NEW DELHI: After making a mark in almost all areas it has touched so far, diversified conglomerate Jaypee Group has now set its eyes on the dairy sector, where the growing demand-supply gap is only set to widen further.
The group, founded by Jaiprakash Gaur, initially plans to set up a one million litre per day milk processing plant near Mathura in Uttar Pradesh with an investment of Rs 100 crore.
Success in my Habit
Wednesday, April 20, 2011
Coca-Cola to take on Rasna at 5 price point
MUMBAI: Coca-Cola India is re-entering the Rs 300 crore branded powdered ready-to drink market after it pulled the plug on its Sunfill brand six years ago.
Interestingly, the global beverage maker has chosen the Rs 5 price point to make a comeback to the space dominated by home-grown brand Rasna. Coca-Cola will hitch a ride on its orange soft drink brand Fanta for its return. However, the company plans to test market the product before going pan-India.
India is the only market where the world's largest beverage maker is getting into the concentrate category with Fanta and only the fifth market where a powdered offering of any of its brands would be made available.
Confectionery maker Cadbury India , part of Kraft Foods , has also recently upped its ante with its Tang brand in this market. The orange flavour is also the largest segment in the powdered soft drink industry where Rasna controls over 90 % of the market.
Talking to TOI, Srinivas Murthy, director, marketing (flavours), Coca-Cola India, said, "We are targeting the consumer segment at the bottom of the socio-economic pyramid as we will introduce the product at an attractive price point. Even the retail touch points chosen for the product will be the traditional FMCG outlets where you do not need refrigeration to store the product the way it is for bottled soft-drinks."
Coca-Cola introduced the Sunfill brand in 2001 to take on Rasna but withdrew the product after four years. The company said it was ahead of the time then. After taking a timeoff, it now intends to use the learnings of its past venture for the launch of this new product-Fanta Fun Times. This was also the time when the 200 ml soft-drink used to be priced at Rs 5.
"The market wasn't ready then and the segment was yet to evolve to the level where a ready-to-drink as well as powdered offering for the same brand could exist," Murthy said. The company may look at launching more brands in this category if the script goes according to plan.
Fanta has 9% share of the Rs 9,000 crore soft drink market and stacks up below Thums Up, Coca-Cola and Sprite in the Cola-Cola portfolio. Along with rival PepsiCo's Mirinda, the orange flavoured drinks have a combined market share of 15%.
Coca-Cola is globally present in the powdered beverage market with brands like Eight O' Clock juice and juice drink in Philippines and the Sunfill brand in Hong Kong, Kenya and the US.
The Rs 5 entry level price point was first introduced by soft drinks makers in early 2000 but was raised to Rs 8-9 a few years later as it put strain on their bottomlines.
"For FMCG companies, these lowunit packs have been used as a strategy to build the brand appeal. They act like brand ambassadors even as they contribute a major chunk of volume sales," said Harish Bijoor, a brand consultant. The Rs 5 entry price point has been traditionally used by pure play FMCG companies to penetrate households in the lower income group seen as a large opportunity for marketers. Categories such as tea, shampoo, biscuits, chips, soaps have proved commercially viable for companies.
Interestingly, the global beverage maker has chosen the Rs 5 price point to make a comeback to the space dominated by home-grown brand Rasna. Coca-Cola will hitch a ride on its orange soft drink brand Fanta for its return. However, the company plans to test market the product before going pan-India.
India is the only market where the world's largest beverage maker is getting into the concentrate category with Fanta and only the fifth market where a powdered offering of any of its brands would be made available.
Confectionery maker Cadbury India , part of Kraft Foods , has also recently upped its ante with its Tang brand in this market. The orange flavour is also the largest segment in the powdered soft drink industry where Rasna controls over 90 % of the market.
Talking to TOI, Srinivas Murthy, director, marketing (flavours), Coca-Cola India, said, "We are targeting the consumer segment at the bottom of the socio-economic pyramid as we will introduce the product at an attractive price point. Even the retail touch points chosen for the product will be the traditional FMCG outlets where you do not need refrigeration to store the product the way it is for bottled soft-drinks."
Coca-Cola introduced the Sunfill brand in 2001 to take on Rasna but withdrew the product after four years. The company said it was ahead of the time then. After taking a timeoff, it now intends to use the learnings of its past venture for the launch of this new product-Fanta Fun Times. This was also the time when the 200 ml soft-drink used to be priced at Rs 5.
"The market wasn't ready then and the segment was yet to evolve to the level where a ready-to-drink as well as powdered offering for the same brand could exist," Murthy said. The company may look at launching more brands in this category if the script goes according to plan.
Fanta has 9% share of the Rs 9,000 crore soft drink market and stacks up below Thums Up, Coca-Cola and Sprite in the Cola-Cola portfolio. Along with rival PepsiCo's Mirinda, the orange flavoured drinks have a combined market share of 15%.
Coca-Cola is globally present in the powdered beverage market with brands like Eight O' Clock juice and juice drink in Philippines and the Sunfill brand in Hong Kong, Kenya and the US.
The Rs 5 entry level price point was first introduced by soft drinks makers in early 2000 but was raised to Rs 8-9 a few years later as it put strain on their bottomlines.
"For FMCG companies, these lowunit packs have been used as a strategy to build the brand appeal. They act like brand ambassadors even as they contribute a major chunk of volume sales," said Harish Bijoor, a brand consultant. The Rs 5 entry price point has been traditionally used by pure play FMCG companies to penetrate households in the lower income group seen as a large opportunity for marketers. Categories such as tea, shampoo, biscuits, chips, soaps have proved commercially viable for companies.
Henkel AG set to sell off stake to Jyothy
NEW DELHI: German firm Henkel AG will sell its entire stake in Henkel India to Jyothy Laboratories , maker of Ujala fabric whitener, in a rare instance of a local firm buying out an international brand in India.
Henkel AG's board last week approved the sale of its 50.97% stake in its Indian arm to Jyothy, two officials in direct knowledge of the development told ET.
"The legal formalities and due diligence of the deal are on and a formal announcement is expected within the next couple of weeks," one of them said on condition of anonymity.
The officials said the sale will be at substantial discount to Henkel's current market price.
The negotiated price is speculated to be 50% cheaper than what Jyothy last month paid Tamil Nadu Petro Products for its 14.9% stake in Henkel India. That deal was for about Rs 60.7 crore, at a discounted Rs 35 per share.
An email sent to Henkel AG on the matter remained unanswered till the time of going to press. Top Jyothy officials too declined comment on the development.
It is not yet certain if Henkel will license its global brands such as Fa, Pril and Bref to different owners. Henkel brands have been losing share and accumulating losses in the country.
Analysts tracking the sector say Jyothy Labs' buy is unlikely to spur a revival of Henkel's brands in the short term.
"Even at a discounted price, Jyothy will find it tough competing with players like Hindustan Unilever and P&G in the detergents space (with Henko)," an analyst at a leading Mumbai-based brokerage house said. "The Rs 445-crore Jyothy, which has extended its Ujala brand to detergents, too, hasn't been able to make a dent in market share of the big players," the person said, requesting anonymity.
A Mumbai-based investment banker said that Jyothy will stop being a debt-free company after the deal since Henkel has Rs 520 crore debt on its books. "This may impact the financial performance of the firm," the person added.
Besides declining market share, Henkel's sales in calendar year 2010 dropped 10% to Rs 534 crore.
Meanwhile, Jyothy is learnt to have got a line of credit for about Rs 600 crore from ICICI Bank in expectation of the buyout. Jyothy has Rs 210 crore of cash and it raised Rs 228 crore through qualified institutional placements last year.
Henkel and Jyothy have overlapping portfolios in categories such as fabric care and dish wash.
Henkel's brand basket includes Henko, Mr White and Chek detergents, Pril and Bref household cleaners, Margo soaps, Fa deodorants and Neem toothpaste. Jyothy's key brands are Ujala fabric whitener, Maxo household insecticide, and Exo dish wash.
The deal marks a phase of consolidation in the Indian FMCG space, as companies have been looking for buyouts, both in local and international markets. Last year, British firm Reckitt Benckiser bought Paras Pharmaceuticals, maker of Moov, Krack and DermiCool brands, for Rs 3,260 crore.
And Parachute maker Marico sold off its Sweekar edible oils brand to Cargill India last month.
In February this year, Henkel India's German parent Henkel AG had mandated HSBC to divest its assets across personal care, laundry and home care categories.
While Emami, Wipro and Dabur initially expressed interest in Henkel's brands, they later pulled out.
Henkel AG's board last week approved the sale of its 50.97% stake in its Indian arm to Jyothy, two officials in direct knowledge of the development told ET.
"The legal formalities and due diligence of the deal are on and a formal announcement is expected within the next couple of weeks," one of them said on condition of anonymity.
The officials said the sale will be at substantial discount to Henkel's current market price.
The negotiated price is speculated to be 50% cheaper than what Jyothy last month paid Tamil Nadu Petro Products for its 14.9% stake in Henkel India. That deal was for about Rs 60.7 crore, at a discounted Rs 35 per share.
An email sent to Henkel AG on the matter remained unanswered till the time of going to press. Top Jyothy officials too declined comment on the development.
It is not yet certain if Henkel will license its global brands such as Fa, Pril and Bref to different owners. Henkel brands have been losing share and accumulating losses in the country.
Analysts tracking the sector say Jyothy Labs' buy is unlikely to spur a revival of Henkel's brands in the short term.
"Even at a discounted price, Jyothy will find it tough competing with players like Hindustan Unilever and P&G in the detergents space (with Henko)," an analyst at a leading Mumbai-based brokerage house said. "The Rs 445-crore Jyothy, which has extended its Ujala brand to detergents, too, hasn't been able to make a dent in market share of the big players," the person said, requesting anonymity.
A Mumbai-based investment banker said that Jyothy will stop being a debt-free company after the deal since Henkel has Rs 520 crore debt on its books. "This may impact the financial performance of the firm," the person added.
Besides declining market share, Henkel's sales in calendar year 2010 dropped 10% to Rs 534 crore.
Meanwhile, Jyothy is learnt to have got a line of credit for about Rs 600 crore from ICICI Bank in expectation of the buyout. Jyothy has Rs 210 crore of cash and it raised Rs 228 crore through qualified institutional placements last year.
Henkel and Jyothy have overlapping portfolios in categories such as fabric care and dish wash.
Henkel's brand basket includes Henko, Mr White and Chek detergents, Pril and Bref household cleaners, Margo soaps, Fa deodorants and Neem toothpaste. Jyothy's key brands are Ujala fabric whitener, Maxo household insecticide, and Exo dish wash.
The deal marks a phase of consolidation in the Indian FMCG space, as companies have been looking for buyouts, both in local and international markets. Last year, British firm Reckitt Benckiser bought Paras Pharmaceuticals, maker of Moov, Krack and DermiCool brands, for Rs 3,260 crore.
And Parachute maker Marico sold off its Sweekar edible oils brand to Cargill India last month.
In February this year, Henkel India's German parent Henkel AG had mandated HSBC to divest its assets across personal care, laundry and home care categories.
While Emami, Wipro and Dabur initially expressed interest in Henkel's brands, they later pulled out.
Reliance Trends to launch 'Spinner by Shane Warne' in India
MUMBAI: Mukesh Ambani-led Reliance Retail's fashion apparel business--Reliance Trends--has tied- up with Australian firm lime door brands ( LMB )) to launch 'Spinner by Shane Warne' a lifestyle and sportswear collection, in the India . market.
Designed by cricketing sensation Shane Warne , the brand was created in 2009 along with local brand strategist Michele Hamdorf of lime door brands, which owns a major stake in the sports and fashion brand.
" Reliance Trends is privileged to be an exclusive partner of 'Spinners by Shane Warne' in India. We are very confident that this brand will be well-received in the Indian retail market. With cricket in the air, we believe the brand will be a great offering for our cricket-loving nation. Spinners will available at all Reliance Trends stores," Reliance Trends' CEO, Arun Sirdeshmukh, said in a statement here.
Reliance Retail is a subsidiary of Mukesh Ambani-run Reliance Industries Limited.
"Reliance Trends has a strong reputation in the global retail sector for being a progressive, growing company. It is fashion-led and value-driven with superior capabilities, including its efficiency in delivering product to market," lime door brand's CEO, Michele Hamdorf, said.
Designed by cricketing sensation Shane Warne , the brand was created in 2009 along with local brand strategist Michele Hamdorf of lime door brands, which owns a major stake in the sports and fashion brand.
" Reliance Trends is privileged to be an exclusive partner of 'Spinners by Shane Warne' in India. We are very confident that this brand will be well-received in the Indian retail market. With cricket in the air, we believe the brand will be a great offering for our cricket-loving nation. Spinners will available at all Reliance Trends stores," Reliance Trends' CEO, Arun Sirdeshmukh, said in a statement here.
Reliance Retail is a subsidiary of Mukesh Ambani-run Reliance Industries Limited.
"Reliance Trends has a strong reputation in the global retail sector for being a progressive, growing company. It is fashion-led and value-driven with superior capabilities, including its efficiency in delivering product to market," lime door brand's CEO, Michele Hamdorf, said.
Canon India to spend Rs 100 cr on advertisement this year
NEW DELHI: Digital imaging firm Canon India on Tuesday said it has earmarked Rs 100 crore for various marketing and promotional activities this year.
"Canon is undertaking various innovative marketing strategies and plans to invest approximately Rs 100 crore for advertising this year," the company said in a statement.
The company, which today announced the launch of 29 digital imaging products, said it plans to expand its customer base to five million people from one million this year.
"While last year, we acquired one million customers, we are aiming to acquire two million customers in 2011 to reach a customer base of five million," Canon India Senior Vice President Alok Bharadwaj said.
Besides, the company is also gearing up to launch its new television commercial featuring cricket icon and its brand ambassador Sachin Tendulkar on April 25, 2011.
The company today launched seven new entry-level digital cameras in the sub - Rs 10,000 category, besides it also unveiled six compact cameras from the PowerShot range, three lifestyle cameras from its IXUS range, six HD Camcorder, two Digital SLR from the EOS range among others.
"Canon is undertaking various innovative marketing strategies and plans to invest approximately Rs 100 crore for advertising this year," the company said in a statement.
The company, which today announced the launch of 29 digital imaging products, said it plans to expand its customer base to five million people from one million this year.
"While last year, we acquired one million customers, we are aiming to acquire two million customers in 2011 to reach a customer base of five million," Canon India Senior Vice President Alok Bharadwaj said.
Besides, the company is also gearing up to launch its new television commercial featuring cricket icon and its brand ambassador Sachin Tendulkar on April 25, 2011.
The company today launched seven new entry-level digital cameras in the sub - Rs 10,000 category, besides it also unveiled six compact cameras from the PowerShot range, three lifestyle cameras from its IXUS range, six HD Camcorder, two Digital SLR from the EOS range among others.
Panasonic eyeing 65% jump in revenue from India in FY 12
MUMBAI: Japanese consumer durables major Panasonic is targeting a nearly 65 per cent jump in revenue from ts India operations in FY 12 to Rs 9,000 crore, a top company executive said today.
"We are aiming to achieve 200-billion yen (Rs 9,000 crore) in sales in India by fiscal 2012. Going forward, we will certainly continue to make our best efforts in India," Panasonic President Fumio Ohtsubo told reporters here.
The company''s head of marketing in India, Manish Sharma, said they will be focusing on product differentiation from competitors, developing India-specific products which cater to domestic needs and communicating in the right way to achieve the targeted Rs 9,000-crore revenues.
"200 billion yen or $2 billion is stiff but definitely achievable," he told PTI.
Panasonic India is currently in the midst of executing a Rs 1,400-crore capex programme, which includes investment in a manufacturing plant at Haryana''s Jhajjar which also has a dedicated R&D facility, Sharma said, stressing that products like an air-conditioner and LCD, which were designed for Indian market, have been met with good response.
Panasonic today launched a new range of smart television, VIERA, which has Internet surfing capabilities.
Sharma said Panasonic''s TV line, which comprises LCD TVs, high definition TVs and 3D TVs, should account for 15 per cent of the 4.5-million TV set sales by end-FY 12.
"We are aiming to achieve 200-billion yen (Rs 9,000 crore) in sales in India by fiscal 2012. Going forward, we will certainly continue to make our best efforts in India," Panasonic President Fumio Ohtsubo told reporters here.
The company''s head of marketing in India, Manish Sharma, said they will be focusing on product differentiation from competitors, developing India-specific products which cater to domestic needs and communicating in the right way to achieve the targeted Rs 9,000-crore revenues.
"200 billion yen or $2 billion is stiff but definitely achievable," he told PTI.
Panasonic India is currently in the midst of executing a Rs 1,400-crore capex programme, which includes investment in a manufacturing plant at Haryana''s Jhajjar which also has a dedicated R&D facility, Sharma said, stressing that products like an air-conditioner and LCD, which were designed for Indian market, have been met with good response.
Panasonic today launched a new range of smart television, VIERA, which has Internet surfing capabilities.
Sharma said Panasonic''s TV line, which comprises LCD TVs, high definition TVs and 3D TVs, should account for 15 per cent of the 4.5-million TV set sales by end-FY 12.
Samsung eyes $4.9 bn sales in India, launches 60 new items
NEW DELHI: Korean consumer durables major Samsung on Wednesday introduced 60 new products across all categories in India with an eye on achieving a 40 per cent jump in sales to $4.9 billion in the country by year-end.
The company also said it is expanding its portfolio across all categories with special focus on pushing products with more advanced technologies, such as smart TVs, 3D televisions, Blu-ray players and its Galaxy Tabs.
"We expect a growth of 40 per cent in sales this year in India. This will be over $3.5 billion, which we did last year," Samsung West Asia Operations President and CEO Jung Soo Shin told reporters here. The strategy for the region is to strengthen market leadership while identifying new opportunities, he added.
Samsung today introduced around 35 new models of television, expanding its 3D range. It also introduced advanced version of Galaxy Tab, which it is planning to introduce in June this year. Besides it has brought a new range of cameras, refrigerator and washing machine among others totaling to 60 new products.
"Definitely our focus will be on this smart categories across all our product range. We want to leverage on the smart technology and drive our growth in future," Samsung India Deputy Managing Director Ravinder Zutshi said.
With more products being introduced, Shin, who is also President and CEO of Samsung India, said the company "will establish an optimum distribution network and additional emphasize on our flagship products and customer marketing activities".
Asked about the company's budget on marketing the new range this year, Zutshi said every year Samsung India spends around 3-4 per cent of the total revenue various marketing initiatives.
"3-4 per cent of our revenue goes on marketing our products. We are already doing a lot of work on promoting our smart products in the electronics and appliances category. we will continue to do more," he said.
The company also said it is expanding its portfolio across all categories with special focus on pushing products with more advanced technologies, such as smart TVs, 3D televisions, Blu-ray players and its Galaxy Tabs.
"We expect a growth of 40 per cent in sales this year in India. This will be over $3.5 billion, which we did last year," Samsung West Asia Operations President and CEO Jung Soo Shin told reporters here. The strategy for the region is to strengthen market leadership while identifying new opportunities, he added.
Samsung today introduced around 35 new models of television, expanding its 3D range. It also introduced advanced version of Galaxy Tab, which it is planning to introduce in June this year. Besides it has brought a new range of cameras, refrigerator and washing machine among others totaling to 60 new products.
"Definitely our focus will be on this smart categories across all our product range. We want to leverage on the smart technology and drive our growth in future," Samsung India Deputy Managing Director Ravinder Zutshi said.
With more products being introduced, Shin, who is also President and CEO of Samsung India, said the company "will establish an optimum distribution network and additional emphasize on our flagship products and customer marketing activities".
Asked about the company's budget on marketing the new range this year, Zutshi said every year Samsung India spends around 3-4 per cent of the total revenue various marketing initiatives.
"3-4 per cent of our revenue goes on marketing our products. We are already doing a lot of work on promoting our smart products in the electronics and appliances category. we will continue to do more," he said.
HSIL eyes acquisitions valued at up to Rs 400 cr
NEW DELHI: Sanitary ware and bathroom equipment maker HSIL today said it is eyeing acquisitions, which could be worth Rs 80 crore to Rs 400 crore to strengthen business.
The firm, which has undertaken an image makeover of its 'Hindware' brand for a more youthful look, however, did not specify if the acquisitions would be in domestic or international markets.
"We continue to look for potential targets to make acquisitions in the segments such as sanitary ware, bathroom equipments and kitchen appliances. We would typically at an acquisition size of Rs 80 crore to Rs 400 crore," HSIL Joint Managing Director Sandip Somany told PTI.
Without giving details on potential targets and timeline, he said the company was financially capable of making an acquisition. "We have a healthy balance sheet and can also raise debt as and when required," Somany said.
Last year HSIL had acquired bathroom fittings and accessories business of Havells India in an all cash deal of Rs 17 crore and a UK-based sanitary ware company called Barwood Products Ltd for one million pounds.
HSIL has also announced a change in the logo of its brand 'Hindware' with an intention to position it as a youthful brand.
Somany said after 20 years, the company has decided to change the look and feel of its brand logo and will invest up to Rs 30 crore in the current fiscal on marketing and promotion.
The red colour logo in a new font has been developed by UK-based design firm Fitch, a part of global advertising and media services agency WPP.
Meanwhile, the company is currently working on expanding production capacity.
"The company has a plan to invest Rs 650 crore to set up a new sanitary ware manufacturing unit in Gujarat along with with a new unit in Rajasthan for making taps and another unit in Andhra Pradesh for container glass," Somany said.
Following the expansion, the glass bottles capacity will increase from 1,050 metric tonnes per day (MTD) to 1,500 MTD, sanitary ware production capacity will be expanded to 5 million pieces per annum from 2.8 million pieces.
Besides, chrome plated bath fittings production capacity will also be hiked to 25 lakh units every year from the current three lakh units per annum.
HSIL is also expanding the chain of 'Evok' retail stores that offer interiors solutions in living, kitchen and bath domains.
Evok stores are operated by HSIL's wholly-owned subsidiary Hindware Home Retail Pvt Ltd.
"Currently we have eight Evok stores up and running and we have plans to open up to eight new stores every year. In the next two-and-a-half years, we will invest Rs 150 crore on retail expansion," Somany added.
The firm, which has undertaken an image makeover of its 'Hindware' brand for a more youthful look, however, did not specify if the acquisitions would be in domestic or international markets.
"We continue to look for potential targets to make acquisitions in the segments such as sanitary ware, bathroom equipments and kitchen appliances. We would typically at an acquisition size of Rs 80 crore to Rs 400 crore," HSIL Joint Managing Director Sandip Somany told PTI.
Without giving details on potential targets and timeline, he said the company was financially capable of making an acquisition. "We have a healthy balance sheet and can also raise debt as and when required," Somany said.
Last year HSIL had acquired bathroom fittings and accessories business of Havells India in an all cash deal of Rs 17 crore and a UK-based sanitary ware company called Barwood Products Ltd for one million pounds.
HSIL has also announced a change in the logo of its brand 'Hindware' with an intention to position it as a youthful brand.
Somany said after 20 years, the company has decided to change the look and feel of its brand logo and will invest up to Rs 30 crore in the current fiscal on marketing and promotion.
The red colour logo in a new font has been developed by UK-based design firm Fitch, a part of global advertising and media services agency WPP.
Meanwhile, the company is currently working on expanding production capacity.
"The company has a plan to invest Rs 650 crore to set up a new sanitary ware manufacturing unit in Gujarat along with with a new unit in Rajasthan for making taps and another unit in Andhra Pradesh for container glass," Somany said.
Following the expansion, the glass bottles capacity will increase from 1,050 metric tonnes per day (MTD) to 1,500 MTD, sanitary ware production capacity will be expanded to 5 million pieces per annum from 2.8 million pieces.
Besides, chrome plated bath fittings production capacity will also be hiked to 25 lakh units every year from the current three lakh units per annum.
HSIL is also expanding the chain of 'Evok' retail stores that offer interiors solutions in living, kitchen and bath domains.
Evok stores are operated by HSIL's wholly-owned subsidiary Hindware Home Retail Pvt Ltd.
"Currently we have eight Evok stores up and running and we have plans to open up to eight new stores every year. In the next two-and-a-half years, we will invest Rs 150 crore on retail expansion," Somany added.
Mukesh Ambani plans big for financial business, non-traditional way
NEW DELHI: Billionaire industrialist Mukesh Ambani-led Reliance Industries group is planning a big splash in financial services sector, but may take a path different than those adopted traditionally in the business of money.
RIL signed a joint venture with global private equity fund house DE Shaw late last month for its financial sector foray and is now considering businesses where it can utilise its expertise and presence in sectors like energy and retail, as also its proposed telecom and power ventures.
The businesses that RIL wishes to undertake with DE Shaw include energy trading, private equity, mutual fund, financial service distribution, infrastructure funding as also equity and debt funding for corporate sector, sources close to the development said.
Emailed queries sent to both DE Shaw and RIL in this regard remained unanswered.
The final contours of its partnership with DE Shaw, such as the shareholding pattern and businesses to undertake, may be discussed at RIL's next board meeting on April 21.
Besides DE Shaw, RIL would also look at a number of other partners for various specific financial service businesses, as it has done in its retail business and to some extent in its energy operations, sources said.
The group would look at serving both corporate and individual customers with an equal focus through its various financial services offerings, they added.
RIL has been working on its financial sector foray for about a year now and a final blueprint on this front may be finalised in next couple of months to enable Ambani to announce the details at the company's AGM later this year.
Between the two Ambani brothers, financial services hitherto have been the domain of younger sibling Anil Ambani, but abolition of their non-compete agreement last year paved the way for Mukesh to pursue this business.
However, the groups led by two brothers may still keep away from any direct competition in their various businesses in this space, at least for initial period, sources said.
RIL, and especially its chief, is known for expertise in in establishing ultra-high value projects in whatever businesses they intend to undertake and financial services would not be any different on that front, sources said.
A mega business plan is being worked out for the Reliance Industries group's entry into financial services sector, but it would be different from the traditional banking and financial businesses, at least in the beginning, they added.
RIL signed a joint venture with global private equity fund house DE Shaw late last month for its financial sector foray and is now considering businesses where it can utilise its expertise and presence in sectors like energy and retail, as also its proposed telecom and power ventures.
The businesses that RIL wishes to undertake with DE Shaw include energy trading, private equity, mutual fund, financial service distribution, infrastructure funding as also equity and debt funding for corporate sector, sources close to the development said.
Emailed queries sent to both DE Shaw and RIL in this regard remained unanswered.
The final contours of its partnership with DE Shaw, such as the shareholding pattern and businesses to undertake, may be discussed at RIL's next board meeting on April 21.
Besides DE Shaw, RIL would also look at a number of other partners for various specific financial service businesses, as it has done in its retail business and to some extent in its energy operations, sources said.
The group would look at serving both corporate and individual customers with an equal focus through its various financial services offerings, they added.
RIL has been working on its financial sector foray for about a year now and a final blueprint on this front may be finalised in next couple of months to enable Ambani to announce the details at the company's AGM later this year.
Between the two Ambani brothers, financial services hitherto have been the domain of younger sibling Anil Ambani, but abolition of their non-compete agreement last year paved the way for Mukesh to pursue this business.
However, the groups led by two brothers may still keep away from any direct competition in their various businesses in this space, at least for initial period, sources said.
RIL, and especially its chief, is known for expertise in in establishing ultra-high value projects in whatever businesses they intend to undertake and financial services would not be any different on that front, sources said.
A mega business plan is being worked out for the Reliance Industries group's entry into financial services sector, but it would be different from the traditional banking and financial businesses, at least in the beginning, they added.
Anand Automotive Group aims $ 2 billion sales by 2014
NEW DELHI: Auto component maker Anand Automotive Group today said it targets a sales turnover of $ 2 billion (about Rs 10,000 crore) by 2014 and will invest up to Rs 1,500 crore in the next five years for expansion.
"With the largest range of automotive components, the group recorded sales turnover of $ 700 million in 2009, with a target to achieve $ 2 billion by 2014," Anand Automotive Director K C Anand said in a statement.
The group has an investment plan of between Rs 1,300 crore and Rs 1,500 crore in the next five years for new plants, joint ventures in the automotive sector and capacity building in existing plants, he added.
The Group's company, Mahle Filter Systems, announced commencement of a new manufacturing unit at Parwanoo in Himachal Pradesh to make filters, which is expected to generate turnover of Rs 25 crore this year.
"The plant went into production on March 19, 2010 and will generate annual revenue of Rs 25 crore this year. The proposed installed capacity of the plant is expected to be 22 million filters per annum," Mahle Filter Systems COO Sunil Nair said.
Mahle Filter Systems, a joint venture between Mahle Group of Germany and Anand Automotive Group caters to leading automotive makers including Ashok Leyland , Tata Motors , Mahindra & Mahindra , General Motors and Bosch .
Besides supplying to the existing customers, the new unit will also cater to the requirements of the replacement market in India and for exports, the statement said.
The Group comprises 19 companies with 44 business units spread in eight states across the country, according to its website.
It currently employs 8,000 people and aims to provide 13,000 jobs in 2014, the statement added.
"With the largest range of automotive components, the group recorded sales turnover of $ 700 million in 2009, with a target to achieve $ 2 billion by 2014," Anand Automotive Director K C Anand said in a statement.
The group has an investment plan of between Rs 1,300 crore and Rs 1,500 crore in the next five years for new plants, joint ventures in the automotive sector and capacity building in existing plants, he added.
The Group's company, Mahle Filter Systems, announced commencement of a new manufacturing unit at Parwanoo in Himachal Pradesh to make filters, which is expected to generate turnover of Rs 25 crore this year.
"The plant went into production on March 19, 2010 and will generate annual revenue of Rs 25 crore this year. The proposed installed capacity of the plant is expected to be 22 million filters per annum," Mahle Filter Systems COO Sunil Nair said.
Mahle Filter Systems, a joint venture between Mahle Group of Germany and Anand Automotive Group caters to leading automotive makers including Ashok Leyland , Tata Motors , Mahindra & Mahindra , General Motors and Bosch .
Besides supplying to the existing customers, the new unit will also cater to the requirements of the replacement market in India and for exports, the statement said.
The Group comprises 19 companies with 44 business units spread in eight states across the country, according to its website.
It currently employs 8,000 people and aims to provide 13,000 jobs in 2014, the statement added.
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