Volvo to launch S80,
XC90 in India in September 2007
New Delhi: Swedish
carmaker Volvo has announced plans to launch its sedan S80 and the sport-utility
vehicle XC90 by next month through its subsidiary, Volvo Cars India.
models will be available in petrol and diesel variants, with a 3.2-litre and 4.4-litre
engine for the petrol variant, and a 2.5-litre engine in the diesel variant.
company has a dealership each in Delhi, Mumbai and Chandigarh. Volvo Cars would
initially import both models as completely built units.
has priced the petrol variant of the S80 in the range of Rs39 lakh to Rs40.7 lakh,
with the price of the diesel variant ranging from Rs38 lakh to Rs39.6 lakh.
XC90 petrol variant is priced in the range of Rs46 lakh to Rs48 lakh, and the
diesel version of the SUV between Rs45 lakh to Rs47 lakh. The prices are not likely
to vary between the three cities where the company has its dealerships.
wear brand ''W'' to be sold through Reliance Retail
New Delhi: ''W'', the premium
ready-to-wear women''s wear brand, is actively looking to expand its presence in
the market, and plans to invest Rs50 crore over the coming two-year period to
secure an even more visible pan-India presence.
to ''W'' CEO Vijay Mishra, the brand ''W'' has been moving ahead rapidly since its
establishment in 2002, and has been able to carve a niche for itself in the ready-to-wear
segment by building on its innovative styling that couples international fashion
trends with day-to-day functionality.
intends to change its brand positioning from the contemporary Indian woman fusion
wear, to a more fashion oriented position, one which changing with fashion trends.
>CEO Mishra says
that over the past few years, the company''s understanding of its target audience,
the contemporary Indian woman, has revealed needs for more than just fusion wear
that the company caters to with its present line-up.
contemporary Indian woman needs to be trendy, and at par with the current trends.
''W'' is actively addressing the increasing demand as identified by its understanding
of its target market, and has decided to extensively increase its presence in
India as a complete wardrobe solution for the contemporary Indian woman.
company plans to expand its retail presence to 200 points of sale, spread across
30 cities, including 45 exclusive brand stores across 25 cities.
expansion plans have seen the company enter into the budget ethnic women''s wear
segment through its brand Weve. ''W'' has also entered into an alliance with Reliance
Retail to market Weve via the retail giant''s hypermarket and speciality format
''W'', the advantage of partnering with Reliance is significant savings on money,
retail space and logistics, freeing up resources to focus its energies on developing
the brand. Weve will not have any standalone stores, and will only be marketed
through Reliance Retail''s stores.
brand plans to cover around 250 sq ft of the Reliance''s store floor space in smaller
cities, and plans for its in-shop presence to cover around 450 sq ft in bigger
price points range from Rs250 to Rs495, as it is targeted at the middle class
modern woman. The second phase of brand development will see the addition of accessories
and other additions to Weve''s product line.
Kirloskar Motor to enter the used-car business
Chennai: Following Ford
and Maruti in their used-car endeavours, Toyota too has decided to move into the
used car space. Toyota Kirloskar Motor (TKM) is planning its enter the used car
business, ahead of new launches and more brand loyalty schemes.
used car business in India is largely unorganised, though there have been recent
attempts by some vehicle manufacturers to set up their own-brand outlets, which
will add Toyota to the list over the next couple of months.
car programme, Ford Assured, and Maruti''s True Value have seen good success in
not just profiting from the used car business, but also extending brand reliability
and customer loyalty.
organised used-car dealers face a much more difficult sales pitch, as customer
expectations are high while they continue to be unwilling to pay a premium on
the vehicle, unless they see a considerable value-add in buying the car.
sources indicate that the first outlets of Toyota''s ''You Trust'' are most likely
to open in Delhi, Bangalore, and Chennai, and would probably be owned and operated
by the company''s new car dealers in these cities.
used-car outlets would offer services such as evaluation and trading-in of customer''s
existing cars, and would cater primarily to buyers looking for a certified pre-owned
car that will serve as an upgrade.
outlets are expected to be perform independent of the new car dealerships, but
would be linked to them for after-sales support.
are expected to employ company trained engineers who would follow a pre-programmed
inspection and certification process designed to offer buyers improved reliability,
while computing the price for the used car.
to the programs of competing car companies, the dealership-cum-workshop would
also probably offer the used-car buyer a post-purchase warranty (of usually a
year), and/or free services during a limited period.
Ambani-promoted Reliance Entertainment to spend $100 million on Bigflicks venture
The Anil Ambani-promoted Reliance Entertainment Ltd (REL) is set to synergise
the online model of movie rentals largely present in the US and European markets
by adding online distribution of entertainment content to its portfolio.
company has launched an internet property (IP) under its ''Big'' brand, christened
www.Bigflicks.com. REL also plans to enter into the offline DVD / VCD rental business,
in a model likely to be similar to US DVD rental company Blockbuster, by launching
retail stores under the same brand - Bigflicks.
Entertainment president Rajesh Sawhney has announced that the rental business
will commence this September, with the first three outlets under the Bigflicks
banner coming up in Hyderabad, Pune, and Chandigarh. The company is looking at
a count of 100 outlets by the end of this financial year, and plans to grow it
to 500 stores over a three year period.
average Bigflicks store would be spread over a 400-500 sq ft area, with larger
flagship stores measuring upto 1,000 sq ft. The company is looking at a mix of
leased and owned stores. According to Kamal Gianchandani, COO, home entertainment,
Reliance Entertainment, the company plans to invest $100 million in both the ventures,
75 per cent of which has been earmarked for the offline DVD/VCD rental business.
envisages revenues accruing from the online venture, with a significant proportion
coming from the rental business. Subscriptions are seen to be the primary revenue
driver for the rental business.
companies like seventymm.com and moviemart.in, along with a few others already
operate in the DVD / VCD rental business in the country, which is still dominated
by the largely unorganised neighbourhood VCD libraries that function as a left-over
from the erstwhile proliferation of Video cassette libraries of the late 1980s.
of cable television was largely responsible for the withering away of hugely profitable
video libraries in the 90s, though video rentals continue to command a niche even
funding for the Bigflicks venture will come from internal accruals, with possibilities
of other funding options at a later stage, even though plans are yet to crystallise.
The company expects the venture to breakeven in about two years from launch.
in sync with home entertainment divisions of major companies, Bigflicks plans
to procure rental rights for DVD/VCD already being distributed by these companies.
REL intends to offer over 6,000 titles across movie genres, increasing to over
17,000 titles available at all the 100 outlets across the country.
online content distribution plans to target audiences by offering entertainment
content for free online streaming with advertisements, and for download on rent
or to own, without advertisements. Titles are likely to include TV serials, music
videos, as well as Hollywood and other international movies, directly targeting
the 25 million-strong NRI segment during the first year of operation.
target markets include North America, the UK, Canada, Middle East, South East
Asia, Europe and Australia, with movie purchases priced between $4.49 and $19.99.
hardware maker Sonodyne plans a comeback
Kolkata: Though it may have faded
in to memory, the country''s first home-grown sound label Sonodyne, once a key
player in the audio hardware industry in the 1970s, is now planning a comeback
in the domestic and overseas markets.
Sonodyne has seen exports of high-end studio monitor speakers to around 20 countries,
and is seeking to enter the home audio market overseas, once it establishes its
credibility in this highly critical and specialised space.
the home audio segment, Sonodyne offers complete music solutions through dedicated
experience centres, better known as "Listening Rooms", which are set
up via tie-ups with brand partners like Hitachi (for plasma and LCD TVs), and
Monster of the US (for cables).
company, founded by Ashoke Mukherjee and Aikat Mukherjee, and was a leader of
its time, bringing in innovation like hi-fi stereo systems under its sub-brands
of Uranus and Orpheo in the 1980s.
in the ''90s, the government imposed stiff trade barriers, including stipulations
that required large amounts of margin money to be kept in banks against imports.
This effectively ensured the demise of the brand, as Sonodyne has a very high
partnership too, ended with the brand, though Sonodyne survived somewhat by banking
on "sound engineering outsourcing" (SEO), which saw it supplying extremely
high-end speakers and amplifiers to niche global players, while maintaining an
almost invisible presence in the domestic market.
diversified into home audio, installed sound, professional sound, and studio monitoring,
building on learnings and technology from the SEO experience. The domestic mass
market continued to be out of the brand''s reach, on account of MNCs and their
cheaper products, high volumes and wafer-thin margins.
in its specialised niche, Sonodyne is present in most Bollywood studios and All
India Radio stations, various cinema halls, restaurants, auditoriums, and retail
chains. In the installed sound segment, the London and Sydney Opera houses, the
Saha Institute of Nuclear Physics, and a host of other establishments rely on
Sonodyne equipment. SEO continues to be the breadwinner for the brand, bring in
70 per cent of its revenues.
company now has three "Listening Rooms" in Bangalore, Mumbai and Ahmedabad,
and is looking to expand its retail footprint in Pune, Kolkata, Delhi and Hyderabad
over the next two years, during which time it plans to open 20 outlets, with some
of them being based on the franchisee models.
tariffs up by about 25 per cent starting September
will see hotel tariffs revised upwards in Mumbai by almost 25 per cent. Additionally,
hotels also plan to adopt single-currency pricing as well to profit from the strong
1 September, hotels will price tariffs in rupees, and will provide foreign guests
with the choice of settling their dues in an international currency of their choice.
Usually, the conversion rate applicable would be the day''s exchange rate, though
some hotels charge a premium on the daily exchange rate.
marks the commencement of the business season for the Indian hospitality industry.
With widespread room shortages, hotel companies stand poised to leverage the supply-demand
India Hotels to ramp up capacity by about 60 per cent
Kolkata: East India
Hotels (EIH), the Oberoi group''s flagship, is planning to boost capacity by 60
per cent, up from the existing 4,100 rooms to 6,800 across its hotels in India
as well as overseas.
is estimated that the company will require an infusion of up to Rs4,500 crore
to accomplish this capacity expansion. About Rs1,000 crore of this investment
will come from EIH, with the balance coming from borrowings and partner agreement,
whose hotels The Oberoi will manage.
remaining 1,400-odd rooms will come under the Oberoi banner through overseas projects
in Dubai, Maldives and Angkor Vat in Cambodia.
say that the company has already signed a memoranda of understanding to manage
hotels in seven other destinations, including two hotels in Abu Dhabi , one in
Oman, one at Sharm-el-Sheikh in Egypt, one in Marrakesh in Morocco and one each
at Paro and Thimpu in Bhutan.
two 30-room properties have been planned for Bhutan. The company expects a relatively
low occupancy rate of about 45 per cent, and plans to provide the room rate advantage,
which commands $800-$900 a day in the mountain kingdom of Bhutan.
hotels, one each in Pune and in Kolkata, are also reportedly on the anvil under
EIH''s Trident brand. The company is learnt to be seeking prospective sites in
billboards in Mumbai from 2008
Mumbai: Mumbai''s outdoor advertising may
wear a somewhat uniform look in times to come, thanks to the Brihan Mumbai Municipal
Corporation''s (BMC) plans to amend by-laws which will standardise the size of
billboards across the city by March 2008.
amendments will also see a new set of rules mandating several "dos and don''ts",
such as bans on billboards in many locations housing a number of heritage structures.
With beautifying Mumbai being their primary objective, the BMC''s move has
sent a shiver down the spines of hoarding owners, as they anticipate a huge impact
on their business from these new directives. In protest against the BMC''s move,
many of the hoarding owners have initiated a billboard-based ''information campaign''
which warning people of the potential "dangers" of re-sizing and pulling
down hoardings from several parts of the city.
hoarding owners'' body says that it pays the BMC Rs60 crore in taxes, and has raised
the spectre of citizens having to pay higher taxes to offset the revenue losses
incurred by the corporation once this beautification drive is initiated.
to Nabendu Bhattacharya, country head, Landscapes and Signscapes, Ogilvy Activation,
"the BMC wants to re-write the by-laws because its'' primary objective is
the beatification of Mumbai. It also wants to regularise the hoardings business.
The hoarding owners are alarmed because they think if the size of the billboards
is reduced, then the rates they charge may also come down". Bhattacharya
believes that just the reverse would happen, with the rates going up rather than
According to industry sources, there is no fixed tariff for hoardings
in Mumbai, which is derived basis the understanding and negotiation skills of
the hoarding owner and the client.
for the most premium stretch in Mumbai, from Haji Ali to Mahim Causeway, range
from Rs7 lakh to Rs12 lakh a month, with the average size of a billboard being
40 ft by 20 ft. Market dynamics, however, would logically dictate that restrictions
on billboards in parts of the city will see hoarding owners charge a premium,
since clients will have much lesser choice. Most industry insiders confide that
the BMC''s new plans will not really penalise hoarding owners of the city in any
the entire out-of-home or outdoor advertising business is estimated in around
Rs1,300 crore, with almost half of this accruing from billboards. The past two
- three years have seen a healthy 20-25 per cent growth in this advertising segment.
the beautification drive will see the absence of billboards, dubbed as ''eyesores''
by many in the city who wish to cherish the sight of non-commercialised heritage
buildings, from places like Colaba, Marine Drive, and Peddar Road, in south Mumbai.
>Rates of billboard
space near these areas are likely to see an upswing of an estimated 15 perc ent
to 20 per cent. Most of the hoardings business is concentrated around the suburbs,
which pretty much insulates their business from the BMC''s plans.
Leyland ties-up with Nissan to make commercial vehicles
second largest truck and bus manufacturer, Ashok Leyland Ltd, has partnered Nissan
Motor Co, to jointly make light commercial vehicles (LCVs).
partnership would see the formation of three ventures for vehicle manufacture,
power-train manufacturing, and technology development.
Leyland will hold the majority stake in the vehicle manufacturing venture, which
will have an annual production capacity of over 100,000 units in India.
launch in India
London: British trade magazine for the advertising industry,
Campaign ''is scheduled to be launched in India next month, to tap India''s media
is a fortnightly publication, and initially will have a controlled circulation
of 17,000, with an annual subscriptions at Rs2,500 being marketed simultaneously.
is one of four planned magazine launches in India by Lord Heseltine''s Haymarket
Media Group. The group publishes four titles through a local joint venture, including
What Car? and Autocar.
in India will be staffed locally and edited by Anant Rangaswamy, a former vice
president of TBWA India.
arrival in India coincides with the growth of advertising in India, which is growing
at about 20 per cent annually, as compared with about 3 per cent in Europe. The
growth of the economy has boosted spending in India, where 250 million people
constituting the consuming classes are exposed increasingly to newer brands of
consumer and lifestyle products.
appoints Kareena Kapoor its new brand ambassador
Mumbai: Fashion and accessories
retail chain Globus has appointed actress-model Kareena Kapoor its new brand ambassador.
company plans to leverage the actress''s wide appeal with its target market to
establish Globus in the smaller retail private label business, as is characterised
by its recent change in strategy.
plans to launch her own line of clothing in September. Globus, which has 19 stores
across India, plans to expand to 150 stores in 70 cities over the next five years,
by launching smaller stores under its private label.
effect: Dine-ins join delivery stores
New Delhi: The Pizza Delivery Experts,
as the company prefers to call itself, is now foraying into waiting tables.
from its global practice of pizza delivery, Domnio''s has begun opening stores,
which offer dine-in services as well.
to CEO Ajay Kaul, consumer feedback is the primary reason for this departure from
convention. Indian consumers, especially in smaller towns, prefer to go out and
eat instead of ordering, which has driven the company to offer a dine-in service
as well in the interest of business. Of the last 50 stores that Domino''s has opened,
most are dine-ins.
expects a large 45 per cent slice of the Rs500 crore organised pizza market by
the end of this fiscal. It also foresees a net profit of about 5 per cent of the
Domino''s has 156 outlets in India. The company is investing in new stores and
setting up Central Kitchens to make pizza dough across various locations.
a mammoth expansion, Domino''s plans to set up 500 outlets across India by 2010-11,
at an investment of Rs350 crore.
new Domino''s outlets would mushroom by March 2008, with another 70 being added
by 2009, and eventually growing at a total of 350 new outlets by 2010-11.
Domino''s store is owned and maintained by the company, with no franchisees. By
the turn of the decade, Domino''s is eyeing the Rs1,000-crore turnover.
recently replaced the huge success of Paresh Rawal as its brand ambassador with
the younger Arshad Warsi. On its'' tag line of "30 minutes or free",
CEO Kaul said about 1 per cent of all pizzas sold in India by Domino''s are given
away free. If the chain''s claims of selling 1.1 million pizzas a month is to be
believed, that would mean sales in excess of 30,000 pizzas a day, and around 300
free pizzas every day!
other fast-food chains such as Subway pegging their wares on the health plank,
Domnio''s remains unfazed. Kaul does not foresee Domino''s using the health platform
in the near future, and says that the pizza chain''s products are completely trans-fat
has about 30 per cent localised, or ''Indianised'', offerings on its menu presently,
and according to CEO Kaul, is constantly evaluating Indian options.
Healthcare to build 7-star medicity in Gurgoan
New Delhi: Ranbaxy promoter
group company Fortis Healthcare announced plans to invest Rs800 crore for setting
up seven-star medicity in Gurgaon.
over 10.7 acres, the 950-bed medicity''s construction is to start by the end of
this month. The first phase will see the medicity have a capacity of 350 beds,
and is slated for completion in a two or three year timeline.
to Fortis CEO and managing director Shivinder Mohan Singh, "Fortis International
Institute of Medical Sciences is going to be our flagship hospital and it will
contribute significantly in setting new standards of healthcare delivery in the
in a pact with Indian Railways for weekend packages
Bangalore: The Indian
Railway Catering and Tourism Corporation Ltd (IRCTC) plans to optimise resources
to cater to the needs of the budget traveller, by using unused train coaches.
to Deepak Chhabra, additional divisional railway manager, Bangalore division,
South Western Railway, coaches have been offered to IRCTC for use as part of weekend
packages'' to popular destinations such as Shirdi, Goa and Hampi are planned ex-Bangalore
shortly, and a similar arrangement with IRCTC-Bhubaneswar is also in the offing
to attract inward tourists to Bangalore, Mysore, Hassan, Coorg and Ooty from Bhubaneswar,
says B S Kiran, deputy general manager, IRCTC.
typical four-day-five-night, end-to-end package that would cover the Bangalore-Mysore-Ooty
/ Coorg route would cost a traveller about Rs5,700, excluding train fare between
Bhubaneswar and Bangalore.
outbound packages are planned for launch in October, with bookings likely to start
in about a week.
tie-ups for inward packages from Mumbai and Chennai are still in the work in progress
advertising services at the Hyderabad airport soon
Hyderabad: GMR Hyderabad
International Airport Ltd (GHIAL), a subsidiary of GMR Infrastructure, has awarded
an advertisement services management contract to Laqshya Media Pvt Ltd.
the pre-operation term, Laqshya will come up with the master plan on in-terminal
advertising and outdoor advertising, including concept designs, themes and location
planning for advertising at the airport.
will operate, manage and maintain the advertisements by offering ad-sites at the
airport to prospective clients for placing their advertisements, as per the information
given by GMR Infra to the BSE.
India to start CTV and TFT monitor production from Chennai plant soon
Consumer electronics major Samsung India Electronics Pvt Ltd will shortly
commission its Sriperumbudur plant near Chennai.
$24-million plant has a capacity to make 1.5-million colour television sets and
1 million thin film transistor (TFT) monitors.
$1.05-billion turnover company''s first plant in southern India is built on a 50-acre
plot in the SIPCOT Sriperumbudur Industrial Park.
the media here on Monday, Ravinder Zutshi, managing director, Samsung India, said,
"The total outlay for the project is $100 million and the remaining amount
will be spent by the year 2010."
the new plant will mainly cater to Samsung India''s domestic market, some portion
of the production may also be exported at a later stage, Zutshi adds. Presently
the company exports consumer durables like colour televisions, refrigerators,
washing machines and monitors from its Noida plant.
company has a target of $1.3-billion turnover this year and Zutshi says that performance
till date is in line with the target with the company has been logging double-digit
growth in all the major product segments.
says that during the six-month period January-June 2007 the company''s market share
was 22 per cent in the flat television category, 43 per cent in LCDs and 31.7
per cent in the plasma range. Samsung India ranks number one in the LCD and plasma
segments and number two in the flat television market.
the company had launched seven new models of flat and slim television sets.
the frost-free refrigerator segment, Samsung India had a market share of 23 per
cent of the total 74.7-million units sold in the country and 10.2 per cent out
of 1.7 million direct-cool refrigerator units sold. Zutshi adds that the company''s
market share during the first six months of the current year in the microwave
oven segment is 19 per cent, in washing machines 16.2 per cent and in the air
conditioner market 17 per cent.
company is studying the market feasibility for importing the commercial air conditioners.
the World Cyber Games 2007, Samsung India has announced special rates on select
liquid crystal display (LCD) monitor models that are most suitable for playing
and 19" LCD Myst model is being offered at Rs10,200 and Rs16,200 against
a comparative price of Rs14,000 and Rs.21,000 respectively.
19" and 22" LCD Mendel models are priced at Rs16,500 and Rs.21,000 as
against comparative prices of Rs.21,000 and Rs.27,000 respectively. The 19"
Mobius is now offered at Rs21,000 as against Rs27,000.
Samsung India''s proposed special economic zone (SEZ) unit to be located in the
Sriperumbudur Hi-Tech SEZ seems to be taking time to materialise. The company
had earlier stated that the SEZ unit to be built on the 30-acre plot would make
computer monitors, printers and other IT products.
Infosystems to target corporates and educational institutions for IT training
Computer hardware manufacturer HCL Infosystems Limited has decided to focus
on bulk customer segments viz., corporates and educational institutions to expand
its information technology (IT) training wing.
may be recalled the Rs11,648 crore turnover company entered the lucrative IT education
line a year ago and focused on the retail segment with its 30 centres branded
HCL Career Development Centres (HCL CDC). Located in major Indian cities, the
centre offers full and part time industry related courses in software and networking.
corporate/enterprise and the educational institutional segments are new to us,"
says S T M Eswar, head, HCL, Education. "The modalities of targeting them
are being worked out."
Meanwhile, the company is planning to add
70 more centres across the country taking the total number of HCL CDCs to 100.
According to Eswar, the company is more in favour taking the franchisee route
for expansion than through its own centres.
franchisee will have to invest around Rs25 lakh - Rs50 lakh to start a centre.
Nearly 80 per cent of our centres would be franchisee owned. However the faculty
is from the HCL group companies," he said. Out of the existing 30 centres,
HCL Infosystems owns just six.
HCL CDC courses are priced starting from Rs10,000 and goes up to Rs56,000.
HCL Infosystems is not looking at rapid expansion of its IT education centres.
"We are capping the number of centres at 100. We will increase the depth
of courses," says Eswar.
main reason for capping the number of centres is that the teaching faculty at
the centers is from the HCL group. It would be difficult to find faculty members
in house as each centre would require around 5 trainers.
about the placement Eswar says, the company does not give any assured placement.
Group company HCL Technologies Limited meets its requirements for new recruits
from these centres.
launches chocolate milk
Ahmedabad: With a view to expand its product offering
and consolidate its position in the beverages market, billion-dollar brand Amul
has launched chocolate milk, christened ''Amul Kool Koko''. The product is made
from pure milk, with the addition of cocoa solids, and has a target market of
teenagers and the youth.
at Rs15 for 200ml, the beverage is available in a bottle or a tetra pack of the
size, along with a 250ml can, which comes for Rs20, and a one-litre tetra pack
the past couple of months, Amul has introduced a slew of milk-based drinks, in
its bid to emerge as the single-largest entity in the beverages market. Amul Koko
is the latest addition to its beverage offering, which comprises flavoured milk
Amul Kool, low-calorie drink Masti Butter Milk, ready-to-drink coffee Kool Café,
and India''s first sports drink, Stamina.
up its offering, the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF)
is now the leading player in the Indian dairy beverages market, having secured
a staggering 90-per cent market share in the branded packaged dairy drinks segment.
market has been showing a double-digit growth. The Indian soft drink market is
worth about Rs7,000 annually. Carbonated soft drinks account for 85 per cent of
the total soft drink market, but the segment has seen its growth stagnate or even
decline in the last few years.
Healthcare looking to introduce more personal hygiene, lifestyle health care products
Elder Healthcare Ltd, part of the Rs 500-crore Elder group of companies, reportedly
has plans in the offing to enhance its offering in the personal hygiene, pain
relief and preventive lifestyle-related ailment segments.
company plans to introduce 10 to 12 additional products in the grooming and OTC
pharma segments in about a years'' time.
Healthcare is planning to introduce a muscle rub via a brand extension of the
existing pain relief balm brand Tiger, a mouth freshener via a brand extension
of its oral care brand AM PM (mouth wash), and a medicated shampoo under the brand
name Foltene which will address hair loss and rejuvenation. The company has not
ruled out the possibility of marketing tie-ups with international brands in these
company at present has products such as Tiger Balm (under licence from a Singaporean
company, Haw Par Healthcare), AMPM mouth wash, Burn Aid (under licence from Rye
Pharma of Australia) the Blistex range of lip care products, lozenges under the
brand name Solo and fairness cream and soaps under the brand name Fair One.
healthcare saw a turnover of Rs46 crores last year, and expects it to double this
year. The company is likely to spend close to Rs2.5 crore in promoting its latest
cream, Fair One Man, which has been introduced in the northern markets. The Rs300-crore
men''s fairness cream market has two other players, HLL and Emami, and is reported
to be growing at 100 per cent annually.
ramping up its dealership network
New Delhi: With Hyundai Motor India
Ltd. expecting its second plant expected to go into operation soon, the company
is now looking to speedily ramp up its dealer network to push sales for the increased
reportedly had 167 dealers in January 2007, and plans to expand its network to
250 by December.
dealerships are likely to follow the proven format, with sales, services and spares
facilities housed together.
company has been witnessing rather flat sales over the past few months, though
it has a healthy stable of cars, which include the Getz, the Santro, and the Verna.
sales are reportedly attributed by the company to production capacity constraints,
as a result of which domestic sales suffered, and even export orders saw some
reverse this trend, the company has worked at doubling its production capacity
through the second plant, which is scheduled to go into operation soon, and plans
to reach out to customers via its enhanced dealership network to facilitate sales
new plant is likely to be commissioned at Sriperumbudur by year end. It is adjacent
to existing facilities, and will double production capacity to 600,000 units from
the current 300,000. The new plant will help Hyundai better meet customer demands.
HMIL plans to export 40 per cent of its total production to Latin America, Europe
and West Asia.
Motor Co to focus on retail expansion
Mumbai: With sales heading south
for most players in the domestic two-wheeler industry, TVS Motor Co. is now planning
for an aggressive focus on sales.
company has drawn up plans to expand its existing chain of 1,500 service stations
and 550 dealers, to a combined new total of 3,000 retail outlets in a span of
of the existing chain of service stations will see an evolution into retail outlets
of these planned outlets will have a sales point to help generate additional sales,
and an additional lot of 1,000 new dealerships will form part of a chain of new
dealerships, better covering the domestic market.
According to media reports,
TVS expects motorcycle sales to touch 90,000 units by October-end. It sold 44,392
units in July.
launching small stores to build private label biz
Mumbai: The Rajan Raheja-promoted
Globus Stores Private Limited is seeking to move away from a multi-branded retail
chain format, and instead implement its new strategy of becoming a single store
a new strategy, Globus plans to launch smaller stores under its private label.
>With 90 per
cent of its present merchandise already under the Globus brand, the company now
plans to convert the balance into its private label brand as well, with Globus
being the mother brand, according to Vinay Nadkarni, CEO, Globus Stores Pvt Ltd.
its single brand strategy, Globus plans to undertake a brand build exercise by
roping in actress Kareena Kapoor as its brand ambassador.
to Akshay Raheja, vice-chairman,Globus Stores, "There are higher margins
in private labels, but at the same time it is a harder model for retailers. It
is going to take additional effort to build the private label business, but that
is the new business strategy we have decided for our stores."
designing as its USP, Globus plans to rely on its design studio to create new
fashions which target youth between 18 and 30.
has decided to create smaller format stores, especially in the malls which are
mushrooming across the country. The company plans to have smaller stores with
an average floor space of 10,000 sq ft., and wants to position itself as an ''affordably
priced fashion brand''.
plans to invest Rs800 crore in the opening of new stores. It intends raising money
for the endeavour via internal accruals, combined with a portion of debt and equity.
The company is not looking at a public issue.
The company plans to allocate
around 6 per cent of its turnover towards advertising spends, with Kareena Kapoor
replacing actress Soha Ali Khan as the face of its brand.
air show rings in deals with $3 billion
Organisers of the Moscow International
air show have claimed that the event generated over $3 billion in contracts, which
is triple the amount of business generated at the last show. That is, however,
way lower than the western air shows that Russia has modelled the show after.
The show opened last Monday and closed last Sunday.
hopes the air show to eventually will grow into a force to recon with as an industry
showcase event, similar to Britain''s Farnborough air show and France''s Paris air
show at Le Bourget. However, it still has a long way to go, since this year''s
Paris air show saw Airbus alone signing contracts worth $88 billion.
United Aircraft Corporation (UAC), an umbrella organisation for Russia''s plane
makers, signed some $1.5 billion in contracts at the Moscow International air
show. Deals made by other manufacturers would take the tally up to around $3 billion,
according to news agencies.
2005 edition of the biennial show brought about a billion dollars in contracts.
aviation sector remains strong, with military-related contracts totalling around
$400 million. State arms trader Rosoboronexport said nearly 800 companies from
about 100 countries participated in the biannual show, up from 70 two years ago.
The largest foreign delegations came from China, Latin America and the Arab countries.
the civil aviation market saw little action, dashing most of Russia''s hopes for
developing its presence in the regional jet segment with the Sukhoi Superjet 100,
which has a seating capacity of 75 to 95 passengers. It has Boeing amongst its
subcontractors, but reportedly got no new orders during the show. Sukhoi and the
Italian company Alenia Aeronatica signed a joint-venture agreement to sell and
service the planes.
major limitation for the growth of Russia''s aviation market is the older-design
Russian airliners, which do not conform to Western standards for noise and emissions.
Hence, it''s no surprise that one of the larger deals of this year''s air show was
the purchase of four Boeing 737s by Atlant-Soyuz, an airline controlled by the
Moscow city government.
deals announced during the show included an agreement signed by Boeing and Russia''s
VSMPO-Avisma, to create a joint venture to make titanium forgings to be used in
the production of Boeing''s 787 Dreamliner.
by the Sukhoi regional jet disappointment, Russia plans to spend about $250 billion
to build about 4,500 civilian aircraft by 2025.
is usual for an event of its size, media reported plenty of glitches, including
inadequate toilet facilities and long traffic jams.
next Moscow International Aerospace Show (MAKS) will also be organised at the
Zhukovsky air base near Moscow, from 18 August to 23 August 2009, according to
Boris Alyoshin, the director of the Russian Federal Agency for Industries.
government is considering setting up a transport and exhibition compound at Zhukovsky,"
Alyoshin said. Refuting rumours that a new show will replace MAKS in two years''
time, he said MAKS will be held on even years and an exhibition on ground forces
during odd years.
weapons exporting company Rosoboronexport, in the meanwhile, is bidding for the
contract to run MAKS 2009. Rosoboronexport''s Director General, Sergei Chemezov,
said his company has enough experience to run the MAKS shows, which are essential
for supporting Russia''s image as a major power in aviation and space research.
plans to launch a competitor to the Honda Civic
New Delhi: After taking
initial steps to compete with the runaway success of Honday City through its latest
sedan SX4, Maruti Udyog, the country''s largest car company is planning to launch
an even bigger car by 2009-10, which will take on the likes of the Honda Civic.
after almost a decade and a half, the company will drive into the sunset one of
its oldest and most successful models, the Esteem. The entry level sedan will
be replaced by a sedan version of the runaway success ''Swift'', sometime next year.
According to sources, MUL has sounded its vendors to gear up to supply components
for its big car project. MUL is also scheduled to launch a new compact car in
2009 that would mainly cater to the European market, but plans are afoot for its
launch it in the domestic market as well.
to industry sources, the ''big car'' from MUL''s stable will compete with cars in
the A4 segment, which comprises the likes of Honda Civic, Toyota Corolla and Skoda
Octavia Rider which come in a price bracket of Rs10-12 lakh.
plan to go to the next level is buoyed by the success of its latest offering,
the SX4 sedan, which has successfully made a dent in the segment that was led
by Honda''s City. The big car foray is also in step with global plans of Maruti''s
parent company, Suzuki Motor Corp, which is seeking an image makeover from a successful
small car maker to a car company with competence in bigger cars as well.
13 years of the launch of the Esteem, MUL has decided it is time to bring the
curtains down on the Esteem. The new Swift sedan, which is expected in replacement
is likely to have both petrol and diesel engine variants, in keeping with MUL''s
owners can rest easy, as the company would continue to provide service support
the model, as it had done in the past with other models that have been phased
industry growth predicted at 25-30 per cent by 2010
New Delhi: Domestic
wine consumption is slated to hit the nine million litres mark by 2010, displaying
growth at a CAGR of about 22 per cent per annum.
to ASSOCHAM president Venugopal Dhoot, ''''India''s wine market is currently equivalent
to around 200 people sharing one bottle, but it is likely to grow at a projected
CAGR of 22 per cent over the next three years, in view of rising consumption patterns
of wine not only among youngsters but equally so in senior aged group.''''
per cent of the demand for wine originates in major cities like Delhi, Mumbai,
Chennai, Kolkata, Pune and Bangalore. Present consumption tallies at around the
five million litres mark.
India accounts for 41 per cent of the country''s wine consumption, followed by
the North at 29 per cent, according to industry body ASSOCHAM''s paper titled Wine
: Bearing Fruit in India. About 63 per cent of the volume sales of wine are
through off-trade channel, ie in five-star hotels, pubs and bar-restaurants, the
A large teeming population under 30 years old is one of
the major factors contributing to wine consumption. Estimates suggest that around
650 million tipplers will go through an attitudinal shift in their alcohol consumption,
developing a penchant for wine.
Another significant contributing factor
is the rising disposable income among consumers, implying ies that a larger chunk
of the population will be able to afford such products. Also, the influences of
western culture are pushing Indian youth to adapt their lifestyle and standards
of living to more global levels.
measures adopted by the government, which are aimed at diverting the population
off stronger and more harmful drinks like spirits, have significantly aided the
growth of the wine industry.
state governments have reduced duties on wine, eased restrictions on distribution,
and allowed wine to be sold in supermarkets. On the industry side, they have provided
incentives for wineries to establish new facilities, according to the ASSOCHAM
for setting up a wine plant in the country with capacity of around a lakh litres
comes an affordable Rs1-1.5 crore mark. This has seen many entrepreneurs, both
Indian and foreign, jump at the opportunity.
These ''favourable'' conditions
for winemakers have seen the likes of top drink makers Diageo, Pernod Ricard,
LVMH''s Moet Hennessey and SABMiller enter India. Other companies like Anheuser-Busch
Co Inc., and the Danish brewer, Carlsberg are also on their way.
introduces premium Mercedes-Benz CL-Class at Chandigarh
New Delhi: DaimlerChrysler
India yesterday presented the premium Mercedes-Benz CL-Class for the Indian market
at the Brand Showcase in Chandigarh.
Wilfried Aulbur managing director and CEO, DaimlerChrysler India, unveiled the
featured the complete range of Mercedes-Benz cars in India that included the debutante
CL-Class, the S 320 CDI as well as the locally built S-Class, E-Class, the C-Class,
and the completely built imported range - the SLK-Class, CLS-Class and the M-Class.
of the Brand Showcase is to share our enthusiasm about growth and direction of
the company and to interact with our friends, customers and media in their home-cities,"
said Dr Aulbur. "We are committed to offer our customers the latest products
in the least possible time. A very good example of this is our introduction of
the new luxury Coupé, the CL-Class, this year."
India, which is the only automobile company in India to have completed ISO 9001:
2000 certification for its entire dealer network, reported a sales growth of 22
percent in the first seven months of 2007. The company had recently announced
a retail finance scheme, Star Choice, for Mercedes-Benz cars in collaboration
with ICICI Bank.
Sahajwala, director, marketing and sales, DaimlerChrysler India said that the
demand for Mercedes cars had been increasing in non-metro cities
the last few years, we are attracting younger customers in India: young entrepreneurs,
IT professionals and successful businessmen are increasingly fascinated by the
Mercedes-Benz brand," Sahajwala said.
Writing Products plans doubling capacity at its Dadra plant
New Delhi: With
a view to increase its presence and market share, Today''s Writing Products Ltd
(TWPL) announced plans to double capacity at its pen manufacturing unit at Dadra,
at a cost of Rs37 crore. The company is also actively looking at acquisitions
in Western Europe and America.
the plant has a capacity to manufacture two million pens per day. Post expansion,
this would increase to four million pieces per day.
company wants to increase its market share in the domestic pen market. Currently,
it has a seven per cent share, and would like to see it go upto 10 per cent, by
leveraging the increased capacity. The capacity augmentation will also increase
it export shares.
company''s subsidiary, Today''s Petrotech Ltd (TPL) has tied up with with ITT Corp
in an agreement which will see TPL set up a manufacturing facility along with
ITT in Gujarat, which will see it incur at an initial investment of Rs30 crore.
facility is being set up for the Fluid Technology group of ITT Corp, and will
be an integral part of ITT''s plans to enter into the Indian market. TPL will also
distribute all products manufactured and imported by ITT India for the process
TV enters into a distribution pact with Times Now, Zoom
Murdoch''s Star Group (Star) has announced a distribution arrangement with TV channels
Times Now and Zoom.
Now is an English news channel, and Zoom is a lifestyle and entertainment channel,
both belonging to one of India''s largest media organisations, The Bennet, Coleman
& Co. Ltd., publisher of leading newspapers The Times of India, and
The Economic Times, among others.
Now and Zoom are well-recognised, strong brands in India, both having witnessed
strong recognition since their launch in India.
the agreement, Star will represent Times Now and Zoom in building subscription
revenues for analog cable, DTH and other digital delivery systems.
primary viewers are the urban and upscale audiences, who look at its unique offering
of glamour and Bollywood news. Times Now and Zoom will remain free-to-air in the
current CAS markets.
offering ISD calls at Re 1/minute via VOIP services
New Delhi: Mahanagar
Telephone Nigam Ltd, tagged the ''lifeline of Delhi and Mumbai'' has launched Voice
over Internet Protocol (VoIP) based telephone services, which will enable MTNL''s
broadband subscribers to call international long distance to the US, the UK, Canada
and Australia at Re1 a minute.
more, customers would be able to make these ISD calls via a fixed line telephone,
without a PC.
launch of VoIP services, branded as ''Netfone'', were launched by the company on
Friday. Post this launch, an MTNL fixed line customer can avail four different
services on a single connection - conventional telephonhy, broadband internet,
VoIP phone, and IPTV - all simultaneously.
has partnered with Aksh Optifibre Ltd for the VoIP service. The company has installed
a capacity of 50,000 VoIP subscribers, and is looking at 10,000 connections for
this financial year, to be followed up with another 50,000 connections in the
services will be available to all MTNL PCO holders as well, and will be launched
initially on a prepaid basis, using which subscribers can make calls to about
avail of this service, subscribers will need to pay a non-refundable registration
and installation charge of Rs500, a refundable security deposit of Rs1,000, and
a quarterly rental of Rs243.
The prepaid cards will be available in the denominations of Rs100, Rs500 and Rs1,000,
with their validity ranging from three months, six months and 12 months, respectively,
with full talk value.
India launches Aspire 4310 and 4710 laptops
Bangalore: Acer India has announced
the launch of its Aspire 4310 and Aspire 4710 series in the Indian market.
Aspire 4310 series uses a Celeron M 520 processor, with 512-MB RAM, an 80-GB hard
drive and a widescreen display. With a LINUX operating system and Combo DVD drive,
the notebook is priced at a well affordable Rs20,999.
variant in this series with a 0.3-Mega-Pixel camera will be hit the market at
Aspire 4710 series comes with an Intel CoreTM2 Duo mobile processor T5500, 1-
GB RAM, and a 160-GB hard-disk drive. This too comes with the LINUX operating
system, and with Bluetooth is priced at Rs39,499.
variant of is the Aspire 4710z, which uses the Pentium dual core processor T 2080,
1-GB RAM, and an inbuilt camera and 160-GB hard disk drive.
businessman to launch an airline in the UAE
Dubai: An Indian businessman
is all set to launch an airline out of the UAE.
Kang Pacific Airlines, as the
airline will be called, is the fifth to be based in the UAE.
businessman Paul Kang earlier owned companies with businesses in aviation catering,
and the supply of goods to duty free shops in the UK and Fujairah.
airline plans to launch commercial service out of Fujairah in October, tapping
growing demand for air services to certain specific destinations.
is reportedly self-financing the airline launch, with $10 million in start-up
capital. This will be used to on lease two DC-10s, a Boeing 747 and a Boeing 737
over the next six months.
Initially, services will commence to the Philippines,
Bangladesh, India and Sri Lanka, and later will include flights to the UK. The
airline''s model will be that of a hybrid between a budget and a full service carrier.
is a fructification of a two-year feasibility study conducted by a professor at
Cranfield University, who is also a partner in the venture.
Motors launches Galant Fortis 1, a Lancer update
Tokyo: Mitsubishi Motors
Corporation announces the market launch of the Galant Fortis 1, known as the Lancer
in some markets including India, a new style sedan, at affiliated dealerships
by a 2.0-liter engine, two- and four-wheel drive Galant Fortis models carry a
price tag ranging from ¥1,785,000 to ¥2,436,000. (Rs6.24 lakh to Rs8.52
lakh / $15,200 to$20,800)
Fortis is the first new sedan introduced by the company in Japan in seven years
and has been developed to a product concept that called for "a global sporty
sedan that delivers high and well-balanced levels of safety, comfort and environmental
is now Nokia''s No. 2 market for handsets, moves ahead of the US
Reeling under the battery recall fiasco, Finnish telecom major Nokia has some
good news after a long time for India. On a three day visit to India, CEO Olli-Pekka
Kallasvuo announced that India is the second-largest market for the company, in
terms of handset sales.
continues to be the largest market for Nokia, but this news puts India ahead of
the US and the UK,
2005, India was ranked fourth, and third in 2006, in terms of sales. The quarter
ended June 2007 has seen India rise second place.
has the highest number of mobile users, at 477.3 million, followed by the US at
242.8 million, as of May 2007.
the 185 million mobile phone users in India, about 85 million prefer to use Nokia
handsets. The global base for Nokia is 900 million.
operators favour number portability
New Delhi: Though the government is
yet to act on TRAI''s year-old recommendations for the framing of a policy on number
portability in mobile phone services, the code division multiple access (CDMA)
operators seem to have come around to somewhat of a consensus and have stressed
on a need for it.
portability enables customers to switch service providers, without having to change
their mobile telephone number. Number portability is largely viewed as an important
and effective tool to ensure competition in the telecom market, as it provides
for the customer being able to select their service provider, without impacting
themselves with the usual communication issues brought on by the change of a mobile
letter to communications minister A Raja, with the CDMA service providers being
represented by the Association of Unified Service Providers of India (AUSPI),
is learnt to urge the Department of Telecom (DoT) to issue necessary guidelines
for implementing mobile number portability.
players have been favouring number portability across both fixed line and mobile
networks. Breaking their agenda into two, more-manageable parts, they now seem
be focused on pursuing the latter as a more achievable aim in the time being.
general SC Khanna, in his letter to the communications minister has advocated
this by saying that in case fixed-number portability cannot be implemented at
this point of time for whatever reason, mobile number portability should be dealt
with independent of fixed line mobility.
system for mobile communications (GSM) service providers, who are represented
by the Cellular Operators Association of India (COAI), are presently opposed to
the idea of number portability in mobile telephony, and would like to see a further
maturing of the telecom market before customers are allowed to take their phone
numbers with them.
CDMA operators include Reliance Communications and
Tata Teleservices. GSM operators comprise Bharti, Vodafone Essar, Idea, Aircel,
and Bharat Sanchar Nigam Ltd.
Birla to foray into hypermarket retail in about 5 months
Mumbai: The Aditya
Birla Group could unveil its hypermarket format in about five months, with the
first most probably spring up in Vadodara, according to sources. The company has
been working on this format for some time, and is reported to have made considerable
to industry sources, the group has signed a lease agreement for a hypermarket
in Vadodara. The store would measure between 80,000 and 90,000 sq ft., and would
be operational by end January 2008.
Ambani''s Reliance Retail recently launched the country''s largest hypermarket measuring
165,000 sq ft in Ahmedabad.
Gujarat market seems to be the preferred launch pad among organised retail players,
mainly because it is a very tough market for a company to operate in, on account
of consumer behaviour, preferences and spending patterns, which are crucial to
a hypermarket''s success. Tackling the toughest state first, retail players tend
to use the learning curve from their Gujarat launch to ensure smoother rollout
experiences in other parts of the country.
June 2007, the unlisted Aditya Birla Retail commenced business with the launch
of its supermarket format under the brand, "More". At present, the company
has 14 more supermarkets in operation in Pune, and is reportedly scouting for
locations for both the supermarket and hypermarket formats in other parts of the
Aditya Birla Retail had acquired Trinethra, the 172-odd-store-strong Hyderabad-based
supermarket retail chain.
proliferation of Chinese food: Yo! China plans expansion via different formats
Bangalore: Yo! China, the Chinese food restaurant chain, hopes to expand
its business via different formats. Co-founder and managing director Ashish Kapur
is looking to make the company a Rs100-crore business in about a year, and is
banking on different fast food vending formats such as kiosks, dine-ins at malls,
outlets in tech parks, international airports and railway stations to fuel their
growth plans. The vision for the company, as outlined by the managing director,
is to evolve the business to a Rs1,000 crore Chinese food company.
company says its key differentiators are its trendy appeal, international packaging,
and affordable price points, with entry-level pricing of items at Rs25 on its
wants to open 200 outlets across the country by 2009. Presently, it runs 27 outlets
across 15 cities, with plans for 30 more by the end of this financial year.
booming mall culture, specially in non-tier-1 cities, shows promising growth potential
which Yo! China would like to capitalise on. The chain recently opened four outlets
in Bangalore, and has another three in the offing there. It is also actively looking
at Chennai, where three outlets are planned for the next few months, Mr Kapur
2006 saw Yo! China receive Rs25-crore in venture capital (VC) funding from VC
firm Matrix Partners India. Yo! China''s same-store sales have seen 12 per cent
growth year-on-year growth. The restaurant chain has won bids for running outlets
at the international airport in Mumbai, and the domestic and international airports
Khanna brand ambassador for Dinesh Mills
Bollywood actor Akshaye Khanna
will soon be seen endorsing the suiting brands for Dinesh Mills Ltd.
actor signed up as the brand ambassador for the company, for a period of two-and-a-half
years. Other than films and media, Dinesh Mills would also be extensively using
their new brand ambassador in below-the-line activities such as posters and other
old Dinesh Mills has a turnover of around Rs150 crore, and has a product line
up comprising worsted suiting and blends, with exports to several European countries.
Government throws out organised retail: Reliance Fresh, Spencer''s told to shut
shop in UP
New Delhi: In a regressive move guaranteed to dampen retail
plans of organised retail corporations, the Uttar Pradesh Government has ordered
the closure of modern organised retail chains in Lucknow and Varanasi, while setting
up a five-member committee led by cabinet secretary Shashank Shekhar Singh to
review all aspects governing such outlets.
UP government''s reaction was triggered by an attack by a group of traders on Reliance
Fresh and Spencer''s retail stores in Lucknow, fuelled by reports of similar incidents
at outlets in Varanasi.
closure of the two stores has been ordered in Lucknow and Varanasi, ostensibly
in the light of the prevailing law and order, basis concerns raised by the district
decision on the eventual fate of large-format retail stores across the rest of
the State will be once the five-member Committee submits its report. The committee
would include Principal Secretaries of housing, home, agriculture and health as
members, and would also look into the law and order, health, sanitation and location
aspects of the existing and proposed retail stores.
India to launch small home appliances
Chennai: TCL India Holdings Pvt Ltd
(TCL) is aiming to expand its product range by the inclusion of small home appliances.
announced a new brand strategy, tagged ''the creative life'', outlining its hopes
to grow its business by 30 per cent this year. Last year, its turnover was Rs325
Wang, managing director, TCL India Holdings, told a press conference that the
creative life, which stands for creativity that invigorates life, means that the
company will work on consumer perception, and recommend unique and specially designed
products that offer the user value.
company presently spends about seven per cent of its annual turnover on market
promotion activities, and has a product range spanning colour televisions, air-conditioners,
washing machines and DVD players.
is undertaking market studies to evaluate the feasibility of expanding this range
with small home appliances such as magnetic induction cookers, microwave ovens
and rice cookers.
accounts for less than one per cent of TCL''s business though it continues to be
a ''high potential'' market, and one of the largest for colour televisions. India''s
southern States were the company''s strongest markets, but the West and East regions
are fast catching up. The company plans to build its network in the North to increase
company TCL Holdings is a global player, present in over 100 countries, and having
a brand valuation of $4.7 billion.
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