The last two years all apparel brands were reeling because of the
impact of the retail slump. ITC’S midsized men’s wear apparel brand
JOHN PLAYER’S also had to shut down 30 of its
exclusive stores which were opened with miscalculated & overzealous
planning during the preceding boom period. But now the company is
once again on an expansion mode with clear strategy.
According to ITC’s chief-executive. Mr.Atul Chand john player’s being a midsize brand The Company’s aim is to increase the responsiveness and to bring it closer to the consumers. Company is now set to open 75 new stores by this month end focussing on small cities with 1-5 lakh population. The new stores which are to be opened would be smaller to increase the profitability with smaller stores. Another reason is the display facility of entire range in stores such as Denims, Jackets etc apart from shirts; this facility is not available in the 1000-1100 multi brand stores.
Company is endorsing RANBIR KAPOOR as its brand ambassador to position itself from semi-formal to casual and to go in sync with generation Y, The company plans to make the new star endorser the epicentre of its brand communication to be able to connect to dynamic youth of today and achieve estimated sales of 200-250 crore rupees. In the coming few months all expectations of the company is leaned on its new Star icon RANBIR KAPOOR.
India's fiscal deficit up by 23%
India's fiscal deficit has gone up by 23% to Rs. 3.80 lakh Cr. in the first eleven months of this fiscal mainly because of the overruns due to the stimulus measures taken by the government during the slowdown last year.
Lets look back to the history , when in 1930 there was the great depression in the world economy at that time Keynes came up with a solution in his great piece of work "The General Theory" that if at the times of recession government provide investments then it helps in increase in demand and overcoming from the situation of recession , same thing can be seen here but now we can also see the drawbacks of the same coming up in the form of Inflation, fiscal deficit and many more .
To deal with such situation now government is coming up with various measures such as in the budget 2011, the government has raised excise duty by 2% to 10% and enhanced tax rates on other products making consumer goods like cars etc, apart from this there are disinvestment polices as well.
SEBI MAY GET POWER TO MONITOR USE OF IPO FUNDS
The new companies bill will give SEBI the power to look into the power to look into the end use of Initial Public Offering (IPO).In an official discussion SEBI said that according to the Section 55A of company’s act, it has only the power to look into the issues of IPO and not beyond that. But some changes are about to be made in this regard. According to SEBI guidelines, at present the monitoring agency is required only for IPO’S of over rs. 500 cr. As the cost involved is high, but now in order to enhance the level of transparency it has suggested that all the companies with IPO’s of even less than rs 500cr should also be monitored. The monitoring agency involved here are the banks or the other financial institutions who will be appointed by the company itself who is going for an IPO. It has been left to SEBI to change its guidelines and also see that all the IPO have a monitoring agency .These steps are being taken because there were complaint about the
mis-utilisation of the money in the IPO’s of less than rs500 cr.
As a solution all IPO’S should have a monitoring agency that will give its report to SEBI and all the shareholders on the use of IPO money. This will help in avoiding the use of money in illegal activities such as terrorism, smuggling or some of the personal use. If it is properly inforced then it will create a positive impact on the market and will also boost the investor’s confidences.
Beside these the government should setup Fund Utilization and Monitoring Agency Authority of India that will look into the use of all the fund raising activities.
mis-utilisation of the money in the IPO’s of less than rs500 cr.
As a solution all IPO’S should have a monitoring agency that will give its report to SEBI and all the shareholders on the use of IPO money. This will help in avoiding the use of money in illegal activities such as terrorism, smuggling or some of the personal use. If it is properly inforced then it will create a positive impact on the market and will also boost the investor’s confidences.
Beside these the government should setup Fund Utilization and Monitoring Agency Authority of India that will look into the use of all the fund raising activities.
TN's next bet; e-component making
Chennai is emerging as a major manufacturing hub for electronic hardware. But 75%-85% of the components required for this industry are imported. So Tamil Nadu feels there is an immense scope in the local manufacturing of these components.
Of the top global electronic manufacturing service(EMS) producers , Foxconn , Flextronics and Sanmina have chosen Chennai to locate their facility. Other projects attracted include Samsung,Dell,Nokia-Siemens,Motorola etc. As of now this industry has attracted an investement of 8000 crore.
Nokia set up its first plant in Chennai in 2006. After that they expanded it twice making Chennai facility largest in the world. Studies by Nokia prove that Chennai is most cost effective and competitive than even china.
This industry can generate employment for 45000 persons in future. Currently Chennai is known as the auto capital of Asia wit a total investment of $4.5billion. Similarly electronic manufacturing industry has the potential to make our country a global power house.
Of the top global electronic manufacturing service(EMS) producers , Foxconn , Flextronics and Sanmina have chosen Chennai to locate their facility. Other projects attracted include Samsung,Dell,Nokia-Siemens,Motorola etc. As of now this industry has attracted an investement of 8000 crore.
Nokia set up its first plant in Chennai in 2006. After that they expanded it twice making Chennai facility largest in the world. Studies by Nokia prove that Chennai is most cost effective and competitive than even china.
This industry can generate employment for 45000 persons in future. Currently Chennai is known as the auto capital of Asia wit a total investment of $4.5billion. Similarly electronic manufacturing industry has the potential to make our country a global power house.
Belkin is planning to launch its innovative products in India
Hello friends, This is the news of 29th march-2010 from "THE HINDU".
Belkin is planning to launch its innovative products in India.
Belkin International is a global manufacturer of computer hardware that specializes in connectivity device. This company sells both the consumer and the commercial business-to-business market, with various product lines including routers, ipod, switches, hubs (USB and computer network), cables, iphone accessories, mobile computing accessories, KVM switches, racks and enclosures, and other peripherals.
The company was founded in 1983 in Howthorne, California, by current CEO Mr. Chet Pipkin. It has twice made the Inc. magazine's list of 500 fastest-growing privately held companies in the United States. At present, Belkin is headquartered in Compton, California.
This US-based company is focussing on home and small entrepreneurs to corporate and business to expand its base in India. The company has already done $5 milion worth of sales with current sales of over 70,000 varied products every month. Currently, company has 150 products across various verticals, and they will take this number of 500 to boost sales. They are expecting $10 million by next fiscal and sales would jump to $100 million by 2013-14. Apart from launching the entire range of innovative products, the company would be investing heavily on building infrastructure. one of the Innovative product is a unique "power on the go" device i.e AC anywhere-with USB charging that charges small batteries for mobile phones, cameras, ipods and DVD-players from car's cigarrete lighter. Company is also focussing structured cabling business strategy so they are introducing the entire range of copper and fibre structured cabling of solution.
Belkin is planning to launch its innovative products in India.
Belkin International is a global manufacturer of computer hardware that specializes in connectivity device. This company sells both the consumer and the commercial business-to-business market, with various product lines including routers, ipod, switches, hubs (USB and computer network), cables, iphone accessories, mobile computing accessories, KVM switches, racks and enclosures, and other peripherals.
The company was founded in 1983 in Howthorne, California, by current CEO Mr. Chet Pipkin. It has twice made the Inc. magazine's list of 500 fastest-growing privately held companies in the United States. At present, Belkin is headquartered in Compton, California.
This US-based company is focussing on home and small entrepreneurs to corporate and business to expand its base in India. The company has already done $5 milion worth of sales with current sales of over 70,000 varied products every month. Currently, company has 150 products across various verticals, and they will take this number of 500 to boost sales. They are expecting $10 million by next fiscal and sales would jump to $100 million by 2013-14. Apart from launching the entire range of innovative products, the company would be investing heavily on building infrastructure. one of the Innovative product is a unique "power on the go" device i.e AC anywhere-with USB charging that charges small batteries for mobile phones, cameras, ipods and DVD-players from car's cigarrete lighter. Company is also focussing structured cabling business strategy so they are introducing the entire range of copper and fibre structured cabling of solution.
NEWS ANALYSIS-RUSSIA TO REVIEW BAN ON EXPORT OF INDIAN BOVINE MEAT.
A russian expert team is likely to visit india shortly to study the situation on the ground and review ban on export of indian bovine meat to russia.ou union agriculture minister mr sharad pawar said he had taken up the problems on expert of indian farm produce to russiawith his russian counterpart yelena skrynikduring thier bilateral meeting of agriculture ministers from BRIC countries. we all know that there is lotof restriction on export to russia . Russian rules and regulation are stricter than internationally accepted requirement .Russsia have imposed several temporary ban on india exports bovine and poultry t INDIAN plant produceand is still to open it's market to indian meat.India exports bovine and poultry to 60 countries including in europe .I think there is tremendous potential for export to russia. It's quite evident from the fact that russia imported 6,00,000 tones of poultry and one million tonnes of meat.Russian in turn wants to export grains to india but mr sharad pawar has explain to yelena skrynik that since we had a bumper crop last year so india is not planning any wheat import but india could import pulsesand oilseeds since there is a shortfall in the production of it and prices of oilseed and pulses are going higher and higher so we can import from russia, this will help india in checking food inflation to certain extent. this will go a long way improving india and russia business relation.
Super auto's disinvestment in Russia
NEWS: Super auto to pull back its stake in russia venture
Tuesday March 30, 2010, Economic Times, Page no. 8
Super auto to pull back iots stakes in russian venture. Super auto is a Chennai based auto component tier-1 supplier, has decided to pull back its entire 40% stake in venture Arya Super auto forge. It manufactures cold forge components for automotives Oil and Gas industries in Russia and Overseas .
Five years ago, Super auto made a distinction of being the first Indian Engineering company to establish a manufacturing unit in Russia. The total investment of Rs 160 Cr was employed in this project.
Now they are willing to disinvest 40 % of stakes that is Rs 64 Cr. the reasons behind this is firstly, they want to focus on domestic market which is evolving. Secondly, global slowdown. Arya Super auto forge got an order of Rs 16 Cr for past 4 concecutive years but in 2008 they only got an order of Rs 4.5 Cr which was a drastic change according to the company and now they are planning in bringing back the money to India
Tuesday March 30, 2010, Economic Times, Page no. 8
Super auto to pull back iots stakes in russian venture. Super auto is a Chennai based auto component tier-1 supplier, has decided to pull back its entire 40% stake in venture Arya Super auto forge. It manufactures cold forge components for automotives Oil and Gas industries in Russia and Overseas .
Five years ago, Super auto made a distinction of being the first Indian Engineering company to establish a manufacturing unit in Russia. The total investment of Rs 160 Cr was employed in this project.
Now they are willing to disinvest 40 % of stakes that is Rs 64 Cr. the reasons behind this is firstly, they want to focus on domestic market which is evolving. Secondly, global slowdown. Arya Super auto forge got an order of Rs 16 Cr for past 4 concecutive years but in 2008 they only got an order of Rs 4.5 Cr which was a drastic change according to the company and now they are planning in bringing back the money to India
NEW LOCATIONS FOR THE FAST FOOD JOINTS
The economics Times- March 29,2010
In the fast moving life style of India,the fast food sector now concentrating on upper middle class people.they target on airports,railway stations etc.
McDonald plans to open 40 outlets this year.They are planning to invest Rs.120cr.They are mainly focusing on airports.The new Delhi based fast food company recently opened 10 Express Kiosks at different locations in Delhi and plans to scale it up to 100 in the next year.
Cafe Coffee Day now operates in all major airports and now plans to expand its reach to smaller airports too.Encore hotel have a tie up with HPCl to start food courts in HP petrol pumps.
Kamats Restaurants opens a chain of restaurants along the highways. Himachal Pradesh Agro Industry Corporations(HPAIC) are planning to sell fruit based food products in the railways.
Quick service resturants business at airports in India is worth Rs.400cr and is groeing bu around 25% annually.
fast food sector is tapping the untapped areas and they are expanding.They are investing cores of rupees into the market.The only problem is that getting license,if they clear that there will be a sudden boom in this sector and lots of job oppurtinties will be there.
In the fast moving life style of India,the fast food sector now concentrating on upper middle class people.they target on airports,railway stations etc.
McDonald plans to open 40 outlets this year.They are planning to invest Rs.120cr.They are mainly focusing on airports.The new Delhi based fast food company recently opened 10 Express Kiosks at different locations in Delhi and plans to scale it up to 100 in the next year.
Cafe Coffee Day now operates in all major airports and now plans to expand its reach to smaller airports too.Encore hotel have a tie up with HPCl to start food courts in HP petrol pumps.
Kamats Restaurants opens a chain of restaurants along the highways. Himachal Pradesh Agro Industry Corporations(HPAIC) are planning to sell fruit based food products in the railways.
Quick service resturants business at airports in India is worth Rs.400cr and is groeing bu around 25% annually.
fast food sector is tapping the untapped areas and they are expanding.They are investing cores of rupees into the market.The only problem is that getting license,if they clear that there will be a sudden boom in this sector and lots of job oppurtinties will be there.
Disinvestment policy of Public Sector Companies
Recenty government came up with the disinvestment plan of three public sectors companies-NTPC, REC and NMDC to raise about 23000 Cr. But the FPO of all the three companies had a poor response from the retail investors and High net worth investors. Finally, local institutions have to come up to bailout the three PSUs. The major reasons for the poor response of the issue were:-
1.Use of French auction method:- Under the French auction method, institutional investors are free to bid above a certain floor price and the allotment would be on price- priority basis.
2.Poor Selection of Investment bankers on the basis of their bids.
3.Difference between the offer price and the market price was so narrow that it made no sense for the retail investors to invest.
Impacts:-
After the poor response of the FPO, disinvestment department reviewed the performance of the investment bankers and decided:-
1.Under the new set of rules being considered, 70% weight age will be given to the quality aspects of the Investment bank and only 30%to the cost of transactions fee quoted.
2.Use of pure auction route instead of French auction method:- In the pure auction, only minimum price is given to institutional investors with no ceiling. QIBs can bid any price above the floor price, but the retail investors and high net worth investors will receive the shares at the minimum price only.
3.15-20% discount could be given to the retail investors in order to attract them and set the right trend for the future disinvestments.
1.Use of French auction method:- Under the French auction method, institutional investors are free to bid above a certain floor price and the allotment would be on price- priority basis.
2.Poor Selection of Investment bankers on the basis of their bids.
3.Difference between the offer price and the market price was so narrow that it made no sense for the retail investors to invest.
Impacts:-
After the poor response of the FPO, disinvestment department reviewed the performance of the investment bankers and decided:-
1.Under the new set of rules being considered, 70% weight age will be given to the quality aspects of the Investment bank and only 30%to the cost of transactions fee quoted.
2.Use of pure auction route instead of French auction method:- In the pure auction, only minimum price is given to institutional investors with no ceiling. QIBs can bid any price above the floor price, but the retail investors and high net worth investors will receive the shares at the minimum price only.
3.15-20% discount could be given to the retail investors in order to attract them and set the right trend for the future disinvestments.
GROWTH OF MULTIPLEX INDUSTRY IN INDIA
In India multiplex industry is in nascent stage.As the world watches economy closely,India's cities are evolving and the plex industry is among the many sectors looking at tapping investment potential.
In the early 90's Ajay bijili invested Rs 45-50 lakh in his priya theatre to introduce dolby system.In 1997 India's first mutiplex at Saket delhi named pvr came into being.Five years before Anil ambani led entertainment group(then adlabs,now reliance media works) bought a controlling stake in Manmohan Shetty's adlabs in a whooping Rs 350 crore deal,along with their 16 multiplex screens the industry has not seen big buzz deal still, shravan shroff decided to sell his screen dream-fame(96 screens)to Inox and also small deals are going on inside mutiplex industry.this is due to the forecasting of there players in the industry because of huge untapping future potential.
according to the FICCI-KPMG 2010 report on the media and entertainment industry,by 2013,the number of plex screens in India is likely to cross 1600.60% of Indian theatrical revenves for hollywood and bollywood films,come from the plexes while for south Indian films its 25%.present investments is about 2220 crore about 850 screens and five years ago it was 497 crore.major players are BIG CINEMAS CINEMAX INOX FAME and PVR
In the early 90's Ajay bijili invested Rs 45-50 lakh in his priya theatre to introduce dolby system.In 1997 India's first mutiplex at Saket delhi named pvr came into being.Five years before Anil ambani led entertainment group(then adlabs,now reliance media works) bought a controlling stake in Manmohan Shetty's adlabs in a whooping Rs 350 crore deal,along with their 16 multiplex screens the industry has not seen big buzz deal still, shravan shroff decided to sell his screen dream-fame(96 screens)to Inox and also small deals are going on inside mutiplex industry.this is due to the forecasting of there players in the industry because of huge untapping future potential.
according to the FICCI-KPMG 2010 report on the media and entertainment industry,by 2013,the number of plex screens in India is likely to cross 1600.60% of Indian theatrical revenves for hollywood and bollywood films,come from the plexes while for south Indian films its 25%.present investments is about 2220 crore about 850 screens and five years ago it was 497 crore.major players are BIG CINEMAS CINEMAX INOX FAME and PVR