From : Business Standard
Telecom services provider Vodafone is looking to increase its rural customer base in Gujarat through state government-run schemes such as E-Mamata - a mobile phone-based technology aimed at reducing maternal and infant mortality in the state. "We are the exclusive partner of Gujarat government for the E-Mamata initiative. Of the over 16 million Vodafone customers in Gujarat, over 70 per cent are in rural areas," said Brajesh Bajpai, business head- Gujarat, Vodafone West Ltd at a media interaction on Tuesday. Nationally, of the over 250 million customer base for the company, nearly 74 per cent have rural base.
Showing posts with label Business Standard. Show all posts
Showing posts with label Business Standard. Show all posts
Thursday, September 20, 2012
Monday, June 13, 2011
Beyond borders
From: The Business Standard
For Marico, going global is more than a means of opening up new avenues of growth
In roughly 13 months, between January 2010 and February 2011, fast moving consumer goods company Marico has snapped up four international acquisitions — which include brand Code 10 (Malaysia), Derma Rx (in Singapore via wholly-owned subsidiary Kaya Ltd), Ingwe in South Africa, and an 85 per cent stake in International Consumer Products Corporation (ICP) of Vietnam. That’s one new addition every three months or so.
For Marico — which started its journey as Bombay Oil Industries in a traditional commodity-driven business — going global is not just a means of opening up new avenues of growth but also an opportunity for cross-border learning. That, in part, explains the shopping spree, and the amazing growth of its International Business Group (IBG). With a footprint in West Asia, North Africa, South Africa, Bangladesh, Malaysia and now Vietnam, the division has grown from Rs 96 crore in 2004-05 to Rs 734 crore in 2010-11.
Today, Marico’s international business fetches almost a quarter of the group’s revenues estimated at Rs 3,300 crore for 2010-11, thanks to a judicious mix of organic (two-thirds of the IBG’s revenues) and inorganic growth. The Mumbai-headquartered company started off by exporting its flagship coconut oil Parachute brand across the subcontinent and in West Asia in the early 1990s, though its real foray as a serious investor overseas happened more recently, in 2000 in Bangladesh, when it set up a manufacturing facility for Parachute oil just outside capital Dhaka. Bangladesh brings in the lion’s share of IBG’s revenues at over 50 per cent, with West Asia (currently present in the Gulf Cooperation Council countries, Yemen, Sudan and the Levant region) bringing in another 30 per cent. The balance is contributed by the other geographies where Marico has a footprint, namely, Egypt, South Africa, Malaysia and Vietnam.
These acquisitions have also brought more than six new brands under the Marico umbrella, significantly adding to the company’s international offerings that comprised only one brand (Parachute) till about 2005. However, the company’s revenue mix is still extremely dependent on Parachute (hair care) and Saffola (edible oil), its top grossers, which together bring in close to 60 per cent of Marico’s overall revenues, points out Swati Gupta, senior research analyst (institutional clients), AC Choksi Share Brokers.
Marico has 14 production units overseas, seven owned and seven based on the contract manufacturing model. Last month, the company announced that it will set its eighth plant in Bangladesh at an investment of Rs 35 crore.
Marico is well aware that to take the next step towards being a global conglomerate, it will have to leverage its acquisitions well. “Going forward, we want to grow both in width and in depth,” says Vijay Subramanium, CEO (international business), Marico. “In terms of depth, the company wants to consolidate in the current geographies, introduce value-added offerings and gain scale. In terms of width, the company will continue to expand through organic and inorganic routes,” he adds.
In sum, Marico’s international expansion rests on three pivots — one, capitalising on the strengths of its acquisitions in categories such as hair care, healthcare (termed as nourishment franchise) and male grooming. Two, concentrating on emerging markets of Asia and Africa. Three, cross-pollinating products across geographies. Brajesh Bajpai, vice-president (sales and marketing), Vodafone who once spearheaded Marico’s Egypt and West Asia operations, adds, “The Marico stock is less affected now by factors like lack of demand and supply chain pressures in India.”
From the looks of it, Marico is looking at segments growing quickly and where penetration is low. In India, Parachute and Saffola have tried many brand extensions; not all have been successful. Says Shirish Pardeshi, co-head, research, Anand Rathi Financial Services, “There is a limit to how much more these brands can grow. It is wise that Marico is building a strong product pipeline abroad. In the future, the company could explore the possibility of bringing back these brands to India.”
Likewise, other FMCG majors such as Dabur, Godrej and Emami have also tried to de-risk their domestic operations by following the Indian diaspora to markets of West Asia, South East Asia, and parts of Africa. Dabur, for instance, has manufacturing units in Bangladesh, Nepal, Egypt, Nigeria and the UAE. The company recently announced its decision to bring to India its Hobby brand, which came under its fold during the Turkish acquisition of Hobi Kozmetik. On its part, Godrej is estimated to have spent $600 million on acquisitions over the years and owns brands such as Cuticura, Erasmic, Adorn, Nulon, Apri, thanks to the buy-out of Keyline Brands of the UK in 2005, and the home care, personal wash and hair care portfolio of Megasari (Indonesia) following its acquisition last year.
| Beyond borders |
| Preeti Khicha / Mumbai June 6, 2011, 0:48 IST |
In roughly 13 months, between January 2010 and February 2011, fast moving consumer goods company Marico has snapped up four international acquisitions — which include brand Code 10 (Malaysia), Derma Rx (in Singapore via wholly-owned subsidiary Kaya Ltd), Ingwe in South Africa, and an 85 per cent stake in International Consumer Products Corporation (ICP) of Vietnam. That’s one new addition every three months or so.For Marico — which started its journey as Bombay Oil Industries in a traditional commodity-driven business — going global is not just a means of opening up new avenues of growth but also an opportunity for cross-border learning. That, in part, explains the shopping spree, and the amazing growth of its International Business Group (IBG). With a footprint in West Asia, North Africa, South Africa, Bangladesh, Malaysia and now Vietnam, the division has grown from Rs 96 crore in 2004-05 to Rs 734 crore in 2010-11.
Today, Marico’s international business fetches almost a quarter of the group’s revenues estimated at Rs 3,300 crore for 2010-11, thanks to a judicious mix of organic (two-thirds of the IBG’s revenues) and inorganic growth. The Mumbai-headquartered company started off by exporting its flagship coconut oil Parachute brand across the subcontinent and in West Asia in the early 1990s, though its real foray as a serious investor overseas happened more recently, in 2000 in Bangladesh, when it set up a manufacturing facility for Parachute oil just outside capital Dhaka. Bangladesh brings in the lion’s share of IBG’s revenues at over 50 per cent, with West Asia (currently present in the Gulf Cooperation Council countries, Yemen, Sudan and the Levant region) bringing in another 30 per cent. The balance is contributed by the other geographies where Marico has a footprint, namely, Egypt, South Africa, Malaysia and Vietnam.
These acquisitions have also brought more than six new brands under the Marico umbrella, significantly adding to the company’s international offerings that comprised only one brand (Parachute) till about 2005. However, the company’s revenue mix is still extremely dependent on Parachute (hair care) and Saffola (edible oil), its top grossers, which together bring in close to 60 per cent of Marico’s overall revenues, points out Swati Gupta, senior research analyst (institutional clients), AC Choksi Share Brokers.
Marico has 14 production units overseas, seven owned and seven based on the contract manufacturing model. Last month, the company announced that it will set its eighth plant in Bangladesh at an investment of Rs 35 crore.Marico is well aware that to take the next step towards being a global conglomerate, it will have to leverage its acquisitions well. “Going forward, we want to grow both in width and in depth,” says Vijay Subramanium, CEO (international business), Marico. “In terms of depth, the company wants to consolidate in the current geographies, introduce value-added offerings and gain scale. In terms of width, the company will continue to expand through organic and inorganic routes,” he adds.
In sum, Marico’s international expansion rests on three pivots — one, capitalising on the strengths of its acquisitions in categories such as hair care, healthcare (termed as nourishment franchise) and male grooming. Two, concentrating on emerging markets of Asia and Africa. Three, cross-pollinating products across geographies. Brajesh Bajpai, vice-president (sales and marketing), Vodafone who once spearheaded Marico’s Egypt and West Asia operations, adds, “The Marico stock is less affected now by factors like lack of demand and supply chain pressures in India.”
From the looks of it, Marico is looking at segments growing quickly and where penetration is low. In India, Parachute and Saffola have tried many brand extensions; not all have been successful. Says Shirish Pardeshi, co-head, research, Anand Rathi Financial Services, “There is a limit to how much more these brands can grow. It is wise that Marico is building a strong product pipeline abroad. In the future, the company could explore the possibility of bringing back these brands to India.”
Likewise, other FMCG majors such as Dabur, Godrej and Emami have also tried to de-risk their domestic operations by following the Indian diaspora to markets of West Asia, South East Asia, and parts of Africa. Dabur, for instance, has manufacturing units in Bangladesh, Nepal, Egypt, Nigeria and the UAE. The company recently announced its decision to bring to India its Hobby brand, which came under its fold during the Turkish acquisition of Hobi Kozmetik. On its part, Godrej is estimated to have spent $600 million on acquisitions over the years and owns brands such as Cuticura, Erasmic, Adorn, Nulon, Apri, thanks to the buy-out of Keyline Brands of the UK in 2005, and the home care, personal wash and hair care portfolio of Megasari (Indonesia) following its acquisition last year.
Thursday, October 05, 2006
New Job - Covered in Business Standard
Brajesh Bajpai (BMD 96) to Head Marico Acquisition in Egypt
From the: Business Standard
Marico eyes more buys in Egypt
Priyanka Sangani / Mumbai October 03, 2006
From Business Standard
After acquiring the Egyptian hair care brand Fiancee last month, Mumbai-based Marico Industries is hungry for more. The company was scanning the Egyptian market for more acquisitions, Marico CFO Milind Sarwate told Business Standard.
This time Marico is looking closely at the beauty and wellness segments. Marico may also examine rationalising the Fiancee portfolio.
A source close to the development said Marico was already in talks for other international acquisitions. But like all Marico acquisitions, the company will pick up brands and not entire companies.
Sarwate said the company would continue with its strategy of acquiring brands as companies often came with a lot of unwanted baggage like litigation or unwanted assets.
To get a closer grip on its Egyptian operations, Marico recently appointed Brajesh Bajpai, a former executive of Frito Lay India, as its country head for the African nation. Marico might also make Egypt the hub for its expansion into other African markets.
The company is also looking at other African countries like South Africa for identifying potential acquisition targets, apart from South-East Asian countries like Vietnam, Indonesia and Malaysia.
Sarwate said, “Any country where it will be difficult for Marico to export its products because of import duties will be a potential acquisition market.”
Marico may also consider manufacturing its Indian brands in Egypt in order to reach other markets in Africa.
At present, the company’s immediate task is to integrate Fiancee with Marico. This will be followed by a rationalisation of the Fiancee portfolio. “Apart from hair gels and creams, the brand also has a presence in skin care and shampoos,” said Sarwate.
With Marico’s stated focus being pre and post-shampoo markets, and not shampoos, it is likely that the Fiancee shampoos might be the first casualty in the rationalisation process.
Fiancee is expected to do sales of Rs 50-55 crore in the next 12 months and its performance will show on Marico’s balance sheet from the third quarter of this financial year.
Marico executives claim Fiancee has a market share of more than 20 per cent in certain parts of Egypt, where the hair care market is valued at Rs 175 crore.
Closer home too, Sarwate said they would continue to evaluate their strategy on brands which were on maintenance mode like the food brands, Sweekar and SIL.
However, in India, Marico will continue adding to its portfolio, though not through acquisitions in the near future. The national roll-out of products like leave-on conditioners and Parachute Therapie will happen over the next few months.
From the: Business Standard
Marico eyes more buys in EgyptPriyanka Sangani / Mumbai October 03, 2006
From Business Standard
After acquiring the Egyptian hair care brand Fiancee last month, Mumbai-based Marico Industries is hungry for more. The company was scanning the Egyptian market for more acquisitions, Marico CFO Milind Sarwate told Business Standard.
This time Marico is looking closely at the beauty and wellness segments. Marico may also examine rationalising the Fiancee portfolio.
A source close to the development said Marico was already in talks for other international acquisitions. But like all Marico acquisitions, the company will pick up brands and not entire companies.
Sarwate said the company would continue with its strategy of acquiring brands as companies often came with a lot of unwanted baggage like litigation or unwanted assets.
To get a closer grip on its Egyptian operations, Marico recently appointed Brajesh Bajpai, a former executive of Frito Lay India, as its country head for the African nation. Marico might also make Egypt the hub for its expansion into other African markets.
The company is also looking at other African countries like South Africa for identifying potential acquisition targets, apart from South-East Asian countries like Vietnam, Indonesia and Malaysia.
Sarwate said, “Any country where it will be difficult for Marico to export its products because of import duties will be a potential acquisition market.”
Marico may also consider manufacturing its Indian brands in Egypt in order to reach other markets in Africa.
At present, the company’s immediate task is to integrate Fiancee with Marico. This will be followed by a rationalisation of the Fiancee portfolio. “Apart from hair gels and creams, the brand also has a presence in skin care and shampoos,” said Sarwate.
With Marico’s stated focus being pre and post-shampoo markets, and not shampoos, it is likely that the Fiancee shampoos might be the first casualty in the rationalisation process.
Fiancee is expected to do sales of Rs 50-55 crore in the next 12 months and its performance will show on Marico’s balance sheet from the third quarter of this financial year.
Marico executives claim Fiancee has a market share of more than 20 per cent in certain parts of Egypt, where the hair care market is valued at Rs 175 crore.
Closer home too, Sarwate said they would continue to evaluate their strategy on brands which were on maintenance mode like the food brands, Sweekar and SIL.
However, in India, Marico will continue adding to its portfolio, though not through acquisitions in the near future. The national roll-out of products like leave-on conditioners and Parachute Therapie will happen over the next few months.
Saturday, March 11, 2006
Frito-Lay gets Gujarat specific, launches new Kurkure flavour
From : Business Standard
Frito-Lay gets Gujarat specific, launches new Kurkure flavour
Our Regional Bureau / Mumbai/ Ahmedabad March 09, 2006
If you thought the huge appetite of Gujarat was confined to the plethora of restaurants and roadside larries, here is something that might defy it. Last year alone, the state consumed Kurkure worth at least Rs 2 crore. To continue the trend, FritoLay India launched Kurkure Solid Masti’s ‘Masala Twist’ — a Gujarat specific variant, to target the state market. Gujarat accounts for more than 60 per cent of Kurkure sales in the country.
The company on Tuesday launched its new tea time snack Kurkure Solid Masti, which will target elderly people.
"Gujarat is our major market. The state accounts for more than 60 per cent of our Kurkure sales and therefore, we are coming up with a twisty Masala twist. This is a sign of our commitment to the market," Brajesh Bajpai, vice-president marketing (west) told Business Standard.
The company is also coming up with outdoor promotion and marketing campaigns in all the major cities of Gujarat. Further, it will conduct various activities in bid to strengthen its market presence. Bajpai said the company controls about 50 per cent market share in the country's Rs 2,000 crore snacks market. He added that the company has decided to launch Kurkure Solid Masti, after market researched showed customer wanted heavier snacks during tea time.
"Our research showed that 40 per cent of snacks are taken during tea time. Consumers wanted more heavier snacks that could sustain them till dinner, hence we decided to come up with this products. We are especially targeting elderly people as this product is meant for household consumption, " he added.
The company plans to add-up more 10-15 per cent in sale of Kurkure’s volume. Company’s brand ambassador Juhi Chawla will be marketing this product too.
Frito-Lay gets Gujarat specific, launches new Kurkure flavour
Our Regional Bureau / Mumbai/ Ahmedabad March 09, 2006
If you thought the huge appetite of Gujarat was confined to the plethora of restaurants and roadside larries, here is something that might defy it. Last year alone, the state consumed Kurkure worth at least Rs 2 crore. To continue the trend, FritoLay India launched Kurkure Solid Masti’s ‘Masala Twist’ — a Gujarat specific variant, to target the state market. Gujarat accounts for more than 60 per cent of Kurkure sales in the country.
The company on Tuesday launched its new tea time snack Kurkure Solid Masti, which will target elderly people.
"Gujarat is our major market. The state accounts for more than 60 per cent of our Kurkure sales and therefore, we are coming up with a twisty Masala twist. This is a sign of our commitment to the market," Brajesh Bajpai, vice-president marketing (west) told Business Standard.
The company is also coming up with outdoor promotion and marketing campaigns in all the major cities of Gujarat. Further, it will conduct various activities in bid to strengthen its market presence. Bajpai said the company controls about 50 per cent market share in the country's Rs 2,000 crore snacks market. He added that the company has decided to launch Kurkure Solid Masti, after market researched showed customer wanted heavier snacks during tea time.
"Our research showed that 40 per cent of snacks are taken during tea time. Consumers wanted more heavier snacks that could sustain them till dinner, hence we decided to come up with this products. We are especially targeting elderly people as this product is meant for household consumption, " he added.
The company plans to add-up more 10-15 per cent in sale of Kurkure’s volume. Company’s brand ambassador Juhi Chawla will be marketing this product too.
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