ITV

Category: Brands

  • PVR to buy back L Capital’s 10% stake in company

    PVR to buy back L Capital’s 10% stake in company

    MUMBAI: Multiplex chain PVR has entered in a share purchase agreement with private equity (PE) fund L Capital Asia to buy back its entire investment in PVR. L Capital Asia, the PE arm of Louis Vuitton Moët Hennessy (LVMH), owns a 10 per cent stake in the company.

     

    In August 2012, PVR had issued 28,85,000 equity shares of face value of Rs 10 each at a premium of Rs 190 per share of aggregating to Rs 57.70 crore to L Capital Eco, a subsidiary of L Capital Asia. In addition, L Capital Eco had also invested a sum of approximately Rs 50.09 crore in PVR Leisure, which is a subsidiary company of PVR. Thus, the total investment by the company in the multiplex chain was Rs 108 crore.

     

    PVR Leisure houses mall entertainment, gaming arena, food courts and other leisure entertainment formats. PVR’s investment in the bowling company – PVR bluO Entertainment – is also through PVR Leisure. PVR bluO is a 51:49 joint venture between PVR and Major Cineplex Group of Thailand.

     

  • Mattel reports lower results for Q4-2015 and FY-2014; CEO Stockton takes the fall, quits

    Mattel reports lower results for Q4-2015 and FY-2014; CEO Stockton takes the fall, quits

    BENGALURU:  Mattel, Inc (Mattel) reported a 6 per cent drop in worldwide sales from Q4-2014 (quarter ended 31 December 2014, current quarter) to US$ 1994 million from US$ 2113.2 million in Q4-2014. Worldwide sales for FY-2014 (year ended 31 December 2014) fell 7.3 per cent to US$ 6023.8 million from US$ 6484.9 million in FY-2013.

     

    For the quarter, the company reported net income of US$ 149.9 million, or US$ 0.44 per share, which includes a negative impact of US$ 0.05 per share from MEGA Brands integration costs and a negative tax impact of US$ 0.03 per share, compared to last year’s fourth quarter net income of US$ 369.2 million, or US$ 1.07 per share. For the year, the Company reported net income of US$ 498.9 million, or US$ 1.45 per share, which includes a negative impact of US$ 0.16 per share from MEGA Brands acquisition and integration costs 3 and a tax benefit of US$ 0.13 per share, compared to last year’s net income of US$ 903.9 million, or US$ 2.58 per share, which included a tax benefit of US$0.09.

     

    Bryan Stockton resigned from his position as chairman and CEO, as well as from the board of directors of Mattel on 26 January 2015. The company announced Christopher Sinclair’s appointment as Mattel chairman and Interim CEO on the same day.

     

    “We are disappointed with our results but moving forward with a heightened sense of urgency to make the necessary changes to enhance our brand relevance and improve our execution,” said Sinclair. “Over the next few months, I will be focused on working with the management team to thoroughly evaluate the business in order to identify how we can improve our top-line performance and drive profitability. I am confident in our ability to revitalize our brands and our business and fully committed to delivering greater value for shareholders.”

     

    Sales by Brand

     

    Mattel Girls and Boys Brands

     

    For the fourth quarter, worldwide gross sales for Mattel Girls & Boys Brands were US$ 1.23 billion, down 9 percent versus the prior year. Worldwide gross sales for the Barbie brand were down 12 per cent. Worldwide gross sales for Other Girls brands were down 3 per cent. Worldwide gross sales for the Wheels category, which includes the Hot Wheels and Matchbox brands, were up 2 per cent. Worldwide gross sales for the Entertainment business, which includes Radica and Games, were down 21 per cent.

     

    For the year, worldwide gross sales for Mattel Girls & Boys Brands were US$ 3.90 billion, down 10 percent versus the prior year. Worldwide gross sales for the Barbie brand were down 16 per cent. Worldwide gross sales for Other Girls brands were down 2 per cent. Worldwide gross sales for the Wheels category, which includes the Hot Wheels and Matchbox brands, were up 1 percent. Worldwide gross sales for the Entertainment business, which includes Radica and Games, were down 20 per cent.

     

    Fisher-Price Brands

     

    Fourth quarter worldwide gross sales for Fisher-Price Brands, which includes the Fisher-Price Core, Fisher-Price Friends and Power Wheels  brands, were US$ 578.9 million, down 11 percent versus the prior year. For the year, worldwide gross sales for Fisher-Price Brands were US$ 1.84 billion, down 13 per cent versus the prior year.

     

    American Girl Brands

     

    Fourth quarter gross sales for American Girl Brands, which offers American Girl-branded products directly to consumers, were US$ 318.3 million, down 4 percent versus the prior year. For the year, gross sales for American Girl Brands were US$ 620.7 million, down 2 percent versus the prior year.

     

    Construction and Arts & Crafts Brands

     

    Construction and Arts & Crafts Brands

     

    Fourth quarter gross sales for Construction and Arts & Crafts Brands, which includes the MEGA BLOKS and RoseArt brands, were US$ 130.0 million. For the year, gross sales for Construction and Arts & Crafts Brands were US$ 315.0 million. Mattel acquired MEGA Brands Inc. on 30 April 2014.

  • CarDekho.com raises $50 million in funding led by Hillhouse Capital

    CarDekho.com raises $50 million in funding led by Hillhouse Capital

    MUMBAI: CarDekho.com has closed its second round of funding and has raised $50 million. The funding was led by Hillhouse Capital with participation from Tybourne Capital and Sequoia Capital.

    The single transaction funding was concluded early this week. Elara Capital acted as the exclusive financial advisor to the transaction. With this the parent company Girnar Software is now valued at $300 million.

    Sharing plans about this venture GirnarSoft CEO and co-founder Amit Jain believes that together CarDekho.com and Gaadi.com are by far the largest players in online auto classifieds space by revenue and traffic in the country. Jain’s vision is to be company with global footprint through its innovative products and services.

    “This is the largest quantum of fund raise in this segment in India so far. We see the second round of investment as an endorsement of our strategy and progress so far. Our revenues have grown three-fold since 2013 when we received our first round of funding from Sequoia, and we are doubling our lead generation Y-O-Y. This is the time we are looking to rapidly expand our business and therefore the funding adds to our fast paced growth in the online auto portal segment,” added Jain.

    Jain feels that this is a very exciting time for the company and a high point in the Indian automobile industry.

    “With this funding we have plans to enhance the technology and services of CarDekho.com along with increased focus on brand building and marketing initiatives of the company. As the #1 auto portal of the country, it is also our responsibility to develop the category by providing the best offerings to consumers, best services for dealers and top notch support to OEM manufacturers,” said Jain.

    Commenting on the investment, partner of Hillhouse Capital David Rhee stated that it observes a tremendous growth opportunities in the online automobile classified market in India. “CarDekho, as the clear leading player in this space, is the best positioned to take advantage of this market. We are in the early stages of the development of the auto industry and its transition to online. We are excited to be partnering with such an exceptional management team to continue to build and grow this business over the long term,” Rhee said.

    Tybourne Capital portfolio manager Eashwar Krishnan added, “We have a substantial amount of capital invested across global classified assets and are excited to add CarDekho to our portfolio. We view CarDekho as a direct comparable to Autohome in China (another Tybourne investment), and as the leader in the space, we expect CarDekho to capture a substantial portion of the auto classifieds market in India. We look forward to partnering with the management team as the company moves into its next phase of growth.”

    Sequoia Capital partner Shailesh Lakhani said, “CarDekho has redefined the purchase experience for car buyers in India. Led by Amit and Anurag, the company has assembled one of the best internet teams in India. We are excited to welcome Hillhouse and Tybourne as new investors to CarDekho and their support as we continue the journey to building a large internet auto company.”

     

  • PVR launches multiplex in Jalandhar

    PVR launches multiplex in Jalandhar

    MUMBAI: After launching its new multiplex in Bhopal, Madhya Pradesh, PVR Cinemas has now launched a new multiplex in Jalandhar, Punjab.

     

    The launch is line with PVR’s strategy of PAN India expansion with an aim to increase its presence in major cities.

     

    The new multiplex in Jalandhar has five screens with latest sound and projection system.

     

    With the opening of this multiplex, PVR’s total screen count now stands at 462 screens at 104 locations across 44 cities in 14 states and one Union Territory.

     

  • Emami acquires controlling stake in Australia-based personal care company

    Emami acquires controlling stake in Australia-based personal care company

    KOLKATA: Kolkata-heaquartered fast moving consumer goods (FMCG) major Emami Ltd has acquired a controlling stake of 66.67 per cent in Australia-based personal care products firm Fravin.

     

    The stake in the Australian firm has not only opened the market further for the Emami group’s flagship FMCG firm Emami, but has also given it access to a range of organic and natural personal care products.

     

    The partial acquisition was done through one of its UAE-based subsidiary Emami Overseas FZE. Post this acquisition, Fravin and its three subsidiary companies have become subsidiaries of Emami.

     

    “The Fravin acquisition is in sync with the company’s strategy to grow aggressively through both organic and inorganic routes in India and overseas. This is a significant step for the organisation as the acquisition marks Emami’s entry into organic personal care products, where we were not present earlier,” said company director Harsh Agarwal.

     

    Agarwal said that the market for organic personal care products, which was around $ 7.6 billion in 2013, was expected to double in six years.

     

    It is learnt that Fravin will be a part of Emami’s international business division, which contributes around 14 per cent to the FMCG business.

     

    “Rising concerns for health safety, increasing green consciousness and growing awareness of the consumers about the hazards of using products with synthetic chemicals have fuelled the demand for organic personal care products,” he said.

     

    Promoted by Peter Francis, Fravin Group manufactures hair care and skin care products that are certified organic by various certification bodies in Australia and US. The firm has research and development (R&D) and manufacturing plant at Adelaide, the capital city of South Australia.

     

  • Private cos should help make Digital India a reality: Ravi Shankar Prasad

    Private cos should help make Digital India a reality: Ravi Shankar Prasad

    NEW DELHI: Communications and Information Technology minister Ravi Shankar Prasad today said that the centre will take the help of private companies to deeply entrench Prime Minister Narendra Modi’s “Digital India” programme in the system so that it starts yielding results.

     

    Inaugurating the 23rd Convergence India 2015 expo organized by Exhibitions India, Prasad said, “India is in the midst of a digital revolution, and the government has unveiled new policies and regulations to accelerate adoption of ICT in key economic and strategic sectors to increase the competitiveness and productivity of the nation.”

     

    He noted that events like Convergence India provide an impetus to the ICT industry and will propel the nation forward.

     

    The three-day Convergence India Expo 2015, with the theme “Connecting India,” is showcasing emerging technologies from telecom, broadcast and the digital media, which will impact urban as well as rural India in a rapidly emerging digital, multi-screen converged world.

     

    The guest of honour, Minister of State for Science & Technology and Earth Sciences Y.S Chowdary added, “Today, the time has come to think about the development of rural India. There is a great need of digitizing each and every sector. Our department recently created an app, which guides fishermen, when to fish and when not to fish etc. The beauty of democracy is a rolling model; we need to create a blue print and then work towards the execution.”

     

    The other guests of honour present at the opening ceremony were Bharti Enterprise MD Manoj Kohli and Viom Networks Ltd chief mentor Umang Das.

     

    The expo will witness high-powered conferences with 120 CXO’s featuring visionaries from various sectors deliberating on topics such as “Digital India”, “Internet for All”, “Cloud solutions for businesses”, “TV white space and its utility for mobile services”, and “M2M Adoption”, etc.

     

    More than 1,200 conference delegates will exchange views and ideas with the speakers at the conference.

     

    The expo is supported by the Ministry of Communications & Information Technology, and is endorsed by the Ministry of Information and Broadcasting.

     

    Other noteworthy concurrent events taking place at 23rd Convergence India 2015 expo are the 2nd annual Telecom Summit 2015; 2nd annual FTTH Council Asia Pacific Summit; and the jury round of Aegis Graham Bell Awards, which recognise and honour industry leaders in the field of telecom, broadcast, media and entertainment.

     

    Exhibitions India group chairman Prem Behl said, “ICT is an important sector, which will play a vital role in contributing to Prime Minister Narendra Modi’s dream of a Digital India, Smart Cities, Make in India, Made in India, zero defect, zero effect, skill India, competitive India, ease of doing business in India etc., and showcase Indian talent to the world.”

     

    The 2015 exhibition has attracted over 400 companies and their CEOs from 30 countries including Australia, Canada, China, Japan, Norway, Singapore, South Korea, UAE, UK and USA to name a few, showcasing the latest trends and technologies in broadband, telecom, cable, satellite, digital India, cloud computing, VAS, LTE Networks etc. Over 15,000 trade visitors are expected to visit the expo over three days.

  • HUL to drive competitiveness of its brands

    HUL to drive competitiveness of its brands

    KOLKATA: Consumer goods major Hindustan Unilever Ltd (HUL) is looking at strengthening the core of its business and drive competitiveness of its brands in the market.

     

    “We continue to strengthen the core of our business and drive the competitiveness of our brands in the market. At the same time, we are leading market development in relatively nascent categories such as packaged foods and premium personal care with strong results,” said HUL chairman Harish Manwani.

     

    Talking about the packaged food segment, Kolkata-based Microsec Research said, “It was the fifth successive quarter of double digit growth in packaged foods segment, led by Kissan and Kwality Walls.”

     

    On brand investments, Manwani added: “Brand investments were sustained at competitive levels across all segments even as competitive intensity stepped up in the commodity linked categories.”

     

    It should be noted that from food and beverages to personal care, HUL’s brands are part of everyday life. “Our brands play a major part in helping us achieve our sustainable living aims of helping more than a billion people improve their health and well-being; halving the environmental footprint of our products and sourcing 100 per cent of our agricultural raw materials sustainably. Given the fast changing external environment, we are managing our business dynamically for sustained volume led growth and margin improvement,” the company said.

     

    From last two quarters, input costs were benign with a fall in crude oil prices and this has started to reflect in the lower cost of goods sold, the company further said.

     

    To pass on the benefits of reduced inputs costs, the FMCG major has reduced the prices of soaps and detergents, which accounted for around 50 per cent of its revenues in the last quarter.

     

    When a city based analyst was called, he said in the current quarter one can expect price cut in skin cleansing products and tea and other verticals, which did not see any price correction.

     

    Since price cuts are expected to take place in premium brands as well apart from mass brands, as the company hinted, HUL is aiming see consumers upgrading themselves, the analyst said.

     

    As per Microsec Research, Pureit delivered another good quarter of double digit growth led by the premium segment.

  • Royal Stag is now ‘India’s most valuable brand’

    Royal Stag is now ‘India’s most valuable brand’

    MUMBAI: Royal Stag, the leading whisky brand from Pernod Ricard India has been chosen as ‘India’s Most Valuable Brand’ in the liquor category in an in-depth ranking of Indian brands. The ranking was undertaken by one of Asia’s leading brand rating companies, World Consulting & Research Corporation (WCRC) in association with KPMG. 

     

    Royal Stag has been awarded “The 100 most valuable brands of the year” in the country in terms of innovation, aspiration and admiration from a shortlist of nearly 750 brands. The WCRC ranking is the largest multi-platform ‘brand trust’ and ‘loyalty benchmark’ project involving the most prestigious brands in the Indian market.

     

    Royal Stag, by virtue of its unique value propositions and attributes was adjudged as the leading brand, having successfully reinforced a profound and meaningful connect with its customers.  In line with the brand philosophy of “It’s your life, Make it Large”, Royal Stag, reaches out to consumers who believe in looking beyond materialistic success, and for whom it is important to earn stature, dignity and respect.

     

    Speaking about the award, Raja Banerji Assistant Vice President Pernod Ricard India said, “The award is a testament of the hard work that has gone into making Royal Stag – an iconic brand. I take this opportunity to thank everyone who has contributed in taking this brand to exhilarating heights. This was an outcome of a rigorous ranking exercise and we are pleased to be recognised as one of the best brands in the country. We are confident that Royal Stag will continue to power ahead with the same passion and commitment”

     

    Created in 1995, Seagram’s Royal Stag and Royal Stag Barrel Select (more recently in 2011) are the flagship brands of Pernod Ricard India. A delectable blend of Indian spirits and imported Scottish malt, Royal Stag set an industry benchmark by becoming the first liquor brand in India without artificial flavouring. With this award, Pernod Ricard intends to continue to its strategy of building strong premium brands.

  • Hitech Mobiles looks at Rs 500 crore turnover by FY16, set up assembling units at Rs 30 crore

    Hitech Mobiles looks at Rs 500 crore turnover by FY16, set up assembling units at Rs 30 crore

    KOLKATA: Kolkata-headquartered budget smartphone maker Hitech Cellphone (HCPL) is looking to achieve a turnover of Rs 500 crore by the end of next fiscal 2015-16 as opposed to Rs 200 crore reported last fiscal, eyeing more than 100 per cent growth.

     

    The company, which began mobile accessories business in Kolkata and grew to become a phone brand, is mulling setting up an assembling unit in West Bengal at an investment of Rs 30 crore. The idea of setting up an assembling unit here comes on the back of “uncertainty on import duty.”

     

    “Our present revenues are Rs 250 crore of which mobile phone sales account for Rs 200 crore and the rest comes from accessories. We are bullish about the growth prospects and aims to become a Rs 500 crore company in the coming fiscal,” said HCPL managing director Mohammed Gyasuddin.

     

    Hitech has expanded its product lines and reach, grew its revenue and market share as well.

     

    HCPL at present is working on importing cellphones from Shenzhen, China. It procures products from original equipment manufacturer (OEMs) and original device manufacturers (ODMs). “We sell around 20 lakh phones in the domestic market every month,” informed Gyasuddin.

     

    “We export to Nepal and Bhutan and we are planning to expand it to Bangladesh as well as Sri Lanka,” he said.

     

    Talking about the increased import duty, he said, “Previously, the import duty was two per cent and it went up to seven per cent. Now, we don’t know if it’ll shoot up more. In that case, we will assemble the phone here (in India) and we may either opt for West Bengal or Himachal Pradesh to set-up the final assembly plant.”

     

    When being asked about the markets they are betting on for growth, Gyasuddin said that the company is expecting major growth from upcountry areas in Bihar, Odisha, Andhra Pradesh, Karnataka, Kerala, Gujarat and Rajasthan among other markets.

     

    The company further said that the brand Hitech has a strong presence in rural and urban market. “Our monthly sales growth in rural and urban population is around 30 per cent and 20 per cent respectively. Moreover, our products are recognized all over India through our e-commerce and channel distribution partners,” he said.

  • Spencer’s to finalise e-commerce plan next fiscal, aims to increase private labels

    Spencer’s to finalise e-commerce plan next fiscal, aims to increase private labels

    KOLKATA: RP-Sanjiv Goenka Group’s Spencer’s Retail aims to finalise its e-commerce plan by April next fiscal (2015-16). Spencer’s Retail sector head Shashwat Goenka confirmed that prices at the brick and mortar stores and the e-commerce would be the same once the company offers the product online in April.

     
    Additionally, Spencer’s Retail, a CESC subsidiary, also said that it has decided to augment and increase its private labels, mostly in food and apparels.

     
    “We would freeze the e-commerce business model within next couple of months and implement it over a time period. We are likely to begin with a few categories of products for our on-line store,” Goenka said in Kolkata on Friday.

     
    To make a differentiation and to cut down logistics cost, the company would depend on local sourcing more than pan-India collection. “In West Bengal, we are focusing on local food items including varieties of fish and rice,” he said.

     
    It should be noted that within a short span of its operation, Spencer’s has become a family store since it offers regional flavours in the product vertical. “Spencer’s has decided to stress more on local sourcing and bring in regional flavours in the product baskets,” Goenka said.

     
    Talking about the plans for apparel section, he said, “In the apparel segment, we are looking for a new sourcing point in Kerala. We have developed seven apparel brands including men’s, women’s, kids and sports wear.”

    The retail chain is also looking to expand its chain but mainly through large-format in the range of above 25,000 square feet, said Goenka, explaining that all these efforts were geared to make Spencer’s profitable.

     
    Speaking about the company’s expansion strategy, Goenka said that Spencer’s would focus on expanding in the eastern and southern markets of the country. “We would also be present in the north, particularly in Uttar Pradesh and the National Capital Region,” he said.

     
    However, western region will continue to see a token presence in Gujarat.

    In the next fiscal 2015-16, Spencer’s is looking at commanding a presence in 12 – 15 large format hyper stores, with a majority of stores being in the eastern and southern regions.

     
    Currently, Spencer’s has around 125 stores in 36 cities including 33 hyper stores. The total store area now stands at over one million square-feet.

     
    For expansion, Spencer’s would spend approximately Rs 3 -5 crore for each hyper store. When asked about the funding for expansion, Goenka said, “CESC, our parent company, would fund the projects.”