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Tag: USL

  • McDowell’s, DriveU tie up; launch service app

    McDowell’s, DriveU tie up; launch service app

    MUMBAI: McDowell’s No.1 Soda has joined hands with DriveU, an app-based start-up, which offers on-demand driver service, to launch a feature within the app called Share, through which friends can commute together. A strong mainstream and digital campaign will be rolled out with celebrity drivers.

    The partnership creates first of its kind benchmarks where a consumer brand and a startup come together to provide a need-based consumer offering based on a long-term revenue sharing model. Through this partnership, McDowell’s will provide marketing support and generate demand for DriveU with an ambition of generating half a million downloads and completing one million rides in the first year of association.

    United Spirits senior VP marketing Subroto Geed said that the unique association was based on USL’s next generation marketing thinking where there were engaging with the right partners to create a personalised experience. This partnership was a true marketing innovation and that they very excited to be working with a young and edgy start-up, he said.

    This innovation was a big move that was expected to dramatically increase DriveU’s user base to meet its revenue targets. DriveU business was expected to grow tenfold over the next year, while operating across India’s top 10 metros, said DriveU CEO Ramprasad Shastry.

  • McDowell’s, DriveU tie up; launch service app

    McDowell’s, DriveU tie up; launch service app

    MUMBAI: McDowell’s No.1 Soda has joined hands with DriveU, an app-based start-up, which offers on-demand driver service, to launch a feature within the app called Share, through which friends can commute together. A strong mainstream and digital campaign will be rolled out with celebrity drivers.

    The partnership creates first of its kind benchmarks where a consumer brand and a startup come together to provide a need-based consumer offering based on a long-term revenue sharing model. Through this partnership, McDowell’s will provide marketing support and generate demand for DriveU with an ambition of generating half a million downloads and completing one million rides in the first year of association.

    United Spirits senior VP marketing Subroto Geed said that the unique association was based on USL’s next generation marketing thinking where there were engaging with the right partners to create a personalised experience. This partnership was a true marketing innovation and that they very excited to be working with a young and edgy start-up, he said.

    This innovation was a big move that was expected to dramatically increase DriveU’s user base to meet its revenue targets. DriveU business was expected to grow tenfold over the next year, while operating across India’s top 10 metros, said DriveU CEO Ramprasad Shastry.

  • Q3-2015: United Spirits marketing spends up 15.8 per cent

    Q3-2015: United Spirits marketing spends up 15.8 per cent

    BENGALURU: United Spirits Limited (USL) spent 229.75 crore (9.9 per cent of Total Income from Operations or TIO) in Q3-2015 (quarter ended December 31, 2015, current quarter) towards Advertising and Sales Promotion (ASP, marketing). This was 15.8 per cent more than the Rs 198.40 crore (9.1 per cent of TIO) that the Vijay Mallya led UB group company had spent in the immediate trailing quarter (previous quarter, Q2-2015, q-o-q) and 2.3 per cent more than the Rs 225.06 crore (also 9.9 per cent of TIO) in the corresponding year ago quarter (Q3-2014).

    During the nine month period ended 31 December, 2014 (YTD, 9M-2015), USL spent Rs 647.98 crore (10.1 per cent  of TIO) towards ASP, which was three per cent more than the Rs 629.15 crore (9.8 per cent of TIO) in the corresponding nine month period of the previous year.

    Note: (1) 100,00,000 = 100 lakh = 10 million = 1 crore

    (2) All numbers in this report are standalone, unless stated otherwise

    (3) The UB group owns Indian Premier League  (IPL) cricket team Royal Challengers (RCB) Bangalore and the I-League teams (I-League is an Indian professional  league for Men’s Association football clubs)  Mohun Bagan A. C and the East Bengal F. C. and is the co-owner of the Formula One team Sahara Force India. Mallaya is a member of the World Motor Sport Council representing India in the FIA (Fédération Internationale de l’Automobile).

    Over the previous eight quarters starting Q4-2013 until Q3-2015, ULS’s ASP spend had been the highest in terms of absolute rupees in the current quarter. As mentioned above the company had spent approximately the same per centage of TIO in Q3-2014. During the eight quarters under consideration, the highest spends by the company in terms of per centage of TIO is 11.4 per cent (219.83 crore) in Q1-2015, while lowest has been in the previous quarter.

    During the eight quarters under consideration in this report, USL’s ASP shows a sharp upward linear trend in absolute rupees and a slight linear downward gradient to flat in terms of per centage of TIO. Please refer to Fig 1 below.

    The company reported TIO of Rs 2318.23 crore in Q3-2015, which was 6.4 per cent more than the Rs 2178.58 crore in the immediate trailing period and was 2.3 per cent more than the Rs 2266.26 crore in the year ago quarter. During 9M-2015 USL’s TIO at Rs 6420.71 crore was almost flat (lower by 0.3 per cent) than the Rs 6441.93 crore in 9M-2015. Refer Fig 2 below For the 8 quarter period under consideration, TIO shows an upward linear trend.

    USL reported PAT for Q3-2015 at Rs 78.81 crore, which was 21.4 per cent more than the Rs 64.92 crore in Q3-2014. The company had reported a loss of Rs 27.83 crore in the immediate trailing quarter.

    The company’s Earnings before interest, depreciation, tax and amortization (EBIDTA) for Q3-2015 was Rs 238.1 (10.3 per cent of TIO), which was 2.1 per cent more than the Rs 233.29 crore (10.7 per cent of TIO) in Q2-2015 and 7.3 per cent more than the Rs 222.07 crore (9.7 per cent of TIO) in Q3-2014. For 9M-2015, EBIDTA at Rs 616.49 crore (9.6 per cent of TIO) was 16.6 per cent more than the Rs 739.18 crore (11.5 per cent of TIO) in 9M-2014.

  • JWT continues to strengthen its planning team with senior hires

    JWT continues to strengthen its planning team with senior hires

    MUMBAI: JWT India announced senior level appointments of Gulshan Singh as vice president and strategic planning director and Jasravee Kaur Chandra as vice president and strategic planning director across its Delhi and Mumbai offices.
    JWT India VP and strategic planning director Gulshan Singh

    A graduate of HEC Paris, Gulshan combines the skill sets of an MBA from a top global business school with over 10 years in building brands in various capacities. Gulshan joins from Lowe Lintas, Bangalore, where he was leading planning for brands such as Tanishq, Titan Sonata, MRF, USL, Apollo Hospitals, 3M and Tata Tea, which won an Effie in 2012.

    His previous work experience includes market research with IMRB and TNS, planning with FCB and a brief stint in consulting – spread across India, the Middle East, and Europe. He has worked across categories such as automotive, consumer electronics, education, energy, FMCG, F&B, financial services, healthcare, logistics and media and entertainment with a wide array of brands including DHL, GM, Indian Oil, ITC Foods, Marico, Nestle, P&G, Voltas, and the Zee Network. He will be working towards creating an ‘Indian consumer-friendly‘ approach to sustainable lifestyles, and is looking forward to exploring this in JWT.

    JWT India VP strategic planning director Jasravee Kaur

    JWT India chief strategy officer Bindu Sethi said, “We have responsibility of some of the most iconic, the biggest and best brands in the country. Our quest is to be thought and idea driven to ensure that our brands lead their markets and categories. Gulshan and Jasravee will add to JWT‘s robust planning talent pool with fresh experiences and perspectives.”

    Jasravee has over 13 years of experience in understanding and building brands. She started her career with ORG-MARG where she was involved in innovative and participatory research (ethnography, critical incident, semiotics etc.) for brands like Knorr, Annapurna, HBO, Lux, Coke and Dove. She transited to strategic planning with stints at Lowe Lintas, Leo Burnett and Rediffusion Y&R. She has strategised for both national and MNC brands such as Lifebuoy, Hamam, FAL, Lacto Calamine and taken up blue sky projects for Uninor, Liril and Lakme.

    Quick-witted and profound, Jasravee has a keen eye for the meeting point ‘betwixt contradictions‘. She loves arriving at paradoxes as well as breaking myths about consumers. Astute and intuitive, Jasravee loves to witness and participate in the inherent drama of diverse subcultures; be it rural households, youth, truckers or the small city migrants. Her exposure to diverse categories has ensured as well as sustained this.

  • ‘We expect to break even this year’ : Kings XI Punjab COO Col Arvinder Singh

    ‘We expect to break even this year’ : Kings XI Punjab COO Col Arvinder Singh

    Kings XI Punjab is yet to recover from the shock, its break even target having gone haywire after the Board of Control for Cricket in India (BCCI) terminated its franchise contract in October 2010 for breaching ownership rules. The Bombay High Court came to its rescue, allowing it to be a part of the Indian Premier League (IPL) after submitting $20.7 million in bank guarantee.

     

    Having paid $76 million to acquire the IPL franchise, Kings XI Punjab is now on recovery course. Sponsorship deals have been stitched and the Mohali franchise is hoping to improve its performance this year.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto,Kings XI Punjab COO Col Arvinder Singh says the franchise should break even this year and post a revenue growth of 15-20 per cent.

     

    Excerpts:

    Q. Could you talk about how the IPL as a property has grown year on year?
    Cricket has achieved cult status in our country. In last four years since its inception in 2008, IPL has further strengthened the bond it has with the people of India.

     

    With time it has also amassed worldwide audiences. The league has grown beyond the realm of cricket and is considered as a complete entertainment package encompassing the entire family.

    Q. Kings XI Punjab had expected to break even in the fourth year. Has this happened or did the BCCI termination play spoilsport?
    We have not yet broken even. Break even is expected this year, for sure.

     

    Not everything goes as per plan. Ups and downs are a part of every business and they should not deter from chasing our dreams – that is to get the Cup home this year. We are constantly working towards creating a team which is extremely valuable and as partners, we will give all it takes – time, energy and resources for the love of the game.

     

    And yes, the arbitration process is yet to conclude.

    Q. What revenue growth do you expect this year and who are your sponsors?
    We expect 15-20 per cent growth this year and are on course to meet that target. ACC, ONN, USL, Kingfisher, Coca-Cola and Max Healthcare are some of our sponsors.

    Q. Emirates has not renewed its deal with you. Is the economic slowdown forcing brands to look at the cost of association more carefully compared to earlier years?
    We have been extremely fortunate that we have had the right partners since the inception of this tournament. This year too we have some of the best brands on our side – and we hope that there will be many more to come. When we enter in to a partnership with any brand, it is based on a set of mutually agreed and understood objectives.
    “We expect 15-20 per cent growth this year and are on course to meet that target”

    Q. IPL ratings fell last year, making it more expensive for marketers and sponsors. Do more efforts need to be taken in terms of marketing the event to consumers?
    IPL’s fan following is not limited only to India; it has also gathered audiences worldwide. While the ratings went down because of the World Cup just preceding the IPL season, the overall reach did see a substantial increase. IPL is looked as a complete entertainer and it will be interesting to see the ratings this year.

    Q. Has the licensing and merchandising area grown?
    This is a crucial source of revenue for the franchise. Having experimented with a few models in the past, we have now tied up with an international company to increase the reach of our L&M programme worldwide. This is a unique and long term agreement.

    Q. A sports marketing expert noted that the IPL has become more an icon-led rather than a franchise event. This means that if icons like Sehwag and Dhoni do not perform, viewership will get affected as people mainly want to watch icons. Do you agree with this?
    Our belief is that cricket is a team and not an individual game. Although iconic players have a definite rub off on the likeability of a team, this is but limited appeal to start with.

     

    For a more concrete connection with the fans, the franchise must establish itself as a custodian of the values and attitude that the region represents. This kind of association will withstand any player movement.

    Q. If you look at the IPL so far, which three players have been the most value for money in terms of performance for the franchise?
    Every player in our team is a performer and we do not undermine their strength. Each one of them is a valuable asset and we are confident of bringing the IPL trophy home this year.

    Q. On the field, Kings XI Punjab did not fare well in the previous couple of seasons. How much has this affected your brand valuation?
    Brand value is a cumulative total of a number of factors. Our performance last season almost ensured that we made it to the playoffs and this year we are pretty sure that our team has in it to make it there.

     

    We have been able to establish ourselves as a local team; we also have a loyal fan following in our catchment and also have a very huge fan following internationally. We have been growing for the past four seasons and we can only see it growing further this year.

    Q. What strategy was followed during the two player auctions and were you affected by not being able to retain some of them?
    We are very happy with the way the team has shaped up. We have great cricketing talent like Adam Gilchrist, Shaun Marsh, David Hussey, Praveen Kumar and Piyush Chawla, to name a few.

     

    We believe that we have the required strength in our team to take us all the way. Based on lessons learnt last season, we have enhanced the team strength with players like Azhar Mehmood and James Faulkner. We also have a great mix of experienced and young domestic players.

    Q. What are Kings XI Punjab‘s marketing efforts this year?
    Marketing is an integral part of our overall strategy; it helps us build a stronger connection with our fans. Our efforts are aimed at reaching out to our fans through all possible mediums.

     

    Currently one of the unique activities undertaken by us is our association with Indraprastha All India Sports Foundation for the ‘Cricket Champs‘ reality show. This initiative aims at nurturing youth to develop skills which not only will make them successful cricket captains but also help them in their personal endeavours.

    Q. Is Kings XI Punjab able to do activation during the off-season once the IPL gets over or is non availability of players an issue?
    We are there in our catchment area throughout the year whether through our presence on the social media like Facebook or with activities like KXIP Cup, Rocky and Ranjit Voice Hunt. We have always been doing activities to connect with our fans from time to time. Player availability is not an issue.

    Q. With the Big Bash league doing well in Australia, the debate about club versus country has again raised its ahead given how financially lucrative it is to play for clubs. How do you see things shaping up going forward?
    I see this format of the game with different perspective rather than just the financials. We believe that the club / IPL format provides the budding cricketers to showcase their talent and further hone their skills as they get an opportunity to play with and learn from experienced players. IPL has been a suitable platform to judge performance.
  • CDF to increase stake in USL

    CDF to increase stake in USL

    Century Direct Fund (CDF) of Mauritius LLC, which currently holds 18.42 per cent equity stakes in United Studios Ltd, will be increasing its stake by another one percent as TCFC Finance Ltd is selling out its stake in United Studios.

    United Studios Ltd is a company under the umbrella of Unilazer group. Other group companies include United Teleshopping, United TV (UTV), a TV software production organisation, and UTV Interactive which is a wholly-owned susbidiary of UTV.

    TCFC Finance Ltd held 71,000 equity shares constituting 0.77 per cent of the current paid up capital of United Studios. The investmend had been made as co-investor along with CDF to which TCFC was an advisor.

    As a result of a restructuring of the operations of TCFC Finance, it has ceased to be an advisor to CDF and has agreed to sell its investment in United Studios to Century Direct Fund.

    The Foreign Investment Promotion Board (FIPB) approved United Studios proposal recently. The other foreign shareholder in United Studios is Mitsui group of Japan which holds 18,49,990 shares aggregating to 20 per cent of the total paid up equity capital of the company.

    Total foreign equity in United Studios amount to 38.42 per cent amounting to 35,54,000 equity shares of Rs 10 each.

    Earlier, the government had given permission for foreign direct investment in United Studios subject to:

    *All future laws on broadcasting will be applicable to United Studios and it will not claim any privilege or protection by virtue of prior approval.

    *The company will not undertake any broadcasting from Indian soil unless specially permitted to do so by the government.

    * There will be no obligation on the part of Doordarshan to buy TV software from the joint venture company, United Studios.

    Earlier this year, Intel Pacific and GE Capital Mauritius Equity Investment picked up 12.86 and 6.98 per cent, respectively in United Teleshopping & Marketing Co. Ltd. Subsequently, the foreign equity in United Teleshopping has increased from 45.45 to 57.14 per cent amounting to Rs 360 lakh. United Teleshopping is in the process of issuing fresh equity of 13,50,000 shares of Rs 10 each in the revised paid up capital of Rs 630.07 lakh which will be subscribed as follows:

    * Draper India International Mauritius– 17.86 per cent
    * Walden-Nikko Mauritius Company, Mauritius– 19.44 per cent
    * Intel Pacific Incorporation, USA — 12.86 per cent
    * GE Capital Mauritius Equity Investment –6.98 per cent.

    Last year, UTV promoters had decided to buyout Rupert Murdoch-controlled News Corp’s 37 per cent equity stake in the Indian media house. Part of the additional funding for this News Corp shareholding buyback came from FII, Warburg Pincus.