Академический Документы
Профессиональный Документы
Культура Документы
Private equity firms invest about Rs 940 crore in agri-logistics and cold chain
industry in past three years
India, with an extremely high rate of food wastage, is seeing an increasing interest
from private equity investors in the agri-logistics and cold chain industry,
attracting high valuations for their scalable and high growth businesses. PE firms
FRPT Research
have invested about $151.55 million (Rs 940 crore) in 11 companies in the sector
in the past three years, according to Venture Intelligence. Sohan Lal Commodity
received the largest investment of $33 million so far by Everstone, Mayfield, Nexus
Ventures and ICICI Bank. More investments are lined up for the year ahead. "There
are at least 8-10 companies in the market looking to raise funds. Anybody who has
annual revenue of more than Rs 10 crore is looking," said Hemendra Mathur,
managing director, SEAF India Agribusiness International Fund. Agri-logistics and
cold chain companies, which are seeing revenue growth anywhere between 20 per
cent and 100 per cent annually, are hoping to raise anywhere betweenRs 15 crore
and Rs 100 crore each, to scale operations across the country, a necessity for
growing this business faster. Suri Agrofresh, which is half owned by Europe's Total
Produce, is looking to dilute 10-20 per cent equity in the company, its managing
director Hitin Suri told ET. It has been in talks with more than 10 private equity
firms. Some other companies scouting for private equity are Origo Commodities,
Dev Bhumi Cold Chains, Scheduler Logistics and IG International.
FRPT Research
crushing season remains, which can be utilised by the mills, mostly in the coastal
states," stated an ISMA release. After a sluggish start, sugarcane crushing has
picked up pace by the end of Decemer, 2013. ISMA estimate for sugar production
during 2013-14 stands at 250 lakh tonnes. According to ISMA, 476 mills started
their crushing operations by December 31, 2013 for the 2013-14 season.
"Although this is 23 less in numbers than last year during same corresponding
period, but it seems that the sugar production is slowly catching up the last year's
trend," stated the release. Total sugar production in the country till December 31 is
about 57.39 lakh tonnes, a decline of about 29%, as compared to 80.32 lakh tonne
sugar production last year same time. It was 50% less on December 15. Lower
production this year is due to late start of mills because of the cane pricing
problem
Southern beauty salon brand Naturals is expanding in the North and soon
expects to have a national footprint
This is yet another case of a regional player with national ambitions. Southern
beauty salon brand Naturals is now expanding its presence in the North, and hopes
to soon have a national footprint. The chain recently opened a new salon at the JW
Marriott at the Aerocity, making it its 30 store in the North. We have seen a
window of opportunity, and are looking to become the best national brand of
beauty salons in the country, says C.K. Kumaravel, CEO Naturals. The decade old
Naturals is a dominant presence in the beauty business in the southern part of the
country, with more than 125 franchisee-run salons in Chennai alone. It's also
expanded into small towns of Tamil Nadu such as Thanjavur and Chidambaram,
FRPT Research
and now has 300 salons across the country. Now, Kumaravel says the brand has
drawn up ambitions to scale it up by ten times to 3000 salons by 2017. According
to a Ficci-PwC report, the size of the hair and beauty salon business in India is
around Rs 7,000 crore and expected to double by 2015. It's a pretty crowded space
with literally every neighbourhood in India having a beauty salon. But Kumaravel
says he is clear on his target audience, and does not fear competition. He claims
that while there are many established luxury salon brands in the north, that
segment forms only 5 per cent of the market. His positioning is mass premium,
which he says, forms the largest chunk of the salon business with about 75 per cent
market share. And his belief is that capturing this segment will make him a
national brand. Kumaravel might be taking a leaf out of his brother C K
Ranganathans copybook . CavinKare, the Chennai headquartered FMCG company
started by Ranganathan, has seen some of its brands such as Nyle successfully go
national.
FRPT Research
per cent between October and November compared with 0.46 per cent between
the same two months a year ago. ...the food inflation stood at 16.17 per cent
against 15.02 per cent of the previous month and 10.85 per cent in during the
corresponding month of the previous year, it said. According to the press release,
the largest upward pressure to the change in the current index came from food
group contributing 2.23 percentage points to the total change. At item level, rice,
wheat, wheat atta, milk, pure ghee, garlic, potato, tomato and other vegetable
items. Tea readymade, etc. are responsible for the rise in the index. However, this
(rise in index) was compensated to some extend by groundnut oil, fresh fish,
poultry, onion, ginger, electric charges, medicine (allopathic), petrol, putting
downward pressure on the index.
FRPT Research
monthly. "We are seeing a gradual increase in milk supply which is expected to go
up in a fortnight," said RS Sodhi, managing director, GCMMF that is the largest
dairy entity in the country and markets close to 92 lakh litre milk everyday. Milk
procurement by its district level member unions has increased by 54% in last five
years. Milk procurement increases from October till March across North and
Western India as winters make cattle more productive. Private dairies engaged
into liquid milk marketing said that by January end, peak procurement would come
and the inventory situation will improve. This could possibly lead to a stable milk
prices in the year ahead. Leading milk brand in Delhi-NCR market, Mother Dairy,
has seen a 7% increase in procurement over the previous year at 35 lakh litre per
day. "From Uttar Pradesh and Punjab, milk procurement is increasing and we
expect to build stocks over the next three months," said Mother Dairy MD S
Nagarajan. He added that it is too early to say how liquid milk prices would move
in the year ahead. Paras, the third-largest dairy brand in the Delhi-NCR after
Mother Dairy and Amul, is expecting liquid milk prices to remain stable for the
next few months.
Hindustan Unilever: Executives see job cuts following CEO Paul Polman's
move to cut cost
Dozens of top marketing managers at Hindustan Unilever are anxious that a major
global business re-organisation unleashed by Unilever Chairman Paul Polman will
result in job cuts in India, limit growth prospects for managers who survive, and
stifle local freedom and innovation. At an investor conference in London in earlyDecember, Polman announced that Unilever will cut 800 marketing jobs, slash its
FRPT Research
product variants by 30 per cent and focus predominantly on brands with over 1
billion euros in sales, all in a bid to save costs. Its Chief Marketing Officer Keith
Weed also hinted that the company is now more inclined to favour fewer global
advertising concepts over multiple local ideas. These measures, local managers
believe, will impact top marketing talents in India as Unilever is now asking global
marketing and brand managers to "go direct to big countries rather than through
regional hubs". "This will impact managers at work level 1 (entry level) and 2a to
2b. There will be questions at work level 4 (middle- to senior-management), from
a regional brand development and country brandbuilding perspective," says a
former Unilever manager aware of the recent developments.
FRPT Research
out in the new year to push brand Coke." Trade sources point out that none of the
other brands in Coca-Cola's portfolio, including Thums Up, Sprite, Fanta and Maaza
soft drinks, Kinley water and Minute Maid juices, are currently being advertised.
Coca-Cola is learnt to have spent at least Rs 12-15 crore on the print burst, which is
expected to last about a week. It carries the lyrics of a jingle Prasoon Joshi wrote
for a television campaign released in early 2012. Coke is set to follow it up with a
television campaign featuring actors Deepika Padukone and Farhan Akhtar. "We
have run numerous print ads in the past for multiple integrated campaigns and
hence it will be difficult to comment whether this is the most expensive," the
company said. India is one of the rare markets where Coca-Cola is available and yet
it's not the top cola brand. Coke trails behind its own Thums Up cola and Sprite
lemon drink, as well as rival Pepsi cola in the Indian market a fact that the
Atlantabased beverage giant is uncomfortable about.
FRPT Research
looking to upgrade for better consumption experiences," said Varun Berry, India
business head and executive director at Britannia.
FRPT Research
percent of Revlons net sales, and the restructuring will result in about $22 million
of pretax charges, the New York-based company said in a filing with the U.S.
Securities and Exchange Commission. The changes are expected to reduce costs by
about $11 million a year, Revlon said. The company, which posted profit declines
in 2011 and 2012, has been making acquisitions and introducing new products as
sales in some of its larger brands slow. Earlier last year it bought Colomer Group,
giving it Creative Nail professional and Shellac nail polishes, as well as American
Crew mens hair-care products. Revlon was unable to gain scale and relevance in
the important Chinese beauty market, Connie Maneaty, an analyst at BMO Capital
Markets in New York, wrote in a note yesterday. She rates the shares market
perform, the equivalent of a hold. Colomer Chief Executive Officer Lorenzo Delpani
took over as Revlons CEO in November, replacing interim chief David Kennedy.
The reorganization isnt related to the acquisition, Revlon said.
FRPT Research
10
with clean hands and the transaction in question is not a bona fide one. In other
words, without investigation of serious allegations made attacking the transaction
in question, the learned company judge has granted the permission, which is not
proper, the Bench comprising Justice N. Kumar and Justice Rathnakala said.
FRPT Research
11
sciences companies such as Jubilant Life Sciences, which uses ethanol or industrial
alcohol for making chemicals. They have alleged identical prices were quoted in
bids offered by various ethanol suppliers, especially in Uttar Pradesh and Gujarat.
And, that most ethanol suppliers which colluded were either members of the
Indian Sugar Mills Association or the National Federation of Cooperative Sugar
Factories. CCI had received similar complaints earlier, against 10-12 sugar mills.
FRPT Research
12
FRPT Research
13
for manufacturing milk products, Sodhi told Business Line. Maintaining its core
cooperative structure, GCMMF will source milk from cooperative dairies in the US.
FRPT Research
14
companies, as part of surveillance action. The new limits, which ensure that stock
prices dont go up or down beyond a level during a trading session, will be effective
from Thursday. BSE said in a circular that the price of UB (Holdings) Ltd. cannot
change by more than 10% in a day. It has also set an upper limit of 10% for Viceroy
Hotels Ltd., Global Capital Markets Ltd., Mavens Biotech Ltd. and Transport
Corporation of India Ltd. While the limits for UB Engineering Ltd. and Prime
Industries Ltd. have been set at 5% and 2%.
FRPT Research
15
home care.
FRPT Research
16
the domestic market, negotiators acting on behalf of Mallya insist they deserve a
good premium. A UB Group spokesperson, however, denied any such plan to
offload the stake, but sources said the negotiations have been going on between
the two for over a year now. If the deal goes through, Heineken will end up with
slightly over 50 per cent stake in United Breweries, the makers of popular
Kingfisher and Kalyani Black Label beers. It will also mean that about 80 per cent
of the total market will be controlled by Heineken and SAB Miller, both foreign
multinationals, thus ending the dominance of Indian business houses in the
segment. The stake sale will allow Mallya and his companies to mop up between Rs
2,000 crore and Rs 2,250 crore, depending on the premium he is able to get over
the existing share price. One of the reasons for Mallya to divest part of his stake in
United Breweries could be to reduce his debt. But he could also be looking at
getting better valuations from international liquor companies, which see a huge
potential in the Indian market.
FRPT Research
17
shareholding rules. After the reclassification of Poddar Group, Procter and Gamble
(P&G) became the sole promoter in the company. The OFS by the Poddar Group for
7.87% of their holding in Gillette was fully subscribed in the last month. Now,
Adventz chief Poddar holds the remaining 4.99% stake in the company.
FRPT Research
18
Either flavour of products was getting less or the food was getting stale due to
improper packaging, particularly processed food made by cottage industries,
which use candle and sealing machine to pack the covers, Madhav Chakraborthy,
Joint Director, IIP, Hyderabad told reporters here. Moreover, there was some
stipulated norms in packaging food products, depending on its shelf life and also
marketing, whether domestic or export, which a large section of the producers
were not adhering to, he said. Chakraborthy, here as part of a National workshop
in packaging of whole and ground spices, jointly organised by Ministry of Food
Processing Industries, tomorrow, said there was the need to create awareness
among traders and also general public in this regard. The aim of the workshop is to
enhance the knowledge of packaging among the producers of whole and ground
spices, with a view to increasing their local trade besides its export potential,
Chakraborthy said.
FRPT Research
19
Oil India to enter dairy sector; inks pact with Irma for study
As part of a corporate social responsibility (CSR) initiative, energy major Oil India
Ltd (OIL) has decided to step into dairy sector and has signed an agreement with
Institute of Rural Management, Anand (Irma) to carry out a feasibility study.
According to company sources, a detailed project report (DPR) would be prepared
after the study in two districts of Assam where Oil India has significant presence.
"It is going to be a significant CSR initiative of the company. This project is aimed at
filling the gap in milk production in the North-East and giving employment
opportunity to the youths of Assam," a source said. The state-run OIL has signed an
memorandum of understanding (MoU) with Irma in Gujarat around 10 days ago
for the study that will cover select villages in Dibrugarh and Tinsukia districts of
the state.
FRPT Research
20
land bank of 241 acres worth Rs.5,370 crore in Bangalore as of 30 September. The
presence of information technology and business outsourcing companies in
Bangalore has pushed up demand for commercial and residential properties in the
city, and real estate companies are scouting for industrial land in key locations to
cater to the demand, say property experts. Bangalore was the only Indian city to
feature in a list of top 20 real estate investment destinations in Asia Pacific in a
report published this month by the Urban Land Institute and
PricewaterhouseCoopers.
FRPT Research
21
Disclaimer
The contents (Information, material, suggestions) have been provided for general information. The
information and opinions contained in the document have been compiled from publicly available
data or sources believed to be reliable. If the said content contains any mistakes, omissions,
inaccuracies and typographical errors, etc. FRPT Research assumes no responsibility thereof. The
company does not warrant the totality and absolute accuracy, adequacy or completeness of this
information and materials and expressly disclaims any liability for errors or omissions in this
information and materials herein.
FRPT Research
22