NEW DELHI | MUMBAI | HYDERABAD: The government has allowed a local drugmaker to make and sell a patented cancer drug at a fraction of the price charged by Germany's Bayer AG, setting a precedent for more such efforts by Indian firms and heightening the global pharmaceutical industry's anxiety over the use of the controversial compulsory licensing provision.
The outgoing patent controller of India, PH Kurian, on Monday granted the country's first compulsory licence to Hyderabad-based Natco Pharma, permitting it to manufacture and market a generic version of Nexavar, a medicine used for treating liver and kidney cancer, in India for just 3% of the patented drug's price in return for paying 6% royalty on sales to Bayer.
While healthcare activists were quick to welcome the order and said it would discourage innovator companies from selling medicines at exorbitant prices, Bayer and OPPI, the body that represents foreign drug companies in India, expressed their disappointment at the development. "The solution to helping patients with innovative medicines does not lie in breaking patents," said OPPI Director-General Tapan Ray.
Bayer is expected to legally challenge the decision. "We will evaluate our options to further defend our intellectual property rights in India," a company spokesman said.
The order may encourage other Indian drugmakers to file for compulsory licences, setting the stage for a spate of regulatory disputes between Indian and foreign drug companies over pricing and patent issues.
"The patent controller has ruled that if a product is not manufactured in India after three years of receiving a patent, it will be a candidate for compulsory licensing. This can have huge consequences as most patented products sold in India are imported," said DG Shah, secretary general of the Indian Pharmaceutical Alliance. Since 2007, at least 18 patented HIV and cancer drugs have been launched in the country.
Success in my Habit
Tuesday, March 13, 2012
Reducing cost top on agenda for L&T's new CEO Venkataramanan
MUMBAI: Reducing cost and expanding to newer geographies will be top on the agenda of Krishnamurthi Venkataramanan, the newly appointed CEO and MD of the corporate giant Larsen and Toubro.
"Considering the current situation and volatility my concentration will be on reducing cost...Also we will look at new geographies beyond the Gulf and South East Asia," Venkataramanan, 67, told reporters after his appointment.
The announcement of his appointment to the coveted post from April 1, was made today. Venkataramanan is currently a whole-time director and President of the company's hydrocarbon business.
He said his focus will be on the engineering and construction segment which constitute over 80 per cent of the conglomerate's business.
Venkataramanan said that apart from these, top on his priorities will be ensuring that projects get completed within the stipulated timeframe.
"Also, want to focus on doing all projects on time as we cannot afford delays in projects in this situation," he said.
The company, as on December 31, had an order book of Rs 1,45,768 crore.
Venkataramanan has been with the USD 12-billion group since 1969, when he joined it as a Graduate Engineer Trainee. Later he was elevated to board member in 1995.
In the new structure, Venkataramanan would be responsible for the day-to-day businesses of L&T.
In a much-awaited succession plan, Larsen and Toubro appointed Venkataramanan as its new CEO and Managing Director and said its current chief A M Naik would remain Executive Chairman for the next five years.
It is the first time in over eight years that L&T has bifurcated the roles of Chairman and MD.
Naik while, addressing the media said, "Venkatramanan will look at parent and core businesses, where some restructuring is on and I will help him," adding Venkataramanan was the most competent person to hold the position of CEO and MD.
L&T is one of the largest corporate groups in the country and its revenue grew by 19 per cent to over Rs 52,000 crore in last financial year, 2010-11. The post-tax profit of the group also grew by 12 per cent to over Rs 4,200 crore last fiscal.
L&T was founded here in 1938 by two Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro, to provide engineering services to the Indian industry.
It became a public company in December 1950 and its total sales that year stood at about Rs 1.09 crore. The group currently has an employee strength of about 38,000 people.
"Considering the current situation and volatility my concentration will be on reducing cost...Also we will look at new geographies beyond the Gulf and South East Asia," Venkataramanan, 67, told reporters after his appointment.
The announcement of his appointment to the coveted post from April 1, was made today. Venkataramanan is currently a whole-time director and President of the company's hydrocarbon business.
He said his focus will be on the engineering and construction segment which constitute over 80 per cent of the conglomerate's business.
Venkataramanan said that apart from these, top on his priorities will be ensuring that projects get completed within the stipulated timeframe.
"Also, want to focus on doing all projects on time as we cannot afford delays in projects in this situation," he said.
The company, as on December 31, had an order book of Rs 1,45,768 crore.
Venkataramanan has been with the USD 12-billion group since 1969, when he joined it as a Graduate Engineer Trainee. Later he was elevated to board member in 1995.
In the new structure, Venkataramanan would be responsible for the day-to-day businesses of L&T.
In a much-awaited succession plan, Larsen and Toubro appointed Venkataramanan as its new CEO and Managing Director and said its current chief A M Naik would remain Executive Chairman for the next five years.
It is the first time in over eight years that L&T has bifurcated the roles of Chairman and MD.
Naik while, addressing the media said, "Venkatramanan will look at parent and core businesses, where some restructuring is on and I will help him," adding Venkataramanan was the most competent person to hold the position of CEO and MD.
L&T is one of the largest corporate groups in the country and its revenue grew by 19 per cent to over Rs 52,000 crore in last financial year, 2010-11. The post-tax profit of the group also grew by 12 per cent to over Rs 4,200 crore last fiscal.
L&T was founded here in 1938 by two Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro, to provide engineering services to the Indian industry.
It became a public company in December 1950 and its total sales that year stood at about Rs 1.09 crore. The group currently has an employee strength of about 38,000 people.
L&T has not appointed Citi for Hexaware: Naik
MUMBAI: Larsen & Toubro chairman AM Naik today rubbished reports in a section of the media that his company has appointed Citigroup as investment banker for a possible takeover of Hexaware Technologies.
"We haven't appointed any banker (for Hexaware acquisition) as is reported in papers. We have not even met except once when we met them to ask them whether they will allow us to take part in the process. Their process is long and takes time. They are talking to several international firms as well," Naik told the media this afternoon.
However, Naik, who announced a succession plan for the engineering behemoth earlier in the day, said the company is interested in any and every opportunity and everyone must see possibilities positively.
"We continue to look at opportunities for integration possibility," Naik, who divested part of his responsibility to K Venkataraman as chief executive and managing director earlier in the day, said.
"We haven't appointed any banker (for Hexaware acquisition) as is reported in papers. We have not even met except once when we met them to ask them whether they will allow us to take part in the process. Their process is long and takes time. They are talking to several international firms as well," Naik told the media this afternoon.
However, Naik, who announced a succession plan for the engineering behemoth earlier in the day, said the company is interested in any and every opportunity and everyone must see possibilities positively.
"We continue to look at opportunities for integration possibility," Naik, who divested part of his responsibility to K Venkataraman as chief executive and managing director earlier in the day, said.
L&T eyes 200 mw solar project order next fiscal
Larsen and Toubro (L&T), which plans to focus on strengthening its engineering and construction segment after the change of guard at the top-rung over the weekend, expects to bag 200 mw of solar projects in the next fiscal.
The newly-appointed managing director and chief executive Krishnamurthi Venkataramanan has laid emphasis on strenghtening the EPC segment, which constitutes over 80 per cent of the business, by ensuring prompt execution of projects.
L&T Construction, a part of the USD 11.7-billion conglomerate, has emerged as the largest EPC player in the country's solar power sector, with orders for over 200 mw and is now targeting a cumulative tally of solar power experience to increase to 400 mw by FY13, the company said in a statement here.
The company aims to achieve a target of 112 mw of installed capacity by next month, it added.
L&T has already commissioned a 25 mw solar plant at Charankha in Gujarat, using tier-1 crystalline PV technology and another 40 mw plant, employing thin film technology, is under commissioning at Pokhran in Rajasthan, the release said.
Of the 66 mw solar projects commissioned in Gujarat, the 10 mw plant located at Surendranagar has adopted tier-1 crystalline PV modules and single axis trackers.
The newly-appointed managing director and chief executive Krishnamurthi Venkataramanan has laid emphasis on strenghtening the EPC segment, which constitutes over 80 per cent of the business, by ensuring prompt execution of projects.
L&T Construction, a part of the USD 11.7-billion conglomerate, has emerged as the largest EPC player in the country's solar power sector, with orders for over 200 mw and is now targeting a cumulative tally of solar power experience to increase to 400 mw by FY13, the company said in a statement here.
The company aims to achieve a target of 112 mw of installed capacity by next month, it added.
L&T has already commissioned a 25 mw solar plant at Charankha in Gujarat, using tier-1 crystalline PV technology and another 40 mw plant, employing thin film technology, is under commissioning at Pokhran in Rajasthan, the release said.
Of the 66 mw solar projects commissioned in Gujarat, the 10 mw plant located at Surendranagar has adopted tier-1 crystalline PV modules and single axis trackers.
L&T Construction bags orders worth Rs 1,454 crore
NEW DEHI: L&T Construction on Wednesday said it bagged orders worth Rs 1,454 crore across various business segments in February and March 2012.
The company's water and effluent treatment business unit secured new orders worth Rs 579 crore from Tamil Nadu Water Supply & Drainage Board. Scope of the contract includes providing combined water supply scheme to Attur -Narsingpuram municipalities and Vallore Corp, a company statement said.
The scheme will cater to 20 town panchayats and 1,345 ruralhabitations in Salem district and 11 municipalities, 5 town panchayats and 944 rural habitations in Vellore district.
The company's power transmission and distribution unit won orders in both domestic and international markets. Domestic orders worth Rs 351 crore include civil workfor 1,320-mw thermal power plant and another civil works order from Gulbarga Electricity Supply Company Ltd. International orders valued at Rs 320 crore for construction of a substation in Kuwait has been received.
Building and factories division has bagged additional orders worth Rs 204 crore from various ongoing projects, the statement said .
The company's water and effluent treatment business unit secured new orders worth Rs 579 crore from Tamil Nadu Water Supply & Drainage Board. Scope of the contract includes providing combined water supply scheme to Attur -Narsingpuram municipalities and Vallore Corp, a company statement said.
The scheme will cater to 20 town panchayats and 1,345 ruralhabitations in Salem district and 11 municipalities, 5 town panchayats and 944 rural habitations in Vellore district.
The company's power transmission and distribution unit won orders in both domestic and international markets. Domestic orders worth Rs 351 crore include civil workfor 1,320-mw thermal power plant and another civil works order from Gulbarga Electricity Supply Company Ltd. International orders valued at Rs 320 crore for construction of a substation in Kuwait has been received.
Building and factories division has bagged additional orders worth Rs 204 crore from various ongoing projects, the statement said .
Mundra with 4,620 MW is world’s largest private power plant
MUMBAI: Adani Power synchronized the fifth unit of the Mundra power plant this week, taking its total generating capacity to 4,620MW, making it the world's largest single-location coal-fired plant in the private sector. China, Poland and Taiwan have three thermal power plants exceeding 5,000 MW but they are all state-owned, making Mundra also the fifth largest globally.
Adani, which ventured into power generation in 2009-10, has become India's largest power generation company in the private sector and its current capacity is 15% more than the ultra mega power projects (UMPPs) being executed by Reliance Power and Tata Power in states of Gujarat, Madhya Pradesh, Andhra Pradesh and Jharkhand. Even India's biggest state-owned power producer NTPC does not produce over 4000 MW of power in a single location.
"When we started executing the power plant, our name didn't figure in Planning Commission's 2007-2012 five year plan period and now we contribute 10% of the planned target," Ravi Sharma, CEO, power business, Adani Power, told TOI. However, the issue of imported coal will continue to hound Adani Power as the plant is based on coal from Indonesia.
"The issue of imported coal is an industry issue and its being actively addressed at the level of the Prime Minister's Office. We have got linkages from Coal India for some of the units and the remaining coal we intend to import," said Sharma, adding that the plant will currently operate at over 70% plant loan factor (plf).
The company has signed long-term power purchase agreement with Gujarat and Haryana for sale of 80% of the capacity while the remaining 20% the company intends to sell at merchant basis.
The PPAs signed with the state governments envisages sale of power at Rs 2.34 per a unit to Rs 2.94 per unit. However, with the price of Indonesian coal going up substantially with the new Indonesian law to sell it at market-linked prices, the company is looking at renegotiating the terms of the PPAs.
Adani Power intends to complete commissioning of 3300 MW at Tiroda and another 1320 MW at Kawai by March 31, 2013. The company intends to reach a capacity of 20,000 MW by 2020. Adani Power shares on BSE closed almost flat at Rs 75 in a flat Mumbai market on Monday.
Adani, which ventured into power generation in 2009-10, has become India's largest power generation company in the private sector and its current capacity is 15% more than the ultra mega power projects (UMPPs) being executed by Reliance Power and Tata Power in states of Gujarat, Madhya Pradesh, Andhra Pradesh and Jharkhand. Even India's biggest state-owned power producer NTPC does not produce over 4000 MW of power in a single location.
"When we started executing the power plant, our name didn't figure in Planning Commission's 2007-2012 five year plan period and now we contribute 10% of the planned target," Ravi Sharma, CEO, power business, Adani Power, told TOI. However, the issue of imported coal will continue to hound Adani Power as the plant is based on coal from Indonesia.
"The issue of imported coal is an industry issue and its being actively addressed at the level of the Prime Minister's Office. We have got linkages from Coal India for some of the units and the remaining coal we intend to import," said Sharma, adding that the plant will currently operate at over 70% plant loan factor (plf).
The company has signed long-term power purchase agreement with Gujarat and Haryana for sale of 80% of the capacity while the remaining 20% the company intends to sell at merchant basis.
The PPAs signed with the state governments envisages sale of power at Rs 2.34 per a unit to Rs 2.94 per unit. However, with the price of Indonesian coal going up substantially with the new Indonesian law to sell it at market-linked prices, the company is looking at renegotiating the terms of the PPAs.
Adani Power intends to complete commissioning of 3300 MW at Tiroda and another 1320 MW at Kawai by March 31, 2013. The company intends to reach a capacity of 20,000 MW by 2020. Adani Power shares on BSE closed almost flat at Rs 75 in a flat Mumbai market on Monday.
JK government gets Rs 480.61 crore royalty from NHPC
JAMMU: The Jammu and Kashmir government today said it has received Rs 480.61 crore as royalty of water usage charges from NHPC for running hydro power projects in the state.
The government has received Rs 480.61 crore as royalty of water usage charges from NHPC for running of Salal, Uri, Dulhasti and Sewa-II hydro electric projects against Rs 543.761 crore till ending December 2011, the Minister for PHE, Irrigation and Flood Control Taj Mohi-ud-Din said said while relying to the question of CPIM member M Y Tarigami in the Legislative Assembly today.
He said that government has received Rs 480.61 crore as royalty of water usage charges from NHPC for running of Salal, Uri, Dulhasti and Sewa-II hydro electric projects against Rs 543.761 crore till ending December 2011.
The percentage of state employees working in the projects executed by NHPC is about 67 per cent, he said adding that out of 3250 employees working in NHPC projects, 2192 employees belong to Jammu and Kashmir.
He said the cabinet has accepted the recommendations of the Cabinet Sub-Committee (CSC) for transfer of Salal and Uri projects to the state.
He said for transfer of Salal hydro electric project, the government shall secure its interest at least in terms of those components which were part of the national policy at that time and which were agreed by the central government.
The Minister said that law department is examining as how to proceed in respect of our claim for Rs 2350.85 crore from NHPC on account of suffered losses in acceptance of any agreement to this effect.
The government has received Rs 480.61 crore as royalty of water usage charges from NHPC for running of Salal, Uri, Dulhasti and Sewa-II hydro electric projects against Rs 543.761 crore till ending December 2011, the Minister for PHE, Irrigation and Flood Control Taj Mohi-ud-Din said said while relying to the question of CPIM member M Y Tarigami in the Legislative Assembly today.
He said that government has received Rs 480.61 crore as royalty of water usage charges from NHPC for running of Salal, Uri, Dulhasti and Sewa-II hydro electric projects against Rs 543.761 crore till ending December 2011.
The percentage of state employees working in the projects executed by NHPC is about 67 per cent, he said adding that out of 3250 employees working in NHPC projects, 2192 employees belong to Jammu and Kashmir.
He said the cabinet has accepted the recommendations of the Cabinet Sub-Committee (CSC) for transfer of Salal and Uri projects to the state.
He said for transfer of Salal hydro electric project, the government shall secure its interest at least in terms of those components which were part of the national policy at that time and which were agreed by the central government.
The Minister said that law department is examining as how to proceed in respect of our claim for Rs 2350.85 crore from NHPC on account of suffered losses in acceptance of any agreement to this effect.
ITC chief Y C Deveshwar sells Rs 5.8 crore worth shares
MUMBAI: Tobacco-to-consumer goods giant ITC Ltd today said its chief Y C Deveshwar has sold shares worth about Rs 5.8 crore, while two other directors have also sold shares worth about Rs 2.7 crore through the open market.
In a regulatory filing this morning, ITC said that Y C Deveshwar, Chairman and Wholetime Director, has sold about 2.79 lakh shares for about Rs 5.78 crore.
Besides, Wholetime Director K N Grant has also sold 1.25 lakh shares for about Rs 2.58 crore, while 5,000 shares have been sold from the holding of non-executive director S H Khan, held by his dependent (wife) for Rs 10.16 lakh.
As per the regulatory disclosure, Deveshwar held 20.13 lakh shares or about 0.0258 stake in the company, which has declined to 17.34 lakh shares or 0.022 per stake after the the latest sale through stock exchange.
According to data available with the BSE, Deveshwar had sold ITC shares earlier in February also.
There is no promoter holding in ITC and various institutions together hold 51.09 per cent stake, including 16.31 per cent by overseas entities and 34.78 per cent by domestic institutions.
Among major shareholders, Tobacco Manufacturers India Ltd had 25.47 stake, LIC 12.5 per cent and Specified Undertaking Of the Unit Trust Of India (SUUTI) 11.50 per cent holding at the end of last quarter ended December 31, 2011.
ITC shares were trading 1.03 per cent down at Rs 205.06 in a weak market at 1120 hours at the BSE today.
In a regulatory filing this morning, ITC said that Y C Deveshwar, Chairman and Wholetime Director, has sold about 2.79 lakh shares for about Rs 5.78 crore.
Besides, Wholetime Director K N Grant has also sold 1.25 lakh shares for about Rs 2.58 crore, while 5,000 shares have been sold from the holding of non-executive director S H Khan, held by his dependent (wife) for Rs 10.16 lakh.
As per the regulatory disclosure, Deveshwar held 20.13 lakh shares or about 0.0258 stake in the company, which has declined to 17.34 lakh shares or 0.022 per stake after the the latest sale through stock exchange.
According to data available with the BSE, Deveshwar had sold ITC shares earlier in February also.
There is no promoter holding in ITC and various institutions together hold 51.09 per cent stake, including 16.31 per cent by overseas entities and 34.78 per cent by domestic institutions.
Among major shareholders, Tobacco Manufacturers India Ltd had 25.47 stake, LIC 12.5 per cent and Specified Undertaking Of the Unit Trust Of India (SUUTI) 11.50 per cent holding at the end of last quarter ended December 31, 2011.
ITC shares were trading 1.03 per cent down at Rs 205.06 in a weak market at 1120 hours at the BSE today.
Despite minor protests, Akzo Nobel's merger proposal set for smooth sail
MUMBAI|KOLKATA: Some minority institutional investors of Akzo Nobel India opposed the firm's proposal to merge three unlisted group firms with itself at a packed shareholders meet in Kolkata but the proposal may end up getting passed.
The court convened meeting on Tuesday of Akzo Nobel India - the maker of Dulux paints, witnessed a 'spirited debate' from shareholders ranged for and against the merger of the three unlisted entities with the Indian listed subsidiary. The proposal was put to vote and the results will be announced in 48 hours.
Representatives of insurance majors LIC, GIC and SBI mutual fund and Birla Sun Life mutual fund participated in the meeting.
The highlight of the meeting was the quiet presence of a representative from Asian Paints, who by virtue of holding 5% of their arch rival's equity also cast its vote. While company officials declined to disclose how they voted, observers attending the meeting believed that the very fact that Asian Paints attended the meeting can be construed that the vote was against the merger resolution.
An Asian Paints official confirmed that a representative had indeed attended the court convened meeting of Akzo Nobel in Kolkata. "We voted in the interest of the shareholders of Asian Paints Ltd," an official said.
Akzo Nobel officials said that over 800 proxies were cast with 73 members attending the Akzo meet. Shareholders referred to the Economic Times reports on several occasions that had brought the concerns out in the open of minority shareholders against the Akzo Nobel's merger proposal.
Amit Jain, managing director, Akzo Nobel India said with this the company is moving away from a frequent restructuring mode to one of organic growth. "We'll become a one stop coatings provider."
The court convened meeting on Tuesday of Akzo Nobel India - the maker of Dulux paints, witnessed a 'spirited debate' from shareholders ranged for and against the merger of the three unlisted entities with the Indian listed subsidiary. The proposal was put to vote and the results will be announced in 48 hours.
Representatives of insurance majors LIC, GIC and SBI mutual fund and Birla Sun Life mutual fund participated in the meeting.
The highlight of the meeting was the quiet presence of a representative from Asian Paints, who by virtue of holding 5% of their arch rival's equity also cast its vote. While company officials declined to disclose how they voted, observers attending the meeting believed that the very fact that Asian Paints attended the meeting can be construed that the vote was against the merger resolution.
An Asian Paints official confirmed that a representative had indeed attended the court convened meeting of Akzo Nobel in Kolkata. "We voted in the interest of the shareholders of Asian Paints Ltd," an official said.
Akzo Nobel officials said that over 800 proxies were cast with 73 members attending the Akzo meet. Shareholders referred to the Economic Times reports on several occasions that had brought the concerns out in the open of minority shareholders against the Akzo Nobel's merger proposal.
Amit Jain, managing director, Akzo Nobel India said with this the company is moving away from a frequent restructuring mode to one of organic growth. "We'll become a one stop coatings provider."
Royal Stag topples Absolut Vodka to lead volume chart in Pernod’s portfolio
MUMBAI: French drinks giant Groupe Pernod Ricard's Indian whisky Royal Stag is now the largest selling brand in its global portfolio of alcoholic beverages. It dislodged the iconic Absolut vodka to lead the volume chart in 2011, making it possibly the only local consumer brand topping a MNC business globally.
Royal Stag, a semi-premium blended whisky, sold 12.3 million cases last year, well ahead of Absolut's 11.3 million cases, to be the top volume grabber across Pernod Ricard's businesses. Ricard, an anise-based drink mainly sold in France, is the third largest volume brand for the global behemoth.
A Pernod Ricard spokesperson confirmed that Royal Stag emerged as the global volume leader last year. The brand was steadily built in the last two decades, initially by Seagram and then Pernod Ricard which acquired the former in 1999. HUL's Fair & Lovely-a brand with a franchise of about one billion women across Asia, Africa and Middle East-tops the worldwide fairness cream business of the Anglo-Dutch parent Unilever worldwide.
Royal Stag's rise to the top reflects the French behemoth's strong forays into emerging growth markets where it leads arch rival Diageo, which has struggled in markets like India and China. Pernod Ricard competes with Diageo Plc to dominate the world's lifestyle drinks industry with a slew of blockbuster brands, including Chivas Regal, Jameson and Ballantine's scotch whiskies. Vijay Mallya's United Spirits (USL) is the world's largest player by volume but has most of its business locked up in India.
Royal Stag along with Blender's Pride, a premium Indian whisky, are the mainstay of Pernod Ricard's local operations, which reported 24 million cases sales in 2011.
Both these brands have withstood strong challenges from USL. Royal Stag competes with USL's McDowell's No.1 whisky, while Blender's pride takes on Signature, Royal Challenge and Antiquity whiskies. USL replied with brand extensions of Signature and Antiquity, and repackaged Royal Challenge.
IDFC Securities MD Nikhil Vohra, some months ago, noted that the performance of Pernod Ricard showcased the inherent profitability of the liquor industry would lead to a structural de-rating of USL, which garners 70% of its volume from regular priced brands, but is still a cash cow for Mallya's alcobev empire
Royal Stag, a semi-premium blended whisky, sold 12.3 million cases last year, well ahead of Absolut's 11.3 million cases, to be the top volume grabber across Pernod Ricard's businesses. Ricard, an anise-based drink mainly sold in France, is the third largest volume brand for the global behemoth.
A Pernod Ricard spokesperson confirmed that Royal Stag emerged as the global volume leader last year. The brand was steadily built in the last two decades, initially by Seagram and then Pernod Ricard which acquired the former in 1999. HUL's Fair & Lovely-a brand with a franchise of about one billion women across Asia, Africa and Middle East-tops the worldwide fairness cream business of the Anglo-Dutch parent Unilever worldwide.
Royal Stag's rise to the top reflects the French behemoth's strong forays into emerging growth markets where it leads arch rival Diageo, which has struggled in markets like India and China. Pernod Ricard competes with Diageo Plc to dominate the world's lifestyle drinks industry with a slew of blockbuster brands, including Chivas Regal, Jameson and Ballantine's scotch whiskies. Vijay Mallya's United Spirits (USL) is the world's largest player by volume but has most of its business locked up in India.
Royal Stag along with Blender's Pride, a premium Indian whisky, are the mainstay of Pernod Ricard's local operations, which reported 24 million cases sales in 2011.
Both these brands have withstood strong challenges from USL. Royal Stag competes with USL's McDowell's No.1 whisky, while Blender's pride takes on Signature, Royal Challenge and Antiquity whiskies. USL replied with brand extensions of Signature and Antiquity, and repackaged Royal Challenge.
IDFC Securities MD Nikhil Vohra, some months ago, noted that the performance of Pernod Ricard showcased the inherent profitability of the liquor industry would lead to a structural de-rating of USL, which garners 70% of its volume from regular priced brands, but is still a cash cow for Mallya's alcobev empire
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