ITV

Tag: Kotak Mahindra Bank

  • Major rise in spending of consumer durables category: CAM report

    Major rise in spending of consumer durables category: CAM report

    MUMBAI: Integrated entertainment and retail marketing company Interactive Television, in collaboration with IPSOS-MEDIA CT, released its CAM report for December 2014. The detailed trends and tracker are for the movie PK.

     

    The highlights are as follows:

     

    With 415, there were a high number of brands active on cinema in the last 17 rounds of CAM. This is also the first time that CAM has observed a high number of national brands being present on cinema. A total of 106 new brands tested cinema as an advertising medium for the first time with the movie PK during the month of December 2014. There has been a 54 per cent increase in number of brands active on cinema with the movie PK in December as compared to the CAM round held in November. There has been a major increase in spending of consumer durables category from 32 per cent in November to 85 per cent in December.

     

    A maximum number of 7402 spots played with PK which was Bollywood’s highest grossing film of all time. In the automobile category it increased from18 per cent in November to 71 per cent in December 2014. Finally for the travel accessories category, spending increased from 4 per cent in November to 68 per cent in December 2014.

     

    Choc On has been number one brand on cinema for the last one year. Manyavar garments increased its spending and surpassed Choc on to become number one brand during the December CAM Round. Interestingly the second spot among the top brands is equally distributed among four brands namely; Chocon, High Sierra, Kotak Mahindra Bank and Syska LED Lights at par with 59 per cent.

     

    Olx has a 19 per cent higher brand recall than Choc on with 13 per cent in spite of screen presence of Choc On with 118 screens being more than Olx, which had 86 screens. It was also noticed that the majority of top spenders play 30 seconds ad on cinema. Food and beverage continues to be the top category on cinema in the last one year and has emerged as a biggest spender on this medium.

     

  • Kotak Mahindra Bank and ING Vysya Bank announce merger

    Kotak Mahindra Bank and ING Vysya Bank announce merger

    MUMBAI: The Board of Directors of Kotak Mahindra Bank Ltd (“Kotak”) and the Board of Directors of ING Vysya Bank Ltd (“ING Vysya”) at their respective meetings held today have approved an all-stock amalgamation of ING Vysya with Kotak.

     

    The amalgamation is subject to the approval of the shareholders of Kotak and ING Vysya respectively, Reserve Bank of India under the Banking Regulation Act, the Competition Commission of India and such other regulatory approvals as may be required.

     

    Upon obtaining all approvals, when the merger becomes effective, ING Vysya will merge with Kotak. Shareholders of ING Vysya will receive shares of Kotak in exchange of shares in ING Vysya at the approved share exchange (“swap”) ratio. All shareholders of Kotak and ING Vysya will participate thereafter in the (merged) Kotak business. All ING Vysya branches and employees will become Kotak branches and employees. ING Vysya’s CEO designate, Mr Uday Sareen, will be inducted into the top management of Kotak reporting directly to Mr Uday Kotak, Executive Vice Chairman and Managing Director of Kotak.
     
    Merger terms

     

    The Boards of Kotak and ING Vysya respectively considered the results of a due diligence review covering areas such as advances, investments, deposits, properties & branches, liabilities, material contracts etc.

     

    S.R.Batliboi & Co., LLP, Chartered Accountants, and Price Waterhouse & Co LLP, the independent valuers appointed by Kotak and ING Vysya respectively, have recommended a share exchange ratio, which has been accepted by the respective Boards.  Avendus Capital Private Ltd. provided a Fairness Opinion to Kotak on the share exchange ratio and Edelweiss Financial Services Ltd. provided a Fairness Opinion to ING Vysya.

     

    Accordingly ING Vysya shareholders will receive 725 shares in Kotak for 1,000 shares of ING Vysya. The share exchange ratio is considered fair and reasonable given the underlying value of ING Vysya, as also giving shareholders the ability to benefit from the potential that can be realised upon merging into Kotak.

     

    This exchange ratio indicates an implied price of Rs.790 for each ING Vysya share based on the average closing price of Kotak shares during one month to November 19, 2014, which is a 16% premium to a like measure of ING Vysya market price.

     

    The proposed merger would result in issuance of approximately 15.2% of the equity share capital of the merged Kotak.

     

    One of ING Vysya’s directors will be joining the Board of Directors of Kotak.

     
    Strategic Rationale and benefits

     

    Kotak, with 641 branches and relatively deeper presence in the West and North, has a differentiated proposition for various customer segments including HNIs, deep corporate relationships including emerging corporates, a wide product portfolio, including agricultural finance and consumer loans, and a robust capital position.

     

    ING Vysya has a strong customer franchise for over 8 decades, with a national branch network of 573 branches and deep presence in South India, particularly in Andhra Pradesh, Telengana and Karnataka. ING Vysya has a large customer base across all segments. It is particularly noted for a best-in-class SME Business, as also for serving large international corporates in India by access to the international relationships of ING Group.

     

    The combined Kotak will have 1,214 branches, with a wide-spread pan-India network, getting both breadth and depth given the strong geographic complementarity between Kotak and ING Vysya.

     

    Substantial efficiencies will arise out of the proposed merger, which is likely to result in significant benefits for all stakeholders, be it shareholders, employees or customers, and ultimately the banking industry:

     

    ·         Customers and employees will benefit from the combined Kotak having a wider geographical spread, expertise across customer segments, such as SME, HNI, Corporates, and on products such as private banking, asset management, insurance, investment banking, NRI offerings etc.

     

    ·         Kotak’s strong capital position potentially avoids capital raising and attendant dilution in the near to medium term for ING Vysya shareholders.

     

    ·         Additionally, with ING Vysya nearing the cap for foreign shareholding, the merger would yield more liquidity with significant foreign headroom in Kotak even after merger, with foreign shareholding at ~47%.

     

    Commenting on the announcement, Mr Uday Kotak, Executive Vice Chairman and Managing Director, Kotak Mahindra Bank, said – “This is a momentous occasion that brings together two banking institutions with significant complementary strengths. The opportunities and synergies that this merger will create will place Kotak and its incoming stakeholders from ING Vysya on a new trajectory of excellence and leadership. I firmly believe this merger will pave the way for a bigger and better financial services player with deep Indian roots and global standards of service. Kotak values the diversity of ING Vysya, welcomes them as its family, and will work towards integrating them smoothly on this exciting journey that is ahead of us.”

     

    Commenting on the announcement, Mr. Shailendra Bhandari, presently MD & CEO of ING Vysya Bank Ltd, said — “Our two companies are a perfect match at a perfect time. Our customers will see tremendous value from the combined entity as we fill the gaps, in terms of a much larger footprint and a complete product suite, both national and international. Together, both companies will participate in the growth of one of India’s strongest and most successful banking franchises.”

     

    ING Vysya’s CEO designate, Mr. Uday Sareen, said –  “This is a historic day in our 84 year heritage. I truly believe that the merger is a game-changer for us, laying the foundation to help us leap-frog by several years and be part of, and further scale a truly national franchise. The combination creates a company that will deliver maximum value for our shareholders, enormous opportunities for employees and deliver the entire suite of financial products and services to our customers.”

     
    Employees

     

    Kotak has been rated among the best employers in the country and is renowned for its employee orientation and retention of talent. ING Vysya has a diverse set of employees, who have expertise in dealing with different customer segments. The combined entity will generate ample career opportunities for staff as well as a wider array of products to serve their customers, aided by management development opportunities across different businesses of Kotak Group.

     

    Both organizations have strong cultures and employee best practices and the combined entity will work towards imbibing these and building a world-class organization.
     

    ING Group

     

    ING Group, which owns ~43% in ING Vysya, has indicated that it supports the proposed transaction. ING Group will become the largest non-promoter shareholder in combined Kotak.

     

    ING Group and Kotak intend to explore areas of cooperation in cross border business, on the basis of a Framework for Future Cooperation that has been entered into, subject to mutual agreement on specific terms and all laws and regulations.

     

    In addition to the experts who undertook valuation and issued fairness opinions, Ernst & Young LLP undertook due diligence review of ING Vysya for Kotak, and Amarchand & Mangaldas were legal advisors to Kotak. PricewaterhouseCoopers Private Limited carried out due diligence for ING Vysya and AZB & Partners were ING Vysya’s legal advisors.

  • Maxus wins businesses worth over Rs. 300 crore

    Maxus wins businesses worth over Rs. 300 crore

    MUMBAI: Maxus, yet again retains the title of the most ‘dominant’ agency as per the latest RECMA report, a qualitative assessment for all leading media agencies in India.

    It is the fourth consecutive year that Maxus is on the top of the RECMA ratings. Along with this, the agency also won business across 23 new clients, worth upwards of Rs. 300 crores in the first half of 2014. These new clients include Tata Sons, JK Tyres, Kotak Mahindra Bank, Unitech, Paytm, Askme.com, ICC T20 World Cup 2014, Cigna TTK Health Insurance and BML Educorp.

     

    Maxus South Asia managing director Kartik Sharma said, “Over the last 12 months, Maxus has made an effort to become future ready in a digitally charged media environment. We approach planning and investments in an integrated manner with emphasis on new media concepts that brings digital media, content and data together with traditional TV, print and radio. We believe this gives us an edge in the market, helping us delight to our existing clients and bring new clients into the fold.”

     

    “Our ‘Lean into Change’ approach has given us a healthy double digit growth in 2014” Besides their expertise in core traditional media, Maxus today is a full- fledged media solutions agency with expertise across digital, mobile media, data and analytics, branded content and programming. Talent across these verticals are embedded in the network and work closely with core client teams,” added Sharma.

     

    The new approach at Maxus has resulted in several ingenious campaigns like “Power of 49” for Tata Tea, Kotak Jifi, Vodafone Fan Photo and Tata Sky’s innovation around the IPL. Maxus was the first agency to set up a digital command centre for Nestle, where the marketing and agency team to monitor data from various social feeds and take real time marketing decisions. This ensured judicious use of budgets across media with a low percentage of wastage. The approach also helped expand business with new clients across industries ranging from e-commerce, banking and insurance, sports, retail, healthcare, etc.

     

    In 2014, Maxus was part of WPP Team Red (head by MEC Global) that won the Vodafone account across several countries, retaining the account in India. The expertise of a long client relationship with Vodafone domestically brought about great insight during the pitch process.

     

    It can also be noted that this year, Maxus has also brought on board two senior leaders – Navin Khemka in New Delhi to head the North and East region and focus on new business development and Anand Chakravarthy heading Maxus, West and some of their key client relationships. Earlier in the year, Maxus won the digital agency of the year and a number of metals at the Abbys 2014 for their new media capabilities.

  • AICL to transform annual reports from boring vanilla to interactive

    AICL to transform annual reports from boring vanilla to interactive

    MUMBAI: Annual Reports is just more than numbers, it’s a piece of handiwork through which a company can promote itself, its prospects to its various stakeholders.  It is no longer just a compilation of statistics.

     

    And to make them more interactive rather than just plain vanilla, AICL Communications, a full-service strategic communications consultancy, has taken upon itself to change the way one looks at the boring text running over pages and pages.

     

    A recent survey by Burson-Marsteller found that 95 per cent of chief executives in the US believe corporate reporting plays a critical role in achieving key business objectives. To bring that thought and change in India as well, AICL is assisting several Indian corporates in giving shape and character to their annual reports, paving the way for stakeholder groups to understand them better.

     

    The company has big daddies of various categories as its clients. Reliance Industries, Zee, Hindustan Unilever, Kotak Mahindra Bank, IDBI Bank, Maruti Suzuki, Tata Group, Hero MotorCorp, to name a few.

     

    AICL Communications CEO Arvind Agrawal says, “Many companies now recognise the significant role an annual report plays in providing a road map of key messages and strategic direction. The role of annual reports has been largely changed by innovations in technology that have broadened access to information. At AICL, we are partnering the best Indian brands to help them create a corporate image among the investor community that is commensurate with their business potential.”

     

    The thought is to add spunk and interactivity in addition to containing relevant information, visuals and imagery. Today, good annual reports are as essential as good advertising for any company. The best practices to create a good annual report according to Agrawal are: data visualization, use of imagery to highlight company’s scale, highlight company’s contribution to people and the planet through its CSR.

     

    “Internet too has changed the way people look at things. We believe that if one can access the annual report online then it becomes very interactive,” says Agrawal while stating the example of HUL, Zee on how such companies have created micro-sites for their annual reports.

     

     “We have immense respect for the work and effort AICL invests to make our reports an interesting read. These reports not only help us gain a leadership position in the minds of current and prospective stakeholders, but also allows us to clearly state our goals and pioneering initiatives in the space we operate in,” added Zeel global head brands Ronald Landers for the company which is in its fifth year of association with the consultancy.

     

    AICL operates in the specialised domain of corporate reporting, with services spanning annual and sustainability reports, internal communication, digital and moving image solutions.

     

    When asked if the company is looking at raising funds from the market, Agarwal pointed out that since it operates in a niche space and has a high profile clientele, the company doesn’t need funds from the market and are self-sufficient at present.

     

    The company’s quest to underscore the importance of reporting has driven it to continuously strive towards innovation in the domain. In doing so, it has built a portfolio of clients which comprise nearly 40 per cent of the BSE Sensex, 30 per cent of the Nifty 50 and three of the eight Indian Fortune 500 companies, besides multiple MNCs and PSUs.