From the desk of Strategic Resources For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address : 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India.

Volume: III

28 June, 2007

Airlines

Share Prices

 

 

 

Sales and Market Share

 

Source: Directorate General of Civil Aviation

 

01. IA Trumps Jet In May As Leading Airline – June 14

Indian Airlines leads with a market share of 23%

In May 2007, Indian Airlines managed to move ahead of Jet Airways and captured a market share of 23%, as compared to 22% in April 2007. According to an industry expert, “The aggressive marketing initiatives by Indian Airlines and the emergence of Kingfisher Airlines as a potential competitor to Jet Airways in services have helped the national carrier to grab the top slot”.  For the same period, Jet Airways followed with 22.5% market share. The Vijay Mallya-promoted Kingfisher Airlines, which has recently picked up 26% in Air Deccan, has improved its position to 12.2% in May 2007 compared to 10.9% in April 2007.

 

Source: Business Standard

 

 

Trends, Marketing Initiatives and Others

 

 

02. Malaysia’s Air Asia Planning To Fly In India By End 2008 – June 14

Air Asia to fly in India by 2008

According to Tony Fernandes, CEO of Air Asia, the low-cost airline is planning to fly to Indian destinations such as Kolkata, Cochin, Amritsar by end of 2008. “Malaysia has a bilateral agreement with India to fly to Indian destinations. We are awaiting permission from the Indian government”, Fernandes said.

 

Source: Financial Express

 

 

03. Kingfisher To Get Nod For Int’l Service By Jan – June 12

Kingfisher likely to get approval for international service by January

2008

According to civil aviation ministry sources, Kingfisher Airlines is likely to get the government approval for flying international in January 2008, before it completes three years of service. The ministry has also proposed that permission to fly on international routes will be given to airlines on a case-to-case basis and a minimum of five years of experience will no longer be required.

 

Source: Financial Express

 

 

04. New US Airline Plans To Fly To India – June 11

Sapphire Airways to start operations in India

US carrier Sapphire Airways has planned to launch its services to India by offering ompetitive fares, lower than those charged by direct flights, from 2008. According to the company’s Chairperson and Founder Rahul S Puranik, the airline is yet to get approval from the US Federal Aviation Authority and plans to start its services from San Fransisco to Bangalore through Munich from June 2008. The company also aims to launch a second flight in the Chicago-London-Mumbai sector at a later stage.

 

   

 05. JetLite May Operate On Some International Routes – June 11

JetLite examines option of operating on international routes

Jet Airways, while maintaining the primary focus of the newly acquired airline JetLite (erstwhile Air Sahara) on domestic operations, is examining the option of flying on some international routes. Jet Airways Chairperson Naresh Goyal said, “The airline will provide similar levels of comfort as Jet Airways and passengers can be transferred to Jet flights if the need ever arises.  JetLite will offer seating in a single class configuration”.

 

Source: The Hindu Business Line

 
 

 

06. Air India Express To Start Domestic Budget Service – June 10

Domestic Budget service to be started by Air India Express

Post its merger with Indian, Air India has plans to start its own budget service domestically.  “We are already successfully running our budget service, Air India Express, internationally, and this Air India Express will now run a domestic service as well after Air India's merger with Indian", said Air India's Chairperson, V Thulasidas.  Air India Express currently operates its budget service to the Middle-East and Far East, with Dubai being the only destination where both normal and budget services are operated by the flag-carrier.

Source: Economic Times

 

 

07. Airlines Unveil Sops To Woo Students – June 10

International airlines try to attract students

Almost all airlines are trying to attract students in the coming winter by offering them sops. British Airways and Air-India have already introduced offers for them. Other airlines such as Virgin Atlantic and Lufthansa are also expected to announce their offers soon. The offers include discounts on airfares and permission to carry extra baggage. Students, who will be flying on British Airways starting June till October end, can carry an extra bag weighing up to 23 kg. The airline is running a competition where in five lucky winners will get a complimentary ticket for their loved ones. National carrier Air-India is also offering a special baggage allowance for extra 10 kg to carry books besides other luggage and is also giving concessions of Rs 2000 on the one-way fare.

 

Source: Economic Times

 

 

08. Airlines Woo Passengers By Cutting Fares – June 07

International and domestic fares reduced to attract customers in monsoon period

In 2007, the airfares for international routes are likely to be reduced by 15% in the monsoon period (mid-June to September) compared to the peak summer months, According to Amadeus Managing Director Ankur Bhatia, and the fares for Singapore, Mauritius and Thailand will be reduced as Indians avoid travelling to these destinations during monsoons.  Jet Airways is offering special fares on domestic routes on advance purchase for the monsoon period. These fares, which are valid till 30 September, are lower than economy fares. SpiceJet is offering two lakh seats at 99 paise (excluding taxes) for travel between 15 June and end of September, 2007.

 

Source: Economic Times

 

 

09. Air Hostesses Will Now Act As Shopping Consultants – June 01

Air Hostesses redefine themselves as shopping consultants

Besides being ones’ companion, taking care of meals and ensuring comfort at 35,000 feet, air hostesses will now act as shopping consultants. This service feature has been introduced by Nok Air in its inaugural flight on 1 June, 2007. Positioning itself as ‘shopper’s airline’, Nok Air is offering its passengers a 10% discount on brands such as Esprit, Mango and Timberland at Bangkok’s Siam Paragon shopping mall. The service includes guiding passengers about exchange rate and public transport as well.

 

Source: Economic Times

 

 

10. Kingfisher Buys Control Of Air Deccan – June 01

Mallya's UB Holdings will board Deccan as controlling shareholder

On 31 May, 2007, the board of Air Deccan issued in-principle approval for Vijay Mallya’s UB Holdings to invest up to 26% in the low-cost carrier, making it the controlling shareholder in the Air Deccan board. UB Holdings will spend Rs 550 crore for this stake at a price of Rs 155 per share, roughly valuing Air Deccan at Rs 2,200 crore. In return, UB will get a preferential allotment of equity shares.

 

Source: The Times of India

 

 

11. Now, Maharaja Eyes Serbian Airlines – May 31

Maharaja in race to buy Serbian national airline

Air India and Indian, the two merging state-run carriers, are bidding to buy controlling stakes in Jat Airways, Serbia’s national airline. This is the first time Air India is looking at buying another airline. The only other contender for acquiring Jat Airways is Russia’s national carrier Aeroflot, which has already made a competitive bid for the offer. Jat Airways is expected to choose its partner for privatization by end of June, 2007.

 

Source: Economic Times

 

 

12. Great Wall Airlines Soon To Land In India – May 27

Great Wall Airlines to start operations in India

The Ministry of Civil Aviation is planning to issue a no-objection certificate (NOC) to Great Wall Airlines Company Ltd – a Sino-Singapore joint venture cargo airline based in Shanghai – to start flights to India. The airline is keen to fly to at least two Indian cities but will have to wait for clearances from the Directorate General of Civil Aviation before it is allowed to start regular operations. Flights by the Chinese cargo airline could also pave the way for the state-owned Indian to start regular services to Guangzhou in China.

 

Source: The Hindu Business Line

 

 

13. SriLankan Air To Increase Frequency – May 25

Frequency of SriLankan Airlines’ services to increase

SriLankan Airlines (SA), the national airline of Sri Lanka, which currently operates 95 services a week to ten destinations in India, is planning to enhance the service to 100.  The airline is planning to add new destinations such as Coimbatore, Madurai, Mangalore, Kolkata and Pune. According to Mohan de S Meegolle, Manager - Tamil Nadu and Karnataka, SriLankan Airlines, “Shopping trips, pilgrimage, general and medical tourism are areas of promise and hospitals such as Apollo had evinced interest in signing up for joint health packages to be offered by the airline”.

 

Source: Business Standard

 

 

14. Air India-Indian Combine May Hit Market Next Year – May 23

Brand name of Air India-Indian combine - ‘Air India’

The government announced on 22 May, 2007 that the merged national carrier, Air India, would wear a new look and logo. According to Civil Aviation Minister, Praful Patel, the brand name, Air India has been retained for its global and national recognition. ‘Maharaja’ will be used as the mascot. The logo of the new airline is a combination of the flying swan from Air India and the ‘Konark chakra’ from Indian’s logo. The merged airline with a fleet size of over 100 aircraft would start combined operations from July 2007.

 

Source: Economic Times

 

 

15. UB Plans Rs 200 Cr Aviation Varsity – May 22

Kingfisher Airlines likely to set up an Aviation University

Considering the shortage of pilots in India, UB Group, the promoter of Kingfisher Airlines, is likely to start an aviation university with an estimated cost of Rs 200 crore. The university will include a fully equipped pilot training centre and would be established on the lines of flying schools in the country. Jet Airways and Air Deccan are also planning to establish aviation training centres, which will include pilot training.

 

Source: Business Standard

 

 

16. Kingfisher Airlines Set To Introduce Landscape Camera Service – May 18

Landscape camera service to be introduced by Kingfisher Airlines

Kingfisher Airlines plans to introduce landscape camera system onboard its Airbus aircrafts. This will enable passengers onboard to have a scenic view of the ground on their personalised screens. The landscape camera will be displayed on channel two of the aircraft's in-flight entertainment systems. Kingfisher's Executive Vice-President Hitesh Patel said, ''India is a country with a beautiful landscape and I'm confident that our guests will find this service of great interest''.

 

Source: New Kerala

 

Product Launches

 

 

17. EgyptAir Launches New Flight To India From Tomorrow – June 01

With the commencement of the Mumbai-Kuala Lumpur route, EgyptAir, the national airline of Egypt would  launch its flights to India from 2 June, 2007.

 

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Alcohol

 

Share Prices

 

 

Trends, Marketing Initiatives and Others

 

 

18. UB Group To Set Up Winery Near Pune – June 14

UB group to establish winery near Pune

According to Abhay Kewadkar, Chief Wine Maker of United Spirits Ltd. (a unit of the UB group), the company has drawn up plans to establish vineyards and a winery near Pune to target the export and the domestic markets. The wine varieties of grapes, particularly French, are likely to be planted in 300 acres owned by the company. It will enter into long term contractual agreements with local farmers to plant additional 1,000 acres. This will give a capacity of five to six million bottles per year in the coming five years.

 

Source: Economic Times

 

 

19. Carlsberg To Enter India With Palone – June 13

Carlsberg to enter through Palone in India

Carlsberg, a Danish beer company, is likely to introduce its east European brand, Okocim Palone, in India. The brand will be positioned as a strong beer against UB’s Kingfisher Strong and SABMiller’s Haywards 5000. Carlsberg has also completed the acquisition of Himneel brewery in Himachal Pradesh, and is coming up with a greenfield project in Rajasthan. Palone will be Carlsberg first locally-bottled beer in India.

 

Source: Economic Times

 

 

20. Famous Grouse Breaks Ties With Radico – June 12

Radico and Famous Grouse break ties

According to sources, makers of Famous Grouse Whisky, Edrington Group, has established a 100% Indian arm after splitting up with the domestic major Radico Khaitan Ltd. Edrington, an independently owned large scotch distillers, has introduced Edrington Marketing Pvt. Ltd. to take the business forward. Edrington’s domestic business is led by Famous Grouse.

 

Source: Economic Times

 

 

21. MNCs Can Set Up Own Breweries – June 12

Breweries can be established by MNCs

The government is planning to remove the mandatory licensing requirement for potable alcohol (alcoholic beverages). The Department of Industrial Policy & Promotion (DIPP) has initiated a proposal to this effect. Multinationals investing in this sector will be the key beneficiaries as they can establish their own breweries instead of acquiring companies with brewery licences. The move is likely to boost investments in the manufacture of beer, wine, whisky, rum, brandy and other alcoholic beverages.

 

Source: Economic Times

 

 

22. Bacardi Eristoff To Challenge Smirnoff, Co Infuse $4M – May 31

Bacardi Eristoff to bolster its domestic operations

Bacardi Martini India Ltd (BMIL), the Indian joint venture of Bermuda-based Bacardi, plans to increase investments in imported super-premium Grey Goose Vodka, Dewar’s White Label 12 Year-Old Scotch and Bombay Sapphire Gin brands. The company is infusing $4 million to bolster its domestic operations, with the core operations centering around the locally bottled eponymous white rum, ready-to-drink Breezer and the recently launched Eristoff Vodka. According to BMIL Managing Director Jayant Kapur, India, China and Russia have been identified as the growth markets for Bacardi globally.

 

Source: Economic Times

 

 

23. Beam Global Spirits To Boost Presence In India – May 30

Beam Global Spirits creating foothold in the Indian markets

Beam Global Spirits & Wine, the fourth largest premium spirits’ company has unveiled its India plans to strengthen its presence in the country. According to Rupert Patrick, Beam Global's Managing Director for emerging markets, the company plans to establish a manufacturing plant in India and bottle another of its brands. The manufacturing plant would come up in 2008, based on the kind of volumes the existent brands in India generate. It also plans to launch another IMFL (Indian-made foreign liquor) and a bourbon whisky by late 2007.

 

Source: The Hindu Business Line

 

 

24. Diageo Lines Up Major Expansion Plans In India – May 28

Diageo to expand in India

Diageo one of the world's leading premium spirits company, is planning to establish another bottling plant in north India. The company is ready to establish a similar plant in the south in the coming months. According to company officials, the company is also planning to enter into a partnership with a vineyard in Nashik for manufacturing branded wine products in the country. It has already launched Lagavulin, Talisker and Caolila brands in India.

 

Source: The Hindu Business Line

 

 

25. Malts Waltz Through B'lore's Liquor Guzzling Crowd – May 24

Single Malt Scotch becomes the latest trend in Banglore

According to industry analysts, Bangalore, due to its cosmopolitan culture, has become a major market for 10, 15 and 18-year old single malt scotch whiskeys on par with Mumbai and Delhi. The market is growing very fast, though it has a very small base for single malts in Bangalore. The target audiences for whiskeys today are young people, as drinking single malt is considered more of a style statement.  

 

Source: Economic Times

 

 

26. Toast To Liquor Majors; That's The Spirit! – May 24

Alcohol consumption to increase in India

According to McKinsey’s latest study on the Indian consumer market, the country will witness an increase in alcohol consumption surpassing juices, colas, energy drinks and other ready-to-drink beverages. Growing affluence and declining growth of carbonated beverages will boost liquor consumption by 2025. The report suggests that while the total beverage consumption will grow at 9% in the coming 20 years, the alcoholic beverage market will grow at 9.6%, which may experience a further boost of 15- 20%, if it’s deregulated.

 

Source: Economic Times

 

 

27. Cobra Beer Eyes Numero Uno Slot – May 19

Cobra beer likely to become Number one by 2008 in India

By 2008, Cobra Beer is planning to become the Number one premium lager beer in India. The company claims that its only competition in India is from Fosters, which sold two million cases in 2006. According to the company’s Founder and Chief Executive Officer Lord Karan Bilimoria, “We are growing at 600% year-on–year. We aim to become the number one premium lager beer by setting up breweries and increasing our distribution.” In 2006, Cobra sold 0.5 million cases and in 2007 the company is planning to sell one million cases.

 

Source: Business Standard

 

 

28. Beck’s & Stella Artois Comes To India – May 18

Beck’s and Stella Artois to enter India

One of the world’s largest beer companies Belgium-based InBev, will enter India through a JV with the R K Jaipuria Group to market its flagship brands Stella Artois and Beck’s. InBev has taken 49% stake in the JV, getting access to RKJ Group’s strong distribution network and giving RKJ a portfolio of brands and operational expertise.

 

Source: Economic Times

 

 

Product Launches

 

 

29. Anheuser-Busch Uncorks Budweiser – June 13

On 11 June, 2007, one of the world’s largest brewers Anheuser-Busch (A-B) introduced its flagship beer Budweiser in India.

 

 

30. Beam Global Launches DYC Whisky In AP– June 10

On 9 June, 2007, Beam Global Spirits and Wines launched DYC, its first domestic product in the premium whisky segment, in Andhra Pradesh.

 

 

31. USL Launches New Variant Of Vodka – May 28

On 28 May, 2007, United Spirits launched 'Ramanov Diet Mate Vodka' to offer health-conscious people a beverage that can be enjoyed while burning out calories.

 

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Cars

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Sales and Market Share

 

 

 

32. GM India May Sales Up 66% – June 01

GM reports 66% increase in sales in May, 2007

General Motors India reported a 66% increase in sales during May, 2007 on the back of its newly-launched Chevrolet Spark. The company sold 5,432 units in May, 2007, compared to 3,476 units in May, 2006. The sales comprises of 2,000 units of Chevrolet Spark, 1,807 units of Chevrolet Tavera, 1,413 units of Chevrolet Aveo/Aveo U-VA and 212 units of sedan Chevrolet Optra.

 

Source: Financial Express

 

 

33. Maruti May Sales Up By 11.2% – June 01

Sales of Maruti vehicles in May, 2007 up by 11.2%

Maruti Udyog Ltd. sold 59,400 vehicles in May, 2007, up 11.2% from 53,396 units in May, 2006. Maruti sold 55,952 units in the domestic market, an increase of 9.9% from 50,904 units in 2006. Its exports rose by 38.4% to 3,448 units from 2,492 units in 2006.

 

Source: Financial Express

 

 

34. Tata Motors May Sales Dip Four Per Cent – June 01

Tata Motors reports a 4% decline in sales during May, 2007

Tata Motors reported a 4% decline in its sales (including exports) during May, 2007 at 42,558 units compared to 44,332 units in May, 2006. In May, 2007, the sales of Tata Motors’ passenger vehicle in the domestic market declined by 3% at 17,580 units. Sales of Indica were also down by 3% at 12,002 units. Sales of Indigo brands, sedan Indigo models and station wagon Indigo Marina, declined by 22% at 2,215 units.

 

Source: Economic Times

 

 

35. Mahindra Renault's Logan Sells 2,786 Units In May – June 01

Mahindra Renault marks a sale of 2786 units

Mahindra Renault's Logan has reported a sale of 2,786 units across the country in May, 2007. According to the company, it has received a resounding response in the very first month from customers in the 11 cities where the car has been launched so far. Mahindra Renault's Managing Director Rajesh Jejurikar said, “We are currently only in 40% of the markets and expect numbers to go up significantly as production and regional launches are ramped up over the next couple of months”.

 

Source: Economic Times

 

 

36. Mahindras Plan Another SUV, Cargo Carrier – May 29

Mahindra & Mahindra’s Q4 FY 2006-’07 decreases by 26.5%

Mahindra & Mahindra’s fourth quarter net profit fell by 26.5% to Rs 236.04 crore from Rs 321 crore reported a year earlier.  Mahindra attributed the fall to a one-time charge from a stake sale in Mahindra & Mahindra Financial Services. The company’s gross revenue in 2006-’07 increased by 39.7% to Rs 19,436.8 crore, while profits grew by 17.9% to Rs 1,497.1 crore. According to Anand Mahindra, Vice-chairman and Managing Director, Mahindra & Mahindra (M&M), the company plans to introduce two new platforms for passenger vehicles – one for SUV (sports utility vehicle) and the other for a cargo and passenger vehicle.

 

Source: The Hindustan Times

 

Trends, Marketing Initiatives and Others

 

37. Renault's Small Car To Cost Less Than Rs 1.5 Lakh – June 15

Renault to compete with Tata Motor’s small car

French auto company Renault is likely to develop a $3,000 small car for emerging markets such as India. The low-cost car will take on Tata Motors’ planned Rs 1 lakh vehicle.

 

Source: Economic Times

 

 

38. GM Eyes 15-20 Pc Share In Small Car Segment – June 14

GM aims to capture 15-20% share in the small car segment

According to Sumit Sawhney, General Manager (Sales), GM Motors, the company would try to capture a 15 to 20 % share in the small car segment by 2010. Although GM has made a late entry into the small car segment with the launch of Chevrolet Aveo U-VA and Chevrolet Spark in India, it plans to sell 28,000-30,000 units of both these models by the end of 2007. He also said that the company will expand the dealers' network in the country and take the total strength of its outlets from 95 to 110-115 by 2007.

 

Source: Economic Times

 

 

39. Toyota Sells 140 Units Of Corolla Limited Edition – June 13

140 units of Toyota Corolla’s limited edition sold

On 13 June, 2007, Toyota Kirloskar announced that 140 units of its premium hatchback Corolla limited edition were sold within the 20 days of its launch. The company was marketing the Corolla Limited Edition through non-conventional marketing modes and had started a website – www.corollalimited.com – to take bookings for the car. The company plans to sell 300 units of the limited edition Corolla in three months.

 

Source: Economic Times

 

 

40. Audi India Starts Operations – June 13

Audi India starts its sales office 

By establishing a sales office, the luxury carmaker Audi commenced its operations in India.  Audi, in India, will operate as a division of Volkswagen Group Sales India Pvt. Ltd. and be based in Mumbai. "We have ambitious growths plans for India and we plan to sell around 3,000 vehicles by 2010. Our goal is to become the leading automobile luxury brand in the Indian market", said Benoit Tiers, Managing Director, Audi India.

 

Source: Economic Times

 

 

41. Maruti Hikes Discounts On Select Models – June 13

Discount on select models hiked by Maruti  

Maruti Udyog has increased discounts on models such as the 800, Alto, Zen Estilo and the Esteem. The company has increased discounts on Esteem to Rs 35,000 from Rs 25,000 in May 2007, whereas a discount on Zen Estilo was hiked from Rs 10,000 to Rs 15,000 in June 2007. Discount on the popular Alto, with sales of approximately 20,000 in May 2007, was doubled to Rs 10,000. Customer preference for the Alto over the 800, in the entry level segment, and new competition from the Renault Logan and Tata Indigo, in the sedan segment, are some of the factors forcing Maruti to increase discounts on its own models.

 

Source: The Hindu Business Line

 

 

42. GM To Roll Out 3rd Small Car In India – June 13

Third small car to be introduced by GM in India

General Motors (GM) is planning to introduce a third small car in 2008, positioned between its mini-car Spark and the premium hatchback Aveo U-VA. GM aims to increase its India market share from 2% to 3% now to 10% by 2010. It will also introduce the Chevrolet Captiva — a top-end diesel SUV — in the range of Rs 15 to 18 lakhs.

 

Source: The Times of India

 

 

43. SX4 Pips Honda City In First Month – June 07

Sales of Maruti Suzuki’s SX4 surpasses that of Honda City in May

The six-year dominance of Honda City has been broken by Maruti-Suzuki’s latest offering, the SX4. According to figures for May 2007, the SX4 sold 3,000 units, compared to 2,838 units by Honda City. Suzuki introduced the SX4 at a very competitive price, keeping the base variant Rs 50,000 cheaper than Honda City. In the coming months, Honda will concentrate its efforts to retain market dominance, and Suzuki will try to create a presence in the premium sedan category, a segment in which the company hasn’t had much success.

 

Source: Financial Express

 

 

44. GM To Introduce More Brands In India – May 28

General Motors India likely to introduce more brands

General Motors India is likely to introduce more brands such as Cadillac, Pontiac, and Saab in the country, to capture a 10% share in the passenger vehicle market by 2010. GM India President and Managing Director Rajeev Chaba said, "It cannot be ruled out that GM brands such as Cadillac, Pontiac, Saab and Vauxhall would be launched in India". Presently, GM India is selling 2,000 units of Tavera and Aveo each per month across the country.

 

Source: Economic Times

 

 

45. ‘Tata’ Name For Only Entry Level Cars – May 28

Only entry level cars to get the ‘Tata’ name

Tata Motors, which has recently formed a JV with Fiat Auto, has decided to use the Tata brand name for entry-level cars. “In the times to come, Fiat will look at the premium- and high-end segments and Tata will be at the entry level”, said Ravi Kant, Managing Director, Tata Motors.  According to industry analysts, this move will allow Tata Motors to have a complete product portfolio in passenger cars without investing phenomenally in technology and product development capabilities.

 

Source: Financial Express

 

 

46. Luxury Cars On A Dream Run – May 25

India witnessing an increase in demand for luxury cars

According to industry experts, the demand for small cars and mid-size sedans has declined due to increase in interest rate, while the demand for luxury cars has increased. Leading luxury car brands such as Mercedes Benz and BMW have revised their yearly targets upwards, while smaller volume all-import cars such as Audi, Bentley, Rolls Royce and Lamborghini are trying hard to meet the customer queue.  According to Kotak Mahindra Prime CEO Sumit Bali, the reason for the increase is the growing aspiration class. The economy’s 8% dip means more professionals are getting ESOPS and crore-plus bonuses. Rajiv Dube, President- Passenger Cars Division, Tata Motors said, "The interest rate increase has impacted retail. In the car market, the premium and luxury segments are traditionally immune to price and interest rate fluctuation and that's what's happening in India now".

 

Source: Economic Times

 

 

47. Luxury Autos Vroom Into Punjab – May 25

High demand for luxury cars in Punjab

Despite having 15% market share of the Indian luxury cars in Punjab and Haryana, luxury car brands such as Audi, Porsche and BMW till recently did not have any authorised dealer in the region. Ludhiana and Jalandhar have the largest number of Mercs in India.  BMW and Audi have appointed authorised dealers in Chandigarh and Jalandar, while Porsche is about to finalise its dealer in the region JC Automobiles, Director,  Atul Aggarwal said, "Punjab has plenty of NRI money and they spent them on luxury items like cars. Luxury cars are a status symbol for the people here.  Punjab along with Chandigarh, has one of the strongest economic centres in the country”.

 

Source: Economic Times

 

 

48. Carmakers See More Mileage In Diesel – May 25

More car makers to offer diesel cars

According to estimates by the Society of Indian Automobile Manufacturers (SIAM), diesel currently holds about 20% to 25% of the total car market. Higher fuel bills have increased the demand for diesel variants and the success of mid-size sedans and top-end hatchback models such as the Hyundai Verna, Ford Fiesta and Suzuki Swift has started a flurry of launches in 2007. Ford will launch its Fusion diesel version in the third quarter of 2007, while General Motors plans to launch diesel version of luxury sedan Optra in June 2007.

 

Source: Economic Times

 

 

49. Volvo, Ford Join Hands In India – May 24

Volvo plans JV with Ford India to enter Indian market

Volvo, Europe’s top-end car maker, is planning to enter India through a joint venture (JV) with Ford India. Ford India’s parent, US-based Ford Motor, owns Volvo’s car business. The Indian subsidiaries of the two companies are planning a joint strategy – Volvo will cater to the high-end market, while Ford will focus on the mid-size segment. Volvo will enter India by launching sedan (S80) and a sports utility vehicle (XC90).

 

Source: Business Standard

 

 

50. Used Cars Catch Up With The Brand-New – May 23

Used car market catching up

The market for used-car in India, has grown by about 22% in FY 2006-’07. “The passenger car market and the pre-owned car market is growing 1:1", said R Narayanan, Head-Sales & Commercial Vehicles, ICICI.  According to Maruti Udyog Ltd.’s research, in the cities where True Value, used car business of Maruti, is present, new car sales through exchange is between one eighth to one quarter of all sales. The company has a target of 1 million evaluations for 2007. “The used-exchange penetration has gone up significantly in the last two years from 10-11% of our total sales to around 15%”, said Arvind Saxena, VP-Sales and Marketing, Hyundai India.

 

Source: Economic Times

 

 

51. Motown Plans Online Strategy To Get Mileage – May 23

Car companies opting for online strategies to increase car sales

In a bid to cut marketing costs and reach new segments, car companies are testing online strategies. The companies are also seeking help from software companies to design portals for online sales. Toyota has opted for only the online route to sell its limited edition model of Toyota Corolla. According to Toyota Kirloskar Motor (TKM), internet research is becoming an important part of car purchase process. Use of tools such as microsites, direct mailers through the internet, SMS campaigns helps the customer complete his research. According to Scott McCormack, VP Marketing, Sales and Service, Ford India, use of online and offline methods leads to lower marketing costs but more importantly higher conversion rates. Globally, nearly 50% of the car sales happen through a combination of online-offline models.

 

Source: Economic Times

 

 

52. Toyota Targeting Select Customers Through Net – May 18

Extensive web campaign to promote limited edition ‘Corolla’

Toyota Kirloskar (a JV between Kirloskar Group and Toyota Motor Corporation) is exploring different media to promote its limited edition Corolla. Targeted at the younger consumer segment, the limited edition – Corolla was launched on 17 May,  2007. The company has planned extensive promotion on 20 prominent websites. In addition, it is also planning to use direct mailers and an SMS campaign to reach its target customers.

 

Source: Business Line

 

 

53. Maruti Cars Dearer By Up To Rs 4,300 – May 17

New Anti-theft device to push Maruti car prices by Rs 4,300

Maruti Udyog Ltd. (MUL) has introduced a new anti-theft device, branded as iCAT (intelligent computerized anti-theft system), which will push up the prices of its various models, ranging from 800 to SX4 Sedan, by Rs 1,000 to Rs 4,300.  The company’s Managing Director, Jagdish Khattar, said, “The iCATs would provide the customer a foolproof device that prevents theft. With this initiative, we have equipped our cars with a feature found in advanced car markets such as EU and Australia".

 

Source: Economic Times

 

 

 

54. GM To Drive Growth With New Launches – June 10

On 9 June, 2007, General Motors India launched Optra Diesel, priced between Rs 8.74 lakh and Rs 9.99 lakh.

 

55. Honda Launches Civic Variant – June 06

On 5 June, 2007, as part of the celebrations to mark Civics’ success in India, Honda Siel Cars India (HSCI) launched the Honda Civic 1.8V range in New Delhi.

 

 

56. Audi Launches Sports Coupe In India – May 25

On 25 May, 2007, the luxury car maker Audi launched its sports car Audi TT in India at a starting price of Rs 49 lakh (ex-showroom).

 

 

57. Tata Motors Introduces Diesel In Indigo Base Model – May 17

Tata Motors launched its common rail diesel engine Indigo model in mid size segment, priced at Rs 5.25 lakhs (ex showroom, Delhi), on 17 May, 2007. The base model powered by 1.4 litre diesel will come with an air-conditioner (AC) and a power steering.

 

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Computers

Share Prices

 

 

 

Sales and Market Share

 

Source: IDC's India Quarterly PC Tracker, 1Q 2007 Release

 

 

Trends, Marketing Initiatives and Others

 

 

58. Wipro To Sell Apple Products In India – June 13

Wipro partners with Apple to sell its products in India

Wipro Infotech and Apple Computer International have partnered to sell Apple’s entire range of products in India. Wipro is creating a new team to address the market for the Apple range of products, which includes the MacBook range of notebooks, Mac range of desktops (including iMac, Mac mini and Mac Pro), Xserve servers and storage products and the entire range of iPod digital players. This new entity will address target customers in enterprise and small & medium business segments. The partnership will also provide Apple with complete access to Wipro's marketing infrastructure in the PC domain and create newer opportunities for both the companies to address new and existing markets.

 

Source: The Hindu Business Line

 

 

59. Airtel Ties Up With HCL For PCs With Broadband – June 12

HCL and Airtel partner to provide PCs with broadband

To increase India’s broadband penetration, Airtel Broadband & Telephone Services has partnered with HCL Infosystems. As part of the agreement the companies will offer computers at discounted rates bundled with a broadband connection. The special price is available on four models of HCL desktop and Notebook PCs: HCL Ezeebee XP - 4659, HCL Ezeebee XP - Z949, Celeron Laptop and Dual Core Laptop. HCL will provide discounts ranging from Rs 2,000 to Rs 3,000 to all Airtel landline customers.

 

Source: The Hindu Business Line

 

60. HP To Expand Reach In Digital Printing – June 01

HP innovating technology for digital printing

Hewlett Packard has devised a new strategy to expand the market for digital printers by enabling users to execute print jobs through the internet. HP is using various aspects of digital printing by making machines that enable print-on-demand services for short-run projects.  The company has recently launched a range of industrial printers — HP Indigo press 3500, 5500, and HP Designjet Z6100 series. HP has also unveiled Dreamcolour Technologies, which addresses the issue of colour calibration across print jobs.

 

Source: Economic Times

 

 

61. HCL To Set Up 200 Stores In Two Years – June 01

HCL plans to open ‘Digilife Stores’

HCL Infosystems Ltd, an information enabling and integration company, is planning to establish approximately 200 stores to sell digital products in coming two years. The ‘Digilife Stores’ would offer digital products, including cameras, music players, computers, gaming consoles and printing and office automation solutions of brands such as HCL, Apple, Canon, Toshiba and Casio. These stores would come up in metros, state capitals and tier-II cities.

 

Source: Daily News & Analysis

 

 

62. Xerox India To Set Up 100 Kiosks – June 01

Xerox India to promote sales of its genuine products

In an attempt to promote sales of its genuine products, Xerox India plans to establish 100 kiosks in 25 cities by the end of 2007. The company will set up kiosks in cities including Ahmedabad, Jaipur, Lucknow, Chandigarh, Kolkata, Pune, Mumbai, Bangalore and Hyderabad among others.

 

Source: Economic Times

 

 

63. Apple Plans Product Demos – May 31

Apple creates strategy to reach masses

Apple Computers is planning to conduct demos, to reach out to the public and popularise its products. The `You're your Mac' demonstration camps will take place at New Delhi, Mumbai, Ahmedabad, Pune, Bangalore, Kochi, Goa and Kolkata. The demos have been fashioned to suit both beginners and experienced users.

 

Source: The Hindu Business Line

 

 

64. Toshiba Eyes Bigger Slice Of Laptop Market – May 28

Toshiba to increase its market share of laptops in India

Toshiba Singapore Pte Limited's computer systems division plans to increase its share in the laptop market in India. In partnership with HCL Infosystems, the company, has launched four new latest technology notebook models – the Porte R400 tablet PC, a 15.4- inch Satellite A200 series, Qosmio G40 notebook with a 2-way speaker system with subwoofer, and the Satellite M200 notebook computer in India. “We have been growing by over 200% during the last four quarters. Besides, the Indian laptop market, which is pegged at 1.5 million units for 2007, is growing at an average rate of 57%. We target to continue the same velocity of growth and consolidate our position, and eventually aim at notching up the top slot”, said Sivakumar N, Head (PC division), Toshiba.
 

Source: Business Standard

 

Product Launches

 

65. Wipro unveils `green' PCs – June 14

On 14 June, 2007, Wipro Infotech introduced a new range of eco-friendly desktops and laptops, Greenware, which is compliant with restriction of hazardous substances (RoHS) and helps in reducing e-waste.

 

 

66. Acer Launches Santa Rosa Based Nb – June 01

On 1 June, 2007, Acer India announced the launch of its latest TravelMate notebook based on Intel Centrino Duo Processor Technology (codenamed Santa Rosa). The new notebook incorporates Acer's latest technologies, including SignalUp and GridVista for more reliable wireless connectivity and feature-driven display management; and CrystalBrite technology for making images come alive in spectacular cinematic colour.

 

 

67. HP Launches Large Format Printers – May 29

Hewlett-Packard has launched a new range of large format printers – HP Indigo press 3500, 5500 and HP Designjet Z6100 at PrintEx07, held in Sydney from 24 to 26 May,  2007. The new printers would be first available in Australia in June and later extended to other parts of Asia-Pacific.

 

 

68. Now, Honchos Get A BOSS From Zenith – May 29

Priced at Rs 65,000, computer-maker Zenith Computers is planning to launch Vu BOSS PC, a limited edition of PCs only for CEOs in India.

 

 

69. Seagate Launches 3 'Data Movers'– May 25

On 24 May, 2007, Seagate Technology launched its FreeAgent range of data movers, which included FreeAgent Pro, FreeAgent Desktop and FreeAgent Go.

 

 

70. WeP Peripherals Unveils Dot Matrix Printer – May 24

WeP Peripherals launched WeP HQ 2100 printer, a highspeed Dot Matrix printer capable of churning out 710 pages per hour on 23 May, 2007.

 

 

71. LG Electronics launches XNote C1 Tablet PC – May 22

LG Electronics announced the launch of its XNote C1 Tablet PC, a notebook equipped with security features such as TPM (Trusted Platform Module) and HDD security on 21 May, 2007.
 

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Consumer Durables

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Sales and Market Share

 

Source: ORG survey for January-March quarter of 2006-07

 

72. Sony Pips Onida To Third Spot In Value Sales – June 02

Sony emerges as a large player in the Indian electronics & durable market

Japanese brand Sony has emerged as a large player in the Rs 24,000-crore Indian electronics & durable market. According to ORG-GFK data for 2006-’07, Sony has a market share of 10% in value terms and 4.9% in terms of units sold. In the financial year 2005-’06, Onida had a  market share of 8.7% in value terms and 9% in volume terms. Sony has become bigger in terms of value,  of CTVs sold in the country. LG leads the CTV market with 25.2% value (25.4% volume) followed by Samsung with 18% value (13.9% volume) share.

 

Source: Economic Times

 

 

73. Durables Offtake Improves Despite Rising Cost – May 18

Consumer durables’ sales increase despite rising cost

Despite the rising costs of consumer durables, the market saw growth in various high-end categories. While frost-free refrigerators grew by 42% year-on-year during January to March 2007 and direct cool refrigerators by approximately 8%, fully automatic washing machines grew by 40% and semi-automatic by 19%. The microwave convection category grew by 74% compared to 19% growth of the solo (entry level), split ACs grew by 58% and room ACs by 11%. This growth has resulted from zero percent consumer loans’ offers by the manufacturers, changing lifestyles and robust growth in the rural market.

 

Source: Economic Times

 

Trends, Marketing Initiatives and Others
 

74. TCL Eyes Private Label Space In Retail Sector – June 15

TCL taps private label avenues in retail sector

TCL Holdings, a Chinese consumer durable company, is eyeing the private label opportunity offered by the retail sector. C M Singh, CEO, TCL Holdings, said, “One of the growth areas for the company is to become an Original equipment manufacturer (OEM) supplier to the organised retail players. The company is in talks with Reliance, Wal-Mart and other chains to primarily supply colour televisions, DVD players and air conditioners for their private labels”. At present, TCL sells approximately 4 lakh television sets in India, whereas the annual market size is 12 million units.

 

Source: Business Standard

 

 

75. LG Sponsors Indian Amateur Golf Tour To Reach Niche Consumers – June 12

To reach niche consumers, LG sponsors Indian Amateur Golf Tour

Consumer durable manufacturer LG is sponsoring the Indian Amateur Golf Tour, which commenced on 12 June, 2007 in Bangalore. According to the company, the sponsorship is aimed at targeting the upper segment of Indian golf players. The Golf Tour will touch 11 cities and incorporate 13 events. The company aims to reach upper segment consumers by sponsoring the Golf Tour.

 

Source: Exchange4media

 

 

76. Manufacturers Betting Big On Slim CRT TV – June 04

CRT to capture 10% market share in the coming two years

Technological improvements in the last one year have led to the emergence of the slim category, which is now rapidly becoming the preferred choice. Estimates show that the slim CRTs will capture a 10% market share in the coming two years. In 2006, approximately 1 lakh units of slim CRTs were sold and in 2007 it is expected to go up to 4 lakh units. “The slims are more like the LCD category in look and shape. There is already a dramatic shift from conventional CRT to slim CRT. We expect 50% market share in this segment this year”, said Samsung India, Deputy Managing Director, Ravinder Zutshi.

 

Source: Economic Times

 

 

77. Electronics Rivals Now Share Patents – May 31

White goods companies transcending competition in technology

Companies such as LG, Samsung, Sony, Videocon, Philips and MIRC Electronics have begun sharing patents to keep pace with swift technology changes, avoid patent disputes and ensure faster product launches in a fiercely competitive market. Samsung Electronics has partnered with Sony Corp to tap each other’s vast patent portfolios. The rapid speed of technology improvements along with the rising cost of developing new technologies and shrinking profit margins have forced companies to prioritise their investments into three critical areas: marketing, branding and designing.

 

Source: Economic Times

 

 

78. Whirlpool ‘Wishes’ Customers Well – May 29

Whirlpool forges long lasting relationship with customers through a loyalty programme

Whirlpool loyalty programme, Magic-Club, is reaping benefits for the company. It has managed to garner 10,000 customers within eight months of its launch. Open to women who have bought higher-end refrigerators, washing machines and microwave ovens, the rewards scheme is available only in the four metros and Bangalore. According to Sukhpreet Singh, General Manager – Brand Marketing, Whirlpool, “The company aimed to build a long-lasting relationship with the consumer that went beyond discounts. As a result, the reward points are not called `points' but `wishes'”.

 

Source: The Hindu Business Line

 

 

79. India Emerges Key Driver Of Global Television Market – May 28

India emerging as the driver of global television market

According to a recent study titled 'India Seeking a Greater Slice of the Global TV Market’ by iSuppli, a global market intelligence firm, India is emerging as a key driver in the global TV market both as a consumer and manufacturer of TV sets. Increased awareness, rising availability and declining prices are the key factors driving this trend. The study predicts that the market will grow to 18.7 million units by 2011, at a compound annual growth rate of 9% from 12.1 million units in 2006.

 

Source: The Times of India

 

 

80. Margins Of Durables Cos To Shrink Further: ICRA –  May 22

Profit margin of consumer durable companies to decrease

According to an ICRA report, the profit margins of consumer durables manufacturers are likely to decline further due to increased competition, price erosion and diminishing brand power. The research also reports that the domestic players would witness pressure over margins, as they would either have to explore fresh technologies or invest considerably in product research.  The multinationals such as Samsung, LG, Philips, who have their manufacturing units in India, are better placed as these players would be able to source the latest technology from parents.

 

Source: Economic Times

 

 

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Financial Services

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Sales and Market Share

Banks

Source: Indian Banks’ Association

 

Insurance

 

81. Life Insurance Industry Grows 49% In April– June 14

Life Insurance records growth of 49% in April 2007

The life insurance industry recorded a 49% growth in new businesses, while general insurance players saw 16% increase in April 2007. According to Insurance Regulatory and Development Authority, strong performance by Life Insurance Corporation, ICICI Prudential and SBI Life helped the industry to receive Rs 2,982 crore in April 2007, compared with Rs 1,996 crore collected in April 2006. However, some life insurers, such as Bajaj Allianz, ING Vysya Life and Reliance Life, saw a decline in premium collections during the period. 

 

Source: Business Standard

 

 

82. Bajaj Allianz To Double Premium Income – June 12

Bajaj Allianz aims to double premium income for FY 2007-’08

Bajaj Allianz Life Insurance is aiming to double its premium income in 2007-’08.  According to Sam Ghosh, Chief Executive Officer, Bajaj Allianz Life Insurance, the company reported a premium income of Rs 4,300 crore in 2006-’07 and aims a 100% growth in FY 2007-’08. The company is planning to expand its long-term, pension-linked products; women and children plan products and schemes for the rural population. The company also plans to increase its distribution reach in rural areas to promote its existing rural products.

 

Source: Business Standard

 

 

83. Premium Per Insurance Policy Rises 47% – June 02

Premium per policy increased by 47% in FY 2006-’07

Insurance is increasingly becoming an investment avenue, with the market leader Life Insurance Corporation (LIC) reporting a substantial increase in the sale of unit-linked insurance plans (ULIPs). In FY 2006-’07, the average premium per insurance policy has increased by 47% for the insurance industry. The figures have increased from Rs 5,922 in 2005-’06 to Rs 8,732 in 2006-’07. In the case of LIC's individual regular premium policies, the jump has been from Rs 4,400 to Rs 7,400. However, for private players, the premium per policy has marginally dropped from Rs 18,532 to Rs 18,073. According to V. Mony, Secretary-General, Life Insurance Council, penetration into smaller towns and the minimum obligations to rake in premium from rural areas has caused a fall in the average premium per policy for private insurers.

 

Source: The Hindu Business Line

 

 

84. ICICI Lombard Grabs 2nd Spot In Insurance Sweepstakes – June 01

IRDA ranked ICICI Lombard on 2nd position for April ’07

According to figures released by the Insurance Regulatory and Development Authority (IRDA) on 31 May, 2007, ICICI Lombard General Insurance Corporation Ltd. has earned a premium of Rs 448.65 crore for April ’07, a 35 % growth over April ’06. The public sector New India Assurance remains on top with a gross premium of Rs 650.82 crore for the same period and Oriental Insurance Company Ltd. remains at the third position with gross premiums of Rs 413.50 crore.

 

Source: The Hindu Business Line

 

 

85. Aviva Life's Growth Fund Clocks 35% Rise – May 16

Aviva Life’s Growth Fund increases by 35%

Aviva Life Insurance India's Growth Fund has reported a growth of 35% since its inception in January 2004. The fund aims at providing long-term cumulative capital appreciation while managing the risk of a relatively high exposure to equities and has sought to diversify its portfolio by spreading its assets over a range of sectors.

 

Source: The Hindu Business Line

 

Mutual Funds

 

Source: Association of Mutual Funds of India

 

 

86. Mutual Funds Asset Base Swells – June 03

Asset base for Mutual Funds increases

According to the Association of Mutual Funds in India (AMFI), the asset base of the mutual fund industry increased by Rs 57,474 crore in May 2007, a record for the last 12 months. The industry now manages Rs 4,07,753.75 crore in assets compared to Rs 3,50,279 crore in April 2007 — an increase of over 16 %.

 

Source: The Hindu Business Line

 

 

87. UTI MF Ahead On Profit Street Even As AUM Slips – May 29

UTI MF earns a net profit of approximately Rs 150 crore for FY ’07

According to the UTI officials, the UTI Mutual Fund (UTI MF) has reported a profit after tax (PAT) of little less than Rs 150 crore for financial year 2007-’08.  In 2006, UTI was the only MF with a net profit of over Rs 100 crore. However, the growth in profits has slowed down to 12% in 2007, compared to 30% in 2006.

 

Source: Economic Times

 

 

Trends, Marketing Initiatives and Others

Banks

 

 

88. Barclaycard Eyes Partnerships For Growth – June 09

Barclaycard seeks partnership to implement its growth plan

Barclaycard, part of the Barclays Bank Group, considers partnerships as an important tool for their growth strategy in the Indian credit card market. Kusal Roy, Head of Cards-India, Barclays Bank Plc said, “We are talking to large number of prospective partners in many sectors with whom we can work and where there is synergy in terms of brand and sectors. We are looking at both co-branded and affinity cards”. He, however, declined to name the prospective partners or the sectors in which the company plans to operates. The company has launched Barclaycard Gold, Barclaycard Smart Budget and Barclays Premier League Barclaycard in Mumbai, Chennai, Bangalore and Delhi in May 2007 and has plans to expand slowly and steadily into other cities as well.  

 

Source: The Hindu Business Line

 

 

89. Canara Bank In Pact With Rlys – June 01

Canara Bank partners with Railways for ATM installation

Thiruvananthapuram Circle of Canara Bank has entered into a memorandum of understanding with the Southern Railway division for installation of 11 ATMs-cum-e-ticketing kiosks at the railway stations in Kerala.

 

Source: The Hindu Business Line

 

 

90. Stanchart Eyes Middle Class With Zero Balance Offer – May 31

StanChart plans zero balance offers for middle class

UK’s Standard Chartered Bank (StanChart) plans to extend savings banking facility to India’s middle-income group as well. The bank proposes to introduce a new zero-balance savings account for regular middle-class customers across the country.  Initially the bank will offer this product only at its Jodhpur Park branch in Kolkata as a test-product. StanChart is also in the final stages of offering private banking facilities to ultra high-end customers with a minimum savings bank balance of $1 million (Rs 4 crore approximately). It currently offers priority banking facility to customers with a minimum Rs 20 lakh savings bank balance. With these two new savings bank initiatives, StanChart is trying to strengthen its presence across the income groups.

 

Source: Economic Times

 

 

91. Banking Services Come To Your Doorstep – May 25

Banks to offer services at doorsteps

On  May 24, 2007, Reserve Bank of India permitted banks to carry out doorstep banking to individuals, corporate, government departments, public sector units and others. The banks can deliver money against cheques received at the counter or through other channels, such as phone banking and internet banking. Banks can now deliver cash and drafts to customers’ homes and offices as well as collect cash, cheques and other instruments. The move is likely to benefit retail customers and corporates. Though the regulator had concerns that cash pick-up could cause money laundering, it had to possibly given in to strong demand from customers.

 

Source: Economic Times

 

Insurance

 

 

92. Bharti To Enter General Insurance – June 02

Bharti Enterprises announces entry into general insurance market

On 1 June, 2007, Bharti Enterprises announced its entry into the general insurance business in a joint venture with the AXA group in the second half of 2007.  The company is already into life insurance with the AXA group.

 

Source: The Hindu

 

 

93. Tata AIG Life Plans Expansion – May 25

Tata AIG Life aims to expand

According to Tata AIG, Managing Director, Trevor Bull, the company is planning to increase the number of offices from 72 to 120 in 2007. The sales force would double from 10,000 and the company would move into smaller towns to achieve growth targets. The company is looking to launch new products in health, pension, gratuity and unit linked products in 2007.

 

Source: Economic Times

 

 

94. Four Players To Enter Life Insurance Sector In 07 – May 25

New players to enter the life insurance sector in 2007-’08

According to Life, a Insurance Regulatory and Development Authority (IRDA) member,  another three to four players are expected to start their life insurance business during 2007-’08 fiscal. Their applications are at different stages of approval.  Some applicants are nationalised banks, who have teamed up with foreign players. Currently, there are 15 private players with 25% market share while LIC has about 75% market share.

 

Source: Deccan Herald

 

 

95. Iffco-Tokio In Tie-Up With Assist America – May 22

Iffco-Tokio ties up with Assist America

Iffco-Tokio General Insurance Company (ITGI) has selected Assist America Medical Emergency Services (India) to offer travel emergency assistance services to its policy holders in India. The association between the two companies connects individual Medishield policy holders with an array of emergency medical services while traveling within India more than 150 kilometres from their residence.

 

Source: Financial Express

 

 

96. Star Health Eyes Rs 100cr Premium In FY07 – May 21

Star Health aims to record premium worth Rs 100cr in FY ’07

V Jagannathan, Chairman and Managing Director, Star Health and Allied Insurance Company Ltd – the “sole standalone” health insurance company in India – expects a premium income of over Rs 100 crore in its first year of operations. The company began its operations in May 2006. Star Health’s associate company, Star Health and Medical Tourism Pvt Ltd. (SHMT), is planning to launch 125 clinics across the country by the end of fiscal 2008. The USP of Star Health clinics will be the telemedicine connectivity that will link the clinics to its Chennai telemedicine studio.

 

Source: Business Standard

 

 

97. LIC Gets Ready For Healthcare Foray – May 19

LIC to enter the health insurance market

Life Insurance Corporation (LIC) is likely to enter into the specialised health insurance products arena, also known as ‘benefit products’. LIC is planning a comprehensive single health insurance product, which will be backed by reinsurance in the coming months. LIC was contemplating a foray into health insurance for a long time. “This will not be a company, but a department dedicated to health insurance and we plan to come up with health insurance products by July”, said D K Mehrotra, Managing Director, LIC.

 

Source: DNA India   

     

 

Mutual Funds

 

 

98. IDBI Bank To Join MF Club Again – June 15

IDBI proposes to re-enter the MF business

IDBI Bank is planning to re-enter the mutual fund (MF) business, three years after it sold its stake in the earlier asset management company (AMC). The bank is planing a JV with its own subsidiary IDBI Capital. According to VP Shetty, Chairperson of IDBI Bank, the bank will hold 65% equity stake, while IDBI Capital will hold the balance equity of 35% in the company.

 

Source: Economic Times

 

 

99. MFs Fear Slowdown In Growth Due To PAN Rule – June 14

Introduction of the PAN proof rule could result in a drop of MFs’ sales

To prevent a slowdown in investments in the MF sector, the Association of Mutual Funds of India (AMFI) has forwarded a proposal to market regulator SEBI stating that the July 2 deadline of making PAN card compulsory should either be staggered or introduced in phases. This comes in the wake of concerns that adherence to the deadline may temporarily slowdown the growth of assets and spread of MFs across the country. The budget proposal to make PAN the sole identification number for all participants in the securities markets, including MFs, is to come into effect on July 2. According to the proposal, investors investing any amount in MFs will have to henceforth produce a proof of address and identity, in addition to the PAN card.

 

Source: Economic Times

 

 

100. ABN AMRO MF Eyes China, India Mkts With Chindia Fund – June 14

ABN AMRO MF plans Chindia Fund

ABN AMRO Mutual is planning to invest in Indian and Chinese equity markets through its open-ended Chindia Fund. This fund will also invest a limited proportion in debt and money market instruments. The fund house seeks to raise a minimum Rs 1 crore and would retain any excess subscription collected.

 

Source: Economic Times

 

 

101. Lotus India May Increase Product Offerings – June 09

Lotus India Mutual Fund targets retail investors to grow asset base

Lotus India Mutual Fund is planning an array of products in the FY 2007-’08 in both the debt and equity space, according to Ajay Bagga, CEO, Lotus India Mutual Fund. With the current assets divided into 60% in liquid funds, 10% in equity and 30% in fixed maturity plans, the fund house is targeting the retail investors to grow its asset base.  The asset management company, a joint venture partner with Fullerton Fund Management Group and Sabre Capital Worldwide, plans to launch an international - feeder fund investing in Fullerton's funds.

 

Source: The Hindu Business Line

 

 

102. French MF To Enter India – May 17

French MF likely to enter India

French mutual fund major Credit Agricole Asset Management (CAAM) is likely to enter the Indian mutual fund market. The fund house that manages assets worth €534.8 billion globally would be the fourth French mutual fund company to enter India.

 

Source: DNA India

 

 

103. Franklin Ties Up With Central Bank Of India – May 16

Franklin and Central Bank of India tie up for product distribution

Franklin Templeton Investments has signed a memorandum of understanding (MoU) with Central Bank of India for distributing its products. The bank will offer the entire range of Franklin Templeton mutual fund's products currently through 305 branches.

 

Source: The Hindu Business Line

 

 

Others

 

104. Timesofmoney Plans Personal Fin Supermall – June 11

TimesofMoney to create a global financial supermall

TimesofMoney, a part of the Times Group, plans to create a global financial supermall that will offer a one-stop solution to all personal finance needs by the end of 2007. This supermall will provide a host of personal finance services such as retail broking, distribution of IPO forms and mutual funds, insurance products, payment of utility bills, credit card and personal loans. For the distribution of mutual funds it has already signed up with 11 fund houses, including Birla Sun Life MF, Franklin Templeton, HDFC MF, HSBC, Prudential ICICI, Reliance Mutual Fund, SBI, UTI MF, Tata MF and Sundaram BNP Paribas MF.

 

Source: Business Standard

 

 

105. Reliance Money Targets 10,000 Kiosks By March 2008 – June 01

RML aims to open 10,000 kiosks by March 2008

According to Sudip Bandyopadhyay, CEO, Reliance Money Limited (RML), the company as part of its expansion operation, plans to open 10,000 kiosks by the end of fiscal ’07. The group currently has approximately 2,500 kiosks.  It will also work out partnerships with select organisations to increase the points of presence. On 1 June, 2007, RML finalized its ties with Barista Coffee Co, which will install its kiosks across the country. The company hopes to strengthen its distribution reach through this association.

 

Source: The Hindu Business Line

 

 

106. Fino, Indian Bank Sign Deal For Smart Cards – May 23

Fino to provide smart cards to Indian Bank

Financial services provider Financial Information Network and Operations (Fino) has announced its partnership with Indian Bank to offer smart card solutions to its rural customers. Fino will provide the public sector bank no-frill accounts (zero balance saving accounts) for carrying out transactions on Fino smart-cards and pot devices.

 

Source: Economic Times

 

 

107. LIC Shortlists Partners For Credit Card Venture – May 18

Partners shortlisted by LIC for its credit card venture

Life Insurance Corporation (LIC) of India has shortlisted ICICI Bank, HDFC Bank, UTI Bank, Standard Chartered Bank and Visa as partners for its credit card venture. Apart from the shortlisted banks, the corporation may also include one more partner, probably Corporation Bank, to ensure that the credit card company is not a subsidiary.

 

Source: Economic Times

 

Product Launches

Banks

 

 

108. Ing Vysya Bank Launches Zero Balance Account – June 14

On 14 June, 2007, private sector bank ING Vysya Bank announced the launch of a zero balance account called 'Freedom Savings Account'.

 

 

109. Stanchart Launches Online Rupee Trading Service – June 13

On 13 June, 2007, Standard Chartered Bank has executed its first domestic Rupee foreign exchange transaction through the Reuters Trading for Foreign Exchange (RFTX) electronic platform.

 

 

110. Union Bank Brings Door-Step Banking In UP – June 06

In June 2007, the Union Bank of India introduced ‘doorstep banking’ in the rural areas to reach out even to those who do not have a bank account.

 

 

111. Indian Bk Launches Biometric-Enabled Smart Cards – May 30

On 30 May, 2007, Indian Bank in association with Financial Information Network & Operations Limited (FINO) launched its biometric-enabled smart card banking in Dharavi at Mumbai. FINO is the leading technology-provider of biometric cards in India.

 

 

112. SBI-Maruti Loan Online Facility – May 26

On 26 May, 2007, SBI-MUL Online Application, the online facility for processing car loan applications on real time basis by State Bank of India and Maruti Udyog Ltd.  was launched in Kolkatta.

 

 

113. Andhra Bank Launches Mobile Biometric ATMs – May 22

Andhra Bank launched ATMobile, its new mobile biometric-access ATM initiative, in Hyderabad on 21 May, 2007.

 

 

114. Barclays Launches Retail Banking – May 18

On 17 May, 2007, the UK-based bank, Barclays PLC, launched its Indian retail operations. In the initial period, the bank will offer card services, personal loans, business loans and premier investment services.

 

 

Insurance

 

 

115. Bajaj Allianz Launches New Health, Life Cover – June 12

On 11 June, 2007, Bajaj Allianz Life Insurance has launched `Bajaj Allianz Care First', which provides health as well as life cover. This plan provides a common sum assured that can be utilised in case of hospitalisation cover for treatment, as well as a life cover benefit on the death of the policyholder.

 

 

116. Max New York Life Unveils New Unit-Linked Plan – May 31

Max New York Life Insurance Co Ltd. launched Life Maker Premium, a unit-linked endowment plan, tailored according to the “needs” of the middle-income group.

 

 

117. LIC Launches 'Jeevan Amrit' – May 28

Life Insurance Corporation (LIC) has launched a 'Jeevan Amrit’ plan for those who seek a long-term insurance coverage by paying premium for a short term. Open to people in the age group between 12 and 60 years, this policy is suitable for NRIs, young professionals, and artistes in entertainment industry.

 

 

118. Aviva Launches ULIP – May 15

Aviva Life Insurance has launched Dhan Vriddhi, a unit-linked investment plan (ULIP) with guaranteed returns. The company is also planning to scale up its presence in 2007, in terms of branches and agent network.

 

 

Mutual Funds

 

119. ICICI Pru MF Launches FMP Series 36-18 Month Plan B – June 13

On 11 June, 2007, ICICI Prudential Mutual has launched ICICI Prudential Fixed Maturity Plan series 36-18 months Plan B.

 

 

120. Franklin India High Growth Companies Fund Launched – May 30

Franklin Templeton Investments (India) has introduced an open-ended diversified equity fund called Franklin India High Growth Companies Fund (FIHGCF), which seeks to provide capital appreciation through investments in Indian companies and sectors with high growth rates.

 

 

121. HDFC Mutual Launches Mid-Cap Fund – May 19

HDFC Mutual Fund has launched HDFC Mid-cap Opportunities Fund, a three-year close-ended scheme. The investment objective is to generate long-term capital appreciation, from a portfolio that substantially consists of equity and equity-related securities of small and mid-cap companies.

 

Advertising Campaigns

Insurance

 

 

122. ICICI Prudential Launches Corporate Ad ‘Jeetey Raho’ – May 28

New Corporate ad launched by ICICI Prudential

The company has launched a new campaign ‘Jeetey Raho’, wherein the brand has taken a wider approach of ‘goals guaranteed’.  Amer Jaleel, Executive Director, Lowe, said, “It’s a simple thought about the non-financial benefits of insurance – the insurance guarantees your future, takes worries off your head, and a tension-free life is a better life, if not a longer life.” ICICI Prudential believes that there is shift in customer attitude towards insurance and the campaign reflects that. The commercial features a married couple conversing on the benefits of insurance. The wife explains that insurance is not just about financial support after someone’s death but also a guarantee for children’s education, old-age pension and hence a tension-free long life. The ad ends with the tagline ‘Jeetey Raho’.
 

Source: Exchange 4 Media


Others

 

123. Religare Offers Unique Benefits For Internet Trading, Unveils Unique Ad Campaign – May 21

Religare launches new ad campaign

Religare, a Ranbaxy promoter group company, which provides integrated financial services, has launched an ad campaign highlighting the unique benefits of internet. Created by Rediffusion DY&R, the campaign is targeted at the existing online tech-savvy investors, in the age group of 25 to 35. The TVC for Religare Online revolves around the fact that it is a 360-degree portal, which offers trade rewards to investors each time they use the portal. The aim of the TVC is to capture the sense of bewilderment and amazement on being paid back by the cab driver. The highlight of the commercial is the element of surprise on getting the money back which is a situation to explain the concept of trade rewards.

 

Source: Exchange4Media

 

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Food and Beverages

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Sales and Market Share

 

 

124. Private Dairies May Overtake Cooperatives By 2011 – May 16

Private companies to dominate dairy industry by 2011Biz &

According to a Dairy India 2007 report, private companies will overtake cooperatives to emerge as dominant players in the country's dairy industry by 2011. The report states that, currently, out of the total 51.4 mt surplus milk, only 18% (17 mt) is handled by the organised dairy sector. Further, within the organised sector, private and cooperative players handle 8.5 mt each. However, this is predicted to change by 2011, when private players will handle about 66% of organised sector. The report also states that the Indian dairy market is expected to double its size by 2011 to Rs 5,20,780 crore from Rs 2,27,340 currently.

 

Source: Business Line

 

Trends, Marketing Initiatives and Others

 

 

125. Food Bazaar To Foray Into Beverages Under ‘Fresh & Pure’ – June 07

Food Bazaar opens avenue into beverage sector

Food Bazaar, part of Big Bazaar, is entering into the beverage sector under its private label brand, ‘Fresh & Pure’. According to Sadashiv Nayak, CEO, Food Bazaar, “We are starting the test-marketing of six different packs of two beverage products, in ready-to-drink and mix-and-make, under ‘Fresh & Pure’ brand in Food Bazaars in Mumbai, Delhi and other metros. This will be followed by a national launch through 85 Food Bazaars, very soon”.

 

Source: Financial Express

 

 

126. Tata Tea Buys Everest Mineral – June 02

Tata Tea acquires management control of Mount Everest Mineral Water (MEMW)

On 1 June, 2007, Tata Tea, announced that it is acquiring management control of Mount Everest Mineral Water (MEMW), owners of Himalayan brand of bottled water. Tata Tea has agreed to buy 25.74% stake in MEMW for approximately Rs 115 crore. According to Tata Tea, this acquisition will contribute to the growth of the company in India and the global market place.

 

Source: Times Of India

 

 

127. Mother Dairy Plans South India Foray – June 01

Mother Dairy plans business expansion in South India

Mother Dairy, a National Dairy Development Board (NDDB) subsidiary, aims a country-wide presence and plans to enter the south India market in 2008. The company is scouting for third party manufacturing arrangements for the purpose. After the success of the brand in Kolkata and Mumbai, the company seeks to proliferate its business opportunities in markets of South India.

 

Source: Economic Times

 

 

128. Pepsico Working On Kurkure Variants – May 30

PepsiCo plans to introduce Kurkure variants

Increasing competition among crossover snack brands has led PepsiCo India's Frito Lay Division to stretch the equity of Kurkure.  The company has lined up a range of snacks in different formats suited for different needs of consumers under the bridge category i.e., between namkeens and potato chips.  Sucheta Govil, Marketing Manager, PepsiCo India Holdings (Frito-Lay Division), said, "Today we are looking at new ways to stretch the trade mark of the Kurkure brand into different formats and categories. With a robust product development team, the new Kurkure products are at the R&D stage".

 

Source: The Hindu Business Line

 

 

129. Coke Finds Edge In India – May 27

India likely to be Coke’s third largest market

Moving ahead of the controversies of pesticide in cola, Coca-Cola has announced that it has a new investment plan to boost its operations in the Indian market. Coca-Cola Co COO Muhtar Kent said that the company has healthy investment plans for the Indian market and the major part would go in marketing and setting up of infrastructure to support the system. However, the investment figures were not disclosed by him. According to company sources, India is likely to emerge as the third largest market for Coke in the long term. Currently, India does not figure in the top ten countries.

 

Source: Economic Times

 

 

130. HLL’s Ice-Cream For Diabetics To Take Time – May 19

HLL defers launch of ice-cream for diabetics

According to Hindustan Levers Limited (HLL) Chairperson Harish Manwani, the company has put on hold the launch of diabetic ice-cream and is also on track for a rollout of Pureit, water purifier brand, in Mumbai. “Pureit is still new in Maharashtra as bulk of our efforts for its sales are with doctors and at point of sales”, he said.

 

Source: Economic times

 

Product Launches

 

131. Parle Forays Into Snacks With Musst Bites – May 27

Parle Products has launched Parle Musst Bites, a flavoured, cheesling-clone snack product aimed at the youth.  This launch marks the entry of Parle Products into the Rs 2,500-crore branded snacks sector.

 

 

132. Mother Dairy Launches Dahi In Mumbai – May 26

Mother Dairy, the subsidiary of the National Dairy Development Board (NDDB), has launched its branded Dahi in Mumbai.

 

Advertising Campaigns

 

133. Coffy-Toffee? Lotte Lays That Argument To Rest – May 30

Lotte launches new TVC of Coffy Bite – ‘Coffee for kids, toffee for adults’

The Korean confectionery company, Lotte India, unveiled a TVC of Coffy Bite after two years.  The new campaign is based on the findings of a  research i.e., ‘kids have an adult-like, mature side to their personality that comes to the fore in different situations. They actually switch between their childish side and adult-like side at will’.  The TVC, made by JWT, Bangalore, features two children playing and singing a nursery rhyme inside a running train and two adult passengers distracted and unable to sleep. With the intention of catching a nap, the adults tempt the children with Coffy Bites. Sensing silence, and success, the passengers prepare to sleep only to be woken up again by the children. The kids bite into the confectionery and immediately a transformation takes place. They start dancing to the tunes of a Bollywood song. The execution is child-centric and the super at the end sums up with the tag line ‘Bachchon ki coffee, badhon ki toffee’. That literally means, ‘Coffee for kids, toffee for adults’.

 

Source: Agency Faqs

 

 

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Hotels

Share Prices

 

 

 

Sales and Market Share

 

Source: Euromonitor Report- Travel and Tourism - India- September 2006

 

 

Trends, Marketing Initiatives and Others

 

 

134. Hyatt Wants To Focus On The Mid-Market Segment In India – June 14

Hyatt bets on potential mid-market segment

Mark S Hoplamazian, President and Chief Executive of Global Hyatt Corporation, has identified 80 locations in Tier II and III markets. India is the first location outside the US where Hyatt plans to launch the ‘Hyatt Place’. “Our strategy is to be present in key cities and have our core brands represented there. We are very optimistic about the Indian market having a sustained period of growth. We are planning long-term, with a five-year vision”, said Hoplamazian.

 

Source: Economic Times

 

 

135. Tatas Line Up Rs 348 Crore For 29 New Ginger Hotels – June 14

Tatas to expand its Ginger hotels across the country

Roots Corporation (RCL), a 100% subsidiary of the Tata Group-controlled Indian Hotels Company (IHCL), is planning to open 29 new Ginger hotels across the country, including 12 in Maharashtra, in the coming three years. The company will invest Rs 348 crore in two phases in the proposed hotels. Prabhat Pani, Chief Executive Officer, Roots Corporation, said, “With increase in incomes, the country’s middle class is spending more on tour and travel and people are looking at value-for-money options for clean and safe stay. Considering this and with an aim to target this class, we have developed the Smart Basics concept hotels under the brand name Ginger”.

 

Source: Business Standard

 

 

136. DLF Hotel Hilton To Develop 3 New Properties – June 09

DLF Hotel Hilton Ltd. plans to develop three new properties

DLF Hotel Hilton Ltd., a 74:26 joint venture between DLF Group and Hilton International Co, plans to build three properties, two hotels – one in luxury category and other a business hotel – and a service apartment unit in Kolkata. According to Surojit Basak, Chief Financial Officer (CFO) of DLF Home Developers Ltd. the projects would be operational in the coming three years.

 

Source: The Hindu Business Line

 

 

 

137. Best Western To Add 100 Hotels – May 29

Best Western International to add 100 hotels in India

One of the world's largest hotel brands, Best Western International, has announced a development plan for India under the leadership of its master licensee, the Mumbai-based Cabana Hotel Management Pvt. Ltd. In the coming ten years, the companies intend to add more than 100 hotels and 10,000 rooms. Through the partnership, Cabana will represent the Best Western brand in India and provide hotel management.

 

Source: The Hindu

 

 

Product Launches

 

 

138. Oberoi Group Set To Launch Cruiser Zahra On The Nile – May 25

The Oberoi group is likely to launch its luxury cruiser The Oberoi Zahra, on the Nile in October 2007.

 

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Real Estate

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Trends, Marketing Initiatives and Others

 

 

139. DLF To Launch Rs 3,000 Cr Housing Projects In B' Lore – June 06

Housing projects to be launched in Bangalore by DLF Ltd.

DLF Ltd will invest Rs 3,000 crore in two mega housing projects in Bangalore. Chairperson, DLF Commercial Developers Ltd, A S Minocha said that the projects would come up in prime locations such as Beanerghatta and Electronic City. The approval process is going on and the construction work is expected to start in the coming three to four months. The first phase of the projects, with approximately 2,000 apartments, is likely to be ready for occupation in the coming 24 to 30 months. 

 

Source: Financial Express

 

 

140. Hindujas Consolidate Realty Business – May 28

The Hinduja Group consolidates realty business

The Hinduja group has consolidated its real estate assets under one entity and plans to rope in overseas firms for developing over 30 million sq ft of property in different parts of the country. Aasia Properties Development, fully owned by the Hindujas, will be the holding company for all the group’s real estate ventures. Its 100% subsidiary, Aasia Realty Ventures, will implement all FDI related ventures while Ashok Leyland Properties will focus on development planning, project management and design.

 

Source: Economic Times

 

 

141. Tatas Map Realty Foray, Develop Land Of Group Cos – May 25

Tatas may enter the real estate sector

The $22 billion Tata Group plans to expand in one of the fastest growing business spaces in India—real estate. According to company sources, Tatas plan to develop excess land owned by various group companies through the recently-floated $1-billion real estate fund under the Tata Realty and Infrastructure. The group is finalising a blueprint for the new business. It has hired KPMG to outline the commercial development of land owned by the group’s companies.

 

Source: Economic Times

 

 

142. ETA Star Ties Up With TN For Township Project – May 25

ETA Star partners with TIDCO, for township project

ETA Star Property Developers Ltd, a group company of the $4 billion Dubai-based ETA Ascon, has entered into an agreement with the Tamil Nadu Industrial Development Corporation Ltd (TIDCO) to establish an IT special economic zone (SEZ) and an integrated township near Chennai.

 

Source: The Hindu Business Line

 

 

143. Emaar MGF Forms Construction JV With Leighton – May 21

Emaar MGF and Leighton form a Joint Venture

On 21 May, 2007, Emaar MGF announced its tie up with one of Australia's largest project development and contracting firms Leighton Group to establish a joint venture (JV) construction company- Leighton Construction India Ltd.  In the JV, Emaar MGF (a joint venture between Dubai-based Emaar Properties and MGF Developments) will have equal partnership with Leighton. The JV firm would initially offer design and construction services for Emaar MGF projects across the country.

 

Source: Economic Times

 

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Retail

Share Prices

 

 

 

Sales and Market Share

 

Source: Euromonitor Report- Hypermarkets - India- June 2007

 

Source: Euromonitor Report- Supermarkets - India- June 2007

 

 

Trends, Marketing Initiatives and Others

 

 

144. Essar Telecom Retail Plans 2,500 Outlets – June 15

Essar Telecom plans retail expansion

Essar Telecom is planning to invest approximately Rs 1000 crore in the coming three years to establish 2,500 ‘MobileStore’ outlets and 4000 touch points across 600 cities. MobileStore is a multi-brand, multi-service outlet offering a range of mobile brands and connections from various operators. The company envisages its MobileStores in three formats: large (1,000-1,500 sq ft), medium (800-1,000 sq ft) and small (200-400 sq ft), apart from ‘shop-in-shop’ format inside large malls, hypermarkets and other stores. Rajiv Aggarwal, CEO and Director, Essar Telecom Retail, estimates gathering sales revenues of Rs 4,000 crore in the coming three years.

 

Source: The Hindu Business Line

 

 

145. Spencer's Set To Open 1,000 Stores By 2009 – June 14

Spencer’s Retail plans to open 1,000 more stores by 2009

Spencer's Retail, owned by the RPG Group, is planning to invest approximately Rs 1,000 crore to open 1,000 stores by 2009. The cluster model plan will be followed for the expansion.

 

Source: India Business Insight

 

 

146. Piramyd Megastore To Have New Brand Identity – June 13

Piramyd Retail to re-brand Piramyd Megastore

Piramyd Retail, a part of Ashok Piramal Group, will be launching a new branding strategy for its departmental store format, Piramyd Megastore, by July to August 2007. The branding strategy will be based on the theme, ‘celebration’, and use vibrant colours in the logo. It will also highlight the word, Piramyd, in blue. According to Nandan Piramal, Executive Vice Chairperson, Piramyd Retail, the old branding was not appealing therefore it was decided to reinvent the brand, to convey the consumers the idea of a total shopping experience. The company is also planning a national advertisement campaign to unveil the new brand soon.

 

Source: Business Standard

 

 

147. Hometown Plans Opening More Stores – June 12

HomeTown aims at Rs 7500 crore turnover by 2010

Home Solutions Retail (India) Ltd., a group company of Kishore Biyani-run Future Group, is planning to establish approximately 40 stores in its newly-introduced HomeTown format, aiming at a turnover of nearly Rs 7,500 crore by 2010.

 

Source: The Hindu Business Line

 

 

148. Bharti Retail Stores By Early Next Year – June 10

Bharti Enterprises to establish retail stores by early 2008

Bharti Enterprises will commence its retail venture by early 2008. This would include opening half-a-dozen stores. The Bharti-Wal-Mart joint venture is being structured in consonance with the FDI policy that allows 51% foreign direct investment in single brand retail and 100% in cash and carry wholesale business.

 

Source: The Times Of India

 

 

149. Gini & Jony Eyes 50% Biz From Freedom Fashion Stores – June 04

Freedom Fashion Stores to contribute 50% of business for Gini & Jony

Gini and Jony Apparel Ltd., the kids wear specialist, is targetting 50% of its revenue by 2010 through its newly rolled out format for kids, Freedom Fashion. Freedom Fashion houses four premium brands - Gini and Jony, United Colours of Benetton (UCB), Reebok Junior and Levis Sykes Junior for youngsters up to the age of 16. According to Business Head, Puneet Tripathi, besides garments, shoes and accessories, the company will also be retailing cosmetics for kids, which will be sourced from the UK.

 

Source: Economic Times

 

 

150. Open Retail For FDI – June 02

Industry body suggest opening retail for FDIs

The Associated Chambers of Commerce and Industry of India has suggested opening up the retail sector to allow foreign direct investments (FDIs) in a calibrated manner. This would give time to domestic retailers to prepare and face competitors such as Wal-Mart, and have a proportionate share in the projected retail business of $23 billion by 2010. Currently the organised retailing is estimated between $7.5 billion to $8 billion.

 

Source: The Hindu Business Line

 

 

151. Big Bazaar Plans Expansion – June 01

Big Bazaar aims to expand in 2007

Future Group's Big Bazaar is planning to invest Rs 1,000 crore in 2007, on expansion. The group plans to reach a milestone of 100 stores by December and finish this financial year (which ends on June 30) with a turnover of Rs 2,000 crore. In 2007, the group is also trying to strike partnerships in the categories of denim, saris and opticals.

 

Source: The Hindu Business Line

 

 

152. Foodworld Plans Stores Under Various Formats – May 30

Foodworld to launch stores under various formats

According to Norman Yum, CEO, Foodworld Supermarkets Ltd., the company is targeting to establish 200 Foodworld stores in the country in different formats such as hypermarkets, supermarkets, express stores and concept stores by 2009. Foodworld, which currently operates approximately 60 stores in Bangalore, Hyderabad and Chennai, is also eyeing North India and Mumbai.

 

Source: The Hindu Business Line

 

 

153. Consumer Durables Retailer Viveks On Expansion Drive – May 30

Viveks to expand and open 100 new stores

Chennai-based retailer for consumer durables Viveks is on an expansion drive. It will invest Rs 225 crore to open 100 stores in the South by 2010. Currently, it has 54 showrooms in Tamil Nadu and Bangalore and reported a turnover of Rs 360 crore in 2006-’07.

 

Source: The Hindu Business Line

 

 

154. Sobha Developers Forays Into Retail – May 29

Sobha Developers enters retail segment

The Bangalore-based real estate firm Sobha Developers (SDL) has entered into the retail segment with the launch of Sobha Lifestyle. Sobha Lifestyle, a chain of retail stores, will house modular home & office furniture, bed accessories & mattresses. All these products will be manufactured in-house. To begin with, Sobha has invested Rs 17 crore on the spring-mattresses division, to be sold under the brand name Sobha Restoplus. “We’re looking at a franchisee model as well as a presence in multi-brand outlets for our lifestyle products”, said Raghav Menon, Vice-President, Retail, SDL.

 

Source: Economic Times

 

 

155. Pantaloon’s Depot Aims To Double Turnover – May 28

Pantaloon’s Depot plans to double its turnover

Depot – the books, music, gifts and stationery retail business of Pantaloon Retail (India) Ltd – has set a target of doubling its turnover by the financial year 2007-’08.  The company has a turnover of Rs 50 crore for fiscal 2006-07 in the first year of its operation. Preeti Vyas, Business Head, Depot, said, “Depot has been growing at an aggressive pace over the last few months. In less than a year, Depot has increased its retail presence from three stores to 57 stores. The company believes that there is significant untapped potential in tier-2 cities in the country”.

 

Source: Business Standard

 

 

156. Reliance Retail Wants A Foot In Bata Stores – May 23

Reliance Retail looking for a strategic alliance with Bata

According to industry sources, Reliance Retail, as part of its foray into footwear segment, is holding talks with Bata for a strategic alliance to leverage its vast distribution network of a 1,000 plus stores across the country. If materialised, the alliance will include the stocking of footwear brands, planned by Reliance at Bata outlets, and in turn Bata will find space on Reliance Retail shelves. Discussions have been taking place for over a year now, but no agreement has been finalised as yet. When contacted, there was no comment from Reliance Retail's footwear vertical, while officials at Bata categorically denied about any such talks.

 

Source: Exchange4media

 

 

157. Office Depot To Pen India Chapter With Franchisees – May 23

Office Depot to enter India through franchisee route

Office Depot, the world's leading stationery and office goods retailer, plans to enter India via the franchise route. According to sources, Office Depot is interested in establishing shops in India and has been studying the market since the last three years. Earlier, the company had considered a joint venture route. Its priority now is to at least register a presence in India, so that it can start cashing in on the country’s consumer boom. 

 

Source: Exchange4media

 

 

158. S Kumars Plans To List Brandhouse Retails – May 20

S Kumar to demerge its Brandhouse retail

S Kumar Nationwide (SKNL), the flagship of the S Kumar Group, is awaiting court approval to demerge its retail entity Brandhouse, which specialises in establishing and managing exclusive brand outlets for SKNL brands – Reid & Taylor, Carmichael House and Belmonte. The company is planning to launch 1,200 stores in the coming three years and 400 stores by 2007-end. It has entered into an exclusive arrangement with Dunhill, a luxury brand for menswear and accessories, and opened the first store on 20 May, 2007, at the Shangri-La Hotel, Delhi. According to Nitin Kasliwal, Vice Chairperson and Managing Director, SKNL, the company will launch 10 Dunhill outlets each with an estimated investment of Rs 4 crores in the coming five years.

 

Source: Business Standard

 

 

159. Future Group Bets Big On E Zone, Electronics Bazaar – May 18

E Zone, Electronics Bazaar to contribute Rs 800 crore to Future Group turnover in 2007-‘08

Future Group’s retail formats for consumer electronics, E Zone and Electronics Bazaar, are expected to contribute Rs 800 crore to its turnover during 2007-’08. Currently, both the formats have posted a turnover of Rs 450 crore.  E Zone was launched last year as a lifestyle retail outlet offering 200 brands in consumer electronics and durable categories. The stores also offer private labels, such as Sensei and Koryo, in various product categories, contributing 25% to the total turnover. The company plans to launch five stores in the coming three months.

 

Source: Business Line

 

Product Launches

 

 

160. Godrej Group Plans To Launch Speciality Retail Stores – June 14

Godrej & Boyce Manufacturing Co is planning to open specialty boutique retail stores, dealing in home appliances, home and office furniture and non-apparel lifestyle products, by 2010.

 

 

161. Reliance Retail's First Hypermarket Likely By July – May 31

Reliance Mart, the first hypermarket of Reliance Retail, is likely to come up by July, 2007. The hypermarket will house a range of digital, food and lifestyle products such as apparel and footwear under various price points.

 

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Telecom (Service Providers)

Share Prices

 

 

 

 

Sales and Market Share

 

Source: Cellular Operators Association of India

 

 

162. Wireless Segment Growth Takes Tele-Density To 18.7% – May 25

Wireless segment is major contributor in tele-density growth

Falling tariffs and expanding network has facilitated telephone subscriber base in the country to reach 212.02 million at the end of April 2007, compared to 206.83 million in March 2007.  The growth in subscriber base has been attributed largely to the wireless segment, where 5.15 million subscribers have been added in April. The total wireless subscriber (GSM, CDMA & WLL (F)) base is 171.20 million now. The overall tele-density has increased to 18.74% in April 2007 compared to 18.31% in March 2007. With cellular phones becoming the popular mode of communication, the wireline subscriber base has stagnated with an increase of just 0.04 million lines in April to reach 40.82 million.

 

Source: The Hindu Business Line

 

 

163. Bharti Airtel Crosses 40-M Subscriber Mark – May 24

Airtel crosses the 40 million subscriber base

According to London based Wireless Intelligence, Bharti Airtel, one of India’s largest mobile operators, has become the tenth cellular operator in the world, to join an exclusive list of global telecom operators with more than 40 million customers from a single country. This landmark customer base was achieved in just 12 years, making Bharti Airtel one of the fastest companies to make it to this exclusive list. The company's overall wireless market share increased to over 23.2% as on April 2007, from 20.4% in FY ’06.

 

Source: The Hindu Business Line

 

 

164. Tata Tele To Spend Rs 600 Cr In Expanding Coverage – May 17

Net loss of Rs 309.9 crore reported by TTML for FY 2006-’07

Tata Teleservices Maharashtra Ltd (TTML) has reported a net loss of Rs 309.9 crore for the year ended March 31, 2007. Cash profit for the financial year 2006-’07 amounted to Rs 131 crore compared to a cash loss of Rs 21 crore in the 2005-’06. The company is planning to spend between Rs 500 crore to Rs 600 crore in 2007, to expand its coverage in the Maharashtra-Goa-Mumbai telecom circle.

 

Source: The Hindu Business Line

 

 

Trends, Marketing Initiatives and Others

 

 

165. Make Mobile Music, Mint Some Moolah! – June 15

Mobile phones to reward customer’s for composing ring tones

Cellebrum, the value added services (VAS) arm of M-Corp, is planning to pay its consumers royalty fees for ring tones and pictures composed by them if they are downloaded by others users. According to research conducted by the industry, consumers are open to the model of earning money through content generation and advertisements. “We are piloting user-generated content in Punjab and Karnataka. Users can generate their own content and upload it to our data centre. On any content that is downloaded the user who generated that content will be paid a royalty”, said Saket Agarwal, COO, Cellebrum. The company is planning to launch this service by the end of June 2007.

 

Source: Economic Times

 

 

166. BSNL To Bundle Data Card With Mobile Connections – June 13

BSNL to boost revenues by bundling PC data cards

BSNL is planning boost its revenue by bundling PC data card with its cellular connections, targeting the frequently travelling customers to access the internet and download data. BSNL's Tri-band PC Data Card (enabling voice, video & data) will be suitable for use on Global System for Mobile (GSM), General Packet Radio Service (GPRS) and Enhanced Data rates for GSM Evolution (EDGE) in home and roaming networks worldwide. The data card will provide data connectivity to users with the highest possible speed through GSM network, thus enabling rapid download of large attachments, streaming video and audio. It will also enable sending and receiving SMSs through GSM and GPRS quickly and will be used in Notebook PCs, Portables and PDAs. BSNL is yet to launch these data cards.

 

Source: Economic Times

 

 

167. Indians Talk Too Much On Mobile – June 13

India records the highest monthly ‘minutes of usage’ on mobile in the Asia-Pacific region

According telecom regulator, TRAI, an average Indian spends more time talking on mobile than the counterparts anywhere else, except the US. With over 160 million mobile subscribers, India has the highest monthly ‘minutes of usage’ (MOU) per subscriber in the Asia-Pacific region. The figure, according to the December 2006 data provided by Merrill Lynch, was 454 minutes a month for GSM and 424 minutes a month for CDMA subscribers.

 

Source: Economic Times

 

 

168. Tata Indicom Launches New Regional Campaign With Sourav Ganguly – June 12

New regional campaign with Sourav Ganguly launched by Tata Indicom

With Sourav Ganguly as its brand ambassador, Tata Indicom launched a new regional promotional campaign on June 11, 2007.  The promotion enables the buyer to participate in a lucky draw on the purchase of any Tata Indicom product in June 2007. The winner would spend a day with Ganguly, which would include a lunch and a photo session. The winner would also be presented with a cricket bat autographed by Sourav.

 

Source: Exchange4media

 

 

169. Turner, Reliance Comm In Pact – June 06

Reliance mobile users to stream live CNN International news

Reliance mobile users will now be able to download live CNN International's news and other programmes. The agreement between Turner International India and Reliance Communications will also allow consumers to download ring-tones, wallpapers, and popular animations from Cartoon Network's portfolio, which includes Tom & Jerry, Scooby-Doo and Dexter.

 

Source: The Hindu Business Line

 

 

170. BSNL, MTNL Cut Roaming Charges – June 01

Roaming Charges reduced by BSNL and MTNL

Telecom operators MTNL and BSNL have slashed national roaming charges to Re 1 for incoming calls and Rs 0.40 for outgoing calls within any visiting network as part of a new post-paid plan to be launched on 3 June, 2007. The monthly rental for the plan has been fixed at Rs 550.

 

Source: Financial Express

 

 

171. Pay Mobile Bills By Reading SMS! – May 22

Mobile bills can now be paid by receiving SMS advertisements

SMS advertisements, which used to irritate cellphone users, could now be used for earning money.  Bangalore-based firm mGinger.com is planning to pay individuals willing to receive such messages. Chaitanya Nallan, CEO, mGinger.com, said, "When users get paid by us, whether it is Rs 300 or Rs 500, it can atleast cover their mobile phone bills". The company is working on the principles of ‘permission-based marketing’. To avail this, people have to log on to mGinger.com and register themselves along with their mobile phone numbers and the ads they want to receive. They can choose any number of ads and these will be sent at the time they want.

 

Source: Economic Times

 

 

172. Virgin Mobile To Tie Up With Tata Group – May 21

Tata Group and Virgin Mobile to tie up

Mobile phone service provider Virgin Mobile will enter the Indian market through a 50-50 joint venture with Tata Group’s Tata Teleservices (TTSL). Virgin Mobile operates in United Kingdom, Australia, Canada, South Africa, the United States and France.

 

Source: TMC.com

 

 

173. Govt Considers Abolition Of Roaming Charges – May 19

Roaming charges likely to be abolished

Union IT and Communications Minister A Raja, is considering a proposal of abolishing domestic roaming charges imposed by mobile phone service providers. According to estimates, the move will collectively take away Rs 4,000 crore from various telecom operators.

 

Source: Economic Times

 

 

174. Cell Cos Take Lifetime Vows, But Are There Any Takers? – May 19

80% of India’s cellular subscribers’ use pre-paid services

According to a  six-month long study by Telecom Regulatory Authority of India (TRAI) on  lifetime pre-paid services, at least 72% of such subscribers recharge their phones every month instead of merely receiving incoming calls, as commonly perceived. The average monthly revenue per user (ARPU), for lifetime pre-paid subscribers across the country, is Rs 218 compared with Rs 261 for normal pre-paid users. Pre-paid (lifetime and normal) subscribers constitute of over 80% of India’s cellular base of over 165 million.

 

Source: Economic Times

 

 

175. Bharatmatrimony Ties Up With Airtel – May 19

BharatMatrimony ties up with Airtel

BharatMatrimony.com has tied up with mobile operator Airtel and telecom value-added service provider OnMobile to launch its voice-based service ‘Voice Matrimony'. This facility enables registered members of BharatMatrimony.com to record, listen, send and receive voice messages using their mobile handsets.

 

Source: The Hindu Business Line

 

 

176. PCO Booths Get Smarter With New Do-All Device – May 19

PCO booths to undergo image change

The traditional public call office (PCO) booths are all set to undergo a dramatic change. In near future, it will be used to pay utility bills, check bank balance, buy movie tickets, transfer money, buy railway or airline tickets, recharge pre-paid card phones, send SMS and make telephone calls through a single device. Tata Teleservices plans to launch a new telecom device `Parsec', which will allow consumers to do all the above from a single point. The company is tying up with mobile electronic top-up service providers, banks, airlines ticketing service providers and the Indian Railways Catering and Tourism Corporation (IRCTC) to roll out more than 1.5 lakh such devices, across the country, in kirana stores and large retail chains on the PCO booth model.        

 

Source: The Hindu Business Line

 

 

177. Rcom To Connect Over 2.3 Lakh Villages – May 17

Reliance Communication to connect to villages

On 17 May, 2007, Reliance Communications (RCoM) said that it will establish over 8,900 base terminal stations, which will provide telecom services to over two lakh villages, in the coming one year under the Universal Service Obligation (USO) programme. "The commencement of the project is a step forward in bridging the digital divide, that will provide telecom coverage to millions living in the remotest part of the country",  RCoM Chairman Anil Ambani said.

 

Source: Economic Times

 

 

178. VSNL Plans Wider Wi-Fi Footprint – May 17

VSNL to expand its Wi-Fi services

Videsh Sanchar Nigam Limited (VSNL) is likely to increase the footprint of its Wi-Fi service in India to tap the on-the-move market. The company will enhance the number of its `hotspots' from 250 to 1,000 during 2007. VSNL's hotspots are located at major domestic and international airports, premium hotels, educational institutions, sports stadiums, hospitals, restaurant chains and coffee shops. Its partners include the Taj Group of Hotels, Le Meridien, Café Coffee Day, Barista, Manipal University and Wockhardt.

 

Source: The Hindu Business Line

 

Product Launches

 

 

179. Airtel Launches `Yuva' Pre-Paid Card – June 15

On 14 June, 2007, Airtel has announced the introduction of a pre-paid mobile card, ‘Yuva Prepaid Pack’, specifically targeted at youngsters in Delhi and the NCRs.

 

 

180. Airtel Launches Instant Messaging Service – June 07

On 6 June, 2007 Bharti Airtel launched an instant messaging service that allows its users to chat on their mobile handset. The company is offering the service free of cost till 31 August, 2007.

 

 

181. Tata Tele's New Scheme – June 02

On 1 June, 2007, Tata Teleservices launched a new package, under which it would provide a mobile handset and a new connection with one year validity starting from Rs 1,099.

 

 

182. Airtel Launches 'Background Music' – May 29

Airtel has launched Airtel "Background Music", a unique service that allows customers to set their favourite song or instrumental piece as background music during a call. The offer is available at a monthly rental of Rs 25 and Rs 10 would be charged per download.

 

 

183. Airtel Broadband Launches Voice Chat Service – May 28

On 28 May, 2007, Airtel Broadband and Telephone Services launched voice chat service on Airtel fixed lines. The service will enable customers to talk with other Airtel mobile and fixed-Line customers across the country.

 

 

184. MTNL Launches Voice-Based Messaging – May 23

The Mahanagar Telephone Nigam Ltd (MTNL) has launched a new service that allows its mobile and fixed line telephone subscribers in Delhi and Mumbai to send voice based messages. This service is based upon the patented `Voice SMS' technology from Kirusa, a mobile value-added services provider based in New Jersey, US.

 

 

Advertising Campaigns

 

185. Dhirubhai Ambani’s Vision Transforms Into Big Idea For Mudra – June 06

Mudra picks up big idea from Dhirubhai Ambani’s Vision

Advertisement agency Mudra has introduced an ad for the PCO segment of the business based on a visionary statement made by Reliance’s founder, the late Dhirubhai Ambani. He believed that “a phone call to loved ones should be made cheaper than a postcard”. The objective of the campaign is to highlight that Reliance Communications is not just a mobile telephony company. Mudra, the agency on account for Reliance Communications, came up with the ‘Discover Reliance Communications’ premise, which is constant in all Reliance Communications advertising. The ad shows a group of small boys sitting near the bank of a river, as another boy runs across the grass fields to join them. They all sit together and make boats out of unused postcards and inland letters, signifying that this is perhaps the only use left for them. Later, a kid is shown running to his mother’s side, who is speaking into the PCO phone receiver. She holds out the receiver to him. The voiceover says that with 15 lakh PCOs across the length and breath of India, lakhs of Indians have now found a better way to stay connected. “Discover Reliance PCO, Discover Reliance Communications”.

 

Source: AgencyFaqs

 

 

186. Hutch Makes Your Search Come Alive – May 21

Hutch launches TVC for its search service

Hutch has launched a television commercial to promote its search service. The objective of this commercial is to make potential users realise that its offering is both feasible and impressive. The 90-second television commercial designed by O&M, features a sail boat with many rural passengers, goats and also an Eskimo with a harpoon in hand. Some other Eskimos stand patiently at the railway crossing, waiting to cross. Eskimos against all odds, manage to reach a common point and head to their final destination where an old man with his mobile and tea looks up in surprise at the parade of Eskimos. The scene is interrupted by a tone on the old man’s Hutch mobile phone, which says, ‘Eskimo- Search Complete’. According to O&M, ‘Search Anything’ is the caption and the origin of the core idea behind the TVC.

 

Source: Agency Faqs

 

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Two-wheelers

 

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Sales and Market Share

 

Source: Auto News Bulletin May 18 – May 24, 2007 by Murad Baig Associates

 

 

 

Source: Auto News Bulletin May 18 – May 24, 2007 by Murad Baig Associates

 

 

187. Two-Wheelers, Heavy Vehicles Sales Dip In May – June 09

Interest rates hit auto industry sales

According to the Society of Indian Automobile Manufacturers' data, two-wheelers sale in May 2007 stood at 6.06 lakh units, a decrease of 9.88% compared to 6.73 lakh sold in May, 2006. Cumulative sales of two-wheelers during April-May 2007 stood at 11.77 lakh units, lower than the 12.79 lakh units in April-May 2006. According to industry experts, the rise in interest rate has impacted sales.

 

Source: The Hindu Business Line

 

 

188. TVS Motor May Sales Down 13 Pc – June 01

TVS Motor sales decreases by 13% in May 2007

Sales of Tata Motors Co. in May 2007 fell by 13%. TVS sold 1,08,151 motorcycles and scooters in April 2007, compared to 124,678 in April 2006.

 

Source: Economic Times

 

 

189. Bajaj Auto Q4 Profit Dips 11%; Declares 400% Dividend – May 17

Bajaj Auto’s Q4 profit declines by 11%

Bajaj Auto’s profit after adjustments declined by 11% to Rs 308.31 crore for the quarter end March 31, 2007 compared with Rs 346.97 crore for the Q4 ’06. For the year ended March 31, 2007, the company recorded a profit after prior period adjustments of Rs 1237.10 crore compared with Rs 1123.27 crore in March 31, 2006.

 

Source: Economic Times

 

Trends, Marketing Initiatives and Others

 

190. Yamaha Motors Plans More Bike Models From 2008 – June 14

Yamaha to introduce new models

To take advantage of the robust growth in the two-wheeler segment, Yamaha Motor India plans to release new models by 2010. According to N. Shrikanth, Tamil Nadu Regional Head of Yamaha Motor India Sales Pvt. Ltd., the annual growth rate of 12% to 15%, seen for the last two years, is expected to last for another five years, and can be used as an opportunity to increase market share.

 

Source: The Hindu Business Line

 

 

191. Honda Plans India-Only 100 Cc Bike – June 13

Hero Honda to develop a new 100cc bike

Honda Motorcycle Scooters India (HMSI) is developing a new motorcycle in the 100 cc segment, which may hit the Indian market in the coming three years. According to HMSI's President and CEO Shinji Aoyama, the new model will be positioned slightly higher than the existing ones and come with a premium price tag. The company had already announced investment of Rs 400 crore for increasing capacity, marketing initiatives and developing products.

 

Source:  Economic Times

 

192. A New Achiever – June 10

Hero Honda sets itself apart through performance bikes

After launching Karizma and CBZ X-treme, Hero Honda is all set to introduce its new challenge under the brand name Achiever. The company's recent launches in the two-wheeler segment – CBZ X-treme and Karizma – targets customers looking for sporty and stylish bikes to make a lifestyle statement.  The new Achiever is expected to address the need of customers looking for a strong, stylish, powerful bike for commuting purpose.

 

Source: The Hindu Business Line

 

 

193. 2-Wheeler Firms Woo Women Buyers – June 04

Two Wheelers to tap women’s accessories market

Increasing number of working women and their changing lifestyles are prompting two-wheeler companies to offer add-on features/services to women customers. Scooty Pep+ manufacturer TVS plans to launch specially designed accessories such as hand gloves, scarves, T-shirts, key chains and hand bags for women. The company would also launch a range of seat covers and remote locks for two-wheelers. In 2006, Hero Honda launched exclusive women showrooms branded Just4her. The company has also established a Lady Riders Club.

 

Source: Business Standard

 

 

194. Yamaha Rides Rs 600-Cr Fun Wave – May 22

Yamaha aims to position itself as a fun bike maker

Yamaha Motor India is in the process of restructuring its operations and polishing its image in the country, to position itself as a fun bike maker. Yamaha Motor India MD Tomotaka Ishikawa said, “We are looking at positioning ourselves as the fun bike maker and would like to identify new segments outside the commuter segment”. They are likely to introduce new models in 2008.”  The company is looking at tapping the 25-plus age group in the non-commuter segment. According to industry sources, Yamaha is likely to infuse Rs 600 crore in the coming two years.

 

Source: Economic Times

 

  

195. TVS Competes Bajaj’s Breakthrough Bike –  May 19

TVS Motors to launch new bikes

The ever increasing competition in the motorcycle industry is driving companies to introduce new models and variants to generate interest among customers.  Bajaj plans to launch its 100cc bike and  similarly TVS Motors also plans to introduce two new bikes and one variant in FY 2007-’08. According to TVS officials, one of the bikes, to be launched in October 2007 to coincide with the festive season, will be on an all-new platform and positioned in the executive segment.

 

Source: The Financial Express

 

Product Launches

 

 

196. Yamaha Launches Alba – June 14

On 13 June, 2007, Yamaha Motor India, a wholly-owned subsidiary of Yamaha Motor Co. Ltd., Japan, has announced the launch of a 106 cc 4-stroke bike Alba that seeks to offer robustness and solidity, and compliments its range of bikes.

 

 

197. Hero Honda Launches New 'Splendor NXG' – May 28

On 28 May, 2007, Hero Honda introduced a new bike 'Splendor NXG' in the deluxe segment with two variants. The bike variants will be available at a cost of Rs 40,990 and Rs 41,990 (ex-showroom Delhi).

 

 

198. KEV India Launches Electronic Bike – May 28

KEV India launched its battery operated electronic bikes on May 28, 2007, in the national capital region priced at Rs 24,500.

 

 

199. Royal Enfield On Expansion Drive – May 27

On 18 May, 2007, Royal Enfield Motors launched its new Bullet Machismo 500LB, at a price tag of Rs. 1.05 Lakh (on road, Chennai). According to the company, the bike is aimed at providing the urban youth ‘the ultimate biking experience’.

 

 

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Source: Euromonitor Report - June 2007

 

Trends, Marketing Initiatives and Others

 

 

200. Emami Set For Cosmetic Changes – June 13

Emami invests Rs 220cr in FMCG segment

Emami Group plans to invest approximately Rs 220 crore for its expansion in the FMCG segment, which includes acquisitions in health and personal care space and development of product portfolio by entering into new categories.

 

Source: Economic Times

 

 

Product Launches

 

201. Godrej Consumer Launches Fairglow Face Wash – June 14

On 13 June, 2007, Godrej Consumer Products Ltd. (GPCL), manufacturers and marketers of the FairGlow brand of fairness soaps, has forayed into the fairness face wash category under the FairGlow brand name.

 

 

202. Cavinkare Unveils Special Edition Of Spinz Talc – June 13

On 12 June, 2007, Chennai-based FMCG company CavinKare Pvt. Ltd. launched a special edition of its Spinz talc, Simply Asin, named after the product's brand ambassador, actor Asin.

 

 

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203. Adidas, Reebok Kickstart Integration – June 01

Integration and expansion plans of global sports companies in India

Global sports goods companies, Adidas and Reebok, are integrating their resources in India.  All back-end functions such as sourcing, transportation, information technology, human resources, warehousing, as well as managing and setting up factory outlets, is in the process of being integrated. Both brands will remain independent and will be distributed and marketed separately. Adidas will continue to concentrate on high-performance footwear, while Reebok will focus on lifestyle sports goods. According to Anne Putz, Team Leader, Corporate PR, Adidas AG, Germany, the integration process of the brands will take three to four years.  Adidas, which has 200 single-brand franchisee stores in India, plans to increase the number to 900 by 2010. Reebok, which leads the Indian premium sports goods market with a 51% share, plans to add close to 150 new stores by the end of 2007.

 

Source: Economic Times

 

 

204. Nike's Range Of Watches, Eyewear – June 01

Nike to introduce its range of watches and eyewear in India

According to Sanjay Mehra, General Manager (India), Nike, the company will introduce its range of watches and eyewear by 2007. The products will be sports specific and related to sports training. Nike in India is growing at 50%.  India is a huge potential market for the company despite its negligible contribution to global sales. Nike has over 100 stores in India and it plans to add 50 to 75 stores in 2007.

 

Source: The Hindu Business Line

 

 

205. Reebok Launches Marketing Strategy To Promote Running – May 21

Reebok launches “Run Easy” campaign to connect with consumers

Shoe manufacturer Reebok launched its international marketing campaign ‘Run Easy’ in Delhi, India. The company plans to give away 10,000 pairs of shoes in the first phase to encourage consumers to join this global campaign. In addition, trainers in Run Easy vans will perform demos on warm ups, short run, critical patterns (such as breathing pattern and foot movements) at popular parks in metro’s including Delhi, Mumbai and Bangalore. Reebok’s strategy is to create and evolve a sport, which involves the consumer directly and not as a viewer only. The campaign’s objective is to promote running as a fun sport and leisure, as it does not require athletic qualities for participation.

 

Source: Exchange4media

 

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