NEW DELHI: Mumbai-based textile firm Mandhana Industries, which has the exclusive license for Salman Khan's 'Being Human' apparel range worldwide, has signed up with Dubai-based Landmark Group to sell the clothing line in Middle East from April this year.
Mandhana Industries that has rights to manufacture, distribute and retail 'Being Human' range of garments, is also in talks with retailers in Europe while it gets ready to open flagship stores for the brand in India by March this year.
"We have tied up with Landmark Group to retail 'Being Human' apparel at over 200 stores operated by Landmark under Iconic and Splash brands (in Middle East)," Mandhana Industries, Senior-Vice President Finance and Corporate Affairs Mitesh Shah told PTI.
The brand will be launched in the region by April this year but before that it will be launched in India, he added.
As a part of an agreement between Mandhana and Landmark, the range will be sold countries in the region, including UAE, Egypt, Bahrain, Saudi Arabia, Oman, Kuwait, Jordan, Lebanon and Qatar.
Commenting on other overseas plans, Shah said: "We are also engaged in discussions with few retailers in Europe and expect to launch the label in countries like France, Germany and UK within this year."
In India, the company had planned to launch the brand last year but after delays it is likely to take place by March this year.
"To begin with we plan to open 6-7 flagship stores in India which will be operated by Mandhana and we are also in talks with other retailers to sell the range," Shah added.
The Being Human Foundation is founded by Bollywood actor Salman Khan to uplift the underprivileged. Mandhana, on the other hand supplies textiles and garments to leading Indian and international apparel manufacturers and retailers.
Success in my Habit
Wednesday, January 25, 2012
Godrej Consumer plans to raise Rs 685 cr from Temasek
MUMBAI: Personal care products maker Godrej Consumer Ltd had decided to sell a 4.9% stake to Baytree Investments, an arm of Singapore-based investment firm Temasek, to raise Rs 685 crore for acquisitions and reduce debts.
Baytree will subscribe over 1.67 crore shares at Rs 410 a share on a preferential allotment basis, subject to the signing of a share subscription agreement and shareholders approval.
"The fund will be used for further acquisitions as well as reduce debt in the company," chairman Adi Godrej said on Saturday. "If we had to do QIP, there would have been significant cost. Hence, we chose the preferential allotment route," he said.
The fund raising plans followed after the maker of Cinthol and Goodknight announced on Saturday it will acquire 60 % stake in Latin America's Cosmetica Nacional, a hair care and cosmetics company for an undisclosed sum. However, the company said the deal is nine times the company's Ebitda of 20% and with its annual sales of 36 million, the deal size comes to roughly Rs 200 crore.
The Chilean firm, which owns brands such as Ilicit, U2 and Pamela Grant exports to over seven countries in the region and will serve as another distribution platform in Latin America. This is GCPL's third buy in Latin America after acquisition of Argencos and Issue two years ago. Godrej also said he continues to look for buys in Africa, Asia and Latin America.
"The acquisition will give the company a strong leadership position in the particular region. In addition, the fund raising plan will help them acquire more companies," said Anand Mour, senior analyst at Ambit Capital.
In the last four years, the Indian soaps, deodorants and hair colour maker has acquired nine firms including Indonesia's household care firm PT Megasari Makmur Group, Nigerian personal care company Tura and two South African haircare brands, Rapidol and Kinky.
Apart from acquisitions, GCPL also merged Godrej Household Products with itself and earned profits by selling Sara Lee's brands where it was a licensee. The company also announced its third quarter numbers posting a higher-than-estimated 41% rise in October-December quarter profit despite foreign exchange losses.
The company posted a net profit after minority interest of Rs 272 crore during the quarter. Its revenue rose 36% from a year ago to Rs 1,344 crore helped by global acquisitions and new product launches in domestic business.
The company incurred a foreign exchange loss of `6 crore compared with a forex loss of Rs 1 crore a year ago. Godrej Consumer had 20% sales growth in its domestic business on account of higher volume or consumer demand with net profit increase of 12%.
Baytree will subscribe over 1.67 crore shares at Rs 410 a share on a preferential allotment basis, subject to the signing of a share subscription agreement and shareholders approval.
"The fund will be used for further acquisitions as well as reduce debt in the company," chairman Adi Godrej said on Saturday. "If we had to do QIP, there would have been significant cost. Hence, we chose the preferential allotment route," he said.
The fund raising plans followed after the maker of Cinthol and Goodknight announced on Saturday it will acquire 60 % stake in Latin America's Cosmetica Nacional, a hair care and cosmetics company for an undisclosed sum. However, the company said the deal is nine times the company's Ebitda of 20% and with its annual sales of 36 million, the deal size comes to roughly Rs 200 crore.
The Chilean firm, which owns brands such as Ilicit, U2 and Pamela Grant exports to over seven countries in the region and will serve as another distribution platform in Latin America. This is GCPL's third buy in Latin America after acquisition of Argencos and Issue two years ago. Godrej also said he continues to look for buys in Africa, Asia and Latin America.
"The acquisition will give the company a strong leadership position in the particular region. In addition, the fund raising plan will help them acquire more companies," said Anand Mour, senior analyst at Ambit Capital.
In the last four years, the Indian soaps, deodorants and hair colour maker has acquired nine firms including Indonesia's household care firm PT Megasari Makmur Group, Nigerian personal care company Tura and two South African haircare brands, Rapidol and Kinky.
Apart from acquisitions, GCPL also merged Godrej Household Products with itself and earned profits by selling Sara Lee's brands where it was a licensee. The company also announced its third quarter numbers posting a higher-than-estimated 41% rise in October-December quarter profit despite foreign exchange losses.
The company posted a net profit after minority interest of Rs 272 crore during the quarter. Its revenue rose 36% from a year ago to Rs 1,344 crore helped by global acquisitions and new product launches in domestic business.
The company incurred a foreign exchange loss of `6 crore compared with a forex loss of Rs 1 crore a year ago. Godrej Consumer had 20% sales growth in its domestic business on account of higher volume or consumer demand with net profit increase of 12%.
ITC may invest up to Rs 1,000 cr in 4 years on FMCG business
NEW DELHI: Diversified business group ITC is understood to be gearing up to invest up to Rs 1,000 crore in the FMCG segment in the next four years which will include setting up new facilities and enhancing existing capacities.
According to UBS Investment Research, which had met the company's top management recently, ITC is planning to invest Rs 600 crore to Rs 1,000 crore in the next three years.
The Kolkata-based company did not confirm the figure but said it will invest in building state of the art manufacturing facilities, logistics as well as ramping up existing capacity.
"Given the rapid growth of the fast moving consumer goods segment in India which is expected to triple in size in the next 10 years, ITC is pursuing an aggressive investment led growth strategy,"ITC Executive Director Kurush Grant told PTI.
Without confirming how much the company plans to invest, Grant said ITC is investing heavily in technology and manufacturing, fixed assets, brand building, R&D, product development and consumer insights to build market standing.
"We will invest in building state of the art manufacturing facilities, logistics as well as ramping up existing capacity," he added.
The UBS Investment Research report, however, said "(ITC's) losses in other FMCG are coming down, but they (ITC management) warn that the new food businesses will involve higher investments; Rs600 crore to Rs 1,000 crore over the next 3-4 years."
Under the FMCG division, ITC sells branded packaged foods under the brands Bingo, Sunfeast and Yippee among others, personal care range like Vivel and Fiama di Wills apart from stationery products, cigarettes and lifestyle apparel.
Over the last few years company has rapidly scaled up its FMCG businesses and has entered in new categories over the last few years like instant noodles, pasta, biscuits among others. In the quarter ended December 31, 2011 its FMCG business registered a revenue of Rs 4,603.66 crore, witnessing a growth of 19 per cent over the previous fiscal.
"This expansion of the FMCG portfolio not only requires establishment of new manufacturing operations but also creation of efficient supply chain, enhancement of logistics infrastructure and efficient multiple distribution channels across multiple locations," Grant said.
According to UBS Investment Research, which had met the company's top management recently, ITC is planning to invest Rs 600 crore to Rs 1,000 crore in the next three years.
The Kolkata-based company did not confirm the figure but said it will invest in building state of the art manufacturing facilities, logistics as well as ramping up existing capacity.
"Given the rapid growth of the fast moving consumer goods segment in India which is expected to triple in size in the next 10 years, ITC is pursuing an aggressive investment led growth strategy,"ITC Executive Director Kurush Grant told PTI.
Without confirming how much the company plans to invest, Grant said ITC is investing heavily in technology and manufacturing, fixed assets, brand building, R&D, product development and consumer insights to build market standing.
"We will invest in building state of the art manufacturing facilities, logistics as well as ramping up existing capacity," he added.
The UBS Investment Research report, however, said "(ITC's) losses in other FMCG are coming down, but they (ITC management) warn that the new food businesses will involve higher investments; Rs600 crore to Rs 1,000 crore over the next 3-4 years."
Under the FMCG division, ITC sells branded packaged foods under the brands Bingo, Sunfeast and Yippee among others, personal care range like Vivel and Fiama di Wills apart from stationery products, cigarettes and lifestyle apparel.
Over the last few years company has rapidly scaled up its FMCG businesses and has entered in new categories over the last few years like instant noodles, pasta, biscuits among others. In the quarter ended December 31, 2011 its FMCG business registered a revenue of Rs 4,603.66 crore, witnessing a growth of 19 per cent over the previous fiscal.
"This expansion of the FMCG portfolio not only requires establishment of new manufacturing operations but also creation of efficient supply chain, enhancement of logistics infrastructure and efficient multiple distribution channels across multiple locations," Grant said.
Kelme to enter India, appoints Global Overseas as partner
NEW DELHI: Spanish sportswear and fashion brand Kelme is entering India through a licensing and distribution agreement with Global Overseas and plans to open up to 10 stores during the first year of operations.
"India has been a part of our international plan for the last 3-4 years. Now, we are entering India in partnership with Global Overseas through a licensing and distribution arrangement," Kelme Director International Business Luca Gios told reporters.
Ghaziabad headquartered Global Overseas is a part of the Singapore-based Sports Fashion (SF). Kelme is owned by New Millennium Sports that has tie up with SF for Asia Pacific region. Elaborating on the plans for the Indian market, where the government had recently allowed 100 foreign direct investment in single brand retail, he said: "In the first year we plan to open 7-10 stores in the country. The first one has been set up in Delhi."
Gios said the decision to partner a local firm despite the opportunity to do it on its own is a part of Kelme's global strategy.
"We follow distribution and licensing model worldwide. You have to think globally and act locally," he said.
The agreement with Global Overseas also covers local manufacturing, he said.
"We will also give license to our partner here to locally manufacture some of the products. Local production should start in the next two to three months," he said.
The brand is present in 45 countries worldwide. Established in 1977, Kelme was the equipment sponsor of the Spanish Olympic team in 1992 Barcelona Olympic Games. It was also the sponsor of the Real Madrid football club from 1994 to 1998.
"India has been a part of our international plan for the last 3-4 years. Now, we are entering India in partnership with Global Overseas through a licensing and distribution arrangement," Kelme Director International Business Luca Gios told reporters.
Ghaziabad headquartered Global Overseas is a part of the Singapore-based Sports Fashion (SF). Kelme is owned by New Millennium Sports that has tie up with SF for Asia Pacific region. Elaborating on the plans for the Indian market, where the government had recently allowed 100 foreign direct investment in single brand retail, he said: "In the first year we plan to open 7-10 stores in the country. The first one has been set up in Delhi."
Gios said the decision to partner a local firm despite the opportunity to do it on its own is a part of Kelme's global strategy.
"We follow distribution and licensing model worldwide. You have to think globally and act locally," he said.
The agreement with Global Overseas also covers local manufacturing, he said.
"We will also give license to our partner here to locally manufacture some of the products. Local production should start in the next two to three months," he said.
The brand is present in 45 countries worldwide. Established in 1977, Kelme was the equipment sponsor of the Spanish Olympic team in 1992 Barcelona Olympic Games. It was also the sponsor of the Real Madrid football club from 1994 to 1998.
Canali buys 51% stake in Genesis JV
NEW DELHI: Italian luxury brand Canali has picked up 51% stake to form a joint venture with its Indian franchise, Genesis Luxury Fashion, two persons familiar with the matter said.
Though Canali had the option to set up a wholly-owned subsidiary, following the government's decision last month to allow 100% foreign direct investment in single-brand retail, it has opted to stick to the previous ceiling.
A higher shareholding would have required it to mandatorily source 30% of its products from Indian small and medium enterprises, the persons quoted earlier explained.
Small and medium enterprises are defined as companies that have a total investment in plant and machinery not exceeding $1 million.
A Genesis Luxury Fashion spokesperson declined to comment on the JV plan, which is awaiting the government's clearance.
Canali is the first luxury brand to invest in India since the government removed the cap for foreign companies. Genesis, a franchise for several global luxury brands, has been operating five Canali stores in India - two in the National Capital Region, at the DLF Emporio Mall and at the Oberoi hotel in Gurgaon, and one each in Mumbai's Palladium mall, Hyderabad's Taj Krishna hotel and Bangalore's UB City mall.
"Canali is bullish about India and it might also venture into some of the smaller cities if good retail infrastructure comes up there," an industry expert, who works with various global luxury brands, said on condition of anonymity.
Global brands are increasingly eyeing India where the luxury market is growing at 20% a year and is expected to expand to $14.7 billion by 2015, from $5.8 billion, according to a recent report by CII and AT Kearney.
India has three million affluent households, defined as those with more than $100,000 (about Rs 50 lakh) of investable surplus, a global affluence study by research firm TNS said. The number of high net worth individuals, who have assets of $1 million or more, will more than double to 403,000 by 2015, Swiss wealth manager Julius Baer recently forecast.
Though Canali had the option to set up a wholly-owned subsidiary, following the government's decision last month to allow 100% foreign direct investment in single-brand retail, it has opted to stick to the previous ceiling.
A higher shareholding would have required it to mandatorily source 30% of its products from Indian small and medium enterprises, the persons quoted earlier explained.
Small and medium enterprises are defined as companies that have a total investment in plant and machinery not exceeding $1 million.
A Genesis Luxury Fashion spokesperson declined to comment on the JV plan, which is awaiting the government's clearance.
Canali is the first luxury brand to invest in India since the government removed the cap for foreign companies. Genesis, a franchise for several global luxury brands, has been operating five Canali stores in India - two in the National Capital Region, at the DLF Emporio Mall and at the Oberoi hotel in Gurgaon, and one each in Mumbai's Palladium mall, Hyderabad's Taj Krishna hotel and Bangalore's UB City mall.
"Canali is bullish about India and it might also venture into some of the smaller cities if good retail infrastructure comes up there," an industry expert, who works with various global luxury brands, said on condition of anonymity.
Global brands are increasingly eyeing India where the luxury market is growing at 20% a year and is expected to expand to $14.7 billion by 2015, from $5.8 billion, according to a recent report by CII and AT Kearney.
India has three million affluent households, defined as those with more than $100,000 (about Rs 50 lakh) of investable surplus, a global affluence study by research firm TNS said. The number of high net worth individuals, who have assets of $1 million or more, will more than double to 403,000 by 2015, Swiss wealth manager Julius Baer recently forecast.
LVMH co Sephora set for India foray
MUMBAI: French luxury goods conglomerate Moet Hennessy Louis Vuitton SA (LVMH) is likely to clinch a multi-brand retail deal with New Delhi-based Genesis Luxury Fashion, in which the former's private equity arm L Capital holds a significant minority stake. Genesis Luxury is expected to open doors for LVMH's subsidiary Sephora, a multi-brand beauty and personal care retailer, with a licensing deal as talks failed with other contenders like Reliance Retail and Parcos, said two separate sources familiar with the matter.
LVMH is finalizing plans for Sephora a little over a month after India deferred foreign direct investment (FDI) in multi-brand retail. The 20-billion-euro luxury group's discussion with Genesis also signals its deepening ties with the Indian company after L Capital last year picked up 25.5% equity in the Sanjay Kapoorowned firm, which operates single-brand stores Just Cavalli, Canali, Paul Smith and Jimmy Choo. LVMH has independent operations of its flagship Louis Vuitton stores in the country. When contacted by TOI, a spokesperson for Genesis Luxury Fashion declined comment on its partnership with LVMH to bring Sephora to India, adding they would talk about their plans in time.
Industry observers said Sephora's deal-making with Genesis would be innovative following the L Capital investment in the latter. L Capital is sponsored by LVMH and Groupe Arnault-the private holding company of business tycoon and LVMH chairman Bernard Arnault-managing assets worth over 900 million euros. The Sephora stores are likely to open by end of this year offering cosmetic, skin care, fragrance, bath and body, hair care across multiple brands. The retail chain also has a hugely popular private label brand in its name which is moderately priced as well as a strong online presence across markets. Sephora has over 1,200 stores globally.
LVMH has been scouting for a partner to unfurl its multibrand retail operations in India, and had held discussions with multiple suitors, including Reliance Retail, a part of India's largest private sector company Reliance Industries. One of the sources mentioned earlier said LVMH always seeks control over retail operations, and would have preferred Genesis given its existing investment ties. This would also provide the group enough flexibility to expand Sephora's India business.
Sephora and DFS (a dutyfree store chain) are the two multi-brand retail businesses of LVMH. The Paris-based group is betting big on the potential of its multi-brand channels in emerging markets like India. DFS has been in talks with the country's swanky new airports to start operations. The Indian beauty retail market is largely unorganized with department store chain such as Shoppers Stop and Lifestyle offering shop-in-shop outlets for most of the high-end brands operating in the segment. "The key challenges facing the industry are low consumer awareness, limited supply side push and product, infrastructure/retail channel availability. This is where a multi-brand outlet which offers a plethora of choices has a huge potential to succeed," said Neelesh Hundekari, principal at consulting firm AT Kearney.
An AT Kearney-CII report on the luxury market said the personal care segment in India is estimated at $280 million as of 2010 and growing at 22%. Typically, a female consumer dominated market in other countries, with a significant share of cosmetics and skin care, the Indian market stands out for its fragrance domination.
LVMH is finalizing plans for Sephora a little over a month after India deferred foreign direct investment (FDI) in multi-brand retail. The 20-billion-euro luxury group's discussion with Genesis also signals its deepening ties with the Indian company after L Capital last year picked up 25.5% equity in the Sanjay Kapoorowned firm, which operates single-brand stores Just Cavalli, Canali, Paul Smith and Jimmy Choo. LVMH has independent operations of its flagship Louis Vuitton stores in the country. When contacted by TOI, a spokesperson for Genesis Luxury Fashion declined comment on its partnership with LVMH to bring Sephora to India, adding they would talk about their plans in time.
Industry observers said Sephora's deal-making with Genesis would be innovative following the L Capital investment in the latter. L Capital is sponsored by LVMH and Groupe Arnault-the private holding company of business tycoon and LVMH chairman Bernard Arnault-managing assets worth over 900 million euros. The Sephora stores are likely to open by end of this year offering cosmetic, skin care, fragrance, bath and body, hair care across multiple brands. The retail chain also has a hugely popular private label brand in its name which is moderately priced as well as a strong online presence across markets. Sephora has over 1,200 stores globally.
LVMH has been scouting for a partner to unfurl its multibrand retail operations in India, and had held discussions with multiple suitors, including Reliance Retail, a part of India's largest private sector company Reliance Industries. One of the sources mentioned earlier said LVMH always seeks control over retail operations, and would have preferred Genesis given its existing investment ties. This would also provide the group enough flexibility to expand Sephora's India business.
Sephora and DFS (a dutyfree store chain) are the two multi-brand retail businesses of LVMH. The Paris-based group is betting big on the potential of its multi-brand channels in emerging markets like India. DFS has been in talks with the country's swanky new airports to start operations. The Indian beauty retail market is largely unorganized with department store chain such as Shoppers Stop and Lifestyle offering shop-in-shop outlets for most of the high-end brands operating in the segment. "The key challenges facing the industry are low consumer awareness, limited supply side push and product, infrastructure/retail channel availability. This is where a multi-brand outlet which offers a plethora of choices has a huge potential to succeed," said Neelesh Hundekari, principal at consulting firm AT Kearney.
An AT Kearney-CII report on the luxury market said the personal care segment in India is estimated at $280 million as of 2010 and growing at 22%. Typically, a female consumer dominated market in other countries, with a significant share of cosmetics and skin care, the Indian market stands out for its fragrance domination.
Tiffany's in talks with Reena Wadhwa for India entry
NEW DELHI: Iconic US jeweller Tiffany & Co is in talks to enter India through a 51% joint venture with actress-turned-luxury entrepreneur Reena Wadhwa, who already has a joint venture with Italian luxury brand Gucci, a person familiar with the negotiations said. "The deal is on the table now and could be signed soon," the person said.
Reena Wadhwa, who is married to investment banker and Ambit Group CEO Ashok Wadhwa, will float a new venture to run Tiffany's business, the person said.
Wadhwa confirmed she has been in talks with Tiffany's, but said nothing has been finalised. Tiffany & Co Vice President, Emerging Markets, Laurent Cathala said: "We have been pursuing discussions with potential partners and will announce the details of a business structure in India when we have finalised our plans and have signed the appropriate agreements."
Started as a stationery and fancy goods store in New York in 1837, Tiffany's is today the world's second-largest luxury jewellery retailer behind Chinese jeweller Chow Tai Fook, operating around 230 stores world over.
During its long history - Tiffany's will complete 175 years in September - the jeweller helped shape American culture including creating a design for the Union Army that would become baseball team New York Yankees' "NY" logo.
The company is fighting falling sales in the US and most European countries. During the festival season, better sales in Asian countries helped Tiffany's post a 7% rise in worldwide sales.
The company's management recently identified India as one of the key markets for the future. "We view India as an attractive long-term growth opportunity for Tiffany's," said Cathala, who heads Tiffany's emerging markets business, which covers the Middle East, Gulf countries, Europe, Africa, Turkey and India, and is based in Dubai.
Tiffany's is hoping to capture a pie of the country's $5.8-billion luxury market, which is expected to grow more than 20% a year to $14.7 billion by 2015.
Cathala is leading Tiffany's negotiations with Wadhwa being held out of Dubai, said the unnamed person quoted earlier.
Wadhwa had converted her company Luxury Goods Retail Pvt Ltd into a joint venture with Gucci in 2009, with the Italian firm holding 51% share. Gucci ended a franchisee deal with the Murjanis to form the joint venture.
A number of luxury brands have set sights on India as the luxury market is growing more than 20% a year. With the number of high net worth individuals increasing and aspiration levels of the young consumer class rising, the potential is big.
India has three million affluent households, defined as those with more than $100,000, or more than 50 lakh, of investable surplus, according to a global affluence study by research firm TNS.
The Indian government had recently allowed 100% foreign direct investment in single brand retail, but with a rider that retailers having more than 51% FDI will have to source at least 30% of their products from Indian small and medium enterprises, or those firms having invested not more than $1 million, or over 5 crore, in plant and machinery.
Sniffing an opportunity, real estate developers are expected to add more than one million sq ft of exclusive space for luxury retail over the next two-three years across the country.
Reena Wadhwa, who is married to investment banker and Ambit Group CEO Ashok Wadhwa, will float a new venture to run Tiffany's business, the person said.
Wadhwa confirmed she has been in talks with Tiffany's, but said nothing has been finalised. Tiffany & Co Vice President, Emerging Markets, Laurent Cathala said: "We have been pursuing discussions with potential partners and will announce the details of a business structure in India when we have finalised our plans and have signed the appropriate agreements."
Started as a stationery and fancy goods store in New York in 1837, Tiffany's is today the world's second-largest luxury jewellery retailer behind Chinese jeweller Chow Tai Fook, operating around 230 stores world over.
During its long history - Tiffany's will complete 175 years in September - the jeweller helped shape American culture including creating a design for the Union Army that would become baseball team New York Yankees' "NY" logo.
The company is fighting falling sales in the US and most European countries. During the festival season, better sales in Asian countries helped Tiffany's post a 7% rise in worldwide sales.
The company's management recently identified India as one of the key markets for the future. "We view India as an attractive long-term growth opportunity for Tiffany's," said Cathala, who heads Tiffany's emerging markets business, which covers the Middle East, Gulf countries, Europe, Africa, Turkey and India, and is based in Dubai.
Tiffany's is hoping to capture a pie of the country's $5.8-billion luxury market, which is expected to grow more than 20% a year to $14.7 billion by 2015.
Cathala is leading Tiffany's negotiations with Wadhwa being held out of Dubai, said the unnamed person quoted earlier.
Wadhwa had converted her company Luxury Goods Retail Pvt Ltd into a joint venture with Gucci in 2009, with the Italian firm holding 51% share. Gucci ended a franchisee deal with the Murjanis to form the joint venture.
A number of luxury brands have set sights on India as the luxury market is growing more than 20% a year. With the number of high net worth individuals increasing and aspiration levels of the young consumer class rising, the potential is big.
India has three million affluent households, defined as those with more than $100,000, or more than 50 lakh, of investable surplus, according to a global affluence study by research firm TNS.
The Indian government had recently allowed 100% foreign direct investment in single brand retail, but with a rider that retailers having more than 51% FDI will have to source at least 30% of their products from Indian small and medium enterprises, or those firms having invested not more than $1 million, or over 5 crore, in plant and machinery.
Sniffing an opportunity, real estate developers are expected to add more than one million sq ft of exclusive space for luxury retail over the next two-three years across the country.
Aditya Birla Nuvo contests tax liability
MUMBAI: Aditya Birla Nuvo, part of the $35 billion Aditya Birla Group, has filed a petition against the Income tax department over the tax liability of around Rs 8 crore.
The department had levied the tax demand on Aditya Birla Nuvo which the company termed as operational expenditure for constructing a road near one of their manufacturing plants. Since the plant is yet to start production, the tax authorities said the company can not claim exemption.
On Wednesday, a divisional bench comprising Justice JP Devdhar and Justice AR Joshi adjourned the case to next week. The $4 billion Aditya Birla Nuvo is a diversified conglomerate and is involved in the business of branded apparels, carbon black and viscose filament yarn. Senior counsel Atul Jasani is arguing the case on behalf of Aditya Birla Nuvo, while the income tax department is being represented by senior counsel Vimal Gupta.
Recently, the Bombay High Court had dismissed the plea filed by the Group's flagship, Hindalco Industries, which had challenged the department's contention that tax should be levied on corporate guarantees issued by the company.
The department had levied the tax demand on Aditya Birla Nuvo which the company termed as operational expenditure for constructing a road near one of their manufacturing plants. Since the plant is yet to start production, the tax authorities said the company can not claim exemption.
On Wednesday, a divisional bench comprising Justice JP Devdhar and Justice AR Joshi adjourned the case to next week. The $4 billion Aditya Birla Nuvo is a diversified conglomerate and is involved in the business of branded apparels, carbon black and viscose filament yarn. Senior counsel Atul Jasani is arguing the case on behalf of Aditya Birla Nuvo, while the income tax department is being represented by senior counsel Vimal Gupta.
Recently, the Bombay High Court had dismissed the plea filed by the Group's flagship, Hindalco Industries, which had challenged the department's contention that tax should be levied on corporate guarantees issued by the company.
Nokia, Tata and LG are most trusted brands in India
NEW DELHI: Nokia, Tata and LG are amongst most trusted brands in India, said a survey Tuesday.
The revelation was made by 'Brand Trust Report 2012' which lists India's 1,000 most trusted brands.
Nokia, Tata and LG were followed by Samsung, Sony, Maruti Suzuki, Bajaj, LIC and Airtel on the list of the most trusted brands.
"The research is conducted with 2,718 'influencer' respondents from 15 cities, generating more than two million data-points from 12,000 hours of research," Trust Research Advisory firm which conducted the survey said in a statement.
The survey also came out with 22 most trusted personalities, whose list anti-corruption crusader Anna Hazare topped, followed by Sachin Tendulkar, Salman Khan, Amitabh Bachchan and Aamir Khan.
Most trusted leaders in specific categories include Armani in branded fashion, DLF in construction, NIIT in education, ONGC in energy, PVR in entertainment, Pepsi in food and beverages (F&B) and Dabur in healthcare.
Other trusted brands included Taj Hotels in hospitality, Google in internet, ACC in manufacturing, Thomas Cook in services, Being Human in social sector, Hewlett Packard in technology, and Air India in airlines
The revelation was made by 'Brand Trust Report 2012' which lists India's 1,000 most trusted brands.
Nokia, Tata and LG were followed by Samsung, Sony, Maruti Suzuki, Bajaj, LIC and Airtel on the list of the most trusted brands.
"The research is conducted with 2,718 'influencer' respondents from 15 cities, generating more than two million data-points from 12,000 hours of research," Trust Research Advisory firm which conducted the survey said in a statement.
The survey also came out with 22 most trusted personalities, whose list anti-corruption crusader Anna Hazare topped, followed by Sachin Tendulkar, Salman Khan, Amitabh Bachchan and Aamir Khan.
Most trusted leaders in specific categories include Armani in branded fashion, DLF in construction, NIIT in education, ONGC in energy, PVR in entertainment, Pepsi in food and beverages (F&B) and Dabur in healthcare.
Other trusted brands included Taj Hotels in hospitality, Google in internet, ACC in manufacturing, Thomas Cook in services, Being Human in social sector, Hewlett Packard in technology, and Air India in airlines
Blue Star expects financials to take a hit in next two quarters
HYDERABAD: Blue Star, India's largest central air-conditioning company, anticipates its financials in the next two quarters to be affected by the downtrend in commercial construction activity.
According to B Thiagarajan, president (air-conditioning and refrigeration group) Blue Star, the company expects growth in its contracting business, which accounts for 40 per cent of the revenues, only after two years.
Contracting business involves air-conditioning of projects such as shopping malls, airports, and large office complexes.
The company suffered a net loss of Rs 11.01 crore in the half-year period in the current fiscal mainly on account of a lull in contracting business.
The company reported a net profit of Rs 75.79 crore in the corresponding period last fiscal.
According to the company, the electro mechanical projects and packaged air-conditioning business, accounting for 64 per cent of the total revenues in the second quarter, declined by 19 per cent while segment results fell sharply to a loss of Rs 3.41 crore as compared to a profit of Rs 43.37 crore during Q2 FY11.
"The cost overruns due to sudden collapse of construction activity. Some projects did not get closed. In the process we indeed incurred losses...Our forecast is contracting business will have tough time for the next couple of quarters and the growth we expect in the market will be only in 2014," Thiagarajan told media-persons at a press conference here today.
To a query, he said, the company will invest Rs 20 crore in advertisement and other promotional activities for this season and is mulling to hike product prices by 10 to 15 per cent for the ensuing summer season.
Blue Star which has a market share of 7.5 per cent in room air-conditioner market is aiming to reach 9 per cent share this year.
"We have improved our market share from 5.5 per cent to close to 7.5 per cent. We should move towards the 9 per cent range this year itself. That is our plan. We have hopes to improve our market share to even 15 per cent in the coming years," he said.
The company commands 30 per cent share in packaged air- conditioners market and 25 per cent in refrigeration and cold storage segment.
According to B Thiagarajan, president (air-conditioning and refrigeration group) Blue Star, the company expects growth in its contracting business, which accounts for 40 per cent of the revenues, only after two years.
Contracting business involves air-conditioning of projects such as shopping malls, airports, and large office complexes.
The company suffered a net loss of Rs 11.01 crore in the half-year period in the current fiscal mainly on account of a lull in contracting business.
The company reported a net profit of Rs 75.79 crore in the corresponding period last fiscal.
According to the company, the electro mechanical projects and packaged air-conditioning business, accounting for 64 per cent of the total revenues in the second quarter, declined by 19 per cent while segment results fell sharply to a loss of Rs 3.41 crore as compared to a profit of Rs 43.37 crore during Q2 FY11.
"The cost overruns due to sudden collapse of construction activity. Some projects did not get closed. In the process we indeed incurred losses...Our forecast is contracting business will have tough time for the next couple of quarters and the growth we expect in the market will be only in 2014," Thiagarajan told media-persons at a press conference here today.
To a query, he said, the company will invest Rs 20 crore in advertisement and other promotional activities for this season and is mulling to hike product prices by 10 to 15 per cent for the ensuing summer season.
Blue Star which has a market share of 7.5 per cent in room air-conditioner market is aiming to reach 9 per cent share this year.
"We have improved our market share from 5.5 per cent to close to 7.5 per cent. We should move towards the 9 per cent range this year itself. That is our plan. We have hopes to improve our market share to even 15 per cent in the coming years," he said.
The company commands 30 per cent share in packaged air- conditioners market and 25 per cent in refrigeration and cold storage segment.
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