upbeat on branded jewellery biz
Chennai: Swiss watch brand Omega had introduced
its brand of jewellery in India in March 2007, has now
expressed optimism about its Indian business, citing
very good growth shown by the branded jewellery market
company launched Omega Fine Jewellery at the Omega boutique
in ITC Park Sheraton, Chennai recently
Rings account for up to 65 per cent of the sell-out
for Omega jewellery. The range also includes earrings,
bracelets, necklaces, pendants and charms.
5 per cent of the jewellery range is in stainless steel,
meant for men, including cuff links, money clips and
has been a Swiss watchmaker since 1848 and launched
its range of jewellery in 2002. According to the company,
demand has shown a steady annualised growth and is now
distributed across 250 points of sale in various markets
that include China, Hong Kong, Japan, the US and Europe.
China and Hong Kong are the biggest markets for the
company''s jewellery range.
has five exclusive boutiques in India in Delhi,
Mumbai, Bangalore and Chennai and the jewellery
range is being launched in all.
are four lines in the range, with designs matched to
those of various watches made by Omega. Omegamania is
inspired by the Greek alphabet Omega; Griffes is based
on lion''s claws, representing strength; Sedna is based
on a galaxy of stars; and Aqua is a motif of waves.
Jewellery is priced Rs40,000 onwards, with specialised
collections for individual markets as of now.
Motors & M&M front runners for Ford''s Rover,
Jaguar, Analysts sceptical
Mumbai: The Ford Motor Company so far maintains
that no final decisions have been with respect to the
sale of its two brands Jaguar & Rover, quelling
expectations of Ford announcing the sale of these brands
along with its second quarter results.
than Tata Motors, Indian auto major Mahindra & Mahindra
is also said to be amongst the list of shortlisted bidders
for the two brands. Private equity players Cerebrus
and Ripplewood Holdings are also believed to be contenders.
objective of the sale is to enable Ford to concentrate
on its core business strategy, simultaneously ensuring
that Jaguar and Land Rover have the ownership, technology
and investment structure they need to allow them to
reach their full potential.
along with the interest generated in the potential Indian
acquisition of the two European car companies, analysts
are sceptical about the deal on account if the challenges
it could pose.
primary source of the scepticism is that both Tata Motors
and Mahindra & Mahindra are yet to establish themselves
in the premium segment in the domestic market. This
makes the decision to enter the super high-end segment
seem like a less strategic move, with managing the brands
being one of the biggest challenges.
reservation is about the high capital expenditure that
both players have already committed to. Tata Motors''
capex is around Rs12,000 crore, while the Mahindra''s
have announced plans of a Rs5,000 crore spread over
three-four years. These are viewed as largely unsustainable
internally, and are bound to need support of their respective
the fact that Ford itself has not been able to turnaround
the two brands makes it all the more daunting a task
for both Indian automotive manufacturers. Stringent
conditions laid down by Ford such as restraining bidders
from shifting production for the next five years, are
bound to make it difficult for either company to cut
losses to revive the venture.
bets on washing machines to boost sales
Samsung India Electronics Pvt Ltd has increased focus
on its fully automatic washing machines range to drive
overall sales, backed by changing consumer preferences
towards fully automatic machines.
has considerably enhanced its fully automatic product
line, and is looking at the segment as a revenue driver
for the company.
figures show the washing machine category displaying
a growth of 23.8 per cent, touching 8.27 lakh units
in the five months from January-May 2007. The fully
automatic segment grew at a steady 44.5 per cent, while
the semi-automatic segment displayed a growth of 17.5
claims a 15.3 per cent market share in the fully automatic
segment. It plans to increase this share by 5 percent,
by an aggressive expansion of the product range in the
fully automatic segment, along with channel expansion
and aggressive marketing activity.
washing machine market, estimated at 1.7 million units
in 2006-07, is expected to grow at 15 per cent this
fiscal. The segment''s contribution to the overall market
was around 31.8 per cent in 2006-07 and is expected
to marginally increase to 33 per cent in 2007-08.
expects a 4-per cent increase in overall revenues to
come from the fully automatic washing machines, with
the overall revenues going up from 32 per cent in 2006-07
to about 36 per cent in the current fiscal.
its marketing strategy, the company is supporting regular
above-the-line communication via television and print
campaigns with several below- the-line activities, such
as display contests for dealers, training the in-shop
demonstrators at multi-brand outlets, and the on-going
''Dream Home'' road shows. The ''silver nano technology''
in the company''s fully automatic washing machine range
is seen as a differentiator.
Car Corporation expands its India network
New Delhi: The Volvo Car Corporation has announced
an expansion of its dealer network in Delhi, Mumbai
is to enter the Indian car market with the launch of
its sedan S80, and SUV XC90, in both petrol and diesel
variants before end-2007. Presently, both cars are awaiting
approval on the homologation process.
is already present in the commercial vehicles segment
in the country, and is somewhat preferred vendor for
both passenger and freight companies for long distance
dealerships will also house accessories, spares, workshop
services and body shops along with varied financial
services, following Volvo''s global format.
to offer bi-fuel engines
Mumbai: Fiat India plans to offer bi-fuel engines,
specifically manufactured to run on petrol and other
fuels like CNG, in both its present and forthcoming
models. The company is also keen on promoting turbo
variants in its range of engines for forthcoming models.
the present range such as the Palio Stile would be introduced
in the market with a CNG kit, followed by engines developed
locally that would be compatible and modified to run
on CNG fuel option sans the kit. This option would be
available with models such as the Grande Punto and the
Linea in the near future.
power is another focus area for the company, as it offers
high end performance without compromising fuel efficiency.
experts opine such engine options could carve out a
niche for the company, and help achieve its targeted
5 per cent market share by 2010.
is currently offering a niche model on these lines in
the form of the Palio Stile 1.6 litre -100bhp model,
priced at Rs 4.45 lakh (ex-showroom, Mumbai).
launches new landline scheme from Aug 1
Nagpur: The BSNL Maharashtra Circle has announced
the launch of a consumer-friendly scheme, which allows
the company''s customers to make an unlimited number
of landline-to-landline calls within the state and neighbouring
Goa "free", via an add-on package of Rs149.
scheme, `Maharashtra-Goa Unlimited'', is scheduled to
be launched from August 1, according to BSNL chief general
manager, BSNL Maharashtra Circle, Chandraprakash. Besides
this, the pulse rate for calls to BSNL mobiles within
Maharashtra and Goa has been changed from the present
one minute to three minutes, without any increase in
charges. This scheme will be in effect for a limited
Chandraprakash said there were 30 lakh BSNL mobile connections
and 25 lakhs will be added soon in the Circle.
realty prices could deter growth of retail ind: Mittal
New Delhi: Mittal led Bharti Enterprises, which
has announced joint venture plans with US retail giant
Wal-Mart for its foray into the business, commented
that rising real estate prices could dampen the growth
of the organised retail industry in the country.
the sidelines of a CII function, Bharti Enterprises
Chairman and CEO Sunil Bharti Mittal told reporters,
"The rising real estate prices are a matter of
concern for the retail sector."
Enterprises has also floated a real estate outfit of
its own that would mostly meet its requirements for
the retail business.
first retail store is scheduled to open next year, for
which the hiring and training people has started. The
Bharti had announced that it would have two ventures
with Wal-Mart -- one for the franchise arrangement and
the other for cash and carry (wholesale) business.
Bharti will have a majority stake in the franchise joint
venture, the US giant would contribute major equity
in the back-end business.
India to form a joint venture for ground handling services
New Delhi: Air India plans to tie up with global
companies via a joint venture to take up ground handling
activities at airports both within the country and abroad.
airline already has a JV with Singapore Air Terminal
Services (SATS) to provide ground handling services
at Bangalore and Hyderabad airports, and according to
airline sources, wants to seek Expressions of Interest
for similar activities in India and abroad.
India has annual earnings of over Rs550 crore originating
from ground handling activities, and has an 80 per cent
market share of the services in Indian airports, following
its merger with domestic partner Indian.
airlines'' move for joint ventures on the ground comes
with the backdrop of the government''s decision to have
only three agencies manage these services at all airports
across the country from January 2009.
Ministry of Civil Aviation decided agencies which would
carry out these services should be a specialized subsidiary
or joint venture firm established by national airlines,
Airports Authority of India or other airport operators,
and a ground handling company selected via competitive
bidding on a revenue-sharing basis.
completely merged Air India will have six Special Business
initiates revolutionary transport innovations
Chennai: IBM, the software major, has launched
a few innovations set to revolutionise the transport
system. These innovations introduce artificial intelligence
in vehicles and traffic management systems, voice recognition
technology and traffic-related information transfer
through cell phones.
innovations are slated to make travelling by planes,
trains and automobiles more convenient and hassle-free
within the next few years, according to a company release.
These would also curtail fuels wastage and cut down
on the incidence of accidents.
emerging technologies especially in communication will
make travel safer, more streamlined and able to accommodate
ever-increasing growth demands. Using driver-assist
technologies, automobiles could possibly behave as if
they have reflexes, being able to sense other cars and
avoid hazards. They would also be able to exchange information
with each other, take corrective actions as appropriate,
and provide essential feedback to drivers.
voice recognition systems installed in vehicles would
allow drivers to access real-time updates, respond to
emails and get driving directions via simple voice commands.
The system would also help them adjust cabin temperature,
and make hands-free phone calls.
intelligent traffic systems factor in heavy vehicular
flows and will make adjustments to traffic lights to
ease congestion and clear paths for emergency vehicles.
Sensor technologies, GPS and satellites will provide
information to motorists on the routes to be avoided
for driving and parking during peak hours.
would get notification of train and bus delays via cell
phones and also on whether an alternative route was
safer and more convenient.
no timeline was specified for the implementation and
adoption of these technologies.
Telecom Retail aims at Rs3,000-crore turnover by 2010
Mumbai: Essar Telecom Retail, which retails mobile
phones and accessories for the Ruias, is looking at
an excess of Rs3,000 crore in turnover by 2010, leveraging
a footprint in 600 cities through nearly 3,000 stores.
to Essar Telecom Retail Ltd CEO and director Rajiv Agarwal,
"We expect to corner more than 10 per cent share
of the Rs 30,000 crore mobile phone market over the
next three years,"
company expects to capture a five per cent share of
the Rs80,000 crore telephone services sector, involving
mobile recharges and other value-added services by 2010.
present, Essar has a network of 220 stores under the
brand "The Mobile Store," which it plans to
enhance to at least 700 by end March 2008. The chain
has a presence in Tier I and II cities, and is now looking
to grow into Tier III cities.
Telecom Retail also announced a partnership with ''Planet-M,''
the music and home entertainment retail chain, for increasing
presence through the shop-in-shop mode. Through the
tie-up, the company has opened in 40 Mobile Stores in
Planet-M stores across the country.
fashion firm Zara in talks with Future Group, to enter
Kolkata: Spanish fashion apparel brand Zara is
keen on exploring opportunities to enter India, and
has held talks with Future group and Shopper''s Stop.
to sources, Shopper''s Stop had been in talks with Zara
even before looking at a possible tie-up with Macy''s.
The Future Group is learnt to be not so keen on working
on the import centric model proposed by Zara.
Zara is known for its marketing strategy of timely delivery
of goods. According to some industry analysts, in India,
the lead-time in the fashion apparel space is at least
3-4 months, and the retail industry here does not presently
have the kind of supply chain management system in place,
which will take time to evolve.
also said that Zara generally follows the import model,
choosing not to opt for local manufacturing with any
of its partners worldwide, as it provides for the company
to retain control over both product and manufacturing.
It is not looking to divert from this business model
in India too.
is the flagship brand of Spanish retail group Inditex
SA. The brand''s marketing strategy and popularity do
not really call for celebrity endorsements. Zara''s fashion
offerings are slightly varied from the mainstream, but
affordable, and the brand has a strong presence in Hong
Kong, Singapore, Dubai and several other places.
foresees three-fold growth in 5 years
PepsiCo India has lined up aggressive expansion plans
envisaging a doubling of its turnover within three years,
and trebling it in the next five years.
the global beverages major, growth drivers will accrue
from non-carbonated drinks segment, which are mainly
the juices and enhanced water segments and not the traditional
cola business. Recent consumer trends have seen the
trend move from aerated waters towards a healthier lifestyle,
spurring demand for these segments.
is focusing on juices and fruit drinks market, and sees
itself as the king of the juice segment. Over the next
five years, the company foresees the non-carbonated
drinks business larger than its carbonated business,
a testament to changing consumption trends in the domestic
India and arch rival Coke had to combat several unforeseen
challenges in the recent past that affected their growth.
The company is banking on the economic boom and a spurt
in organised retail trade that facilitates a better
shopping environment, thereby facilitating consumption.
per capita consumption is minuscule for all soft drinks,
at less than 10 per capita in the carbonated drinks
segment and 15 per capita in non-carbonated segment.
a popular global sports drink brand, is at its pilot
stage and is scheduled to hit the shelves on a large
scale sometime next year.
to sell footwear in India
Mumbai: Samsonite India will soon sell its footwear
in the country through its stores.
its launch in Italy, the company has decided to launch
these products in India and Korea. The company feels
there is a lacuna in the Indian market for formal travel
shoes, and expects to compete with the retailer-based
Indian brands in the market.
footwear market today is primarily controlled by retail
brands such as Regal and Metro shoes, and Samsonite
perceives a vacuum in the space for international footwear
brands, even though Geox and Bally have entered India.
Priced between Rs2,000 and Rs4,000, the unisex range
of footwear is designed by Italian designer Alberto
Bontioni, and will be partly made in India through a
licensing arrangement with a third party manufacturer.
expects footwear sales in India to contribute between
Rs200 and Rs250 crore over the next three years. After
India and Korea, Samsonite plans to take its footwear
to West Asia. Samsonite India also plans to launch its
licensee brands Timberland and Lacoste (accessories)
later this year.
to broad-base its menu for growth
India is ''Indianising'' its products, and also plans
to introduce a large number of items from its international
menu to make its mark in the domestic quick service
restaurant (QSR) market.
its relaunch in 2004, the company has been doing better
than earlier, and has developed a full-fledged strategy.
As part of the roll out strategy in India, the company
will focus on introducing ''Indianised'' versions of the
menu, as well as offer a large variety of items on its
list of possible finalists for the menu comprises popular
zingers, a variety of burgers, and the twisters, which
are basically tortillas wrapped in a whole lot of greens
footfalls at its outlets in the country, the company
says that over 50 per cent of its consumers are the
youth, which is why it initially plans to cater to that
segment before the rest of the population.
its marketing and communications strategy, the company
said that it had recently concluded a television campaign
for its flagship product, hot ''n'' crispy chicken. After
the campaign, the company has seen an increase of almost
30 per cent in sales.
forward KFC intends to do more rounded and complete
communication campaigns for the whole of KFC and not
just a particular product.
Having earlier faced protests in India and abroad on
its chicken breeding practices, KFC is now playing chain
this time is playing safe and sourcing from Pune-based
poultry major, Venky''s.
is also going to include health-oriented facts in the
marketing communications of its products. The company
says all its chicken products have 100 per cent chicken,
and not minced meat like some of its competition. Also,
the oil it uses is totally trans fat-free.
India had to earlier shut shop in the 1990s following
heavy protests from anti-multinational groups and the
animal rights'' protector, PETA. This time around the
company intends to play it safer for a better run, and
plans to open 100 KFC outlets in the next three years.
Veetee Fine Foods enters ready-to-eat segment
Bangalore: UK-based Veetee Fine Foods, exporters
of premium basmati rice to over 50 countries globally,
has entered the ready-to-eat market with its range of
rice and curries, having invested $3 million on machinery
and other infrastructure.
in microwavable pouches, the range comprises 15 North
Indian curries such as aloo choley and dal makhani,
and three rice based dishes (vegetable biriyani, cumin
rice and pulao) in 300 gm (curries) packs and
250 gm (rice) packs. These dishes have also been sent
to countries such as the UK, Switzerland, US and New
company''s product offering has been launched in Kolkata,
and is soon to be rolled out in Bangalore Mumbai, Delhi,
Chennai and Pune, via all modern and traditional retail
company evaluates the RTE segment in the country to
be worth around Rs200 crore, and foresees it growing
to around Rs500-600 crore in about five years, by which
time it hopes to have acquired about 30 per cent market.
In the international segment, the company expects to
account for 70 per cent of sales.
Fine Foods has a manufacturing unit in Haryana, which
is capable of producing 60 lakh pouches per annum. The
company hopes to sell 2 million pouches in the first
year of operation across markets.
expanded product pipeline comprises ready-to-eat combo
meals, rice treats, ready-to-drink soups, sweets and
desserts, South Indian dishes and global cuisines such
as Chinese to start with. Next month, the company plans
to launch a health drink, and is researching to make
frozen parathas as well.
Fine Foods produces 100,000 tonnes of rice, 70 per cent
of which is exported to retail chains such as Tesco,
Cosco and Wal-Mart.
Group investing Rs100 crore in gyms
Mumbai: Kishore Biyani''s Future Group is to set
up ''children education centres'' in malls within the
next two months, as part of the company''s strategy to
innovate and offer varied services to the consumer.
company forayed into the health, fitness and gym services
within shopping malls and consumption centres via Talwalkars
Fit & Active, a 50:50 joint venture last year. Furthering
its venture, the Group has proposed the setting up of
50 gyms at a cost of Rs100 crore by next year.
Talwalkars and The Future Group will pool in the initial
capital of Rs25 crore equally, and the remaining funding
will accrue from membership fees and debt.
fitness centre is to be spread over an area of 7,000
to 20,000 sq ft, and plans to house a juice bar or an
indoor swimming pool, in addition to the gym and spa.
India increasing focus on dairy biz
New Delhi: Contrary to reports of Nestle India exiting
its dairy business in the country, the company made
public its enthusiasm on the segment, and has tied up
with several regional dairies to extend its national
has tied up with Andhra Pradesh-based Heritage Foods
India Ltd in the South, Bengal Nester in the East and
Dynamix Dairy Industries Ltd in the West for sourcing
milk, as well as processing, packaging and supplying
across the geography of these areas.
company has built Moga in Punjab as its procurement
haven, by sourcing the bulk of its milk requirement,
about 10 lakh litres per day.
current consumer trends towards health and wellness,
the Nestle India is stepping on the gas for its dairy
business, with several in the dairy division since 2006
in terms of packaging and product variations.
company is experiencing over 20 per cent growth in the
division. Dairy products such as ice cream and cheese
were not being considered by the company due to their
''not so healthy'' reputation, despite contributing their
fair share of revenues to the dairy business worldwide.
focus areas for Nestle will now be healthy products
such as liquid milk and its variants as well as yoghurt.
The company believes both categories hold immense untapped
opportunities. The firm''s product portfolio is already
made up of products like milk in cartons, slim milk,
Fresh ''n Natural Dahi, Slim Dahi, Jeera Raita and fruit-flavoured
company also plans to increase marketing, admitting
that it has not been aggressively promoting dairy products,
with TV advertising for its Fresh ''n'' Natural range
being its only marketing endeavour in the segment.
unveils roadmap to double sales, profits
Bangalore: FMCG company Dabur has removed the veil
from its Vision 2010 plan, that aims to double sales
and profits by the end of the decade. The company sees
health, home care, food and acquisitions as the main
company estimates domestic business to contribute 84
per cent of its total sales by 2010, with the share
of personal care being 30 per cent of the total business.
Health care''s share would be the next biggest, at 27
per cent. Inorganic growth will contribute about 4 per
cent of the total sales of the company. Geographically,
the share of the South will go up from 9 per cent to
about 15 per cent by 2010.
main goal of Dabur''s growth strategy is a balanced portfolio.
While health care''s share will go up from 27 per cent
to 32 per cent by 2010, personal care will witness a
decline from 41 per cent to 30 per cent, and hair care
will grow from 4 per cent to 6 per cent. Foods will
see a marginal increase from 10 per cent to 13 per cent.
is interesting is that Dabur''s rural growth has outstripped
its urban growth in almost every category.
has also decided to use excess manufacturing capacity
to generate "profitable" private business,
and will identify manufacturing locations in focus countries,
provided it makes economic sense from a "total
delivered cost" perspective.
company has also revamped its marketing in the South,
and is planning to make existing products more relevant
to the regional consumers. It has made significant investments
on ads in various regional channels in the south for
selected brands, and is planning to hire a few movie
stars to endorse some of its brands as well.
Bank plans marketing gold coins
Kolkata: United Bank of India (UBI) now proposes
to start marketing of gold coins for which it has sought
the approval of the Reserve Bank of India.
bank is finalising arrangements with suppliers, and
has identified 50 branches presently for the initiative.
Bank rechristened Axis Bank
Mumbai: The country''s third largest private lender,
UTI Bank, has changed its name to Axis Bank.
UTI brand is owned by UTI Asset Management Company,
which is owned by shareholders who have nothing to do
with UTI Bank''s largest shareholder, SUTI.
Bank was authorised to use the UTI name for five years,
an arrangement that expired in January this year. The
bank has hired advertising firm O&M to help with
the re-branding exercise, and to create brand awareness
across the country, at a likely spend of Rs50 crore.
The bank will have a new logo and colour scheme.
now eyes mobile phone market
Chennai: Discount retail chain Subhiksha, which
is currently the largest retailer in the country counting
in 780 stores across nine States has taken the discount
format to encompass mobile phones, with aims to be the
largest national retail chain for cell phones.
on an experimental basis in Delhi in July 2006, Subhiksha
has scaled up to 145 exclusive Subhiksha Mobile stores
in the NCR, Punjab, Gujarat, and in Mumbai and Chennai.
It has opened 15 stores in Chennai and wants to take
the counter up to 30 by year end, finally counting in
at around 400 stores across the country by March 2008.
competing chains, which have a network of stores, are
the Modi''s owned Hot Spot and Essar Telecom owned The
Mobile Store. Subhiksha expects sales of around two
lakh mobiles a month within the next six months. Additionally,
the company sells mobile phones via 285 supermarkets
through its shop-in-shop model.
Cedia Selects LPG
Facing dwindling sales of the Lancer Cedia, Mitsubishi
maker in India Hindustan Motors (HM) now aims to provide
more choice to its customers through a dual-fuel option
for the premium sedan.
Lancer Cedia Select is set to roll out with a factory-fitted
dual-fuel option that leaves it equally powerful and
fuel efficient while running on petrol or LPG. The new
variant attempts to widen the target customer base for
the Lancer Cedia, appealing to fuel-efficiency-conscious
dual fuel Cedia Select will be lower on emissions, with
the fuel combination being petrol or auto LPG. HM said
that the Cedia Select''s advanced microprocessor-controlled
technology makes it possible for the car to deliver
better fuel efficiency on two different fuels without
compromising on performance.
Cedia Select incorporates ''Sequent'' type technology
for effective performance on LPG, which is sourced from
BRC Italy, and uses a 32-bit microprocessor that syncs
real time with the engine''s ECU (electronic control
a ''full tank'' of 50 litres of petrol and another 48-63
litres of auto LPG, the Cedia Select is ideally suited
of covering well over 1,000 km at a stretch before a
re-fuelling pit stop.
factory-fitted Cedia variant comes with all the premium
features (air bags, ABS with EBD, MP3 CD player, wood
and titanium finish, chrome door handles, windshield
antennae, and alloy wheels) and is priced at Rs8.6 lakh
(ex-showroom, Delhi). The running cost is expected to
be about Rs3 per km in city driving while the auto LPG
is in use.
monsoon sales campaign is seeing the Mitsubishi Lancer
available to buyers at special prices of Rs6.54 - Rs7.59
lakh (ex-showroom, Delhi). During the monsoon promo,
HM''s highest selling variant in the Lancer range, the
diesel LXd variant, is to be offered at Rs7.5 lakh.
the policy of ''One country, one price'' HM has offered
this special price to Lancer buyers across the country.
LXd model of Mitsubishi Lancer is said to provide the
right balance of driving comfort, ownership cost and
value for money, and is loaded with premium features
such as power windows, MP3 player, electric mirror control,
rear AC ducts, height adjustable seat belts, gas filled
shock absorbers, keyless entry, central locking, tilt
steering and driver''s foot rest. The Mitsubishi Lancer
LXi (petrol) and LXd (diesel) are available in six colours
at 37 dealerships across the country.
launches 5 series sedan
New Delhi: with the domestic luxury car market showing
robust growth, BMW India has lined up a series of launches
to widen its product offering in the Indian market.
company announced the launch of its 5 series sedan on
Tuesday. The diesel version of the X5 is slated to be
launched by end 2007, and the X3 and M series would
be introduced sometime next year. Calendar year 2007
has so far seen sales of 424 units, of which over 300
included 3 series, with the balance being the 7 series.
company has revised its annual sales target to 1,200
units basis its order intake. Earlier it had planned
for sales of 1,000 units. Starting August, the BMW sedan
5 Series would be available with prices ranging from
Rs37 lakh - Rs45 lakh (ex-showroom).
looks at overseas options for its hues
Kolkata: Berger Paints is seeking acquisitions
in foreign markets. The company''s greenfield manufacturing
facility in Russia has recently commenced production,
and the paints major is now exploring opportunities
in China, Brazil, Russia and eastern European countries.
in India, the company is investing Rs15 crore for the
manufacture of automotive paint at a new facility in
is a focus market for Berger Paints, given its big potential.
The present plant at 3000 tpa for decorative and industrial
paints will line up major expansions after some time.
hotels to surf the mall pull
Kolkata: Budget category hotels are evaluating
the top floors of malls as a serious option to save
on real estate expenses and synergise fixed costs like
insurance and other public- liability costs, as well
as food and beverages.
mall owners find it tough to attract consumers to buy
space above the fourth floor, unless there are very
strong entertainment anchors. According to analysts,
combining malls with hotels is an already proven business
model in southeast Asia - especially Singapore, Bangkok
and Hong Kong.
space closer to the ground commands a higher rental
in malls. This makes it ideal for hotels to rationalise
their real-estate costs, given that real estate forms
50 per cent of a hotel room costs in India. Typically,
this model will leverage lease plans and rentals, rather
than sale of real estate on higher floors.
to reports, Ginger Hotels has tied up with Aerens for
a mall in Ludhiana, and with Ansal API for their malls
across India. Smilarly, Lemon Tree Hotels, with its
Red Fox brand, has reportedly upto three hotels in the
pipeline atop malls in Ghaziabad, Pune and Jaipur.
offer budget hotels with locational advantages, as most
are located centrally. The synergy in F&B reduces
costs and increases efficiency. On the flip side, analysts
warn that in a "mixed use" scenario, hotels
preferably need a dedicated driveway and lobby on the
ground floor, along with dedicated elevators. Moreover,
security is a huge factor that has to be kept in mind.
sees Dettol becoming a Rs1,000-crore brand
New Delhi: FMCG major Reckitt Benckiser (India)
Ltd, famous for popular brands like Dettol and Cherry
Blossom, expects to more than double revenues in three
years to Rs2,500 crores. Moreover, it sees its antiseptic
brand Dettol alone adding Rs1,000 crore to its top-line.
to the company, presently the penetration of personal
and home hygiene products in India stands at a small
six per cent, which is the niche the company will leverage
over the next few years, increasing penetration in this
segment and growing exponentially over the next few
years along with the market. The company operates on
a calendar year basis and had closed 2006 with revenues
of Rs1,200 crore.
Dettol has become a synonymous
for antisepctics in India, and had a turnover of Rs400
crore last fiscal. It is the biggest brand retailed
by Reckitt Benckiser India, and is expected to become
a Rs1,000 crore brand by 2010.
company is mulling to add several new products in its
portfolio in order to achieve its turnover target by
2010 and would launch the first such product in the
next three months.
also see : List
of Marketing Review