9. Celebration's among world's top three rum brands – March 16

Vijay Mallya-led United Spirits’ Celebration Rum is now among the world’s top three selling rum brands. With 26.7% volume spurt in 2008, it pipped Diageo’s legendary Captain Morgan Rum to occupy the third slot behind Bacardi and Tanduay brands in the global pecking order.

United Spirits’ (USL) Celebration Rum ended with 9.7 million cases going past London-headquartered Diageo’s power brand Captain Morgan with 8.2 million, as the latter’s volume growth slowed down to 5.5% in 2008. Celebration with 7.6 million was marginally behind Captain Morgan’s 7.8 million cases during 2007, according to New York-based leading industry digest Impact International.

Incidentally, Celebration’s rapidly expanding volume sales also made it the fastest growing rum brand in the world. This comes at a time when most rums across geographies have reported negative-to-moderate growth with the largest selling Bacardi slipping 1.5% to 19.6 million cases in 2008. Manila-based Tanduay, at number two slot, remained flat at 13.5 million cases.

Celebration’s pedigreed Indian rival Old Monk declined 8% dropping to 6 million cases. The other big guns trailing Celebration Rum include Pernod Ricard’s Havana Club and Malibu brands as well as Edrington-based Brugal. The other Indian challenger in Radico Khaitan’s Contessa Rum stood at 2.3 million cases reporting a marginal 2.5% growth.

USL president Vijay Rekhi confirmed Celebration’s arrival in the top-three league of the rum world. Speaking to ET, he said Celebration Rum’s growth was part of the overall robust volume rise for the company brands. “USL along with its subsidiaries Whyte & Mackay and Bouvet Ladubay is ending financial year 2008-09 with 90.3 million cases, up from 75.2 million in the previous year. This is around 20% growth in recessionary times,” he said.

With Celebration racing past Captain Morgan, USL’s brands now figure among the top three bracket across whisky, brandy and rum flavours. The company’s McDowell’s No 1 is the top selling brandy in the world with 7.5 million cases, while the regular priced Bagpiper is the second largest selling whisky with 15.4 million cases.

Industry observers said the performance of USL on the volume front was not surprising, since India, with its large pool of young aspirational middle class, has emerged as the sweet growth spot for the international drinks industry. And the performance record during the past economic downturns has shown that local drinks industry remains recession resistant.

*According to IDC’s India Quarterly PC Tracker 2008, 4Q 2008, March 2009 release

34. Acer Aspire One D150 Launched in India

Acer has introduced the new 10.1-inch Aspire One D150 laptop in India. Announced last month, Aspire One D150 is ideal for first time computer buyers at a price point of Rs. 20,999. This Aspire One D150 model will be available from March 20 at all Croma outlets across India.

After the 8.9-inch Aspire One, Acer hits the netbook segment with a 10-inch version offering 1024 x 600 pixels as the native resolution. The Aspire One D150 has a 10.1 WSVGA LCD display featuring Acer CrystalBrite technology.
Equipped with the 1.6GHz Intel Atom N270 processor, Acer packs in a Intel 945GSE chipset that features Intel GMA950 graphics. Aspire One D150 comes with 1GB DDR2 memory and allows the adding of up to 2GB DDR2 memory.

For a change, Acer includes Windows XP with Service Pack 3 pre-loaded in the AOD150 as compared to Linpus Linux Lite OS available in previous models. A multi-touch trackpad and a six-cell Li-ion battery are the novel features of this netbook.

Aspire One D150 promises up to five hours of battery life with a six-cell Li-ion battery. Other specifications include Wi-Fi, Bluetooth, Acer Crystal Eye Webcam, and USB ports. In terms of performance, the Aspire One D150's performance levels nearly equals the Lenovo IdeaPad S10e and other netbooks falling in the 10-inch screen category.

Our Test Labs guys believe that this Aspire One model is certainly a good option over the existing MSI Wind, Asus Eee PC, and Lenovo IdeaPad models on grounds of price - Rs. 20,999.

35. Croma launches own brand laptops

Tata retail owned Croma, a store that sells consumer durables and electronic goods, has launched its own laptops, named Croma laptops. The company has launched two editions namely home series and entertainment series. Croma’s two editions are configured to suit the needs and requirements of masses have been tagged with an affordable price of $643 (Rs. 32, 999) for the home edition and $838 (Rs. 42, 999) respectively for the entertainment edition. Both the edition comes preloaded with operating systems, bundled with latest processors and ample storage.
Ajit Joshi, CEO & Managing Director, Infiniti Retail, said, “In our endeavor of relentlessly bringing in products that no retailer offers, we announce the launch of Croma Laptops. We take full responsibility of the service and performance of these featured packed machines and are offering it at an extremely competitive price point. This launch will raise our pedestal as electronics retailers since we are India’s only retailer’s to launch our own range of laptops. ”
Meanwhile, to stay with the competition, the company has announced its advantage program, through which customers can get two years of extended warranty on Croma laptops at the cost of one, one year Anti virus free and Tata indicom modem at discounted price.
The laptops are made available across all Croma outlets in the country. However, only time will tell if Croma succeeds to sail through the highly competitive PC market, with giants like Dell, HP, Lenovo and Acer already offering their machines at low prices bundled with lucrative offers

36. Fridge makers add more models, reduce dependence on frost-free – March 27

Taking lessons from the slow offtake last year, refrigerator manufacturers such as LG, Samsung, Godrej and Haier will introduce a wider range of models in new capacities this year, besides reverting to their reliance on the direct-cool models.
Last year, most majors shifted focus to the high-end, frost-free segment. This year, direct-cool is equally important. Frost-free refrigerators gained popularity since they don’t need manual defrosting, are easy to maintain and the price difference between the two segments has narrowed considerably. In a direct-cool refrigerator, cooling is by natural convection. Direct-cool models consume less electricity, but frost-free ones are able to keep food fresh for a longer period
At present, the direct-cool category accounts for 70 per cent of sales, say observers. The ratio, however, is expected to change to 50:50 in the next couple of years. Frost-free fridges cost between Rs 13,000 and Rs 2,25,000, while the direct-cool models are available from Rs 6,000 onwards.
“It is important to have the right products in the direct-cool segment, since the bulk of demand for the category comes from first-time buyers in Tier II & Tier III towns, which haven’t been directly hit by the recession. There is also sufficient cash flow in these areas,” said George Menezes, COO of Godrej Appliances.
Explaining why frost-free models sold more in recent times, he said, “With changing lifestyles, Indian consumers are willing to experiment and buy high-end products which offer enhanced features and convenience.” Godrej is betting big on its direct-cool range, introduced with new power-cool series compressor and door designs. This year, it has introduced new capacities such as 230 litres, 270 litres and 290 litres, giving more choice to consumers.
Overall, the refrigerator category grew 10 per cent in 2008 and its volume-driver, the direct-cool segment, grew only 3-5 per cent, against 7 per cent in 2007. Overall, the refrigerator category is pegged at Rs 5,200 crore. Around 4.6 millions units were sold last year.
Last year, every fourth refrigerator sold was initially expected to be from the frost-free category, with the segment expected to generate sales of Rs 2,000 crore, an over 50 per cent growth. However, a short summer season, coupled with price hikes and lower consumer spending on the back of a slowing economic environment, slowed the growth in the category to 15-18 per cent, as against 25 per cent in 2007.
Korean company Samsung expects the frost-free category to contribute to its sales in a big way, even as the demand in the rural markets is expected to be led by the direct-cool models. “We expect frost-free refrigerators to account for 45 per cent of our overall refrigerator sales,” said Ravinder Zutshi, deputy MD, Samsung India, which recorded over 35 per cent growth in the frost-free category last year. This year, Samsung plans to make significant investments in new moulds to strengthen the line-up, besides expanding its dealer channel by 40 per cent.
Given the rise in demand for energy-efficient products, rival LG India has created a new line-up by introducing frost-free models in four-star and five-star rating categories. “All new models have not only undergone immense deliberation but also intensive customer research. With this new range, we expect to increase our market share to 32 per cent in the coming financial year,” said Rajiv Jain, business group marketing head, Home Appliances.
Other refrigerator players like Videocon, Hair and Whirlpool are also betting big on innovations in both engineering and design of their products across categories
 

37. No slowdown in AC & fridge sales – March 15

Did someone say slowdown? Consumer durable companies seem to have no such concerns at the moment and are all geared up to take on the summer heat.
All major players in the durables segment are emphatic that they have managed to buck the trend and are still registering growth, though not as much as expected.

Companies such as LG, Samsung and Whirlpool have all seen an increase in demand and have come up with new products to attract customers this summer. Retailers such as Croma and X-cite, dealing in consumer durables, too are optimistic about the summer market this year.

Summer is a special time for companies as summer sales contribute to about 40-50% of their annual sales.

This year, Samsung has introduced new products in the market to create consumer excitement. So far, 25 new AC models have been intriduced in the market this year.

"Based on the new AC range introduction and an aggressive sales network expansion, we expect to notch up a 50% growth in our AC volumes this year. We are targeting a 25% market share in the air conditioner market in India this year," says R Zutshi, dy MD, Samsung India. Samsung recorded a sales growth of 30% and is targeting a growth of 23-27% this year in terms of overall business.

According to industry figures, in 2008, the market size for these categories was close to 4.6 million for refrigerators and 1.9 million for air conditioners.

Industry players are expecting a growth of about 10-15% this year. LG’s director, sales and marketing, V Ramachandran has hopes about a good year after initial reports indicating a strong demand for compressor driven products in the market.

"This will be a good year, though a bit challenging. Demand is healthy and we have witnessed double digit growth," he says.

LG recently launched 22 models of refrigerators, in four capacities of frost-free models with distinctive add-on features. LG is targeting 30-35% increase in revenue growth with this new range. The company aims at 32% percent market share in the category this year.

For Whirlpool, the strategy for both ACs and refrigerators is to provide an adequate range — in capacities, formats, energy ratings and price points. As predicting annual market or segment growth has become somewhat difficult, share gain more than absolute growth is top-most on Whirlpool’s agenda.

"We have made small changes in our operations. For one, we have shortened our planning cycles to be more predictive in planning our actions. We have increased our focus on shop floor execution through higher Below-the-Line activities," says Shantanu Das Gupta, VP, corporate affairs & strategy, Asia South, Whirlpool.

For the period April ‘08 to December ‘08, the company’s total income grew by more than 10% and net profit by more than three times versus the corresponding period in 2007.

Companies in consumer durables retail are also looking at summer to boost their sales. Retailers are looking at realistic growth instead of exponential growth this year, but feel that there is a need to be innovative. X-cite has started a summer carnival to attract more customers.

The company has tie-ups with various car companies to showcase their latest launches, it also has several gaming programmes through which customers can win foreign trips, among other things.

"It’s time for holidays and a lot more people tend to spend at this time. But only serious retailers will be able to reap the benefits of summer this year," says Srikant Gokhale, CEO, X-cite.

Croma, a Tata owned electronic retail chain, has also not seen much of a slowdown. "Summers started early for us. There has been no pressure on us as we have been able to deliver volumes. Our margins have been growing instead of shrinking," says Ajit Joshi, MD, Croma.

Product launches and refreshes are the lifeline of any business in branded goods, and that is what most of the consumer durables companies are working

38. LG India eyes 33% marketshare – March 20

Consumer durable maker LG India is eyeing 33% marketshare in the country’s LCD television industry this year on the back of new product launches. Last year, the company managed to grab a marketshare of 22.7% in the LCD television segment.

LG plans to launch 35 models of LCD televisions in the country by this year end. All the new models of screen size 22 inch and above will carry the IPS technology.

LG India business group marketing head (home entertainment) Amitabh Tiwari said, "The IPS technology will enhance quality and sharpness of the television sets. With the introduction of this technology in the LCD TV sets, we aim to grab a higher marketshare this year."

39. Consumer cos roll out summer specials to pep up demand – March 14

With the early onset of summer companies that bank heavily on seasonal products like aerated drinks, packaged water and juices, ice-creams, refrigerators and air conditioners (ACs), are going all-out to woo consumers.

Continued investments in marketing, new production lines, storage infrastructure and distribution besides fresh product variants and packs to target different income groups are key elements of the season.

Beverage companies’ which saw year-on-year rise of 25-28%in volumes in the October-December 2008 quarter, are working overtime to address anticipated demand. The industry is expecting growth to be in the 20-25% range over the next three quarters.

PepsiCo recently rolled out packaged lemon water under the brand name ‘Nimbooz’. Says PepsiCo executive director (marketing) Punita Lal, “We are seeing healthy growth rates across our portfolio and are offering consumers a variety of products like locally relevant ones such as Nimbooz and healthier choices like Tropicana, Twister and Slice.

In addition, we are looking at value pricing for the season, since we believe we have hit magic price points.”Coca-Cola has rolled out Fanta Apple nationally, which the company says is in line with maintaining its market leadership in the fruit- flavoured sparkling drink segment.

Bisleri, the market leader in the packaged water segment, is also geared up for the summer. Says Bisleri chairman Ramesh Chauhan, “Growth is healthy and we have enough excess capacity to meet growing demand.”Dabur, which is a key player in the juice segment, plans to make fresh moves this season. Says Dabur COO VS Sitaram,

“We plan to enter the fruit drinks or fruit beverage market in the first quarter of the next fiscal. This market, by virtue of its price benefit, offers huge growth possibilities.” Parle Agro has already rolled out LMN — its new brand of packaged nimbu pani. Says Parle Agro Joint MD Nadia Chauhan, “Nimbu Pani has traditionally been India’s most commonly consumed cold beverage. The challenge for us was packaging a natural product while retaining its fresh, original taste through out its shelf life.”

The season is equally action-packed for consumer durable makers. Market leader LG expects over 30% growth in sales of ACs and refrigerators in the April-June quarter. “New product categories supported by intensive marketing and advertising will drive growth. Unlike last year, weather seems to be supportive this year,” said LG India director (marketing) V Ramachandran.

Samsung too is eyeing a 40% growth in sales of home appliances in the quarter. The company says categories like ACs and refrigerators will be the key drivers of growth. “Based on newer products and aggressive sales network expansion, we expect to notch up a 50% growth in AC volumes this year,” said Samsung deputy managing director R Zutshi.

Says Whirlpool India VP (corporate affairs & strategy South Asia) Shantanu Das Gupta: “Though predictability is our biggest concern this year, we expect it to be better than last year’s. A long summer will stimulate demand since the second quarter alone constitutes roughly 35% of annual sales.

40. LICHF cuts home loan rates by 75 bps – March 17

LIC Housing Finance (LICHF) has announced a reduction of 75 basis points in its home loan rates for existing customers across all maturities.
“The incremental cost of funds have come down to around 8.25-8.75 per cent, as against over 11 per cent in October. So we have decided to pass on the benefits to existing customers,” said LICHF Chief Executive Officer RR Nair.
Correspondingly, the new rates would be in the range of 10-10.50 per cent across various maturities effective from April 1, compared with 10.75-11.25 per cent earlier.
This is for the second time in 2009 that the company has reduced rates for existing customers. Earlier, the company had reduced the rates by a similar margin in January.
“With this cut, we have reduced our rates by 150 basis points in the last three months, which is more than what we increased across three tranches last year,” Nair added.
He was referring to May, July and August last year when the company had increased the interest rates for existing customers by 25, 50 and another 50 basis points, respectivey.

41. Marketers offer special schemes for rural mkts – March 21

Bharti Airtel opened its first rural service centre in Maharashtra at Ausarikurd, a village 70 km from Pune. Three days later, the first such centre in Andhra Pradesh was inaugurated at Undavalli, known for its cave temples, near Vijayawada.

Over the past three months or so, India’s top mobile operator has opened hundreds of rural centres, branded ‘Iserve’, to activate, reactivate and recharge mobile connections, sell and exchange SIM cards, and provide value-added services like ring tones and hello tunes across the country. Airtel plans to have one service centre in every Indian village, as its deputy CEO and mobile services president Sanjay Kapoor told ET in an interview last month.

Airtel’s Iserve showcases the new thinking in India Inc: go rural, once again. Marketers across segments —from Maruti Suzuki, Hero Honda, Hindustan Unilever and ITC to LG, Samsung, Nokia and Idea Cellular —are working on their rural spiel with a vengeance, taking the dusty, unpaved country roads to overcome a sudden dip in urban demand in the face of a devastating global slowdown that claimed thousands of jobs and sent global markets into a tailspin.

Rural India––home to two-third of the country’s 114.5-crore population—has so far stayed out of all the negative news, thanks to three years of good agriculture growth and government initiatives like the Rs 60,000-crore farm loan waiver, a rural employment guarantee scheme and heightened infrastructure spends (the last two accounting for Rs 71,000 crore). All this has left rural consumers richer and more ambitious, and made marketers rush in with special schemes and tailor-made products for the highly price-sensitive rural markets. The results are showing.

Top carmaker Maruti Suzuki, which last year rolled out a special campaign for rural areas by roping in panchayat members and primary health centre workers, saw its rural sales more than double, from 3.6% of its total sales to 9%, in the first 10 months of 2008-09 compared with the same period of 2007-08.

“There is a liquidity crunch in the economy and so we needed to target consumers who do not require credit and rural consumers presented a good opportunity, thanks to rich crop yields,” says Maruti Suzuki executive officer (marketing & sales) Mayank Pareek.

General Motors India is seeing greater sales of its heavily-promoted small car, Spark, in rural and small-town India, while Mahindra & Mahindra says over two-thirds of the sales of its multi-utility vehicle, Scorpio, is from these markets. Bikemaker Hero Honda too claims to be selling more bikes in rural India, as a proportion of its total sales, compared to a year ago.

Consumer electronics majors LG and Samsung––which garner 35% and 27% of their sales from rural India, respectively––expect that share to rise by another 3-5% this year. LG recently launched a range of direct cool refrigerators and Super Slim TVs to attract rural consumers who cannot afford expensive LCD TVs. “We have learnt that the certainty of growth is higher in rural India as urban markets reel under the slowdown,” LG Electronics India marketing director V Ramachandran said. Saturation and slowdown in the urban market apart, low penetration of consumer goods in rural areas is also a big bait for marketers to beat a path to India’s 6 lakh-odd villages

42. Corporation Bank Ties up with Hyundai Motor India for Car Loans – March 26

Corporation Bank signed a memorandum of understanding (MOU)with Hyundai Motor India Ltd (HMIL) on Wednesday March 25, for financing the purchase of the cars manufactured by HMIL. The bank’s general manager M P Kunju and HMIL senior vice president (Marketting and Sales) Arvind Saxena signed the MOU in the city.
The tie-up provides for the additional facility of car loans for Hyundai customers, from Corporation Bank. The bank will be financing these cars under its ‘Corp Mobi’ scheme that offers attractive interest rates. All branches of the bank from across the country will be covered under this tie-up arrangement.
The tie up aims at enabling both the organizations to reach out to wider market and offer convenient and easy auto loans to prospective customers. It would help to utilize and leverage each other’s strengths to cross-sell Hyundai vehicles as well as the bank’s car loans and schemes, a joint press release issued by Corporation Bank and Hyundai Motor India Ltd said.

43. Private sector banks turn focus on SMEs – March 17

In the face of the economic slowdown since the last one year, the small and medium enterprises sector has emerged a favourite for private banks to do business with.

Such enterprises constitute 80 per cent of the registered companies in India. An SME size varies from one with a turnover of Rs 25 crore to Rs 1,000 crore a year. In early 1980s, Infosys Technologies was also an SME, and today it’s an IT giant in India.

The contribution of SMEs to India’s GDP is projected to touch 22 per cent by 2012, according to Assocham.

IndusInd Bank, ICICI Bank and Development Credit Bank are focusing on the banking needs of SMEs with extra vigour. DCB and IndusInd have reduced the time of credit approval (for disbursing loans) from 15-30 days to 7-15 days.

In fact, IndusInd is planning to launch ‘factoring’ service to help export oriented SMEs for trade finance by June-July.

“Factoring will help SMEs, who are exporting their products abroad, to shorten their payment cycle and thereby carry on with their expansion plans,” said Sanjeev Anand, head - commercial banking group, IndusInd Bank.

For this, IndusInd will tie up with a bank in the importing country to get an upfront payment (almost 90-95%) against the products exported. Therefore, the exporting Indian SME will get its payment immediately, instead of waiting as long as 90 days.

ICICI Bank is organizing knowledge series workshop for CEOs across SME clusters. The knowledge series is being conducted in association with Cyber Media for technology input, IIM Calcutta for marketing technique, and Deloitte for taxation policy. The series is being held in 26 cities for across the nation.

The bank has also initiated several programs like SME Dialogue, Emerging India awards and SME Toolkit to help SMEs interact and transact among themselves and with large corporations.

“All these efforts are aimed at scaling up the SMEs to the next level of growth and to improve their business towards a more secure future,” said Vijay Chandok, head - SME business and senior general manager, ICICI Bank.

IndusInd Bank is also in the process of creating a ‘scoring model’ for SME clients, wherein there are certain parameters (corporate governance, credit worthiness, credential etc.) to determine a status of an SME customer to business with.

While IndusInd Bank has extended the “loan against rent receivable” and warehouse financing to SMEs, DCB has made cash management tools available to SME players.

“Usage of cash management tool will help bring down the turnaround time for collection of payments. Consequently, SMEs can encash their outstation cheques in only 3 days,” said K S Ramdas, executive vice president, & head SME banking, DCB, which is in the process of devising more relaxed credit routes for smaller players.

44. Swiss bank UBS AG becomes latest scheduled bank in India – March 13

Switzerlands biggest bank UBS AG has become the latest scheduled bank in the country.


"We advise that the name of "UBS AG" has been included in the Second Schedule to the Reserve Bank of India Act, 1934 by notification ... dated February 6, 2009," the Reserve Bank of India (RBI) said in a notification today.

The Swiss bank, which already offers investment banking and other services in India, is now all set to commence commercial banking operations in the country.

All banks which are included in the Second Schedule to the Act are scheduled banks. These banks comprise scheduled commercial banks and scheduled co-operative banks, RBI says.

Scheduled commercial banks in India are categorised into five different groups according to their ownership and/ or nature of operation.

These bank groups are State Bank of India and its associates, nationalised banks, regional rural banks, foreign banks and other Indian scheduled commercial banks (in the private sector) "too few companies are genuinely transparent".

45. Car companies tie up with govt banks to boost sales – March 4

Taking benefit of falling interest rates, automobile companies, which have been hit hard by a severe slump in demand in the last six to seven months, are forging alliances with public sector banks (PSBs) to arrange for cheaper finance to push sales.
Barring State Bank of India, PSBs, which have less than 20 per cent share in the auto finance business, are looking at these alliances to grab a bigger share of the pie.
SBI, along with HDFC Bank, Axis Bank, ICICI Bank and Kotak Mahindra Bank account for 75 per cent of the market share.
Banks, which have tied up recently with auto makers include Punjab National Bank (PNB) and Syndicate Bank with Hyundai Motors, Andhra Bank and Bank of Baroda with General Motors, Central Bank of India and Corporation Bank with Tata Motors, Punjab and Sind Bank and Corporation Bank with Maruti Suzuki.
Apart from lower interest rates, some of the deals also allow for lower margin money. In addition to the retail tie-ups, many auto dealers have signed up with country’s largest lender SBI.
“The rates offered by public sector banks are much more attractive than the ones offered by private sector players. In addition, these banks have a wider reach across the country. The share of PSU banks in our sales has risen to 30 per cent from 18 per cent earlier,” said Hyundai Senior Vice-president (marketing and sales) Arvind Saxena.
According to auto makers, the processing time required for a vehicle loan by a public sector bank has also come down.
“Private sector banks had a market share of 70 per cent while PSU banks had a share of about 10-15 per cent and the balance was in cash. PSUs’ share has gone up to 35-40 per cent as of today. Speedier processing of loans by PSU banks has also helped them gain market share besides lower interest rates,” said General Motors India Director and V-P (corporate affairs) P Balendran.
Maruti Suzuki, a leader in the passenger car segment, sold 70,625 vehicles in February, an increase of 19 per cent over same period last year. This could perhaps be an indicator of change in the business sentiment, said auto analyst with equity broking house.
Public sector banks (PSB) see opportunity in filling the gap in the financing market ever since private banks reduced their auto finance portfolio drastically. PSBs have the advantage of a huge network especially in the rural sector which has not been much impacted by slowdown.
However, banks are lending caution while scrutinising a loan application.
“Even if tie-ups are in place, it does not mean that branches would start work is gusto. They will make doubly sure that credit proposal is going to be sound to avoid for containing increase in incidence of bad loans”, said credit head of small public sector bank.

46. LIC ties up with Punjab National Bank – March 18

Life Insurance Corporation (LIC) of India has entered into a strategic agreement with Punjab National Bank (PNB) to enable the bank’s customers to have access to the wide range of products of LIC.
The agreement was signed in the presence of LIC Chairman T. S. Vijayan and the bank’s Chairman and Managing Director K. C. Chakrabarty at a function here on Monday. LIC has so far tied up with 31 banks through corporate agency model and with banks through referral model for developing banc assurance.
Speaking on the occasion, Dr. Chakrabarty said the bank had no immediate plans to further reduce lending rates.
“We are already aggressive on PLR (prime lending rate) cut but have no immediate plans,” he told reporters.
He further said unless banks were able to reduce their deposit rates, they would not be able to reduce lending rates any more.
“The government is giving 8 per cent on the post office savings schemes, so I cannot go down below that. But removal of certain structural bottlenecks like cross-subsidisation of interest rates could help in the reduction of prime lending rates,” he added.
Gramin Bank’s feat
Haryana Gramin Bank, sponsored by PNB, had achieved a milestone by introducing centralised banking solution (CBS), which would enable customers to carry out banking at locations convenient for them.
“In view of numerous advantages, which had been derived by implementing CBS at commercial banks, it was felt that CBS should also be implemented in regional rural banks (RRBs),” Mr. Chakrabarty added.

47. Citibank launches Citi Mobile

Citibank on Thursday announced the launch of Citi Mobile, its mobile banking solution that combines the consumer need for convenient, on-the-go banking with advanced mobile technology that is compatible with popular mobile devices across most GSM operators.

Through Citi Mobile, customers can check account balances, send money, issue drafts, pay bills, make credit card payments, register for services like e-Statements, request for a cheque book, stop payments and much more.

Citi Mobile can be quickly downloaded onto a mobile phone, making mobile banking for Citibank customers as fast and effortless as banking online. The requirements for accessing Citi Mobile are a Citibank Banking/Credit Card account, an active Internet PIN, a mobile number that is registered with the bank, and a Java-enabled mobile phone with a GPRS connection.

Customers can SMS MBANK followed by the last 4 digits of their Debit/Credit Card number to 52484. An SMS response will be delivered to the customer's mobile phone indicating the URL for Citi Mobile.

This URL can be used to download Citi Mobile onto the mobile phone. On Citi Mobile, all customer interaction is https secure and encrypted using 128-bit SSL; further, no customer data is stored on the mobile phone, making this one of the most secure access channels.

Announcing the launch of Citi Mobile in India, N. Rajashekaran, Country Business Manager, Global Consumer Group, Citi India, said, "Citibank has always been a forerunner in putting technology to work for our customers.

With Citi Mobile, we are happy to address our customers' emerging lifestyle needs and support them in accessing their money in a fast, convenient and secure manner through something they always have with them - their mobile phones.

Given the recent growth trends in mobile phone usage in India, we expect this to grow into a significant channel for customer service and contact."

48. Dabur India opens fourth newu store – March 24

Dabur India's retail subsidiary, H&B Stores, has opened its fourth newu outlet in Bangalore.
With this, the newu presence has now grown to 10 outlets spread across the country. The company has also announced plans to add 12-15 new stores over the next one year to further expand its footprint in the beauty, health and wellness retail market across India.
The latest newu store, which is spread over 300 square feet, will offer a wide selection of brands in categories such as cosmetics, skin care, hair care, fragrances, herbal care, beauty implements and accessories, gifts and confectionery, men and children toiletries, health foods and Ayurvedic products.
Sunitha Srinivasan, head of south India for H&B stores, said: "The brand newu has become synonymous with easy access to international and national health, beauty and wellness brands. The store will also offer a range of beauty and fashion accessories under the newu private label, besides exclusive brands like the Aromatara skin care range, Rasasi and Ajmal fragrances and Iha soaps."

49. Biggies to battle out in beverage market – March 15

Last summer wasn’t too hot. But this summer, things will change. Cola biggies PepsiCo India and Coca-Cola India, are all set to battle it out in the Rs 7500-cr domestic beverage market.

Dabur too is ready with its portfolio of packaged fruit juices under brand names Real and Activ.

Similarly, Hindustan Unilever (HUL) is ready with the Kwality Wall’s ice cream range, while The Gujarat Cooperative Milk Marketing Federation (GCMMF), which is the market leader in this category, is counting on the scorching months ahead to unleash its full range of ice creams, milk shakes and ready-to-drink milk products such as lassis, through its brand Amul.

But there seems to be a common strategy in this summer skirmish. This time, taste (read flavour) seems to be the flavour of the season. Coca-Cola has just launched Fanta Apple while PepsiCo is counting on Nimbooz, a lemon juice that it launched recently.

It’s a similar story in the Dabur camp too. Says Dabur India GM-marketing (foods), K K Chutani: "While last year, our focus has been on educating the consumer about the difference between a fruit juice and a fruit drink, and how fruit juices are the healthier option, this year our communication would talk about the various flavours under Real and the innumerable options that consumers can create using each variant."

Incidentally, summer accounts for nearly 30% of Dabur’s fruit juice sales.

This is important since industry experts believe that the trend in the beverages segment is slowly moving away from carbonated soft drinks. But Punita Lal, executive director-marketing, PepsiCo India begs to differ.

"Carbonated soft drinks are still the engines of growth for us. Of course, the consumer is talking more health though it doesn’t necessarily translate into his or her walking the talk," she says with a smile.

But nonetheless, according to Lal, a major chunk of PepsiCo’s investment will flow into its juice (Tropicana) business this year. Lal says that this is due to the requirement of additional technological support that categories such as juices require.

According to industry estimates, the packaged fruit juice market is today worth around Rs 500-600 cr, and is growing at strong double digits. The fruit drink market, on the other hand, is much larger, at around Rs 1300 cr.

And Rasna, which is a dominant player in this category, has some smart plans up its sleeve this summer. Says Piruz Khambatta, CMD, Rasna: "This summer we will be targeting the rural customer with a very affordable Rs 1 pack. We are also focussing on fruit-based powders and new flavours this season."

And summer, every year offers an opportunity for companies such as Rasna to tap the potential of the domestic beverages segment because according to various independent industry reports, Indian consumers drink 120 billion litres of beverages out of which only 4% are ready to drink packaged ones.

But it’s not only beverages that reap the benefits of summer. Summer is also the season for the Rs 2000-cr ice cream industry. And this season the country’s largest brands, Amul and Kwality Wall’s, are all geared up for the show.

Kwality Wall’s has launched two new flavours, Blackforest Flirt and Strawberry Tease Cake under its Cornetto brand and another two flavours, Jelly Burst and Crunchy Choco Dip, under its Paddlepop brand.

Says a Kwality Wall’s spokesperson: "Our strategy is to increase the frequency of consumption of ice creams. We focus most of our distribution and marketing efforts on key consumer markets (top 20 cities, which account for 70% of the total ice cream market in India). We follow a 2-pronged strategy for driving ice cream eating in terms of: Targeting need states and building ice cream consumption rituals and building accessibility and visibility."

And competitor Amul is also ready with 4-5 new ice cream flavours, though Jayen Mehta, GM, planning & marketing, GCMMF says that its strategies have already been chalked out during the winter months.

"This helps us to assess the market and ramp up capacity," says Mehta.

Coming back to summer, he mentions that critical price points (Rs 99 and Rs 125 for 2 litre packs) is one factor that his company his working on, along with lassis. "We will be strongly promoting lassis this year," he adds.

50. Unilever CEO looking at India for growth tips – March 15

For Polman, 52, the first “outsider” to the firm to take charge at Unilever in almost a century, it was his first interaction with the Indian media after becoming the CEO.
The Dutchman is putting that courage to good use in Unilever. “Recession can’t be an excuse for business to go down. Rather, the crisis gives me an opportunity to set the bar higher.” Polman added that he expected the tough economic environment to continue for at least 18-24 months.
Terming himself a “realistic optimist”, Polman, here on a two-day trip, spoke of taking the learning and innovations from India to Unilever’s other markets, as the company prepared to beat the downturn. India, he said, was leading the global markets with innovations in Fair & Lovely and the Ponds skin lightening categories. The market here was also being used to develop the Pureit home water purifier system.
“We will develop the Pureit brand here and then expand it globally. I see great potential for the country to develop tea brands here as well,” said Polman, while stressing on the company’s mantra: “We need bigger, better innovations faster.”
He said he was struck by the optimism in this country. “When I told my Indian executives that we have to double our business growth, no one in the room looked at me in disbelief.” Heartening, as the Anglo-Dutch giant depends on emerging markets for almost half its worldwide sales. The Indian optimism, he said, also made him “energised enough to think that Unilever was in a much better situation to face this recession than at any time in the history of this company.”
The deeper understanding of consumers at the bottom of the pyramid in countries such as India was helping the company face the global slowdown, when consumers were looking for better value and not only price, he said.
Acknowledging that downtrading was happening mostly in the premium segment, Polman said Unilever’s presence across all price points put it in a unique position to face such situations. “If we have Surf Excel at the premium segment, we also have a Wheel at the bottom end. That helps.”
Just three months into the job, the Dutchman, who said he had learnt valuable lessons, including at Procter & Gamble, where he spent 26 years, said several steps had already been taken to make the company fit for the hard times, with the aim of reigniting volume growth while protecting the group’s cash flow and margin.
“We have to learn to drive the car fast even while the engine is being changed,” he said.
The steps include a management pay freeze and a deep cut in travel budgets; reducing the manpower from 206,000 at the end of 2005 to around 170,000 at the end of 2008; fixing the fixed components of salary and increasing the variable pay; accelerating cost savings through appointment of a global procurement officer; and scrapping sales and margin targets set by his predecessor.
Example:
To save on costs, the company is planning simultaneous global launches in 30 or more countries. For instance, “one of its latest, Axe Dark Temptation, a chocolate deodorant, was launched in 52 markets at the same time,” he said.
Polman’s optimism on India has a basis. Hindustan Unilever recorded a net sales increase of 17 per cent for the December 2008 quarter. “Value growth in Indian markets is robust and we will look at our volumes’ growth also becoming stronger in the second half of 2009,” said Nitin Paranjpe, CEO of HUL.

 
51. Tata Tea: Desperately seeking a health & wellness platform – March 24

Tata Tea Executive Director Sangeeta Talwar calls it a defining moment in her company’s history and something that is all about “disruptive innovation”. There are many reasons why her colleagues and she at India’s second-largest branded tea company (Tata Tea says it is the largest by volumes) are so excited by the foray into India’s fledgling non-carbonated drinks market.

First, T!ON, a tea- and fruit-based cold beverage that was launched on Friday, marks the company’s entry into a Rs 4,000 crore segment that is growing at 35 to 40 per cent annually. That’s a substantial growth compared to the relatively modest 10 to 12 per cent growth of the carbonated drinks (mainly cola) market.
Second, it is the first— though modest — step towards making up for the loss of its stake in Energy Brands of the US, owners of the Glaceau beverage brand, which could have powered its growth in the $5 billion global market for vitamin-enriched or health beverages. Tata Tea already had a market leader in Tetley in the UK and Canada, but was not yet a force to reckon within the US.
Third, the beverages market size is almost double that of branded tea, in which Tata Tea currently operates. Tea contributed close to 80 per cent of the Rs 4,366 crore company’s sales in the last financial year and the company is conscious of the warning signals. Said Nikhil Vora, partner at brokerage firm SSKI, “The global black tea market growth is almost stagnant. Even in India the black tea market is growing in single digits, whereas the market for specialty and herbal teas is growing in double digits.”
Fourth, T!ON is yet another step by Tata Tea to transform itself from a tea giant to a beverage company focusing on the health and wellness platform. All its multinational competitors have already jumped onto that bandwagon.
Analysts said the foray into the non-carbonated segment would not be smooth. In the cold tea segment alone, Nestle’s Nestea is already an established player with a huge market share. But Talwar said T!ON’s positioning goes beyond that of cold tea, as its ingredients include fruit, ginseng, a stress reliever, besides tea. She acknowledged that the company “has a lot of learning to do, as we are creating a new market here for the product.”
Although some competitors like Ramesh Chauhan, chairman of Parle Bisleri, said Tata Tea was creating a niche market since there were no packaged cold tea beverages available, others think the organised non-carbonated drinks market is already crowded and is seeing a lot of innovation. Earlier this year, cola giants PepsiCo and Parle Agro, makers of Frooti and Appy, announced the launch of packaged nimbu pani.
Phiruz Khambatta, chairman and managing director, Rasna International, pointed out it is mango-based drinks like Frooti, Maaza and Slice that dominate this market, followed by orange-based drinks like Minute Maid and Tropicana. Other fruit-based drinks like apple, guava and others come much later.
While T!ON’s success is yet to be seen, Tata Tea has been firmly on course to being a brand-centric beverage company for some time now. It has in the past made acquisitions like Tetley, Good Earth (herbal, medicinal and traditional teas), Eight O’ Clock Coffee and Himalayan Water to diversify its range.
The last acquisition was critical, as India’s packaged drinking water market is growing at 25 per cent a year, and Tata Tea might position the brand similar to Danone’s Evian on a health platform.
While the company is doing much better in the home market, gaining market share and giving Unilever a run for its money, the overseas market has been a cause for worry, leading to a fall in the operating profit margin of over 100 basis points to 16.2 per cent , on revenues that grew at 8.6 per cent in March 2008.
The company has not been able to grow in the US, where its equity is not as strong as it was in Canada or the UK, where it has a 30 per cent market share. It will eliminate large chunks of operations in the US to save costs. Analysts said it’s just a matter of time before Tata Tea acquires a health and wellness brand in the US. That’s the only way out. So, watch this space.
 

52. Dabur puts wellness chain on the block – March 20

Dabur India has put its wellness retail chain ‘new-u’ on the block, just two years after announcing its launch in March 2007. The Delhi-based FMCG company has mandated Grant Thornton to get a buyer for its retail venture, people familiar with the matter said. They said Dabur has lost interest in the chain as the economic downturn has made the environment tough for the company to pursue its retail plans.

The venture had a struggling existence marked by slow growth — there are just 11 ‘new-u’ stores — and exits of CEO Peter Baker and merchandise head Graham Fraser a couple of months ago. A Dabur spokesman denied any plans to sell the chain. “In fact, we plan to set up 12 additional stores this year.”

A person familiar with Dabur’s plans, however, said, “It makes no sense for Dabur to throw money at a business unlikely to return profits anytime soon.” The person, however, refused to share details like the losses being made by the chain and the price expected from its sale.

Dabur had announced in March 2007 that it would invest Rs 140 crore by 2010 to set up a chain of health and beauty stores, providing international quality environment and product range. Saying that retail was the “next big focus area” for Dabur, company chairman V C Burman had then said it expected to set up 350 stores (ranging from 1,500 sq ft to 6,000 sq ft in size) in the first five years and take the tally to 1,000 by tenth year of operation.

At present, the chain is without a CEO and is managed by two regional heads. A regional head based in Delhi takes care of stores in NCR, while his southern counterpart oversees operations in Hyderabad and Bangalore.

The economic downturn has brought significant pain for modern retailers in India, forcing them to delay or scale back operations. Most retailers have been struggling with lower sales, higher inventory levels and significant pressure on margins.

Many potential entrants such as real estate company Parsvnath Developers have put on hold their retail plans, while some of those with full-fledged presence such as Subhiksha are facing bankruptcy. Retailers with lesser number of stores face higher risk because their lack of scale hits their ability to bargain hard in procuring products.

53. Emami unveils a common signature tune for promotional activities – March 19

Personal care products maker Emami on Thursday unveiled a common signature tune to go along with promotional activities of all its brands in the electronic and broadcast media.

Starting April 2009, all forthcoming television commercials of the company will play the company’s sign-off tune which it used to play years ago. The move is part of the group’s corporate plan to further enhance the company’s growing corporate and brand identity.

Elaborating on the need to introduce the signature tune again, Emami group of companies director Aditya V Agarwal said: "The company has more than 25 brands under its umbrella, but all of them are not power brands. Since the brand equity of our lesser known brands was getting lost, the sign-off tune will help the smaller brands to ride on the huge acceptance and popularity of our power brands."

"Apart from facilitating our smaller brands in bonding more closely with its famous cousins, the move will also help these brands to bond with the mother brand — Emami and thus, enhance their respective brand equity further," Mr Agarwal added.

Emami officials too feel that the sign-off tune will ensure a greater acceptance of all its products in the market, regardless of its popularity. Incidentally, this effort is the group’s second initiative in furthering the corporate image, after the change of the company’s logo a couple of years back.

A Rs 2,000 crore diversified group, Emami has interests in FMCG sector, newsprint, healthcare, edible oil, bio-diesel, realty, contemporary art and retail chain with Frank Ross and Starmark in its fold. It owns power brands like Boroplus, Navratna, Fair and Handsome, Sona Chandi Chyawanprash, Mentho Plus, Himani Fast Relief as well as the entire range of Zandu Pharmaceutical products.

56. Foreign investors in real estate locked for 3 years – March 25

Foreign investors in Indian real estate cannot sell their stakes to another foreign investor before three years, the Foreign Investment Promotion Board (FIPB), the body that clears such proposals, has said.

With this, FIPB has overruled a provision in FDI policy that exempts foreign players from the rule in cases where fund transfer is from one non-resident to another. Till now, this three-year lock-in was applicable only on foreign investment in real estate and not on investors.

The FIPB view is contrary to the stand taken by the department of industrial policy and promotion (Dipp), the nodal agency that formulates FDI rules in the country. Dipp’s view is that a foreign investor can repatriate funds if it offloads its stake to another foreign investor as the actual investment in a project would remain intact and only its ownership would change.

"Though Press Note 2 of 2005 has an enabling clause to permit sale of investment between two non-residents before the end of lock in, it has not been allowed so far,” an official in the commerce & industry ministry said.

The issue came up in the last FIPB meeting, when the board took up private equity fund 2I Capital’s request to sell its investment in Delhi-based real estate firm Uppal Housing to Mauritius-based fund ICP Investments.

The company had sought approval for transferring 1.9 crore shares in the Indian real estate company to the Mauritian company. According to the company’s proposal, the fund transfer involved no repatriation of funds but physical transfer of shares from one investor to another.

Though Dipp had recommended giving permission for sale of 2I Capital’s shares to ICP Investments, FIPB rejected it. Dipp argued the sale of shares was permissible between two non-residents within the lock-in period , but FIPB rejected it.
 

57. DLF to open four new malls before Diwali – March 24

DLF, the country's largest realty firm, today said that it would open four new shopping malls in the Delhi-NCR region before Diwali (mid-October) this year and is expecting a lower rent in its new malls than existing levels.
"We have currently eight malls operating across India and we are now launching four new malls in Delhi-NCR before Diwali this year. Although occupancy in the new malls would be slow initially, we expect it to reach 100 per cent later," DLF Retail Developers Managing Director Arvind Nair told reporters on the sidelines of a CII conference here.
DLF Retail Developers, which is a subsidiary of DLF, constructs shopping malls. The company follows both sale and lease model for its retail space.
Nair, however, did not reveal the investment figures for the new malls or total retail space that would be constructed.
He said that most of the space in the new malls have already been rented out.
"Although there has been some impact on rentals due to the downturn, we have not resorted to any renegotiations in our operational properties. However, rents on an average would be lower in our new malls as compared to existing ones," he said.
Terming footfalls as normal, Nair said developers are focussed on prioritising to avoid the slowdown. "Therefore, we have put our focus mostly on the metro cities," he added.

58. Now, DLF homes for the ‘aam aadmi’ – March 18

An economic recession sometimes has its advantages like pushing luxury realty developers to make houses for the middle class.

Well, DLF, India's largest real estate company is looking to set up a residential complex in West Delhi with a very aggressive pricing.
The complex will be set up in the Swatantra Bharat Mills compound, a property that DLF bought from DCM Shriram in 2007 for Rs 1,675 crore. The developer plans to attach a competitive price tag of Rs 7,000 per square feet—a price that may spur a price war in the capital as a minimum area for a two-bedroom hall kitchen is about 1,200 square feet.
Anuj Puri, MD of Jones Lang LaSalle Meghraj, said, “The country's largest developer launching a project in this kind of a market will definitely help revive sentiments. The fact that the project is being launched at quite an affordable price will attract lot of consumer interest.”

This is expected to be compared with Emaar MGF's Commonwealth Games Village project, which has priced flats at nearly double than that of DLF's at Rs 12,750 a square feet.

However, real estate experts say that an aggressive pricing by a leading developer might force other realtors to reduce rates.
It looks like finally DLF is targeting middle class people, who always save and hardly spend. But survival in a depressed market, where access to funds is getting increasingly difficult, is also another reason for big developers to lower prices and construct affordable houses.

59. Rural markets provide solace to FMCG companies – March 25

In the cyberspace, Savita Bhabhi has successfully managed to attract eyeballs. Offline, it could soon be Sangeeta Bhabhi. To be sure, Sangeeta Bhabhi is no relation to her infamous online character, but an icon created by consumer goods major Procter & Gamble to hardsell its stuff in rural India.

After a two year long push into the hinterland, P&G has come up with a new addition to its marketing strategy in the form of a character called Sangeeta Bhabhi, a dedicated housewife. The personality was conceived to push P&G’s leading brands, Tide and Head & Shoulders as a dual proposition called ‘kamyab jodi’ in rural areas of the country. After much deliberation over the eight to nine categories that P&G operates in, marketers picked the detergent brand Tide and shampoo Head & Shoulders as the focus in this particular rural initiative.

Last March, more than 100 villages in central UP were covered as part of the pilot stage of the ‘kamyab jodi’ initiative. The exercise involved teams narrating Sangeeta Bhabhi’s story, an educated married woman, who highlights the benefits of using the two brands. Sandeep Bansal, country head - Xpanse, the agency handling the particular rural activation, says the particular style was used to communicate the value add proposition of the brands. “Tide is a value added brand priced higher than the regular brands. The challenge was to communicate it to the target audience on the benefits of using a brand superior in quality,” explains Bansal.

Considering that the rural markets has been a battle field with national players like HUL, Dabur and even regional players like Ghari looking to penetrate further, P&G has its task cut out. When contacted, Sumeet Vohra, marketing director, P&G India says that the company’s endeavour has always been to not only improve lives but also continue to touch as many more lives as possible. “Ours is a consumption driven economy and we are cognisant of the importance of the growing rural segment in that context,” says Vohra, adding P&G is constantly evaluating growth opportunities not just in this segment, but across India and will use the right brand portfolio and marketing techniques to do so. The move underscores the point that rural market is important considering rural India comprises 12.2 % of the world population.

Through this initiative, P&G is attempting to generate user trials for both SKU pack size as well as satchets. While Vohra refused to comment on future plans citing company policy, it is understood that after studying the initial response to the pilot programme, the company is planning to roll the initiative further to cover nearly 5,000 villages across the state of UP. Also, to ride on the demand generated from this exercise, P&G is simultaneously beefing up its distribution network to ensure reach and availability of the products. But P&G’s rural march takes on established rivals like Hindustan Unilever that has over the years added to its rural distribution muscle through dedicated programmes like Project Shakti.

Similarly, cigarette major ITC through its echoupal network has been able to create a network to further its FMCG ambition by pushing brands like Superia soaps and shampoos in smaller SKU pack-sizes. Anand Shah, FMCG analyst from Angel Broking says P&G has been a late entrant in the Indian market and it’s only in the last two years that the company is looking to probe further. “The company is playing catch up given that rural markets for categories like shampoos has been a huge growth driver,” says Shah. Surely, P&G’s hoping Sangeeta Bhabhi will tide over the competition. And also keep her head firmly over her shoulders.

 
60. Microsoft to launch specialty retail stores – March 31

"If it didn't work the first time, go back to basics," at first it might seem that software giant Microsoft has got nothing to do with this saying; a recent event has changed perspectives in a big way.

For the uninformed, the Seattle-based company is all set to unleash a concept that brings it back to the basic 'brick and mortar' model. Soon, Microsoft will launch its very own specialty retail stores across America that will deal exclusively in Microsoft's product portfolio and which will soon also head to developing economies like India and China.

For the purpose, Microsoft has hired David Porter as the corporate vice-president for this new experiment. Porter has been proclaimed a wise choice, as he brings twenty five years worth of experience with none other than the retail giant WalMart.

These stores, known as 'Gurus', will sell almost all Microsoft products including the Windows series software, Xbox and compatible games. There will be a plethora of Microsoft branded products under one roof and the company plans to bring in more branded merchandise in its purlieu.

Analysts see this as a strategy to increase customer touch points and have a branding platform to revitalise the sagging Microsoft brand. The dissatisfactory performance of Vista has been a cause of concern for the software giant and the new retail stores may be used to revitalise this platform.

Apparently, the company now feels that consumer association can be accessed only through personalised solutions via a brand specific conduit. Microsoft has been constantly working towards making its brand more effective. The company has lately been working with hardware partners to check flaws in the Windows platform and ways to improve performance.

According to Brad Brooks, corporate vice-president, Window consumer product marketing, "We want to know how customers' experience not only products, but the company itself… we did our own studies to evaluate not only how our products work for the average person, but how our business works for them."

These stores not only offer the consumer a full range of product portfolio but also guarantee a holistic customer involvement. "Customers have told us they want Microsoft to play a more active role in their technology experiences," adds Brooks.

Additionally, other brand extensions or non-related items can also be used to utilise the full potential of this concept. Also, there is much heartburn in the Microsoft camp over the lead taken by Apple in its brand promotion through a catchy product line-up and zingy branding exercises.

According to some estimates, Apple stores are highly profitable and have in fact promoted 'brand Apple' better than any other exercise in Apple's history. Even if Microsoft does not need much direct marketing in its primary business, i.e software, the brand was suffering from the 'long in the tooth syndrome'.

"We must deliver a world-class shopping experience that aligns with the brand promise and our online presence," says Bill Veghte, senior vice-president, Windows Business Group, Microsoft.

27Shopping experience indeed. But with what? Zune, Windows 7 and Xbox? Or would it be with special movie screenings on the making of Bill Gates or Steve Balmer? Yes, they can provide servicing of computers running Microsoft software, but that's not an easy proposition, thanks to the compatibility issues that Microsoft software faces with different softwares.

If they sell products of a few windows PC makers, they could end up alienating the others. Considering these factors, one wonders how they justify the real estate space and the costs involved.

Moreover, other partner retailers of Microsoft are hardly amused, as they would have to compete with the 'mother ship' now. Rather than being an act of exceptional genius, this seems to be an inexcusable strategic blunder on the part of the company as of now.

69. TVS Motor Company partners Coca Cola India – March 12

TVS Motor company has joined hands with Coca-cola India in an innovative cross-category tie-up to co-partner the Coca-cola novel Thunder Wheels initiative.

Through this, consumers stand a chance to win an Apache RTR 160 motorcycle. In fact, this is the first time TVS is associating the Apache brand in a cross-category marketing initiative at the national level.

Thunder Wheels will be supported by an all new advertisement, which will soon go on air.
``We chose to partner this initiative as the Thunder Wheels concept is unique and more importantly because both Apache RTR and Thums Up share clear brand fit with respect to the audience they address. Both brands exhilarate youngsters who live by the virtues of masculinity, thirst for high adrenaline and have a want it; will get it, attitude,`` said H S Goindi, president- marketing, TVS Motor Company.
All a consumer needs to do is purchase a bottle of Thums up and SMS APACHE followed by the 9 digit unique code that is printed under the crown to 58558 from their mobile phones. Additionally consumers also have the option to Call 186 0233 0233 and register their code through an Interactive Voice Response System (IVRS). Winners are chosen by way of a computer generated lucky draw.
The Thums Up Thunder Wheels initiative is applicable allover in India and is open till Apr. 30, 2009.
Shares of T V S Motor Company closed up Rs 1.05, or 5.28%, at Rs 20.95. The total volume of shares traded at the BSE was 2,990,658 (Thursday).

70. Mahindra eyes full pie in 2-wheeler biz – March 25

To take on Hero Honda, Bajaj Auto, Honda Motorcycles and Scooters India.
Almost a year after India’s premier tractor and utility vehicles maker, Mahindra & Mahindra (M&M), announced the acquisition of Kinetic Motors, it has put up a blueprint to enter every key segment of the two-wheeler market.
The Mumbai-based company will take on Hero Honda, Bajaj Auto and Honda Motorcycles and Scooters India (HMSI) and will have models in the 100cc, 125cc and 150cc mobike segments, and also in the ungeared low and high-powered scooter segments.
Hero Honda has a 60 per cent share of the motorcycle segment, while HMSI commands 58 per cent of the scooter market.
At a press conference, Anand Mahindra, vice-chairman and managing director, M&M, said: “Our two-wheeler project is complete; we have already begun marketing the fleet in Bangalore.” When asked what two-wheeler products will roll out, Mahindra replied, “You’ll be able to see it soon.”
The company is planning to leverage the research and development (R&D) strength of Engines Engineering Srl, an Italian engine and design company it bought last year. The company specialises in developing small yet powerful and fuel-efficient engines for motorcycles. The idea is to establish M&M in the two-wheeler segment through transfer of technical knowhow.
In addition, SYM, the Taiwanese two-wheeler company, which has agreed to extend its tie-up to M&M after the Kinetic takeover, will also help provide technology, perhaps more for the gearless scooters segment.
“Our ultimate goal is to be in every segment of the two-wheeler industry and this will be achieved through the strong R&D support M&M currently has. We want to be in the big engine segment of motorcycles, as well as in the smaller entry-level scooters”, said a source from Mahindra Two Wheelers.
The company is reportedly developing a 650cc-750cc petrol-fired engine with the help of the Italian company. However, it has refused to give details.
M&M currently sells only a gearless scooter called Flyte. This product, originally built by SYM, has been altered by M&M to suit the Indian consumer. Its sales have more than doubled after the Kinetic takeover. M&M currently sells 3,500-4,500 units of the scooter a month, as against the 1,500-2,000 units sold earlier. According to sources, demand for the scooter has been growing 50-70 per cent every month, mainly on account of improved marketing techniques.
Freshly developed products by the company may see co-branding of Mahindra Kinetic, as both companies enjoy a strong brand value.
M&M had earlier bought the business assets of the then loss-making Kinetic Motor Co, run by the Pune-based Firodia family, for Rs 110 crore. M&M holds 80 per cent in the new entity, while the balance is held by Kinetic.

71. Bajaj to roll out KTM bike by May – March 9

The country’s second-largest two-wheeler maker Bajaj Auto is expected to roll out the first of its KTM bikes in India to coincide with the festive season this year.
According to company officials, KTM bikes, initially launched as completely knocked down (CKD) kits , will happen by the second half of the next fiscal. However, for Bajaj Auto, excitement with the niche high-end bikes will begin in mid-May, when the Kawasaki Ninja 250R is expected to hit the roads. Its price tag is expected to be in the range of Rs 2.5-3 lakh, company officials said.

Bajaj Auto MD Rajiv Bajaj has been quoted as saying that the Kawasaki Ninja 250R would come in as a CBU product, priced at over Rs 2 lakh. Meanwhile, the automotive major is rolling out its latest offering, the XCD 135 cc DTS-Si bike, which is available with drum brakes.

Vikalp Kapoor, regional manager, two-wheeler sales, Maharashtra, said the bike, fitted with disc brakes, will come into the market by the weekend. It is priced at Rs 47,000, ex showroom Pune. The entry-level XCD 135cc bike is priced just Rs 2,000 more than the XCD 125 cc, at Rs 43,000.

Bajaj Auto’s move to strengthen its position in the value segment will see the launch of two bikes over the next 4-5 months, starting with a 125 cc bike by March-April and another by May-June.

72. New Activa packs more for your money

More mileage
Leading two-wheeler manufacturer Honda Motorcycle and Scooter India has launched a new model of its scooter "Activa" that boasts of an improved mileage among other features.

73. Ozone Ayurvedics to turn Nomarks into Rs 100-cr-plus brand

Ozone Ayurvedics, which is part of the Delhi-based Rs 120-crore Ozone Group of companies, aims to turn its flagship brand Nomarks into a Rs 100-crore-plus brand within 2009-10. The company is anticipating a three-fold increase in Nomarks sales in the next fiscal, buoyed by an aggressive advertising campaign and the launch of its new organic extracts enriched skincare range.

"As a group, we are targeting a Rs 200 crore-plus turnover in 2009-10. We have a Rs 20-crore ad budget for 2009-10 with Kiran Bedi advocating the Nomarks brand. After the success of Nomarks in the anti-marks skincare segment with a share of 34% in its category, this foray into the organic actives enriched formulations is a big opportunity to up market share further," said Ozone Group chairman and MD SC Sehgal.

He was speaking in Kolkata on Wednesday at the launch of the Nomarks cosmeceutical range, with three new specialised product ranges for different skin types and age groups.

The company, which has a subsidiary in the UK, is also looking at expanding operations to Dubai and UAE. "We are open to setting up a production facility in the UAE. We are looking to promote Nomarks and Ayurvedic products in other countries too, especially in Europe," said Mr Sehgal. Right now, exports count for Rs 10 crore.

According to Mr Sehgal, the company is also going to start organic farming as part of a Rs 100-crore 60-acre health village in the North-East. "The project will happen in phases and will have organic restaurants, rejuvenation therapy, holistic health management, and even health tourism," said Mr Sehgal. He added that the company is soon expecting USDA approval for its organic herbal extracts.

The Ozone Group comprises two companies - Ozone Pharmaceuticals Ltd and Ozone Ayurvedics.

74. Schwarzkopf Professional Ties Up With The Femina Miss India Pageant – March 31

In keeping with its fashionable image, Schwarzkopf Professional tied up with Femina as the Official Hair Color & Styling Partner for the Femina Miss Indian Pageant. The top-notch stylist from Schwarzkopf Professional conducted an exclusive & rigorous hair- consultation & self styling session for the 22 finalists of the Femina Miss India contest at their Mumbai ASK Academy today.

The hair consultation session was spearheaded by Najeeb Ur Rehman, National Technical Manager, Schwarzkopf Professional who was also appointed as the Chief Color & Styling Consultant for the Femina Miss India pageant .Najeeb Ur Rehman has carved a niche for himself in the hair industry and is undoubtedly one of the most loved trainers. He is also an absolute pro in the hair realm & specializes in creative and corrective hair coloring, cutting & texturizing. Along with his well-trained and experienced team he set out to help the finalists of the contest understand their hair and hair-needs better. The team worked on crafting looks that specifically suited the contestants so they could put their best foot forward in the contests that are to ensue to win the coveted and prestigious beauty title.

Najeeb observed that “Hair fashion has certainly leap frogged into a completely haute dimension today and it gives me great pride to be the Chief Color & Styling Consultant for the Femina Miss India pageant from Schwarzkopf Professional. It is certainly a challenge to craft individualistic looks for each of the contestants as we have to take their skin tone , eye color , face shape and personality into consideration before giving them a look that gives them an edge at the contest and we are completely up to acing this challenge.”

Speaking on this occasion, Murali Sundar, Country Manager, Schwarzkopf Professional added – “Being a very hip, trendy and futuristic brand, we at Schwarzkopf Professional are extremely happy to help craft looks for the finalists of this prestigious contest. Gorgeous hair can easily set a person apart and help be the deciding factor when it comes to judging ones beauty and our stylists from Schwarzkopf Professional aim at creating that individual look that helps bring out the contestants most glamorous and stunning facet. Being responsible to create the hairstyles for THE it-face of the country is a privilege of the few and we are proud to be among them!”

Also present at the occasion to give the girls tips on mane-care, styling and to encourage them was celebrity-hairstylists Coleen Khan from Coleen’s Hair & Beauty Salon. Having styled the mane of many celebrities she provided valuable tips to the girls on good mane-grooming and upkeep to best bring out the inner-star in them.

Expressing her excitement at being involved in the event, Coleen Khan shared her thoughts. – “Beauty pageant coaching helps one excel in pageants and walk through the various competitive rounds with élan and ease. I am glad to be a part of such a coaching session organized by Schwarzkopf Professional as this gives me an opportunity to interact with the deserving contestants and share with them my innate understanding of good hair-grooming and the lengths that good colors and mane care can take aspiring stars forward.”

On the whole, the consultation session was very fruitful and unveiled many of mane-care’s best kept secrets to the fashionistas who were lucky enough to get an audience with some of India’s best hair-stylists. The sojourn however does not end here and will continue with Schwarzkopf Professional’s stylists providing the styling and coloring services for the official unveiling, the portfolio shoots, the sub-contests and the Grand finale.

Najeeb will style the hair-looks for Super Model Jaqueline Fernandes who has been roped in by Femina to unveil the much loved crown. For the Unveiling and the Sub-contests Schwarzkopf Professional will be doing the session-styling and the looks for all 22 models. They will create 3 distinct styles for each of the 22 contestants for their Portfolio shoot that will happen over a span of 3 days. The 3 looks will be created to suit the following apparels: Indian sari, western wear and swim wear. Come Grand Finale the stylists from Schwarzkopf Professional will again craft 3 different hair-looks and do the styling for all the finalists. Post the event the winners of the competition will get a chance to train under the tutelage of Schwarzkopf Professional’s top technicians on ‘Self- hair styling’ for their respective International pageants.

75. CavinKare eyes 4% of skincare market – March 21

CavinKare Ltd, the fast-moving consumer goods (FMCG) major, is eyeing a 4% share in the Rs 1,500 crore domestic skincare market, which is growing at 14% annually.
The company launched Fairever Fruit, a new variant of its Fairever fairness cream, in the national market on Friday.
Ramesh Vishwanathan, executive director, CavinKare, said, "Within four months of Fairever Fruit's launch in south India, we have gained 2% market share in the skincare segment. Our aim is to bag a share of 4% by next year." CavinKare will invest Rs 10-14 crore to market Fairever Fruit.
A television commercial starring actress Asin and made by ad agency Grey Worldwide India, will launch next month.
Last month, CavinKare forged a strategic alliance with international fragrance marketer Coty Inc to market the Adidas brand of deodorants in India.
The company presently has the Spinz range of deodorants and in another three months, will market and sell the Jovan Musk brand in the country. CavinKare hopes to corner a 10% share of the deodorant market.
The company is also extending its food offerings -- the Ruchi and Chinni brands of pickles and snacks -- and its Maa fruit drinks to the national market. It has already established the brands in south and east markets.
After its Rs 30 crore acquisition of a dairy unit in Kanchipuram near
Chennai, it is finalising a deal with another unit in Tamil Nadu.
CavinKare is looking to acquire more dairies in the south first and across the country later.
"The dairy business will be a large contributor to our revenues as it is a high-consumption product. We are aiming at a Rs 1,000 crore business from our dairy segment in another five years," Vishwanathan said.
CavinKare has already launched its own milk products and will soon roll out flavoured milk and curd products.
Rural sales contribute 23% to its total sales. Organised retail stores, which account for just 5% of sales, have been experienced a slowdown in the last 3-4 months.
However, the company is looking to take its presence to 15,000 retail stores this year.

76. Apparel retail companies are busy dressing up customers – March 15

Their cash registers are ringing. Though summer is a time for dressing down, apparel retail companies are busy dressing up customers, especially women.

Summer clothing constitutes 45% of the market share, while the rest is winter. Companies such as Puma, Lacoste and Pantaloon are all engaging in different advertising strategies and focusing mainly on women’s wear collections this year.

For Puma India, summer sales contribute about 40% to the annual sales. Slowdown, however, has no impact on the company’s pricing structure. "Prices have in fact gone up by 5-10% as compared to last year," says Rajeev Mehta, MD of Puma India.

A major change over the last year will be on the marketing and advertising front. Puma this year is going for targeted online marketing. "We are creating a buzz around our products on websites such as Facebook, google, yahoo etc as majority of our customers are young and internet savvy. We also will have huge billboards with energetic pictures targeting women," adds Mehta.

Lacoste, too, is considering billboard advertising around the stores. "This summer we would use outdoor advertising to present our spring summer collection to the discerning customer. The use of outdoor is to focus on the shopper who is out in the market and building product imagery around the boutiques that are the physical manifestation of the luxurious space that the brand operates in," says Vikas Gupta, CEO, Lacoste India.

For Lacoste, summer sales contribute about 45% to the business. This is not going to be price driven. The entire focus, according to Vikas Gupta, MD of Lacoste, is going to be bring about that additional romance with the offering and experience.

"The business is looking at growing at about 20% YoY. We would focus on consolidating the brand offering across point of sales with the new collection launches across clothing, footwear, leather goods and accessories," adds Gupta.

Another trend that is emerging is an increased focus on women wear. "We are focusing on women wear this year. Our women fitness category is a casual wear collection. Swimwear for women is another area we have channeled our energies on," says Mehta of Puma India.

According to a report published late last year by RNCOS, a leading market research and information analysis company, the women’s wear market is increasing at a CAGR of over 17% and is expected to cross Rs 61,000 crore by 2010.

Pantaloon, owned by the Future Group, has recently launched its summer spring collection. The collection, called the Femina Miss India collection is targeted at fashion conscious young women and is available at an affordable pricing.

"We have been growing almost 30% on a YoY basis. Summer sales contribute to about 35-40% of our overall sales and we are optimistic that this will continue this year as well," says Kishore Biyani, MD, Pantaloon Retail.

Kidswear has also been going great. Slowdown has not impacted the buying sentiments of customers as the business has been growing. "We do 45% of our business during summer. We are planning to open 75 new stores this year. A lot of sentimental buying goes on in our stores and there is no way of cutting that down. We have increased focus on the design element of our clothing to ensure that the customer is lured to spend," says Sanjeev Narula, MD, Lilliput Kidswear.

77. Greg Norman unveils Spring-Summer 2009 collection

Greg Norman Collection, a leading marketer of golf-inspired sportswear for men and women, has unveiled the Global Spring Summer 2009 collection in the Indian market. The collection is launched in three ranges — Ultimate playdry pique pro Polo, Fine Stripe Polo and Classic Polo, according to a company press release.

Priced in between ranges of Rs 550 and Rs 2700, the collection comprises products including shirts and cap and is available at Greg Norman stores across the country, added the release.