corporation (NBCC),Hindustan Prefab Ltd (HPL),National Project Construction Corporation Ltd (NPCC) and Hindustan Steelworks Construction Ltd (HSCL).
The Board for Reconstruction of Public Sector Enterprises (BRPSE) has constituted a task force to examine different options, which may include project-based consortium for business bids, sources said.
However, there is an opposition to the proposal in two of the cases-NPCC and HPL, they said.
Two sick units--NPCC and HSCL--have been put on the revival package.
NBCC and HPL have positive balance sheets with net worth of Rs 637 crore and Rs 10.09 crore, respectively.
NBCC, which achieved a profit of Rs 118 crore on a turnover of Rs 3,115 crore in 2010-11, would like to go in for a joint venture route with other PSUs like HPL and HSCL, instead of outright merger.
The proposal for merger was discussed at the meeting of theBRPSE in June where the reconstruction board felt that "all these companies in one way or other are engaged in construction activities and possess synergies.
A combined entity by way of merger may create a giant company and are capable of becoming a navratna firm".
However, in case of NPCC, the administrative ministry of water resources said though the proposal of merger is to be examined, it would not like it as the ministry wanted the NPCC to regain the original stature in civil construction.
Also, it would lead to personnel adjustment problems, sources said.
Besides, HPL informed the board about its plan to start prefab steel and concrete through a joint venture withSAIL. Therefore, it showed unwillingness for merger, they added.
During 2009-10, NPCC net worth stood negative at Rs 118.75 crore as on March 31, 2010 due to accumulated losses of Rs 795.48 crore. It registered a profit of Rs 31.29 crore on the turnover of Rs 1,003 crore in 2009-10.
HPL turnover was Rs 162.42 crore and profit after tax stood at Rs 2.47 crore, while HSCL turnover was Rs 800 crore and net loss was Rs 59.5 crore, in 2009-10.
The companies which are being considered for merger are National Buildings Construction Corporation (NBCC),Hindustan Prefab Ltd (HPL),National Project Construction Corporation Ltd (NPCC) and Hindustan Steelworks Construction Ltd (HSCL).
The Board for Reconstruction of Public Sector Enterprises (BRPSE) has constituted a task force to examine different options, which may include project-based consortium for business bids, sources said.
However, there is an opposition to the proposal in two of the cases-NPCC and HPL, they said.
Two sick units--NPCC and HSCL--have been put on the revival package.
NBCC and HPL have positive balance sheets with net worth of Rs 637 crore and Rs 10.09 crore, respectively.
NBCC, which achieved a profit of Rs 118 crore on a turnover of Rs 3,115 crore in 2010-11, would like to go in for a joint venture route with other PSUs like HPL and HSCL, instead of outright merger.
The proposal for merger was discussed at the meeting of theBRPSE in June where the reconstruction board felt that "all these companies in one way or other are engaged in construction activities and possess synergies.
A combined entity by way of merger may create a giant company and are capable of becoming a navratna firm".
However, in case of NPCC, the administrative ministry of water resources said though the proposal of merger is to be examined, it would not like it as the ministry wanted the NPCC to regain the original stature in civil construction.
Also, it would lead to personnel adjustment problems, sources said.
Besides, HPL informed the board about its plan to start prefab steel and concrete through a joint venture withSAIL. Therefore, it showed unwillingness for merger, they added.
During 2009-10, NPCC net worth stood negative at Rs 118.75 crore as on March 31, 2010 due to accumulated losses of Rs 795.48 crore. It registered a profit of Rs 31.29 crore on the turnover of Rs 1,003 crore in 2009-10.
HPL turnover was Rs 162.42 crore and profit after tax stood at Rs 2.47 crore, while HSCL turnover was Rs 800 crore and net loss was Rs 59.5 crore, in 2009-10.
NTPC may start work in Bangladesh within 6 months
NEW DELHI: State-runNTPC on Tuesday said it could start work at its proposed 1,320 MW thermal project inBangladesh in the next six months.
"We might start work on the project inKhulna (Bangladesh) in the next 6 months," CMD NTPC Arup Roy Chodhury told reporters here.
The project entails an investment of about Rs 8,OOO crore.
"We might start work on the project inKhulna (Bangladesh) in the next 6 months," CMD NTPC Arup Roy Chodhury told reporters here.
The project entails an investment of about Rs 8,OOO crore.
CAG says in process of finalising report on KG-D6 gas fields
NEW DELHI: Government auditorCAG today said it is in the process of finalising its report on Reliance Industries'sKG-D6 gas fields. Refuting allegation by theReliance Industries that it was not given enough time to respond to the audit observations, Comptroller and Auditor General of India Vinod Rai said, "We have given Reliance enough time to respond... it (the CAG report) is in the process of being final".
Rai was responding to a query on Reliance Industries' statement that the time CAG allocated to the company was "far too inadequate" to answer issues raised in the audit.
On July 12, CAG held the Exit Conference with private firms and the oil ministry prior to finalising its audit report on Reliance's KG-D6 gas field, Cairn's Rajasthan oil block and BG's Panna-Mukta and Tapti oil and gas fields.
The conference was held as a prelude to finalising its report on KG-D6 fields and taking comments from the companies on its June 7 draft report.
CAG has stated that the oil ministry and its technical arm DGH favoured private firms like Reliance andCairn India by allowing them to retain entire exploration acreage, turning a blind eye to increase in capital expenditure and giving additional area in violation of Production Sharing Contract (PSC).
In the draft report, the CAG said rules were bent, enabling Reliance to retain the entire 7,645-square kilometre KG-D6 block in the Krishna-Godavari Basin, off the East Coast.
Also, the development plan Reliance submitted for Dhirubhai-1 and 3, two of the 18 gas discoveries in the KG-D6 block, was not in compliance with the PSC and the ministry and the DGH turned a blind eye to the company raising capital expenditure without having begun work on the previous plan.
Reliance had in May, 2004, proposed an investment of $ 2.4 billion for producing 40 million standard cubic metres per day of gas from the D1 and D3 fields.
Later, in October, 2006, it moved an addendum to this saying $ 5.2 billion would be required in Phase-1 to produce 80 mmscmd of gas and another $ 3.3 billion to sustain the peak output for a longer duration.
Rai was responding to a query on Reliance Industries' statement that the time CAG allocated to the company was "far too inadequate" to answer issues raised in the audit.
On July 12, CAG held the Exit Conference with private firms and the oil ministry prior to finalising its audit report on Reliance's KG-D6 gas field, Cairn's Rajasthan oil block and BG's Panna-Mukta and Tapti oil and gas fields.
The conference was held as a prelude to finalising its report on KG-D6 fields and taking comments from the companies on its June 7 draft report.
CAG has stated that the oil ministry and its technical arm DGH favoured private firms like Reliance andCairn India by allowing them to retain entire exploration acreage, turning a blind eye to increase in capital expenditure and giving additional area in violation of Production Sharing Contract (PSC).
In the draft report, the CAG said rules were bent, enabling Reliance to retain the entire 7,645-square kilometre KG-D6 block in the Krishna-Godavari Basin, off the East Coast.
Also, the development plan Reliance submitted for Dhirubhai-1 and 3, two of the 18 gas discoveries in the KG-D6 block, was not in compliance with the PSC and the ministry and the DGH turned a blind eye to the company raising capital expenditure without having begun work on the previous plan.
Reliance had in May, 2004, proposed an investment of $ 2.4 billion for producing 40 million standard cubic metres per day of gas from the D1 and D3 fields.
Later, in October, 2006, it moved an addendum to this saying $ 5.2 billion would be required in Phase-1 to produce 80 mmscmd of gas and another $ 3.3 billion to sustain the peak output for a longer duration.
MRPL says confident about resolving Iran oil payment impasse
NEW DELHI: State-runMangalore Refinery and Petrochemicals Ltd said on Tuesday it was confident about resolvingoil payment issue with Iran soon.
"The effort in resolving payment issue with Iran is under progress. We are confident that an all-acceptable solution will be found shortly,"MRPL, which is Iran's top Indian client, said in a statement.
Since December, India and Iran have struggled to find ways for New Delhi to pay for imports of 400,000 barrels per day, 12 percent of its oil demand, after the Reserve Bank of India halted a clearing mechanism under U.S. pressure.
Top exporter Saudi Arabia has struck deals to sell 3 million barrels more oil to India in August, stepping into the vacuum created by regional rival Iran after it cut supply to New Delhi.
MRPL, which runs a 236,400 barrels per day (bpd) coastal refinery in southern India, buys about 150,000 bpd crude oil from Iran.
"The effort in resolving payment issue with Iran is under progress. We are confident that an all-acceptable solution will be found shortly,"MRPL, which is Iran's top Indian client, said in a statement.
Since December, India and Iran have struggled to find ways for New Delhi to pay for imports of 400,000 barrels per day, 12 percent of its oil demand, after the Reserve Bank of India halted a clearing mechanism under U.S. pressure.
Top exporter Saudi Arabia has struck deals to sell 3 million barrels more oil to India in August, stepping into the vacuum created by regional rival Iran after it cut supply to New Delhi.
MRPL, which runs a 236,400 barrels per day (bpd) coastal refinery in southern India, buys about 150,000 bpd crude oil from Iran.
Reliance Power, LandT, Adani Power, GMR Energy and 17 others bid for Rs 1,025-cr Tamil Nadu-Karnataka power link
NEW DELHI: Twenty-two domestic and foreign companies have bid for setting up a Rs 1,025-crore power transmission project connecting Tamil Nadu and Karnataka even as the central government tightened eligibility rules.
While Reliance Power, L&T, Lanco Infratech, Sterlite Energy, Adani Power,GMR Energy andTorrent Power are among the Indian bidders, the foreign companies included Spain's Elecnor, Isolux, Instalaciones Inabensa and Cobra Instalaciones.
Power Finance Corp is coordinating the bidding for the build-own-operate project, which involves laying two high capacity 250-km transmission lines to connect Nagapattinam with Madhugiri in Karnataka.
The government had revised the bidding norms for transmission projects three months ago. Now, a bidder should have experience in setting up any infrastructure project of the same cost as that of the transmission project. Earlier this requirement was one-fifth of the size of the transmission project.
The government has identified three more high-capacity transmission systems to be awarded to private companies. PFC and Rural Electrification Corp would conduct bidding for these projects. The two companies have so far awarded six such projects worth 10,860 crore for strengthening interconnection between the north and western regions.
Vedanta Group's Sterlite Transmission Projects has bagged contracts to build three large power transmission links.Reliance Power has bagged two such projects while a consortium of Simplex Infrastructure, Patel Engineering and BS Transcomm has been awarded the sixth contract. Power transmission is a monopoly of Power Grid Corp, which owns and operates about 45% of inter-state transmission system.
While Reliance Power, L&T, Lanco Infratech, Sterlite Energy, Adani Power,GMR Energy andTorrent Power are among the Indian bidders, the foreign companies included Spain's Elecnor, Isolux, Instalaciones Inabensa and Cobra Instalaciones.
Power Finance Corp is coordinating the bidding for the build-own-operate project, which involves laying two high capacity 250-km transmission lines to connect Nagapattinam with Madhugiri in Karnataka.
The government had revised the bidding norms for transmission projects three months ago. Now, a bidder should have experience in setting up any infrastructure project of the same cost as that of the transmission project. Earlier this requirement was one-fifth of the size of the transmission project.
The government has identified three more high-capacity transmission systems to be awarded to private companies. PFC and Rural Electrification Corp would conduct bidding for these projects. The two companies have so far awarded six such projects worth 10,860 crore for strengthening interconnection between the north and western regions.
Vedanta Group's Sterlite Transmission Projects has bagged contracts to build three large power transmission links.Reliance Power has bagged two such projects while a consortium of Simplex Infrastructure, Patel Engineering and BS Transcomm has been awarded the sixth contract. Power transmission is a monopoly of Power Grid Corp, which owns and operates about 45% of inter-state transmission system.
Cairn Energy gets oil ministry letter on Vedanta deal
NEW DELHI: More than three weeks after theCabinet Committee on Economic Affairs gave conditional nod to the $9-billion Cairn-Vedanta deal, the oil ministry on Tuesday sent a formal letter to the companies informing of the decision.
"The letter was collected byCairn India representatives this afternoon," an oil ministry official said.
Cairn Energy, which is selling 40% out its 62.4% stake in its Indian unit to London-listed, India-focused mining groupVedanta Resources, was eagerly awaiting the formal letter so that it can quickly conclude the transaction.
"The letter was collected byCairn India representatives this afternoon," an oil ministry official said.
Cairn Energy, which is selling 40% out its 62.4% stake in its Indian unit to London-listed, India-focused mining groupVedanta Resources, was eagerly awaiting the formal letter so that it can quickly conclude the transaction.
Private firms overtake government enterprises in power production, adds about 84% of the target
NEW DELHI: Skewed procurement policies and poor project management have forced thePlanning Commission to slash the capacity addition target of public sectorpower producers. The commission has instead raised the bar for private generation companies, an indication of its growing expectations from the sector in servicing India's future energy needs.
Power projects run by the Central government added only half of the targeted generation capacity in 2010-11, while state government-funded projects fared even worse, meeting only 42% of the target.
Projects funded by the private sector, however, added 5,122 MW of more capacity, about 84% of the target set by the commission.
"Many issues have plagued the public enterprises in the power sector while the private sector has picked up," a Planning Commission official said. "This is apparent from the trends we are seeing, and therefore, targets for the next year have been fixed accordingly."
The commission has cut the 2011-12 target of central projects by 25% and that of state projects by 36%. But it has raised the capacity addition target of the private sector by 25% to 7,610 MW.
The commission had initially fixed the capacity addition target for the 11th Plan (2007-11) at 78,700 MW. But it later year scaled down the figure to 62,374 MW. During its mid-term appraisal last year, the commission had reduced the target for the 11th Plan even further to 34,462 MW.
"The two key reasons why public sector has slipped in the planned capacity addition are issues with procurement of equipment and poor project management," said Debashish Mishra, senior director withDeloitte India. "Most of the projects are stuck due to problems of coordination within different government agencies."
Sambitosh Mohapatra, executive director with PricewaterhouseCoopers, said public sector companies were suffering because of capacity constraints of equipment manufacturers likeBharat Heavy Electricals Limited.
"New power capacities cannot be created if equipment manufacturers who supply to the pubic sector are facing capacity constraints. They are unable to meet the requirements of public sector power companies," Mohapatra said.
As public sector companies battle issues of procurement, private sector firms have successfully established strategic partnerships with Chinese companies.
"Most of the big private companies like Reliance,Adani and Lanco procure from Chinese companies who are very efficient and deliver on time, and that benefits projects. This is not the case with public projects," Mishra added.
At present, Chinese companies are sitting roughly in excess of 25,000 MW of orders from private power companies in India.
The private sector's contribution to the power sector in the 11th Plan has been much more than what the commission had originally anticipated. The commission had envisaged the private sector to contribute only 19% of new capacities at the beginning of the Plan. But in 2010, it revised the figure to 30%.
It now expects the private sector to contribute most of the 60% of new capacities in the 12th Plan (2012- 17).
Power projects run by the Central government added only half of the targeted generation capacity in 2010-11, while state government-funded projects fared even worse, meeting only 42% of the target.
Projects funded by the private sector, however, added 5,122 MW of more capacity, about 84% of the target set by the commission.
"Many issues have plagued the public enterprises in the power sector while the private sector has picked up," a Planning Commission official said. "This is apparent from the trends we are seeing, and therefore, targets for the next year have been fixed accordingly."
The commission has cut the 2011-12 target of central projects by 25% and that of state projects by 36%. But it has raised the capacity addition target of the private sector by 25% to 7,610 MW.
The commission had initially fixed the capacity addition target for the 11th Plan (2007-11) at 78,700 MW. But it later year scaled down the figure to 62,374 MW. During its mid-term appraisal last year, the commission had reduced the target for the 11th Plan even further to 34,462 MW.
"The two key reasons why public sector has slipped in the planned capacity addition are issues with procurement of equipment and poor project management," said Debashish Mishra, senior director withDeloitte India. "Most of the projects are stuck due to problems of coordination within different government agencies."
Sambitosh Mohapatra, executive director with PricewaterhouseCoopers, said public sector companies were suffering because of capacity constraints of equipment manufacturers likeBharat Heavy Electricals Limited.
"New power capacities cannot be created if equipment manufacturers who supply to the pubic sector are facing capacity constraints. They are unable to meet the requirements of public sector power companies," Mohapatra said.
As public sector companies battle issues of procurement, private sector firms have successfully established strategic partnerships with Chinese companies.
"Most of the big private companies like Reliance,Adani and Lanco procure from Chinese companies who are very efficient and deliver on time, and that benefits projects. This is not the case with public projects," Mishra added.
At present, Chinese companies are sitting roughly in excess of 25,000 MW of orders from private power companies in India.
The private sector's contribution to the power sector in the 11th Plan has been much more than what the commission had originally anticipated. The commission had envisaged the private sector to contribute only 19% of new capacities at the beginning of the Plan. But in 2010, it revised the figure to 30%.
It now expects the private sector to contribute most of the 60% of new capacities in the 12th Plan (2012- 17).
Chief Ministers of 11 states to support an anti-tobacco campaign
PANAJI:Chief Ministers of 11 states in India have pledged their support toVoice of Tobacco Victims (VOTV), a national campaign against chewing tobacco in their states to root out the social evil, a nationalNGO said today.
General Secretary of National Organisation for Tobacco Eradication (NOTE), Shekhar Salkar stated that chief ministers of Assam, Goa, Punjab, Kerala, Karnataka, Maharashtra, Arunachal Pradesh, Uttarakhand, Chhattisgarh, Rajasthan and Gujarat have pledged to do their best for oral cancer victims, doctors and tobacco control advocates of their states.
"The victims, along with oncologists met their respective chief ministers and urged them to protect the people of their states from the harmful effects of tobacco products by banning gutka, implementing stringent pictorial warnings on chewing tobacco products, putting an end to indirect advertising of chewing tobacco product, stopping sale of chewing tobacco products near educational institutions, increasing taxation on all tobacco products," Salkar stated.
"All the chief ministers assured the victims of their commitment by signing a pledge calling for a ban on gutka and khaini products," Salkar said.
"I will raise my voice against this issue and support all initiatives to rid India of this menace of gutka and khaini and help save millions of Indian lives," reads the pledge.
It is heartening that custodians of health of the state have pledged their support for tobacco control, said Dr Pankaj Chaturvedi, Associate Professor, Head and Neck Department Tata Memorial Hospital, Mumbai.
"We salute all those CMs who have openly supported and urge those, whom we could not reach and those, who are still to decide about their stand on this issue, to support this initiative to get rid of this menace from India," he added.
VOTV is a national campaign to advocate against the chewing tobacco and other smokeless forms of tobacco. It has been conceptualised and initiated by the victims of oral cancer, who have come together to promote greater awareness about the harmful effects of tobacco use.
Numerous doctors and directors of regional cancer centres from across the country are supporting VOTV for the cause.
In March, directors of 17 regional cancer centres in India, including the Tata Memorial Centre (TMC), had written letters to the Prime Minister Manmohan Singh to ban gutka and other chewing tobacco products in India.
A recent report by experts of National Institute of Health and Family Welfare (NIHFW) on the harmful effects of gutka informs that the number of oral cancer cases in India alone stands at 86 per cent of the oral cancer figures across the world.
India has the highest number of oral cancer patients in the world with 75, 000 to 80, 000 new cases of oral cancers a year. Shockingly, chewing tobacco and gutka contribute to 90 per cent of oral cancer cases in the country.
According to last year's Global Adult Tobacco Survey (GATS 2010), nearly 1/3 of Indian population is addicted to smokeless tobacco, including a large section of children and youth in India.
Depending upon the geographical areas, different names with different combinations of smokeless tobacco are marketed, such as mawa, khaini, gudakhu, panni etc. All these items essentially have tobacco.
"Despite the Supreme Court order banning gutka in plastic pouches, gutka, pan masala and other smokeless tobacco products are still widely sold in plastic pouches. The enforcement agencies need to take actions against the errants," Salkar said.
General Secretary of National Organisation for Tobacco Eradication (NOTE), Shekhar Salkar stated that chief ministers of Assam, Goa, Punjab, Kerala, Karnataka, Maharashtra, Arunachal Pradesh, Uttarakhand, Chhattisgarh, Rajasthan and Gujarat have pledged to do their best for oral cancer victims, doctors and tobacco control advocates of their states.
"The victims, along with oncologists met their respective chief ministers and urged them to protect the people of their states from the harmful effects of tobacco products by banning gutka, implementing stringent pictorial warnings on chewing tobacco products, putting an end to indirect advertising of chewing tobacco product, stopping sale of chewing tobacco products near educational institutions, increasing taxation on all tobacco products," Salkar stated.
"All the chief ministers assured the victims of their commitment by signing a pledge calling for a ban on gutka and khaini products," Salkar said.
"I will raise my voice against this issue and support all initiatives to rid India of this menace of gutka and khaini and help save millions of Indian lives," reads the pledge.
It is heartening that custodians of health of the state have pledged their support for tobacco control, said Dr Pankaj Chaturvedi, Associate Professor, Head and Neck Department Tata Memorial Hospital, Mumbai.
"We salute all those CMs who have openly supported and urge those, whom we could not reach and those, who are still to decide about their stand on this issue, to support this initiative to get rid of this menace from India," he added.
VOTV is a national campaign to advocate against the chewing tobacco and other smokeless forms of tobacco. It has been conceptualised and initiated by the victims of oral cancer, who have come together to promote greater awareness about the harmful effects of tobacco use.
Numerous doctors and directors of regional cancer centres from across the country are supporting VOTV for the cause.
In March, directors of 17 regional cancer centres in India, including the Tata Memorial Centre (TMC), had written letters to the Prime Minister Manmohan Singh to ban gutka and other chewing tobacco products in India.
A recent report by experts of National Institute of Health and Family Welfare (NIHFW) on the harmful effects of gutka informs that the number of oral cancer cases in India alone stands at 86 per cent of the oral cancer figures across the world.
India has the highest number of oral cancer patients in the world with 75, 000 to 80, 000 new cases of oral cancers a year. Shockingly, chewing tobacco and gutka contribute to 90 per cent of oral cancer cases in the country.
According to last year's Global Adult Tobacco Survey (GATS 2010), nearly 1/3 of Indian population is addicted to smokeless tobacco, including a large section of children and youth in India.
Depending upon the geographical areas, different names with different combinations of smokeless tobacco are marketed, such as mawa, khaini, gudakhu, panni etc. All these items essentially have tobacco.
"Despite the Supreme Court order banning gutka in plastic pouches, gutka, pan masala and other smokeless tobacco products are still widely sold in plastic pouches. The enforcement agencies need to take actions against the errants," Salkar said.
Battery maker Eveready goes for image makeover
NEW DELHI: Battery maker Eveready on Monday said it is undertaking an image makeover to position itself as a youth oriented brand, while also introducing more products with advanced technology.
The company has also roped in London-based consultancy firmEvolve Creative as part of its initiative to give a fresh look to the brand.
"We keep innovating to make the brand more relevant. So bringing new models and giving a new look are some of the things we are doing right now," Eveready Senior General Manager (Flashlight Division)) Anil Bajaj told PTI.
Besides, the Kolkata based firm had also recently signed on Bollywood actor Akshay Kumar for the next two years to endorse its products.
"As a strategy we believe in giving a large burst in terms of marketing initiative after every two-three years rather than talking about the brand every year," Bajaj said.
As part of the image makeover exercise, the company said it has upgraded its torch and lamp portfolio by "launching new models and improved packaging".
The company is also bringing back its 'Give me Red' television commercial featuring the actor in a month's time.
Eveready sells around 1.2 billion units of batteries annually and over 2 million pieces of torches per annum.
The company has also roped in London-based consultancy firmEvolve Creative as part of its initiative to give a fresh look to the brand.
"We keep innovating to make the brand more relevant. So bringing new models and giving a new look are some of the things we are doing right now," Eveready Senior General Manager (Flashlight Division)) Anil Bajaj told PTI.
Besides, the Kolkata based firm had also recently signed on Bollywood actor Akshay Kumar for the next two years to endorse its products.
"As a strategy we believe in giving a large burst in terms of marketing initiative after every two-three years rather than talking about the brand every year," Bajaj said.
As part of the image makeover exercise, the company said it has upgraded its torch and lamp portfolio by "launching new models and improved packaging".
The company is also bringing back its 'Give me Red' television commercial featuring the actor in a month's time.
Eveready sells around 1.2 billion units of batteries annually and over 2 million pieces of torches per annum.
Gitanjali Group launches a new brand identity and logo
MUMBAI: The country's largest brandedjewellery retailer Gitanjali Group has launched a newbrand identity andlogo in line with its strategy to be a diversified player with business spreading from jewellery to lifestyle segment.
"The new logo is yet another historic milestone on our journey from being a diamond and jewellery manufacturer to becoming the largest integrated jeweller in the world and a key player in the luxury-lifestyle space," said Mehul Choksi, CMD, Gitanjali Group. "It reflects all the values that have been at the core of our business philosophy as well the vision and direction in which we aim to grow."
Since the last decade, Gitanjali has become the largest player in the branded jewellery segment inIndia, with a rapid expansion of the brand portfolio that includes straddling across price-points. at present, four of the top five jewellery brands - Nakshatra, Gili, Asmi and D'damas -- in the country are from Gitanjali.
After the acquisition ofUS jewellery chains Samuels and Rogers in 2006 and 2007, the Group had rapidly increased its international presence. Just last year, the firm acquired Italian jewellery brands Stefan Hafner, Nouvelle Bague, IO SI, Porrati and Valente. At the same time, it has also strengthened its presence in the luxury lifestyle sector under the banners of Gitanjali Lifestyle, Giantti Luxury Ensemble and other formats in the Indian market.
The new identity and logo is created by JWT. "In the process of revitalizing the identity of Gitanjali it was important to maintain the stature and represent the diverse offerings of the brand, Kalpita Bose- VP, Head of Design, JWT, said.
"The new logo is yet another historic milestone on our journey from being a diamond and jewellery manufacturer to becoming the largest integrated jeweller in the world and a key player in the luxury-lifestyle space," said Mehul Choksi, CMD, Gitanjali Group. "It reflects all the values that have been at the core of our business philosophy as well the vision and direction in which we aim to grow."
Since the last decade, Gitanjali has become the largest player in the branded jewellery segment inIndia, with a rapid expansion of the brand portfolio that includes straddling across price-points. at present, four of the top five jewellery brands - Nakshatra, Gili, Asmi and D'damas -- in the country are from Gitanjali.
After the acquisition ofUS jewellery chains Samuels and Rogers in 2006 and 2007, the Group had rapidly increased its international presence. Just last year, the firm acquired Italian jewellery brands Stefan Hafner, Nouvelle Bague, IO SI, Porrati and Valente. At the same time, it has also strengthened its presence in the luxury lifestyle sector under the banners of Gitanjali Lifestyle, Giantti Luxury Ensemble and other formats in the Indian market.
The new identity and logo is created by JWT. "In the process of revitalizing the identity of Gitanjali it was important to maintain the stature and represent the diverse offerings of the brand, Kalpita Bose- VP, Head of Design, JWT, said.
World's most iconic jeweller Faberge unveils first new collection of high jewellery egg
LONDON: Say Faberge, and eight out of ten people will respond with Egg. The fabulously famed- and almost stratospherically valuable-Faberge Eggs are not just historical masterpieces, like a Rembrandt or a Van Gogh, they're an enduring image of the opulence, history and grandeur of the Romanov Tsars.
Now, even if you can't fork out $19.5 million - the price at which Christie's recently auctioned the Rothschild egg - despair not. The famed Faberge Egg is back, for the first time since 1917. And you could have a genuine Faberge egg for as low as about $4,000, or a one of a kind diamond- titanium pendant for $600,000.
The Faberge Egg, originally, was commissioned byTsar Nicholas II as an Easter gift for his Tsarina, after the long and arduous Russian summer, as a symbol of revival and spring. It is said that theEmpress was so thrilled, it became an annual tradition. And so was born the legacy of the Imperial Eggs.
South African tycoonBrian Gilbertson, who bought the historical brand in 2007, has brought back the Faberge Egg two yeas after relaunching Faberge as a global super luxury high jewellery brand. Why so long? Says Katharina Flohr, creative and marketing director of Faberge, "It was necessary for us to first establish a presence in the high jewellery market, all kinds of junk was being sold as Faberge in the intervening years."
The history of Faberge in the past century has been quite as colourful, if not more, than when Peter Carl Faberge was the darling of kings and empresses. After the Romanovs - and theHouse of Faberge - was abruptly terminated in 1917, the family scattered all over Europe.
The descendants of Peter Carl lost the rights to the Faberge brand in 1951. After changing hands a couple of times, and many twists and turns of fate, including producing Hollywood movies under the Faberge banner, and selling cheap perfumes like Brut, the brand ended up with Unilever and in the counters of the localDollar Store.
In 2007, Gilbertson, along with his sonSean, bought it from Unilever for a reported $38 million, with the intention of making it theDe Beers of the coloured gemstone world. With interests in platinum, colored gemstone companies, and other natural resources, the father-son duo set up Pallinghurst Resources, an investment vehicle, to make the most of their synergies across the gemstones and precious metals businesses globally resurrect a brand that has survived almost a century of abuse.
"It's important to access the younger market. It does not take away from the high-end positioning of the high-jewellery eggs," says Flohr. The Indian market has always been of interest to Faberge. The new custodians of the Faberge brand are well aware that the often ornate, colourful and unabashedly elaborate and exotic style of Faberge works well with Indians.
Flohr says that though Faberge "hasn't yet set foot" in India officially, they would love to start off with an exhibition or event, which is how Faberge has done displays around the world. "We do have a lot of Indian clients, you know," adds Flohr.
Now, even if you can't fork out $19.5 million - the price at which Christie's recently auctioned the Rothschild egg - despair not. The famed Faberge Egg is back, for the first time since 1917. And you could have a genuine Faberge egg for as low as about $4,000, or a one of a kind diamond- titanium pendant for $600,000.
The Faberge Egg, originally, was commissioned byTsar Nicholas II as an Easter gift for his Tsarina, after the long and arduous Russian summer, as a symbol of revival and spring. It is said that theEmpress was so thrilled, it became an annual tradition. And so was born the legacy of the Imperial Eggs.
South African tycoonBrian Gilbertson, who bought the historical brand in 2007, has brought back the Faberge Egg two yeas after relaunching Faberge as a global super luxury high jewellery brand. Why so long? Says Katharina Flohr, creative and marketing director of Faberge, "It was necessary for us to first establish a presence in the high jewellery market, all kinds of junk was being sold as Faberge in the intervening years."
The history of Faberge in the past century has been quite as colourful, if not more, than when Peter Carl Faberge was the darling of kings and empresses. After the Romanovs - and theHouse of Faberge - was abruptly terminated in 1917, the family scattered all over Europe.
The descendants of Peter Carl lost the rights to the Faberge brand in 1951. After changing hands a couple of times, and many twists and turns of fate, including producing Hollywood movies under the Faberge banner, and selling cheap perfumes like Brut, the brand ended up with Unilever and in the counters of the localDollar Store.
In 2007, Gilbertson, along with his sonSean, bought it from Unilever for a reported $38 million, with the intention of making it theDe Beers of the coloured gemstone world. With interests in platinum, colored gemstone companies, and other natural resources, the father-son duo set up Pallinghurst Resources, an investment vehicle, to make the most of their synergies across the gemstones and precious metals businesses globally resurrect a brand that has survived almost a century of abuse.
"It's important to access the younger market. It does not take away from the high-end positioning of the high-jewellery eggs," says Flohr. The Indian market has always been of interest to Faberge. The new custodians of the Faberge brand are well aware that the often ornate, colourful and unabashedly elaborate and exotic style of Faberge works well with Indians.
Flohr says that though Faberge "hasn't yet set foot" in India officially, they would love to start off with an exhibition or event, which is how Faberge has done displays around the world. "We do have a lot of Indian clients, you know," adds Flohr.
L'Oreal plans to invest Rs 500 crore in India to open factories, labs and innovation centre
MUMBAI:L'Oreal SA plans to invest Rs 500 crore to open more factories, laboratories and an innovation centre in India, which the French cosmetics giant wants to be one of its top six markets in the world by the end of this decade, a top official said.
The company also plans to take several brands developed in the country to other markets, L'Oreal's Asia Pacific Zone MD Jochen Zaumseil says. "Garnier Color Naturals, Matrix oils, a salon specific brand and Kaajal (eyeliner) are all Indian innovations that we will be soon launching in other countries, especially in South East Asia because we feel that if its successful in a market like India, it should so well in other emerging countries too," says Zaumseil.
He was here to check the progress of the firm's research & innovation centre- its sixth such global facility-that will be inaugurated at Mankhurd in Mumbai next month.
India currently accounts for less than 1% of L'Oreal's annual sales kitty of over euro 20 billion. L'Oreal India targets 1 billion (Rs 6,300 crore) from its business in the next few years, up from Rs 1,000 crore in calendar 2010. The company wants to compensate for its late-mover disadvantage by flooding retail shelves with global products as well as brands developed locally.
The company also plans to take several brands developed in the country to other markets, L'Oreal's Asia Pacific Zone MD Jochen Zaumseil says. "Garnier Color Naturals, Matrix oils, a salon specific brand and Kaajal (eyeliner) are all Indian innovations that we will be soon launching in other countries, especially in South East Asia because we feel that if its successful in a market like India, it should so well in other emerging countries too," says Zaumseil.
He was here to check the progress of the firm's research & innovation centre- its sixth such global facility-that will be inaugurated at Mankhurd in Mumbai next month.
India currently accounts for less than 1% of L'Oreal's annual sales kitty of over euro 20 billion. L'Oreal India targets 1 billion (Rs 6,300 crore) from its business in the next few years, up from Rs 1,000 crore in calendar 2010. The company wants to compensate for its late-mover disadvantage by flooding retail shelves with global products as well as brands developed locally.
Toshiba introduce 32" LCD television at 20,990 & 19" LCD TV segment at Rs 10,000, triggers LCD TV price war
NEW DELHI: Japanese electronics firm Toshiba has triggered a price war in the flat panel televisions segment by introducing a 32-inchLCD television at 20,990 and entering the 19-inch LCD TV segment at an entry price of 10,000.
The prices are up to 30% less than similar products of rivals like LG, Samsung,Sony and Onida.
"We want to get closer to consumers at the earliest as competition is getting intense,"Toshiba India Director (Digital Products) Wu Tengguo said.
The company wants to lure Indian consumers to replace their traditional cathode ray tube (CRT) television sets with flat-panel LCD televisions, he said. CRT TVs still occupy nearly 60% of the domestic television market.
Toshiba, which sold 30,000 LCD TVs in India last financial year, has set an ambitious target of selling 3 lakh LCD sets and acquire close to 10% market share this year.
Sony,LG andSamsung currently dominate Indian flat-panel TV market.
Samsung India Deputy MD R Zutshi said any price war will not last long. "There is certainly a scope for companies to experiment with new sizes as LCD TV penetration is still very low. However, the price war is not going to continue for long as prices have already touched the bottom," Zutshi said.
Korean firms LG and Samsung-which together account for almost half of the market share across key product categories such as TV, refrigerators, washing machines and ACs-sell entry-level 32-inch LCD TV at 29,990, while homegrown brandOnida sells it for 23,490.
Even more significant could be Toshiba's entry into the 19-inch LCD TV segment at 10,000. Half of the three million flat-panel televisions sold in the country in 2010 were 19-26 inches in size.
Toshiba will soon start making LCD TVs in India , Tengguo said.
Toshiba's aggressive move is another example for Japanese companies' recent efforts to increase market share in India, which they lost to Korean rivals in late 1990s and early 2000s, mainly due to their premium pricing.
The prices are up to 30% less than similar products of rivals like LG, Samsung,Sony and Onida.
"We want to get closer to consumers at the earliest as competition is getting intense,"Toshiba India Director (Digital Products) Wu Tengguo said.
The company wants to lure Indian consumers to replace their traditional cathode ray tube (CRT) television sets with flat-panel LCD televisions, he said. CRT TVs still occupy nearly 60% of the domestic television market.
Toshiba, which sold 30,000 LCD TVs in India last financial year, has set an ambitious target of selling 3 lakh LCD sets and acquire close to 10% market share this year.
Sony,LG andSamsung currently dominate Indian flat-panel TV market.
Samsung India Deputy MD R Zutshi said any price war will not last long. "There is certainly a scope for companies to experiment with new sizes as LCD TV penetration is still very low. However, the price war is not going to continue for long as prices have already touched the bottom," Zutshi said.
Korean firms LG and Samsung-which together account for almost half of the market share across key product categories such as TV, refrigerators, washing machines and ACs-sell entry-level 32-inch LCD TV at 29,990, while homegrown brandOnida sells it for 23,490.
Even more significant could be Toshiba's entry into the 19-inch LCD TV segment at 10,000. Half of the three million flat-panel televisions sold in the country in 2010 were 19-26 inches in size.
Toshiba will soon start making LCD TVs in India , Tengguo said.
Toshiba's aggressive move is another example for Japanese companies' recent efforts to increase market share in India, which they lost to Korean rivals in late 1990s and early 2000s, mainly due to their premium pricing.
Sony India eyes sales turnover of Rs 7,400 crore this fiscal
KOCHI:Sony India was targeting a sales turnover of Rs 7,400 crore this fiscal, a 35 per cent growth from the previous year, a top official today said.
The last fiscal's turnover of the company was Rs 5,400 crore.
Announcing its plans for Kerala during the 'Onam' festival,Sony India Managing DirectorMasaru Tamagawa told reporters here that the company was eyeing a growth of 46 per cent in sales during the festival season to touch Rs 110 crore during the July-September this year.
During the three-month festival period in 2010, the turnover was Rs 74 crore and Rs 50 crore in the same period in 2009.
Banking on its innovative technology and the new product line up, retail network expansion and heavy marketing investment, the company was positive about consolidating its top position in key product categories, he said.
Sony will expand its distribution network in the state to 360 outlets from the present 290 during this financial year and has set apart Rs 6 crore for market promotion during Onam.
Tamagawa said every year almost 40 per cent of the company's total sales in the state are achieved during the festive period.
During this year the company was targeting a business of Rs 285 crore from the state against last year's Rs 200 crore.
The last fiscal's turnover of the company was Rs 5,400 crore.
Announcing its plans for Kerala during the 'Onam' festival,Sony India Managing DirectorMasaru Tamagawa told reporters here that the company was eyeing a growth of 46 per cent in sales during the festival season to touch Rs 110 crore during the July-September this year.
During the three-month festival period in 2010, the turnover was Rs 74 crore and Rs 50 crore in the same period in 2009.
Banking on its innovative technology and the new product line up, retail network expansion and heavy marketing investment, the company was positive about consolidating its top position in key product categories, he said.
Sony will expand its distribution network in the state to 360 outlets from the present 290 during this financial year and has set apart Rs 6 crore for market promotion during Onam.
Tamagawa said every year almost 40 per cent of the company's total sales in the state are achieved during the festive period.
During this year the company was targeting a business of Rs 285 crore from the state against last year's Rs 200 crore.
Philips recalls 95,000 hair dryer units over safety hazard
NEW DELHI: Dutch consumer electronics firmPhilips today said it is recalling 95,000 of its hair dryer units in India due to a potential hazard to customers caused by overheating when left plugged into an electric connection.
The company said it is recalling two foldable hair dryer models -- HP4931 andHP 4940 -- sold in India between September, 2008, and February, 2011.
"It has been found that in very rare cases, the hairdryer can overheat when left plugged into the electrical connection. This poses a potential hazard, even when the appliance is switched off and not in use," Philips said in a public announcement.
The company, however, said the risk for consumers is very low and no safety incidents have been reported in India.
"This is a precautionary recall that underlines Philips' commitment as a global leader in hair care appliances," it added.
At present, Philips sells five hair dryer models in India. This is the first ever recall in India for Philips in any of its product categories.
The company said it is recalling two foldable hair dryer models -- HP4931 andHP 4940 -- sold in India between September, 2008, and February, 2011.
"It has been found that in very rare cases, the hairdryer can overheat when left plugged into the electrical connection. This poses a potential hazard, even when the appliance is switched off and not in use," Philips said in a public announcement.
The company, however, said the risk for consumers is very low and no safety incidents have been reported in India.
"This is a precautionary recall that underlines Philips' commitment as a global leader in hair care appliances," it added.
At present, Philips sells five hair dryer models in India. This is the first ever recall in India for Philips in any of its product categories.
Bird Group to launch Swiss leather goods brand Bally in India
NEW DELHI: Bird Group, a diversified business entity, today said it has entered into a franchise agreement with Swiss luxury goods firm Labelux to launch the latter's leather goods brandBally in India.
Bird Group will set up the first exclusive Bally store in the country later this year in Delhi.
"This partnership is of immense strategic importance for us. We believe that Bally's heritage of excellence in craftsmanship and established reputation in luxury goods is a perfect fit with India's evolving luxury sector and consumer expectations," Bird Group Executive Director Ankur Bhatia said in a statement.
The company, however, did not specify the total number of outlets planned in near future.
Founded in Switzerland in 1851, Bally is owned byLabelux Group that manufactures shoes and accessories under the brand.
Commenting on the development Bally CEO Berndt Hauptkorn said, "Today, we operate in almost 90 countries. This partnership marks our entry into the Indian market, which is one of huge potential for today and well into the future."
Bird Group will set up the first exclusive Bally store in the country later this year in Delhi.
"This partnership is of immense strategic importance for us. We believe that Bally's heritage of excellence in craftsmanship and established reputation in luxury goods is a perfect fit with India's evolving luxury sector and consumer expectations," Bird Group Executive Director Ankur Bhatia said in a statement.
The company, however, did not specify the total number of outlets planned in near future.
Founded in Switzerland in 1851, Bally is owned byLabelux Group that manufactures shoes and accessories under the brand.
Commenting on the development Bally CEO Berndt Hauptkorn said, "Today, we operate in almost 90 countries. This partnership marks our entry into the Indian market, which is one of huge potential for today and well into the future."
Cadbury Kraft India one of fastest growing operations for Kraft globally
MUMBAI: Chicago-headquarteredKraft Foods, which acquired Cadbury last January for $18.9 billion, is earning a double bonanza from British chocolate maker's Indian operations.
Not only isCadbury Kraft India one of the fastest growing operations for Kraft globally, revenues spurted by 40% in January-March 2011 quarter, the domestic business is proving to be a ripe hunting ground for talent.
Within a year-and-a-half of acquiring Cadbury, the $50 billion Kraft has picked up 21 managers for global and regional roles from the Indian affiliate.
These include Sunil Sethi director, sales, who has moved as general manager of Kraft Malaysia; marketing honcho Bharath Sastry has taken over as marketing director of Kraft Indonesia; Pravin Shetty from finance is now in Singapore as manager, business analysis; Mohit Wadhawan from logistics & customer operations too has a role in Singapore, as manager, manufacturing strategy; and Nikhil Rao from marketing has moved into a global role in chocolates in Zurich. In addition there are officials who are based in India but handling projects for other nations.
"Something like this has never ever happened in any other market wherever Kraft is present globally. And I think that it shows the commendable flexibility of Kraft to stick to its `best of both' strategy," points out Anand Kripalu, President, South Asia & Indo China, & Managing Director, Cadbury India. 'Best of both' refers to the Kraft-Cadbury combine's efforts to integrate the cultures, heritage and people of both brands.
On the brands front, that integration became visible recently when Kraft's iconic biscuits brand Oreo was launched in India under the Cadbury umbrella-something that hasn't been done in any other market.
Since the acquisition,Cadbury India has moved into two new Kraft categories - biscuits with Oreo and fruit juices and beverages with Tang. While Tang is manufactured at Kraft's Hyderabad plant, Punjab-basedBector Foods makes Oreo.
Not only isCadbury Kraft India one of the fastest growing operations for Kraft globally, revenues spurted by 40% in January-March 2011 quarter, the domestic business is proving to be a ripe hunting ground for talent.
Within a year-and-a-half of acquiring Cadbury, the $50 billion Kraft has picked up 21 managers for global and regional roles from the Indian affiliate.
These include Sunil Sethi director, sales, who has moved as general manager of Kraft Malaysia; marketing honcho Bharath Sastry has taken over as marketing director of Kraft Indonesia; Pravin Shetty from finance is now in Singapore as manager, business analysis; Mohit Wadhawan from logistics & customer operations too has a role in Singapore, as manager, manufacturing strategy; and Nikhil Rao from marketing has moved into a global role in chocolates in Zurich. In addition there are officials who are based in India but handling projects for other nations.
"Something like this has never ever happened in any other market wherever Kraft is present globally. And I think that it shows the commendable flexibility of Kraft to stick to its `best of both' strategy," points out Anand Kripalu, President, South Asia & Indo China, & Managing Director, Cadbury India. 'Best of both' refers to the Kraft-Cadbury combine's efforts to integrate the cultures, heritage and people of both brands.
On the brands front, that integration became visible recently when Kraft's iconic biscuits brand Oreo was launched in India under the Cadbury umbrella-something that hasn't been done in any other market.
Since the acquisition,Cadbury India has moved into two new Kraft categories - biscuits with Oreo and fruit juices and beverages with Tang. While Tang is manufactured at Kraft's Hyderabad plant, Punjab-basedBector Foods makes Oreo.
Allahabad Bank to offer loans to promote solar energy
KOLKATA: Allahabad Bank will provideloans to farmers and rural artisans to buysolar off-grids made byEnviron Energy Corporation India Pvt Ltd. It has entered into an agreement with thesolar energy solution company on Tuesday to this end.
The Kolkata-based public sector bank will offer the loan at 5% under the government's capital subsidy-cum-refinance scheme for promotion of solar off-grid. Farmers, agricultural labourers, rural artisans, entrepreneurs and salaried persons are eligible to get a loan under the scheme.
To avail of the loan, borrowers are required to foot 20% of the cost of the project as margin while 30% is available as capital subsidy. Borrowers will also get a Rs 500 rebate from the solar company.
The Kolkata-based public sector bank will offer the loan at 5% under the government's capital subsidy-cum-refinance scheme for promotion of solar off-grid. Farmers, agricultural labourers, rural artisans, entrepreneurs and salaried persons are eligible to get a loan under the scheme.
To avail of the loan, borrowers are required to foot 20% of the cost of the project as margin while 30% is available as capital subsidy. Borrowers will also get a Rs 500 rebate from the solar company.
Shriram Transport Finance reports 20 pc jump in PAT
CHENNAI: Non-banking finance companyShriram Transport Finance, flagship company of theShriram Group, has reported a 20.1 per cent jump in its profit after tax at Rs 347.30 crore for the quarter ended June 30, 2011.
The Chennai-headquartered company had registered profit after tax (PAT) of Rs 288.94 crore in the same period of previous year, a company release said.
For the year ending March 31, 2011, the PAT stood at Rs Rs 1,229.8 crore, it added.
The total income for the quarter ended June 30, 2011, grew to Rs 1,393.22 crore as compared to Rs 1,233.51 crore, the release said.
For the financial year ended March 31, 2011, the total income stood at Rs 5,259.71 crore, it said.
A final dividend of Rs four per share for the financial year 2010-11, was approved by the shareholders and was paid on July 4, 2011, it added.
As of June 30, 2011, the total assets under management stood at Rs 36,997 crore compared to Rs 36,182 crore as on March 31, 2011.
The Chennai-headquartered company had registered profit after tax (PAT) of Rs 288.94 crore in the same period of previous year, a company release said.
For the year ending March 31, 2011, the PAT stood at Rs Rs 1,229.8 crore, it added.
The total income for the quarter ended June 30, 2011, grew to Rs 1,393.22 crore as compared to Rs 1,233.51 crore, the release said.
For the financial year ended March 31, 2011, the total income stood at Rs 5,259.71 crore, it said.
A final dividend of Rs four per share for the financial year 2010-11, was approved by the shareholders and was paid on July 4, 2011, it added.
As of June 30, 2011, the total assets under management stood at Rs 36,997 crore compared to Rs 36,182 crore as on March 31, 2011.
Apollo Tyres sets up Middle East hub in Dubai
DUBAI: India's leading tyre manufacturer, Apollo Tyres, has set up a new Middle East operations hub in Dubai, it has been announced here.
Apollo Tyres is the 18th firm to move to The Galleries' A-grade offices and retail facilities in Dubai's Jabel Ali this year and brings the number of international and local businesses currently based there or undergoing fit-out to almost 50.
More leasing contracts are in the pipeline and the potential is limitless, the developer of the project said in a statement.
Apollo Tyres joins China National Petroleum,Siemens, Arup, L'Oreal, Ericsson,Kraft Food, SPX Corporation and dozens of other firms at The Galleries, where 395,000 square feet -- over 50 per cent -- of the total available office space is now taken.
Satish Sharma, Apollo Tyres' Chief of Operations in India, said the Middle East currently accounts for almost a third of the company's revenues from tyre exports out of India and Dubai itself is the region's biggest tyre distribution hub.
"Our new office at The Galleries cements our commitment to Dubai -- where we also have a 10,000-square foot tyre storage facility -- and enables us to boost our business across the region by addressing the growing needs of our customers here," Sharma said.
Tenants at The Galleries get the option of a Free Zone licence, an onsite Metro station, nearly 2,000 underground parking spaces and dedicated facilities management and tenant relations teams.
Bahaa Abouhatab, Project Director at The Galleries, said: "The arrival of yet another leading international firm at The Galleries further highlights its position as one of the UAE's key business locations. Our growing Galleries community now has almost 50 tenants, with more on the way, and we are delighted to welcome Apollo Tyres on board."
The Galleries is less than an hour by car from Abu Dhabi and just 200 metres from the Jebel Ali Metro station. The development sits on 215,000 square feet of landscaped, communal grounds.
Apollo Tyres is the 18th firm to move to The Galleries' A-grade offices and retail facilities in Dubai's Jabel Ali this year and brings the number of international and local businesses currently based there or undergoing fit-out to almost 50.
More leasing contracts are in the pipeline and the potential is limitless, the developer of the project said in a statement.
Apollo Tyres joins China National Petroleum,Siemens, Arup, L'Oreal, Ericsson,Kraft Food, SPX Corporation and dozens of other firms at The Galleries, where 395,000 square feet -- over 50 per cent -- of the total available office space is now taken.
Satish Sharma, Apollo Tyres' Chief of Operations in India, said the Middle East currently accounts for almost a third of the company's revenues from tyre exports out of India and Dubai itself is the region's biggest tyre distribution hub.
"Our new office at The Galleries cements our commitment to Dubai -- where we also have a 10,000-square foot tyre storage facility -- and enables us to boost our business across the region by addressing the growing needs of our customers here," Sharma said.
Tenants at The Galleries get the option of a Free Zone licence, an onsite Metro station, nearly 2,000 underground parking spaces and dedicated facilities management and tenant relations teams.
Bahaa Abouhatab, Project Director at The Galleries, said: "The arrival of yet another leading international firm at The Galleries further highlights its position as one of the UAE's key business locations. Our growing Galleries community now has almost 50 tenants, with more on the way, and we are delighted to welcome Apollo Tyres on board."
The Galleries is less than an hour by car from Abu Dhabi and just 200 metres from the Jebel Ali Metro station. The development sits on 215,000 square feet of landscaped, communal grounds.
Michelin's India plant targets tyre roll out by Nov 2012
CHENNAI: French tyre-maker Michelin's upcoming India plant in Chennai will roll out its first tyre in November 2012. The company plans to produce three lakh radial truck tyres in the first year of operations, and cater to the domestic market, a top official said.
Michelin is setting up a manufacturing unit at Thervoy Khaidigia industrial area in Tiruvallur district, near Chennai, and would be investing Rs 4,000 crore over a seven-year period.
"The plant capacity would be 20 lakh radial truck tyres. It would provide direct employment to 1,500 people," said Nicolas Beaumont, Managing Director, Michelin India, who addressed the media here on Wednesday.
He noted that radialisation in the truck and bus segment was 14.5% in 2010, which could go up to 50% in 2020.
Michelin is setting up a manufacturing unit at Thervoy Khaidigia industrial area in Tiruvallur district, near Chennai, and would be investing Rs 4,000 crore over a seven-year period.
"The plant capacity would be 20 lakh radial truck tyres. It would provide direct employment to 1,500 people," said Nicolas Beaumont, Managing Director, Michelin India, who addressed the media here on Wednesday.
He noted that radialisation in the truck and bus segment was 14.5% in 2010, which could go up to 50% in 2020.
Honda Motorcycle, Bajaj Auto, TVS Motors dealers offering freebies with cash benefits
NEW DELHI: After a gap of more than four years, freebies are back in the two-wheeler market. Dealers are wooing customers with cash benefits and lower interest rates to get some traction on sales.
Although the two-wheeler market is still going strong with double-digit growth, a few bikes are facing the heat on declining customer interest and have joined the discount bogey.
For instance, sales ofHonda Motorcycle and Scooter India's premium 110cc bike, CB Twister, priced at an ex-showroom price of Rs 49,775 in Delhi, have been sluggish due to competiton from biggies like Hero Honda's Splendor that comes at a lower price of Rs 41,350.
Dealers are thus offering discounts of up to Rs 3,500 in select markets on the CB Twister.
"We are offering some benefits to reduce our stocks as the market has been slowing with retail sales getting impacting and cautious customers postponing their purchase decisions," a central Delhi-based Honda dealer said. The market has not been impacted much by rising fuel prices as by surging interest rates which have shot to over 22-24% in the past one year, rising by around 4%.
"The interest rates for two-wheelers has risen more compared to cars as the risk is high though the total value of vehicle is much lower. There are a few models where dealers are vying for customers attention by discounting rates," a top executive ofHDFC Bank said. The benefits are mainly coming from dealers as companies maintain that they have not initiated any freebies yet.
"The two-wheeler market is still going strong and we do not see any reason to offer any benefits now," said head of marketing atBajaj Auto, Milind Bade. However, the company's 100cc entry level bike, Discover, is being offered at 0% rate of interest. Analysts tracking the market say that discounts from dealers are precursor to what the company may offer in few months.
The dealers ofTVS Motors is luring customers with a few insurance and road tax benefits in certain markets on their 110 cc Star City bike with deal benefits of up to Rs 1500.
Although the two-wheeler market is still going strong with double-digit growth, a few bikes are facing the heat on declining customer interest and have joined the discount bogey.
For instance, sales ofHonda Motorcycle and Scooter India's premium 110cc bike, CB Twister, priced at an ex-showroom price of Rs 49,775 in Delhi, have been sluggish due to competiton from biggies like Hero Honda's Splendor that comes at a lower price of Rs 41,350.
Dealers are thus offering discounts of up to Rs 3,500 in select markets on the CB Twister.
"We are offering some benefits to reduce our stocks as the market has been slowing with retail sales getting impacting and cautious customers postponing their purchase decisions," a central Delhi-based Honda dealer said. The market has not been impacted much by rising fuel prices as by surging interest rates which have shot to over 22-24% in the past one year, rising by around 4%.
"The interest rates for two-wheelers has risen more compared to cars as the risk is high though the total value of vehicle is much lower. There are a few models where dealers are vying for customers attention by discounting rates," a top executive ofHDFC Bank said. The benefits are mainly coming from dealers as companies maintain that they have not initiated any freebies yet.
"The two-wheeler market is still going strong and we do not see any reason to offer any benefits now," said head of marketing atBajaj Auto, Milind Bade. However, the company's 100cc entry level bike, Discover, is being offered at 0% rate of interest. Analysts tracking the market say that discounts from dealers are precursor to what the company may offer in few months.
The dealers ofTVS Motors is luring customers with a few insurance and road tax benefits in certain markets on their 110 cc Star City bike with deal benefits of up to Rs 1500.
Hero Honda to reveal new brand identity in London on August 9
NEW DELHI: The country's largest two-wheeler maker HeroHonda will reveal its much-anticipated global brand identity inLondon on August 9, as it takes the first major step of establishing its new image after going solo following erstwhile Japanese promoter Honda's exit.
"...as a significant first step towards the company's transformation into a major global brand, we would be unveiling our new brand name and identity in London, United Kingdom, on August 9, 2011," the company said.
Earlier in March this year, the company had hired global brand and innovation specialistWolff Olins to create its new brand identity. A part of the Omnicom group, Wolff Olins was mandated to work on the new brand identity in its totality, including the brand architecture, name, logo and positioning.
Later on, in May the two-wheeler major roped in Law &Kenneth (L&K) as a creative partner to launch and establish the new brand for the company. The independent brand communications firm was mandated to devise the new brand positioning of the company.
Hero Honda said it will also unfold a slew of strategic initiatives "which will allow us to further consolidate our leadership in India and also enter emerging markets globally."
The company had embarked on the journey to acquire a new brand name after the two joint venture partners ofHero Honda Motors Ltd (HHML) --Hero Group of India andHonda Motor Co of Japan -- decided to part ways in December last year.
The Munjals-promoted Hero Group had agreed to buy out Honda's 26 per cent stake inHHML for Rs 3,841.83 crore.
As per an agreement signed between the two erstwhile partners, Hero can use the Honda brand till 2014, but it is understood that the Indian group wants to acquire a new identity of its own at the earliest in order to maintain its leadership position.
Hero Group and Honda had signed a new licensing agreement in March, under which the Indian firm will pay its Japanese counterpart 45 billion yen (about Rs 2,450 crore) till 2014.
"...as a significant first step towards the company's transformation into a major global brand, we would be unveiling our new brand name and identity in London, United Kingdom, on August 9, 2011," the company said.
Earlier in March this year, the company had hired global brand and innovation specialistWolff Olins to create its new brand identity. A part of the Omnicom group, Wolff Olins was mandated to work on the new brand identity in its totality, including the brand architecture, name, logo and positioning.
Later on, in May the two-wheeler major roped in Law &Kenneth (L&K) as a creative partner to launch and establish the new brand for the company. The independent brand communications firm was mandated to devise the new brand positioning of the company.
Hero Honda said it will also unfold a slew of strategic initiatives "which will allow us to further consolidate our leadership in India and also enter emerging markets globally."
The company had embarked on the journey to acquire a new brand name after the two joint venture partners ofHero Honda Motors Ltd (HHML) --Hero Group of India andHonda Motor Co of Japan -- decided to part ways in December last year.
The Munjals-promoted Hero Group had agreed to buy out Honda's 26 per cent stake inHHML for Rs 3,841.83 crore.
As per an agreement signed between the two erstwhile partners, Hero can use the Honda brand till 2014, but it is understood that the Indian group wants to acquire a new identity of its own at the earliest in order to maintain its leadership position.
Hero Group and Honda had signed a new licensing agreement in March, under which the Indian firm will pay its Japanese counterpart 45 billion yen (about Rs 2,450 crore) till 2014.
Maruti Suzuki India to invest Rs 3,000 cr in 2012-13 on capacity expansion, new model launches
NEW DELHI: The country's largest car makerMaruti Suzuki India on Tuesday said it will invest about Rs 3,000 crore in 2012-13 financial year on various areas, including expanding capacity and new model launches.
The company is at present investing about Rs 4,000 crore in this fiscal primarily on setting new assembly lines inside its Manesar facility, marketing, R&D and new model launches.
"For next fiscal, our capex plan is about Rs 3,000 crore. We will inevest on expanding capacities, new model launches, marketing activities and R&D," Maruti Suzuki India (MSI) Chief Financial OfficerAjay Seth told analyst in a conference call.
For this financial year, the company will put in about Rs 4,000 crore in various activities, he said, adding, one third of the amount could be carried over to the next fiscal.
The company is setting up two new plants inside Manesar with 2.5 lakh annual capacity each at a total investment of Rs 3,625 crore. The first of these two plants is likley to be operationalised during September-October this year, while the other one is scheduled to be operational in 2012-13.
MSI had rolled out nearly 9.5 lakh units from its Gurgaon facility and 3.5 lakh units from the existing Manesar plant in the 2010-11 financial year.
Besides, the company is also investing Rs 2,500 crore for its K-series engine plant and setting up a dedicated R&D facility at Rohtak in Haryana.
The company spent 0.7 per cent of its net sales in R&D activities during April-June period this year as against 1.1 per cent in 2010-11, Seth said.
On account of spurt in demand of diesel cars, the company is increasing the production capacity of diesel cars to 2.9 lakh units annually from existing 2.4 lakh units. It sells diesel options of hatchbacks Swift and Ritz and sedans DZiRE and SX4.
"Diesel cars sales have increased to 60-80 per cent after de-regulation of petrol," Seth said, adding, they contributed 21 per cent to the total sales in first quarter compared to 19 per cent in the year-ago period.
The company will also ramp up the diesel engine capacity to 3 lakh units from 2.4 lakh units by the end of this fiscal. Diesel engines are produced by a separate entity --Suzuki Powertrain India Ltd -- at the Manesar facility.
Seth said the company's current import content stands at about 15 per cent, which MSI is planning to bring down by 2-3 per cent every year till next fiscal.
MSI today reported 18.02 per cent increase in net profit for the first quarter ended June 30 to Rs 549.23 crore from Rs 465.36 crore in the same quarter last fiscal.
Total income from operations during the quarter stood at Rs 8,529.30 crore as against Rs 8,309.18 crore in the same period last fiscal, an increase of 2.65 per cent.
The company is at present investing about Rs 4,000 crore in this fiscal primarily on setting new assembly lines inside its Manesar facility, marketing, R&D and new model launches.
"For next fiscal, our capex plan is about Rs 3,000 crore. We will inevest on expanding capacities, new model launches, marketing activities and R&D," Maruti Suzuki India (MSI) Chief Financial OfficerAjay Seth told analyst in a conference call.
For this financial year, the company will put in about Rs 4,000 crore in various activities, he said, adding, one third of the amount could be carried over to the next fiscal.
The company is setting up two new plants inside Manesar with 2.5 lakh annual capacity each at a total investment of Rs 3,625 crore. The first of these two plants is likley to be operationalised during September-October this year, while the other one is scheduled to be operational in 2012-13.
MSI had rolled out nearly 9.5 lakh units from its Gurgaon facility and 3.5 lakh units from the existing Manesar plant in the 2010-11 financial year.
Besides, the company is also investing Rs 2,500 crore for its K-series engine plant and setting up a dedicated R&D facility at Rohtak in Haryana.
The company spent 0.7 per cent of its net sales in R&D activities during April-June period this year as against 1.1 per cent in 2010-11, Seth said.
On account of spurt in demand of diesel cars, the company is increasing the production capacity of diesel cars to 2.9 lakh units annually from existing 2.4 lakh units. It sells diesel options of hatchbacks Swift and Ritz and sedans DZiRE and SX4.
"Diesel cars sales have increased to 60-80 per cent after de-regulation of petrol," Seth said, adding, they contributed 21 per cent to the total sales in first quarter compared to 19 per cent in the year-ago period.
The company will also ramp up the diesel engine capacity to 3 lakh units from 2.4 lakh units by the end of this fiscal. Diesel engines are produced by a separate entity --Suzuki Powertrain India Ltd -- at the Manesar facility.
Seth said the company's current import content stands at about 15 per cent, which MSI is planning to bring down by 2-3 per cent every year till next fiscal.
MSI today reported 18.02 per cent increase in net profit for the first quarter ended June 30 to Rs 549.23 crore from Rs 465.36 crore in the same quarter last fiscal.
Total income from operations during the quarter stood at Rs 8,529.30 crore as against Rs 8,309.18 crore in the same period last fiscal, an increase of 2.65 per cent.
Ford likely to locate second car manufacturing plant in Gujarat
AHMEDABAD:US carmaker Ford is likely to make an announcement on the setting up its secondcar manufacturing facility in Sanand taluka near here, official sources said on Tuesday.
Ford India's proposed site is likely to be next to Tata Nano's plant in Sanand. The company currently has a manufacturing facility at Chennai.
"Ford has been in discussion with the government to set up its second car manufacturing plant at an investment of nearly Rs 5,000 crore. It has decided on a 400 acres of land at Sanand for the facility," the state government officials told PTI.
The District Collector of Ahmedabad is in the process of earmarking 400 acres of land in Sanand, nearly 40 km from here, for Ford India, they said.
In reply to a query on announcement of manufacturing facility in Gujarat,Ford India in a statement said, "As part of our plan to introduce eight new products by the middle of the decade, Ford is expanding its capacities at its existing facility in Tamil Nadu as well as exploring other options."
In August last year, Ford had announced to launch eight new models in India by 2015 in a bid to tap the burgeoning domestic car market.
The introduction of the new vehicles would be part of the company's plan to bring more products from its global portfolio and other Asia Pacific and African markets.
The company has already invested USD 500 million to expand production capacity to two lakh units annually at its Chennai facility. It also has an engine manufacturing plant with an installed annual production capacity of 2.5 lakh units.
Ford India's proposed site is likely to be next to Tata Nano's plant in Sanand. The company currently has a manufacturing facility at Chennai.
"Ford has been in discussion with the government to set up its second car manufacturing plant at an investment of nearly Rs 5,000 crore. It has decided on a 400 acres of land at Sanand for the facility," the state government officials told PTI.
The District Collector of Ahmedabad is in the process of earmarking 400 acres of land in Sanand, nearly 40 km from here, for Ford India, they said.
In reply to a query on announcement of manufacturing facility in Gujarat,Ford India in a statement said, "As part of our plan to introduce eight new products by the middle of the decade, Ford is expanding its capacities at its existing facility in Tamil Nadu as well as exploring other options."
In August last year, Ford had announced to launch eight new models in India by 2015 in a bid to tap the burgeoning domestic car market.
The introduction of the new vehicles would be part of the company's plan to bring more products from its global portfolio and other Asia Pacific and African markets.
The company has already invested USD 500 million to expand production capacity to two lakh units annually at its Chennai facility. It also has an engine manufacturing plant with an installed annual production capacity of 2.5 lakh units.
Anshu Jain first non-European to head Deutsche Bank; becomes most powerful banker in Eurozone's largest economy
LONDON: Usually, when banks announce succession plans, a handful of Wall Street analysts sit up and pay attention.
But whenDeutsche Bank announced early on Tuesday thatAnshu Jain and Juergen Fitschen would become co-CEOs, with current chief executiveJoseph Ackerman taking over as chairman of the board, it came at the end of months, even years, of intense debate around the world, polarising opinion across cultural and national boundaries, between Wall Street and high street.
Anshu Jain becomes the first non-European to head up DB, and the first Indian among a handful of non-Europeans to head any large, listed European firm.
As head of Deutsche Bank, he becomes, simply, the mostpowerful banker in the Eurozone's largest economy. Jain is no stranger to power. The Jaipur-born, America-trained Jain is the darling of Wall Street, the City of London and DB's shareholders. He's got an enormous power base and is considered the best banker who's not a CEO in London, and one of the most influential globally.
It's no wonder that over the past few months, Jain has kept a low profile, shunning public appearances or media interviews, and quietly focused on keeping the profit counters ringing. During the time he has started to learn German.
It's widely understood that Jain will actually run the bank while Juergen Fitschen, who handles DB's German operations, will handle the political and corporate schmoozing, as well as DB's staff unions. Deutsche has a history of joint CEOs, a management system that hasn't worked well in other global companies. In this case though, Fitschen, who said he couldn't ask for a better partner than Jain, is due to retire in three years. The move is seen as giving Jain, 48, time to make himself acceptable to the natives.
Sections of the German media hailed Jain's appointment as proof that Germany is not, as is often portrayed by the US media, insular or anti-multicultural, or that theGerman government would have any problems with him.
Jain's middle-class origins and his record of hard work and academic brilliance seem to strike a chord with the Germans. Deutsche's supervisory board, which has struggled with the succession issue for years, had a peculiar problem.
On the one hand, it had the indisputably brilliant Jain. His credentials include catapulting DB from a stodgy German bank into the top global league tables in the 16 years he has slowly worked his way to the top. He's also delivered, year on year, the major chunk of the bank's profits, and managed to steer it safely, if not unscathed, through the financial crisis of 2008.
But whenDeutsche Bank announced early on Tuesday thatAnshu Jain and Juergen Fitschen would become co-CEOs, with current chief executiveJoseph Ackerman taking over as chairman of the board, it came at the end of months, even years, of intense debate around the world, polarising opinion across cultural and national boundaries, between Wall Street and high street.
Anshu Jain becomes the first non-European to head up DB, and the first Indian among a handful of non-Europeans to head any large, listed European firm.
As head of Deutsche Bank, he becomes, simply, the mostpowerful banker in the Eurozone's largest economy. Jain is no stranger to power. The Jaipur-born, America-trained Jain is the darling of Wall Street, the City of London and DB's shareholders. He's got an enormous power base and is considered the best banker who's not a CEO in London, and one of the most influential globally.
It's no wonder that over the past few months, Jain has kept a low profile, shunning public appearances or media interviews, and quietly focused on keeping the profit counters ringing. During the time he has started to learn German.
It's widely understood that Jain will actually run the bank while Juergen Fitschen, who handles DB's German operations, will handle the political and corporate schmoozing, as well as DB's staff unions. Deutsche has a history of joint CEOs, a management system that hasn't worked well in other global companies. In this case though, Fitschen, who said he couldn't ask for a better partner than Jain, is due to retire in three years. The move is seen as giving Jain, 48, time to make himself acceptable to the natives.
Sections of the German media hailed Jain's appointment as proof that Germany is not, as is often portrayed by the US media, insular or anti-multicultural, or that theGerman government would have any problems with him.
Jain's middle-class origins and his record of hard work and academic brilliance seem to strike a chord with the Germans. Deutsche's supervisory board, which has struggled with the succession issue for years, had a peculiar problem.
On the one hand, it had the indisputably brilliant Jain. His credentials include catapulting DB from a stodgy German bank into the top global league tables in the 16 years he has slowly worked his way to the top. He's also delivered, year on year, the major chunk of the bank's profits, and managed to steer it safely, if not unscathed, through the financial crisis of 2008.
Anshu Jain first non-European to head Deutsche Bank; becomes most powerful banker in Eurozone's largest economy
LONDON: Usually, when banks announce succession plans, a handful of Wall Street analysts sit up and pay attention.
But whenDeutsche Bank announced early on Tuesday thatAnshu Jain and Juergen Fitschen would become co-CEOs, with current chief executiveJoseph Ackerman taking over as chairman of the board, it came at the end of months, even years, of intense debate around the world, polarising opinion across cultural and national boundaries, between Wall Street and high street.
Anshu Jain becomes the first non-European to head up DB, and the first Indian among a handful of non-Europeans to head any large, listed European firm.
As head of Deutsche Bank, he becomes, simply, the mostpowerful banker in the Eurozone's largest economy. Jain is no stranger to power. The Jaipur-born, America-trained Jain is the darling of Wall Street, the City of London and DB's shareholders. He's got an enormous power base and is considered the best banker who's not a CEO in London, and one of the most influential globally.
It's no wonder that over the past few months, Jain has kept a low profile, shunning public appearances or media interviews, and quietly focused on keeping the profit counters ringing. During the time he has started to learn German.
It's widely understood that Jain will actually run the bank while Juergen Fitschen, who handles DB's German operations, will handle the political and corporate schmoozing, as well as DB's staff unions. Deutsche has a history of joint CEOs, a management system that hasn't worked well in other global companies. In this case though, Fitschen, who said he couldn't ask for a better partner than Jain, is due to retire in three years. The move is seen as giving Jain, 48, time to make himself acceptable to the natives.
Sections of the German media hailed Jain's appointment as proof that Germany is not, as is often portrayed by the US media, insular or anti-multicultural, or that theGerman government would have any problems with him.
Jain's middle-class origins and his record of hard work and academic brilliance seem to strike a chord with the Germans. Deutsche's supervisory board, which has struggled with the succession issue for years, had a peculiar problem.
On the one hand, it had the indisputably brilliant Jain. His credentials include catapulting DB from a stodgy German bank into the top global league tables in the 16 years he has slowly worked his way to the top. He's also delivered, year on year, the major chunk of the bank's profits, and managed to steer it safely, if not unscathed, through the financial crisis of 2008.
But whenDeutsche Bank announced early on Tuesday thatAnshu Jain and Juergen Fitschen would become co-CEOs, with current chief executiveJoseph Ackerman taking over as chairman of the board, it came at the end of months, even years, of intense debate around the world, polarising opinion across cultural and national boundaries, between Wall Street and high street.
Anshu Jain becomes the first non-European to head up DB, and the first Indian among a handful of non-Europeans to head any large, listed European firm.
As head of Deutsche Bank, he becomes, simply, the mostpowerful banker in the Eurozone's largest economy. Jain is no stranger to power. The Jaipur-born, America-trained Jain is the darling of Wall Street, the City of London and DB's shareholders. He's got an enormous power base and is considered the best banker who's not a CEO in London, and one of the most influential globally.
It's no wonder that over the past few months, Jain has kept a low profile, shunning public appearances or media interviews, and quietly focused on keeping the profit counters ringing. During the time he has started to learn German.
It's widely understood that Jain will actually run the bank while Juergen Fitschen, who handles DB's German operations, will handle the political and corporate schmoozing, as well as DB's staff unions. Deutsche has a history of joint CEOs, a management system that hasn't worked well in other global companies. In this case though, Fitschen, who said he couldn't ask for a better partner than Jain, is due to retire in three years. The move is seen as giving Jain, 48, time to make himself acceptable to the natives.
Sections of the German media hailed Jain's appointment as proof that Germany is not, as is often portrayed by the US media, insular or anti-multicultural, or that theGerman government would have any problems with him.
Jain's middle-class origins and his record of hard work and academic brilliance seem to strike a chord with the Germans. Deutsche's supervisory board, which has struggled with the succession issue for years, had a peculiar problem.
On the one hand, it had the indisputably brilliant Jain. His credentials include catapulting DB from a stodgy German bank into the top global league tables in the 16 years he has slowly worked his way to the top. He's also delivered, year on year, the major chunk of the bank's profits, and managed to steer it safely, if not unscathed, through the financial crisis of 2008.
Subscribe to:
Posts (Atom)