www.retailindia.tv

Air Sahara to reincarnate as JetLite

2007-04-17T11:15:00.000+05:30

To Offer Cheaper Fares, New Network Being Planned, Aircraft Leases To Be Renegotiated To Cut Costs JET Airways will operate Air Sahara as a separate airline under a new brand, Jet Lite. The airline will be positioned as a value carrier, which is ``not fully low-cost but positioning fares lower than full service airlines’’, Jet Airways chairman Naresh Goyal said. In his first major media

Ericsson, Nokia set to clinch $5-b deal

2007-04-17T11:11:00.000+05:30

Motorola Withdraws Petition; Decks Cleared For BSNL’s GSM PlanUS-BASED telecom major Motorola has withdrawn a petition challenging its disqualification in the 45.5 million lines GSM tender issued by stateowned Bharat Sanchar Nigam (BSNL), thus paving the way for implementation of one of world’s largest telecom equipment contract. Ericsson and Nokia, which had emerged as the lowest bidders, are

Gold sales shine on rising rupee

2007-04-17T11:05:00.002+05:30

While Gold Rose Globally By $5 Over Weekend, In India Parity Price Fell By Rs 100THE appreciation of the rupee has stemmed the gold price rise for domestic buyers. As the rupee steadily moved up against the dollar, from Rs 44 to Rs 42 in the last month, the gain in the net rupee value of gold has been buffered to an extent. "Gold price has steadily been climbing in the international market, but

NIIT scouting for overseas buys in retail & fin services

2007-04-17T11:05:00.001+05:30

LESS than a year after it acquired UK-based insurance solutions company Room Solutions, software services exporter NIIT Technologies on Monday said it is scouting for overseas buys in domains including retail and financial services. “We would like to do an acquisition in FY08. We are looking at companies both in the US and Europe,” said NIIT Technologies CEO Arvind Thakur, adding that the

Isuzu, Munjals talk 4-wheeler foray

2007-04-17T11:05:00.000+05:30

JAPANESE truck and sports utility vehicle-maker Isuzu is understood to be talking to the Munjal family of Hero group for a possible foray in the Indian market. The company — which currently supplies engines to several Indian players and Tavera kits to General Motors India — has a technical tie up with Sumitomo in commercial vehicle company Swaraj Mazda. According to sources in the auto industry,

Bajaj will not get off 100cc

2007-04-17T11:00:00.000+05:30

MONTHS after Bajaj Auto shocked the industry with news that it was exiting the 100cc segment, the company does not seem to be in any hurry to let go of the big volume segment. According to Bajaj Auto GM marketing Amit Nandi: “We are not getting out of the 100cc segment. Rajiv Bajaj’s statement has been misinterpreted. We will continue to sell 100cc bikes till there is demand.” Late last year, the

Cos bullish on ACs & fridges, TV sales may stay sluggish

2007-04-17T10:58:00.000+05:30

WITH consumer durables production growth rate plummeting to a meager 1.6% during February 2007, an ominous sign of an impending slowdown, one would expect marketers to be a worried lot, right? Not really, for the tone and tenor of leading marketers in the Rs 25,000-crore industry does not betray any nervousness on either demand slowdown or major revamping of their summer sales strategies. Holding

Production growth dips for durables

2007-04-17T10:56:00.000+05:30

HIGH interest rates coupled with the Free Trade Agreement (FTA) with Thailand have claimed the first casualty. In the first signs of a slowdown, manufacturing growth in the Rs 25,000-crore consumer durables industry dropped radically to 1.6% in February in contrast to over 20% growth last February. Imports of colour television, an important segment of the white goods industry, have gone up from

In race for eyeballs, marketers losing sight of their consumers

2007-04-17T10:47:00.000+05:30

NOW that cricket has caused such anguish among millions of Indian fans, and painful post-mortems are underway regarding the Indian team’s miserable performance, it may be the opportune moment to raise the question: why advertisers behave so un-sportingly. Why must the price they extract for allowing me to indulge in my passion for the game by watching it on TV be so high as to destroy the

Timex to open 200 retail stores

2007-04-17T10:45:00.000+05:30

Timex Watches on Monday said it plans to increase its share in the domestic market by setting up around 200 retail stores in India in next 30 months, reports PTI from Bangalore. "At the end of this month, we will have at least 45 stores and open four more," Timex GM marketing Vikram Arora said. The company is aiming to set up over 200 retail stores, mainly in metros, by the end of 2009 or in next

Home Solutions to scale up retail

2007-04-17T10:44:00.000+05:30

Home Solutions Retail is looking to scale up its home improvement and consumer electronics retail formats aggressively. Part of Kishore Biyani’s Future Group, the company is planning to expand its format stores across India with an eye to clock a turnover of Rs 5,000 crore by 2009-10, reports Our Bureau from Kolkata. The company’s outlets cover some 4 lakh sq ft of retail space. Home Solutions

Cholayil to regroup ops

2007-04-17T10:43:00.000+05:30

AT THE Cholayil group, it is time to regroup business and strategy. With ayurveda going global, the FMCG major is restrategising its core activities to bring in greater degree of autonomy into its businesses, namely the wellness and personal care brands, reports Bindu D Menon & V Hemamalini from Chennai. The group, founded by Dr V P Sidhan, has flagship brands Medimix soap and Cuticura talcum

Kingfisher snaps ground-handling deal with Indian

2007-04-17T10:18:00.000+05:30

KINGFISHER Airlines is terminating the ground handling agreement with Indian, which it struck at the time of inception two years back. The Vijay Mallya-led airline is ending the contract, which heralded a large outsourcing deal worth Rs 120 crore annually with Indian, as it is opting for self-ground handling, a company official said. The development comes at a time when Kingfisher Airline was

Lehman Brothers to ink deal with Future Capital LEHMAN Brothers Holdings, the investment arm of the US investment banking group Lehman, is close to in

2007-04-17T10:10:00.000+05:30

LEHMAN Brothers Holdings, the investment arm of the US investment banking group Lehman, is close to inking a partnership deal to invest over $100 million in a hospitality venture with Future Capital, the financial services arm of Kishore Biyani’s Future Group. The group has set up a separate subsidiary, Future Hotels, to build 50 hotels in the three- and four-star category involving an investment

Future to lay off Frito products, Biyani Plans To Push Own As Well As ITC’s Brands

2007-04-16T16:44:00.000+05:30

INDIAN retailers are seemingly ready to do a Wal-Mart — flex muscles and squeeze margins out of the Indian consumer product companies. The Future Group has taken on Pepsi’s Frito-Lay, and boycotted all Frito-Lay snacking products — Lays, Kurkure, Cheetos, Uncle Chipps and Lehar Namkeen to push own brand Tasty Treat and ITC Food’s newly-launched Bingo. Speaking to ET, Future group CEO Kishore

Big Bazaar Supercentres

2007-04-16T16:40:00.000+05:30

Big Bazaar is now getting bigger. Future Group has plans to launch Big Bazaar Supercentres, which will provide postal services, health and beauty zones and entertainment sections to the existing services. The group would launch six such centres in next two months at an investment of Rs 96 crore. "We will come up with six Big Bazaar Supercentres by June. Each Supercentre involves an investment of

Heavyweight bikes queuing up as Indian roads get wider

2007-04-16T16:39:00.000+05:30

GET ready for Rs 9 lakh-plus motorcycles. With the government allowing the import of bigger bikes with engine specifications of 800-cc and above last week, the big bike segment is all set to hot up. Bike-makers Yamaha, Honda, and Suzuki have already lined up plans to give competition to Harley Davidson, which will soon import its super-bikes in the country. According to sources, Japanese auto

BK Modi’s convergence to Spice up Hot Spot

2007-04-16T16:30:00.000+05:30

THE Rs 2,000-crore BK Modi Group is on the threshold of a major brand convergence exercise for its new mobile retail venture, Hot Spot Retail Pvt Ltd and its cellular arm, Spice Telecom. Moves are afoot to bring the mobile retail venture under the group’s mother brand Spice. The BK Modi Group, which has been in the mobile telephony business for over a decade, markets its cellular services under

Josef Seibel to enter India with Landmark

2007-04-16T16:13:00.000+05:30

The Dubai-based Landmark Group’s lifestyle brands business, LMG Brands, has entered into a licensing agreement with Josef Seibel Schuhfabrik GmbH, a leading German comfort shoe manufacturer, to market the company’s footwear brand Josef Seibel in India. The Josef Seibel brand, known worldwide as ‘the European comfort shoe’, comprises a wide range of both men’s & women’s shoes, clogs, sandals and

Caleffi in JV pact with Technopak promoters

2007-04-16T16:10:00.000+05:30

ITALIAN home linen brand Caleffi is all set to enter Indian homes. Caleffi SpA, the Viadana, Italy-based maker of bed linen and towels, has forged a joint venture — Caleffi Bed & Bath India Pvt Ltd — with Arvind Singhal and Harminder Sahni, the promoters of consultancy Technopak Advisors, for distributing its products in India. The $80-million company holds a 51% stake in the JV company. Caleffi

Rural to royal, ITC’s on fire without smoke

2007-04-16T15:41:00.000+05:30

FOR SIX years there have been no fullstops in ITC. Now, fresh from upgrading a 30-year relationship with Starwood Hotels & Resorts from the Sheraton badge to the top-of-the-line Luxury Collection tag for his seven biggest metro hotels, ITC Chairman YC Deveshwar can add another line to his three mantras “From seed to stomach”, “From fibre to fashion” and “From tree to text”. Dare we suggest, “From

Terrain Check is planning to enter womenswear market

2007-04-16T15:38:00.000+05:30

The Chennai-based garment brand, Indian Terrain from Celebrity Fashions, is planning to enter the womenswear market. Recently, Arvind Mills has also announced the extension of its mid-priced formal wear brand Excalibur to the womenswear category. The western womenswear market in India is expected to touch the Rs 1,000-crore mark within three years. Celebrity Fashion supplies garments to brands

Ocean Croc will soon launch its retail brand in India

2007-04-16T15:34:00.000+05:30

US-based footwear maker Crocs Inc., famous for its beach-going shoes worldwide, will roll out its Ocean Minded brand soon in India. The Rs 1,600-crore footwear brand, Croc, acquired Ocean Minded for Rs 8 crore. Ocean Minded is a leading designer and manufacturer of leather-based sandals, primarily for the beach, adventure and action sports markets. The company utilises recycled and recyclable

LG India will launch new radio campaign to make the listeners more participative.

2007-04-16T15:32:00.000+05:30

White goods giant LG India will soon launch its new radio campaign, Green Gyani. The company is spending Rs 15 lakh on the campaign, which will commence in all major metros. The male ‘Gyani’ character will be giving households tips and solving problems related to energy efficiency queries in home appliances. The household and food-related tips would keep changing every third week and would try to

Moser Baer decided to dent piracy market

2007-04-16T15:20:00.000+05:30

Last month, Moser Baer, one of the world’s largest optical storage manufacturers, decided to dent the piracy market by acquiring the rights to sell 7,000 movie titles across regions at Rs 28 for VCDs and Rs 34 for DVDs. Last heard, T-Series was also planning a similar foray and will hawk movie DVDs for Rs 45 a pop. The company will release video content on DVD and Video CD formats using

Jet set to fly Sahara in debt-free skies

2007-04-16T15:17:00.000+05:30

JET Airways is planning to run Air Sahara operations as a separate debt-free company without integrating the two balance sheets. The Lucknowbased Air Sahara will, however, be rebranded and operated most likely as a low-cost airline within a few months. The Jet management is currently working on plans to invest about Rs 100 crore as capital or loan to Air Sahara, once the acquisition is completed

You Are What You Watch: A Viewer & A Consumer

2007-04-15T17:24:00.000+05:30

In the over 300 channels, 24-hour satellite television age, you are what you watch. TV Graphics, a Lodestar Universal study, juxtaposes viewing habits and consumer segmentsAs a marketer do you really know your couch potato, err consumer? Sample this: in the Hindi heartland (socio-economic-class ABC), there are as many as half-a-dozen type of television viewers each amongst men and women. Almost

VAT’s THE WAY STATES REVENUE UP 25% IN ’06-07

2007-04-15T17:05:00.000+05:30

Hotel stay, power, legal advisory, amusement & recreation among 44 services likely to come under states’ tax net this fiscalLOOSEN your purse strings. YOU may have to pay more for a host of new services like hotel, motel and lodging, electricity transmission and distribution, legal advisory amusement and recreational services. States are planning to bring some of the 44 new services, given to

Not Connecting To Indian Consumers,Local Websites Of Multinationals Way Behind Western Counterparts In Terms Of Content, Look

2007-04-15T17:02:00.000+05:30

FORGET Web 2.0. When it comes to online user interface for their Indian consumers, MNCs still have a long way to go. For most leading global brands, local Indian websites are nothing compared to their websites for developed markets. Userfriendliness, interactivity and content — on all counts, Indian websites have a long way to go before catching up with their global counterparts. Want to find

Gold, silver shine on marriage demand

2007-04-15T16:53:00.002+05:30

FESTIVAL and marriage season demand ahead kept both the precious metals on the rise past week. Remaining volatile throughout the week, Gold made good gains over its previous week’s close, while Silver glittered by Rs 300 a kg over its previous close. Silver which opened weak by Rs 50 at Rs 19,650 per kg in the beginning of the week rose to Rs 20,000 close following London Silver which went up

ARCELOR MITTAL RACES AHEAD

2007-04-15T16:53:00.001+05:30

Arcelor Mittal is believed to have raced ahead in the race to acquire Mitsui’s 51% stake in Sesa Goa. Arcelor Mittal is believed to have put in a bid of about Rs 2,200 per share ahead of Aditya Birla group who has put in a bid of about Rs 2,000 per share. Arcelor Mittal, the world’s largest steel company is pitted against global majors such as Vedanta Resources and global mining major CVRD. If

RELIANCE MAY BE OUT OF DOW RACE

2007-04-15T16:52:00.000+05:30

Reliance Industries, which was widely reported to have shown interest in picking up stake in Dow Jones, has reportedly withdrawn from the race after private equity firms and investors from Middle East evinced interest in a bid as high as $50 billion. Meanwhile, Dow Chemicals has fired two executives for holding unauthorized talks to sell the company.Courtesy: EconomicTimes

TATA STEEL SHARE ISSUE

2007-04-15T16:50:00.000+05:30

The board of Tata Steel will discuss various fund raising options, including preference share issue and issue of perpetual bonds, to raise money for its Corus buy when the board meets shortly. Tata Steel has raised $8.8 billion in bridge loans, including $7 billion through its special purpose vehicle Tata Steel UK and $ 1.8 billion in its Singapore SPV. The promoters, which have 30.5% stake (

HERSHEY IN TALKS WITH AMUL

2007-04-15T16:49:00.000+05:30

In what is being seen as a face saving exercise, US-based chocolate maker Hershey continues to resume talks with Gujarat based co-operative milk giant Amul to explore “business cooperations”. The move comes days after Hershey acquiring majority stake in Godrej Beverages and Foods Ltd (GBFL). Amul had accused Hershey of keeping it in the dark till the last minute about its talks with Godrej.

Jet-Sahara deal airborne again

2007-04-15T16:47:00.000+05:30

IN a volte face from its earlier stand last year, Jet Airways has signed an amended agreement to buy Air Sahara at a reduced enterprise valuation of Rs 1,450 crore from the earlier figure of Rs 2,250 crore. The deal was cornered by legal wrangles as Jet Airways had walked out of the deal in June last year. However, Jet has already spent about Rs 180 crore in operating Air Sahara, Rs 1,500 crore

White Flash: India says cheese to oral hygiene

2007-04-14T17:20:00.000+05:30

Oral Care Index At New High As Price Cuts, Shift To Toothpaste Power GrowthARE Indians back to brushing their teeth? The country’s oral-care index has foamed up to a new high after three years of decay raising speculation whether the country compromised on personal hygiene all this while. Colgate, which traditionally controlled half of the oral-care industry, recorded the sharpest rise in market

SC refuses interim relief to TataSky

2007-04-14T17:16:00.001+05:30

The Supreme Court on Friday refused to give interim relief to DTH operator TataSky which has challenged the stay granted by Madras High Court in a case pertaining to sharing of signals by broadcaster Sun TV. A bench comprising Justice B N Agarwal and Justice P P Noalekar declined any interim relief to TataSky, saying the matter would be taken in due course. The issue has been posted for hearing

ET honoured among 91 superbrands

2007-04-14T17:16:00.000+05:30

SUPERBRANDS India, the independent arbiter on branding, paid a tribute to some of the leading brands in India. About 91 brands bagged the coveted award in a glittering event attended by a host of marketing luminaries in Mumbai. The occasion was graced by the Maharashtra governor SM Krishna who addressed the audience saying that the culmination of Superbrands is what represents brand India. Urging

Coca-Cola ready to gulp Brindavan

2007-04-14T17:13:00.000+05:30

HINDUSTAN Coca-Cola Beverages (HCCB), the bottling arm of Coca-Cola India, is in final stages of negotiations to acquire Brindavan Beverages, its fastest growing and among its biggest co-packers. The deal is expected to be finalised next week. The size of the deal could not be ascertained. Brindavan Beverages, owned by SN Ladhani, has co-packing lines in Bareilly in UP and Hospet (in Karnataka).

He’s coming, can Wal-Mart Wade through?

2007-04-14T17:10:00.000+05:30

Chief Opponent Wade Rathke To Fly Down Next Week To Mobilise Public Opinion Against Retailer EVEN before Wal-Mart could set up shop in India, one of America’s most prominent anti-Wal-Mart activists responsible for dragging the retail behemoth to various courts in the US, Wade Rathke, is flying into the country next week to mobilise public opinion against the Bentoville retailer. He has also

Hindalco may buy out Alcan in Utkal Alumina

2007-04-14T17:09:00.000+05:30

THE Aditya Birla group flagship Hindalco may buy out Canadabased Alcan’s 45% equity stake in the joint venture Utkal Alumina International after the global company said it plans to exit the project. As per the initial shareholders’ agreement between the Birlas and Alcan, Hindalco has the first right of refusal for its partner’s stake. Hindalco and Alcan were to jointly build the project, which is

Wal-Mart shareholders refuse to be brushed off

2007-04-13T17:34:00.000+05:30

IN SEPTEMBER 2005, three Wal-Mart Stores officials and a handful of prominent shareholders gathered in Manhattan for an unpublicised meeting. The investors renewed their call to name a ‘special committee of independent directors’ to investigate the company’s workplace policies amid a rising tide of employee lawsuits. Wal-Mart deflected the request. Such a panel might “get the issues wrong,” said

‘Jet-Sahara merger will alter industry contours’

2007-04-13T17:33:00.000+05:30

THE Jet-Sahara deal is in the interest of the two airlines, the aviation industry and the consumers, said Air Sahara president Alok Sharma. “It's a win-win deal for both airlines. Consolidation in the sector had to happen for the industry to grow. An industry that is ill is not in the interest of the nation or the consumers,” he said soon after the Jet-Sahara deal was officially announced. With

Arvind takes brand play to mid-priced womenswear mart

2007-04-13T17:30:00.000+05:30

ARVIND Mills is taking the brand play in the western womenswear into the mainstream market. Its mid-priced formal wear brand Excalibur, which till now was limited to premium players like Van Heusen, Allen Solly and Scullers, is being extended to womenswear. Targetting the young executives, Arvind Mills is set to launch the Excalibur womenswear by October. Arvind Mills plans to replicate the Live,

Whirlpool to make India export hub for small brands

2007-04-13T17:28:00.000+05:30

US-BASED Whirlpool Corporation is likely to make India the export hub for its small appliances brand, Kitchenaid. It has already set up a global design and development centre for the Kitchenaid brand in Pondicherry. Addressing reporters on Wednesday, Whirlpool of India vice-president (sales) Tamalkanti Saha said: "Under the Kitchenaid brand, we sell washing machines. We also export to eastern/

Split ACs leave competition cold with cheaper options, aesthetics

2007-04-13T17:26:00.000+05:30

SPLIT AC makers are recording sizzling growth numbers this year by offering competitive pricing, better aesthetics and focusing on smaller markets. The price gap between split ACs and window ACs has significantly narrowed down from Rs 10,000 to around Rs 3000-4000 encouraging purchases. Split ACs will account for 53.1% of total industry sales against 44.4% last year while window ACs will account

Preferred Brand for Indian Consumers

2007-04-13T17:25:00.000+05:30

Courtesy: EconomicTimes

Toyota’s global small car may drive out of India

2007-04-13T17:18:00.000+05:30

Co Targets 200,000 Units In India By 2010THE small car brandwagon seems to be in top gear. Japanese car major Toyota is reportedly working on a global small car platform which will also be manufactured in India and will likely be built with a strong India focus. The mini car will be part of Toyota’s stated target of hitting 10% marketshare in India by 2010 and will likely be cranked out of a

ET crowned Consumer Superbrand yet again

2007-04-13T17:16:00.000+05:30

The Economic Times has done it again. For the second time running, the country’s leading financial daily has been declared a ‘Consumer Superbrand’ for 2006-07 by Superbrands India. What’s more, for its second edition on Consumer Superbrands, Superbrands India had shortlisted just one brand per category for the final list of brands. ET is thus the leading brand when compared to all its peers in

Just a phone, and time-tested strategies stand altered

2007-04-13T17:12:00.000+05:30

FOR A better part of the last two decades, Hindustan Lever (HLL) has been the employer of choice for elite B-school students wanting to make a career as marketers. Success in the fast-moving consumer goods (FMCG) sector was a marketer’s true test and HLL’s mammoth and legendary marketing machinery the tribe’s benchmark. Three years ago, when CEOs of Coca-Cola India and PepsiCo made strategy

Mahindra Holidays in pact with Austria’s Bon Alpina

2007-04-13T17:03:00.000+05:30

MAHINDRA Holidays and Resorts India, part of the $4bn Mahindra & Mahindra group, has entered into a management contract with the Austria-based hotel, Bon Alpina. The skiresort hotel based in the Alps is the first overseas venture for the group. The company began due diligence for the Austrian property late last year, sources said. This 97-room, 4-star, Hotel Bon Alpina consists of three

Sabare in talks with Pantaloon

2007-04-13T16:59:00.000+05:30

SUPPLYING to Wal-Mart was the takeoff point for Karur-based textile company Sabare International. From being just a vendor company, Sabare is in the process of consolidating its business. It is now engaged in preliminary discussions with Kishore Biyani-owned Pantaloon group to popularise the concept of store-withinstores for home textile products in the domestic arena. Sabare International is

Bajaj Auto plans 20-25% hike in ad budget

2007-04-13T16:57:00.000+05:30

Two-wheeler major Bajaj Auto is betting big on ad campaigns and is pushing up the budget, starting with its new 200 cc Pulsar motorcycle on whose promotion it has spent Rs 1-2 crore. “The company’s overall promotional budget for 2007 will go up by 20-25% as compared to that of last year’s. We have spent Rs 1-2 crore on Pulsar’s new advertisement,” Bajaj Auto GM marketing Amit S Nandi said here on

Cobra beer to set up $10-m plant in N India

2007-04-13T16:55:00.000+05:30

To enhance its current production capacity and find a stronger foothold here, UK-based Cobra beer would set up a greenfield plant in North India with an investment of $10 million. “A greenfield plant with a capacity of 5-million cases per annum will be set up in North India with an investment of $10 million and the production will start in next one year,” Promoter and CEO Cobra beer Karan

Diesel to cut deal with Arvind Mills

2007-04-13T16:52:00.000+05:30

FINALLY, cult designer Renzo Rosso is cutting a deal with textile baron Sanjay Lalbhai. Iconic Italian clothing company Diesel is expected to ink a joint venture with Arvind Mills to enter the Indian market. Diesel, famous for its edgy denims, has narrowed down the search for a local partner to Arvind Mills after looking at other potential allies like Murjanis and AV Birla, informed sources said.

Air Sahara leaving on a Jet plane, finally

2007-04-13T16:38:00.000+05:30

Jet To Take Over Operations For Rs 1,450 Crore Without Warranties And Indemnities IN A complete volte face to its position in June last year, India’s largest airline by marketshare, Jet Airways, has signed an amended agreement to acquire Air Sahara. The difference between the original share purchase agreement of January 18, 2006 and the amended version is that the enterprise value of the airline

Stop! Govt may tax that extra car

2007-04-13T16:15:00.000+05:30

BE PREPARED to pay additional tax on the second car you buy. The urban development ministry has proposed to levy a cess, over and above road tax and VAT, on every second car in a household. This would come as a major dampener for car owners in metros like Delhi and Mumbai — Delhi has around 20 lakh cars while Mumbai has around 16 lakh. The proposal is being deliberated by the state governments,

Amitabh Bacchan -The New India

2007-04-12T17:37:00.000+05:30

‘It is easy to achieve success; it is difficult to maintain it’

2007-04-12T17:14:00.000+05:30

Future Group CEO Kishore Biyani had a two-hour breakfast meeting with ET’s Indrajit Gupta and Kala Vijayraghavan earlier this week, in which he shared the logic behind the retail group’s new makeover. Excerpts from the interview:You seem to have segregated mature and new businesses. Why? We are immunising mature businesses from the risks we face in new businesses. So we can form a clear P&L

CEO of Pantaloons Retail, Kishore Biyani takes Future stock

2007-04-12T16:37:00.000+05:30

Pulls Out Of Ops; Works On Process, Structure & StrategyTHESE days, Kishore Biyani is reading a new book titled ‘A Perfect Mess’. The book, written by an American professor and a business journalist, questions the widespread assumption that organisation and neatness are inherently better than disorder and clutter. It’s a theme that has always been close to Mr Biyani’s heart. In fact, his popular

SAHARA to be A LOW-COST FLIER ,Jet-Sahara deal still stuck on the runway

2007-04-12T16:23:00.000+05:30

LEGAL proceedings on the Jet-Sahara rapprochement continued through Wednesday but both sides failed to reach a conclusion. The airlines have asked the arbitration tribunal for more time, to prepare a consent order that will be presented for approval. The revised contract for the biggest buyout in Indian aviation industry is expected to be signed over the next few days. Meanwhile, even as talks

Big’s Better: Top-end cars zip ahead of mass models with 56% growth

2007-04-12T16:20:00.000+05:30

BIG CARS now spell big growth in India. When it comes to the car mart, the creamy layer is definitely top of the heap. The just-ended fisc may have seen top-gear growth across the product and price range, but the biggest gainers came from class segments rather than mass ones. According to industry data, the A4, A5 and A6 segments comprising bigger mid-size cars from the Honda Civic and Accord and

MFs crack ad code with awards

2007-04-12T16:19:00.000+05:30

Funds Find New Benchmark In The Face Of Sebi’s Ban On Misleading Campaigns FUND houses think smart. Now, they advertise smarter. Thanks to the various mutual fund awards these days endorsed by ‘credible’ third-party rating agencies such as CRISIL, ICRA and Lipper, the 30-odd asset management companies (AMCs) of the country seem to have found succour at last. The relief to the fund houses comes

Retail majors join hands for quality

2007-04-12T16:17:00.000+05:30

HAVE you bought some stuff from a mall and didn’t find it to your satisfaction? Want to return it, but not really sure if the retailer would take it back? Your dilemma may end soon as corporates are making extra effort to see that you get a quality product, quality service and your grievance is readily redressed. Retail majors Pantaloon, Reliance, Bata, ICICI Bank and a host of other companies

It’s Time Marketers Explored Community-Specific Consumer

2007-04-12T16:16:00.000+05:30

INDIA has large regional and religious communities that present sizeable cultural segments that can be targeted by marketers as specific consumer segments. These segments are cohesive and unified by similar cultural beliefs, social mores and emotional drives which can be leveraged by marketers to position community specific brands. The recent NCAER survey indicates that both (Hindu and Muslim)

Heat’s on inflation, not growth, says FM, Moderate Credit Growth Is In Economy’s Interest, Emphasises Chidambaram

2007-04-12T16:15:00.002+05:30

FINANCE minister P Chidambaram on Wednesday said the government’s ‘goal is to moderate inflation without hurting growth’. Without specifying a time frame within which inflation would be moderated, the minister said “if supply-side improves, along with fiscal and monetary steps, inflation will moderate”. Talking to reporters here on the sidelines of the Iosco summit, Mr Chidambaram said, “RBI will

Cellcos to share infrastructure, network

2007-04-12T16:15:00.001+05:30

Move To Facilitate Network Plans Of Vodafone & Bharti; Trai Not In Favour Of Spectrum SharingTO EXPEDITE the rollout of mobile network across the country, the Telecom Regulatory Authority of India (Trai) has proposed that mobile service operators be allowed to share passive, active infrastructure and backhaul network. The authority has, however, not favoured sharing of spectrum, a Trai release

Top cellcos switch off sub-Rs1k handsets

2007-04-12T16:15:00.000+05:30

THEY are dubbed as the means to connect the other half a billion. Despite the vast market in rural India, sub-Rs 1,000 mobiles are not on the radar of top handset makers. Mobile biggies Nokia, Sony Ericsson, LG and Samsung are not planning to join the race because it will hurt their bottomlines. The differential of just around Rs 400 between colour and black & white (monochrome) handsets makes

Sahara sell-off moolah may land in real estate

2007-04-12T16:14:00.000+05:30

WITH the Sahara group all set to exit the airlines business, a major chunk of the sell-off moolah is likely to be re-invested into its real estate business. The group had launched Sahara City Homes project with a lot of fanfare around two years ago and at least five township projects are ready to take off in the coming months, including those in Lucknow, Indore, Ahmedabad, Nagpur and Gwalior,

Global warming puts coffee production at risk

2007-04-12T16:13:00.000+05:30

GLOBAL warming poses a threat to future world coffee crops with rising temperatures and drought likely to force some producers to seek higher and cooler land, according to a report issued by analyst FO Licht. “Few now doubt that global warming is going to present the world’s coffee growers with a big challenge in the years to come,” it said. It noted a United Nations Environment Programme

Sun TV comes live on Reliance mobile phones

2007-04-12T16:12:00.001+05:30

Reliance Communications on Wednesday announced its tie-up with Sun TV Network to beam all the programs of Sun TV, the leading 24-hour Tamil channel online on Reliance mobile handsets. While Reliance Communications has similar tieups with several national news channels, this is the first time it is tying up with an entertainment channel for streaming live video content on-line for its subscribers.

Polymed eyeing US market, targets 15% revenue by ’10

2007-04-12T16:12:00.000+05:30

MEDICAL device manufacturer Polymed Medicure is eyeing the US market, making it the first Indian company to do so. Once the company’s plant in Faridabad gets USFDA approval, it will start exporting four medical devices to the US, which accounts for 25% of the global $70-80 billion medical device market. Medical devices are intermediate products used for drug delivery or suction and generally made

Bharti-Wal-Mart deal to be inked this month

2007-04-12T01:44:00.000+05:30

THE much-touted Bharti-Wal-Mart retail deal will be finally signed this month amid concerns expressed by various political parties over the entry of foreign retailers in India. ‘’The deal with Wal-Mart for the retail venture will be signed this month,’’ Bharti Enterprises chairman Sunil Mittal said on Tuesday. Bharti, which has announced a $2.5-billion investment till 2015 on front-end stores,

PPR picks 27% in Puma for $7b

2007-04-12T01:39:00.000+05:30

CORPORATES BLAZE DEAL STREET WITH NEW ACQUISITION PLANS PPR, the retailer controlled by France’s billionaire Pinault family, bought 27% of Puma AG and offered to acquire the rest of the sporting-goods maker in a transaction totaling 5.3 billion euros ($7.1 billion). PPR, owner of the Gucci Group of luxurygoods brands, paid 330 euros a share in cash for the stake held by German

Platina prices are down after tax sops for Bajaj

2007-04-12T01:36:00.000+05:30

AFRESH round of price war in the low-end motorcycle segment may well be on the cards. Bajaj Auto (BAL) on Monday lowered the price of its 100-cc Bajaj Platina by Rs 3,000, taking advantage of the tax sops for its new plant at Pantnagar (Uttarakhand). Bajaj Platina will now be available at Rs 33,000 (ex-showroom). Bajaj has already indicated that it would gradually exit from the 100-cc segment

Murugappas launch first branded agri-retail store in India

2007-04-12T01:33:00.000+05:30

CHENNAI-based Murugappa Group, which has major interests in the rural economy segment — sugar, farm inputs and biotech — is gearing to cater to the needs of farmers through its recently-launched branded agri-retail venture. With rural marketing accounting for the lion’s share of its consumer business, this move by the $1.6-billion group with myriad interests, is seen as a critical component of

ILabs takes 50% stake in Viswas Business, a farm retail firm

2007-04-12T01:30:00.000+05:30

WEEKS after investing Rs 23 crore in pharmaceutical retail chain Med-Plus, Hyderabad-based investment firm iLabs is betting big on a farm retail firm. ILabs has picked up 50% stake in Viswas Business Synergies (VBSL), also from Hyderabad. While company officials declined to disclose the quantum of funds invested, it is expected to be around Rs 30 crore. With 50% stake in VBSL, iLabs will also

Raymond Apparel bets big on popular-price category

2007-04-12T01:29:00.001+05:30

KOLKATA: Raymond Apparel (RAL), a 100% subsidiary of the Rs 2,500-crore Raymond, hopes to capture 5-8% of the organised segment of the popular-price category with its newly-launched brand Notting Hill. RAL president Shreyas Joshi said sales from the Notting Hill range were expected to be around Rs 25 crore in the first year. "RAL's presence in the Indian menswear market is in the super premium,

APMC licence for Reliance in West Bengal in a week

2007-04-12T01:28:00.000+05:30

The West Bengal government plans to issue the crucial APMC (Agriculture Produce Marketing Committee) licence to Reliance Industries in a week to facilitate the start of its Rs 2000-crore agri-retail venture. The APMC licence is mandatory for Reliance to be able to buy agriculture products directly from state farmers and market them through its upcoming Reliance Fresh retail chain across West

Arvind Mills to open 100 Megamart stores in India

2007-04-12T01:27:00.000+05:30

With an aim to enhance its focus on tier-II cities, Arvind Mills plans to open nearly 100 Megamart stores in the country in the next five years. Apparel discount chain Megamart, the speciality retail business of Ahmedabad-based Arvind Mills, currently has 54 outlets in 16 cities, with footfalls in excess of 1.5 lakh consumers per month. "In the next five years, we

Cricket league a new innings for Indian sports

2007-04-12T01:25:00.002+05:30

SUBHASH Chandra's Indian Cricket League, scheduled to start playing in September, has the potential to revolutionise the stoic Indian sports industry, if successful. It may spawn more such leagues, freeing players from the fiefdom of Board of Control for Cricket in India (BCCI). Players may be traded – for instance a Sachin representing Birla's Bihar Boys today and Mittal's Mumbai XI tomorrow.

Global media and entertainment to expand to $1.83 trillion by 2010

2007-04-12T01:22:00.000+05:30

Reliance ADAG lines up mega show in home videos

2007-04-12T01:21:00.000+05:30

THE Reliance ADAG-owned Reliance Entertainment is in an overdrive. The group is entering the Rs 300-crore burgeoning, but yet unoragnised, home video market in both the sellthrough and rental format. Reliance ADAG plans to pump in around $100 million over the next couple of years — similar to its investments in the gaming space — for its three-pronged home entertainment venture, which will also

Juice up on colas! Pepsi now readies distribution mocktail

2007-04-12T01:20:00.001+05:30

WITH an increased focus on non-carbonated offerings, PepsiCo India is integrating the distribution for its carbonated soft drinks (CSDs) and non-carbonated offerings like juices, juice drinks and sports drinks. This is aimed at ensuring a wider retail presence for Pepsi brands like Tropicana and Gatorade. When contacted, PepsiCo executive director Abhiram Seth refused to comment on the

Indian Auto brands gaining reputation world wide

2007-04-12T01:14:00.000+05:30

Reliance Reworks Retail Top Deck in India

2007-04-12T01:11:00.000+05:30

From A Vertical Structure,Co Moves Towards A Store-Based Format CALL IT the Wal-Mart effect. Reliance Retail is overhauling its existing management structure and changing operational heads in its first gear shift since the venture was launched last year. From a vertical structure categorised on industry lines, the company has decided to move towards a store format-based structure. This will help

Jet resurrects Sahara buy at $50m discount

2007-04-12T01:06:00.000+05:30

Legal Compulsions Force Jet To Agree On Rs 1,950-Cr Valuation CORNERED by legal compulsions that would have extracted a tough price, Jet Airways, India’s largest airline by market share, has decided to go ahead with the deal to buy out Air Sahara. The rapprochement between the two airlines comes in the middle of acrimonious arbitration proceedings after Jet Airwayswalked out of an agreement

Cricket’s share in biz cracking up

2007-04-10T19:30:00.000+05:30

WHILE sports management agencies and brand marketers cry foul over Board of Control for Cricket in India’s (BCCI) pulling the plug on the Rs 80-crore cricket endorsement market, BCCI’s googly may turn to someone’s advantage after all. Cricketers’ loss will be Bollywood stars (regional actors included) gain, who anyway command around 70% of the Rs 250-crore celebrity endorsement market. And then

Tax sops at new plant help Bajaj cut Platina price

2007-04-10T18:59:00.002+05:30

A FRESH round of price war in the low-end motorcycle segment may well be on the cards. Bajaj Auto (BAL) on Monday lowered the price of its 100-cc Bajaj Platina by Rs 3,000, taking advantage of the tax sops for its new plant at Pantnagar (Uttarakhand). Bajaj Platina will now be available at Rs 33,000 (ex-showroom). Bajaj has already indicated that it would gradually exit from the 100 cc segment

Tatas rope in PE firm Xander for retail expansion

2007-04-10T18:59:00.001+05:30

THE Tata group has tied up with global private equity investor Xander for developing real estate properties for its various retail ventures, indicating that the country’s second largest business house wants to expand its presence in one of the fastest growing business spaces in India. Tata group company Trent said as per the agreement the Xander group will invest in the development of an

Ranbaxy, Jupiter Bioscience to sign 10-year marketing deal

2007-04-10T18:57:00.001+05:30

Jupiter To Get Share Of Profits, More Exposure In International MarketsRANBAXY Laboratories is about to enter into a 10-year co-marketing agreement with Jupiter Bioscience to tap the $6-billion global peptide pharmaceutical market. The specialised organic compounds manufacturer will initially licence out to Ranbaxy Lab five generic peptide drugs in anti-cancer, anti-diuretic, osteoporosis and

Chinese telecom equipment vendor Huawei has emerged the frontline contender to bag a $1-billion mobile equipment contract from Reliance

2007-04-10T18:55:00.000+05:30

Chinese Co May Supply Equipment To Install 30 M Mobile LinesIT’S not official yet. But Chinese telecom equipment vendor Huawei has emerged the frontline contender to bag a $1-billion (Rs 4,300 crore approximately) mobile equipment contract from Anil Ambani-controlled Reliance Communications Limited (RCOM). The $1-billion worth of GSM/CDMA network equipment will be procured by RCOM to install an

Bad light on pitch, brands move to movies for Rs 300-cr market

2007-04-10T18:45:00.000+05:30

ARE cricketers really the Gods of brand endorsements? BCCI thinks not; and as it turns out, neither does a sizeable chunk of corporate India any longer. With the new BCCI endorsement directives and Team India’s poor track record, movie star endorsements, in-script advertisements and in-film brand placements are expected to get a shot in the arm. According to industry experts, the current movie

Biyani to lease out to Reliance,Trent

2007-04-10T18:38:00.000+05:30

KISHORE Biyani’s Future Group, with some 20 million square feet (sq ft) of prime retail space under its fold, close to leasing out its properties to the likes of Reliance Retail, Trent, Lifestyle and Shoppers’ Stop. While it is in talks with these retail majors for plain-vanilla lease agreements, the group may also look at a lucrative ‘revenue sharing model’ in the near future. Going

Health to wellness — a shifting consumer paradigm

2007-04-10T18:34:00.000+05:30

DRIVING to office last month, a colourful advertisement by the roadside caught my attention. “Learn Yoga: The New Age Fitness Mantra”, screamed the hoarding. What intrigued me was not the liberal use of colours or the exquisitely executed asana, but the unlikely juxtaposition - Yoga and New Age! So what’s making a multi-thousand year tradition today’s beat? And it isn’t only Yoga that is on the

‘Specialty retailing is a possibility’ -An Interview

2007-04-10T18:31:00.001+05:30

CREDITED with providing a new dynamism to the LM Thapar Group of companies through drastic decisions, the young Gautam Thapar has come a long way after taking over at BILT, India’s major pulp and paper producer. In an interview with Masood Hussain, Thapar said he has no great mantra other than identify a business, start at a small level, gain experience and scale up. After acquiring a major

Publicis India launches design arm Red Lion

2007-04-10T18:31:00.000+05:30

PUBLICIS India on Monday announced the launch of it design arm Red Lion. Elsie Nanji, ex-vicechairman and chief creative office, Ambience Publicis, will be the managing partner for the venture, aPunit Jagasia, formerly heading Lintas India’s entertainment marketing division Dcell as partner looking after the strategic and administrative part of the business. Ms Nanji is one of India’s most

Rate hikes to keep bean counters wringing

2007-04-10T18:30:00.001+05:30

Rangarajan Alerts India Inc To Factor In Higher Interest Costs In Future PlanningTHE worst isn’t over. It may be wiser for India Inc to prepare for more interest rate hikes in the coming days. The chairman of prime minister’s economic advisory council, C Rangarajan, has warned India Inc of the possibility of further interest rates hike and to factor in higher interest costs in their future

McDonald’s Retail opens restaurant in Himachal Pradesh

2007-04-10T18:30:00.000+05:30

US fast food giant McDonald’s has opened its first restaurant in Himachal Pradesh. Savoy Resorts at the scenic Jabli, 70 km from here, attracts holidaymakers heading from the plains to the popular resort towns of Shimla, Kasauli, Chail and beyond. It is this segment on the busy Kalka-Shimla national highway that the company aims to capture.Courtesy: EconomicTimes

Raymond to nearly triple retail shops by 2010

2007-04-10T18:29:00.001+05:30

Apparel and suit maker Raymond Ltd plans to nearly triple the number of retail stores it has in the country by 2010, it said. Raymond, which makes fabric and apparel, will have 950 stores by 2010 up from 350 now, its chairman said in a statement. "Retail is intrinsic to our business and we continue to push aggressively on this front," Gautam Singhania said. A booming economy and rising incomes