With the help of its wealth managers and in-house research team, Reliance Money, part of the $100 billion Reliance Anil Dhirubhai Ambani Group, will target high net worth individuals and aims to create a wealth management process that extends beyond mere investments. The company already serves the needs of lower income group through mutual funds and insurance products, and the middle income group with portfolio management services for as low as Rs 5 lakh.

Under its wealth management services, Reliance Money also plans to have a separate module to exclusively concentrate and cater to the financial planning needs of senior citizens. The company will launch its wealth management services across India with a focus on retail clients, through its network of over 10,000 plus retail outlets across 5,000 plus towns and cities.

“The wealth management market in India is growing faster. We plan to expand the overall pie by also concentrating on tier II and tier III cities,” added Bandyopadhyay.

The wealth management services of Reliance Money will also be available to the 25 million NRIs and PIOs (person of Indian origins) through its overseas offices in the UAE, Oman and Hong Kong. The company plans to expand its operations in over 15 countries spread across Europe (London), North Africa, the Middle East and South East Asia by 2009.

Industry studies indicate that there will be two million wealthy individuals in India, holding over $510 billion in liquid assets, by 2011.

22. Source: Max New York Life India

10 July, 2008

General: Consumer interest, Social issues; Business: Advertising, PR & marketing, Banking & financial services, Business services, Chemicals, Energy companies, Financial Analyst, Retailers; Healthcare
Max New York Life Insurance Enters into a Tie-up with IndianOil Corporation Through IOC’s Kisan Seva Kendras Significantly more People will now have Access to Some of the Best Insurance products in the Industry

New Delhi, Delhi, India, Thursday, July 10, 2008 -- (Business Wire India)
Max New York Life Insurance Co Ltd, one of India’s foremost private life insurance companies, today announced a tie-up with IndianOil Corporation. With this, IndianOil will make available its around 2,000 Kisan Seva Kendras across the country for the sale of Max New York Life insurance products. This will allow a significantly larger number of people in rural markets to have access to Max New York Life Insurance products.

Announcing the tie-up, Max New York Life Insurance Deputy Managing Director Mr. Rajesh Sud commented: “The tie-up will bring insurance to the masses and help boost financial security.” He further added: “Emerging markets have immense need for financial protection and long-term saving instruments but are currently underserved. To reach such diverse and widely spread population Max New York Life Insurance has adopted a multi-channel strategy and utilizing existing Distribution Networks. This tie up is a step towards furthering our reach in Emerging Markets and serve these markets more efficiently.”

“In line with our commitment of taking the benefit of Life insurance to the last mile, we have put in place a comprehensive strategy for Emerging Markets. We pioneered a unique Hub & Spoke distribution model, which is supported by corporate agency relationships, referral tie-ups with State and District Cooperative Banks and Regional Rural Banks to deepen our penetration in rural and semi urban markets. We offer need and aspiration based products and localized communication for these markets,” said Mr. RP Singh, Executive Vice President & Head – Emerging Markets.

Speaking on the occasion, Indian Oil Corporation’s General Manager, Retail Sales, Mr. K.R. Suresh Kumar said: “Through our Kisan Seva Kendras we have been successfully reaching vital products including petroleum products to rural India. From fuel to lubricants besides insecticides, fertilizers, financial services and FMCG products, our Kisan Seva Kendras have proved to be a lifeline for the millions of rural consumers they serve. In this context, IOCL has entered into various tie ups with leading companies like National Seeds Corporation, Indo Gulf Fertilizer, Bank of Baroda, Oriental Bank, Dena Bank, Dabur etc. to make available their products and services to rural population.”

“Given the reach of IndianOil’s Kisan Seva Kendras into India’s hinterland, Max New York Life will have complete access to the rural markets, for reaching insurance products to them. This tie-up would also enable Kisan Sewa Kendras to move up the value chain by making life insurance available to the rural consumers.”

Max New York Life will start by setting up offices at 100 such IndianOil’s Kisan Seva Kendras across Punjab, Haryana, Gujarat and Western Uttar Pradesh. Eventually, this model will be extended to other Kisan Sewa Kandras also across the country.

Max New York Entrains Rajdhanis For A Brand Chug

9 July, 2008

Ads on trains are catching up. Max New York Life is the latest company to partner Railways to utilise the exterior as well as interior branding opportunities in the Chennai, Bangalore and Trivandrum Rajdhanis.
Under this arrangement, which would initially be valid for six months, the entire train would be vinyl wrapped in Max New York Life brand colours on the outside and brand signage would be on display inside the train as well. The first such train, Bangalore Rajdhani, was flagged off today from Delhi by Mr Rajesh Sud, Deputy Managing Director, Max New York Life Insurance.
The branding exercise as well as provision of better amenity services are being done under a public private partnership initiative of Railways, which had roped in CTS Management (for facilities management) and Peacock Media (advertising rights).
The aim of the PPP is to increase customer service standards for passengers using these Rajdhanis.
Speaking on the occasion, the Division Regional Manager, Northern Railways, Mr. Rakesh Saksena, said, “Max New York Life would provide passengers on three routes of the premier Rajdhani Express trains viz., Delhi – Bangalore, Delhi – Chennai & Delhi – Trivandrum with upgraded services like high quality flooring, clean toilets, soap dispensers, tissue paper dispensers, deodorant based toilet flushing system in toilets, automated fragrance dispensers in the compartments and trained housekeeping staff on-board to maintain these services throughout the journey.”
Flagging off the train, Mr Sud said train advertising of this kind was a great platform for brand visibility and interaction with potential customers.

23. SBI-India Post Tie-up To Provide Banking Facilities In Rural Punjab

15 July, 2008

State Bank of India has entered into an alliance with India Post to provide banking facilities to the people in rural areas of Punjab.

‘SBI—India Post Alliance’ was launched on Monday by Ajay Swaroop, chief general manager, State Bank of India Chandigarh Circle and PR Kumar, chief post master general, Chandigarh at Roopnagar.

Through this alliance the bank aims to reach out to the population in the unbanked areas. Under this collaboration, India Post will act as a business correspondent of State Bank of India. To start with, India Post will only act as a business facilitator for the bank and post offices will mobilise assets and liabilities business for the Bank. Subsequently, the post offices of India Post will act as business correspondent for SBI & transactions in the accounts of bank customers opened by Post offices will be carried out through Point of Sales (POS) machines installed at the link post offices.

For all these services, India Post will be given commission by SBI at mutually agreed rates.Initially the SBI–India Post alliance will be operational at four Post Offices viz. Kharar, Takhat Garh, Nurpur Bedi and FP Nangal as a pilot for the State of Punjab.In the coming weeks this alliance will be extended to other Post Offices throughout the State.

The national alliance has already been working successfully at Nagpur, Jaipur, Tirupati, Hubli, Bangalore, Ranchi, Madurai and Tiruchirapally. through pilots in 6 States.

24. Fidelity Launches Online Platform

1 July, 2008

Mumbai, June 30 Fidelity International has launched FundsNetwork, an online fund platform in the country.

FundsNetwork is a technology powered solution which will provide mutual fund advisors with business tools that will support transactional and reporting requirements as well as planning and guidance needs.

This platform will offer online a range of funds from a number of fund houses.

“Market development and penetration of mutual funds have been severely limited by the smaller number of agents selling funds especially when compared with the insurance industry’s strength in number of agents. The challenge has been further aggravated by poor acceptance of mutual funds among insurance agents,” said Ms Ashu Suyash, Managing Director and Country Head- India, Fidelity Advisers International.

The facility is aimed to help intermediaries to grow their business by allowing them to focus on customer acquisition, advice and relationship management without being concerned about back office and administration issues, she added.

Business coaching
Under the first phase of this initiative, Fidelity Advisers Institute has been launched, which will focus on business coaching for mutual fund advisers and will offer comprehensive training and development programmes for advisers free of charge.

The new facility will specifically also focus on the AMFI certification module, which will help candidates pass the AMFI exam. The training will include both e-learning and face-to face method.

At the same time, mutual fund advisors who are currently selling mutual funds can also avail themselves of other training modules.

“Backed by our experience in international markets, FundsNetwork will be a business partner for mutual fund agents by providing them business coaching to help them grow their business aided by modern practice management tools,” said Mr Robert Higginbotham, President, Fidelity International.

The platform can also be used by individual investors to invest directly or through intermediaries in various mutual fund schemes.

FundsNetwork has a presence in the US, the UK, Germany and Taiwan.

Fidelity Mutual Fund has assets under management of Rs 8,879.73 crore at the end of May 2008.

25. Religare Plans Banking Foray

18 June, 2008

Ranbaxy promoter group’s financial services company Religare Enterprises is looking at foraying into banking sector. The company is exploring both organic and inorganic route, when the sector opens up, for the venture. Incidentally, the company acquired a 4.2% stake in Karnataka Bank in the last quarter of 2006 and this is the only bank where Religare has invested so far.

At the end of the quarter ended March 31, 2008, there were 14 institutional shareholders holding a total of 41% stake in the bank. US-based Oppenheimer Funds Inc is the highest shareholder with 4.94% stake. The shareholding of this bank is widely disbursed, and it does not have a promoter.

Religare is keeping its option open of increasing its stake in the bank if it gets the regulatory nod. Says Religare Enterprises CEO and MD Sunil Godhwani: “Karnataka Bank was the first bank in which we invested. The company has advisory and other financial services relationship with Karnataka Bank among other banks. But, Karnataka Bank is the only bank in which we have picked up stake.”

“We are offering all banking-related services except issuing cheques and taking deposits. The group has been looking at foraying in banking segment as it will complete our financial services. However, the venture should be feasible and add value to the shareholders, bottomline and the company’s overall business. We are looking for the market to open up,” he added.

Under the existing regulations, a corporate entity cannot buy more than 10% in a bank. Banking licences are hard to get in India and Religare has also not applied for a banking license.

Mr Godhwani said the company has recieved investment options in several banks but has not yet zeroed it down to any particular bank. According to industry sources, Religare may invest a significant amount of Rs 10,000 crore which the promoter family will get for selling its 35% stake to Japanese company Daiichi Sankyo in its banking foray.

Market watchers say that Religare has been looking at acquiring a significant stake in a bank as the company needs one to expand its financial services business.

26. ICICI Prudential AMC Launches New Equity Fund

9 July, 2008

Asset management company ICICI Prudential AMC today launched an equity fund that is aimed at maximising long-term capital appreciation while investing in banking and financial services firm.

ICICI Prudential Banking and Financial Services Fund is an open-ended equity scheme, a release from the fund house said here.

It aims to maximise long-term capital appreciation by investing 70-100 per cent in equity and equity-related securities of companies engaged in banking and financial services and 0-30 per cent in debt instruments.

The new fund offer (NFO) opens today and close on August 7, the release said.

"We believe in providing investors with financial solutions through introducing products that will help add value to their investment portfolio," ICICI Prudential AMC Managing Director Nimesh Shah said.

ICICI Prudential AMC has an average assets under management of around Rs 59,505.14 crore as on June 30.

It manages a comprehensive range of schemes to meet the varying investment needs of its investors spread over 245 cities in the country.

27. Kotak Securities Launches AutoInvest Nationwide - 1st Product To Allow Investors To Invest Via SIP In Gold ETFs Along With Equity & Mutual Funds

15 July, 2008

Kotak Securities today announced the launch of AutoInvest and its gold profile AutoInvest – Gold where you can invest in Gold ETF too, the product is a first that allows investors to invest via SIP (Systematic investment Planning) in Gold ETFs along with the equity and mutual funds all in one portfolio. Gold has always been close to Indians as it plays a significant role in religious and human sentiment. The glittering yellow metal is also considered as a safe investment that is protected from currency fluctuations and the downswings in the financial markets.

Commenting on the AutoInvest benefits, Mr. Prasanth Prabhakaran Senior VP, Kotak Securities said, “Through continuous research, we found that there was a category of investors who wanted to invest in the stock market for long term but are unable to do so, either due to the lack of time or a lack of knowledge in stock picking. We therefore decided to launch AutoInvest to address this gap. Further taking AutoInvest to the next level, we have also launched AutoInvest Gold which allows investors to build their investments in a combination of Gold ETF, Equity stocks and Mutual Funds. It is our constant endeavour to involving investors in every step of their wealth creation to both motivate them as well as educate them on the best choices available. We aim to cater to investors who believe in a systematic long-term wealth creation. The investor should however be aware that investments in equities are subject to market risks and a SIP product does not necessarily assure returns.”

AutoInvest – Gold, is a systematic investment solution that enables an investor to invest in gold ETFs, stocks and mutual funds on a regular basis, making it a well diversified investment. With AutoInvest - Gold, on sale of Gold ETFs through Kotak Securities, the client will be given a 2 per cent discount coupon which client can redeem at any Kotak Mahindra Bank branch if he wishes to purchase gold within the validity period of the said discount. For availing the discount coupon on sale of Gold ETF through Kotak Securities the client needs to be a Kotak Mahindra Bank account holder.

Under AutoInvest - Gold the investor can invest in 3-4 stocks, mutual funds and gold ETF every month, which is/are recommended by a dedicated research team at Kotak Securities.

28. ‘Loan Factory’ To Be Launched Tomorrow

8 July, 2008

Chairman and managing director of Bank of Baroda M.D. Mallya will inaugurate the bank’s ‘Composite loan factory’ here on Wednesday.

The chief manager (Retail Loan Factory), Bank of Baroda, Bangalore, Subash G. Rathi, making a presentation of the bank’s SME products at Kanara Chamber of Commerce and Industry (KCCI) here on Monday said that the loan factory, first of its kind in the country, would cater to the needs of Dakshina Kannada and Udupi districts.

Purpose
He said the loan factory was a facility to provide all types loan facility under one roof. Such units aimed at expediting the process of loan appraisals and disbursement in respect of retail, and small and medium enterprise loans. The composite loan factory would be located at the first floor of Milagres Centre at Hampankatta here and would cover five branches of the district in the two districts, he said.

Salient feature On the salient feature of the loan factory, he said the scheme would entail the bank official visiting the borrower instead of the borrower visiting the bank. The bank official would brief the prospective borrower about the loan products and collect essential documents to process the loan applications. Dedicated teams would process the documents to facilitate quick disposal of the applications, he said. The new loan factory would cover composite loans, SME short term loans, SME medium term loans, housing loans, traders’ loans. to name a few, he said.

29. Citibank Launches Citigold Global Banking Brings The World Closer For Global Entrepreneurs, Travelers, Investors, Students And Expatriates

16 June, 2008

Citibank today announced the launch of Citigold Global Banking, a premium Banking and wealth management service exclusive to Citigold clients. The new Citigold Global Banking program takes financial mobility to a whole new level by enhancing the banking experience for Citigold clients not just in India but also around the world. This initiative leverages on Citi's strong worldwide presence to offer cross-border banking products and services to internationally mobile Citigold clients. India is among a select group of countries in the Asia Pacific region where this service has been launched today.

Citigold is Citibank’s wealth management business for its mass affluent client segment that provides a holistic suite of both retail banking and wealth management products and solutions that include investments, insurance, mortgage, business banking, retirement planning, succession planning and wealth transfer. Today, Citibank serves over 400,000 Citigold clients in Asia Pacific (ex Japan), underscoring the global financial institution’s leadership in the wealth management space.

As the economy and business environment in India continues to grow, professionals, entrepreneurs and investors in the region have more financial interests today that span multiple countries and currencies. The trend of Indian talent taking on additional job responsibilities that result in expatriate or overseas assignments also continues to rise. Often, simple and routine transactions such as opening a bank account, remitting money, buying a house, taking a loan in case of emergencies become complicated in foreign lands. Citi has estimated that, on average, the mass affluent segment in Asia Pacific is growing at about 15% on an annual basis.

“Today we live in a global village. As the world gets smaller, the needs of affluent clients get bigger. When people travel from country to country, a big area of concern is the loss of their ‘home’ banking relationship, their credit history, and easy access to their accounts from anywhere in the world. Citi understands that situation, which is why we developed a global ‘passport” through Citigold Global Banking to address our clients’ needs anytime, anywhere,” said Mr. T. R. Ramachandran, Head, Retail Banking, Citibank N.A., India.

Citigold Global Banking provides an easy transition for clients, enabling them to open bank accounts, get credit cards, enjoy Citigold status worldwide, transfer funds conveniently and gain access to a powerful global network of branches and ATMs with emergency cash withdrawal facilities. This service is further facilitated through Global Support Centers and a Global Banking Website that allows a snapshot view of all accounts and relationships that the client has with Citi around the world.

Mr. Sameer Kaul, Head, Branch Banking, Citibank N. A., India added, “Our Citigold clients lead busy lives and they expect transactions, particularly cross-border financial transactions, to be faster, safer and more convenient than ever before. Citigold Global Banking is able to deliver on all these areas. Our clients’ local banking will now seamlessly merge with their global banking requirements. These are the advantages of Citi’s global reach, scale, and expertise.” Citigold Global Banking Benefits

-- Pre-Arrival Account Opening – Before the Citigold client reaches a foreign country, Citi will be able to start the account opening process and in most cases even have the accounts opened before the client reaches the foreign shores, depending on the regulatory norms in the foreign country. Using a client’s credit history, Citigold relationship managers can also help them open a credit card account for immediate access to credit upon arrival.

-- Global Support - Citigold clients have access to logistical and emergency support through an unparalleled network of more than 4,000 Citibank branches in 43 countries. Citi has also established four Global Support Centers in Europe, Asia, North and South America with teams of specially-trained staff members able to offer personalized cross-border account opening assistance to Citigold customers through the entire application process.

-- Global Recognition - Citigold clients can transfer their Citigold status from country to country, whether relocating or traveling, to enjoy the privileges, recognition and status they are accustomed to.

-- Citigold Center Access – Access will be provided at over 550 Citigold Centers in 36 countries, including lounges and meeting rooms, as well as free use of telephone, fax and the Internet services.

-- Emergency Cash Withdrawal – In the event of emergencies, and subject to proper verification, Indian Citigold customers can obtain the equivalent of up to US$2,000 from their accounts, at the designated Citi branches overseas.

-- Toll-free Global Hotline (800-CITI-CODE) – Indian Citigold customers traveling abroad can contact their home Citigold Customer Service hotline via a single toll-free, global number to request assistance with their accounts.

30. Reliance MF Launches SIP Scheme With Insurance Cover

29 July, 2008

Chennai, June 28 Reliance Mutual Fund (RMF) on Friday launched Reliance SIP Insure, an investment option with free life insurance cover. The Deputy Chief Executive officer of Reliance Capital Asset Management Ltd (RCAML), Mr Sundeep Sikka, said the facility was provided in 10 select equity schemes of RMF and will help support investors to accomplish their goals even in the event of their unfortunate demise.
In the event of death of an investor, the balance unpaid SIP instalments would be made good from insurance cover offered by Reliance General Insurance. The nominee would be able to continue in the scheme without having to make further contribution to the scheme, which is subject to a maximum of Rs 10 lakh, he said.
Minimum investment
The minimum investment per instalment is Rs 2,000 a month and there is no upper limit. The minimum period of contribution is three years and thereafter, in multiple of one year, he said.

31. Sahara Life Insurance New National Campaign Of A Common Man With Uncommon Self-Confidence

3 July, 2008

As Sahara Life Insurance expands at the pan-India level, the new national campaign was rolled out which speaks of the self-confidence, fearlessness and empowerment people gain once insured.

The TV commercial shows a government office where the protagonist, a regular working man, is signing the insurance papers with a smile on his face. As he gets ready to go home, he takes his lunch box and a quintessential briefcase and exits the office.

He drives towards his house on his Priya scooter, picking up some peanuts on his way. While he is driving, he takes a detour.

He reaches an unknown place (an isolated, mountainous spot), which resembles the den of a dacoit. Sitting casually atop his scooter, he munches on his peanuts and bravely calls out for Gabbar Singh, challenging him to a brawl.

The voiceover explains, “Atmavishwas Ki Nayi Taaqat”, with the logo shot.

Sahara Life Insurance hopes to address the common man in its communication and the confidence and fearlessness that insurance brings with it.

32. Nestle’s New Enriched Milk

4 July, 2008

Nestle has introduced a new Omega 3 enriched milk product that will help manage cholesterol. Nesvita Pro-Heart milk, with the fatty acid Omega 3, was launched by actress Karishma Kapoor in the Capital on Thursday. The milk, claims Nestle, is also 98 per cent fat-free. Omega 3, which is derived from rapeseed oil and corn oil, is a type of fatty acid that is required for normal growth, development and reduces the incidence and gravity of cardio-vascular diseases and is thus beneficial to the heart, said Nestle. The acid is not produced by the body but normally assimilated through the diet. “Our research revealed that as consumers become more health conscious they look for healthier foods to help manage cholesterol in their everyday diets. Based on this insight, Nestle India used its knowledge of scientific nutrition to develop milk with Omega 3,” said Mr Mayank Trivedi, GM (Dairy), in a statement.

33. Wipro Launches Sugar Substitute

18 July, 2008

Wipro Sweet `n' Healthy, a low-calorie sugar substitute, has been introduced in the Kerala market by Wipro Consume Care and Lighting (WCCLG). The product promises to deliver the taste of sugar without the extra calories. The other brands in the WCCLG wellness portfolio include Glucovita glucose powder, Wipro Sanjeevani Sat Isabgol and Wipro Sanjeevani Honey. Wipro Sweet `n' Healthy was first launched in AP and after the success in the test market, the product is now being launched in Kerala. Wipro Sweet `n' Healthy is currently available in two variants aspatrame and Sucralose, both molecules are approved by USFDA, WHO and other health organisations across the world.

34. Polo Xtra Strong Launched

17 June, 2008

Nestle India has launched Polo Xtra Strong, an innovation on its existing brand, Polo. According to a company statement, Polo had built strong brand equity with its consumers through its unique proposition - "The mint with the hole". India is now amongst the top markets for Polo worldwide. The launch of Polo Xtra Strong would further strengthen this core brand. According to the statement, consumer insights had shown that as the mints market continues to grow, many new consumers were looking for longer lasting freshness. Polo Xtra Strong, with added menthol crystals, would provide consumers with longer lasting freshness that they seek. The launch will be supported by the new TV commercial for Polo Xtra Strong which breaks from third week of June.

35. Center Fresh Presents A Chewy Solution To A Sticky Situation

23 June, 2008

After providing a solution to the ‘foot-in-mouth’ syndrome, Centre Fresh brand from the Perfetti Van Melle India’s stable has come up with a new TVC that shows how it could ‘zubaan pe rakhe lagaam’. The TVC has been conceptualised by O&M and is the brainchild of Abhijit Avasthi, Creative Director, O&M Mumbai. The film has been produced and directed by ad filmmaker Prasoon Pandey of Corcoise Films.

The TVC retains the playfulness and tongue-in-cheek tone without compromising on the integral brand message. Center fresh was associated with something that ‘shuts up mouths’. The earlier film had shown the product as a preventive mechanism to counter somebody’s ‘foot-in-mouth’ tendencies.

Rohit Kapoor, Group Product Manager, Perfetti Van Melle India, said, “The basic message is the tagline – ‘Zubaan Pe Rakhe Lagaam’ – which exhibits that by chewing Center Fresh one is so engrossed in the taste that chewing it shuts the mouth.”

He further said, “Apart from the 360-degree initiative that we are taking, we will also be doing an Internet viral campaign. A first time ever with an in-built game along with the viral and radios spots are also planned. There will also be a special innovation on MTV to further build on the tagline.”

The TVC opens on a young boy visiting his father in a factory. He gives his father a Centre Fresh gum, who readily starts chewing it, with voice over in the background saying, “Yeh hai Center Fresh chewing gum, iske chabaane se zubaan par lagaam lag jaati hai, to aapne iska fayeda uthaya”. The son then presents his report card to his father and happily proclaims that he has failed again. The father quietly and smilingly goes through the report card continuing his chewing. Suddenly he slaps his son. The TVC ends with the VO saying: ‘Centre Fresh sirf zubaan par lagaam lagati hai, haath pe nahi’.

Abhijit Avasthi explained, “The film builds on the proposition of ‘Zubaan pe rakhe lagaam’, which has proved to be immensely popular and successful for us. The story is as quirky has most Perfetti ads are. It seems fairly straightforward in its narration, but has a dramatic twist in the end.”

The age group that Centre Fresh is targeting is quite wide, from 8 years to 24 years in SEC ABC. The TVC broke on June 20 in all entertainment and news channels.

36. Inflation Plays Spoilsport: Hotels' Occupancy To Dip

4 July, 2008

These are tough times for travel and hospitality industry. First it was fuel price hike and slowdown that impacted business, and now it's inflation that's playing a spoilsport. Hotels are expecting a 8-10 % dip in the projected occupancies for the quarter July-September , which is also the lean period for hospitality industry. Though the people are still travelling, tour operators say that they are opting for a lower category of accommodation and cheaper transport.

Hotels’ ancillary sources of revenue, especially food & beverage and spas, might also clock lower returns as consumers cut expenses on frills.

As Indian travellers are value-conscious , inflation will alter the habits, though people might not exactly cut down on their weekend trips and holidays. “People staying at five-star hotels will opt for a four-star or mid-segment hotels.

At the same time, with rising airfares, people are opting for trains,” says Arjun Sharma , managing director, Le Passage to India. This means squeezing margins for tour operators as lower category products and services do not have very high margins. “As a travel operator, we have to create models to de-risk inflationary pressures,” adds Mr Sharma.

Hotels, which are already grappling with the lean season, are seeing a lower demand owing to inflation. “It’s early days but residential business will be affected,” says Gautam Anand, V-P , operations, ITC Welcomgroup . “From now onwards there will be a correction in room rates,” says Sarovar Hotels executive director Ajay Bakaya.

And it’s not only dip in occupancies that hotels are worried about. “Inflation will have an impact on debt, borrowings and procurement (as food prices have gone up) for hotels ,” says a source at Taj Group of Hotels. Adds V-P , sales and marketing, Leela Hotels, Sanjoy Pasricha, “Inflation will impact bottom line by 1-2 %. Come September, we will increase our room rates by 9-12% to offset the inflationary impact.” Secondary sources of revenue such as retail, spas and F&B will be impacted too as disposable income decreases.

“Eating out at hotels might not get impacted but drinking out will. As prices rise, people prefer drinking at home,” points out Anand. Tour operators believe that outbound leisure tourism will be hit the most. “The affordable short-haul trips to Thailand and Malaysia that middle-class has been opting for, will reduce as airfares are soaring and spending power has been hit,” says a tour operator.

37. Ansal API Launches Hi-tech City Project

14 July, 2008

Real estate company Ansal Properties and Infrastructure Ltd (Ansal API) on Saturday announced the launch of its hi-tech city project ‘The Megapolis’. The UP Government – approved township adjoining Greater Noida would be spread over 2,500 acres and is extendable to about 9,000 acres.

“The investment in the project will be close to Rs 13,600 crore whereas the project turnover is about Rs 26,900 crore. The project will come up in phases, and the overall completion would happen by 2013,” Mr P.N. Misra, Executive Director - Business Development, Ansal API said.

“HDFC Group has decided to pick up eight per cent stake in the project,” Mr Misra pointed out.

He said the company had already procured over 300 acres of land.

38. Traders Opt For Modernising Retail Business Format

13 July, 2008

Traditional small shopkeers in the country were in favour of converting the traditional retail into a modern format and expected the government to pave the way for modernisation by providing financial assistance and rationalising tax structure, according to a recent survey.

The internal survey comissioned by the Confederation of All India Traders (CAIT) in 18 cities, revealed that 82 per cent of the traders were inclined to transform their traditional business format by upgrading their existing business structure.

Ninety four per cent opined that government should initiate steps to form a national trade policy for small retailers and bring reforms in the taxation structure and other law governing trade, a release quoting the study said.

Nearly 87 per cent of the traders viewed that retail trade should be placed for priority sector advances under the present banking system to make it feasible for the banks to facilitate financial assistance to traders without much paper work. About 80 per cent wanted primary focus of government for providing infrastructural faclities in commercial markets.

India has the highest density of retail outlets in the world, for every 1000 persons there are 15 retail outlets in India. The overall retail market size in India is estimated to be Rs 15 lakh crore. About three per cent of the retail trade is the organised sector and the balance 97 per cent is unorganised. The size of the market is expected to exceed Rs 20 lakh crore by 2010, it said.

The survey was conducted by the CAIT Research Trade Development Board, (CRTB) betwen April to June 2008 with a sample size of 7643.

39. Inflation Times: Shoppers Flock To Big Retail For Food Bargains

1 July, 2008

Large modern Indian retailers, hobbled by strict foreign investment caps, political concerns and protests from small traders, are finding support from an unusual quarter: spiralling food prices.

With India's annual inflation rate at its highest in more than 13 years, more shoppers are switching to big food and grocery retailers, which have the muscle and the scale to keep prices lower, from small traders and vendors.

Only about 4 percent of the country's retail industry is controlled by large retailers, compared with more than half in Malaysia, and the lion's share of food and grocery is with small shops and vendors.

Faced with higher prices of vegetables, rice, cooking oil and other items, more consumers in India are opting for the relatively stable prices at modern stores, which are squeezing razor-thin margins on food to ring up more sales.

Pantaloon Retail India Ltd, the top listed retailer, recently offered a 20 percent discount on all food and grocery items at its Big Bazaar hypermarkets, and drew more shoppers to its 89 stores, Chief Executive Rajan Malhotra said.

In stores, Pantaloon pushed its higher-margin store labels covering a range of products from butter to lentils, and was able to offset the discount with larger volumes of sales as well as stronger margins from non-food items, he said. "Sales of our store labels have been very buoyant."

India's fragmented retail industry is estimated to be worth about $350 billion and is widely forecast to nearly double in size by 2015, with modern retail making up a fifth of sales.

Small traders and shops currently make up the bulk of India's more than 15 million retail outlets. Indian legislation bans foreign multibrand retailers from entering its market. Rice, flour, fruits and vegetables are 20-30 percent cheaper on average in larger retail stores, according to a recent study by the Indian Council for Research on International Economic Relations.

At Reliance Retail, a variety of promotions has helped draw more shoppers and higher spends, with store labels of staples and items such as instant noodles yielding higher margins.

"When inflation is high, promotions are particularly relevant, as the average household is looking to stretch their budgets," said Jai Bendre, an executive vice president, at Reliance Retail.
"Because of our size we have amazing negotiating power with vendors, and on our own labels we are able to save on advertising and promotion expenses," she said.

Reliance Retail, a unit of Reliance Industries Ltd, operates convenience stores, supermarkets and hypermarkets.

MODERN SHOPPING

India's annual inflation rate, measured by the wholesale price index, jumped to 11.42 percent in mid-June, and analysts expect it will remain in double digits until the end of the year.

With food prices on the boil, urban and rural Indian homes, that already spend an estimated 45-55 percent of their income on food, are looking for ways to trim their shopping bills.

This includes surrendering the convenience of home deliveries from small neighbourhood stores for discounted items and specific promotions at large stores that may be some distance away.

"Clearly, consumers in emerging markets are already moving to modern shopping experiences for the hygiene and price factors," said Lawrence Hutter, a senior analyst at consultancy Deloitte.

"In this environment, in particular, larger retailers have an edge as they have greater financial strength and negotiating power with suppliers, and they can absorb some of the impact of the price rise because they are more diversified," he said.

While no retailer has the critical mass for large economies of scale, several are already reaping the benefits of size.

These include Pantaloon, discounter Subhiksha, Reliance Retail's 600-plus Fresh stores, Aditya Birla Group's 500-odd More stores, RPG Group's 400 Spencer's stores, and discounter Vishal Retail's 100 stores.

Bharti Enterprises has just started rolling out its convenience stores ahead of the launch of wholesale centres at end-2008 in a joint venture with Wal-Mart Stores Inc.

"Some shoppers may be cherry-picking, going to modern stores for specific offers," said Pankaj Gupta at consultancy Tata Strategic Management Group. "A good cross-section will stick with the modern format."

40. Pepsi's Time Out To Retail Soft Drinks And Snacks

5 July, 2008

PepsiCo is in the process of rolling out a new countrywide retail sales channel by the name of Time Out. The Time Out format is in the form of kiosks. These kiosks are being set up in select malls and offices across the country. The company had begun experimenting with the Time Out format in offices in the IT/ITeS sector on a small scale initially. PepsiCo executive director, sales, Tanmay Vats said: "We began the concept on a small scale in a rapidly growing channel - offices. The kiosk format is flexible and can be customised to the space needs of specific areas."

41. Subhiksha Buys Listed NBFC

29 June, 2008

Chennai, June 28 Subhiksha Trading Services Ltd, the closely held company that runs the country’s largest food and grocery discount retail chain branded Subhiksha, has acquired a majority stake in a Chennai-based listed entity, Blue Green Constructions and Investments Ltd.

The boards of the companies are to meet on Monday to consider a merger and share swap ratio. According to Mr R. Subramanian, promoter of Subhiksha, the combined entity will be called Subhiksha Ltd and is expected to be listed on the National Stock Exchange and Bombay Stock Exchange.

According to sources, Subhiksha will be merged into Blue Green, which is a reverse merger, and this will essentially help unlisted Subhiksha get listed, bypassing the normal process. Subhiksha had earlier announced plans for an initial public offering, though it had not indicated a date for it.

Blue Green Constructions, an NBFC (non-banking finance company), is listed on the Madras Stock Exchange. On why Subhiksha acquired an NBFC, Mr Subramanian said Blue Green also had plans to get into the retail business and also identified some retail space for the purpose. “This will give us easy access to additional capital, enabling us to hasten our expansion process,” he said.

Subhiksha has acquired 40 per cent stake of the Rs 5-crore paid-up capital of Blue Green from its promoters at par. This will also trigger an open offer. Post-acquisition, the promoters of Blue Green will continue to hold 27 per cent stake.

42. Spencer’s Retail Ties up With U.S. Bakery Chain

16 June, 2008

RPG enterpise Spencer’s Retail has tied up with Au Bon Pain, a U.S.-based fast dining and bakery café chain to launch outlets across India beginning with a flagship store in Bangalore by December this year. Au Bon Pain means ‘the place of good bread’ in French.

Sanjiv Goenka, Vice-Chairman of RPG Enterprises, said that an agreement had been signed for a master franchisee which would be owned by a joint venture of Spencer’s and Varin Narula, director and promoter of Au Bon Pain, Thailand, the brand’s first outlet outside the U.S.

A joint venture, called Novel Confectioners Ltd, has been formed in which Mr. Varin will have a small equity.

To invest Rs. 50 crore
Addressing a press conference here on Tuesday, Mr. Goenka said Rs. 50 crore would be invested to set up a back-end factory in Bangalore and 100 standalone stores, mostly in the south.  

“While we felt that Bangalore, with its international population, was a great place to launch a brand like this, the other stores would be in Hyderabad and Chennai and Tier-1 and Tier-2 cities in the next 18 months. The menu would include soups, sandwiches, salads, stews and bakery items.”

Shop-in-stores
Later, shop-in-shop stores would also be launched with a pan-India roll-out covering the north and the east.

Bernard Platt, Senior Vice President, Franchising, said the Boston-based brand operates in over 200 locations in the U.S. and other countries. Mr. Narula, who has been associated with the brand’s first foray outside the U.S., said that based on the success in Thailand over the last 11 years, he was confident that Au Bon Pain would soon become “India’s finest bakery café”.

To queries as to whether the delay in the Kolkata launch of the U.S. brand was linked with the problems encountered recently over a Spencer’s hyper store in Gariahat here, Mr. Goenka said although sales had been affected but they were picking up and “now the issue is behind us”. He declined to elaborate further on this.

Spencer’s, which opened its first store in Chennai in 1863, sustained its operations to emerge as India’s first modern retail format store when it launched its first hypermarket in Hyderabad in 2000. It now has 400 stores and is planning to open 200 more this year, targeting a Rs. 2,000 crore turnover.

This is Spencer’s second international tie-up this year, the first being one for kids’ toys with Woolworths of the U.K.

Spencer’s Retail To Enter Bakery Café Segment

1 July, 2008

Mumbai, June 30 The RPG Group-promoted Spencer’s Retail would be entering into a joint venture with a US-based bakery café chain and setting up stand alone stores under its brand name. “We are going to form a joint venture with a US-based café chain, one of the biggest in the world, and set up standalone stores. The announcement would be made within the next 10 days,” Mr Sanjiv Goenka, Vice-Chairman, RPG Enterprises, said.

Currently, in the US market, there are companies such as Panera, Atlanta Bread Co and Au Bon Pain, which are the largest in the bakery cafe segment. Besides, there are other chains such as House of Bread, Cheese Cake Factory and Frullati Cafe & Bakery which also have a significant presence.

Going forward, Spencer’s Retail is expecting its future ventures to contribute between 15-20 per cent of its total turnover. In the recent past, it had formed a distribution arrangement with the UK-based chain Woolworths.

“In the next 18 months we expect our joint ventures and distribution arrangements to contribute between 15-20 per cent of the turnover,” says Mr Samar Singh Sheikhawat, Vice-President Marketing, Spencer’s Retail. Currently Spencer’s Retail, under its two formats, generates a turnover of Rs 800 crore.  

Poised to enter new ventures with international companies, launching a new brand in the bakery café segment is now imminent. Without disclosing the name of its proposed venture partner, Mr Sheikhawat added, “As part of the joint venture formed would be shop-in-shop cafes within our large format stores before being set up as independent cafes.”

Ramping up portfolio

Other joint ventures planned are in the area of fashion wear for children and men. Being more of a food intensive retailer, Spencer’s Retail is now ramping up its apparel portfolio with future plans of spinning off independent fashion stores as part of specialty retailing initiatives. Having launched independent electronics outlets (which are currently at an incubation stage), there is a possibility of having a fashion format in the future. According to Mr Sheikhawat, “In future there could be independent fashion stores and at the moment we are focusing on the fashion portfolio at our stores.”

With intentions of becoming a serious player in the fashion business, Spencer’s is also looking at enhancing its private labels under brands such as Mark Nicolas and Island Monks, apart from its existing fashion portfolio. “Currently, fashion as a category contributes 10 per cent of the turnover. We plan to take it up to 25 per cent in the next 18 months,” says Mr Sheikhawat.

In spite of steep real estate costs there are no plans to explore the franchise route as the retailer expands its number of stores and formats across the country. “The franchise route would not be explored and all our stores would continue to be owned by the company and we intend breaking even in our operations by 2010,” says Mr Sheikhawat.

43. Reliance Plans Specialty Stores For Cellphones

30 June, 2008

Reliance Retail is planning to open a chain of specialty stores to retail mobile phone handsets across the country.

The mobile handset retail initiative will be spearheaded by Navneet Saluja, who was earlier heading Reliance Retail’s operations in Delhi-NCR. Reliance Retail stores will compete with similar stores of other major retailers, including Subhiksha, RPG and Essar-Virgin’s The MobileStore.

When contacted, a Reliance Retail spokesman said, “Our initiatives are a full spectrum design across various defined formats and categories within Reliance Retail. As regards separate mobile telephone format, we will make announcement at an appropriate time.”

Reliance Retail’s strategy has been to have a large presence across all categories and formats and the company’s foray into mobile phones is an extension of that strategy. The roll-out of food & grocery stores, Reliance Fresh, the company’s best known format, has been quick although with its own share of controversies.
But other specialty formats, which started slow, are now picking up. For a faster roll-out and in order to overcome challenges related to acquiring retail space, the company has chosen to take the franchisee route.  

Reliance Retail is also entering into alliances with foreign players for some of its specialty formats, where it thinks the foreign partners’ experience could come in handy. Reliance Retail operates stores in various categories, including food & grocery, consumer durables and IT, apparel, wellness products, footwear, books & music, and jewellery.

44. Retail Blueprint: Parsvnath To Open 5-10 Stores In 2008-09

21 June, 2008

New Delhi, June 20 Real estate company Parsvnath on Friday outlined plans for an aggressive retail foray and said it would open five-ten stores — in a mix of formats including hypermarket, convenience stores, food joints and very large stores — during the current fiscal.

The company said it is in talks with major retail chains to explore the possibilities of a foreign or a domestic collaboration for setting up these retail formats, but did not divulge the names (of potential partners) or the investment estimates for the proposed retail foray.

“We will do the front-end but we will not do cash and carry. We are in talks with various players for different formats. The retail business is growing phenomenally and this is likely to continue,” Mr Pradeep Jain, Chairman of Parsvnath Developers Ltd, said on the sidelines of a conference here to announce the company’s fourth quarter and fiscal 2008 results.

He said that the company was looking at the hypermarket concept, as also small formats such as convenience stores. “In addition, we will be going for food joints (coffee and eateries), and very large formats stores,” he added.

Mr Jain said that the company would set up these stores in Delhi and Mumbai but did not divulge the other locations being considered. Parsvnath had announced its foray into retail sector in November 2007 and has already incorporated a subsidiary Parsvnath Retail Ltd.

The French connection

Over the last few months the market has been rife with speculations that French retail giant Carrefour has initiated discussions with realty players including DLF, Parsvnath and MGF for a prospective partnership.
 

Under current guidelines, foreign direct investment up to 100 per cent is allowed in the wholesale cash-and-carry, but it is not allowed in the multi-brand retail.

In single brand product retailing, it is limited up to 51 per cent.

45. ISKCON Enters Food Retailing

5 July, 2008

In a bid to promote vegetarian food culture in the country, the International Society for Krishna Consciousness (ISKCON) has now entered the confectionery space. It opened its maiden outlet known as 'Higher Taste' to offer Krishna Prasadam at Bangalore. There are over 170 products on sale including designer pastries and a wide range of confectioneries.

According to Chitranga Chaitanya Das, Head, ISKCON Food Lab, vegetarian recipes from across the world have been re-engineered to create a new wholesome range of products. Research was carried on for over four years at the lab and over 600 recipes which are unique adaptations and alterations of some of the world's best recipes were prepared and tested.  

ISKCON invested Rs 12.5 lakhs for its first outlet in Bangalore. Plans are also underway to open outlets at Hubli and Bellary districts in the State besides Jaipur.

In a span of next two years, 100 outlets are expected as part of their pan Indian operation. ISKCON will allocate Rs 15 lakh each.

The variety includes authentic sweets from Awadh region of Uttar Pradesh like dal ki pinni, makhani pakiza, gul-e-gulab, makhmoor-e-akhort. In addition, cakes, pastries, mousse, tarts, nut bars, brownies, pizza rolls and burgers are also sold. ISKCON will also introduce a novel concept ' Dessert of The Day' between 7-10 pm.

Further, ISKCON will invest Rs 1.5 crore to open up a 110-seater restaurant known as the 'Higher Taste' within its temple premises in Bangalore by the year end. The fine dining centre will serve popular traditional and ancient dishes. "The Indian cooking in the past did not use onion and garlic. Our dishes will include a variety, including desserts made of cotton seed. It will be called 'cotton seed halwa or the 'parthi pal halwa'," stated Das.

The food lab is well equipped to carry out studies on various food items across the world. Efforts are also on to develop the ready-to-eat products, besides beverages, mock tails including jeera zing drink and ginger lime drink.

ISKCON also has a 100-acre organic farm near Mysore. Several organic farm fresh produce and organic foods are also being made available at the Higher Taste outlet. The products sold are spices, chilly powder and banana fig.

Another initiative is the Eco Agri Research Foundation, which trains farmers in organic cultivation in Karnataka, Kerala and Madhya Pradesh.

46. Mobile Growth Continues, 8.62 Mn New Users Added In May

26 June, 2008

Growth momentum continued in the world's fastest-growing and second-largest mobile telephony market as over 8.5 million wireless subscribers were added in May taking the total telecom user base to 316.97 million. The total wireless subscribers (GSM, CDMA & WLL(F)) base stood at 277.92 million at the end of May 2008.

A total of 8.62 million wireless subscribers have been added during the month of May 2008 as against 8.21 million wireless subscribers added during the month of last year, said the quaterely report of TRAI. But negative landline connections pulled down the overall telephone connections.

In the wireline segment, the subscriber base has slightly decreased to 39.05 million in the month of May as against 39.21 million subscribers in April.

Total 8.46 million telephone connections (Wireline and Wireless) have been added during May 2008 as compared to 8.00 million connections added in April 2008.  

The total number of telephone connections reaches 316.97 million at the end of May 2008 as compared to 308.51 million in April 2008. The overall tele-density is 27.59 per cent in May 2008 as against 26.89 per cent in April.

Total broadband subscribers base has reached 4.15 million by the end of May 2008 as compared to 4.01 million by the end of April 2008.

Cheap call rates and rising purchasing power have resulted the mobile boom in the country. Country's GSM operators added 6.28 million users in May and the largest operator Bharti Airtel had signed up 2.46 million new users in May to take its total user base to 66.8 million.

47. Vodafone Showcases McLaren Replica

4 July, 2008

Vodafone Essar today showcased the replica of the Vodafone McLaren Mercedes Formula One car at Prasadz Imax here on Thursday. The car, a replica of that driven by ace racer Lewis Hamilton, will be on display over the next few days at Prasadz Imax and City Centre Mall. Vodafone customers have chance to get their picture clicked with the Vodafone McLaren Mercedes F1 Car, upon downloading or activating any value added service. Vodafone is the title partner and official mobile partner of the Vodafone McLaren Mercedes Team. And McLaren is one of the most successful teams in Formula One, having won over 150 races, 11 Drivers’ Championship and 8 Constructors’ Championships.

48. Demand For Aspirational Bikes Likely To Swell

5 July, 2008

While there is no sign of iconic American superbike Harley Davidson hitting India, the success of Yamaha’s twin superbikes—MT01 and YZF R1, which sold a total of more than 80 units in the past five months—has prompted other bikemakers to line up more products in this category.

Suzuki will launch its famed 1,340cc Hayabusa, GXR 1,000 and Bandit 1,250 bikes in September while Honda will introduce its two superbike models—CBR 1,000 and GLX 1,800—during the festive season in October. Kawasaki is eyeing the market and plans to sell its superbikes through Bajaj Auto’s network.

Yamaha had set an initial sales target of 50 bikes in 2008, but the better than expected sales of its two debutantes has prompted the company to look for other superbikes for the Indian market. Yamaha sales head T Maeda said: “We have sold most of the bikes in smaller cities. Demand for such niche bikes is rising as customers come to know about the various models available. We are looking at increasing our portfolio in this segment to cater to these super rich customers.”
The main trigger for this roadster rush is the government’s emission relaxation on Euro III compliance for Indian roads. “The demand for big bikes is actually more of a hype. We don’t expect big volumes, but it’s an emerging segment and with the number of Indian millionaires rising, the demand for these aspirational bikes will swell. We will introduce Hayabusa because it will showcase Suzuki’s strength as a big bike manufacturer,” said Suzuki Motorcycle India’s vice-president (sales and marketing) Atul Gupta.

For bike aficionados in the country, Honda Motor Company, which is the largest bikemaker in the world, is launching CBR 1,000 and GLX 1,800 in October. Italian major Ducati, which is currently sold in two exclusive showrooms in Mumbai and Delhi, has generated more than 100 queries and secured 10 orders while Kawasaki high-end bikes are expected to roll out from the Bajaj dealer network sometime next year. More than 1,000 high-end bikes are sold in India every year, most of which come as direct imports by the customers.

49. TVS Launches 160 cc Apache

7 July, 2008

Aiming to strengthen its presence in the premium segment, country's third largest two-wheeler maker TVS Motor Company on Monday launched an advanced version of its bike Apache fitted with fuel injection engine, priced at Rs 64,990.

The new bike Apache RTR FI would come with an 160 cc fuel injected engine.

"The fuel injection technology deployed in the RTR FI gives the motorcycle crisper throttle response and enhances its fuel efficiency," TVS Motor Company Head (Marketing) HS Goindi said.

"The company has strengthened its presence in the premium segment with this launch and we are planning to introduce two more products in this segment by the end of this year," TVS Motor Company General Manager (Marketing) K Ramakrishnan said.

50. Honda Launched 125 cc Bike Priced Between Rs 47,070-Rs 51,655

30 June, 2008

Aiming to sell 10 lakh units in the current fiscal, Honda Motorcycle & Scooter India on Monday launched its new 125 cc sports bike in the country priced between Rs 47,070 and Rs 51,655 (Ex-Showroom, Delhi).

"We plan to achieve a sale of one million units in the current fiscal and the launch of this new bike will help us in materialising this target," HMSI Pvt Ltd Divisional Head (Sales and Marketing) N K Rattan told reporters here.

"We plan to sell 80,000 units of the new bike, CBF Stunner, in this fiscal," he added.

The company had recorded sales of 9.07 lakh units in the previous fiscal.

In the current fiscal year, the firm targets to sell three lakh motorcycles and seven lakh scooters, he added.

HMSI had earlier announced to set up a new manufacturing facility, but it has now decided to go slow on this front.

"Currently, our production capacity is of 1.2 million units, but it can be stretched up to 1.35 million units. So we can avail of this facility for the next 2-3 years. As of now, we do not have any plans to set up a new facility," he said.  

Besides the new bike, the company plans to launch two new models this year.

"There will be one or two more new launches in this financial year. We also expect our bikes above the 800 cc category to launch in FY'09, which will be priced above Rs 10 lakh," Rattan said.

The company would import these high performance bikes as a completely built unit, he added.

51. Royal Enfield Unveils New Thunderbird

19 June, 2008

The vehicle is priced at over Rs. 1 lakh. Royal Enfield, a division of Eicher Motors, unveiled Thunderbird twinspark, a 350 cc 4-stroke motorcycle.

Addressing a press conference here on Wednesday, Siddhartha Lal, Managing Director and Chief Executive Officer, said “We have been working on twinspark technology for our type of motorcycle architecture since the late ’90s and have found it suitable for mass production with our new engine platform.

The new Thunderbird incorporates hydraulic tappets and a new lean-burn combustion technology with two spark plugs.”

Mr. Lal said the new Thunderbird twinspark motorcycle would cater mainly to the domestic market. The vehicle is priced at Rs. 1,03,200 on road. For the overseas market, the company unveiled a 500cc Royal Enfield Electra motorcycle embedded with fuel injection technology.

R. L. Ravichandran, Chief Executive Officer, said with the launch of Thunderbird twinspark 350cc, the company was absolutely primed for the entry of the unit construction engine (UCE) in the domestic market. (The traditional Royal Enfield engine is distinguished by an external clutch and gearbox while in the UCE, both these elements are integrated within a common cranckcase space.) By 2010, India would have other such twinspark models including the Machismo, Electra and the Bullet 350. Out of the four models planned for launch in the next two years, two models would be for the international market and two for the domestic market.

Capacity expansion

He said the company was planning to expand the production capacity at its Thiruvottiyur plant to 60,000 units in the next two years from the existing 40,000 units a year at a cost of Rs. 25 crore.

The company sold around 38,538 vehicles, including 350cc and 500cc motorcycles, last year. It has set a target of selling 45,000 vehicles this year.

52. Pond’s Age Miracle Range Launches Its 7 Day Challenge Campaign

15 July, 2008

New Pond’s Age Miracle with the ‘best proven anti-ageing technology’* is bringing about miracles across the country with its promise to relieve the different problems of ageing skin and deliver visible results by helping to reduce the appearance of fine lines, wrinkles and age spots in just 7-days*** .Owing to the popularity of last years campaign, Ponds once again brings to India the “7 day challenge with Money back guarantee”**.

Consumers are invited to select Pond’s outlets throughout the country to buy the Pond’s Age Miracle Daily Resurfacing Day Cream (50g) and if after 7 days they are not satisfied with the results then they can return the cream and get their money back**.

The 7 day challenge campaign with money back was kicked off in all the major metros on 21st June and is valid till 31st August. The offer is supported by a massive multi media campaign aimed at reaching women across different markets. The challenge underscores the strong belief that Ponds with its new and improved formulae now has the best proven anti-ageing technology.*

The new Age Miracle range efficiently optimizes the effects of Retinol, (a form of Vitamin A) which has long been proven to be the most effective single anti-ageing ingredient. Retinol works by penetrating deep into the skin where collagen and elastin reside, where it stimulates more collagen production and allows skin to repair and renew itself at a much faster rate. Infused with the miracle compounds called ‘Retinol Boosters’ that, when blended together with Retinol in Pond’s products, not only mimic the effects of Retinol on skin, but also amplify the effects of the products’ original Retinol content.

Pond’s has taken it yet another step further by adding the benefits of their original patented CLA (Conjugated Linoleic acid) anti-ageing technology which also hastens the skin’s cell renewal process; and AHA, which provides immediate effects by reacting to the skin’s upper layer, weakening the bonds which hold dead skin cells together. The result is Ponds breakthrough formula Advanced CLA4 Complex which is found in the newest range of the Pond’s Age Miracle line. Besides this, the new Ponds Age Miracle Daily Resurfacing Day cream also contains SPF15PA++ which offers great protection from the sun’s damaging rays.

To know more about the offer, customers can also SMS “7” to 54555 or call the Ponds helpline at 1800 220 140, where Pond’s helpline agents will attend to their queries.

Take the Pond’s Age Miracle Challenge. See the difference!

* Topical retinoids are clinically proven and recognized as the leading actives for treatment of aging skin; Pond's Age Miracle Serum contains active levels of retinoids

** Conditions Apply

***Based on reduction in wrinkles and dark spots shown in Resurfacing day cream UV SPF 15 PA++ and concentrated resurfacing serum clinical tests (compared to baseline) on Asian women in 2007.

53. Oriflame To Introduce 349 New Products

10 July, 2008

Oriflame India, a wholly owned subsidiary of Swedish direct selling major Oriflame, will introduce 349 new products in India this year to keep pace with demand from the personal and skin care segment.

“We have about 550 stock keeping units in categories like skincare, colour cosmetics, toiletries and fragrances. This year, we will be adding 349 new products to our portfolio. Indian market is growing aggressively on the back of the rising consuming class and we want to consolidate our presence here,” Mr Fredrik Widell, Managing Director of Oriflame, told Business Line. The direct selling company, which has been in India for the past 13 years, said the decade-long presence in the country has helped it to get a keen insight into the Indian market. “Last year we grew by as much as 69 per cent and this is a very positive sign for the industry. Currently, we have over one lakh distributors who operate through the direct selling network channel. The direct selling channel in India too is gaining momentum backed by awareness,” he said. Asked if the company will enter the retail channel, Mr Widell said, “No. We would stick to our core competency.” For the current fiscal, Oriflame has earmarked Rs 14 crore for its marketing related activities in India.

Oriflame, which has a facility in Noida, said almost 75 per cent of its products are imported. “Certain products, which have been customised for the Indian market, are manufactured locally.” At least 60 products from the Indian facility are also exported to nations where Oriflame has a presence.

Mr Widell said Oriflame products are priced as mid-market. “We are not looking to compete with the mass market brands. Oriflame has been positioned as an aspirational brand.”

54. Reebok On Expansion Spree, To Open 850 Stores

30 June, 2008

Global sports wear brand Reebok today said it is on a major expansion in India which would see the company open one store in almost every two days, taking the total number of stores to 850 by the end of 2008-09.

"The company, which currently has 620 stores across the country, is going for a substantial increase in its distribution, which will see its sales going up by 30 per cent per annum," Reebok India Managing Director Suvhinder Singh said.  

"Besides consolidating our existing position in metros and tier I cities, we are also going for a major expansion in tier-II and tier-III and lower-tier cities, he added.

However, he refused to divulge any investment details.

"It is not the company's policy to reveal investment and sales figures," he said on the sidelines of the Pure & Play Retail Summit here today.

The company has grown six-time in the last five years and controls 53 per cent of Indian footwear market, Singh said, adding that they would be also bringing in new products.

"We want to maintain the current position and bring new innovation and formats in various segments. We are bringing out 20 new footwear models every quarter, besides a new apparel in every 45 days," he said.

Reebok is also planning to open specialised junior stores for its young customers. As many as seven such stores will come up in Hyderabad, Mumbai and Delhi among other cities.

The company would be aggressive on its marketing strategy as it plans to expand its business in the country.

"As part of our marketing strategy we have roped in Bollywood stars and cricketers as means of communication platform as Indian customers have a tendency to associate with them," he said, adding that the company wants to utilise this for expanding into smaller cities.

55. Reliance Retail To Launch Paul & Shark Sportswear

23 June, 2008

Reliance Brands, wholly owned subsidiary of Mukesh Ambani's Reliance Retail, has formed a 50:50 joint venture with Dama Spa to launch the luxury Italian Sportswear brand Paul & Shark in the country.  

Paul & Shark and Reliance Brands would have an equal stake in the newly-formed company christened Reliance Paul & Shark Fashions Pvt Ltd, Reliance Brands' President and CEO Darshan Mehta said here today.

The brand will be launched in India in March 2009 with the spring summer collection. On the road-map ahead, Mehta said that over the next five years, the company was looking at a store network of around 20 in Tier I cities. Each store would be around 2,500- 3,000 sq ft each.

"To start with, we will have stand-alone stores but once the luxury departmental stores come up in the country, we will also have the shop-in-shop format," he said.

Mehta said that premium leisure wear, high-end fabric and great fit is what consumers were looking at.

"The collection and pricing would be more or less identical to the Dubai market," he said.

"While over the next few years, the Indian market would surely become one of the large new luxury markets of the world, the feature that makes India appealing to the Paul & Shark brand is its youthfulness," Paul&Shark's owner and CEO, Andrea Dini said.