ITV

Tag: Adi Godrej

  • Godrej Consumer Products lowers Q4-2014 ad spends by 36 per cent

    Godrej Consumer Products lowers Q4-2014 ad spends by 36 per cent

    BENGALURU: FMCG player Godrej Consumer Products Limited (GPCL) spent (-35.93) per cent less towards Advertising and Publicity (Ad & Pub spends) in Q4-2014 at Rs 145.78 crore as compared to the Rs 227.53 crore in the immediate trailing Q3-2013 and (-14.75) per cent lower than the Rs 171 crore in the year ago quarter (Q4-2013).

    However, the company spent 24.61 per cent more towards Ad & Pub in FY-2014 at Rs 832.97 crore as compared to the Rs 668.48 crore in the last fiscal (FY-2013). Overall, as per Fig 1 below, in terms of rupees spent, the company’s overall Ad & Pub spends trend (linear) upwards over the last eight quarters starting with Q1-2013 till Q4-2014. However, in terms of Ad and Pub spends in terms of percentage of Operating Revenue (Op Rev), the linear trend is downwards, the company is spending less as a percentage of its Op Rev towards Ad & Pub.

    The company’s Op Rev in Q4-2014 has fallen by (-2.56) per cent to Rs 1931.52 crore from Rs 1982.27 crore in Q3-2014, but is 12.34 per cent higher than the Rs 1719.39 crore in Q4-2013. GCPL’s FY-2014 Op Rev is 18.49 per cent higher at Rs 7602.41 crore as compared to the Rs 6416.30 crore in FY-2013.

    Overall, GCPL’s PAT for FY-2014 at Rs 759.73 crore is (-4.57) per cent lower than the Rs 796.10 crore in FY-2013. Q-o-Q, PAT at Rs 236.28 crore in Q4-2014 is 20.69 per cent higher than the Rs 195.77 crore in Q3-2014, but (-29.29) per cent lower than the Rs 334.14 crore y-o-y.

    As per Fig 2 below, GCPL’s Op Rev, PAT and PAT as percentage of Op Rev, all show an upward trend.

    In its India category review, the company has the following to say:

    Household Insecticides

    Sales growth returns back to normalcy at 17 per cent plus, well ahead of the category. GCPL continues to drive market share gains aided by success of Good Knight Fast card and HIT Anti Roach Gel. GCPL believes that the new launch Good Knight Xpress LV will bring further gains to GCPL franchise.

    Soaps

    Sales value grew at 1 per cent, well ahead of the category growth which is facing significant pressure in terms of consumer off take. Category de-grew both in value and volume terms in mid to high single digits respectively. GCPL has recently launched a new variant for Godrej No. 1 ‘Lavender and Milk Cream’and says that it has also started a 360 degree media campaign for Cinthol ‘Cool’ soap ahead of summers.

    Hair Colours

    Strong momentum in hair colours was maintained, delivering sales growth at 16 per cent plus despite anniversarisation of Expert Cr?me launch. Growth rates were significantly ahead of category growth rates. The company has also launched new packaging for Expert Advanced Gel based hair colours and a twin use pack for Expert Cr?me. GCPL has on going initiatives such as salon engagement programs, festival linked promotions, etc. to drive higher  consumption and penetration for the category continued to deliver healthy results.

    Aer

    GCPL says that Aer continues to do well aided by its consumer engagement initiatives. The product was launched in gel format for both click and twist format.

     GCPL chairman Adi Godrej’s quote

    “We have delivered robust performance in our India and in our international businesses this quarter, in a challenging market environment. Our focus on sustaining and extending leadership in our core categories has enabled us to grow significantly ahead of the market. Our innovations have delivered well ahead of expectations. Overall, our operating performance has been strong, with profits growing ahead of sales.”

    “Our India business delivered relatively healthy sales growth, amidst a slowdown in the household and personal care market. We have continued to gain market shares across categories, driven by new innovations and compelling marketing programs.”

    “Our international businesses also had a good quarter with significant improvements in profitability. Our teams have demonstrated great agility and resilience to deliver this market-leading performance.”

    “The overall macro outlook remains turbulent. While the pace of economic recovery remains uncertain, we are hopeful that consumer sentiment will become more positive and we will see better growth in the sector in the quarters ahead. We will continue investing judiciously for the longer term to improve our competitive position and emerge stronger than ever before. I am confident that with our clear strategic focus, our superior execution and our top notch team, we will continue to deliver industry leading results in the future.”

  • CII’s white paper suggests co-regulation to check misleading ads

    NEW DELHI: The solution to the problems posed by misleading advertisements is not to add one more legislation in the form of an Administrative Authority as proposed by the Department of Consumer Affairs but lies in co-regulation, according to the Confederation of Indian Industry.

    The CII has come out with a white paper on “Self-Regulation in Advertising in India- A critical Evaluation” issued by the CII National Committee on Marketing, according to which co-regulation between the Advertising Standards Council of India and regulators like DCA, Food Safety & Standards Authority of India (FSSAI) and Ministry of Information & Broadcasting was an effective solution.

    The paper was released today in the presence of CII National Committee on Marketing Chairperson Thomas Varghese, CII President Adi Godrej, KPMG Partner and Head FDCO Nandini Chopra who made a detailed presentation on the paper, former ASCI Chairman Sam Balsara, Centre for Media Studies Director P N Vasanti, and CII Director General Chandrajit Banerjee.

    Godrej urged the Department of Consumer Affairs to reconsider its recent proposal to set up a parallel Administrative Authority which we strongly feel will delay the process of consumer redressal and be counter-productive to its intent. Instead, we request them to consider partnering with and strengthening the current mechanism of self regulation through ASCI further, a win-win for consumers, industry and the Government.

    Co-regulation will ensure that ASCI and the government work together with all stakeholders to enforce compliance currently vested with ASCI but without any punitive powers. The whitepaper recommends only in cases of non-compliance of the Consumer Complaints Council’s (CCC) decisions, should the matter be referred to the related/ parent regulatory body for further required actions.

    The white paper, while appreciating measures taken by ASCI to check misleading ads, has suggested mandatory membership of ASCI for all industry players with exposure to advertising industry in India – the media vehicles, the advertisers and advertising agencies.

    It has also said that the ASCI Code should be integrated into statutory provisions: Sub rule (9) of rule 7 having Advertising Code of the Cable Television Network Rules, 1994 prohibits TV channels from carrying any advertisement that is in violation of the ASCI Code.

    Similar provisions may be introduced in other statutes like Press Council of India’s Advertising Code to ensure that advertisements while in conformity with the statutory provisions also adheres to the ASCI Code.

    The coverage of ASCI Code should be expanded to digital and social media to monitor digital and home shopping networks including outdoor advertising and mobile advertising. Large digital companies like Google, YouTube, and Twitter must join as members and compulsorily sign on to ASCI code.

    It has also made suggestions that have far reaching effect like the one to suspend ads pending enquirY. This is one of the major concerns, and therefore control is required on account of advertising with sexual overtones, religious underpinning, and delivery of magical remedies/promotions in the mushrooming Indian advertising industry.

    To stop airing such advertisements a special fast track process which involves temporary suspension of an advertisement, which prima facie causes harm to the society, pending final decision by CCC can be implemented, CCI has suggested in its white paper.

    Co-regulation between ASCI and DCA has been suggested as an effective solution instead of a new legislation. The committee has drawn a parallel with the successful model of Advertising Standards Authority (ASA) in UK, which does not possess any punitive powers but co-regulates with the government bodies to ensure smooth control over the misleading advertisements in that market.

    The paper also recommends building awareness about ASCI’s role and code amongst the stakeholders through actively leveraging various media vehicles. ASCI should supplement communication with key stakeholders- industry, regulators, consumers and activists.

    To stimulate the discussions at national level, all the corporate and industry associations should engage with the Indian advertising industry to support, defend and engage actively on the Code of Standards for Advertising, in India.

    The white paper specifically says areas where support is required include Industry members promoting the code on all occasions; and the decisions of the Consumer Complaints Council should be respected and complied with in relation to current and future campaigns.

    The paper further stresses on an incessant drive to improve the complaints handling system with an emphasis on continuous review and improvements to the system. This will revitalise ASCI as a more efficient and transparent Self-Regulatory Organisation.

  • CNBC-TV18 launches new series with Nandan Nilekani

    CNBC-TV18 launches new series with Nandan Nilekani

    MUMBAI: CNBC TV18 is launching a special weekly series Imagining India & Nandan Nilekani from 13 June. The show will air every Saturday at 10 pm and on Sundays at 7 pm.

    The show marks Nilekani, following on his bestselling book ‘Imagining India,’ as guest anchor with CNBC TV18 executive editor Shereen Bhan.

    The pair will be joined by guests from a gamut of fields including business leaders, venture capitalists, economists, writers, sociologists and thought leaders to discuss issues ranging from Indian infrastructure to globalisation and India, the Indian demographic dividend to primary education and more.

    Some of the guests are Godrej Group chairman Adi Godrej, author Sanjeev Sanyal, Feedback Ventures chairman Vinayak Chaterjee, HT Media chairperson Shobhana Bhartia, scriptwriter Jaideep Sahni (Chak De India and Khosla Ka Ghosla), Future Group chief economist and strategist Roopa Purshottam and sociologist and author Dipankar Gupta.

    CNBC TV18 and CNBC Awaaz VP marketing Neel Chowdhury said, “Nilekani is clearly a visionary leader, as was evident from the success of his book. We’re happy that India’s sharpest minds chose CNBC TV18 as a platform to debate the most powerful ideas that can change the course of the nation. We hope that this series will be an important reference point for policy makers and all stakeholders in the journey to collectively realise India’s dream of a successful and stable future.”

  • NDTV Profit to launch three shows

    MUMBAI: NDTV Profit is launching three new shows – Analyse This, India Inc. Season – 5 and Ernst & Young – NDTV Profit What’s The Big Deal.

    A daily show from Monday to Thursday at 7:00 pm, Analyse This will be anchored by Abheek Barman. The show will provide expert insights into the business and economic environment of the country for viewers feeling lost in the web of numbers, charts, graphs and data.

    India Inc. Season 5 will be, like its previous seasons, a weekly programme slotted at 8:30 pm every Monday, and will review the status of economic reforms since India’s Manmohan Singh became the Prime Minister.

    The team of India Inc. will discuss the economy with people like N R Narayana Murthy, Adi Godrej, Gautam Thapar, K V Kamath, Niranjan Hiranandani and Sunil Bharti Mittal, among others.

    The half-hour monthly show Ernst & Young – NDTV Profit What’s The Big Deal will be anchored by Arijit Barman. It will closely examine the most talked about mergers and acquisitions, FDIs setting up funds, private equity and hedge funds, global players buying stakes in Indian firms and other aspects related to the growing Indian industry.