Wednesday, December 1, 2010
A DIFFERENT TEA WAR:-
The days of cold drinks are now coming to an end. Now the era of cold tea is entering into Indian market. In metro cities, more than 60%peoples preferred cold tea in place of cold drinks. So, why our cold drink majors are keep quite? That’s why major rivalries are entering in this segment. You are right thinking, I am talking about Coke India and PepsiCo. The both companies are entering into iced tea segment in India. But this time they are not alone, these companies are entering with joint ventures with other companies.
The world’s largest food company, Nestle shakes hands with the world’s largest beverage company Coca Cola with the name of Beverage Partners Worldwide (BPW). They launched their first ready to drink beverage, Nestea , in India. PepsiCo is not very far, they made a 50:50 joint venture with Tata Global Beverage in the arena of non-carbonated ready to drink health beverages with a mandate to do business globally. Add to this another joint venture for Lipton Iced tea, where PepsiCo has an alliance with unilever.
The auction begins against a backdrop where the health and wellness beverages category, which these three ventures target, is predicted to grow at 22 percent per year and reach Rs. 17350 crore by 2015, according to consulting company Tata Strategic Management Group. As BPW launched Nestea beginning with Mumbai, a market that it claims is the country’s largest for iced tea.
At the present time, one out of 10 customers visiting coffee chains ask for iced tea, the market is still niche and moving at a painfully slow pace, say rivals. According to experts, it is very tough category in India, because the Indian peoples are still looking for hot tea. But if you considers what the TSMG report says, “Yoghurt drinks, fruit juice, energy and sports drinks are likely to be the fastest growing beverage categories’, reaching eight time their aggregated current size by financial year 2015.”
The future is unpredictable, but one thing is very clear the we peoples will enjoy the different tastes of iced teas. On the behalf of THE WORLD OF FMCG, I Pravin Tripathi wishing COKE and PEPSICO a great luck.
Thursday, November 25, 2010
Namaste Europe
New Delhi, Nov 16, 2010: Dabur India Ltd today acquired 100% equity in Namasté Laboratories LLC and its three subsidiary companies -- Hair Rejuvenation & Revitalization Nigeria Limited, Healing Hair Laboratories International, LLC, and Urban Laboratories International, LLC along with its South African arm – for $100 million, in an all-cash deal. This marks Dabur’s entry into the fast-growing $1.5-billion ethnic hair care products market in U.S., Europe and Africa.
“This acquisition is in line with our strategy to build a global presence in the international FMCG market,” Dabur India Ltd. Chairman Dr. Anand Burman said. “The Namasté Group has a complementary product mix that can be easily integrated with Dabur and will also serve as a gateway to the US market for our portfolio of consumer products. This transaction will also enhance our profitability, increase stakeholder value and substantially add to Dabur’s already strong presence in Africa, serving as one of the key pillars in strengthening our competitive position in the African continent.”
The transaction is expected to be completed by the end of the 2010 calendar year, subject to regulatory approvals in the US. Mr. Gary Gardner, founder and CEO of Namasté, along with the well experienced management team will continue to run the business as a wholly-owned subsidiary of Dermoviva Skin Essentials Inc -- a subsidiary of Dabur India Ltd. Namasté’s North American sales team will also remain in place, and its existing relationships with retailers, wholesalers, distributors and suppliers will not change as a result of this transaction.
Founded in 1996 to fulfill the needs of the health-conscious consumers of African descent, Namasté Laboratories offers a range of products developed with natural ingredients. Namasté markets a portfolio of products under the Organic Root Stimulator® brand and is one of the leading marketers of hair and beauty products for women of colour. The company controls a 12% market share in the US and enjoys significant market positions in many countries in Africa, the Middle East, Europe and the Caribbean region of North America. It has a strong multi-channel distribution platform across the US in mass, retail, beauty stores and salons.
"We are very excited about this acquisition as it opens up new vistas for our burgeoning overseas business. This transaction will mark Dabur's entry into the hair care market in Africa and add to our already substantial and growing oral care and skin care business in the African continent,” Dabur India Ltd Group Director Mr. P. D. Narang said. “We expect this transaction to provide a tremendous platform for value creation in both the US and Africa. With this acquisition, nearly 25% of Dabur's consolidated revenue would be generated overseas.”
“Over the last few years, Dabur has been following a very disciplined and focused approach to identify acquisitions that represent a strong fit with our business,” Dabur India Ltd Chief Executive Officer Sunil Duggal said. “We have also developed strong processes to manage and integrate these acquisitions, as demonstrated in the successful integration of Balsara, Fem and Turkey's Hobi Kozmetik. We are confident that the opportunities for capitalizing on the strengths of Namasté’s business across our international operations are significant.”
"The entire Namasté management team is excited to be joining forces with Dabur," said Namasté founder and CEO Gary Gardner. "In Dabur, we have found a strategic partner who will help realize our vision of becoming the hair care brand of choice for people of colour worldwide. With their presence in Africa, and with our knowledge of the consumer of African descent, we look forward to building a global presence rooted firmly on the African continent. We believe this partnership will thrive because the two companies complement each other so well and because there is a mutual respect. We know our employees, customers, distributors and retailers will benefit from this great growth opportunity.”
“This acquisition is in line with our strategy to build a global presence in the international FMCG market,” Dabur India Ltd. Chairman Dr. Anand Burman said. “The Namasté Group has a complementary product mix that can be easily integrated with Dabur and will also serve as a gateway to the US market for our portfolio of consumer products. This transaction will also enhance our profitability, increase stakeholder value and substantially add to Dabur’s already strong presence in Africa, serving as one of the key pillars in strengthening our competitive position in the African continent.”
The transaction is expected to be completed by the end of the 2010 calendar year, subject to regulatory approvals in the US. Mr. Gary Gardner, founder and CEO of Namasté, along with the well experienced management team will continue to run the business as a wholly-owned subsidiary of Dermoviva Skin Essentials Inc -- a subsidiary of Dabur India Ltd. Namasté’s North American sales team will also remain in place, and its existing relationships with retailers, wholesalers, distributors and suppliers will not change as a result of this transaction.
Founded in 1996 to fulfill the needs of the health-conscious consumers of African descent, Namasté Laboratories offers a range of products developed with natural ingredients. Namasté markets a portfolio of products under the Organic Root Stimulator® brand and is one of the leading marketers of hair and beauty products for women of colour. The company controls a 12% market share in the US and enjoys significant market positions in many countries in Africa, the Middle East, Europe and the Caribbean region of North America. It has a strong multi-channel distribution platform across the US in mass, retail, beauty stores and salons.
"We are very excited about this acquisition as it opens up new vistas for our burgeoning overseas business. This transaction will mark Dabur's entry into the hair care market in Africa and add to our already substantial and growing oral care and skin care business in the African continent,” Dabur India Ltd Group Director Mr. P. D. Narang said. “We expect this transaction to provide a tremendous platform for value creation in both the US and Africa. With this acquisition, nearly 25% of Dabur's consolidated revenue would be generated overseas.”
“Over the last few years, Dabur has been following a very disciplined and focused approach to identify acquisitions that represent a strong fit with our business,” Dabur India Ltd Chief Executive Officer Sunil Duggal said. “We have also developed strong processes to manage and integrate these acquisitions, as demonstrated in the successful integration of Balsara, Fem and Turkey's Hobi Kozmetik. We are confident that the opportunities for capitalizing on the strengths of Namasté’s business across our international operations are significant.”
"The entire Namasté management team is excited to be joining forces with Dabur," said Namasté founder and CEO Gary Gardner. "In Dabur, we have found a strategic partner who will help realize our vision of becoming the hair care brand of choice for people of colour worldwide. With their presence in Africa, and with our knowledge of the consumer of African descent, we look forward to building a global presence rooted firmly on the African continent. We believe this partnership will thrive because the two companies complement each other so well and because there is a mutual respect. We know our employees, customers, distributors and retailers will benefit from this great growth opportunity.”
Now Taste Dabur Chyawanprash In Orange & Mango Flavours
In the biggest-ever innovation in the Chyawanprash market, Dabur India Ltd – India’s largest Ayurvedic and natural healthcare company – today launched its flagship healthcare brand Dabur Chyawanprash in two new fruit-flavoured variants – Dabur Chyawanprash Orange and Dabur Chyawanprash Mango flavours.
Dabur India Ltd has also roped in popular Bhojpuri cine star Ravi Kishan for consumer-connect and brand building initiatives for Dabur Chyawanprash. Ravi Kishan has been roped in to lead Dabur Chyawanprash’s effort in spreading awareness about need for immunity through its various below-the-line mass activities, like consumer contact programs, dealer meets etc, in Bihar and Uttar Pradesh.
“This marks two new firsts for Dabur Chyawanprash and for the healthcare industry in India. Consumers have always sworn by the health benefits of Dabur Chyawanprash and we are now offering the same immunity and health benefits of Dabur Chyawanprash in a tastier form with the launch of Orange and Mango flavours. This launch would go a long way in expanding the consumer base for this age-old health tonic,” said Dabur India Ltd Category Head-health Supplements Mr. Praveen Jaipuriar.
Friday, September 3, 2010
"INDIAN MARKET"- A TWO WAY CONCEPT
Now, we are going to make some study about the nature of Indian market. In a simple words we can say that the Indian market is a two way concept. For the same product there are several demands at different area. The major cause of it is Heterogeneity of Indian market. It is divided into two kind of market. 1)Rural Market and 2)Urban market. The nature and characteristic of both kind of market is very different from each other. One side, the customers of urban markets are looking for a good quality and brand name, but at the same time, the customers of semi-urban and rural areas are looking for a good quality in cheaper price. Due to such kind of heterogeneity of market, no any company can produce only one product in the market.
Proctor and Gamble,a leading FMCG company of world has changed his strategy to lead Indian Market. The very popular detergent brand "Tide" has been introduced by the company as compare to Surf Excel of HUL. But for leading the rural market, the company diversify it's product line and introduce a 200gm economy pack of this detergent at Rs. 10.This strategy makes the brand an all rounder. Now, it works effective in both formats of market as well as only one single brand of P&G has been able to compete all the economy and premium brands of HUL. This is called the dual concept of Indian market.
The Five Basic Questions asked by a rural customer in India:-
1)What is the price of the product?
2)Is there any free scheme with it?
3)Give me some more discount on MRP.
4)If the price of your product is same as the other branded product, than I will go for that product.
5)Good Packaging. ( Because they wants to use the empty packs for other use).
Five Basic Questions Asked By An Urban Customer:-
1)What is the company of the product?
2)Show me the contains?
3)Is it latest manufactured or not?
4)Is there any guarantee or warranty with the product?
5)Show me some latest manufactured.
This is all about the dual concept of Indian market. It is very difficult to make coordination between both the market, but the marketer who is able to make it will become the leader of market.
Example- Dabur Chyawanprash, Clinic Plus Shampoo, Tide Detergent, Hero Honda Motorbike, Vimal Garments, Reliance Telecommunication etc.
Proctor and Gamble,a leading FMCG company of world has changed his strategy to lead Indian Market. The very popular detergent brand "Tide" has been introduced by the company as compare to Surf Excel of HUL. But for leading the rural market, the company diversify it's product line and introduce a 200gm economy pack of this detergent at Rs. 10.This strategy makes the brand an all rounder. Now, it works effective in both formats of market as well as only one single brand of P&G has been able to compete all the economy and premium brands of HUL. This is called the dual concept of Indian market.
The Five Basic Questions asked by a rural customer in India:-
1)What is the price of the product?
2)Is there any free scheme with it?
3)Give me some more discount on MRP.
4)If the price of your product is same as the other branded product, than I will go for that product.
5)Good Packaging. ( Because they wants to use the empty packs for other use).
Five Basic Questions Asked By An Urban Customer:-
1)What is the company of the product?
2)Show me the contains?
3)Is it latest manufactured or not?
4)Is there any guarantee or warranty with the product?
5)Show me some latest manufactured.
This is all about the dual concept of Indian market. It is very difficult to make coordination between both the market, but the marketer who is able to make it will become the leader of market.
Example- Dabur Chyawanprash, Clinic Plus Shampoo, Tide Detergent, Hero Honda Motorbike, Vimal Garments, Reliance Telecommunication etc.
Saturday, August 21, 2010
THE TIME MARKETING
Time marketing is a very latest concept of marketing practice. In very simple words, the Time Marketing refers to "Introduced your Product, Before your Competitors". In the modern era, there is a lot of implementation of time marketing. Suppose, you are a marketer and you have develop a fine marketing plan, but due to any reason, same kind of product with same marketing plan, your competitor has been introduced in the market , then what will happens with you? At the time you have nothing to do. This is called time marketing.
Time marketing focus on open your mind with your eyes and ears, don't give a single chance to your competitor. There is also a reverse effect of time marketing. Time marketing not only suggest you to introduced your product before others but also it refers to wait for a suitable time for introduce your product. It depends on balancing of time in the field of marketing.
The implementation of time marketing is much more in film industry. They properly use time marketing before releasing their latest film. Like film industry, there are also many implementation of time marketing in all other industries.
In India, in the year 2003, coke has been introduced a 200ml bottle of coke for Rs. 5. It was a huge success for the company and increased the sale of the product. After some times, Coke's closest rival, Pepsi also introduced same in Rs. 5,but it was too late. Airtel introduced a scheme of life time connection in just Rs. 999. It was a very cheapest and save scheme for the customers at the time which turns a good job for the company, after several days,some other companies also introduced same scheme, but Airtel dominates the market. There are many stories like that which proves the value of time marketing in the market.
The Basic Mantras of Time Marketing:-
1) Wait for a suitable time for introduce your product.
2) Do your steps before your competitor.
3) Make a balance between time and introduction of product.
4)_Be a front foot player, not a back foot player.
Time marketing focus on open your mind with your eyes and ears, don't give a single chance to your competitor. There is also a reverse effect of time marketing. Time marketing not only suggest you to introduced your product before others but also it refers to wait for a suitable time for introduce your product. It depends on balancing of time in the field of marketing.
The implementation of time marketing is much more in film industry. They properly use time marketing before releasing their latest film. Like film industry, there are also many implementation of time marketing in all other industries.
In India, in the year 2003, coke has been introduced a 200ml bottle of coke for Rs. 5. It was a huge success for the company and increased the sale of the product. After some times, Coke's closest rival, Pepsi also introduced same in Rs. 5,but it was too late. Airtel introduced a scheme of life time connection in just Rs. 999. It was a very cheapest and save scheme for the customers at the time which turns a good job for the company, after several days,some other companies also introduced same scheme, but Airtel dominates the market. There are many stories like that which proves the value of time marketing in the market.
The Basic Mantras of Time Marketing:-
1) Wait for a suitable time for introduce your product.
2) Do your steps before your competitor.
3) Make a balance between time and introduction of product.
4)_Be a front foot player, not a back foot player.
Wednesday, August 4, 2010
TV COMMERCIALS : THE GOLDEN DAYS ARE GOING TO AN END.
There was a time, when TVC plays life blood for the advertising for a product. In 90'S The people wishes to watch TVC's with more eagerness. As the result, they coincidently keep in touch with the particular product. In 90's, people goes to the stores and demanded for any product by using the tagline given in the adds. Like- "Fevicol kaa joor hai, tootega nahi". Customer comes to the market by attracting from the lovely TVCs. We can't forgot the TVC of Dhara oil called "Jalevi". Like that there was a lot of popular advertises which creates a bigger impression on customer mind. Peop-le loves to watch the TVCs.
But as per there is a life cycle of anything, the life cycle of TVCs in India is comes to an end. Today the advanced technology and digital media makes the TVCs more attractive and modern, but the people hardly takes an interest in watching in such kind of TVCs. The plenty of TV channels and people's busyness is also a major reason behind it. Today, a common Pearson having a TV with a cable connection. So, he wants to utilized hi cable as much as possible. As the result, he don,t watch TVCs and change the channel at the time when advertise shown on T.V. It is a major problem facing by T.V media of advertising. But most of the major companies are not getting this point and they are spending much and much money on the TVCs, due to competition with rival which in not good for the point of view of company.
Reasons for the downfall of TVC's.:-
1) Plenty of availability of multi channels and different program's. People not take interest in watching the TVC's.
2) Extra busyness and less time with people.
3) Easy and cheaper availability of internet and relating devices.
4) Decline stage of advertising in India.
5) Other means of advertising are running effectively, like- canopy promotion, sales promotion, direct marketing.
6) Easy availability of any information related to the product on internet.
7) Repeating the same video many times a day.
So,The days of DD1 are gone. Now a days expending more on the TVC is just wasting money.So, major companies should take step on this point
But as per there is a life cycle of anything, the life cycle of TVCs in India is comes to an end. Today the advanced technology and digital media makes the TVCs more attractive and modern, but the people hardly takes an interest in watching in such kind of TVCs. The plenty of TV channels and people's busyness is also a major reason behind it. Today, a common Pearson having a TV with a cable connection. So, he wants to utilized hi cable as much as possible. As the result, he don,t watch TVCs and change the channel at the time when advertise shown on T.V. It is a major problem facing by T.V media of advertising. But most of the major companies are not getting this point and they are spending much and much money on the TVCs, due to competition with rival which in not good for the point of view of company.
Reasons for the downfall of TVC's.:-
1) Plenty of availability of multi channels and different program's. People not take interest in watching the TVC's.
2) Extra busyness and less time with people.
3) Easy and cheaper availability of internet and relating devices.
4) Decline stage of advertising in India.
5) Other means of advertising are running effectively, like- canopy promotion, sales promotion, direct marketing.
6) Easy availability of any information related to the product on internet.
7) Repeating the same video many times a day.
So,The days of DD1 are gone. Now a days expending more on the TVC is just wasting money.So, major companies should take step on this point
Sunday, August 1, 2010
This is How HUL is No. 1
30 years has been past away, but the first choice of people of asking for Lux as their first preference as a toilet soap have not been changed. Today, when I get up in the morning and go to bathroom , I remember my childhood days after looking at same Pepsodent toothpaste. The brands of HUL is just like a regular brands of customers from age to age. Logos has been changed, packaging has been changed, but the choice of customer's has not been changed.
If we think about the reasons that why HUL is best in India in spite of huge competition, we will find that HUL is great because it is great, it's strategies are great, it's aggressive marketing is great and last but not least it is only Nitin Pranjape who remain it no. 1 today also.
I am not going to publish more statements or mesmerism words, I am just want to share some of great strategies of HUL and Pranjape.
In the time of 1990 when the concept of TV commercials was very new for the people, HUL dominates the market and published it's brands aggressively by TV commercials.
Some of the commercials like Liril soap, Lifeboy soap, Surf Detergent, etc. were the most lovable TVCs at the time. "Tandarusti kaa raksha karta hai Lifeboy" was the one of the favorite song of every child.
in 21st era, HUL comes with a different concept called canopy promotion which becomes a benchmark in advertising and sales promotion. Once again HUL become the market leader in all segments.
At the present time, according to great Pranjape, HUL is planning to sustainable production for it's all products. Right now HUL's products will define their own footprints.HUL products are manufactured in over 40 factories across India. Over 2000 suppliers and associates are involved in its operations. The giant HUL distribution network comprises of around 4000 redistribution stockists and 6.3 million retailer outlets. The wide-spread distribution network reaches almost entire urban India and around 250 million rural consumers. The HUL's products will be made after consider the environments. The super supply chain management and production system of HUL will be the idle for every company.
As a responsible corporation of the country, HUL has adopted the triple bottom-line approach to address environmental and social concerns. Following are the three key pillars in this approach:
PROSPERITY PEOPLE PLANET
(ECONOMIC) (SOCIAL) (ENVIRONMENTAL)
From the Behalf of The World of FMCG, I Pravin Tripathi wishing a good luck to HUL
Tuesday, May 25, 2010
CAN THE INTERNATIONAL BRAND'S ENTRY IN INDIA BECOME PROBLEM FOR LOCAL FMCG BRANDS?
From last few years, we are founding that there are a lot of International MNC FMCG companies entering in India with their products in different segments. These companies includes the top companies also (ex. Lore'l, Kraft, Tura, Cape Gemini etc.). In one hand these companies are totally diversifying the Indian market with different products , at other side, these are creating a tough competition for our national as well as prior ones. There was a time when HUL become market leader in all the segment's with having more then 50% share in every segment, but now it is trebling in it's core business also. This is not only happening with HUL, but it is the same story with other brands.
In the year 2001-02, there was a US based company, named Amwey, entered in India with it's chain of cosmetic products and become a good success story in India. This company has not been much successes in rural market due to it's high price. But it was just an entry, within couple of years, there was a lot of MNC companies entered in Indian market even they are also providing the products in affordable prices. We have an example of Lore'l, It enters with It's global leader brand Garnier, at the time it was introduced in very limited segments (ex.Hair color) and preferred by only middle and higher class people. But at the present time, there are a line of products of Lore'l are available in the market. These products are also about the same price range as it's competitive products are available. Like that, a lot of companies are giving more competition for the national brands.
Now a days nobody like to use the products of our domestic companies. It is a problematic issue on which the govt. has to look upon and take vital steps. Otherwise our domestic companies will go down as well as no any new entrepreneur will be bother to start new venture in the FMCG sector. The govt. should limited the entry of MNC's in India.
Friday, May 21, 2010
ITC Q4 net profit surges 27% to Rs 1,028 crore
Diversified business firm ITC today reported a 27 per cent growth in its net profit to Rs 1,028.2 crore in the quarter ended March 31, 2010.
The company had a net profit of Rs 808.99 crore in the quarter ended March 31, 2009, ITC said in filing to the Bombay Stock Exchange (BSE).
The hotel-to-tobacco major has declared a special dividend of Rs 5.50 per share of Re 1 each and a dividend of Rs 4.50 per ordinary share for the financial year ended March, 2010.
The Kolkata-based company also said that its board will meet on June 18, 2010, to consider the issue of bonus shares.
During the quarter, the company's net income grew by 29 per cent to Rs 5,131.61 crore from 3,985.92 crore recorded in the same period in the 2009-10 fiscal.
In the 12-month period ended March 31, 2010, the company had a net profit of Rs 4,061 crore, as against Rs 3,263.59 crore posted in the year-ago period.
ITC's net income during the period jumped to Rs 18,382.24 crore from Rs 15,806.54 crore recorded in the same period of the previous fiscal.
Shares of ITC were up by 2.23 per cent and were quoting at Rs 268.40 in the late afternoon trade on the BSE.
Tuesday, May 11, 2010
HUL’s biggest national roll-out may add Rs320 cr sales in first yr
Mumbai: Consumer goods firm Hindustan Unilever Ltd (HUL) could add around Rs320 crore to its revenue, following the roll-out of its most ambitious trade initiative called Perfect Stores, said an executive at Technopak Advisors Pvt. Ltd, a retail consultancy firm.
For HUL, India’s largest packaged consumer goods company by revenue, it is one of the largest and fastest roll-outs of a marketing strategy to get back its lost market share.
In the first three quarters of fiscal 2010, HUL’s revenue was Rs13,208 crore.
The maker of Lux, Wheel, Dove and Kissan tomato ketchup, HUL is rolling out the Perfect Stores concept across 80,000 stores in 72 cities with a population of at least 100,000 in the next six weeks. The objective is to raise sales in these stores by 30%. All these stores will have similar in-store display and merchandising.
Go-to-market: The firm will extend the new concept to the top 80,000 stores of the one million retail outlets that it reaches out to directly. Indranil Bhoumik/Mint
Since the average size of a neighbourhood grocery store is around 200 sq. ft and sales per sq. ft are Rs6,000 a year, typically one such store has a turnover of Rs12 lakh a year, according to Raghav Gupta, president of Technopak Advisors.
If HUL products account for 25% of such sales, then the sales of these products at one such store will be to tune of Rs3 lakh a year, he said.
Going by Gupta’s calculation, if this initiative leads to a 15% increase in sales, then HUL products will record a rise of Rs45,000 a year in each of these 80,000 stores. The overall increase in sales of HUL products at these stores will be Rs360 crore and, after removing the retailers’ margin, the growth will be Rs317 crore.
Gupta, however, has taken a conservative estimate of 15% rise in sales while the company itself expects a 30% rise.
Perfect Stores is the last mile of HUL’s go-to-market strategy that was started about three years ago. The company aims to rationalize its distribution network, make it more efficient, deliver stocks to retailers faster and reduce inventory on their product shelves.
Traditionally, HUL took time to react to competitive pressures as it had a pipeline of stocks to exhaust. It typically took 10-12 weeks for price cuts to reach its customers. With a quick turnaround of stocks, the company is aiming at a zero or, at the most, one-day stocking level.
Ahead of the roll-out, it ran a pilot in January-March in Coimbatore, Tanali (Andhra Pradesh), Chandigarh, Bhubaneswar and Thane.
Now, the Perfect Store concept has been extended to the top 80,000 stores of the one million retail outlets that HUL reaches out to directly.
The company’s joint venture Hindustan Unilever Field Services Pvt. Ltd, which was formed for modern trade channels with Smollan Holdings, an in-store execution and field services firm in South Africa, in November 2007, has now been extended to cover general trade.
The national roll-out began early this month, and in the first week, HUL created around 20,000 Perfect Stores.
“The creation of Perfect Stores has been made possible due to a three-year history of the stores sales,” said Suhas Jain, a supervisor at Mumbai with HUL.
“There has been an increase of 30% in sales in Perfect Stores,” said Hemant Bakshi, executive director (sales and customer development) at HUL.
The focus on general retail trade is among one of the many initiatives that the Anglo-Dutch Unilever’s Indian unit is looking to double its revenues.
Over the year, it has been engaged with rival Procter and Gamble Co. in price wars and legal battles over washing powder supremacy.
General trade accounts for 97% of the overall consumer packaged goods industry in India and grew at a rate of 13% in 2009 in value terms over a year ago, according to Nielsen Co., a market research firm.
Friday, April 23, 2010
Rakesh Mohan joins Nestle board
Nestle India on Thursday announced that Dr Rakesh Mohan has joined its board of directors.
Dr Mohan, a former Deputy Governor of the Reserve Bank of India, replaces Mr Rajendra Pawar, who resigned as the Non-Executive Director due to his business preoccupations, particularly the creation of the not-for-profit NIIT University.
Dr Mohan has held senior positions in the Government of India including that of Secretary, Department of Economic Affairs, as well the Chief Economic Advisor.
Thursday, April 8, 2010
Now ITC launches Armenteros Premium Handrolled Cigars In India
ITC has launched its much awaited handrolled cigar, Armenteros, in the Indian market. Armenteros cigars have been developed to suit the discerning taste of the Indian cigar connoisseur. The perfect balance of flavour, aroma and strength, Armenteros handrolled cigars are the perfect option for the cigar connoisseurs.
Armenteros cigars are being sourced from the Dominican Republic, the largest producer of handrolled cigars in the world. The cigars are being manufactured at La Aurora, which is one of the oldest cigar companies in the world and is run by the reputed Leon Jimenes family. The products and the packaging are custom-made to ITC specifications and stringent quality parameters. Armenteros is a trademark owned by ITC Limited.
Armenteros Handrolled Cigars have a unique blend comprising tobacco from the best growing regions of the world. The exquisite wrapper leaf comes from Cuban seed tobaccos grown in the mountains of Ecuador. This full bodied and aromatic wrapper leaf has a smoothness of texture considered among best in the world. The Sumatra seed, grown in Brazil, is used as the binder. These tobaccos take a great deal of care to mature, but once the leaf reaches its peak maturity, it offers a rich wisp of spicy and sweet flavour to the cigar. The exceptional filler is a masterful blend of tobaccos. The strength and earthiness of the Nicaraguan and Brazilian tobaccos is balanced with the mild yet rich taste of tobaccos from the Dominican Republic and Peru. Expert cigar rollers and robust quality control measures make sure that Armenteros is a truly world class cigar.
Armenteros Handrolled Cigars are packed with utmost care. They are placed inside a specially designed wooden box, created with a unique hand crafted inverted curves design and polished till it radiates perfection. The box also carries a Certificate of Authenticity signed by the Master Blender & the Production Director as a pledge to deliver the best products. The Cedar inlayer inside the box compliments the woody and earthy aromas of the cigars. The entire packaging design and graphics portray the rich and exclusive Armenteros lineage.
Available in the most popular cigar sizes (Churchill, Torpedo, Corona, Petit Corona and Robusto), Armenteros portfolio consists of 8 pack sizes comprising 3, 5 and 10 cigars. Armenteros cigars will be available exclusively at tobacco selling outlets in select hotels, fine dining restaurants and exclusive clubs.
Armenteros cigars will initially be launched in Delhi and Mumbai, which account for a major share of the Indian cigar market. Subsequently, the brand will be introduced to other metros.
Monday, March 29, 2010
HUL EXITED FROM CAPE GEMINI
MUMBAI: The fast moving consumer goods major Hindustan Unilever today said it exited from BPO firm Capgemini Business Services India by selling
its remaining 49 per cent stake to IT consultancy firm Cap Gemini SA for an undisclosed sum.
"Hindustan Unilever has now divested its 49 per cent stake in Capgemini Business in favour of Cap Gemini SA," HUL said in a filing to the Bombay Stock Exchange.
Capgemini Business, formerly known as Unilever India Shared Services (USSL), was set up as an in-house business process outsourcing unit of the FMCG leader. In September 2006, HUL sold 51 per cent stake in this firm to the France-based Cap Gemini SA, after which USSL was renamed as CGBSL.
HUL had earlier said as a part of its normal business process it continuously review its assets, including real estate, and on a case-to-case basis to unlock business value.
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its remaining 49 per cent stake to IT consultancy firm Cap Gemini SA for an undisclosed sum.
"Hindustan Unilever has now divested its 49 per cent stake in Capgemini Business in favour of Cap Gemini SA," HUL said in a filing to the Bombay Stock Exchange.
Capgemini Business, formerly known as Unilever India Shared Services (USSL), was set up as an in-house business process outsourcing unit of the FMCG leader. In September 2006, HUL sold 51 per cent stake in this firm to the France-based Cap Gemini SA, after which USSL was renamed as CGBSL.
HUL had earlier said as a part of its normal business process it continuously review its assets, including real estate, and on a case-to-case basis to unlock business value.
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Monday, March 15, 2010
Godrej to buy Nigerian soap maker Tura
Godrej Consumer Products Ltd announced on Saturday that it has agreed to buy Nigerian soap maker Tura in a bid to increase its presence in West Africa.
Godrej issued a statement on the acquisition but did not disclose the deal size and the revenues of the acquired business, but said Tura’s current management team will continue to lead the business.
Among other contenders for the soap maker were Wipro Ltd’s consumer care and lighting division, and Dabur India Ltd, media reports had said in the past.
“Tura helps us leapfrog in our endeavour to build a pan-African presence for our core categories such as personal wash and hair care. Tura is one of the strongest Nigerian beauty brands with a successful and passionate management team with a proven track record over the last two decades,” Godrej chairman Adi Godrej said.
Wednesday, March 10, 2010
Now Mountain Dew and Thumps Up will chill out Kings XI Punjab
The fastest growing beverage in the carbonated soft drink category for three consecutive years from the PepsiCo India stable, is doing it again! And this time, it is set to ignite a cricket fever never seen before by associating itself with Kings XI Punjab (KXIP) as the official beverage partner.
Mountain Dew is a perfect partner for KXIP, who with their energy, verve and aggression, had displayed their true 'Punjabi' spirit in the last two Indian Premier League (IPL) seasons. KXIP which had been one of the most popular and cheered teams for the last IPL, and remain one of the favourites and strongest contenders to win the IPL this year.
In keeping with its inherent characteristic of youthful irreverence and adventure, Mountain Dew, the favourite beverage brand in the northern states of Punjab, Haryana and Himachal Pradesh, today rolled out a unique consumer campaign offering an opportunity to true lovers of the game an opportunity to play against the cricketing icons of their favourite IPL team - KXIP.
Titled "Darr ki Wicket Girayega to Hamare Saath Khelega", the unique campaign offers an opportunity to fans to demonstrate their all-round cricketing skills in a daring environment, and win a slew of exciting value-added gifts such as complimentary tickets to IPL matches involving KXIP, branded merchandise, "Meet & Greet" with the players and the top prize to 11 lucky fans to be part of the Mountain Dew team to take on the KXIP in an exciting cricket match.
Announcing this here today, Ms Alpana Titus, Executive Director (Flavours), PepsiCo India Holdings, said "Mountain Dew is all about setting new benchmarks by challenging the conventional parameters. The 'Darr ki Wicket Girayega to Hamare Saath Khelega' campaign symbolizes this brand positioning. It challenges the clutter created by the commonality of consumer promotions surrounding the game of cricket these days, and brings to its fans a unique medium to reach out to their favourite cricketing icons."
Through this partnership, Mountain Dew gains exclusive pouring rights at home matches besides being the official beverage for the KXIP, one of the eight teams of the IPL. Additionally, this association also brings with it branding rights on the players' uniform with the logo at the back
Lauding the initiative as one of the most innovative cricket-led consumer drives, Mr Anil Srivatsa, CEO, Kings XI Punjab, said "It is really exciting to see Mountain Dew launch this initiative to coincide with the IPL. We at KXIP are absolutely looking forward to playing with our fans. It certainly adds a lot of fun into the whole concept of playing for your home team. Outside of the field, we are sure they will be cheering us in each match to see us win the IPL 2010."
Mountain Dew will be unleashing a 360 degree marketing campaign for the "Darr ki Wicket Girayega to Hamare Saath Khelega" initiative, involving on-ground activities in colleges, multiplexes, marketplaces, outdoor, radio, and TV - engaging consumers in the cricket-led initiative like never before.
In order to win these cricketing goodies, all that the consumers need to do is to present two crowns or one PET label of Mountain Dew bottles and get to play a game of cricket on the decked-up floats visiting their colleges and marketplaces.
The matches on the floats will test the consumers' all-round skills - batting, bowling and fielding. These skills will be tested through very exciting and innovative games such as 'Crazy Catches' and 'Speed Ball'.
Keeping in mind the growing popularity of the game amongst women, Mountain Dew has something for its female fans too. The floats will have cricket-based trivia quiz for the female fans of cricket fans, and winners will be given exciting prizes including match tickets.
Each float will have a graffiti board to announce the winner's names. Winners will be judged on the spot to receive their prizes. Prizes on offer include branded bands, gripper and match tickets, of course, the top lucky winners a chance to play with KXIP.
For the winners it will be a lifetime experience! For each KXIP match, as many as 50 consumers will be brought to the stadium in specially decked-up branded luxury buses, and they will be given personalized kits, including T-shirts, backpacks, sippers, trumpets and inflatable hands. Treated like true superstars, they will get to enter the stadium with much fanfare.
Some of the select winners will also get yet another golden opportunity - to meet and greet the Kings XI player while they are practicing at the nets in the stadium.
The final Mountain Dew winners will be selected from amongst all the winners basis a certain selection process, who will then get to play a unique 5-over-a-side daring cricket match with the KXIP team in Dharmashala.
The "Daar ki Wicket Girayega to Hamare Saath Khelega" consumer initiative is in keeping with Mountain Dew's long-term commitment to add fun and excitement in our mundane everyday life and bring a lot of cheer to everything that we do.
Thursday, March 4, 2010
FMCG products to be costlier by up to 7%
Beauty creams, hair oil, shampoos and other household items will cost more as FMCG firms plan to increase prices by up to 7 per cent due to the excise duty hike announced in the Budget.
Kolkata-based FMCG player Emami today announced it will increase prices of its products between 3-7 per cent due to the increase in the input costs as a result of the excise duty hike coupled with the surge in the transportation cost.
"There is an increase in the input cost due to hike in excise duty and also because of the transportation cost, we are looking to increase the prices of our products," Emami Group of companies Director Aditya Agarwal told PTI.
Emami sells personal care products under the brand names Boroplus, Fair and Handsome, Navratna Oil and health products like Sonachandi Chyawanprash.
Besides, Godrej Consumer Products, which sells products like soaps under the brands Godrej and Cinthol, said it will increase the prices of products by 2-5 per cent while baby diapers will become costlier by up to 10 per cent.
Earlier, leading consumer products companies have said budget measures such as the partial rollback of excise stimulus and higher fuel and packaging costs have added to the already inflationary commodity environment and will have to be passed on to consumers some way or the other.
The Union Budget has made a two per cent hike in excise duty across the board while slapping levies on petrol and diesel, partially rolling back stimulus measures in the face of economic revival.
"We are looking at hiking prices by 5 per cent across categories by April or May. The rising cost of commodities, packaging and increase in excise duty has forced us to take such measures," Godrej Group Chairman Adi Godrej told reporters in Mumbai.
Marico CEO Saugata Gupta said that his company might consider increasing the prices of its Parachute brand of hair oil, but any hike would only be marginal.
"We may go for some price correction but marginally. So far we have not planned anything," Gupta said, adding the company planned to focus on pushing volumes first.
FMCG major HUL, however, said it will not comment on any forward looking queries.
Delhi-based Dabur said it is not looking at any price hike as most of its products are manufactured in excise-free zones.
"We are not looking at any price hike. 90 per cent of our products are manufactured in excise free zones. So it does not have any direct impact," a company official of Dabur said.
Kolkata-based FMCG player Emami today announced it will increase prices of its products between 3-7 per cent due to the increase in the input costs as a result of the excise duty hike coupled with the surge in the transportation cost.
"There is an increase in the input cost due to hike in excise duty and also because of the transportation cost, we are looking to increase the prices of our products," Emami Group of companies Director Aditya Agarwal told PTI.
Emami sells personal care products under the brand names Boroplus, Fair and Handsome, Navratna Oil and health products like Sonachandi Chyawanprash.
Besides, Godrej Consumer Products, which sells products like soaps under the brands Godrej and Cinthol, said it will increase the prices of products by 2-5 per cent while baby diapers will become costlier by up to 10 per cent.
Earlier, leading consumer products companies have said budget measures such as the partial rollback of excise stimulus and higher fuel and packaging costs have added to the already inflationary commodity environment and will have to be passed on to consumers some way or the other.
The Union Budget has made a two per cent hike in excise duty across the board while slapping levies on petrol and diesel, partially rolling back stimulus measures in the face of economic revival.
"We are looking at hiking prices by 5 per cent across categories by April or May. The rising cost of commodities, packaging and increase in excise duty has forced us to take such measures," Godrej Group Chairman Adi Godrej told reporters in Mumbai.
Marico CEO Saugata Gupta said that his company might consider increasing the prices of its Parachute brand of hair oil, but any hike would only be marginal.
"We may go for some price correction but marginally. So far we have not planned anything," Gupta said, adding the company planned to focus on pushing volumes first.
FMCG major HUL, however, said it will not comment on any forward looking queries.
Delhi-based Dabur said it is not looking at any price hike as most of its products are manufactured in excise-free zones.
"We are not looking at any price hike. 90 per cent of our products are manufactured in excise free zones. So it does not have any direct impact," a company official of Dabur said.
Wednesday, March 3, 2010
NEW ADD WAR BETWEEN HUL AND P&G
The Advertising Standards Council of India (ASCI) today said it has issued a notice to FMCG major HUL asking it to "substantiate" in 15 days the claim in a TV commercial that its washing powder 'Rin' is better than rival P&G's 'Tide'.
"We have asked for HUL's response. We have give them 15 days period and we will take up the matter on March 23," ASCI General Secretary Allan Collaco told PTI.
HUL's TV commercial with a tagline 'Tide se kahin behatar safedi de Rin' claims 'Rin' is better than 'Tide'
According to norms laid down by ASCI, comparisons between brands can be made only when they are scientifically and factually substantiated.
"Now, it is up to HUL to substantiate the claim," Collaco said.
When contacted, HUL denied receiving any notice from ASCI and said the Rin commercial is in line with advertising code followed by the industry. "The claim is factual, accurate and substantiated as it is based on laboratory tests done through globally accepted protocols in independent third party laboratories," an HUL spokesperson said.
A P&G spokesperson, on other hand, said, "We are aware of the disparaging advertisement on air against Tide Naturals and have filed a case against the same. The matter is currently being heard in the court and we are not in a position to comment on the outcome."
Tuesday, February 23, 2010
NESTEA :- A REVOLUTION IN TEA MARKET IN INDIA.
Nestle comes with a new concept of tea in India called Nestea. Nestea is a popular brand of iced tea which introduced by Nestle in India for two new tea concepts, Ice tea and Green tea.
NESTEA GREEN TEA :-
New NESTEA Iced Tea with Green Tea brings natural, healthy goodness of Green tea into your glass. Green tea is a good source of NATURAL ANTIOXIDANTS which are known to protect body cells from damage caused by free radicals.
Feel good everyday with the refreshingly light taste of NESTEA with Green Tea.
NESTEA ICED TEA :-
NESTEA Iced Tea is a special blend of natural tea & natural fruit flavour. Its so convenient to make that now you can enjoy your favourite iced tea at home.
1 glass of NESTEA Iced Tea provides you with 50% of your daily requirement for Vitamin C*.
The both tea concept of Nestle is very new in India. it is an innovative step taken by nestle. Now it will be very interesting to see the responses of Indian customers towards Nestea.
On the behalf of THE WORLD OF FMCG, I Pravin Tripathi wishing Nestle a good luck.
Sunday, February 21, 2010
Nestle Presents The Pleasure of Cafe At Home, Launches Nescafe Cappuccino
The worlds favourite instant coffee brand NESCAFÉ brings two delicious new Cappuccino variants - NESCAFÉ Choco Mocha and NESCAFÉ Vanilla Latte. Treat yourself to its rich coffee taste and delicious froth.
Comforting, relaxing - a delicious cup of NESCAFÉ Cappuccino is a great way to enjoy a true cafe experience at home.
Wednesday, February 17, 2010
Dove : The No.1 Shampoo Brand of India in Modern Trade
Now Dove is the No 1 brand of relevent catagory in India.The performance of Dove has been very good from last 6 months which results as Company's largest profit gaining segment in last quarter. Personal Products momentum was sustained with 16% growth led by strong volume growth in Hair Care and Skin Care. In the Hair category, Dove grew rapidly across shampoo and conditioners, becoming the No.1 Hair Care brand in Modern Trade.
Saturday, February 6, 2010
Ranbir Kapoor is the new brand ambassador of ITC John Players
Reinforcing the bond and connect with today’s youth across the country, ITC’s John Players announced the signing of the hottest youth icon Ranbir Kapoor as its new brand ambassador. The move adds a punch of freshness, dynamism and energy to the trendy apparel brand for men, while highlighting its commitment in making strong statements in the fashion and lifestyle space.
Announcing this, Mr. Atul Chand, Divisional Chief Executive, ITC’s Lifestyle Retailing Business said, “Ranbir is the perfect fit for John Players as he personifies the youthfulness, vibrancy and panache that the brand stands for. There are strong synergies between John Players and Ranbir’s inherent sense of style and effortlessly cool persona. We are positive that John Players’ association with Ranbir will hit the right chord with the youth and strengthen the brand’s core attributes.”
Driven by the vision of creating a mega-brand and keeping in mind the changing fashion tastes of the Indian youth, John Players offers contemporary fashion to youth at accessible prices. As a leading menswear brand that understands and anticipates the existing and emerging fashion needs, John Players offers a collection that is in sync with international styling. With multiple categories it offers a stylish range of garments tailored to work, leisure and party occasions giving a complete and vibrant wardrobe solution to the style conscious young Indian male of today.
Said Ranbir, “John Players has established itself as a leading brand in the youth segment and it is a pleasure to be associated with such a strong brand. I relate with the cool, youthful and expressive personality of the brand. I believe it’s important to be comfortable in what one wears & make a statement without trying too hard which is also what John Players believes in. JP and I will rock!”
The John Players forthcoming Spring Summer campaign featuring Ranbir Kapoor will bring vividly alive both the personality of the brand and the new collection.
Considering the huge popularity Ranbir Kapoor enjoys amongst the youth, the timing of this association could not be better!
Kraft Foods :- The New Entry in Indian Market
After a lot of struggle and hitting more 4s and sixes, Kraft finally able to win the test match with Cadbury, but the target for winning the match is very huge. In a simple sense we want to just say that the company paid much more amount for the acuisition of the British major Cadbury. Earlier, the US based company Kraft offered $10.76bn for the acquisition of the company. But Cadbury denied the deal and refused to sell their shares to Kraft. But the world leading company of confectionery, Kraft food gives a final touch to the deal by offering Cadbury the amount more than $11bn.
Presently each shareholders of cadbury will be gained 500pence for a share and 0.29 share of Cadbury. it is a very helpful and profitable offer for the shareholders of Cadbury. Now all the doors are open for the Kraft for expend their business to the countries of south asia specially in India.
Now it is a bigger opportunity as well as a huge challenge for Kraft for giving best performance in these untapped markets. the success in these market can make Kraft the world leader in confectionery.
The Strength of Kraft Foods in Asian markets:-
1. Established brand.
2. Best product line.
3. Goodwill in world market.
4. Market Leader in food and beverages.
Weakness:
1. High price products which are not suitable as according to Asian market.
2. Company is at a decline stage in US market.
Opportunities:-
1. Untapped Asian market.
2. Acquisition of an established and top brand of confectionery (Cadbury).
3. Very few competitor.
4. The changing of buying habits of customers.
Threats :-
1. Existing competitor (Nestle)
2. A very new and different market from US and Europe.
Presently each shareholders of cadbury will be gained 500pence for a share and 0.29 share of Cadbury. it is a very helpful and profitable offer for the shareholders of Cadbury. Now all the doors are open for the Kraft for expend their business to the countries of south asia specially in India.
Now it is a bigger opportunity as well as a huge challenge for Kraft for giving best performance in these untapped markets. the success in these market can make Kraft the world leader in confectionery.
The Strength of Kraft Foods in Asian markets:-
1. Established brand.
2. Best product line.
3. Goodwill in world market.
4. Market Leader in food and beverages.
Weakness:
1. High price products which are not suitable as according to Asian market.
2. Company is at a decline stage in US market.
Opportunities:-
1. Untapped Asian market.
2. Acquisition of an established and top brand of confectionery (Cadbury).
3. Very few competitor.
4. The changing of buying habits of customers.
Threats :-
1. Existing competitor (Nestle)
2. A very new and different market from US and Europe.
Wednesday, February 3, 2010
Maggi's Initiation Towards Rural Market
Masala-ae-Magic :- The most trusted brand of Nestle, Maggi from 25 years, now going to make an entry i the Indian rural market with it;s latest introduction, Maggi Masala-ae-Maic. It is the cheapest noodle of Maggi which will be avilable in the Indian rural market for just Rs. 2.
While Masala-ae-Magic is a fortified taste enhancer with Iron, Iodine and Vitamin A, Rasile Chow is a low-cost, tasty light meal that is fortified with Iron.
Nestle India Chairman & Managing Director Antonio Helio Waszyk says the company has leveraged its nutritional expertise to innovate and develop relevant products at the appropriate time with, for example, increased natural fiber, or reinforcing them with nutrients such as calcium and proteins to better manage health and wellness.
Products for the rural market will also help the company maintain a balance. In the last two years, when the urban markets cooled down, the rural markets continued to remain buoyant. High support prices for all large crops, the National Rural Employment Guarantee programme, and the farm loan waiver have ensured that there is good purchasing power in the rural markets. This has begun to drive FMCG companies to villages and small towns. Nestle is no exception.
It will be consider as a one of the great introduction from the stable of Nestle. but it's success is depend upon the customers preference which is an unpredictable issue. We from the behalf of "THE WORLD OF FMCG" wishing Maggie Masala-ae-Magic as a huge success.
Saturday, January 30, 2010
Amul to increase milk prices from February 1
Gujarat’s largest milk producer Gujarat Cooperative Milk Marketing Federation (GCMMF), selling its dairy products under the brand name ‘Amul’, has decided to increase the milk prices between Re 1 and 2 per litre.
The increase comes a few days after Agriculture Minister Sharad Pawar predicted rise in milk prices. “We have decided to increase milk prices of our brands ‘Taaza’ and ‘Slim and Trim’ by Re 1 a litre, while the prices of our brands like ‘Gold’ and ‘Shakti’ shall be increased by Rs 2 a litre with effect from February 1 in Gujarat only,” GCMMF Chief General Manager R S Sodhi said.
GCMMF has cited rise in input cost of raw material like cattle feed as a major reason behind the increase this year. “Due to increase in the input cost, we have to pay more to milk producers. Hence, the prices rise,” Sodhi said.
The increase comes a few days after Agriculture Minister Sharad Pawar predicted rise in milk prices. “We have decided to increase milk prices of our brands ‘Taaza’ and ‘Slim and Trim’ by Re 1 a litre, while the prices of our brands like ‘Gold’ and ‘Shakti’ shall be increased by Rs 2 a litre with effect from February 1 in Gujarat only,” GCMMF Chief General Manager R S Sodhi said.
GCMMF has cited rise in input cost of raw material like cattle feed as a major reason behind the increase this year. “Due to increase in the input cost, we have to pay more to milk producers. Hence, the prices rise,” Sodhi said.
Monday, January 25, 2010
Pantaloon registers 51.07% rise in net
The revenue for the third quarter increased by 25.37% to touch Rs1912.84 crore as compared to Rs1525.68 crore in the corresponding quarter of the last year
New Delhi: Inline with market expectations, India’s largest listed retailer Pantaloons Retail India Ltd registered a consolidated net profit increase of 51.07% for the quarter-ending December 31, 2009 to touch Rs 50.67 crore as compared to Rs33.54 crore in the corresponding quarter last financial year.
The revenue for the third quarter increased by 25.37% to touch Rs 1912.84 crore as compared to Rs1525.68 crore in the corresponding quarter of the last year.
During the quarter the company had received shareholder approval for transferring its Value Retail Business through slump sale to its wholly owned subsidiary, ”Future Value Retail Limited” (FVRL) with effect from January 01, 2010.
“The performance of the company has been inline with our expectations. There is also a 33 basis points improvement in operating margins quarter-on-quarter which shows that the company has maintained its costs and its cost cutting measures are showing results,” says Viraj Nadkarni, analyst with Angel Broking Ltd.
The company’s stock on the Benchmark Sensex closed at Rs409.05, 1.85% lower than its previous close on Friday at Rs416.75
Tuesday, January 19, 2010
Tata Tea ups stake in Everest to 50%
Aimed at consolidating similar businesses under a single roof, Tata Tea, which had gradually increased its stake in Mount Everest Mineral Water over 10 months, has now acquired management control, with a 50.24 per cent stake.
Insiders say Tata Tea is now likely to merge the mineral water company with itself.
Tata Tea’s consolidation drive, say analysts, will create one holding company with various divisions such as tea, coffee, water, juices and energy drinks. The likely merger would pave the way for a uniform corporate brand, with sub-brands for each division.
Tata Tea acquired 26 per cent stake in Mount Everest in 2007 for Rs 115 crore. It later made an open offer for up to 20 per cent of equity at a price of Rs 140 a share. When it did so, the market capitalisation was Rs 476 crore (at Rs 140 a share). This has fallen to Rs 210 crore, given the latest transaction price of Rs 61.7 a share, due to the global economic downturn and related market decline.
Analysts believe this is the right time for Tata Tea to increase its stake in Mount Everest, as the share continues to trade below its expected value. The stock of Mount Everest closed at Rs 69.85 on January 18, marginally up from the previous day’s close of Rs 69.70. Tata Tea’s stock was down 0.65 per cent, having closed at Rs 1,030.50 from the previous day’s close of Rs 1,037.20.
The beverage company has enough cash on its books, especially after its 30 per cent stake sale in Energy Brands Inc (known as Glaceau), to Coca-Cola, for Rs 4,900 crore, in 2007.
Company officials declined comment on the merger of Mount Everest with the company. Sources in the know insist it will happen. They say it will be in keeping with the Tata Group policy of integrating smaller businesses with their respective flagship companies, to leverage the value of these entities and increase overall cost efficiency.
Cases in point are the proposed mergers of Tata Coffee and Mount Everest with Tata Tea; Rallis with Tata Chemicals; Tata Teleservices (Maharashtra) with Tata Teleservices; and Tata Sponge Iron with Tata Steel. This will be the second such exercise after Ratan Tata took over chairmanship of the Group in 1991.
There’s another reason, say analysts. Tata Tea’s tea portfolio has come down from 90 per cent in 2004-05 to 70-75 per cent. The idea, say insiders, is for Tata Tea to emerge as a beverage giant that straddles different segments.
The company has expanded its footprint globally, too, by acquiring some key businesses such as Tetley (in the UK) in 2000, Good Earth (in the US) in 2005, Jemca (in the Czech Republic) and Joekels Tea Packers (in South Africa) in 2006. It also acquired trademarks Vitax and Flosana (in Poland) in 2007. Subsidiary Tata Coffee acquired Eight O’ Clock Coffee (in the US) in 2006, even as the parent sold its stake in Energy Brands Inc to Coca-Cola the following year, booking a profit of Rs 2,100 crore.
There are more acquisitions in emerging markets on the cards. Last year, the company snapped up a branding, packing and distribution company in Russia, called Grand. The merger, when it happens, will further the drive.
Insiders say Tata Tea is now likely to merge the mineral water company with itself.
Tata Tea’s consolidation drive, say analysts, will create one holding company with various divisions such as tea, coffee, water, juices and energy drinks. The likely merger would pave the way for a uniform corporate brand, with sub-brands for each division.
Tata Tea acquired 26 per cent stake in Mount Everest in 2007 for Rs 115 crore. It later made an open offer for up to 20 per cent of equity at a price of Rs 140 a share. When it did so, the market capitalisation was Rs 476 crore (at Rs 140 a share). This has fallen to Rs 210 crore, given the latest transaction price of Rs 61.7 a share, due to the global economic downturn and related market decline.
Analysts believe this is the right time for Tata Tea to increase its stake in Mount Everest, as the share continues to trade below its expected value. The stock of Mount Everest closed at Rs 69.85 on January 18, marginally up from the previous day’s close of Rs 69.70. Tata Tea’s stock was down 0.65 per cent, having closed at Rs 1,030.50 from the previous day’s close of Rs 1,037.20.
The beverage company has enough cash on its books, especially after its 30 per cent stake sale in Energy Brands Inc (known as Glaceau), to Coca-Cola, for Rs 4,900 crore, in 2007.
Company officials declined comment on the merger of Mount Everest with the company. Sources in the know insist it will happen. They say it will be in keeping with the Tata Group policy of integrating smaller businesses with their respective flagship companies, to leverage the value of these entities and increase overall cost efficiency.
Cases in point are the proposed mergers of Tata Coffee and Mount Everest with Tata Tea; Rallis with Tata Chemicals; Tata Teleservices (Maharashtra) with Tata Teleservices; and Tata Sponge Iron with Tata Steel. This will be the second such exercise after Ratan Tata took over chairmanship of the Group in 1991.
There’s another reason, say analysts. Tata Tea’s tea portfolio has come down from 90 per cent in 2004-05 to 70-75 per cent. The idea, say insiders, is for Tata Tea to emerge as a beverage giant that straddles different segments.
The company has expanded its footprint globally, too, by acquiring some key businesses such as Tetley (in the UK) in 2000, Good Earth (in the US) in 2005, Jemca (in the Czech Republic) and Joekels Tea Packers (in South Africa) in 2006. It also acquired trademarks Vitax and Flosana (in Poland) in 2007. Subsidiary Tata Coffee acquired Eight O’ Clock Coffee (in the US) in 2006, even as the parent sold its stake in Energy Brands Inc to Coca-Cola the following year, booking a profit of Rs 2,100 crore.
There are more acquisitions in emerging markets on the cards. Last year, the company snapped up a branding, packing and distribution company in Russia, called Grand. The merger, when it happens, will further the drive.
Friday, January 8, 2010
PARACHUTE'S SOLUTION FOR WINTER
About Parachute Advansed Revitalizing Hot Oil
Winter gives you a lot to cheer about but it also takes a lot out of your hair. The extreme weather at this time of the year leaves your hair rough and dry, making it look dull and lifeless. This means you need to give your hair a little bit extra care in winter. The best way to do so is giving it a hot oil massage which penetrates deep into your scalp. But the heating you oil everyday can become a bit tedious.
The Product
Presenting the all new Parachute Advansed Revitalizing Oil. It is a coconut oil enriched in Thyme, Patchouli, Rosemary and special warming oil which keeps it hot from within. It penetrates deep into your scalp and nourishes your hair from root to tip, giving it extra care during winter.
Parachute Advansed Revitalizing Hot Oil is available in 170ml pack. Now get hot-looking hair even in winter and stay Gorgeous Hamesha!
Dabur Launches Hajmola Kachcha Aam
Third new Hajmola variant in three years
Plans sampling at street food outlets across India
Dabur India Limited, India’s leading natural healthcare company, today announced the extension of its popular Hajmola digestive range with the launch of a new variant - Hajmola Kachcha Aam. The launch is a strategic move to push faster growth of Dabur Hajmola and create excitement around the brand.
In addition, Dabur will undertake a host of consumer-connect initiatives – by way of tie-ups with street food outlets across India – to increase frequency of consumption by promoting post-meal consumption.
“Hajmola has established itself as a ‘tasty & fun digestive’ for post meal consumption. Hajmola’s huge success can be gauged by the fact that over 2.5 crore Hajmola tablets are consumed in India daily. Over the years, we have introduced many flavours to offer consumers greater variety. The launch of Hajmola Kachcha Aam is another step forward in this direction. Kachcha Aam is extensively used in Indian cuisine to enhance taste and is also popular for its digestive properties (pickles). So, it was a logical new flavour for the Hajmola digestive range,” said Dabur India Ltd Executive Vice President-Marketing (Healthcare) Mr. K K Rajesh.
The new Hajmola Kachcha Aam variant comes on the heels of the huge success of Hajmola’s regular, Imli, Nimbu & Pudina flavours. Hajmola Pudina, launched last year, has met with encouraging response in the market and is already an over Rs 8 crore brand. Hajmola Kachcha Aam will offer the digestive and nutritional values of raw mango in an easy-to-use form to consumers. Hajmola Kachcha Aam will be available in a Re 1 sachet of 6 tablets.
Dabur had recently rolled out a new campaign with the tagline ‘Hajmola Kare Khana Complete’. A new communication campaign for the Kachcha Aam variant will also start soon with the new TVC releasing across leading TV channels next month, followed by on-ground activation programmes.
“As part of our new consumer-connect initiative, Hajmola is joining hands with the scores of popular street food outlets across the country, giving them a new look-and-feel. Customers at these outlets will be served Hajmola to promote its post-meal connect and further establish Hajmola as a hygienic, tasty and easy-to-consume post-meal digestive,” Mr. Rajesh added. Dabur plans to cover over 1000 street food outlets across the country with this initiative. A similar exercise is also being initiated with a host of branded food retail outlets and food courts in the National Capital Region.
About Hajmola
Hajmola, a tasty, fun-filled digestive, is available in interesting formats like tablets and candies. A tasty mix of traditional Indian culinary herbs, spices and edible salts, Hajmola enjoys an over 60% share of the branded digestive tablets market in India.
About Dabur India
Dabur India Limited is one of the leading FMCG companies in India with a turnover of over Rs. 2800 crores. Building on a legacy of quality and experience for over 120 years, Dabur is today India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care Company. Dabur India’s FMCG portfolio includes five flagship brands with distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, Réal for fruit-based drinks and Fem for fairness bleaches.
Sunday, January 3, 2010
THE TOP GAINERS AND LOOSERS OF THE YEAR 2009.
Last year, 2009 was very crucial for the FMCG companies of India. Some of the companies has gained doubled than their expectations but at the same time there was some big players also present which were grown less than their expectations. GCPL emerges as a biggest company in terms of profit and HUL the head of Indian FMCG has faced a profit less than it’s expectation. There are also some companies are available which has done an average profit.
TOP GAINERS OF THE YEAR 2009:-
GCPL (30.7% gain in EBITDA), Dabur (22.2% gain in EBITDA), GSK (22.1% gain in EBITDA).
TOP LOOSERS OF THE YEAR 2009 :-
HUL (18.5% gain in EBITDA), ITC (16.4%gain in EBITDA), Marico (16.3%gain in EBITDA).
COMPANIES HAVING AVERAGE PROFIT :-
Colgate(19.5gain in EBITDA), Nestle (19.4% gain in EBITDA)
TOP GAINERS OF THE YEAR 2009:-
GCPL (30.7% gain in EBITDA), Dabur (22.2% gain in EBITDA), GSK (22.1% gain in EBITDA).
TOP LOOSERS OF THE YEAR 2009 :-
HUL (18.5% gain in EBITDA), ITC (16.4%gain in EBITDA), Marico (16.3%gain in EBITDA).
COMPANIES HAVING AVERAGE PROFIT :-
Colgate(19.5gain in EBITDA), Nestle (19.4% gain in EBITDA)
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