Full Articles

01. Domestic Air Traffic Grows 10% In April

14 May, 2008

Aviation sector has registered over 10 per cent growth in the number of domestic passengers in April, when 38.92 lakh people chose air travel compared with 35.82 lakh in the same month last year.

Private carrier Jet Airways flew 8.39 lakh passengers in April, garnering the largest share of 21.6 per cent, an official release stated.

State-run Air India was at second position, carrying 5.86 lakh passengers with 15.1 per cent share. Kingfisher was next with 5.58 lakh passengers. Simplifly Deccan flew 5.30 lakh people during the month. Other carriers like Jet Lite, SpiceJet, Paramount, Go Air, IndiGo flew 3.11 lakh, 3.94 lakh, 0.48 lakh, 1.80 lakh and 4.46 lakh passengers in the month.

Air India was at the top position with over 21 per cent share in April last year. Air traffic in the country in the first three months of the current calender year had grown by 11 per cent compared to about 29 per cent in the last calender year, according to a study by the Centre for Asia Pacific Aviation.

02. All-Business Flight From Lufthansa

15 May, 2008

Lufthansa will launch an all business class flight to India as a pilot project. The flight will be launched on Pune to Germany route and back on Airbus A-319.

Upbeat on India, Lufthansa's director Werner Heesen said, "Pune airport currently can't take a big plane like A-330 or A-340. So we decided to use the 48-seater A-319 and offer all business class product. Pune is a Bangalore in the making in terms of IT prowess and high-end demand for travel to Europe is very high."

03. India Downs 14.5% More Beer In FY08

28 April, 2008

India’s beer consumption extended robust growth for the third year in a row with 14.5% volume jump in FY08. According to industry estimates, beer shipments touched 158 million cases (of 7.8 litre each) in 2007-08, up from 137 million in the previous year.

Market leader UB’s volume is estimated to have been a little over 75 million cases, growing at around 13% from FY07, giving it about 48% share of the market. Both UB and its main rival SABMiller, with around 36% share, appears to have grown in sync with the industry growth.

The volume spurt was mainly led by the key guzzlers down south, with the largest market Andhra Pradesh vaulting 15.4%, Tamil Nadu 11.6% and Karnataka 24%. Another big market, Maharashtra, however, witnessed sedate growth of 5-6%, with Mumbai city recording a minor degrowth, industry sources said.

The domestic beer volume has been on a growth curve, with changing social mores and higher disposable incomes making beer a lifestyle drink.

Among the northern markets, Rajasthan saw volume jump by 26% while Haryana appears to have grown at around 30%. However, it is believed that Delhi remained sober with 3% rise in volume depletion.

In fact, Uttar Pradesh, which saw significant changes in excise, was one of the rare exceptions reporting degrowth of nearly 7%. The eastern markets also shaped up well during the year on a smaller base though, with Orissa, West Bengal and Jharkand growing between 20-25%.

Several global brewing giants like Carlsberg, Anheuser-Busch and Inbev have entered the country recently, as India is being touted as the last potentially big beer market in the world. 

04. United Spirits To Party With Black Dog

5 May, 2008

UB Group flagship company United Spirits Limited (USL) is launching a nationwide marketing campaign for its mid-priced scotch whisky Black Dog.

As part of the celebrations of 125 years of Black Dog in India, the company is holding a 10-city concert by Stephen Kabakos, beginning in Delhi on May 8. The concert will travel to Kolkata, Guwahati, Hyderabad, Mysore, Bangalore, Goa, Pune and Mumbai, USL executive V-P (marketing) Amrit Thomas said in a release.

UB Group has captured a 10% share of the mid-priced scotch whisky segment since the launch of Black Dog 8-year-old in 2006. The company also has the 12-year-old variant of the scotch. The regular scotch market in the country is pegged at 4,00,000 cases a year, with an annual growth of 30%.

05. Car Sales Up 17.15 Pc, Bike Sales Up 8.31%

8 May, 2008

Domestic passenger car sales rose by 17.15 per cent in April 2008 to 98,740 units from 84,283 units in the same month last year.

According to the figures released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales in the country during the month was up by 8.31 per cent at 501,592 units, against 463,091 units a year ago.

Total two-wheeler sales in April also increased by 8 per cent at 616,038 units, compared to 570,381 units in the same month last year.

Commercial vehicle sales during the month increased by 7.6 per cent to 33,271 units from 30,914 units during the year-ago period, SIAM said.

Car, 2-Wheeler Sales Zoom In April

2 May, 2008

The first month of the new fiscal year cheered up the auto industry. After a year of deceleration, the two-wheeler industry moved away from the negative sales graph while passenger car sales reached an all-time high in April.

The sales growth was helped by excise duty cut, apprehensions of rising interest rates after RBI’s move to tighten monetary policy further and the impending price rise indicated by all auto firms. Excise duty on cars and bikes was reduced to 12% from 16% in the Budget.

Hero Honda Motors, which had posted a flat growth in the last fiscal selling 32.46 lakh vehicles, reported a 9% increase in sales to 2.86 lakh vehicles compared to 2.62 lakh in the corresponding month last year.

Bajaj Auto Ltd reported a 24% growth in motorcycle sales to 2.03 lakh units in April against 1.64 lakh last year. Its sales had declined 20% to 18.32 lakh units in FY08.

For TVS Motor Company, a 4.81% y-o-y sales growth to 1.09-lakh units in April 2008 was its best increase since January 2007. The company had seen major reverses and its annual sales had dipped 19% to 11.51 lakh units in FY08.

Honda Motorcycles and Scooters India saw scooter sales dip 1.73% to 48,293 units in April compared to 49,143 units in the same month last year. The company’s total sales saw an increase of 8.29% to 70,988 units in April.

Maruti Suzuki India posted a 22.37 % increase in sales to 59,539 vehicles, compared to 48,652 units in April 2007. However, sales were lower than March when it sold 64,421 cars. Hyundai Motor India saw domestic sales grow 36.7% to 21,501 vehicles. However, the increase in exports was much higher and grew 63% to 18,500 vehicles against 11,341 in previous fiscal. GM reported a 24.34% jump in sales at 5,563 vehicles.

06. Santro Launches New Intiative To Tap Rural Market

8 May, 2008

Hyundai Motor India has launched a new marketing initiative, titled 'Ghar Ghar Ki Pehchaan' for tapping rural market for its popular Santro car.

Claiming this as a first of its kind initiative, the company said it has rolled out special schemes for government employees in rural areas and members of gram panchayats on the purchase of Santro.

Launched on May 1, the 'Ghar Ghar Ki Pehchaan' scheme will continue till July 31, 2008. Through this special rural scheme HMIL plans to touch base with at least 58% of Indian villages with a population of 500 or more. HMIL senior vice-president (sales & marketing) Arvind Saxena said: "Nearly 70% of India resides in rural areas, which presents an enormous demand base and a market too huge to overlook."

Dealers will contact panchayats and conduct regular road shows, distributing pamphlets and posters to promote the scheme, and also make villagers aware about this unique initiative. It is also in talks with a financing institution with a huge branch network to extend easy financing options for the people in rural India.

According to a recent survey, almost 50% of the 220-million households in rural India are potential car buyers due to the agricultural subsidies extended by the government and also due to increase in the productivity of agri-based products.

07. 'India To Steer Light Vehicles Market'

6 May, 2008

India is poised to emerge as fourth-largest light vehicle market in the world by 2014, riding on low-cost cars, according to a survey. And, a double digit demand growth will push India ahead of countries like Germany, Russia and Brazil, it added.

Sales of light vehicles or those below 3.5-tonne GVW (gross vehicle weight) would experience a 16% compound annual growth rate till 2014 on the back of new launches, particularly in the mini car (like Tata Nano) segment, said USbased automotive market forecasting firm CSM Worldwide.

“Light vehicle sales are expected to reach 4.5 million units by 2014, making India the fourth largest market in the world. The mini car segment is likely to remain a dominant one with the launch of Nano and other low-cost cars from Renault/Nissan and Hyundai,” CSM’s global vehicle forecasts V-P Michael Robinet told TOI. He said the rise in demand for low-cost cars might also hit the two-wheeler sales. CSM also said Tata would challenge Maruti Suzuki for market leadership, when it brings $2,500 Nano.

According to CSM, India was ranked tenth in terms of light vehicle sales in 2007 which stood at 1.7 million units. While US topped the list with 16 million units, others ahead of India in 2007 included China (7 million), Japan (5 million), Germany (3.4 million ) and Italy (2.7 million).

By 2014, while India will be able to reach the fourth position, US would continue to lead with sales of 18 million light vehicles, to be followed by China with 11.5 million and Japan with 5 million units, CSM said. Pointing out the reasons for slower growth in other markets, Neeraj Bandhu from CSM South Asia said many of them are already saturated. “They will not experience the population or economic growth witnessed in India ,” Bandhu said.

A contributing factor for growth in the low-cost cars would be the lower excise duty, which is 12% compared to the 24% for larger vehicles.

“Diesel engines will gain market share as new technology is adopted to take advantage of India’s high price differential for diesel fuel,” Bandhu said.

08. Tata Motors Launches Indica V2 Xeta LPG

16 May, 2008

Tata Motors has launched the Indica V2 Xeta LPG. The Indica V2 Xeta LPG is equipped with a dual fuel (petrol and LPG) engine, which reduces CO2 emissions by about 10 per cent, while delivering excellent fuel efficiency both in the city and on highways.

The new Xeta LPG comes with a 1.2 litre multi point fuel injection system engine with two electronic control units in master-slave configuration. It generates a maximum power of 65.3 PS @ 5000 rpm with petrol and an equally peppy 62 PS @ 5000 rpm with LPG. The peak torque of 102Nm @2600 rpm ensures a smooth drive in city conditions. The engine meets BSIII emission norms, but can be upgraded to meet Euro IV norms.

The new Xeta dual-fuel LPG ensures a smooth transition between the two fuel modes, even on the move. The electronically controlled gas MPFI sequential injection system provides significant safety, performance and emission related advantages over competitive offerings.

The Xeta LPG will initially be launched in two variants -- GLE and GLS. The Xeta LPG GLE variant (which comes with AC) is priced at Rs. 3.27 lakhs (ex-showroom Delhi), while the Xeta LPG GLS variant (which comes with AC, power steering, and body colored bumpers) is priced at Rs. 3.42 lakhs (ex-showroom Delhi). The Xeta LPG variants will be available in a range of five attractive color options, at select showrooms across the country.

Tata Motors is India's largest automobile company, with revenues of $ 7.2 billion in 2006-07. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America. Tata Motors and Fiat Auto have formed an industrial joint venture in India to manufacture passenger cars, engines and transmissions for the Indian and overseas markets; the company also distributes fiat-branded cars in India.

Tata Motors’ international footprint include Tata Daewoo Commercial Vehicle Co. in South Korea; Hispano Carrocera, a bus and coach manufacturer of Spain in which the company has a 21 per cent stake; a joint venture with Marcopolo, the Brazil-based body-builder of buses and coaches; and a joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market pickup vehicles in Thailand. Tata Motors has research centres in India, the UK, and in its subsidiary and associate companies in South Korea and Spain.

09. Honda Launches 8th Generation Accord In India

13 May, 2008

Honda Siel Cars India on Tuesday announced the launch of its 8th Generation Honda Accord in India. The new Honda Accord will be available in three types - Accord 2.4, Accord 2.4 Elegance and Accord 2.4 Inspire.

The price of the vehicles start from Rs 16.49 lakh (ex-showroom Delhi) and go up to Rs 18.14 lakh.

Redesigned with larger wheel base advanced and powerful engine the length and the width of the Accord has been increased by 80 mm and 25 mm.

The heart of the Honda Accord is the advanced 2.4l i-VTEC engine that delivers a power of 180 PS which is more than the outgoing Accord.

The fuel efficiency of the car has been improved by 8% and the engine meets Euro IV emission limits.

The new Accord is E10 (10% ethanol and 90% unleaded petrol) compatible.

The Honda Accord is the only car in its segment to be equipped with a five-speed automatic transmission and manual transmission with a unique 'paddle shift' option which could be operated using F1-racing inspired paddle switches.

The chassis and body of the car have been renewed by introduction of the latest Honda technology to achieve best in class handling. Together with variable gear ratio steering the new Accord becomes quicker and more agile despite its big size.

For safety the car has 6 air bags with Advanced Compatibility Engineering (ACE) body and G-Force Controlled (G-CON) technology for enhanced safety of the vehicle occupants during a collision

The interior design includes 8 way power seat adjustments with lumbar support, tilt and telescopic steering wheels, an advanced audio system, with a central multi selector USB port.

10. SkodaIndia Unveils New Fabia 1.2 MPI Model

2 May, 2008

With Fabia establishing itself in the Indian car market, ScodaIndia Friday unveiled yet another version of its popular hatch-back model, Fabia 1.2 petrol version, in three variants - Active, Classic and Ambiente.

This new version has been competitively priced between Rs.486,795 and Rs.580,174 (ex-showroom).

The new Fabia model comes with 1,198 cc petrol engine and with high torque performance (HTP), expected to enhance fuel economy and ensure low emissions. It sports a 1.2 litre engine with 4 valves per cylinder and a double overhead cam (DOHC).

The vehicle will have dual airbags, rear wash and wipe and collapsible steering wheel as standard features. The Fabia 1.2 MPI is engineered to deliver high standards of performance, drivability and riding comfort to meet growing customer expectations in the market.

Fabia 1.2 MPI will be available in colours such as candy white, cappuccino beige, brilliant silver, magic black, satin grey, corrida red, tangerine orange.

Thomas Kuehl, board member (sales and marketing) of SkodaIndia, said: "With the introduction of Fabia 1.2 MPI, we are expanding the opportunities for SkodaIndia to become a meaningful part of our modern customers' lifestyle. It carries all the attributes of the Fabia range, which have been so well appreciated in the market place."

"I am delighted to present the Fabia 1.2 MPI with HTP engine that significantly enhances drivability and fuel efficiency of the car to our Indian customers," he added.

The company has sold over 3,500 units of Fabia till April 2008. The target sales of Fabia product line is 10,000 units for 2008 wherein the share of Fabia 1.2 MPI is slated at 40 percent. SkodaIndia is confident to surpass the annual target of 25,000 units.

SkodaIndia is a fully owned subsidiary of SkodaAuto a.s. Czech Republic (Volkswagen Group) and has been operating in India since November 2001 with its manufacturing facilities at Aurangabad and Maharashtra.

11. Toyota Innova Still Innovating With VFX

25 April, 2008

The latest Toyota Innova ad, It’s Me, is made up of four vignettes. Each vignette shows how the woman in the screen space associates with the Innova.

The ad is loaded with special effects and computer graphics. It has been created on similar lines as the Airtel-Google ad, which used chroma keying to produce the feature film like effect.

Shivanand Mohanty, executive creative director, Dentsu Communications, says, “The Innova brand needed to be presented in a manner to appeal to a much younger audience.” This younger audience was not just an age bracket, but those individuals who buy a car, not just for its utility and mobility, but for what the car stands for as a reflection of them. The ad aims to capture the various contrasting aspects of the car’s personality and its versatility.

The ad opens with a woman walking the ramp and then getting into a red Innova. Next, she is driving in a black Innova dressed in corporate attire. Then, it’s the same woman, in a much trendier and funky outfit, getting into a silver Innova. The next shot has the woman doing various acrobatics and somersaults and dodging things. The car, too, is dodging around, showing its various features. Finally, it all comes together to say that all these are different, but still ME. (Submit your opinion on this ad.)

The ad was shot by Far Commercials at ND Studio, Karjat, under the helm of Antonio Saraceno, an Australian director who has worked earlier with Toyota. Sar Commercials also had shot the Toyota Qualis ad about four-five years ago. The surreal scenes in which the girl walks on the ramp and the silk sheet converts itself into an Innova and the scene with the acrobatics – all of them were shot using the chroma keying method, in which a blue/ green backdrop is maintained while shooting the scene. After this, the silhouette of the scene is cut out and the desired background applied through visual effects.

The development of the background was carried out in post-production by Prime Focus, which also handled the post-production for the Airtel-Google ad, using various software such as 3DMax, Maya, After Effect, Smoke and Bojou. Bojou helped recreate a scene which had been shot on film so that new graphic elements could be placed within the simulated 3D generation.

In the first scene, where the ramp slides in and the model walks on it is totally computer generated. The black pearl finish ramp did not exist when filmed. “After studying how the model walks on the ramp, we created a measurement of how she moved. This movement was then converted into a computer graphic, which is used to measure all the other aspects involved in creating a background,” says Raj Tambaku, VFX supervisor, Prime Focus. Thus, the lighting and the blinking of these lights is all visual effects; the lights do not really exist.

“It’s a lot like magic – making you believe in something that isn’t there,” he says. The post-production cost around Rs 21 lakh.

Toyota hasn’t planned anything else as part of the 'It’s Me campaign. However, other media may be used later. Actor Aamir Khan has been dropped as brand ambassador.

12. HCL Info unveils new series

10 May, 2008

HCL Infosystems launched the latest version of “MiLeap” H&V series of laptop computers, priced at Rs 33,990 and Rs 16,990, here on Friday. The entire range is available at DigiLife stores. On the occasion of the launch, Mr George Paul, Executive Vice-President, said “this revolutionary new range of ultra portable laptops has opened up a wide range of new usage scenarios and application areas.”

13. Blue Star Launches Eco-Friendly VRF AC Systems

10 May, 2008

Central air-conditioning and commercial refrigeration major Blue Star on Saturday announced the launch of its Variable Refrigerant Flow (VRF) air-conditioning systems.

The company is the first to manufacture such eco-friendly and energy-efficient systems indigenously, a press release issued here stated.

"The launch of these energy efficient VRF systems with an eco-friendly refrigerant to prevent ozone depletion is yet another initiative of the company in the area of going green," the company's Deputy Managing Director T Gouri Sankara Babu said in the release.

Blue Star Launches Eco-Friendly ACs

10 May, 2008

Central airconditioning and commercial referigeration major Blue Star has launched new eco-friendly and energy saving range of airconditioning products based on Variable Refrigerant Flow (VRF) technolgy.

Blue Star is the the first company to manufacture the productsbased on this technolgy ingeniously.  Besides cost saving indgenious air-condition units based on VRF technolgy can give cooling even at 52 degree, it is capable of handlling wide voltage fluctuation and is also space saving, claims a press release issued by the company.

According to T Gouri Sankara Babu, deputy managing director, "Blue Star has been committed to the cause of saving energy and conserving the environment. All our products are designed on an energy-efficiency platform and we have been pioneers in introducing breakthrough energy saving products. We are also one of the few to offer only star-rated split airconditioners, though the legislation is still to be implemented. The launch of these energy efficient VRF systems with an eco-friendly refrigerant to prevent ozone depletion is yet another initiative of the company in the area of going green."

14. ETA Star Unveils Indesit Home Appliances Range

22 April, 2008

ETA Star Appliances Pvt Ltd on Monday launched a range of home appliances from the brand Indesit.

ETA Star, a wholly owned subsidiary of $5-billion ETA Ascon Star Group, is in pact with the Italian brand to distribute and service the latter’s range of home appliances in India.

The company in the first phase introduced a premium range of front-loading washing machines, refrigerators, kitchen tables, chimneys and dishwashers.

Announcing the launch in Chennai, Mr M. Ejazuddin, Director, ETA Star Appliances Pvt Ltd, said the company will use its existing distribution network to reach products across markets. “We have so far identified 600 multi-brand outlets in 30 cities and are planning to add another 200 outlets in 30 more cities soon,” he said. According to him, the company is also planning to open 15 exclusive brand outlets in the first three to six months and will expand it to 30 in a year from then.

As for after sales service facilities, Mr Ejazuddin said, the company has signed on 42 franchisees and imparted necessary training for their people. “We will add another 18 to take the total number of franchisees to 60 before the end of this year,” he said.

The company has set aside Rs 10 crore to promote the brand in the first year.

Earlier, the company launched the Vestar brand of LCD televisions in the Indian market. Asked about the demand for the brand here, Mr Ejazuddin said it has sold out all the 2,500 units that came in the first consignment and will soon bring in more.

15. Godrej: Change For The Better

1 May, 2008

All good things make way for even better things. And Godrej’s first ever corporate TV commercial echoes that thought. The creative agency for the company is JWT, and Agnello Dias (Aggie), national creative director at the agency, is the man behind the ad.

The TVC seeks to tell the consumer that Godrej, one of the country’s largest business houses, has shed the bright red in its logo and given it a fresh blue-green-red look. The change in the logo colour symbolises Godrej’s new corporate identity and the refurbishment of its master brand; the aim is to consolidate its presence in the various business areas in which it is present – personal grooming, aerospace, property and lifestyle. With its splash of colours, the new logo retains the original font for reasons of continuity and empathy.

The film opens on a shot of a man dressed formally, standing alone in a room. The camera zips through a hall full of books. The man, the principal of a school, is in a pensive mood. He is talking to himself, “Respect, honour, integrity – it’s all hidden behind a wall – a good morning wall.” The principal is imagining students greeting him formally (but not with a happy look on their faces) from behind the walls of books. The camera cuts to the shot of a ruler, and in the next, zooms into a shot of the school emblem, which has respect, honour and integrity engraved on a shield. These shots represent the strong values propagated by the principal. He wears a determined expression on his face, showing that he has made up his mind, “Today, I’m going to open a door in the wall.” He takes off his tie and breaks the ruler into two. Pushing the door open, he steps out of his room.

Next, he is shown walking down the corridors of the school, and the students have an alarmed look on their faces. A casual, friendly “hi” takes the place of the earlier formal “good morning”. They can see that their school principal is not wearing a tie or a formal coat any more. Young boys are seen loosening their own ties. The principal walks around the school and smiles in relief, as he sees citrus green, sky blue and ruby red leaflets floating around. The three colours merge to form the revamped Godrej logo. The voiceover concludes, “If we open up, we can brighten up the world. Enjoy a brighter Godrej.” The film is backed all through by flute music. (Submit your opinion on this ad.)

The communication brief given to JWT was based on the insight that consumers want change, but are boggled by the scope and pace of it, leading to issues of comprehension and affordability. Hence, there is “tension” within them. Innovations from a trusted brand like Godrej provide the best licence for them to embrace change boldly, as they no longer need to be evaluative and circumspect.

The redefinition of the Godrej brand identity is not just an external logo change, it is a transformation in the attitude of the organisation itself. Anuj Mehra, vice-president, client services, JWT, says, “Earlier, Godrej didn’t seem to be a consumer driven organisation, but now, the company has put the consumer at the heart of its functions. A research study showed that consumers did not feel that Godrej could be part of their future outlook – this needed to be corrected. While retaining some of its core values of trust and reliability, it was important to make the brand expressive.”

Mehra says, “Godrej was adding up to a specific brand, but every brand and category stood independently. With a unified logo, the company’s brands in other spaces, furniture, kitchens, etc., will also be able to leverage the biggest asset that the company has – the brand name Godrej, which stands for trust and reliability. Moreover, a consumer evaluates a brand along emotional lines, not rational lines – so, the brand needed to evolve.”

Commenting on the creative of the film, Aggie says, “In the film, the “good morning wall” is a metaphorical expression of the barrier of formality that exists within the principal and his students. He loosens himself and breaks down the wall.”

The film has been produced by Equinox Films and directed by Milind Dhaimade, the production house’s second hand (after Ram Madhvani). Amartya Raut, fondly known as Bobo, has composed the flute score. Godrej’s marketing spend is around Rs 30 crore.

This is the first time that Godrej is undertaking a re-branding exercise of this sort. Ashutosh Tiwari, executive vice-president, strategic marketing, Godrej, reveals that most of the earlier changes in the company’s logo were for different parts of the group. In 2006, the company began to use red in its logo and harmonised the use of the logo across the group.

Tiwari talks about the new logo as “a visual representation of the Godrej brand’s essence of ‘brighter living’”. “This brand essence resonates with our core consumer insights about Indians being highly optimistic. They have a strong belief in achievability, desirability, experience and, above all, expression of progress. This leads to the four value pillars of the brand: expression, progression, experience and empathy,” he explains.

Dissecting the logo, Tiwari says citrus green is about expression, representing growth, harmony with nature and renewed life. Sky blue embodies progression – big ideas, blue sky thinking, technology and innovation. Ruby red reflects cherished experiences – passion, indulgence, energy and dynamism. The typeface connotes continuity, a strong sense of empathy built on the strong foundation of Godrej trust, he says.

Interbrand, a UK based brand consultancy, has partnered Godrej in what is a significant refurbishment for the company. Tiwari says, “The entire project has been a result of powerful, continuous co-creation between Interbrand and the strategic marketing group of Godrej across consumer, employee and strategic perspectives. Additionally, Interbrand has played an extremely important leadership role in the design of the new visual identity across all its manifestations.”

With innumerable options to choose from within India, Godrej chose to work with Interbrand, which does not have a presence in India. Why? Tiwari says, “The need was to have a partner who could complement Godrej’s strong strategic, brand and marketing capabilities. Omnicom’s Interbrand is the world’s premier agency in the arena of brand diagnostics and valuation. They approach the process of brand analysis and positioning with a strong emphasis on consumer perspective as against getting mired in hard, lag metrics alone. Additionally, their London office focuses a lot on strategy.”

The corporate TVC talks about a brighter Godrej. The next campaigns will focus on the tasks undertaken by Godrej, which stand testimony to the company’s promise of enjoying a better Godrej. They will act as satellites to the core communication. The other set of campaigns, with the new logo and line of communication, is slated to be released within a fortnight.

The IPL cricket tournament is the pivot around which Godrej’s media strategy revolves as of now. The company is also sponsoring the Godrej Life Banade Contest during the IPL matches. The company is looking at a number of media options, of which currently, television and outdoor can be seen. “We are actively considering cinema, on-ground and Internet,” Tiwari says.

Godrej will also set up a new website soon for consumer engagement; the existing website has already been revamped.

16. Reliance Money Ties Up With Sify Technologies

12 May, 2008

Reliance Money, the brokerage and financial services arm of Reliance-ADAG, has tied up with broadband service provider Sify Technologies to sell its financial products and services like mutual funds, credit cards, money transfer and insurance products through the internet cafe chain.

The move, Reliance Money said, will help it target day traders and the younger generation. Sify has over 3,300 cyber cafes across 150 cities. The tie-up, which is on a revenue-share basis, also covers Sify’s 3,000 franchisees providing broadband services to homes.

The broadband franchisees would act as marketing agents for Reliance Money products and services. “About 50-60% of broadband revenues come from day-traders. With this tie-up, we can target them better,” said Reliance Money CEO and director Sudip Bandyopadhyay.

Reliance Money officials are training Sify’s 600-people sales team to market its products and services, who in turn will train its franchisees to do the same. The roll-out will begin in a fortnight. While its entire range of products and services will be made available at Sify internet cafes, Reliance Money is hoping the move will further boost usage of its online trading account and portfolio management services.

For Sify, it would mean an additional revenue stream. “The initiative would allow us to tap unconventional channels of distribution. With an addition of over 6,000 franchisees through the tie-up, we will add significantly to our existing distribution strength,” Mr Bandyopadhyay added.

Reliance Money has been distributing its offerings through its existing sales network, Reliance Webworlds and Reliance Communications outlets. Last year, it also tied up with Tata group’s IT solutions and service provider arm, CMC Ltd, for installing its web-enabled financial retail kiosks at CMC franchisee outlets.

Reliance Money provides a single window, enabling customers to access, amongst others, equity & commodity derivatives, mutual funds, IPOs, life and general insurance products, offshore investments, money transfer, money changing, gold coins and credit cards.

17. Tata Capital Forays Into Merchant Banking

13 May, 2008

Tata Capital on Tuesday announced its foray into merchant banking services through a wholly-owned subsidiary, Tata Capital Markets.

"This decisive stance to enter into merchant services exemplifies our firm commitment to emerge as a holistic provider of financial services," Tata Capital's Managing Director Praveen Kadle said in a statement.

Having Category-I merchant banking licence from SEBI, Tata Capital Markets Ltd (TCML) would operate as a full merchant bank, encompassing issue management services, qualified institutional placements, corporate advisory services and loan syndication.

TCML, he said, would leverage the distribution network of Tata Securities, another wholly-owned subsidiary of Tata Capital, for retail and institutional placement activities, Kadle said.

"With 98 operating companies across seven major business sectors, the Tata Group renders us a unique advantage of being able to benefit from the knowledge and the network of the group as we embark on establishing our merchant banking business," he said.

18. Delhi Metro And Citibank Launch Co-Branded Transit Credit Card  

7 May, 2008

Citibank India and the Delhi Metro Rail Corporation (DMRC) today announced the launch of India’s first co-branded, ‘2-in-1’ transit credit card, the Delhi Metro Citibank Credit Card. The first of its kind in India, the card combines the benefits of a Metro Smart Card with the advantages of a Citibank Credit Card, and will be available to customers from today.

This new product is a pioneering initiative introduced by DMRC and Citibank India, to offer enhanced value and convenience to Delhi’s residents. In addition to the exciting features of a Citibank credit card and the existing Metro Smart card, the Delhi Metro Citibank Credit Card is also unique in several other ways. The reward points accumulated on this card can be redeemed for free Metro rides, at the Citibank point-of-sale terminals, presently installed at Rajeev Chowk, Kashmere Gate, Barakhamba, Pitampura, Rajouri Garden and Dwarka Mor Metro Stations and soon to spread across other stations as well. Additionally, it offers double reward points for Metro spending and will not require the mandatory security deposit of Rs 50.

It is India’s first credit card that doubles as a contact-less access card for the Delhi Metro stations, allowing customers “tap and go” entry into DMRC stations. In addition to convenience, the Delhi Metro Citibank Credit card will offer several benefits, including exclusive shopping deals and discounts in Delhi and the NCR, fuel surcharge waivers at Indian Oil outlets and other privileges associated with a Citibank Credit Card. The special “Delhi Delights” feature of this card offers unique deals from some of the biggest brands in Delhi, including Dominos, Fun Cinemas, Nirula’s, Bercos, India Today and VLCC.

Launching the Delhi Metro Citibank Credit Card, Mr. Surath Chatterjee, Regional Head of Card Products, Citi Asia Pacific said; “As a global leader in the credit cards business, Citi has come to be known for its innovative card and banking products, internationally and across the Asia Pacific region. Citi has successfully launched similar products in New York and Singapore, both of which have been extremely well received. We expect to launch similar products in more countries in the next few months. This is a great product for our customers and it really helps them in their daily lives. We have worked closely with the DMRC to develop a customised offering for the Indian market and are sure that this product will be a success in India. With the launch of this unique transit credit card, Citi continues its tradition of pioneering innovations in Asia”.

Commenting on the partnership with Citi, DMRC Director, Operations, Mr. Raj Kumar added: “DMRC is always looking to improve the transit customer’s experience and we are delighted to partner with Citibank, to launch this unique offering. We believe this product is the next step in providing our travellers unmatched convenience and reduced waiting times by combining an efficient payment mechanism with the Metro experience.”

Also speaking on the occasion, Mr. P. S. Jayakumar, Country Business Manager, Global Consumer Group, Citi India, said: “By pioneering co-branding in India, Citibank has brought unmatched value to customers by partnering with the best organisations in their industries. We are delighted to partner with DMRC, which has made Metro the preferred mode of travelling in Delhi. With its innovative practices and strong customer focus, DMRC continues to drive change in the field of mass rapid transportation. As the Metro extends its operations further into Delhi and NCR, and with the forthcoming Commonwealth Games in 2010, the Delhi Metro Citibank Credit Card will fulfil the need of a world-class product for hassle free travel and shopping. Citibank is happy to leverage its global expertise in the transit segment, to bring world-class products to the customers of Delhi.”

Special Privileges on the Delhi Metro Citibank Credit Card:

Privileges on the ‘2-in-1’ Delhi Metro Citibank Credit Card

-- 10 per cent discount on travel fare paid with the ‘2-in-1’ card

-- 2 Reward Points for every Rs.100 spent on the Metro, 1 Reward Point for every Rs 100 spent elsewhere

-- Facility for converting all Reward Points into Metro Points for Free Metro Rides (at the POS terminal itself)

-- An International Credit Card: accepted at over 14 million merchant outlets, in association with Visa international, across the world

-- 2.5 per cent surcharge waiver on IOC petrol pumps

-- Access to 24 hr CitiPhone Banking services

-- Five free lifetime add-on cards

-- Delhi Delights – offers from the best brands of Delhi

19. HDFC Bank Launches Fund Transfer On Mobile Network NGPAY

6 May, 2008

HDFC Bank on Tuesday launched fund transfer on mobile commerce network, ngpay.

With this launch, HDFC Bank said it has become the first bank in India to offer, on one single platform, a full suite of banking and commerce services over the mobile including accessing bank accounts, shopping, ticketing, and payments.

HDFC Bank customers who are registered for fund transfer facility under the Bank's NetBanking services can download the ngpay application on their mobile handsets and begin transferring funds immediately.

"Fund transfer will happen in real-time between two HDFC Bank accounts and within 48 hours when transferring to a non-HDFC Bank account", Rahul Bhagat, Country Head - Retail Liabilities, Marketing & Direct Banking Channels, HDFC Bank, told a press conference.

ngpay CEO Sourabh Jain, said starting next month, HDFC Bank customers will also be able to buy and sell units of different HDFC Mutual Fund schemes through NGPAY.

HDFC Bank inks Pact With ngpay; Launches "Complete banking solution" On Mobile Phones

7 May, 2008

HDFC Bank has announced the launch of its fund transfer service on ngpay, a mobile solution brand from JiGrahak Mobility Solution, to provide a full suit of banking and commerce services through mobile phones.

With the launch, the bank's customers can now get account statements, enquire about cheque status, send cheque book requests, get fixed deposit enquiry and transfer fund to any HDFC or any other non-HDFC bank account holder using the ngpay platform.

In an official release, HDFC bank stated that the fund transfer between 2 HDFC Bank accounts will happen in real-time while, in case of non-HDFC Bank account, it will happen within 48 hours.

The customers of HDFC bank, apart from using the application for e-banking activities, can also avail other services including booking of movie, air, rail and bus tickets, shopping and making payments.

The bank claims that this service will be the first in India to offer full suite of services on a single platform.

ngpay application can be downloaded on any GPRS-enabled mobile phone by sending a SMS "ngpay" to 56767 or by simply visiting www. ngpay. com.  

20. Cholamandalam DBS Launches Online Share trading - CholaDBS Direct.com

15 May, 2008

Cholamandalam DBS Finance Limited, a joint venture between the Rs. 9582 crore Murugappa Group and DBS Bank of Singapore, today announced the launch of CholaDBS Direct, an online investment portal aimed at retail investors and traders. The portal, www.choladbsdirect.com, is a financial gateway for first time as well as regular investors, helping them invest safely and securely across a wide variety of financial instruments online. The portal will initially also host most of the in house research that has been hitherto available to High Net worth Individuals (HNI) clients of the firm.

Speaking about the initiative, Mr. Atul Pande, Managing Director, Cholamandalam DBS said, “With the launch of CholaDBS Direct, we expect to gain a sizable market share in the online trading space. Our partner, DBS Vickers Securities, the securities arm of the DBS Group, is a strong online player, and we have integrated our domestic and international knowledge to ensure we present a very strong platform to Indian investors. With our strong focus on customer choice and transparency, we believe we can play a pivotal role in this industry over the next three to five years. The product would now be available across all our 90 existing wealth management branches across 46 cities.”

“CholaDBS Direct’s trading platform offers a very user friendly interface for both active traders as well as investors. More over, we are continually going to build around technologies that allow clients to experience online trading in a very different way. We have also priced it vey aggressively and are offering a 3-in-1 account in partnership with banks” said Mr. Sandip Raichura, Head Broking, Cholamandalam DBS. “The portal was being test marketed in some key locations over the past few months and the initial response suggested that the online community would continue to not only grow substantially but also force key players to bring strength and variety in their offering. Our client service standards would continually be ramped up to ensure we retain a large part of our investor base over the years”, he added.

Cholamandalam DBS will also be looking at partnering with banks and other financial institutions to offer their customer base a range of white labeled retail products including personal loans and online broking through www.choladbsdirect.com.

21. Max New York Life: Desperately Seeking Sanju

14 May, 2008

Remember the life insurance ads of yesteryears (call it the last century/ millennium, if you must)? Dread and fear were the two primary psychological hooks for the category, and it wasn’t uncommon to hear ambulance sirens wail in the ads, as horror struck family members worried about the future on losing a loved one. With increased privatisation, the category became chirpier with emotional ‘We’re there for you’ kind of appeals being made by various brands.

Now, in a life insurance ad by Max New York Life (MNYL), it seems fear – and its relevance to the basic need for insurance – is back. Anisha Motwani, senior vice-president, marketing, Max New York Life, says, “The category is getting crowded with the sappy, emotional kind of appeals. I’ll say it is gutsy on our part to bring fear back as it is one emotion that is avoided by most Indians – they love a happy ending.”

However, she adds, people in India are still in denial with reference to this category. They largely tend to believe ‘it can’t happen to me’, which is an area that MNYL wishes to address. “We worked around the famous insight that problems never announce their arrival, so one has to be prepared,” Motwani explains.

The ad, created by Euro RSCG, opens on the shot of a woman hurriedly climbing up the stairs to her flat. On passing the security guard, she enquires if her husband has arrived home. He says he has. She quickly opens her door and rushes in, calling out to her husband, Sanju. She prepares tea, and calls out again to her husband, expecting a reply. But there’s only silence. Next, she calls him on his mobile phone, only to find it ringing in the house itself, under some couch pillows. Now, she is a little worried, and calls out frantically for him, exploring every inch of the house. Her worry escalates into panic on finding her husband very still in a rocking chair on the terrace, coffee spilling from an overturned cup beside him and newspaper sheets scattered all around. Assuming the worst, she creeps up behind him and nudges him. Sanju, who had been listening to music on his earphones, is quite startled. The couple hug each other in relief. The ad ends with the thought, ‘Museebatein bataake nahin aati’, and therefore, Max New York Life helps a person prepare for such unprecedented events.

Motwani admits that this is a “health insurance brief given for a life insurance ad”. To her, the idea here is not only about health problems, but about any threat to a peaceful life. “The insight fit the brief perfectly,” she says.

Says Mani Jayaram, vice-president, creative, Euro RSCG, “We wanted this film to be a relatable, slice of life one, as the insight itself is very real.” The ad idea was thought of by Euro’s associate creative director, Nikhil Pandey, who cracked the idea “one fine afternoon”. The name Sanju was chosen as it is a generic one (the name is rather prominent, being the only words uttered in the ad for a long time).

“The film had to build on the paranoia aspect, and we had to let the viewer believe that something was very wrong, to play on fears,” says Pandey. The essential brief was as basic as the category itself: to address the question why one should opt for insurance. Exaggeration had to be used to make the ad a little scary, but not so much that the relief in the end is lost on the audience.

The ad has been directed by Subir Chatterjee of White Light Films, along with Namita Roy Ghosh. A young couple was chosen as with an old couple, the viewer would have jumped to the obvious conclusion easily. The ad was shot over two days in two separate flats in Mumbai (for different scenes). The flats were not prettied up – they were shot just as they are in reality to give a slice of life feel. The security guard was thrown in to heighten the pressure, as then the woman is expecting her husband to be in the house.

The shot of the woman calling her husband on his mobile, only to find it ringing within the house, was used to make the ad more chilling.

“We used a jumpy kind of narrative,” says Chatterjee. Some shots were taken from a 16mm handheld camera. Further, multiple dissolves were given to the woman’s face, to make it look like she has searched in every direction (it also gave the passage of time effect).

“Sounds were of extreme importance to add to the sinister feeling in the film,” Chatterjee adds. A faint ambulance sound on the woman reaching the terrace, the shrill ring of the mobile, or even the terrace door banging, are all intended to make the film edgier.

The ad is currently playing with the IPL matches.

22. Coca Cola Launches Out-Of-Home Initiative For Limca

15 May, 2008

Beverages major Coca Cola, which has considerably increased its advertising spent on out-of-home media initiatives in the last two years, on Thursday announced a new campaign for its lemon flavour brand 'Limca' in association with the trucker's community.

As a part of the initiative to connect with consumers around travel channels including highways, dhabas (fast-food joints) and on the back of trucks, the company has signed an agreement with the Truck Owners Welfare Society.

"Coca Cola India's ad spent on out-of-home advertising has gone up to 12 per cent of the total spent in 2007 from one per cent in 2005. In order to leverage the potential of the OOH media the company has launched the new campaign for Limca for this summer," Coca-Cola India VP Marketing Venkatesh Kini told reporters here.

He said this would be an ongoing initiative of the firm which could extend to different forms of new media, other than print and TV.

As per the agreement with the society, 1,000 trucks plying on highways would sport Truck Art form of Limca Fresh Ho Jao messaging.

Creative taglines like 'Taaza Ok Please', 'Taazgi Disha Is Taraf' and '13 Mera 7 Taazgi Ki Baat' have been specially conceptualised by advertising agency Ogilvy and Mather to be put on truck backs.

Similarly, Limca hoardings would also be seen on the highways and in dhabas to reach out to consumers especially in North India.

The truck owner's society is a body representing the interests of the trucking community with 450 members and has 10,000 trucks plying across the country.

The revenue generated by tying up with Coca Cola would be spent on the programs organised by the association.

23. Free Talk Time With Sprite

9 May, 2008

Sprite is packing in some free talk time with fizz in its bottle this summer. Sprite ‘Kholega Toh Bolega’, is the new digital initiative launched by Coca-Cola to connect to 230 million mobile phone users in India. The company is offering talk time worth Rs 1.5 crore to GSM and CDMA mobile pre-paid and post-paid users across all leading mobile service operators. The digital mobile initiative has been powered by tech partner Oxigen, who would interface with mobile service operators to distribute the free talk time ranging from Rs 50 to Rs 5,000 to lucky consumers. The campaign, on till July, will reward 300 winners every hour, claims the company. In addition, they will be able to download music videos, movie clips, games wallpapers and ring tones free from www.mobibuzz.in/sprite. “Sprite’s 2008 summer campaign, ‘Seedhi Baat, No Bakwaas, Clear Hai?’ is all about engaging the youth in a simple, honest and straightforward manner. Independent research reports have shown, out of the 230 million mobile phone users in the country, the youth continue to be the largest users of prepaid mobile phones,” said Mr Venkatesh Kini, V-P Marketing, Coca-Cola India.

24. Rasna Cooks Up A Fast Food Business Foray

19 April, 2008

In a major diversification move, Ahmedabad-based soft drink concentrate major Rasna is cooking up a foray into the fast food mart with an exclusive chain of outlets retailing fast food and beverages. To be christened 'Devil's Workshop', Rasna's fast food chain is aimed at not just taking on fast food biggies like McDonald's but cafe majors like Barista and Cafe Coffee Day as well.

The diversification move has been cooking for the past six months now and has already seen Rasna set up a separate division to be spearheaded by a CEO and has set up a central kitchen at a cost of Rs 1.5 crore in Ahmedabad for the foray, sources said.

Rasna plans to set up small outlets of around 600 sq ft and kiosks at malls, multiplexes, educational institutions and transportation hubs, sources added. Interestingly, while National Institute of Design was roped in to design the concept as well as outlets for the food business, Rabo Bank carried out the viability study for the foray. The outlets, the first of which, are to be rolled out on a pilot basis at a multiplex in Ahmedabad this weekend, will retail not just fast food delicacies like pizzas, croissants and patties but also donuts, pastries as well as hot and cold beverages. While the cold beverages would come from the Rasna stable, the company has joined hands with Italian coffee player - Caffe Vergnano - for its coffee offerings, sources said.

When contacted, Piruz Khambatta, chairman of the Rs 300-crore Rasna group, confirmed the diversification and said that the company was eyeing revenues of nearly Rs 100 crore from the food business by 2009-end.

"We plan to target nearly a dozen tier-II cities including Pune, Chandigarh for the fast food business for which we will also take the franchisee route," Khambatta said, adding that the company would set up a central kitchen in each city it enters. Explaining the reason for the foray, Khambatta said: "We found that the biggest growth in the food retail segment is coming from ready-to-eat foods due to changing lifestyles and onset of modern retail."

25. Horlicks Signs Up Darsheel

22 April, 2008

Horlicks has a new brand ambassador in child actor Darsheel Safary of the Taare Zameen Par fame.

He will endorse the brand for a year. “I’ve been drinking Horlicks since childhood and really enjoy its taste.

“I have always been able to relate with the advertisements as it shows children like me,” said the young actor set to star in his first television commercial for the brand.

“Darsheel is the perfect brand ambassador for Horlicks, since he embodies the spirit of Horlicks, that is being social, spirited, full of life and vitality,” said Mr Sumeet Saluja, General Manager, GlaxoSmithKline Consumer Healthcare.

The company also announced two new flavours (Butterscotch and Pistachio) for Horlicks cold consumption.

26. Revamped Himalayan Brand Of Natural Mineral Water Launched

7 May, 2008

Natural mineral water manufacturer and a Tata group company, Mount Everest Mineral Water Limited, today launched its Himalayan brand of natural mineral water, in a new and international look.

"With the launch of Himalayan natural mineral water, we intend to travel the entire consumer pyramid, both lower and the top one," Mount Everest Mineral Water Limited's Managing Director and Chief Executive Officer, Pradeep Poddar, told reporters here after the launch.

The launch is the first big step in the company's strategy of moving the product to the global canvas, he said.

The Tata group through Tata Tea Limited holds an over 31 per cent of the shares of MEMWL along with management control.

The shareholding was as a result of the acquisition of a part of the investors' equity as well as preferential allotment by MEMWL.

India's packaged drinking water market is growing at 25 per cent year-on-year and the current market size in terms of revenue stands at Rs 1,500 crore.

However, the natural mineral water market is still in its nascent stage with a market size of just around Rs 100 crore, Poddar said.

27. Galla Foods Launches Mango Beverage GTM Nectar

5 May, 2008

Galla Foods, the premier exporter of tropical fruit purees, concentrates and fresh fruits has launched "Galla Thick Mango" (GTM) nectar, a fruit beverage targeting the mango loving consumers.

"Galla Mango will certainly satisfy the consumer's need for the best product both in terms of form and content. GTM nectar's unique formulation brings a wholesome, healthy taste of the most luscious mangoes with the highest fruit pulp content of 25 per cent in the category, as compared to 25 per cent offered by other nectar brands and even lesser fruit content of 10 per cent for the fruit drink category," Ramachandra N Galla, Chairman of the company told mediapersons after the launch.

The fruit has been the preferred choice of the best brand in Europe and Japan since the last three years. It is produced in-house at the state-of-the-art Galla Foods aseptic processing plant and uses the choicest of mangoes from Chittoor and Ratnagiri districts, the renowned mango belts of India, Galla said.

The product, the GTM bottle in 200 and 400 ml pack sizes has been specially designed too.

28. Kickstart Your Day With Murginns Cereals

10 May, 2008

New-on-the-block breakfast cereals maker, KCL Foods, has introduced its Murginns range of breakfast cereals.

KCL Foods' range of breakfast cereals include corn flakes, honey rings, instant porridge, and choko poko.

Murginns corn flakes have 0% cholesterol and less than 1% fat. Murginns honey rings, honey pops and choko poko has the goodness of grains, contains essential vitamins and minerals, has the goodness of natural honey, is fat free and has 0% cholesterol.

KCL Foods is part of the Rs 200-crore KCL Ltd, which is among the largest paper packaging companies in the country. The company is also a contract manufacturer for Heinz for its Complan and Glucon D brands. It earlier made Sunfill for Coca-Cola as well.

KCL soft launched the Murginns brand last July and expects it to be soon distributed countrywide. It is now retailing through national chains such as Reliance Fresh and Big Bazaar.

29. New Flavour Of Pepsi’s Tropicana Twister

14 May, 2008

PepsiCo has launched a new flavour of its Tropicana Twister drink, which will be introduced in returnable glass bottles.

The new bottle version is priced at Rs 12 for 250 ml. The Apple Rush flavour will be initially sold in select markets of southern and western India.

“We had launched Tropicana Twister in orange flavour nationally early this year and the market response has been terrific. We are going a step forward by introducing another flavour, Apple Rush in the portfolio and at a price of Rs 12, which is attractive to the consumers in a never-before seen packaging. Now with two widely preferred flavours, Orange Thrill and Apple Rush in the portfolio, we are catering to a wide set of consumers with different taste preferences in the fruit-based refreshment,” said Ms Sucheta Govil, VP - Innovation, PepsiCo India.

30. Keep Cool

26 April, 2008

Tops has introduced mango drink Mango Panna. It is claimed to be an effective remedy for heat exhaustion and heat stroke and claims to prevent the excessive loss of sodium chloride and iron during summer. Priced at Rs 85 for a 700 ml bottle, the product is available at all the major retail stores.

31. Balan Natural Unveils Jossh

26 April, 2008

Balan Natural Foods has launched a pulpy orange drink and another orange variant under the brand name Jossh. Priced at Rs 20, Jossh is available in 330 ml pet bottles. The company has also launched a premium variant - "pomegranate nectar with rich fibre" - priced at Rs 30. With revenues of Rs 25 crore, Balan Natural Foods hopes to reach Rs 100 crore in three years and have a pan India presence. The company supplies to airlines like Jet, Kingfisher and Go Air. Airlines contribute to about 10% of revenues, while exports to countries such as Singapore, New Zealand and Australia account for 5%.

32. Pepsi Plans Contests To Promote Youngistaan

5 May, 2008

Pepsi has come out guns blazing in an attempt to cash in on the Youngistaan positioning of its brand, which it unleashed with its TV ad campaign starring Bollywood stars Shah Rukh Khan, Ranbir Kapoor and Deepika Padukone.

The company aims to unleash the Youngistaan spirit through a 360 degree campaign. It has come out with exciting contests and activities to engage youngsters across print, television, radio, Internet and on-ground.

The sequel to the first Youngistaan TVC is already on air, minus Khan. It is set in a college canteen, with the theme, ‘Chaho to sab kuch hai aasaan (If you really want something, it’s not difficult)’.

Kapoor is being teased by a group of friends for his escapade with Padukone’s on-screen brother, Khan, in the preceding TVC. Kapoor replies with a speech, saying the concept of Youngistaan can be made to come true, and if you really want something, you can find your way to achieving it. He’s drinking from a bottle of Pepsi all the while. The young people around him are impressed, but then he turns to Padukone and says, “Just as I wanted your Pepsi, and I made this speech so that you wouldn’t notice me drinking it.” But Padukone has the last word; she points to a huge man sitting at the next table and says, “That wasn’t my Pepsi, it was his!” Kapoor looks visibly rattled.

The TVC has been directed by Imtiaz ‘Jab We Met’ Ali.

The other Youngistaan attraction on TV is Pepsi’s tieup with MTV for What’s Up – the Voice of Youngistaan News Bulletin. The news capsule features youngsters and their concerns about happenings around them. The news bulletin is aired on the channel at regular intervals through the day.

Pizza Hut has been roped in for the on-ground activities. Visitors to the 62 outlets of Pizza Hut can use Youngistaan Cards to avail of discounts on select products. Youngsters can send an exciting SMS on how they define Youngistaan; the name and message of winners will be displayed on the TV screens at Pizza Hut. Similarly, youngsters can express their take on what Youngistaan means to them by visiting the Youngistaan website on their mobiles.

FM listeners can make their presence felt in the Youngistaan campaign by tuning in to Red FM’s popular show, Chavani Athani, which is running a full 10 minute slot in which listeners can call in and describe what Youngistaan means to them. The best slogans will be made into ads and run on the radio channel for the day.

Several newspapers are carrying a column called Youngistaan ka Daily Dose, in which they try to capture the spirit of Youngistaan through catchy phrases full of attitude.

Sandeep Singh Arora, executive vice-president, marketing, cola, Pepsico India, explains the idea behind the 360 degree campaign, “For today’s generation, Youngistaan is almost a currency. They are all for fearlessly speaking their mind and displaying a bindaas attitude. They are go-getters, irreverent, cheeky and so they are the true ambassadors of Pepsi.”

Arora adds, “All the promotional activities built around the Youngistaan campaign strive to achieve active youth engagement by providing differentiated communication. The ultimate aim is to connect with the youth, building on the expression of “Yeh hai Youngistaan meri jaan”.

33. Sobha Group To Enter Hospitality Sector

7 May, 2008

Sobha Group, India's real estate firm, on Wednesday said it will build and operate a chain of hotel properties across the Indian subcontinent, Middle East and East Africa.

Sobha Group will own, develop and operate all Sobha Hotels. The first Sobha Hotels property is expected to open by 2010. The Group has plans to develop a portfolio of 2,500 rooms, the company said in a statement.

The group has plans to develop at least 10 five-star properties in the next five years, with two hotels earmarked for Dubai, six for India, and one each in Oman and Zanzibar.

Sobha Hotels will benchmark against the best resort properties and luxury hotels in the region, Sobha Group Vice-Chairman Ajay Rajendran said in the statement.

"We have been outfitting palace interiors for a long time and know all about creating high-end interiors. Our hands on experience in the residential and commercial buildings, their planning and building maintenance has given us adequate exposure to build and operate concept of Project Management.

"It is now our aim to transfer our expertise to the hospitality sector, to create a chain of five-star properties under the brand Sobha Hotels," he said.

"Sobha Group is all about high quality finishes and on-time completion. These pillars, coupled with Sobha's unique service delivery, will make Sobha Hotels an international-standard chain with a very local flavour," he added.

34. Hyatt Corp, Lanco Group Sign Accord On Hyatt Hyderabad

12 May, 2008

Global Hyatt Corp on Monday entered into an agreement with Lanco Hills Technology Park Ltd, part of the Lanco Group, for the management of the 400-room Grand Hyatt Hyderabad.

The Grand Hyatt Hyderabad is set to open in early 2011. It will be Hyatt's second hotel in Hyderabad, following Park Hyatt Hyderabad, which is scheduled to open in early 2010.

The hotel is part of a 100-acre township being developed by Lanco Hills in Manikonda. The project is located nearly 15 km away from the new international airport at Shamshabad.

"Hyderabad is an important global destination for information technology and life science research," said Hyatt Hotels and Resorts senior vice-president for real estate and development Ratnesh Verma.

"The opening of Grand Hyatt Hyderabad is part of Global Hyatt's initiative to expand its brand presence in India. We are particularly proud to be associated with this development, with an organisation like Lanco Group and we look forward to welcoming our loyal guests to Hyderabad," added Verma.

"This is a proud moment for us since this is our first venture in the hospitality segment," said Lanco Hills director and CEO S. Pochendar.

35. Uppal To Invest Rs 8,000 Cr In 4 SEZs And 2 Hotels

28 April, 2008

Real estate firm Uppal Group is planning to invest over Rs 8,000 crore in the next five years to develop four special economic zones and two hotels in the north India.

The Delhi-based company has already received the notification for two SEZs in Gurgaon, while it has got the formal approval for two SEZs planned in Uttar Pradesh.

"Infrastructure work has already started on the 263 acre multi-service SEZ in Gurgaon where we will develop 22 million sq ft in different phases," Uppal CEO (SEZs and Hotels) Gian Bansal told the media.

The project cost of the SEZ, including land, is Rs 5,000 crore, he said, adding that the project would be completed by 2013.

The construction work on another SEZ in Gurgaon is expected to start in the next three months.

"We are developing an IT/ITeS SEZ in Gurgaon spread over 87 acre of land with built up area of nine million sq ft. The project cost is about Rs 1,500 crore," Bansal said, adding that this project would be completed in the next three years.

Uppal is also planning to develop two more SEZs in UP over 26 acre of land each.

"We have got the formal approval for two IT SEZs in UP and notification is under process," he said. The construction on both the SEZs -- one in Noida and another in Greater Noida -- would start in five months. A total investment of Rs 800 crore would be made on these two projects.

When asked about the source of funding for SEZs, he said it would be done through internal accrual, debts and private equity at project level.

36. Parsvnath To Build Luxury Mall In New Delhi

3 May, 2008

Parsvnath Developers Ltd (PDL) has acquired an 1.18 acre plot in Connaught Place (Delhi) for Rs 200 crore to build a new luxury mall complex with office space. The land has been acquired from Mahajan Industries.

The company acquired the plot — situated at KG Marg — through a recently formed subsidiary Primetime Realtors Pvt Ltd and the proposed project is expected to be completed in about 24 months at an overall investment of Rs 300 crore (including land and construction costs). The development activity would commence in the next three-four months.

“We have already made the payment for the land. At present, the floor area ratio is pegged at 1 lakh sq ft, but under the new Master Plan it is expected to be close to 1.65-1.70 lakh sq ft,” Mr Pradeep Jain, Chairman, Parsvnath Developers, told Business Line.

Asked about the rental expectations, Mr Jain said that the office space side would be Rs 500-600/sq ft, while for the retail space it is between Rs 1,000-1,200 for a sq ft.

The luxury mall would showcase major luxury brands across categories such as apparel, jewellery, accessories, home and electronics.

37. Berkeley Group Forays Into Real Estate Business

21 April , 2008

City based Berkeley Group on Monday announced to foray into real estate business with the launch of its new company Berkeley Realtech Limited which will provide commercial, retail and industrial space on rental basis to corporates and further said that it was aiming for Rs. 300 crore of business in the first year of its operations.

"We will help the corporates in finding suitable space on rental basis in the tricity of Chandigarh, Mohali and Panchkula as per their requirements," Berkeley Realtech Limited, Director, Sanjay Dahuja told reporters here today.

The company will also assist corporates starting from personal verification and surveying of site, proper handling of legal procedures till signing of the final agreement, he said.

The company would charge one month rental from both landlord and occupant as commission for the deal, he said.

"We have already identified 400 such locations which are available with us and we are further looking for more space so as to cater to the emerging requirements of companies," he said.

"The tricity of Chandigarh, Mohali and Panchkula is gaining immense momentum and becoming an economic hub of Punjab, Haryana and Himachal Pradesh. As a result of it, several companies are quite keen on establishing their base make so as to mark their presence in this region," he said.

Berkeley Group, having interest in automobiles, insurance, finance, is looking to increase its turnover from Rs 400 crore to Rs. 1000 crore by end of 2008-09, "We are expecting our sales from other businesses to increase from Rs. 400 crore to Rs. 700 crore and balance Rs 300 crore would come from realty business," he said.

38. L&T To Develop Rs 3500 Cr Commercial Complex

21 April, 2008

Engineering and construction major Larsen & Toubro on Monday said it will develop an integrated commercial complex in Navi Mumbai at a project cost of Rs 3,500 crore, its single largest investment in the real estate development sector.

Besides, it would also develop Seawoods-Darave Railway station over the next three years, the company said in a filing to the Bombay Stock Exchange.

The property development division would build the integrated commercial complex at Seawoods railway station, Navi Mumbai over 40 acres of land. The proposed project is expected to be completed over the next five years, the company added.

Once this project is commissioned, L&T would develop in-house capabilities to build and operate such transit oriented developments around railway stations.

The scope of development would consist of a modern railway station, large format retail and entertainment space, multiplexes, office complex and premium category hotel and service apartments.

Cushman Wakefield and Jones Lang Lasalle Meghraj were engaged for real estate advisory services for the project.

Shares of the company were trading at Rs 2,848, up 2.59 per cent on BSE in afternoon trade.

39. 'Retail Sector To Consolidate In Medium Term'

11 May, 2008

Growing retail industry in India would see a phase of consolidation in the medium term while ill-planned malls were likely to go out of business, an official of real estate management company Jones Lang LaSalle Meghraj (JLLM) said.

"There is a huge potential for the retail sector in the country since India is a large economy and 97 per cent of the country's retail trade is still in the unorganised sector," JLLM Managing Director (Kolkata market) Abhijit Das told reporters.

With the country's economy projected to grow at a rate of nine per cent per annum, there would be gradual shift of the retail business from unorganised to organised sector, he said.

In spite of this, retail sector would see a phase of consolidation in the medium term. According to Das, malls which are ill-planned and of less than average standards would be under severe pressure.

Companies like Reliance Retail, Future Group's Big Bazaar are expanding their network in the country while new players are entering the market, he said.

To a query whether only big players with deep pockets would survive only, Das said that the issue was not about big or small players.

He said a small player with an outstanding mall in terms of design, positioning, tenant mix and value proposition would always do better than a large player with a below average mall, ill-designed and poor value proposition.

The sector would continue to attract investments in the next five years,he said, adding that there was no scope for deceleration in the growth of the industry in the country.

40. HyperCity Retail To Focus On Big Box And Multi-Channel Format

12 May, 2008

HyperCity Retail, part of Mumbai-based K Raheja Corp, which also owns the Shoppers Stop chain of department stores, has called off plans to launch convenience formats, ExpressCity, announced last year. The retailer is instead shifting its growth plans to focus on the big box format and multi-channel retailing.

Officials said it made better business sense to focus on larger formats since the profit margins in convenience formats were too low. The current crop of convenience formats, including Subhiksha, Reliance Fresh and Spencers, are struggling with the challenges of operating a low-margin grocery business in the face of spiralling real estate costs, high supply-chain costs and tough competition from the traditional formats.

HyperCity CEO Andrew Levermore said: “The experiment with the convenience format has been put on the back burner for now. It is clear that the HyperCity format delivers greater returns than the small formats in the retail space, so we have decided to expand HyperCity. We may revisit the small convenience format experiment at some point in the future.” Sources said huge rentals charged by property developers made low-margin businesses unviable.

As a result, retailers are grappling with the issue of delayed property developments and challenges of seizing the right locations at the right price. Industry players say the retail business has been impacted by spiralling real estate costs and a weak back-end and supply-chain.

Currently, the company is accelerating the roll-out of seven additional big format stores this year. Its maiden HyperCity store at Malad in Mumbai has completed two years and the company recently launched a multi-channel, catalogue and internet retailing format, HyperCity Argos. It had set up its first convenience format ExpressCity in Jaipur as a market tester.

In mid-2007, HyperCity Retail had announced plans to roll out as many as 300 smaller grocery stores in the next four years. ExpressCity was to sell vegetables, fruit and food items and the stores were estimated to be spread over 3,500-5,000 sq ft.

The company had announced plans to stock pre-cut and refrigerated fruits and vegetables, apart from refrigerated ready-to-cook food products and 12 meal options as well. After the test-launch in Jaipur, the original plan was to launch four additional stores and then work on a pan-India presence.

“Convenience stores have to be set up at prime locations and be accessible to consumers who are in any case used to the mom and pop formats which offer efficient and quick deliveries. Given the current property rates, it may not have been feasible for HyperCity to operate such stores profitably without getting the locations right,” a source said.

41. Upmarket Spencer's Eyes 250 New Stores

10 May, 2008

RPG Group company Spencer’s Retail, a multi-format retailer, plans to reposition itself as an upmarket brand with increased focus on fashion, food and home decor. Besides, the company would invest close to Rs 1,500 crore to open 250 new retail outlets this year. Presently, Spencer’s operates 400 stores under different formats, such as supermarkets, hypermarkets and express.

“Fashion is a significant segment of the country’s retail industry as it has influenced lifestyle in a big way. With consumers’ new look-good and feel-good attitude, fashion offers huge potential to tap the untouched markets,” said RPG Enterprises vice-chairman Sanjiv Goenka at the launch of the two new hyper stores at Ghaziabad and Gurgaon on Friday.

The company is also in talks with various international retail players to set up joint ventures across different categories in the country and is targeting a turnover of Rs 1,800 crore by end of the current fiscal.

Spencer’s new stores will retail a wide range of formal wear, casual wear, evening wear and sport wear for men, women and children.

The company would also offer a separate apparel range under its private labels such as Mark Nicolas, Notting Hill, Island Monks and Asankhya introduced recently. Besides, variety of merchandise would be made available across food and non-food categories apart from latest electronic gadgets, gizmos, homecare and home-decor items.

On the investment plans, Mr Goenka said, “We would invest Rs 1,500 crore across different formats within a year to open additional 250 stores. The company’s total retail space would go up to 22.5 lakh sq ft by March 2009.”

42. Retailers On Catalogue Blitz To Increase Footfalls

21 April, 2008

As retailers in India look at ways and means to garner more footfalls, catalogues are slowly emerging as a force multiplier to the marketing initiatives undertaken by various formats. Catalogue marketing, though in its infancy, is seen as an effective marketing tool for formats to target audiences beyond the restricted catchment area. Thus players like Croma, Big Bazaar and Hypercity have initiated catalogue marketing programmes with an eye to increase not only brand visibility but also offtake of certain categories.

Big Bazaar will shortly launch a customised catalogues of what’s on offer within a particular store. Big Bazaar CEO Rajan Malhotra says that the format will be launching the catalogues across 50-55 stores in smaller towns and cities. “Catalogues are add-on media and we think it works best within a particular catchment or city,” he says.

Ajit Joshi, CEO, Infiniti Retail, which runs Croma, says that catalogues reduce the transaction time on the floor. “The purchases are family-oriented and evenings are the peak time at our stores. So, catalogues enable one to exactly zero in on the desired item to take a look before purchasing it,” says Mr Joshi. So for purchasing a LCD or a washing machine, which may take about 45 minutes on the floor, catalogues help reduce transaction time, which means fast turnaround during peak hours. Croma brings out a catalogue every alternate month, with offers on around 200 products for a specific period.

Catalogues, as a promotional tool, offers two benefits — it helps create brand recall and allows retailers to promote certain offers and promotions for products. “It helps in advertising new product range on offer and services like extended warranty schemes,” explains Mr Joshi. Hypercity used catalogue to good use when it started operations way back in 2006, says Hypercity CEO Andrew Levermore.

“By using catalogues, retailers can eliminate catchment limitations and hope to cater to a bigger audience,” says AT Kearney principal (consumer & retail practice) Hemant Kalbag. Big Bazaar had initiated catalogue programme some years back, but discontinued it as the format grew bigger and using mass media became a viable option. “But now promotional effort is also necessary. It complements our mass media activity. Catalogues help in local area activation as the categories within a store has grown with a lot more SKUs added than before,” explains Mr Malhotra.

Typically, catalogues are distributed as newspaper inserts, stocked within the store or distributed in and around the catchment area. But using a blanket bombing approach to distribute them often doesn’t lead to desired results. What’s needed is a more focussed approach where retailers can use their existing database and customise accordingly.

“For any retailer with a large customer loyalty scheme database, mailing these leaflets to this base is very effective. Newspaper inserts are helpful if you want to target a specific customer profile. The worst results in our case come from a blanket delivery of leaflets into an area,” says Mr Levermore.

There are possibilities of creating synergy between catalogues and other mediums like phone-ins and internet, but in India it is still sometime away. “When it involves high-ticket purchases, customers still want experience the product before purchasing.

Certain consumer segment, as the market evolves, can look at phone-in or internet after browsing through the catalogue,” explains Mr Kalbag. In the Indian retailing arena, trial and error is the norm. Looks like catalogue marketing will also go through stages of evolution as well in the time to come.

43. Marks & Spencer, Reliance Retail Announce JV In India

18 April, 2008

Britain's clothing and food retailer Marks & Spencer will set up of a joint venture firm with Mukesh Ambani-led Reliance Retail at an investment of 29 million pounds (around Rs 230 crore) to mark its foray into India.

The British company will hold a 51 per cent stake in the JV, to be named Marks and Spencer Reliance India Pvt Ltd, while the remaining will be with Reliance Retail.

"India is a very exciting opportunity for Marks & Spencer and a market where there is the potential for M&S to become a major retail brand. Reliance Retail is the ideal partner for us to accelerate our expansion and create the opportunity to open much bigger M&S stores," Marks & Spencer Chief Executive Stuart Rose said in a statement.

The new joint venture will have the right to operate Marks & Spencer stores in India, selling items such as homewares and clothing for women, men and children. It will aim to open at least 50 new stores in the country over the next five years.

Planet Retail, Marks & Spencer's existing franchise partner in India, will continue as a franchisee in respect of the 14 existing stores.

The announcement is part of Marks & Spencer's plans to grow its international business to 15-20 per cent of group revenues within the next five years.

The Chief Executive Officer of Marks and Spencer Reliance India Pvt Ltd will be Mark Ashman, while Chief Financial Officer will be Jatin Luthra.

"M&S is a very well respected brand globally. At Reliance, we have always strongly believed in the power of the Indian consumer market," Reliance Industries Chairman Mukesh Ambani said.

44. Bharti Retail Opens Its First Store 'Easy Day'

16 April, 2008

Bharti Retail Ltd, a subsidiary of Bharti Enterprises, has launched its first food and grocery stores ahead of the roll-out of its wholesale centres that are being set up with Wal-Mart Stores Inc.

Bharti Retail said on Wednesday it had opened three Easy Day stores selling groceries, personal care and household products in Ludhiana in western Punjab state. Bharti Retail aims to spend $2.5 billion by 2015 in multiple-format stores including hypermarkets and supermarkets, that will compete with Pantaloon Retail India Ltd, the Aditya Birla Group, RPG Group and Reliance Industries.

Bharti Enterprises also has an equal venture with Wal-Mart for wholesale cash-and-carry and back-end supply chain management. The venture will launch the first store by the end of 2008 and aims to open 10 to 15 centres over seven years. The high cost of real estate was a challenge, Managing Director Rajan Mittal told Reuters recently.

The Easy Day neighbourhood stores, measuring 2,500 to 4,500 sq. ft., were offering jobs to vendors of fruits, vegetables and meat, as well as to housewives and retired people, Bharti Retail said in a statement. "These initiatives will help facilitate inclusive growth in communities in which its stores operate," it said.

It may also help mitigate concerns about job losses from the growth of modern retail in India, where only about 3 percent of the retail industry is in the hands of large companies. The tightly-controlled industry, estimated at about $350 billion, is forecast to nearly double in size by 2015.

Foreign multiple-brand retailers are currently only allowed wholesale and franchise operations in India. Germany's Metro AG and Shoprite Holdings have wholesale centres, while France's Carrefour and Tesco Plc are also in talks for similar deals.

Bharti Opens Its First Retail Store ‘Easy Day’

16 April, 2008

Bharti Retail, a subsidiary of Sunil Mittal-promoted Bharti Enterprises, on Wednesday launched its operations by opening first store in Ludhiana, Punjab.

The stores, known as 'Easy Day', would be a one-stop shop to cater to every family's day-to-day needs, company officials said, adding that "it will bring together a relevant and wide product range, good quality products and great-in-experience and service-all under one roof".

The store would sell personal care products, stationary, household articles, hosiery items, daily-need groceries like staples, processed foods, bakery and diary products, meat and poultry, and fresh produce.

The company had earlier announced an investment of up to 2.5 billion dollars (Rs 10,000 crore) by 2015 in retail operations including multi-format retail outlets across all cities in India that have population of over one million.

Announcing the road map for its retail ventures in 2007, Rajan Mittal, Joint Managing Director of Bharti Enterprises, had said that Bharti was looking at approximately 10 million square feet of retail experience throughout the country and employing about 60,000 people.

Wednesday's launch is exclusive from Bharti's proposed joint venture with US retailer WalMart for the back-end operations.

Bharti-WalMart joint venture is likely to kick off its cash and carry (wholesale) business in the third quarter of 2008.

Under this, the two would sell products only to other retailers and not directly to the consumers, as this is not allowed under the existing guidelines.

In its Ludhiana store, Bharti has employed people from the local communities and employees at the outlet have been provided intensive and structured training by Bharti Academy of Retail, which has been set up by Bharti Retail.

So far the academy has trained about 1,800 people.