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Only 'expiry date' for food items, not 'best before': Ram Vilas Paswan
Union Minister Ram Vilas Paswan said today labels printed on food items should
carry only "expiry date", and not "best before", which has no meaning. "We want
that only there is 'expiry date'. There is no meaning in 'best before'", Paswan, the
Consumer Affairs, Food and Public Distribution Minister, told PTI here. Paswan
said he would convene a meeting of his department to "work out" and implement
this measure. National Consumer Disputes Redressal Commission ( NCDRC)
President D K Jain said last week consumers get confused about labels printed on
food items and the Food Safety and Standards Authority ( FSSAI) should look into
labelling issues related to 'expiry date' and 'best before'. Jain had wondered if 'best
before' label means it is fit for human consumption after six months. Paswan also
said the Centre is in discussion with National Association of Street Vendors of India
vis-a-vis earmarking certain areas in cities for selling of such good. "We want a
system for (selling of) street food. We want this activity to take place in particular
place", he said.
Nestle India hopes to achieve double digit growth for Maggi noodles
In the aftermath of the Maggi crisis, Nestle India is aggressively trying to increase
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the consumption of its flagship instant noodles brand eyeing double digit growth, a
top company executive said. It is also sharpening focus on digital media and
pushing other products so that all categories contribute almost equally to the
company's overall revenue. "Results for the last two quarters of 2015 have been
impacted by the Maggi Noodles issue. However, we are committed towards double
digit (growth) that is triggered by actual volume consumption increase," Suresh
Narayanan, chairman and managing director, Nestle India told PTI. The Swiss
major had taken a hit of Rs 450 crore including destroying over 30,000 tonnes of
the instant noodles since June when it was banned because of alleged excessive
lead content. Maggi, which was relaunched in November after a 5-month ban, is
currently available in over 700 towns and sold by 3 lakh small and large
shopkeepers, the company said. "We are investing significantly in the re-launch,
and we will be ensuring that the consumer is aware that Maggi Noodles are safe to
consume," Narayanan said. The company is now simultaneously pushing growth in
other categories such as milk products and chocolates, along with the relaunch of
Maggi. "We want to grow our business so that each category and brand contributes
in more or less equal measure to the overall revenues of the firm. We are
aggressively pushing growth in other categories such as milk products and
chocolates," he said. The company is engaging actively in social media, and is
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building a strong digital presence to strengthen the Maggi brand. Along with TV
and print campaigns the company is engaging with customers via Facebook and
Twitter. "Digital and social media is central to our brand-building process. We
believe that big things happen for brands when these two are in synergy," he said.
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centricity will be the way forward for health insurers as well to move on the path
of profitable growth. In 2016, health insurers should focus on uncomplicating
health insurance so that consumers find products that suit their dynamic needs.
Keeping in mind the growing awareness that consumers possess today, health
insurance providers must continue to offer them the freedom to choose any type of
healthcare facility anywhere. The online space is witnessing tremendous uptake as
more consumers are going online. The health insurance segment should follow suit
and also step on, to try and offer products exclusively for the online segment. With
suitable underwriting norms, basic health insurance policies could be made
available online, without health checkups, but with self-declarations of health
status. Health insurers should also explore ways of increasing customer
engagement across the digital channels, in addition to investing in sustained efforts
on uncomplicating health insurance to offer simple products and quick services. As
the Internet has begun to play a vital role in decision making for all types of
products and services, people view reviews posted by others on their purchase
decisions and what they perceive to be good or bad. Acceptance of the digital
platform amongst people of all ages also enables insurers to use a swift marketing
tool to help customers with comparison charts to make rapid decisions. Insurers in
this segment should focus on simplifying the entire process of purchase and claims
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for customers. Health insurers must develop the technological capability to close
an insurance policy purchase online. With mobile apps helping reduce the amount
of paper businesses use, it should be seen as vital for insurance companies to use
not only just as a marketing tool, but also as a business process function. With a
burgeoning Indian smartphone market, coupled with the increasing acceptance of
mobile applications that simplify transactions such as bill payment, financial
management and information aggregation, etc., the insurance industry must find a
way to create applications that help in making all processes paperless right from
pre policy checkups to buying policies to claims settlement.
How 2015 brought us 'sin taxes' on drinks, tobacco and paan masala
If there was an award for making pro-health public policies in India, its winner for
2015 would not be a policy-maker in the Ministry of Health, but someone in an
unlikely place - the Ministry of Finance. By introducing a new slab of taxation for
unhealthy products in the proposed Goods and Services Tax (GST) regime, Chief
Economic Advisor Arvind Subramanian has set the ball rolling for one of the most
critical policy reforms in public health. The new tax category has been aptly
dubbed sin tax or demerit rate, and for the first time it places aerated sugary
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beverages (so called soft-drinks) alongside tobacco products and paan masala,
which have long been identified as major trigger factors for a range of cancers. The
40 per cent sin tax would be in addition to central levies like excise. The sin tax is
important on several grounds: It brings the tax regime in sync with science. It does
not make economic sense to keep taxes low on soft drinks and tobacco when the
economy is losing billions of dollars every year with growing burden of noncommunicable diseases - heart attacks, diabetes, obesity and cancers. If higher
prices can deter people from consuming harmful products, the tsunami of lifestyle
diseases can be checked to a great extent. Like the tobacco industry, which tried to
deflect the blame for cancer in the 1970s, the soft drink industry is making
desperate bids to shift the blame for obesity from extra intake of sugar to physical
inactivity. Companies like Coca Cola are pumping millions of dollars in outfits such
as Energy Balance Network and some university departments to invade scientific
journals and popular media with the message of focus more on exercise and less
on cutting calories. Multiple studies in countries facing obesity epidemics show
that the bulk of extra calories comes from added sugar in carbonated drinks. A 250
ml bottle of Limca contains 27.5 grams of sugar, which translates into nearly seven
teaspoons of granulated sugar. One 335 ml can of Coca Cola contains 39 grams of
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sugar.
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in the year.
USL to declare sick, refers to BIFR due to net worth erosion by 86%
The board of Diageo-controlled United Spirits Ltd will seek shareholders nod to
declare sick and refer itself to the Board of Industrial and Financial Reconstruction
(BIFR). This, after its net worth eroded by over half due to losses caused by fund
diversions to defunct Kingfisher Airlines Ltd by its chairman Vijay Mallya. USL
stock on Tuesday was down by 2.69% or Rs 82.40 to close at Rs 2,982.45 taking its
market capitalisation to Rs 43,300 crore. Typically, companies that declare sick not
only have their net worth eroded but also their market capitalisation would
significantly lower. "There seems to be a contradiction. You see companies with
penny stocks that are referred to BIFR," said Shriram Subramanian, founder and
managing director of InGovern Research Services, a proxy advisory firm. "We need
to understand what is going on Diageo's mind. Is it to put pressure on Vijay
Mallya?" USL, in a notification to the Bombay Stock Exchange, said the accumulated
losses of the company as on March 31, is Rs 5,045.45 crore, greater than 50% of
the peak net worth of the previous four financial years that is Rs 5,859.62 crores.
The notification said the accumulated losses had increaed to 86.3 per cent by
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March. USL said that it has made provision of Rs 2,082 crore due to losses and
doubtful debts during last fiscal. The Bengaluru-based liquor firm, which owns
brands such as Signature, Antiquity and Black Dog, had in October last year
declared to BIFR that its net worth had eroded by over half. An EGM was to be
convened then to discuss recommending to the sick company restructuring agency.
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positions managing both leisure and business properties at the country's secondlargest hotel chain. An emailed query to a spokesperson for ITC Hotels seeking
details did not elicit any response by the time of filing this article. The
conglomerate has also named Arun Pathak, currently vice president of finance at
the hotel business, as the managing director of an upcoming project in Colombo, its
first overseas hotel project. The changes are part of efforts to pave the way for a
successor to long-serving chairman YC Deveshwar, 68, one of the most high-profile
CEOs of a non-promoter company in India. Deveshwar is scheduled to hang up his
boots in 2017.
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Tata Global Beverages stock jumps 4.2% with a new CEO at Starbucks JV
The stock of Tata Global BeveragesBSE -1.96 % (TGB) jumped 4.2% on December
17. The gain was impressive given that the stock is down by over 4% for the year.
The trigger it announced a change of guard at one of its most promising ventures,
Tata Starbucks, prompting a relief rally on the Street. Historically, new CEOs have
positively impacted the stocks of fast moving consumer goods (FMCG) companies.
HULBSE -0.75 %, BritanniaBSE 1.30 % and Marico have witnessed gains on
bourses after these companies appointed new leaders. A change in the top
management of the Starbucks venture stems hope for a faster turnaround of the
business. The three year old joint venture, still loss-making, has opened 78 outlets
in India. It was the last major trigger that pushed TGB stock up 77% in 2012. The
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stock has since been a laggard on the Street, a reflection of the company's
performance off the Street. The global economic slowdown has impacted tea
consumption resulting in the company's major business of black tea not doing well.
The past two years have been particularly challenging for TGB characterised by
single-digit revenue growth and operating margins of 7-8%. However, prevalence
of a slew of positive factors hints at a possible onset of a bullish period for the
company. Besides the Starbucks venture, the company's products in green tea,
super green teas, decaf coffees, fortified mineral water and natural mineral water
are growing at a promising rate. Its latest acquisition of MAP brand in Australia has
allowed it to enter into the fast-growing single serve segment. Through coffee
pods, the company is looking at making inroads into the developed markets of the
US and Canada. While a rapid growth momentum may still be couple of years away,
the company could just be at an inflection point in its growth trajectory.
Companies like McKinsey, HUL and Samsung skip campus placements, take
PPO route to beat rush
Four marquee recruiters McKinsey, The Boston Consulting Group, Hindustan
Unilever and Samsung partially or wholly skipped the frenzy of engineering
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campus final placements this year, and yet walked with the talent they needed.
McKinsey made all its hires at engineering colleges off-campus while BCG bypassed
placement cells at IIT-Kharagpur and IIT-Guwahati. HUL and Samsung Korea also
skipped campus placement and recruited only through the preplacement offer
(PPO) route. Is this the beginning of the end of the exciting and tumultuous campus
placement process? Not yet, said sources from campus placement cells, but expect
plenty of changes as batch sizes increase and new Indian Institutes of Technology
and Indian Institutes of Management gain traction. "In the next few years we are
likely to see a shift in the current process as more institutes come up and
companies feel the need to cover more campuses," said Mohak Mehta, former
placement manager of IIT-Bombay who now helps several institutes in structuring
their placements. For instance, one/two IITs could centrally host the entire
placement process or IITs may outsource placements to an outside agency, said
Mohak Mehta, former placement manager of IIT-Bombay. The sanctity of
companies lining up day-wise to hire from institutes is being seriously challenged.
"We have already seen a trend of companies using the preplacement route to hire
students.
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different in 2016 than what it has been in 2015? Before we can speculate on this,
two caveats have to be kept in mind. The first is that after two successive failed
monsoons, the next year will see a very good spatial and temporal distribution of
rains. After the strongest El Nino in 100 years in 2015, some early reports have
already speculated that 2016 could see a very strong La Nina and hopefully, that
would translate into good rains for India and thereby provide a much-needed fillip
to rural demand and provide a much needed headwind to the overall growth of the
economy. The second (and a bigger one) is that the central government will finally
shed in 2016 its ostrich-in-the-sand ideology relating to global investment in
retail and to investment per se in e-tail, and come out with a 21st-century
contemporary policy on retail that does not differentiate between modern retail
and traditional retail, or foreign ownership and domestic ownership, or physical
retail and digital retail. India needs an efficient, modern, producer-consumercentric retail ecosystem with minimal levels of intermediation (and its associated
costs and wastages). For more than two decades, governments have been bogged
down by a singular facet the country of origin of investment into this sector
rather than focusing on making the overall producer-consumer value chain
efficient and vibrant.
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should give companies savings at the gross margin level. Companies have typically
been investing these savings behind advertising and promotion in a bid to boost
sales growth. Since that has not boosted growth rates significantly as yet, whether
incremental cost savings flow to profits in the December quarter remains to be
seen.
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ad, Sanjay Baljiwan Pharmacy's ad, Glamour World Ayurvedic's Rocket Capsules
ad, MK Agrotech's Sunpure Refined Sunflower Oil ad, Vibes Healthcare's Vibes
Weight Loss Assurance ad, Dr. Guptas Clinic's ad, Raghav Lifestyle Products' Ajay
Toothpaste ad, The Bodycare's ad and Ayurwin Pharma's Nutrislim ad. In the
education category the ads that were found not conforming to ASCI rules include
brands such as Byju Classes, CL Educate, Rao Edusolutions, Exam Victor, Career
Institute of Commerce and Accounting, IMS Learning Resources, IMS Learning
Resources, CATKing Education, Cheil India, Plat Possible and Triumphant Institute
of Management Education. In the telecom category the complaint against the Airtel
4G was upheld. Other ads of brands in this category include Reliance
Communication and Aircel Business Solutions.
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appliances, fashion, travel, food and what have you. "This year (2015) has been the
year of digital consumers, as more offline buyers shifted to online shopping for
benefits and advantages e-commerce offers," Ankit Nagori, leading e-tailer
Flipkart's chief business officer, told IANS here. With faster internet access through
broadband and Wi-Fi (wirless fidelity) and increasing use of smartphones and
other handheld devices like tablets and i-Pads, browsing e-commerce web sites
and placing orders have become a growing trend in cities and towns across the
country. "Internet penetration through mobiles and access to a variety of brands
and products at affordable prices has made 2015 a year of e-commerce, with
electronics and mobiles emerging as top performers," Nagori asserted.
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another handwash, but one made with naturally derived ingredients, while visuals
seek to corroborate the claim. Members of the family, including children, are
shown using the product as the brand signs with the message: 'Meet the family
that's here to protect yours'. Sajan RaJ Kurup, founder and creative chairman,
Creativeland Asia, said, Godrej Protekt gave us an opportunity to rethink and
redesign communication for a category that usually thrives on the clichd 'use us
or fall ill and stay out of school' fear psychosis. The whole effort on Godrej Protekt
is to stand out cheerfully and refreshingly in a category that is otherwise used to
doling out emotional blackmail disguised in a CSR/charity sort of a tone. It is also
fabulous when you get to work on products that live up to the cheerfulness. Sunil
Kataria, COO sales and marketing and SAARC, Godrej Consumers Products, said,
As a brand, we believe in constantly innovating and creating convenient,
interesting formats, catering to the needs of an ever-evolving customer base. The
new range of Godrej Protekt fits the bill completely." He added that the Protekt
includes a hand sanitiser, Happyfoam (foaming handwash for kids), Masterchefs
hand wash (for stubborn kitchen odours) and Masterblaster (that promises to
leave hands soft and germ-free along with a water-based mosquito repellant).
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primarily comprising of 'KB's Fair Price', 'KB's Conveniently Yours', 'Big Apple' and
'Aadhaar' will be operated by FRL.
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researchers working closely with the product teams for ITC to break this mindset.
The learning is being used to bring out a range of dairy products (ghee has been
launched in Karnataka) and to power new lines of fruit juices and drinks. It has
also been used to brand a range of extensions (wheat atta, atta with multigrains,
atta with methi, salt and fortified Atta), spices (pickle mirch powder, chilli powder,
coriander powder and turmeric powder), instant mixes (gulab jamun, ravi idli, rice
idli and rice dosa) and ready meals. V L Rajesh, divisional chief executive, foods
division, ITC Ltd said, "The philosophy of ITC has been building world class brands
with focus on quality together with sustained value creation for consumers." Even
though the foods business is still small, compared to ITC's total turnover, the
company seems to be intent on spreading the brand's reach and significance within
its portfolio. Two key food brands in the ITC portfolio are Aashirvaad and Sunfeast.
Together they account for more than half the division's sales revenues. The other
brands in the portfolio are Bingo!, Yipee!, Kitchens of India, minto-o, B Natural,
Candyman and Gumon.
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Baba Ramdev's Patanjali, with more than 350 products ranging from noodles and
biscuits to shampoo and toothpaste, is giving heads of consumer goods reason to
sit up and take stock. They've realised Patanjali can't be dismissed as the whim of
the baba the brand is rapidly becoming a contender in the consumer goods space.
Varun Berry, managing director of biscuits giant Britannia, says he has "personally
analysed" Patanjali biscuits. Dabur chief executive Sunil Duggal calls it a 'disruptive
force'. Future Group food & FMCG president Devendra Chawla toured the 150-acre
Patanjali Food Park in Hardwar last week for a "better understanding of the
business" since well-heeled consumers are also buying their products at Big
Bazaar and Food Bazaar stores. Another head of a leading personal care firm said
his parents use a Patanjali product, not the equivalent his company makes.
"Patanjali is competition even in my own home," he said ruefully. Future Group's
Chawla now begins his day with Patanjali Dant Kanti toothpaste and amla juice.
This is the harbinger of a new wave of homegrown brands, he said. "One can get a
glimpse of the future of ayurveda consumption in India... many new products are
about to hit the stores," he said. Consumption of ayurveda products cuts across
income levels. And, as he points out, with acceptance comes extension. "We are
seeing that both mass and the very affluent consumers are picking up Patanjali
products," Chawla said. "The advantage it has that once you buy into the ayurveda
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chemists to push Savlon into rural households, adding heft to its distribution
network which was earlier restricted to wholesalers and retailers, company
executives said.
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Dikhit. American whiskies have, in fact, been making a strong comeback globally
among the hip Millennials and India is no exception. This is due, in part, to the
resurgent cocktail culture and flavour revolution in cocktails globally. "Adult
Indian consumers particularly those between 25 and 35 are drawn to American
whiskeys because of their authentic heritage, distinctive taste profile, and their
versatility in cocktails," says Christine A LoCascio, senior vice president,
international issues and trade of the Distilled Spirits Council of the United States
(DISCUS), who was recently in India on a promotional tour. In 2014, American
spirits exports to India (92% of which is whiskey) were pegged at $3.9 million; as
of October 2015, that figure had crossed $4.3 million. American whiskeys,
primarily Bourbon and Tennessee, represented the vast majority (89%) of the
2015 total to date. For the past two years, DISCUS has had Mumbai mixologist
Shatbhi Basu as American Whiskey Ambassador in India. She travels across the
country training bartenders and leaders in the hospitality industry about American
whiskey and how it works well in cocktails. "People are appreciating the intense
and fragrant flavour of American whiskey and even Indian women, who don't like
whisky traditionally too are surprising themselves when they taste our whiskies,"
Basu told ET Magazine.
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Did all the things a startup shouldn't do: Craftsvilla co-founder Manoj Gupta
"It's never easy to lay off people, our first two years were chaotic, we ate through
our funds, sold our home and did all the things a startup shouldn't do," says Manoj
Gupta, the cofounder of Craftsvilla. Founded in 2011 by Manoj and Monica Gupta,
Craftsvilla.com, an online marketplace for ethnic products is among the few Indian
startups to have remained afloat and scaled without raising funds in 2013 and
2014. Offering excessive discounts, seeing no repeat customers, acquiring sellers
with fake shops; burning Rs 50 lakhs in cash each month, eventually lead to
sacking 70 employees in October 2012, resulting in a change of strategy. The
startup had completely exhausted the Rs 10 crore early-stage and series-A round
of funding from Nexus Venture Partners and Lightspeed Ventures, which was
followed by the couple selling their home and cutting down their employees to a
10-member team. "We were giving double the amount in terms of salaries to
employees, we cut down to one person for finance, one for tech and so on," says
Gupta, "Basically retained the barest possible skeletal structure which we could
survive on." The focus changed from managing people and giving away consumer
discounts to gaining strong seller acquisitions, using technology to automate
systems for selling and customer care, automating inventory updates, tracking
numbers in bulk and even charging sellers for marketing. According to Gupta,
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focusing on increasing the checks and measures in place for sellers reduced the
chance of them creating shortcuts. The startup also focused on optimising SEO in
order to bring in more traffic, relying heavily upon social media marketing,
specifically through Facebook. "From burning Rs 50 lakhs a month to bringing it
down to a few lakhs, we eventually were generating profits of Rs 3 lakh a month in
2013 and 2014, which we either invested in marketing or fixed deposits," added
Gupta. According to the startup, their present customer acquisition strategy
ensures they do not incur more than Rs 100 for acquiring each consumer.
Craftsvilla presently takes a 20% commission on each transaction and has over
25,000 artisans and designers on board. For two years, venture capitalists showed
no interest in making investments in the startup, however Gupta claims there was
no major competition in sight either, which he considers to be a huge advantage in
ensuring the startup remained afloat. "We have one of the worst pitching stories,
for instance investors would ask us, 'What are you trying to create? The eBay of
India?'" said Gupta, "Ethnic clothes is not a sexy category, it's a weak pitch for
funding when there's an automatic association of our target group being aunties."
During 2013 and 2014, the startup claims to have seen a 6% month on month
growth. However in 2015, post a fresh round of funds, Rs 110 crores raised in
January, led by Sequoia Capital, the startup claims to have seen a 10% month on
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month growth and hired close to 200 people. Most recently, in November,
Craftsvilla raised Rs 221crore in a series-C funding round led by Sequoia India and
Lightspeed Venture Partners. According to the founders, Rs 61 crore will be set
aside for acquiring three startups that specialise in big data analytics,
personalisation and recommendation, one of which is based abroad.
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"We will skill fresh talent in rural areas and provide them with food, stay and
ownership of the bike on completion of three years with us. In the next year and
half, we plan on deploying 3,000 bikers to deliver from 90 city hubs to the suburbs
and smaller towns," said Rajiv Sharma, cofounder and managing director of
dPronto, a hyperlocal delivery service which was launched in September and
delivers for Flipkart, Snapdeal and Shopclues in the Delhi-NCR region. The former
Bharti Airtel executive is also the managing director at Empower Pragati, a private
social sector skills and training company backed by the National Skill Development
Council. The idea to start dPronto came from the huge demand for training
personnel for last-mile operations. "By July 2015 we had finished training 2,000
people for six job roles in the sector and plan on hiring from Empower for
expanding operations," Sharma said. Finding replacement is a greater challenge for
hyperlocal and ecommerce companies who are increasingly turning to training for
retention.
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Diem' last year to reach out to first-year students as well. Through this, students
can work with HUL on a live project and get a chance to be selected as asummer
intern under the prestigious Unilever Leaders Internship Programme (ULIP). The
internships are held at Unilever offices across the globe.
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as the leading brand in the vitamins and dietary supplements category.The brand
contributes more than 50% of Amway India's turnover," he said. Budhraja further
said, "We are confident that Farhan's association will provide a further fillip to the
Nutrilite brand in the country." Amway India plans to launch a big campaign in
early 2016 to leverage the association of Akhtar with Nutrilite.
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on the point of delivery. The companys newly developed technology back-end will
automatically identify the closest distributor or dealer or retailer, and the ecommerce company will be directed to pick up the product from that particular
outlet for delivery, backed by analytics on real-time feeds and insights, said one of
the two executives cited above, asking not to be named. Under this model, online
retailers will not have to invest in distribution centres and can reduce the time for
sourcing and delivery, the executive said. Currently, e-commerce companies either
store fast-moving products at their distribution centres or source them from the
nearest wholesalers. The Kolkata-based company, with interests in cigarettes,
packaged food, personal care, apparel, hotels and information technology, is
among the first movers in the fast-moving consumer goods (FMCG) space to
develop a separate distribution model for e-commerce.
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Company Law Board, with each side accusing the other of mismanagement and
financial impropriety. The genesis of the dispute between the children and nephew
of the late Ramchandra Gandhi lies in the memorandum of understanding (MoU)
signed in 1999 among family members. As per the agreement, Ramchandra's sons
Virendra (elder) and Rajesh, and his brother Lakshman's son Devanshu had an
equal share or one-third each of the total promoter stake in all Vadilal Group
companies, including the unlisted Vadilal Chemicals. The current promoter
shareholding in Vadilal Industries and Vadilal Enterprises, both listed, is 65.28%
and 51.49%, respectively. While Vadilal Enterprises manufactures ice-cream,
Vadilal Industries sells the product and owns the brand rights. Ramchandra's third
son Shailesh Gandhi had separated from the family business in the early 1990s but
owned territorial rights for the Vadilal brand in Maharashtra and south India.
Ranchodlal Vadilal Gandhi started the ice-cream business in pre-Independence
Ahmedabad in 1935. His sons Ramchandra Gandhi (father of Virendra, Rajesh and
Shailesh) and Lakshman Gandhi (father of Devanshu) joined the business
sometime in 1945. The MoU, now part of the petition filed by Virendra Gandhi in
the Company Law Board in Mumbai, said: "The joint business will be equally
owned and none of the parties can directly or indirectly increase stake in any of
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invested more than Rs 800 crore in the country. "The plant will provide direct
employment to more than 400 people," he said. He added that currently, the
company provides income-generating opportunity to over 550,000 active
distributors.
Broiler chicken prices jump close to 40% in past 10 days due to Christmas,
New Year demand
Broiler chicken prices have jumped by close to 40% in the past 10 days, fuelled by
higher demand due to Christmas and the upcoming New Year festivities. The
increase in demand has been triggered by a fall in availability due to the cold wave
in north India and a cut in production by poultry farmers who had been staring at
losses for about six months now. The average farm gate chicken price has
increased from Rs 65/kg on December 18 to Rs 90/kg on December 28, a rise of
close to 40%. Chicken sales in Mumbai have also increased from about 5-6 lakh
birds per day to about 8-10 lakh birds per day. Typically, sales of chicken go up by
about 25% during winter. PG Pedgaonkar, deputy general manager of chicken
processor Venky's, said, "Chicken demand normally rises by about 30% to 35% in
metros during Christmas and New Year. This is a big-city phenomenon and it
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doesn't have much impact on rural demand. This year, however, prices have shot
up suddenly as production dipped considerably." Poultry farmers across the
country had been facing difficulties for the past six months due to sudden spikes in
raw material prices and lack of demand for chicken. "The lowest farm gate prices
had dipped to Rs 45/kg forcing farmers to incur losses of Rs 25/kg. Many farmers
cut production while some shut down their units," said Pedgaonkar.
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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.
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