Mumbai: The transportation infrastructure business of L&T has bagged an order worth Rs 2,085 crore from the Transport Ministry of Oman for the construction of the Al Batinah Expressway package 4.
The project is scheduled for completion in 36 months and involves building a 50-km, four-lane dual carriage expressway, two grade-separated interchanges, seven overpasses and five bridges.
Success in my Habit
Saturday, July 20, 2013
Italian luxury brand Furla to expand its presence in India
New Delhi: Italian high-end accessories brand Furla plans to expand its presence in the Indian market once the government clears its joint venture with Genesis Luxury Fashion, a top official said.
"We are yet to get a go ahead from the Foreign Investment Promotion Board of India to have a joint venture here. The moment it happens, our investments will be made at a super-fast speed," Eraldo Poletto, CEO of the Italian firm, told ET. Poletto, 51, was in Delhi on an official visit.
Furla, known for its handbags and shoes, has sought the government's approval to operate single-brand retail outlets through a 51:49 joint venture with Gurgaon-based Genesis, which currently runs two Furla stores as a franchisee and plans to open a third one in either Kolkata or Bangalore.
The joint venture plans to invest about Rs 13 crore in the first four years to open stores, with Furla bringing in Rs 6.6 crore, according to the application submitted to FIPB.
Poletto sees India as a unique market where one requires a lot of patience to establish a brand in the minds of people and expect financial returns. "The value of time here is different from anywhere else in the world," he said. "I think a brand has to wait to evolve in India, but once it does the growth is faster." He expects Furla stores in India to break even in 2-3 years of operations.
The Bologna-based, family-owned brand is on an aggressive expansion drive in Asia. Earlier this year it announced a joint venture with China's Fung Group to open 100 boutiques there in four years.
Japan is Furla's biggest market, accounting for 27% of its total sales, ahead of home market Italy that contributes 25% of the firm's turnover. The company reported 18% jump in its turnover last calendar at 212 million (approx Rs 1,650 crore).
"Asia (excluding Japan) is around 13% of the total business and we have very aggressive plans to become much bigger in the next two years," Poletto said. Furla is present in more than 90 countries with about 325 single-brand stores. It produces about 2.5 million pieces every year, mostly in Italy. Some items sourced from China as well.
When asked about India as a sourcing destination, Poletto said Furla did buy some jewellery and accessories from India some time back, but not at the moment. "India is competitive if we use Indian leather but it is different from the kind of products we do," he said.
"We are yet to get a go ahead from the Foreign Investment Promotion Board of India to have a joint venture here. The moment it happens, our investments will be made at a super-fast speed," Eraldo Poletto, CEO of the Italian firm, told ET. Poletto, 51, was in Delhi on an official visit.
Furla, known for its handbags and shoes, has sought the government's approval to operate single-brand retail outlets through a 51:49 joint venture with Gurgaon-based Genesis, which currently runs two Furla stores as a franchisee and plans to open a third one in either Kolkata or Bangalore.
The joint venture plans to invest about Rs 13 crore in the first four years to open stores, with Furla bringing in Rs 6.6 crore, according to the application submitted to FIPB.
Poletto sees India as a unique market where one requires a lot of patience to establish a brand in the minds of people and expect financial returns. "The value of time here is different from anywhere else in the world," he said. "I think a brand has to wait to evolve in India, but once it does the growth is faster." He expects Furla stores in India to break even in 2-3 years of operations.
The Bologna-based, family-owned brand is on an aggressive expansion drive in Asia. Earlier this year it announced a joint venture with China's Fung Group to open 100 boutiques there in four years.
Japan is Furla's biggest market, accounting for 27% of its total sales, ahead of home market Italy that contributes 25% of the firm's turnover. The company reported 18% jump in its turnover last calendar at 212 million (approx Rs 1,650 crore).
"Asia (excluding Japan) is around 13% of the total business and we have very aggressive plans to become much bigger in the next two years," Poletto said. Furla is present in more than 90 countries with about 325 single-brand stores. It produces about 2.5 million pieces every year, mostly in Italy. Some items sourced from China as well.
When asked about India as a sourcing destination, Poletto said Furla did buy some jewellery and accessories from India some time back, but not at the moment. "India is competitive if we use Indian leather but it is different from the kind of products we do," he said.
Steel Minister leads a delegation to Canada for acquisition of minerals
RINL inks MOU with Mc Master University to strengthen R&D
New Delhi: A High Level delegation led by the Union Minister of Steel Shri Beni Prasad Verma, currently on a week-long tour to Canada, reached Toronto on 15th July with an objective to have cooperation between organizations of both the countries for sourcing/acquisition of minerals, viz. coking coal and iron ore, as a long term perspective for sustained growth of Indian Steel industry. Acquisition of intellectual property and cooperation in R&D activities are also part of the agenda.
On the first day of the visit, the delegation concluded an MoU between RINL and McMaster University, Hamilton, Canada, to collaborate and strengthen Research cooperation, in the areas of Steel making, Beneficiation and Pellet making from low grade magnetite and also towards training, exchange of research, etc. An MoU got signed by Sri A P Choudhary, CMD, Rashtriya Ispat Nigam Limited (RINL), with Dr Peter Mascher, McMaster University on 16th July.
Shri Beni Prasad Verma mentioned that such cooperation with leading University will strengthen R&D activities in steel sector which is a must to achieve Government’s planned level of over 200 million tonnes of capacity during next few years. On a query by a Canadian organization about export of iron ore from India, Sri Beni Prasad Verma mentioned that Government has already taken action which has resulted in sharp decline of exports by 75%. He also mentioned that although India has rich reserves of iron ore, it is opportune time for Indian steel industry to acquire more iron ore mines to meet the requirement of next generation, the country being populous.
Shri Verma is also visiting mineral rich State of British Columbia and will have discussions with the Premier of British Columbia and other concerned Ministers and organizations on the subject during the visit.
The Secretary, Ministry of Steel, Shri DRS Chaudhary and Joint Secretary (Steel) Sri Lokesh Chandra are also accompanying the Minister as part of the delegation.
New Delhi: A High Level delegation led by the Union Minister of Steel Shri Beni Prasad Verma, currently on a week-long tour to Canada, reached Toronto on 15th July with an objective to have cooperation between organizations of both the countries for sourcing/acquisition of minerals, viz. coking coal and iron ore, as a long term perspective for sustained growth of Indian Steel industry. Acquisition of intellectual property and cooperation in R&D activities are also part of the agenda.
On the first day of the visit, the delegation concluded an MoU between RINL and McMaster University, Hamilton, Canada, to collaborate and strengthen Research cooperation, in the areas of Steel making, Beneficiation and Pellet making from low grade magnetite and also towards training, exchange of research, etc. An MoU got signed by Sri A P Choudhary, CMD, Rashtriya Ispat Nigam Limited (RINL), with Dr Peter Mascher, McMaster University on 16th July.
Shri Beni Prasad Verma mentioned that such cooperation with leading University will strengthen R&D activities in steel sector which is a must to achieve Government’s planned level of over 200 million tonnes of capacity during next few years. On a query by a Canadian organization about export of iron ore from India, Sri Beni Prasad Verma mentioned that Government has already taken action which has resulted in sharp decline of exports by 75%. He also mentioned that although India has rich reserves of iron ore, it is opportune time for Indian steel industry to acquire more iron ore mines to meet the requirement of next generation, the country being populous.
Shri Verma is also visiting mineral rich State of British Columbia and will have discussions with the Premier of British Columbia and other concerned Ministers and organizations on the subject during the visit.
The Secretary, Ministry of Steel, Shri DRS Chaudhary and Joint Secretary (Steel) Sri Lokesh Chandra are also accompanying the Minister as part of the delegation.
Electrotherm launches advanced induction furnace unit
Hyderabad: Equipment-maker for steel industry Electrotherm (India) has launched an advanced induction furnace unit that provides for simultaneous dephosphorisation and desulphrisation.
Dephosphorisation and desulphrisation are important in steel-making as high content of phosphorus and sulphur makes steel very brittle.
The Bureau of Indian Standards’ new rules on limiting phosphorus and sulphur in steel will come into force from October 1, 2013.
“Our new product, EldFOS, will help secondary steel manufacturers to comply with the new BIS rules and also international standards,’’ Sharat Chojar, General Manager, Electrotherm, told newspersons here on Tuesday.
The Ahmedabad-based company had also applied for patent on the product recently, he added.
There are about 2,500 induction steel units in the country. “Out of this, 800 use our equipment," he added.
The steel production in India was 76 million tonnes during 2012-13 and 25 million tonnes of this was produced through secondary route using induction furnaces.
Dephosphorisation and desulphrisation are important in steel-making as high content of phosphorus and sulphur makes steel very brittle.
The Bureau of Indian Standards’ new rules on limiting phosphorus and sulphur in steel will come into force from October 1, 2013.
“Our new product, EldFOS, will help secondary steel manufacturers to comply with the new BIS rules and also international standards,’’ Sharat Chojar, General Manager, Electrotherm, told newspersons here on Tuesday.
The Ahmedabad-based company had also applied for patent on the product recently, he added.
There are about 2,500 induction steel units in the country. “Out of this, 800 use our equipment," he added.
The steel production in India was 76 million tonnes during 2012-13 and 25 million tonnes of this was produced through secondary route using induction furnaces.
Dutch firm inks services pact with Maheshwari Electronics
Bangalore: The Netherlands-based Exset B.V. and Bangalore-based Maheshwari Electronics and Cable TV Pvt Ltd (Maheshwari Electronics) have partnered to tap the digitisation landscape across South India.
“As the country goes into the final phases of digitisation, this partnership will ensure delivery of service and a next generation content protection system to the cable fraternity in the region,” said Anil Kabra, Managing Director of Maheshwari Electronics.
Under the agreement, Exset B.V. will be responsible for providing DMS, CAS and Middleware to customers/cable operators of Maheshwari Electronics for its Digital Cable Platform.
This association aims to drive governance, television commerce, advertising and magazine services in a predominantly one–way environment for its end–consumers.
DMS will allow Maheshwari Electronics to offer new services to its customers in a one-way broadcast environment; these could include magazine, shopping, Government apps.
Alex Borland, Managing Director and CEO, Exset B.V. said, “We are proud to be associated with Maheshwari Electronics as their content protection and monetisation partner. This reinforces our commitment to the last cable operator wanting to digitise and I am glad and proud that an able partner like them has joined hands with us.”
“As the country goes into the final phases of digitisation, this partnership will ensure delivery of service and a next generation content protection system to the cable fraternity in the region,” said Anil Kabra, Managing Director of Maheshwari Electronics.
Under the agreement, Exset B.V. will be responsible for providing DMS, CAS and Middleware to customers/cable operators of Maheshwari Electronics for its Digital Cable Platform.
This association aims to drive governance, television commerce, advertising and magazine services in a predominantly one–way environment for its end–consumers.
DMS will allow Maheshwari Electronics to offer new services to its customers in a one-way broadcast environment; these could include magazine, shopping, Government apps.
Alex Borland, Managing Director and CEO, Exset B.V. said, “We are proud to be associated with Maheshwari Electronics as their content protection and monetisation partner. This reinforces our commitment to the last cable operator wanting to digitise and I am glad and proud that an able partner like them has joined hands with us.”
Tour operators bet big on luxury domestic travel
Mumbai: Enjoying the sunset on a private yacht or hopping on a heli-taxi service to some of the lesser-known pockets of the country, Indian travellers are seeking to explore the most exquisite travel ideas.
While luxury tourism caters to a niche market in India, tour operators expect this segment to grow by 25 per cent annually, heightened by the depreciating rupee making outbound travel costlier and an array of offers dished out by tour operators for domestic travellers.
Travel spends
“We expect the luxury domestic travel sector to grow by 20-25 per cent. In next 5-10 years, India will see a greater amount of travel spends,” said Sunil Hasija, Executive Director, TUI India. A Barclays report highlighted that lifestyle experiences such as travel have become the most popular use of wealth. About 43 per cent of high net worth individuals (HNIS) in India cited travel as their first option, the report added. The trend is bringing cheer among the travel and tourism players who are betting big on the domestic travel space.
According to industry body Assocham, the tourism industry saw a growth of 35 per cent in domestic tourists in the first six months of 2013 compared with a drop of 20 per cent during the same period last year.
Tour operators say that there is an increasing demand seen for newer destinations in the domestic circuit. Luxury villas and spas have come up to cater to this demand.
“We have seen bookings go up for regions such as Rajasthan, Andaman, Kerala, North-east and Kashmir for luxury holidays,” said Rajeev Kale, Chief Operating Officer – Domestic, Sports and Cruises, Thomas Cook (India).
Thomas Cook (India)’s domestic luxury brand ‘Indian Indulgence’ includes activities such as wildlife safaris with trained naturalists, decadent spa and wellness programmes, luxury train experiences and unique accommodation.
Travel metasearch site Wego.com has also seen a surge in domestic travel searches. “The search volumes for domestic getaways to places such as Srinagar, Mahabaleshwar, Ooty, Kumarakom, Kovalam and Darjeeling have shown an increase,” said Ashwin Jayasankar, Head – Product and Marketing, Wego India.
A luxury domestic tour package costs on an average Rs 2 lakh per couple for a five to seven-day trip, which includes hotel stay, food, other activities.
With the emphasis shifting more on unexplored and offbeat destinations and unique experience-based itineraries, hospitality players such as the Taj Group are also capitalising on this growing segment. ‘Powerfly Vacations’ of the Taj Air and Deccan Charters enables travellers to hire an aircraft for a vacation and fly straight to some of the luxury properties of Taj hotels, resorts and palaces. The services costs anything between Rs 80,000 to Rs 3 lakh per flying hour.
While luxury tourism caters to a niche market in India, tour operators expect this segment to grow by 25 per cent annually, heightened by the depreciating rupee making outbound travel costlier and an array of offers dished out by tour operators for domestic travellers.
Travel spends
“We expect the luxury domestic travel sector to grow by 20-25 per cent. In next 5-10 years, India will see a greater amount of travel spends,” said Sunil Hasija, Executive Director, TUI India. A Barclays report highlighted that lifestyle experiences such as travel have become the most popular use of wealth. About 43 per cent of high net worth individuals (HNIS) in India cited travel as their first option, the report added. The trend is bringing cheer among the travel and tourism players who are betting big on the domestic travel space.
According to industry body Assocham, the tourism industry saw a growth of 35 per cent in domestic tourists in the first six months of 2013 compared with a drop of 20 per cent during the same period last year.
Tour operators say that there is an increasing demand seen for newer destinations in the domestic circuit. Luxury villas and spas have come up to cater to this demand.
“We have seen bookings go up for regions such as Rajasthan, Andaman, Kerala, North-east and Kashmir for luxury holidays,” said Rajeev Kale, Chief Operating Officer – Domestic, Sports and Cruises, Thomas Cook (India).
Thomas Cook (India)’s domestic luxury brand ‘Indian Indulgence’ includes activities such as wildlife safaris with trained naturalists, decadent spa and wellness programmes, luxury train experiences and unique accommodation.
Travel metasearch site Wego.com has also seen a surge in domestic travel searches. “The search volumes for domestic getaways to places such as Srinagar, Mahabaleshwar, Ooty, Kumarakom, Kovalam and Darjeeling have shown an increase,” said Ashwin Jayasankar, Head – Product and Marketing, Wego India.
A luxury domestic tour package costs on an average Rs 2 lakh per couple for a five to seven-day trip, which includes hotel stay, food, other activities.
With the emphasis shifting more on unexplored and offbeat destinations and unique experience-based itineraries, hospitality players such as the Taj Group are also capitalising on this growing segment. ‘Powerfly Vacations’ of the Taj Air and Deccan Charters enables travellers to hire an aircraft for a vacation and fly straight to some of the luxury properties of Taj hotels, resorts and palaces. The services costs anything between Rs 80,000 to Rs 3 lakh per flying hour.
Essar Projects wins its maiden EPC contract from BPCL worth Rs 550 crores
Kolkata: Essar Projects Limited (EPL), a Global EPC engineering, procurement, construction company headquartered in Dubai, on Tuesday announced that it has secured a contract valued at over Rs 550 crore from Bharat Petroleum Corporation Ltd ( BPCLBSE -1.07 %) to participate in its major refinery expansion project in Kochi.
EPL has won the contract in a consortium with GR Engineering of Mumbai for the engineering, procurement & construction (EPC) of the reactor regenerator package of 2.2 MMTPA fluid catalytic cracking unit (FCCU) at the Kochi refinery, which is set to expand to 15.5 MMTPA. The project is scheduled to be completed in 24 months. Technip Shaw is the Process Licensor of this package.
With this the total number of major projects secured by EPL both domestic and overseas has gone up to eight, taking the total order book to about USD 4.1 billion. EPL is executing significant hydrocarbon projects for major companies like IOCL, Jurong Aeromatics, Matix fertilizers to name a few.
Alwyn Bowden, President & CEO, Essar Projects said in a statement, "This order from BCPL further consolidates our position in the hydrocarbons sector in India."
The scope of work and obligations comprise of project management, residual process design, residual engineering of reactor regenerator, procurement & supply of all materials, stage wise inspection including third party inspection, transportation of all the equipment & materials to work site, erection, installation, pre-commissioning, commissioning, commissioning assistance, testing for performance guarantee in presence of licensor and owner representative etc.
On the occasion Amit Gupta- CEO, hydrocarbons business of Essar Projects said, "Essar Projects secured this order amidst extremely stiff competition and demonstrates our competence and capability in delivering complex projects to our key clients in the Hydrocarbons sector."
Bharat Petroleum Corporation Limited (BPCL) - Kochi is in the process of expanding the refinery facilities from 9.5 to 15.5 MMTPA as part of the Integrated Refinery Expansion Project ( IREP) for which Engineers India Limited ( EIL) has been appointed as Project Management Consultant (PMC) for the project.
EPL has won the contract in a consortium with GR Engineering of Mumbai for the engineering, procurement & construction (EPC) of the reactor regenerator package of 2.2 MMTPA fluid catalytic cracking unit (FCCU) at the Kochi refinery, which is set to expand to 15.5 MMTPA. The project is scheduled to be completed in 24 months. Technip Shaw is the Process Licensor of this package.
With this the total number of major projects secured by EPL both domestic and overseas has gone up to eight, taking the total order book to about USD 4.1 billion. EPL is executing significant hydrocarbon projects for major companies like IOCL, Jurong Aeromatics, Matix fertilizers to name a few.
Alwyn Bowden, President & CEO, Essar Projects said in a statement, "This order from BCPL further consolidates our position in the hydrocarbons sector in India."
The scope of work and obligations comprise of project management, residual process design, residual engineering of reactor regenerator, procurement & supply of all materials, stage wise inspection including third party inspection, transportation of all the equipment & materials to work site, erection, installation, pre-commissioning, commissioning, commissioning assistance, testing for performance guarantee in presence of licensor and owner representative etc.
On the occasion Amit Gupta- CEO, hydrocarbons business of Essar Projects said, "Essar Projects secured this order amidst extremely stiff competition and demonstrates our competence and capability in delivering complex projects to our key clients in the Hydrocarbons sector."
Bharat Petroleum Corporation Limited (BPCL) - Kochi is in the process of expanding the refinery facilities from 9.5 to 15.5 MMTPA as part of the Integrated Refinery Expansion Project ( IREP) for which Engineers India Limited ( EIL) has been appointed as Project Management Consultant (PMC) for the project.
Govt allows 100% FDI in telecom
Inflow norms for defence and single-brand retail also eased; Mayaram suggestions partially accepted
New Delhi: Amid concerns over a weakening rupee, dwindling capital inflows and a widening current account deficit, the country on Tuesday moved a step closer to overhauling its foreign direct investment (FDI) policy as it lifted caps for the telecom sector and asset reconstruction firms, besides tweaking norms for 13 sectors. The limit for defence production companies was also virtually raised to 100 per cent, subject to approval from the Cabinet Committee on Security (CCS).
The decision was taken at a meeting of senior Cabinet ministers with Prime Minister Manmohan Singh.
Also decided at the meeting was that FDI cap for private insurers would be raised to 49 per cent but that would need Parliament’s approval. The FDI limit for credit information firms was raised from 49 per cent to 74 per cent — all of it may come through the automatic route, against the requirement for clearance from the Foreign Investment Promotion Board (FIPB) at present. (EASING FDI INFLOWS)
Besides these, the ministers eased FDI procedures for seven other sectors. But they stopped a little short of accepting all recommendations of the Arvind Mayaram committee, including those to raise FDI cap for news & media (current affairs) to 49 per cent from 26 per cent.
After the meeting, Commerce Minister Anand Sharma said a Cabinet note on Tuesday’s recommendations would soon be prepared. He, however, clarified that these proposals would not be taken up at the Cabinet meeting on Wednesday.
He also assured investors that their concerns over multi-brand retail would be allayed and clarifications would soon be issued. He added that his ministry’s concern over acquisition of Indian pharma companies by foreign ones would be discussed separately.
Though FDI in telecom services will be raised to 100 per cent, only up to 49 per cent could come via the automatic route. Beyond that, permission of FIPB will have to be sought.
So far as FDI in defence is concerned, it has been left to CSS to decide which FDI proposals will bring in state-of-the-art technology into the country. That way, even the proposals for foreign investment beyond 26 per cent could be considered on a case-by-case basis.
In single-brand retail, though there is no FDI limit at present, the investment has come only after FIPB clearance. This has been eased to allow up to 49 per cent investment through the automatic route. Similarly, up to 49 per cent FDI is currently allowed in petroleum and natural gas refinery, but with FIPB approval.
This, too, has been changed to automatic route, without any modification in cap. The caps on FDI in commodity exchanges, power exchanges, stock exchanges, depositories and clearing houses have been retained at 49 per cent (26 per cent FDI and 23 per cent foreign institutional investments). But procedures of approval have been eased and investments can now come through the automatic route.
The meeting also decided to remove a clause that tea and other plantation companies — in which 100 per cent FDI is allowed — have to divest 26 per cent equity in favour of Indians within five years. For this sector, up to 49 per cent FDI could come via automatic route, while that below this threshold will have to be vetted by FIPB. Courier services already enjoy 100 per cent FDI but now full investment could come via automatic route.
New Delhi: Amid concerns over a weakening rupee, dwindling capital inflows and a widening current account deficit, the country on Tuesday moved a step closer to overhauling its foreign direct investment (FDI) policy as it lifted caps for the telecom sector and asset reconstruction firms, besides tweaking norms for 13 sectors. The limit for defence production companies was also virtually raised to 100 per cent, subject to approval from the Cabinet Committee on Security (CCS).
The decision was taken at a meeting of senior Cabinet ministers with Prime Minister Manmohan Singh.
Also decided at the meeting was that FDI cap for private insurers would be raised to 49 per cent but that would need Parliament’s approval. The FDI limit for credit information firms was raised from 49 per cent to 74 per cent — all of it may come through the automatic route, against the requirement for clearance from the Foreign Investment Promotion Board (FIPB) at present. (EASING FDI INFLOWS)
Besides these, the ministers eased FDI procedures for seven other sectors. But they stopped a little short of accepting all recommendations of the Arvind Mayaram committee, including those to raise FDI cap for news & media (current affairs) to 49 per cent from 26 per cent.
After the meeting, Commerce Minister Anand Sharma said a Cabinet note on Tuesday’s recommendations would soon be prepared. He, however, clarified that these proposals would not be taken up at the Cabinet meeting on Wednesday.
He also assured investors that their concerns over multi-brand retail would be allayed and clarifications would soon be issued. He added that his ministry’s concern over acquisition of Indian pharma companies by foreign ones would be discussed separately.
Though FDI in telecom services will be raised to 100 per cent, only up to 49 per cent could come via the automatic route. Beyond that, permission of FIPB will have to be sought.
So far as FDI in defence is concerned, it has been left to CSS to decide which FDI proposals will bring in state-of-the-art technology into the country. That way, even the proposals for foreign investment beyond 26 per cent could be considered on a case-by-case basis.
In single-brand retail, though there is no FDI limit at present, the investment has come only after FIPB clearance. This has been eased to allow up to 49 per cent investment through the automatic route. Similarly, up to 49 per cent FDI is currently allowed in petroleum and natural gas refinery, but with FIPB approval.
This, too, has been changed to automatic route, without any modification in cap. The caps on FDI in commodity exchanges, power exchanges, stock exchanges, depositories and clearing houses have been retained at 49 per cent (26 per cent FDI and 23 per cent foreign institutional investments). But procedures of approval have been eased and investments can now come through the automatic route.
The meeting also decided to remove a clause that tea and other plantation companies — in which 100 per cent FDI is allowed — have to divest 26 per cent equity in favour of Indians within five years. For this sector, up to 49 per cent FDI could come via automatic route, while that below this threshold will have to be vetted by FIPB. Courier services already enjoy 100 per cent FDI but now full investment could come via automatic route.
Monday, July 15, 2013
Dabur India, Hindustan Unilever's tech route to rural markets
New Delhi: With urban consumers cutting back on their spending spree, fast-moving consumer goods companies have redoubled efforts to tap into rural India in 2012-13. In their latest annual reports, Dabur India and Hindustan Unilever (HUL) have both highlighted why the rural markets are so critical and what they are doing to better their rural sales.
Going technical
HUL’s decade-old Project Shakti received a technology boost in 2012. About 40,000 Shakti Ammas were equipped with a basic smartphone. These smartphones had specifically designed software enabled them to take and bill orders, manage inventory and receive updates on promotional schemes run by the company. This improved their efficiency The Shakti workforce rose to 48,000 in 2012, up by around 3,000 from the year before. Project Shakti equips women with the basic entrepreneurial skills and facilities needed to set up and market FMCG products.
If HUL depended on its Shakti Ammas to connect with consumers, Dabur India embraced the idea of getting rural folk to sample products and experience the benefits for themselves. The idea was to get word-of-mouth advertising of product benefits.
The company made the most of fairs and melas around the harvest seasons when purchasing power is high. It also conducted school health camps to boost its toothpaste and chyawanprash portfolio and beauty pageants, to showcase its ayurvedic beauty products.
That’s not to say the company ignored the power of the mobile phone. Dabur’s rural sales force used mobile phones to report sales. Phones were equipped with maps showing the demographics and market potential of each locality, to improve rural coverage. Over two years, Dabur’s rural strategies saw it doubling the villages under its coverage to 30,091.
Distribution
For any FMCG company, the efficiency and reach of its distribution systems is the most important tool to improve profits and drive sales. In this regard, HUL has a giant coverage reaching out to over 2 million outlets. To improve connect and with its distributors , HUL set up a helpline for its distributors and retailers to address problems or questions quickly.
Dabur, meanwhile, armed more than half of its urban sales force with hand-held devices to generate data, which is then used to decipher buying patterns and customise selling strategies. IT has also been used to provide information to, and generate feedback from doctors on Dabur’s formulations and ayurvedic products.
Going technical
HUL’s decade-old Project Shakti received a technology boost in 2012. About 40,000 Shakti Ammas were equipped with a basic smartphone. These smartphones had specifically designed software enabled them to take and bill orders, manage inventory and receive updates on promotional schemes run by the company. This improved their efficiency The Shakti workforce rose to 48,000 in 2012, up by around 3,000 from the year before. Project Shakti equips women with the basic entrepreneurial skills and facilities needed to set up and market FMCG products.
If HUL depended on its Shakti Ammas to connect with consumers, Dabur India embraced the idea of getting rural folk to sample products and experience the benefits for themselves. The idea was to get word-of-mouth advertising of product benefits.
The company made the most of fairs and melas around the harvest seasons when purchasing power is high. It also conducted school health camps to boost its toothpaste and chyawanprash portfolio and beauty pageants, to showcase its ayurvedic beauty products.
That’s not to say the company ignored the power of the mobile phone. Dabur’s rural sales force used mobile phones to report sales. Phones were equipped with maps showing the demographics and market potential of each locality, to improve rural coverage. Over two years, Dabur’s rural strategies saw it doubling the villages under its coverage to 30,091.
Distribution
For any FMCG company, the efficiency and reach of its distribution systems is the most important tool to improve profits and drive sales. In this regard, HUL has a giant coverage reaching out to over 2 million outlets. To improve connect and with its distributors , HUL set up a helpline for its distributors and retailers to address problems or questions quickly.
Dabur, meanwhile, armed more than half of its urban sales force with hand-held devices to generate data, which is then used to decipher buying patterns and customise selling strategies. IT has also been used to provide information to, and generate feedback from doctors on Dabur’s formulations and ayurvedic products.
IVRCL bags orders worth Rs 1,098 crore
Hyderabad: City-based infra player IVRCL Limited on Friday said that its building, water and power divisions had bagged total orders worth Rs 1,097,57 crore.
The building division bagged four orders worth Rs 573,12 crore, of which one is from Zein Advanced Technology Co. WLL, Kuwait while the rest are domestic orders. The nature of the work in the international order includes design, construction and maintenance for truck parking lots and the completion period is two years from commencement.
The company said that the water division of the company had bagged three orders worth Rs 471,82 crore. The orders have been awarded by Anantapuram Municipal Corporation, Orissa Water Supply and Sewerage Board and Assam Urban Infrastructure Investment Programme (AUIIP), government of Assam.
Of the Rs 471,82 crore total orders, Rs 311,15 crore had been awarded by Orissa water supply and sewerage board. The nature of work includes construction of sewers for Bhubaneswar sewerage istrict-VI and the completion period is three years from the start of the project.
The power division of the infra player has three bagged orders worth Rs 52,63 crore. While one order has been awarded by by Haryana Vidyut Prasaran Nigam Limited, the other two have been awarded by Transmission Corporation of Andhra Pradesh Limited.
The building division bagged four orders worth Rs 573,12 crore, of which one is from Zein Advanced Technology Co. WLL, Kuwait while the rest are domestic orders. The nature of the work in the international order includes design, construction and maintenance for truck parking lots and the completion period is two years from commencement.
The company said that the water division of the company had bagged three orders worth Rs 471,82 crore. The orders have been awarded by Anantapuram Municipal Corporation, Orissa Water Supply and Sewerage Board and Assam Urban Infrastructure Investment Programme (AUIIP), government of Assam.
Of the Rs 471,82 crore total orders, Rs 311,15 crore had been awarded by Orissa water supply and sewerage board. The nature of work includes construction of sewers for Bhubaneswar sewerage istrict-VI and the completion period is three years from the start of the project.
The power division of the infra player has three bagged orders worth Rs 52,63 crore. While one order has been awarded by by Haryana Vidyut Prasaran Nigam Limited, the other two have been awarded by Transmission Corporation of Andhra Pradesh Limited.
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