Fiama Di Wills recently launched a range of transparent gel bathing bars. A first of its kind, a transparent liquid gel has been solidified into a bathing bar so that consumers get a superior bathing experience. The shower gel in a bathing bar format which has been crafted through a unique and patented freezing technology. Backed by deep consumer insights, this proprietary gel bathing bar is a result of years of extensive research and development by the scientists at the ITC R&D Centre.
Uniquely crafted, these Gel Bathing Bars are shaped like dew drops, have a transparent look, rich creamy lather, and a great long-lasting fragrance. These bathing bars are dermatologically tested and proven mild and contain the goodness of natural exotic extracts like Peaches, Avocadoes, Sea Weed and lemongrass. Launched in two variants that offer specific different skin benefits, are:
Mild Dew - Contains extracts of peach and avocado which moisturise the skin
Clear Springs - Contains extracts of lemongrass & sea weed which gives Clear skin
The Fiama Di Wills transparent Gel Bathing Bars are available at an attractive price of Rs. 25 for 110 grams. This differentiated range of bathing bars offers the consumer a delightful bathing experience.
Pantaloon Retail India, a part of Kishore Biyani-run Future Group, today said it has raised about Rs 500 crore through the issue of equities to qualified institutional buyers (QIBs).
The committee of directors (of the board), at its meeting held today, approved allotment of 1.58 crore shares under qualified institutional placement basis at a price of Rs 316 a piece aggregating to Rs 499.98 crore, Pantaloon Retail said in a filing to the Bombay Stock Exchange (BSE). Earlier in July this year, shareholders of the company had given their approval for raising funds to the tune of Rs 1,000 crore through one or more placements of equity shares or fully convertible debentures or any securities (other than warrants) that are convertible into equity shares. Shares of Pantaloon Retail closed at Rs 341.95, up 3.11 per cent from previous close on the BSE
Despite the economic slowdown, Nestle India, the food and beverages major, registered net sales of Rs 3,780 crore for January-September 2009, a 17 per cent jump as compared to the same period a year earlier.
In a presentation to its analysts, the company attributed the growth to “strong domestic sales and volumes”. For the nine-month period ended September 30, Nestle saw a sustained growth over the quarters, with net sales rising 16 per cent in Q1 (Jan-March); 16.8 per cent in Q2 (April-June) and 17.6 per cent in Q3 (July-September). However, the effects of the slowdown did show up. During the comparable periods a year earlier, the company’s net sales showed growth of 26.4 per cent, 23.5 per cent and 22.2 per cent, respectively.
The Nestle India management says its strong and diversified portfolio helped it tide over the financial crisis. For the nine-month period ended September 30, beverages accounted for 14.1 per cent of the company’s revenue, down 2.2 percentage points as compared to the same period last year. The prepared dishes and cooking aids segment registered a growth of 1.6 percentage points, to account for 25.5 per cent in the period. Its main revenue earner, the milk products & nutrition category, was almost flat, accounting for 46.3 per cent of net sales.
Nestle’s exports, though, did take a beating from the slowdown and indicated a dip of 8.9 per cent in volume terms and a decrease of 6.6 per cent in value terms, when compared to the nine-month period of 2008.
She said India is a large vibrant market and should focus on developing India-specific strategies to sustain it
New Delhi: US-based beverages major Pepsico on Tuesday said India is among its top three markets and the company will continue to build India-specific strategy to sustain growth.
“For food processing companies like us, I think India represents top three markets in the world. India is a very different market from any western developed market,” Pepsico Chairman and chief executive officer Indra Nooyi said on the eve of its first-ever board meeting in Mumbai. This is the second time PepsiCo’s global board meeting will be held outside the US. The first one was held in Mexico five years ago.
She said India is a large vibrant market and should focus on developing India-specific strategies to sustain it.
“You cannot just import the western solutions to India. You have to crack solutions, which are right for India, right for the people, right for the country, right for its farmers,” she said.
On its global board meeting in Mumbai this month, Nooyi said the event will be a “historic” one as it is an opportunity to highlight issues and propose investments in India.
“I think it is going to be a historic board meeting... Show them (board members) the glory of India, the issues of India, so that we propose solutions, investments in India. They understand the context for which we are proposing thats why we have brought them to India,” she added.
Press Trust Of India / November 19, 2009, 0:43 IST
FMCG major ITC, the largest player in the domestic cigarette market, has increased prices of two of its brands, India Kings and Benson & Hedges, by Rs 10 and Rs 5, respectively.
Sources said the company had increased the maximum retail price of a pack of 20 sticks of India Kings to Rs 110 from Rs 100. It has also hiked the price of a pack of 20 sticks of Benson & Hedges to Rs 105 from Rs 100.
According to industry analysts, the total market for branded cigarettes in India is around Rs 20,000 crore and ITC, with a portfolio of popular brands like Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake, has around 80 per cent share of the market.
When contacted, ITC spokesperson confirmed the price hike but declined to provide further details.
Pepsico India chairman Sanjeev Chadha, who took charge as Pepsico India head three years ago, said there would be three greenfield plants on the beverages side
New Delhi: Focusing on India as a rapidly growing market, US soft drinks giant Pepsico would pump in an estimated Rs700 crore to set up four new food and beverages projects by 2012.
Just Days after its high-profile global board meeting that was hosted for the first time in the country earlier this month, Pepsico India chairman Sanjeev Chadha said “going forward, over the next three years, certainly we will be putting up new plants.”
Chadha, who took charge as Pepsico India head three years ago, said there would be three greenfield plants on the beverages side. “On the food side, at least there would be one more plant,” he said, but did not specify the quantum of investment involved.
He said on an average it costs around $30 million to set up a beverages plant and around $50-60 million a food plant.
Going by these estimates, Pepsico, whose global operations are headed by India-born Indra Nooyi, may have to shell out around $150 million (Rs700 crore)to set up these plants. The sites for the plants are yet to be finalized.
“We are in the process of searching and identifying, through a network analysis, as to where the location of these plants would be,” he added.
Since its entry in India 19 years ago, the company has invested over $1 billion in the country. This includes $600 million that is being invested.
Chadha said Pepsico is in the process of pumping in around $200 million this year itself.
Currently, Pepsico has 43 soft drinks plants in India, out of which 28 are company owned. It has three plants for the snacks business.
The new plants will be in addition to the expansion that will take place at the existing plants.
Chadha said Pepsico’s global board expects the company here to continue with robust growth, which has been tripling every five years.
“We have always talked about tripling our business in five years time and we are consistent about it. If you take any five years, we will be tripling that business in that five years time,” he added
“We will be definitely tripling our business (in value) over 2007 to 2012,” Chadha said.
The Rs 588-crore Gillette India Ltd (GIL) is shedding its premium image with a more than 50 per cent reduction in the price of its Mach 3 razors through a new variant under its franchise.
It has introduced a new Mach 3 razor at a price point of Rs 125 while its premium Mach 3 Turbo razors would continue to sell at Rs 315.
Ms Sonali Dhawan, Director, P&G, Beauty and Grooming, said, “We wanted to make the Mach 3 brand more affordable and in the past have also dropped the price of the single-blade cartridges under the Mach 3 franchise.”
However, the price of single-blade cartridges was dropped 15 per cent (from Rs 95 to Rs 80) compared with the high-end razors where a new brand under Mach 3 would be sold without the ‘turbo’ rubberised effect at almost half the price of the Mach 3 Turbo razor.
The Rs 1,750-crore blades and razors category is currently dominated by Gillette at the top-end of the market, while family-owned Indian companies such as the House of Malhotra and Vidyut comprise the mass-end of the market.
Gillette India is now trying to capture the mass-end of the category and would also be focussing aggressively on the rural market in the future.
“We already have a number of brands such as Vector and Wilkinson Sword at the lower end of the market which compete with the Indian companies. These brands are also present in the rural market but going forward, we plan to have a significant presence in rural India,” she added.
With affordability being the key to reach out to the belly of the market, Gillette is now playing the price card to garner more consumers.
As Ms Dhawan says, “Today, we may have the lion’s share of the market, but we still want more people to reach us; for that the product has to become more affordable. Indian men are more aware of how they look today and we believe that women can influence men as most of them prefer clean shaving men.”
India’s largest consumer products company, Hindustan Unilever Ltd, or HUL, will launch a day-long advertising campaign worth up to Rs10 crore, and spanning 1,800 minutes across 10 channels on the Star Network on 17 September, said an executive at the channel as well as an official at a media buying firm.
Publicity blitz: HUL products in a store. The firm will repeat the day-long campaign on Zee channels on 24 September. Prashanth Vishwanathan / Bloomberg
The campaign will block all other advertising on the channel, an exercise that will be repeated on 24 September on the Zee Network. The Zee campaign, whose duration could not be immediately confirmed, will cost Rs8-9 crore, said an official at the channel on condition of anonymity.
The ad campaigns for Star India channels will run on Star Plus, Star One, Star Gold, Star Utsav, Star Movies, Star World, Channel V, Star Jalsha, Star Pravah and Star Vijay.
The campaign will promote HUL products such as Lifebuoy, Dove and Ponds, among others. “Advertising for Lifebuoy is likely to take up a chunk of this time, approximately 60%,” said Kevin Vaz, executive vice-president (sales and marketing), Star India.
This is the second time Star India has offered up its network to a single advertiser; the first time was when brand Hutch became Vodafone.
“We are pleased to be a part of an idea that will exclusively reach us to more than 100 million viewers in India at the same time throughout the day. It is innovative and is expected to bring stronger engagement with consumers,” said Srikanth Srinivasamadhavan, general manager (media services), HUL.
HUL will repeat the exercise on the Zee Network, according to media buying houses which received a letter from the channel, expressing its inability to accept any other advertisements on that day. “This will be done from morning 6am to 12 midnight, we will only be running ads for HUL brands across all 25 channels on the Zee network,” said Joy Chakraborthy, chief revenue officer, Zee Entertainment Enterprises Ltd.
The aggressive promotion by Hindustan Unilever Ltd of its Lifebuoy product range as a shield against swine flu may be paying off as sales improve, but it’s drawing flak from some critics who say the ad campaign is misleading and an attempt to cash in on public fear of the potentially fatal infection.
Hindustan Unilever, or HUL, India’s largest consumer goods company by sales, is plugging Lifebuoy soaps and hand washes in newspaper advertisements as products “proven to protect from H1N1 type virus”. “Wash away swine flu germs,” goes the tag line on advertisements running across media platforms, including television and print.
The flu, transmitted by inhaling infected droplets expelled by coughing or sneezing or by contact with contaminated hands or objects, has claimed 508 lives in India, where at least 14,500 have tested positive for the H1N1 virus that causes the disease, PTI reported on Wednesday.
“To prevent spread, people should cover their mouth and nose when coughing or sneezing, stay home when they are unwell, clean their hands regularly, and avoid crowded areas,” says the World Health Organization on its website.
Lifebuoy sales seem to have won a lift as consumers take precautions to guard against the risk of swine flu, which claimed its first life in India in August when a Pune teenager died after being infected. “The ads are all over the media and it has definitely created an impact,” said a Gurgaon-based HUL distributor who didn’t want to be named. “The sales of Lifebuoy have gone up by at least 30-40% in the last four months.”
Plugging in: The Lifebuoy website has a section devoted to swine flu.
But HUL’s campaign hasn’t gone down well with some experts and consumer forums. “Washing hands with soap and water definitely reduces the chances of getting the flu, but promoting one brand as the solution is not fair,” said Dharam Prakash, secretary general, Indian Medical Association, which used to endorse Lifebuoy once. “These are all promotional strategies. Yes, we used to endorse Lifebuoy almost a decade ago, but not now,” he said.
Launched in 1894, Lifebuoy has been plugged in advertisements over the years as a product that stands for good health and hygiene. The websitewww.lifebuoy.com has a section devoted to swine flu.
“Playing on fear and psychology of consumers is an old trick used by marketeers to sell their product in time of crisis or emergency situation, and I think it is very unethical to do so,” said N. Bhaskara Rao, chairman, Centre for Media Studies, a New Delhi-based multidisciplinary research organization. “I strongly believe that until and unless a company has the Indian Medical Association or a related industry body to support the claim based on research, it should not be an advertisement.”
According to HUL, the campaign reinforces the “core proposition” of Lifebuoy as a shield against germs. “Lifebuoy has been successfully tested in an internationally recognized lab on effectiveness in protecting against influenza type A H1N1 (swine flu) virus and that is the basis of the claim made by us,” a spokesperson for HUL said. The spokesperson declined to disclose how much money HUL had spent on the campaign, saying the company doesn’t report advertising spending on individual brands.
Nitin Paranjpe, HUL’s chief executive officer and managing director, spoke at the India Economic Summit on Tuesday about the “keep your hands clean” campaign. Paranjpe said the campaign was part of the company’s concept of “doing well while doing good”. “So we want to do good to society, but we want to do in a manner that will also be good for our business,” he said.
Future Brands managing director and chief executive Santosh Desai says swine flu has immediate currency, so it’s understandable—and effective— when brands communicate the message that consumers should wash their hands to guard against the virus.
“But when brands exaggerate a claim by representing the brand as the only solution to the problem, which in this case is swine flu, then the ad becomes dodgy and consumers need to be protected from such messages,” he said.
To be sure, HUL has its supporters, including the Advertising Standards Council of India, which is for encouraging any ad spreading health awareness.
We are looking at categories where we can make a difference’
Vinita Bali, MD, Britannia Industries, on product innovation, cost-cutting and brand management..
There’s a time in the evolution of categories when consumers make the switch from having to make it at home to going out and buying it.
Bijoy Ghosh Vinita Bali, Managing Director, Britannia Industries Ltd, at the launch of health drink Actimind
Vinay Kamath
Vinita Bali, Britannia Industries Ltd’s Managing Director, is on a whirlwind trip to Chennai. She’s in the city to participate in the Foodpro as well as launch Britannia’s new milk drink for children, ActiMind. Bali is gung-ho on the growth of the dairy business and says Actimind is the first in a pipeline of products planned in dairy. Post launch, Bali, a former worldwide marketing director of the Coca-Cola Co, who joined Britannia a little over four years ago, spoke to Brand Line on a variety of issues: the company’s strategy for biscuits to maintain its one-third share of the organised biscuits market, consumer trends and insights driving the company, spiralling commodity prices and its small pack strategy. Excerpts:
Dabur India has relaunched its air freshener range of Odonil Blocks. The product is now available in improved fragrances of Orchid Dew, Mystic Rose, Lavender Meadows and Jasmine Mist. It is priced at Rs 20, Rs 27 and Rs 33 for the 50 gm, 75 gm and 10 0 gm packs respectively. It can be used in bathrooms and cupboards.
Wipro Consumer Care and Lighting (the FMCG arm of the company) announced today that it has acquired the Yardley businesses for Asia, Australasia and the North and West African markets for close to Rs 214 crore from the UK-based Lornamead Group, which currently owns the brand.
The Group has, however, retained its Yardley businesses in Europe and the Americas.
The Yardley deal, to be fully funded through internal accruals, is on a run rate business of $24 million (Rs 113 crore) for this fiscal and the transaction is expected to be completed by mid-December, said Mr Vineet Agrawal, President, Wipro Consumer Care and Lighting.
The 239-year-old English brand, famous for its signature fragrances English Lavender, Lily of the Valley and English Rose, has products across various categories such as talcum powders, perfumes and soaps. Wipro plans to add deodorants, body washes, shaving creams and after-shaves to the range.
The brand has had a strong presence in the West Asian markets, with almost 70 per cent of Lornamead’s revenues coming from the region.
With this acquisition, Wipro Consumer Care would see its revenues from the West Asian countries double at around Rs 141 crore from the current Rs 70 crore, said Mr Dipak Kumar Bohra, General Manager, Finance, Wipro Ltd.
Brand Yardley in India
“Though Yardley’s presence in India is still small (about 20 per cent of its Asian revenues), we want to expand it dramatically,” said Mr Agrawal.
The transaction, he said, would add a strong brand to its current portfolio of brands comprising Santoor, Chandrika, Glucovita, Unza and Northwest. The company acquired Singapore-based Unza for Rs 1,010 crore in July 2007.
The company hopes to take Yardley to at least 50,000 outlets soon. Yardley would now be Wipro’s most premium brand on retail shelves.
Consolidated Net Sales and Operating Income has risen by 16.8% to Rs. 1,723.9 crores from Rs. 1,475.9 crores. Consolidated Net Profit has increased by 104.1% to Rs. 268.4 crores from Rs. 131.5 crores. Standalone Net Sales has increased by 18.6% to Rs. 1,386.5 crores from Rs. 1,168.9 crores. Standalone Net Pofit has increased by 109% to Rs. 254.3 crores from Rs. 121.7 crores.
For the Half Year ended September 30, 2009
Consolidated Net Sales and Operating Income hased increased by 17.1% to Rs. 3,184.2 crores from Rs. 2,718.6 crores. Consolidated Net Profit after Minority Interest has increased by 87% to Rs. 444.5 crores from Rs. 237.7 crores . Standalone Net Sales increased by 17.8% to Rs. 2,551.3 crores from Rs. 2,164.9 crores. Standalone Net Pofit has increased by 90.6% to Rs. 418.8 crores from Rs. 219.7 crores.
The Board of Directors recommended the payment of an interim dividend of Rs. 8.50 per share (85%). The company distributed an interim dividend of 65% for H1-FY2009. Total Dividend of 175% was distributed in FY2009. The dividend payout ratio was 54.19% in FY2009.
ITC delivered yet another quarter of strong performance with Post tax profits growing by 26% despite a challenging business environment. With the exception of the hotels segment, which is reeling under the impact of the global economic slowdown, all businesses posted strong bottom line growth. Cigarettes, FMCG Others, Agri and Paper & Packaging businesses grew handsomely in net revenues by 21%, 14%, 19% and 13% respectively.
Profitability improved on the back of better product mix, smarter sourcing of inputs and a series of targeted cost management actions. Investments in brand building in the Personal Care and Branded Foods businesses continue to impact the segment results of ‘FMCG-Others’.
Pre-tax profits and post tax profits at Rs 1492 crores and Rs 1010 crores respectively grew by 26% over the same period last year. Earnings Per Share for the quarter stood at Rs.2.67.
Dabur India Q2 Net Profit Surges 30.7% To Rs 140.34 Crores
Monday, October 26, 2009
Consolidated Q2 Revenue Up 22.4% to Rs 855.06 Crores
EBIDTA Grows at 33.7%
Consolidated Q2 Revenue Up 22.4% to Rs 855.06 Crores
EBIDTA Grows at 33.7%
Dabur India Ltd continued to move ahead on the growth trajectory in the second quarter of the 2009-10 financial year, reporting its strongest-ever growth in 18 quarters. Riding on strong volume-driven growth across its key categories, Dabur ended the second quarter of 2009-10 with a 22.4% jump in Revenue at Rs 855.06 Crores as against Rs 698.45 Crores a year earlier. The company also reported a 30.7% surge in consolidated Net Profit during the quarter at Rs 140.34 Crores, up from Rs 107.41 Crores a year ago. EBIDTA margin also reported an improvement of 183 basis points to 21.8% for the second quarter of 2009-10.
