MUMBAI: Mukesh Ambani-led Reliance Brands today said it has signed an exclusive agreement to sell French major Louis Vuitton Moet Hennessy's brand Thomas Pink's shirt collection in the country.
Louis Vuitton Moet Hennessy (LVMH) had acquired the British brand Thomas Pink in 1999, and it will hawk a range of luxury shirts, ties, knitwear and accessories in the country.
"In Reliance Brands we found a partner that not only understands and resonates our brand values but also has a winning combination of people, infrastructure and market muscle that we aspire to have in a partner," Thomas Pink President and Chief Executive Jonathan Heilbron said in a statement issued here.
Reliance Brands currently has brand partnerships for high-street labels like Diesel, Ermenegildo Zegna, Hamley's, Kenneth Cole, Paul & Shark, Quiksilver, Roxy, Steve Madden and Timberland and had also announced a joint venture with US-based Iconix recently.
"Given the increasingly well-travelled and aspirational Indian consumer, the choice to partner with and launch Thomas Pink in India was obvious. It is a Brand with very high recall and will sit in the Indian wardrobes easily and naturally," Reliance Brands President and Chief Executive Darshan Mehta said.
Success in my Habit
Tuesday, March 13, 2012
Colouring agent in Pepsi & Coke can cause cancer
ATLANTA: High levels of a chemical that causes tumours in animals were found in Coca-Cola and PepsiCo sodas, according to a consumer advocacy group pressing US regulators to ban a colour additive. The chemical 4-methylimidazole was found in Coca-Cola, Pepsi Cola, Diet Coke and Diet Pepsi and is the caramel colouring used in the beverages , according to a study released on Tuesday by the Center for Science in the Public Interest.
The group petitioned the US Food and Drug Administration in February to ban the ammonia sulphite colouring, which is found in most colas. "Coke and Pepsi, with the acquiescence of the FDA, are needlessly exposing millions of Americans to a chemical that causes cancer," said Michael F Jacobson, the Washington-based group's executive director, said. "The FDA needs to protect consumers from this risk."
The FDA has no reason to believe there is any immediate risk from the substance and is reviewing the group's petition, said Douglas Karas , an agency spokesman, in an e-mail . A consumer would have to drink more than a thousand cans of soda in a day to match the doses administered in studies that showed links to cancer in rodents, the FDA said.
The group petitioned the US Food and Drug Administration in February to ban the ammonia sulphite colouring, which is found in most colas. "Coke and Pepsi, with the acquiescence of the FDA, are needlessly exposing millions of Americans to a chemical that causes cancer," said Michael F Jacobson, the Washington-based group's executive director, said. "The FDA needs to protect consumers from this risk."
The FDA has no reason to believe there is any immediate risk from the substance and is reviewing the group's petition, said Douglas Karas , an agency spokesman, in an e-mail . A consumer would have to drink more than a thousand cans of soda in a day to match the doses administered in studies that showed links to cancer in rodents, the FDA said.
Murugappa group-3M battle over Wendt India enters new phase
CHENNAI: The battle between the Murugappa group and 3M for control of Wendt India has entered a new phase, with the American conglomerate indicating that it is willing to sell its holding in the abrasives maker.
But a dispute over the price it is seeking to exit the joint venture with the Murugappa group company, Carborundum Universal (Cumi), could hamper a solution to an issue that is being adjudicated by the Company Law Board.
3M, whose products include the Scotch-Brite homecleaning range and Post-it notes, has told the Company Law Board that it is "not averse" to selling its 40% stake in Wendt to Carborundum, an executive of the Murugappa group told ET. But the valuation demanded by 3M, which is based on the market value of Wendt, is not acceptable to Murugappa group, Carborundum managing director K Srinivasan said.
Instead, 3M should settle for the valuation that was determined by KPMG, he added. 3M declined to comment. In 2010, by virtue of its nearly $500 million (Rs 2,500 crore) purchase of Winterthur Technologies, 3M became an equal joint venture partner of Carborundum in Wendt India. Both hold almost a 40% stake each. But Carborundum objected to the deal, saying it had the first right of refusal to buy out shares of Wendt GmbH (a German arm of Winterthur, which held the stake). Carborundum then moved the Company Law Board.
"They are expecting it to be at market and market plus premium, which is completely unacceptable because they bought it at a price of 12.8 million (Rs 85 crore) for their 40%," Srinivasan told analysts in a conference call recently. Carborundum has now asked a court to appoint a valuer.
Another way of resolving it, he said, will be if 3M agrees to sell Wendt to Carborundum as per the fair valuation report of KPMG, based on which it acquired the Winterthur stakes.
"This is a fair way forward and in line with their argument that they did not violate the law of the land at the time of transaction, and that it was only a consequential event and not the intended target," he wrote in an email. Wendt India posted a standalone net profit of Rs 3.5 crore in the third quarter, down from Rs 4.4 crore in the year-ago period. Revenue increased to Rs 24 crore, from Rs 22 crore.
Its shares have risen over 32% so far this year. If and when 3M's exit comes, it will be the first time Wendt India will be without a foreign partner in the 32 years of its existence. It started in 1980 as a JV between Wendt GmbH and the House of Khataus. In 1991, Cumi replaced the Khataus. But the Murugappa group isn't worried about this.
"There have been three ownership changes in five years at the Wendt GmbH that end with all its attendant uncertainty, disruption and changes. Wendt India has in the process learnt to live without the support of foreign JV partner. The eventual sellout of the 40% stake by 3M will only complete the process running for five years now," said Srinivasan.
He added: "The old Wendt GmbH team with which Wendt India worked well for 27 years is all but gone in the repeated ownership changes. Today, it's lawyers who are talking, not engineers and technocrats who worked with the joint venture all these years. Carborundum has all along ensured that Wendt (India) is well managed and well run."
But a dispute over the price it is seeking to exit the joint venture with the Murugappa group company, Carborundum Universal (Cumi), could hamper a solution to an issue that is being adjudicated by the Company Law Board.
3M, whose products include the Scotch-Brite homecleaning range and Post-it notes, has told the Company Law Board that it is "not averse" to selling its 40% stake in Wendt to Carborundum, an executive of the Murugappa group told ET. But the valuation demanded by 3M, which is based on the market value of Wendt, is not acceptable to Murugappa group, Carborundum managing director K Srinivasan said.
Instead, 3M should settle for the valuation that was determined by KPMG, he added. 3M declined to comment. In 2010, by virtue of its nearly $500 million (Rs 2,500 crore) purchase of Winterthur Technologies, 3M became an equal joint venture partner of Carborundum in Wendt India. Both hold almost a 40% stake each. But Carborundum objected to the deal, saying it had the first right of refusal to buy out shares of Wendt GmbH (a German arm of Winterthur, which held the stake). Carborundum then moved the Company Law Board.
"They are expecting it to be at market and market plus premium, which is completely unacceptable because they bought it at a price of 12.8 million (Rs 85 crore) for their 40%," Srinivasan told analysts in a conference call recently. Carborundum has now asked a court to appoint a valuer.
Another way of resolving it, he said, will be if 3M agrees to sell Wendt to Carborundum as per the fair valuation report of KPMG, based on which it acquired the Winterthur stakes.
"This is a fair way forward and in line with their argument that they did not violate the law of the land at the time of transaction, and that it was only a consequential event and not the intended target," he wrote in an email. Wendt India posted a standalone net profit of Rs 3.5 crore in the third quarter, down from Rs 4.4 crore in the year-ago period. Revenue increased to Rs 24 crore, from Rs 22 crore.
Its shares have risen over 32% so far this year. If and when 3M's exit comes, it will be the first time Wendt India will be without a foreign partner in the 32 years of its existence. It started in 1980 as a JV between Wendt GmbH and the House of Khataus. In 1991, Cumi replaced the Khataus. But the Murugappa group isn't worried about this.
"There have been three ownership changes in five years at the Wendt GmbH that end with all its attendant uncertainty, disruption and changes. Wendt India has in the process learnt to live without the support of foreign JV partner. The eventual sellout of the 40% stake by 3M will only complete the process running for five years now," said Srinivasan.
He added: "The old Wendt GmbH team with which Wendt India worked well for 27 years is all but gone in the repeated ownership changes. Today, it's lawyers who are talking, not engineers and technocrats who worked with the joint venture all these years. Carborundum has all along ensured that Wendt (India) is well managed and well run."
Delhi High Court upholds Reckitt Benckiser's plea on reduction of its share capital
NEW DELHI: A plea by Reckitt Benckiser (India) Ltd's shareholder challenging the firm's decision to reduce its share capital has been dismissed by the Delhi High Court on grounds of want of any infirmity in the decision of the firm, noted for products like Dettol and Strepsils.
A bench headed by Acting Chief Justice A K Sikri dismissed the plea of shareholder Chander Bhan Gandhi saying that it was bound by the law and there was no error in the approval granted to the scheme by the company judge.
"We are bound by the law and are unable to find any error in the legal reasoning given by the Learned Company Judge approving the action of the respondent company (Reckitt Benckiser (India) Ltd) of reducing the share capital," said the bench, which also included Justice Rajiv Sahai Endlaw.
Reckitt Benckiser (India) Ltd, last year, had reduced its share capital, including the shares held by the public, by 1.55 percent. The firm, however, had not reduced its shares, held by its UK-based promoter Reckitt Benckiser Plc, a multinational consumer firm.
The company bench of the high court had approved the firm's proposal to reduce its share capital, rejecting Gandhi's objections, prompting him to move the court's division bench against its order.
The reduction of share capital of a firm is decreasing company shareholders' equity through share cancellations and share repurchases. It is done by the companies for various purposes including for increasing shareholders' value and producing a more efficient capital structure.
A bench headed by Acting Chief Justice A K Sikri dismissed the plea of shareholder Chander Bhan Gandhi saying that it was bound by the law and there was no error in the approval granted to the scheme by the company judge.
"We are bound by the law and are unable to find any error in the legal reasoning given by the Learned Company Judge approving the action of the respondent company (Reckitt Benckiser (India) Ltd) of reducing the share capital," said the bench, which also included Justice Rajiv Sahai Endlaw.
Reckitt Benckiser (India) Ltd, last year, had reduced its share capital, including the shares held by the public, by 1.55 percent. The firm, however, had not reduced its shares, held by its UK-based promoter Reckitt Benckiser Plc, a multinational consumer firm.
The company bench of the high court had approved the firm's proposal to reduce its share capital, rejecting Gandhi's objections, prompting him to move the court's division bench against its order.
The reduction of share capital of a firm is decreasing company shareholders' equity through share cancellations and share repurchases. It is done by the companies for various purposes including for increasing shareholders' value and producing a more efficient capital structure.
MMTC tenders for 12,000 T palmolein
NEW DELHI: Indian state-run trading company MMTC has tendered to buy 12,000 tonnes of refined palmolein in two parcels for delivery in March and April, a company statement said on Monday.
The refined, bleached and deodorised (RBD) palm oil should come from Indonesia or Malaysia.
The bidding deadline is March 19 and shipment is sought for one 6,000 tonne parcel by March 27 and for the second by April 5.
Last week, the state-owned company failed to award a similar tender for undisclosed reasons.
The refined, bleached and deodorised (RBD) palm oil should come from Indonesia or Malaysia.
The bidding deadline is March 19 and shipment is sought for one 6,000 tonne parcel by March 27 and for the second by April 5.
Last week, the state-owned company failed to award a similar tender for undisclosed reasons.
Joy Alukkas Group to invest Rs 100 crore in its aviation wing
Joy Alukkas Group, the Kerala-based gold jewellery retail chain, will invest Rs 100 crore in its aviation wing by next year to provide exclusive air charter services to various destinations across India and abroad and helicopter tours within Kochi. The group would launch its helicopter service from March 12.
The helicopter service will cater to tourists and residents of Kochi. A 6 seater helicopter service would be used for this purpose. The group has invested Rs 45 crore on Joy Jets, its aviation wing, Group chairman, Joy Alukkas told reporters here.
The air charter service was launched an year ago, covering the southern states, Maharashtra and Colombo Joy Jets, which has one jet and a helicopter at present, has plans to acquire 4 new jets. There are also plans to launch a long range flight by this December.
The helicopter to be used for this service is from Bell Helicopter, which manufactures helicopters for various commercial and military needs. The six seater helicopter will offer one hour tour of Kochi. The service would be extended to other cities in Kerala by next year.
The helicopter service will cater to tourists and residents of Kochi. A 6 seater helicopter service would be used for this purpose. The group has invested Rs 45 crore on Joy Jets, its aviation wing, Group chairman, Joy Alukkas told reporters here.
The air charter service was launched an year ago, covering the southern states, Maharashtra and Colombo Joy Jets, which has one jet and a helicopter at present, has plans to acquire 4 new jets. There are also plans to launch a long range flight by this December.
The helicopter to be used for this service is from Bell Helicopter, which manufactures helicopters for various commercial and military needs. The six seater helicopter will offer one hour tour of Kochi. The service would be extended to other cities in Kerala by next year.
Jewellery industry seeks cut in gold import by NRIs
NEW DELHI: The gems and jewellery industry has sought substantial reduction in the quantity of gold that NRIs are allowed to bring into the country, saying that the move will help check illegal imports.
"The federation recommends reducing this quantity (that NRIs bring in) to 1 kg from 10 kg, aimed at stopping illegal import of yellow metal in India," Gems and Jewellery Trade Federation Chairman Bachhraj Bamalwa said here today.
At present, Non-Resident Indians (NRIs) returning to India after six months are allowed to bring in 10 Kgs of gold, which is worth about Rs 3 crore.
Besides, Bamalwa said, there is a need to bring duty on gold imported in hand baggage by NRIs at par with customs duty levied on imports of yellow metal.
The customs duty on imports of gold and silver is 2 per cent and 6 per cent, respectively, of the value.
Duty on gold and silver imported by NRIs in hand baggage is Rs 300 per 10 gram and Rs 1,500 per kg respectively.
The government has recently notified the import duty on gold and silver as the old rates were fixed 4-5 years ago.
In the last few years, bullion prices have increased substantially and the change has been made to bring duties in line with market prices.
Further, the federation said there is a need to abolish 1 per cent excise duty imposed on branded jewellery to make the gems and jewellery sector more competitive.
"The federation recommends reducing this quantity (that NRIs bring in) to 1 kg from 10 kg, aimed at stopping illegal import of yellow metal in India," Gems and Jewellery Trade Federation Chairman Bachhraj Bamalwa said here today.
At present, Non-Resident Indians (NRIs) returning to India after six months are allowed to bring in 10 Kgs of gold, which is worth about Rs 3 crore.
Besides, Bamalwa said, there is a need to bring duty on gold imported in hand baggage by NRIs at par with customs duty levied on imports of yellow metal.
The customs duty on imports of gold and silver is 2 per cent and 6 per cent, respectively, of the value.
Duty on gold and silver imported by NRIs in hand baggage is Rs 300 per 10 gram and Rs 1,500 per kg respectively.
The government has recently notified the import duty on gold and silver as the old rates were fixed 4-5 years ago.
In the last few years, bullion prices have increased substantially and the change has been made to bring duties in line with market prices.
Further, the federation said there is a need to abolish 1 per cent excise duty imposed on branded jewellery to make the gems and jewellery sector more competitive.
GE to open validation lab in Bangalore
MUMBAI: The American conglomerate GE today announced launch of a state-of-the-art validation laboratory in Bangalore which will support repair and calibration of Kaye range of products designed to meet industrial requirements.
The lab which has a capability to calibrate temperatures to an accuracy of 0.005° C will meet vital requirements of pharmaceutical and life science industries, a company statement said here.
GE's measurement and control business is a leading innovator in sensor-based measurement, inspection, asset condition monitoring, controls and radiation measurement solutions to a wide range of industries including oil and gas, power generation, aerospace, transportation and healthcare.
"The new lab supports GE's 'In Country, for Country' strategy to build on capabilities and resources within India," GE regional general manager for measurement and control division Ashish Bhandari said.
The lab will also help reduce turnaround time for customers from three months to just one week, he said.
The lab which has a capability to calibrate temperatures to an accuracy of 0.005° C will meet vital requirements of pharmaceutical and life science industries, a company statement said here.
GE's measurement and control business is a leading innovator in sensor-based measurement, inspection, asset condition monitoring, controls and radiation measurement solutions to a wide range of industries including oil and gas, power generation, aerospace, transportation and healthcare.
"The new lab supports GE's 'In Country, for Country' strategy to build on capabilities and resources within India," GE regional general manager for measurement and control division Ashish Bhandari said.
The lab will also help reduce turnaround time for customers from three months to just one week, he said.
Varroc to acquire US-based Visteon Lighting for $75-100 mn
MUMBAI: Aurangabad-based privately-owned Varroc Group today announced signing of a deal with US-based Visteon Corporation to acquire the latter's global lighting business for USD 75-100 million (about Rs 500 crore).
"We have signed a deal with Visteon Corporation, a global automotive components maker, to acquire its global lighting business for USD 75-100 million. The deal will include acquisition of six manufacturing operations employing over 4,000 people which includes an engineering centre with over 400 engineers located in low cost countries like Mexico and Czech Republic," Varroc Group's majority shareholder and Chief Executive Tarang Jain told PTI here.
The company is expected to raise funds required for acquisition through private equity, Jain said.
The two companies expect to complete the deal in the third quarter 2012.
With this acquisition Varroc Group will become the largest Indian automotive lighting manufacturer and it will be amongst the top three component manufacturers in the automotive industry in the country, the company claimed.
Varroc Group provides components for two-three and four-wheel passenger and commercial vehicles and has 26 plants, of which 20 are in India, five in Europe and two in Southeast Asia employing around 5,000 people.
The acquisition is a major step in our vision of achieving USD 4 billion revenues by 2020 against USD 613 million in FY 12. Our annual revenues will be close to Rs 6,000 crore with this acquisition, Jain said.
The acquisition will also help Varroc to enter into global automotive exterior market for 4 wheelers. The company presently has strong presence in two wheeler lighting business, Verroc's president of electric division Vineet Sahni said.
"We have signed a deal with Visteon Corporation, a global automotive components maker, to acquire its global lighting business for USD 75-100 million. The deal will include acquisition of six manufacturing operations employing over 4,000 people which includes an engineering centre with over 400 engineers located in low cost countries like Mexico and Czech Republic," Varroc Group's majority shareholder and Chief Executive Tarang Jain told PTI here.
The company is expected to raise funds required for acquisition through private equity, Jain said.
The two companies expect to complete the deal in the third quarter 2012.
With this acquisition Varroc Group will become the largest Indian automotive lighting manufacturer and it will be amongst the top three component manufacturers in the automotive industry in the country, the company claimed.
Varroc Group provides components for two-three and four-wheel passenger and commercial vehicles and has 26 plants, of which 20 are in India, five in Europe and two in Southeast Asia employing around 5,000 people.
The acquisition is a major step in our vision of achieving USD 4 billion revenues by 2020 against USD 613 million in FY 12. Our annual revenues will be close to Rs 6,000 crore with this acquisition, Jain said.
The acquisition will also help Varroc to enter into global automotive exterior market for 4 wheelers. The company presently has strong presence in two wheeler lighting business, Verroc's president of electric division Vineet Sahni said.
Godrej Appliances eyeing big from BoP segment
MUMBAI: Godrej Appliances, the consumer durables division of the Godrej Group, today said it will focus on the bottom of the pyramid segment, following the success of its lowest-cost refrigerator 'Chotukool'.
"The 'Chotukool' was an experiment to test the bottom of the pyramid market. We are in three states and within a year or so we will have a pan-India rollout. When we rollout nationally, we want to be ready with other products also," Godrej Appliances Chief Operating Officer George Menzes told reporters here.
Dubbed as the cheapest refrigerator in the country with a price tag of just Rs 3,500-3,800, 'Chotukool' is available in Maharashtra, Gujarat and Tamil Nadu at present.
"The Chotukool is a low-cost cooling solution for the bottom of the pyramid (BoP) segment. The biggest learning for us in the 'Chotukool' model is the business channel. We have tied up with self-help groups like Pratham and some organisations which are into empowering women and making them entrepreneurs. We are leveraging such bodies to take the product to the rural customers through these self-help groups," he said.
Menzes further said alongside, they are also helping self-help groups to get financing from microfinance firms. Its an ecosystem where Godrej, self-help groups and micro- financiers come together to form a business model. Godrej has also tied up with India Post, besides embarking on an awareness campaign to educate the customers about the product.
"Right now, we are building an ecosystem to move BoP products through this channel. So we thought of creating a bouquet of products for this segment other than limiting ourselves to Chotukool," he said.
Emphasising that this is not a philanthropic effort but striking a balance between business and social objectives, Menzes said, "as a strategy we want to differentiate Godrej from others by doing something for the BoP segment, because we want to improve the lives of the BoP segment."
"The 'Chotukool' was an experiment to test the bottom of the pyramid market. We are in three states and within a year or so we will have a pan-India rollout. When we rollout nationally, we want to be ready with other products also," Godrej Appliances Chief Operating Officer George Menzes told reporters here.
Dubbed as the cheapest refrigerator in the country with a price tag of just Rs 3,500-3,800, 'Chotukool' is available in Maharashtra, Gujarat and Tamil Nadu at present.
"The Chotukool is a low-cost cooling solution for the bottom of the pyramid (BoP) segment. The biggest learning for us in the 'Chotukool' model is the business channel. We have tied up with self-help groups like Pratham and some organisations which are into empowering women and making them entrepreneurs. We are leveraging such bodies to take the product to the rural customers through these self-help groups," he said.
Menzes further said alongside, they are also helping self-help groups to get financing from microfinance firms. Its an ecosystem where Godrej, self-help groups and micro- financiers come together to form a business model. Godrej has also tied up with India Post, besides embarking on an awareness campaign to educate the customers about the product.
"Right now, we are building an ecosystem to move BoP products through this channel. So we thought of creating a bouquet of products for this segment other than limiting ourselves to Chotukool," he said.
Emphasising that this is not a philanthropic effort but striking a balance between business and social objectives, Menzes said, "as a strategy we want to differentiate Godrej from others by doing something for the BoP segment, because we want to improve the lives of the BoP segment."
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