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Tag: Tata Group

  • Tata Group’s Cyrus Mistry plans Rs 2,000 crore IPO for Tata Sky

    Tata Group’s Cyrus Mistry plans Rs 2,000 crore IPO for Tata Sky

    MUMBAI: In 2012 Tata Group chairman Cyrus Pallonji Mistry is believed to be offering Rs 2,000 crore for the Tata Sky’s amount of issue, according to a report.

    Mistry had had initiated the process to sell part of Tata Sky in his first initial public offering (IPO) move after becoming the group chairman and a recent report by Times of India says Tata Sky will also be the 30th publicly listed company from the Tata Group which currently has a combined market cap of nearly Rs 7.2 lakh crore.

    Early next week, the company’s investors, management, underwriters and counsel will hold the kickoff meeting to thrash out the red herring prospectus, Times of India reported.

    To take matters forward, Morgan Stanley, Citi and Kotak Mahindra Capital will manage the DTH provider’s offering in which Tata Sons owns 51per cent, media mogul Rupert Murdoch’s 21st Century Fox has 30 per cent, Singapore state investor Temasek 10 per cent, and Tata Opportunities Fund holds 9 per cent.

    Mistry has revived the plan to list Tata Sky on the domestic stock market, which will help the 47-year-old to part-monetize the asset by bringing in fresh funds to fuel the conglomerate’s growth plans and trim its debt. In fiscal 2015, its loss stood at Rs 267 crore.

    The report also stated that there are prospects of sale of new shares as well as of existing shares held by promoters including Tata Sons and Temasek, which has remained invested in Tata Sky since 2007. According to the report, Temasek wants to encash some of its holdings in the 12-year-old Tata Sky, which will have a gross profit of Rs 1,000 crore in fiscal 2016. Murdoch’s 21st Century Fox intends to retain its ownership, while Tata Opportunities Fund is undecided whether it wants to sell a stake in the IPO, the person added.

    Tata Sky intends to use the proceeds from the share sale to beef up its balance sheet. The company, which has emerged as the leader in the DTH field, will break even this financial year.

  • Tata Group’s Cyrus Mistry plans Rs 2,000 crore IPO for Tata Sky

    Tata Group’s Cyrus Mistry plans Rs 2,000 crore IPO for Tata Sky

    MUMBAI: In 2012 Tata Group chairman Cyrus Pallonji Mistry is believed to be offering Rs 2,000 crore for the Tata Sky’s amount of issue, according to a report.

    Mistry had had initiated the process to sell part of Tata Sky in his first initial public offering (IPO) move after becoming the group chairman and a recent report by Times of India says Tata Sky will also be the 30th publicly listed company from the Tata Group which currently has a combined market cap of nearly Rs 7.2 lakh crore.

    Early next week, the company’s investors, management, underwriters and counsel will hold the kickoff meeting to thrash out the red herring prospectus, Times of India reported.

    To take matters forward, Morgan Stanley, Citi and Kotak Mahindra Capital will manage the DTH provider’s offering in which Tata Sons owns 51per cent, media mogul Rupert Murdoch’s 21st Century Fox has 30 per cent, Singapore state investor Temasek 10 per cent, and Tata Opportunities Fund holds 9 per cent.

    Mistry has revived the plan to list Tata Sky on the domestic stock market, which will help the 47-year-old to part-monetize the asset by bringing in fresh funds to fuel the conglomerate’s growth plans and trim its debt. In fiscal 2015, its loss stood at Rs 267 crore.

    The report also stated that there are prospects of sale of new shares as well as of existing shares held by promoters including Tata Sons and Temasek, which has remained invested in Tata Sky since 2007. According to the report, Temasek wants to encash some of its holdings in the 12-year-old Tata Sky, which will have a gross profit of Rs 1,000 crore in fiscal 2016. Murdoch’s 21st Century Fox intends to retain its ownership, while Tata Opportunities Fund is undecided whether it wants to sell a stake in the IPO, the person added.

    Tata Sky intends to use the proceeds from the share sale to beef up its balance sheet. The company, which has emerged as the leader in the DTH field, will break even this financial year.

  • Voltas mulls brand extension; may diversify in consumer goods space

    Voltas mulls brand extension; may diversify in consumer goods space

    KOLKATA: The Tata group-owned cooling company, Voltas, is planning to extend its brand into other product categories. The company may consider diversification in the consumer durables and electronics segment. According to the company, a call is likely to be taken by December this year.

     

    Voltas is presently conducting a study in association with the group owned TSMG for extension of product line.

     

    “Studies are on but we cannot peg a time or name any category. By the end of this year, we might have some idea about extending the brand. We are planning to go for brand extension,” said Voltas CEO – unitary products division Pradeep Bakshi. 

     

    However, Bakshi did not mention when the study is likely to be completed.

     

    Also, the company is eyeing further expansion into the overseas market in the Middle East and Africa.

     

    “Our target is to export at least 1,00,000 units in a year over the course of the next two years, which will account for 10 per cent of the annual sales,” Bakshi said.

     

    The company is presently exporting between 25,000 and 30,000 units to its overseas operations annually, which accounts for roughly five per cent of the annual sales.

     

    Voltas will also go for marginally hiking its prices of air conditioners by two—three per cent in face of rising forex imbalance and government taxes by mid-February. “Our forex and government taxes have gone up by five per cent. While we will absorb a part of this, the prices of our air conditioners (AC) will go up by two—three per cent in the middle of February,” Bakshi said.

     

    In case taxes go up further, which will add to input cost, the retail prices of the ACs may head further north, he added.

     

    Experts feel that the Union Budget 2016 is likely to lay out a roadmap for what is important for the BJP-led government at the Centre.

     

    While the company continues to enjoy market leadership position in the AC segment at 25 per cent by sales figures, its biggest challenge is lack of diversified products. It should be noted that Voltas had quit the consumer refrigeration business in 1998-99.

     

    Voltas registered an annual growth rate of 12 per cent selling nearly one million ACs in 2014 and is optimistic about closing the current fiscal on a good note.

     

    “We are also focusing on strengthening our channel partner base and opt for brand shops to further increase our presence,” Bakshi said.

  • Jewellery leads Titan’s 54.3 percent Op Inc 29 per cent PAT growth in Q2-2015

    Jewellery leads Titan’s 54.3 percent Op Inc 29 per cent PAT growth in Q2-2015

    BENGALURU:  For the past few quarters, Titan Company (Titan) jewellery business has been pulling down the company’s numbers. This quarter (Q2-2015 which ended 30 September 2014), this business under its jewellery distribution brands Tanishq and Goldplus from Tata showed an upsurge in retail sales by as much as 75 per cent and 84 per cent, respectively. Overall, as per Titan’s investor presentation, jewellery business witnessed y-o-y growth in net income of 64.8 per cent from Rs 1,777 crore in Q2-2014 to Rs 2,929 crore in the current quarter.

    Note : 100,00,000 = 100 Lakhs = 10 million = 1 crore

    The company’s Total Income from Operations (TIO) went up 54.3 per cent in TIO to Rs 3593.07 crore in Q2-2015 from Rs 2328.97 crore in the corresponding year ago quarter and grew 24.3 per cent from Rs 2891.44 crore in the immediate trailing quarter Q1-2015.

    Titan has three revenue segments – watches having the brands –Titan, Xylus, Nebula, Sonata and Fastrack and Zoop; Jewellery (the largest segment in terms of revenue and consequently profits) with Tanishq, Zoya, Gold Plus from Tata, Mia and Fq teen diamonds; and ‘Other’ such as eyewear under the Titan EYE+ brand, apparel and eyewear also under Fastrack brand and precision engineering among others.

    Titan MD Bhaskar Bhat said, “This was an extra-ordinary quarter for the company and we witnessed an income growth of over 55 percent on account of an encouraging performance by all divisions, especially the jewellery business where the accounts of our Golden Harvest Scheme customers had to be closed based on regulatory changes. We have also seen an improvement in consumer sentiment in the second quarter and many of our brands ran successful activations to build on this sentiment and the festive mood. Gold prices have been stable and inflation is falling which would help in providing a lift to the economy. However, the coming quarter will have to be observed and tackled appropriately as some channels are beginning to report lower walk-ins. All our brands will invest in new campaigns in this quarter to improve our connect with the consumer.”

    Titan’s Watches division has also done well in the quarter backed by successful activations for both Titan and Fastrack brands, says the company in its press release. A new brand campaign on ‘gifting of time’ went on air for Titan watches. The income for watches was Rs 527.46 crore in Q2-2015 as compared to Rs 439.07 crore in the corresponding quarter last year.

    Other businesses of the company comprising Precision Engineering, a B2B business, the Eyewear business and accessories grew by 20.9 percent in Q2-2015 versus Q2-2014. The combined income of these businesses was Rs 137.90 crore in the current qaurter. Their last year income for Q2-2014 was Rs 114.03 crore.

    The company has spent higher amount towards advertising (ASP) in Q2-2015 at Rs 105.83 crore (2.9 percent of TIO), which was 12.2 percent higher than the Rs 94.35 crore (4.1 percent of TIO) in Q2-2014 and 6.6 percent more than the Rs 99.25 crore (3.4 percent of TIO) in Q1-2015.

    Over the 11 quarter period starting Q4-2012, Titan’s ASP shows an increasing trend in absolute rupee terms, but in terms of ASP as percentage of TIO, the trend shows a decline. Please refer to Fig A below.
    During the period under consideration, the company’s highest ASP in absolute rupee terms was in Q3-2014 at Rs 118.04 crore (4.4 percent of TIO). This was the highest ASP in FY-2014. Q3-2013 ASP was also the highest in FY-2013 at Rs 108.76 crore (3.6 percent of TIO).

    Also, during the period under consideration, the company’s highest ASP in terms of percentage of TIO was in Q1-2013 at 4.7 percent (Rs 103.44 crore). Historically, during the period under consideration, though Titan’s Q2-2013 TIO was higher than the TIO in Q1-2013, the company’s ASP had gone up in absolute rupee terms in Q3-2013, but was lower in terms of percentage of TIO as compared to both Q1-2013 and Q2-2013.

    In Q1-2014, the company’s ASP was higher in absolute rupees at Rs 104.67 crore as compared to the Rs 94.35 crore in Q2-2014. However, in terms of percentage of TIO, Titan’s Q1-2014 ASP at 3.4 percent was lower than the 4.1 percent in Q2-2014 or the 4.4 percent in Q3-2014.

    If the company wants to push towards record sales and profits in FY-2015, the chances of the company spending more towards advertising spends in Q3-2015 are quite high going by what Bhat has said in the company’s earnings release.

    Y-o-y the company’s PAT improved 28.6 percent to Rs 239.98 crore in Q2-2015 from Rs 186.65 crore and went up by 35.4 percent from Rs 177.27 crore in Q1-2015. Please refer to Fig B below.

    During the 11 quarter period under consideration, Titan’s PAT shows an upward trend in absolute rupee terms, but seems to have flattened out at about 7.2 percent of TIO, maybe could even decline fractionally.

  • Tata Group to be the ‘Alibaba’ of India?

    Tata Group to be the ‘Alibaba’ of India?

    MUMBAI: The multiple investments made by its chairman emeritus Ratan Tata in e-tail and the steep rise in the e-commerce industry seems to have inspired the Tata Group too, which is now reportedly planning a big entry into the e-commerce space with a marketplace-based model.

     

    The Economic Times reported that the site will be headed by its subsidiary Tata industries and that Tata is modeling its business on Tmall.com, which is the marketplace in the Alibaba Group.

     

    The new marketplace business, modelling on Alibaba’s Tmall.com, would allow third-party sellers on the platform. It would help generate revenues by charging a fee or commission from merchants, who will use the platform.

     

    The yet-to-be-named venture is likely to be rolled out in 2015, and will initially showcase Tata’s existing retail chain brands such as Westside, Croma and Star Bazaar. Tata is also planning to tie up with its partner Zara, which only sells online through its own sites.

     

    It will also allow other merchants to sell alongside Tata’s various units. The group has already reportedly begun enrolling vendors and hiring people, the report added.

     

    Tata already has a substantial presence in real-world retail, including joint ventures with Britain’s Tesco, Spain’s Zara and coffee chain Starbucks. Last month Ratan Tata, chairman emeritus of Tata Sons, bought a stake in Snapdeal and online jewellery retailer Bluestone.

     

    India’s e-commerce market has been booming in recent years with market leader Flipkart clocking a valuation of $7 billion in a July funding round when it raised $1 billion from a clutch of existing investors and a day later, Amazon announced plans to invest $2 billion in India.

     

    Also, India’s online retail business is expected to surge to between $19 billion and 38 billion, from about $2.3 billion in annual sales now. Enticed by the potential, other business houses like Reliance Industries and Aditya Birla Group have reportedly been hinting at forays into the e-commerce space but have not revealed any concrete plans so far.

  • After Tata Housing, Snapdeal now ties up with Croma

    After Tata Housing, Snapdeal now ties up with Croma

    MUMBAI: Tata Group promoted electronics retail chain Croma and Snapdeal.com have entered into a strategic partnership to sell products online.

     

    According to the press release, Snapdeal.com would create Croma’s Flagship Store on its portal to sell electronic items including mobiles, tablets and laptops. The two will jointly work towards market development initiatives, establish joint collaboration on customer and vendor outreach programmes and category development.

     

    Talking about the collaboration, Snapdeal CEO Kunal Bahl said, “This is a big moment for us, where Croma and Snapdeal.com will now leverage their offline and online presence respectively and work jointly to offer a more holistic shopping experience to consumers across the country.”

     

    Both brands would also be looking at exclusive launches of products and brands belonging to the select categories.

     

    Infiniti Retail MD & CEO Ajit Joshi said, “Today’s dynamic retail industry demands an infrastructure that is equally robust on the online and brick-and-mortar fronts.”

     

    “Omni-channel retail is undoubtedly the way forward in the Indian retail industry, and therefore the association is designed to enable Croma and Snapdeal to leverage from each other’s strengths, to provide a winning proposition for customers and business alike,” he added.

     

    This is second tie-up of Tata with the New Delhi-based e-commerce major after its chairman Ratan Tata picked up a stake in the portal. Last month, Tata Value Homes, a 100 per cent subsidiary of Tata Housing, entered into a first-of-its-kind, strategic and exclusive partnership with Snapdeal.com to sell residential properties.

     

    Infiniti Retail Ltd, a 100 per cent subsidiary of Tata Sons runs Croma stores. Launched in October 2006, Croma has 96 outlets across 16 major cities of India and sells over 6000 products.

     

    Started in February 2010, Snapdeal.com is country’s online marketplace.

  • This Women’s Day, #SnapOutofIt with Tanishq

    This Women’s Day, #SnapOutofIt with Tanishq

    MUMBAI: Today, women are increasingly walking the tightrope between home and career, handling everything from household chores to boardroom meetings with consummate ease. No wonder, they’re left with little or no time to themselves, which is why, ahead of Women’s Day on 8 March, Tanishq, Tata Group’s jewellery brand, has decided to play Santa and gift these superwomen some much-needed ‘me time’.

     

    Mia, Tanishq’s contemporary line of work-wear jewellery, has launched a digital campaign called #SnapOutofIt, which, as the name suggests, offers women an opportunity to break free from their punishing everyday routine while allowing them to explore their creative side.   

     

    “In the light of long working hours, deadlines, meetings and commitments at home, taking time off for themselves is a luxury which isn’t enjoyed by most working women today. Keeping this in mind, the #SnapOutOfIt campaign calls for creative and fun entries from working women, who have one opportunity to convince the brand why they deserve a chance to snap out of their everyday hassles and routine they have to follow,” says Titan Company jewellery division GM marketing Deepika Tewari.

     

    The campaign is active on its own official website, facebook, twitter and YouTube and has been conceptualised by digital agency, Interactive Avenue.

     

    So far, it has recorded over 150 entries from women across Delhi, Mumbai and Bangalore. Some of the entries read: #SnapOutOflt to get rid of my moody boss n foody hubby, bored of tight deadlines and right timelines, fed up of extra tensions at both home and office so forget actually who I am and my mom-in-law asks me to dress up every day like actresses from saas-bahu TV soaps, among others.

     

    Earlier campaigns around Women’s Day like ‘I Am Not You’ and ‘I Am Courage’ celebrated women power while #SnapOutOflt has a fun element attached to it. “This year, Mia wants women to celebrate their day with fun. With #SnapOutOfIt, Mia – as a mark of respect to the numerous roles a woman takes on – is looking to make this day super-special and fun with activities like para-motoring in Delhi, a vineyard tour in Bangalore, and yacht hunting in Mumbai on 8 March,” says Tewari.

     

    “This year’s approach to Women’s Day is very different. The winning entries will have to be witty, funny, and most convincing. In keeping with the brand’s personality of light-weight daily work-wear jewellery, Mia wants participants to really have fun with their submissions.”

     

    Mia by Tanishq takes pride in being an extension of a woman’s personality. “Mia by Tanishq has been at the forefront when it comes to celebrating women. This contemporary line was launched in 2011 for women on the go, who are engaged in various professions and have a well-established ensemble of accessories, unfortunately, excluding jewellery. Mia as a brand has always regaled women with interesting designs, concepts and campaigns like ‘My Expression’, ‘Love Appraisal’ and so on. With us, it is Women’s Day every day,” Tewari signs off.

  • Trent Ltd’s Ad Spend at Rs 8.56 crore in Q3-2014

    Trent Ltd’s Ad Spend at Rs 8.56 crore in Q3-2014

    BENGALURU: The Tata group’s department store operator Trent Limited spent the second highest amount of Rs.8.56 crores in Q3-2014 amongst the preceding seven quarters towards advertising and sales promotion (Ad Spend). Earlier, during Q3-2013 the company had an ad Spend of Rs 10.16 crore, the highest across seven quarters from Q1-2013 to Q3-2014. (Note : Rs 1 crore = Rs.100 Lakhs = Rs 10 million = Rs.100,00,000).

    Trent Limited was established in 1998 as a part of the Tata group. It operates the retail store chain Westside. In 2004 the company ventured into the hypermarket business with Star Bazaar. Also, Trent Ltd acquired a 76 per cent stake in the books and music retail store chain Landmark.

    In terms of percentage of Operating Income (Op Inc), Trent Ltd Ad Spend shows a downward linear trend. In Q3-2014, Ad Spend was 3.30 per cent of Op Inc., while in the year ago quarter it was 3.94 per cent (the highest in terms of value and percentage of Op Inc over the seven quarters under consideration). Trent Ltd., lowest quarterly Ad Spend was in Q4-2013 at Rs  4.02 crores.

    However, despite the downward linear trend in Ad Spend in terms of percentage of Op Inc, in value or rupee terms, the linear trend is upwards because of the increase in Op Inc. Please refer to Figures A and B.

    The company’s PAT too is moving upwards linearly, both in terms of percentage of Op Inc as well as in rupee or value terms. The company reported the highest PAT across the seven quarters under consideration in Q3-2014 at Rs 23.49 crore, while the lowest PAT across the seven quarters was in Q2-2013 at a shade under Rs 9 crore. (Refer Figure B below)

    As mentioned above, the company’s Op Inc has been moving linearly upwards, with the quarter ended December 2013 reporting the highest figure at Rs 282.43 crore, while the lowest Op Inc reported during the seven quarters under consideration was in Q1-2013 at Rs 218.71 crore. Correspondingly, the company’s Total Expenses (Tot Exp) figure is also following a linear upwards trend and Tot Exp has been highest at Rs 268.95 crore in Q2-2014 and the lowest in Q1-2013 at Rs 214.44 crore. Please refer to Figure C below.

    Figure D shows the Q-o-q change in Op Inc, PAT and Ad Spend. The change in Q1-2013 is in relation to Q4-2012.

     

  • Design jewellery, express yourself!

    Design jewellery, express yourself!

    MUMBAI: Hardly, if ever, will you find a woman who does not like ornaments.

     

     And so, the Tata Group’s jewellery brand, Tanishq, has launched a digital campaign ‘My Expression’ which not only taps this feminine attribute but also gives members of the fairer sex an opportunity to explore their creativity.

     

     Essentially an online jewellery designing contest, ‘My Expression’ seeks to give concrete shape to individual ideas in the form of the Mia collection or jewellery for working women by Tanishq. To participate in the competition – currently in its second season – simply upload your inspiration/idea for Mia in the form of photographs, videos, Do it yourself, audio and plain words on the microsite http://mia.tanishq.co.in/myexpression.

     

    Speaking of ‘My Expression’, Titan Company Jewellery division head marketing and general manager Deepika Tewari says: “With the aim to encourage participants to source inspiration from the smallest thing and turn it into beautiful pieces of jewellery, ‘My Expression’ is a one of its kind jewellery designing contest.”

     

     While the first season saw just over 3200 entries from across the country, this season, there have been a staggering 10,000 entries from both India and abroad. “The second season of ‘My Expression’ is bigger, better and has gone international too. While the aim remains the same – encouraging women to express their ideas and give it shape in the form of a piece of jewellery,” says Tewari.

     

     The contest is a medium for Tanishq to get closer to its fans and customers. “My Expression is a perfect example of activity through which a brand can grow closer to its customers. Digital initiatives like this help us gain great consumer insights on the product and service front. With the digital medium playing an indispensible role in our lives, engaging activity on this platform is always a bonus for a brand to get a better understanding of the consumer, decoding the styling required and a deep dive to decipher a jewellery category never before addressed in the market,” explains Tewari.

     

    With Maxus handling promotion of the activity, only emails, facebook ads, banner ads and smses are being deployed to spread awareness about the contest.