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
Success in my Habit
Tuesday, July 26, 2011
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.
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