Wednesday, 2 January 2013

Vkreate Group B3 Source Business line 2/1/13


Headline: Margarine brands grow popular as consumers ride the health wave, Dec 20, 2012
With lifestyle diseases on the rise and increasing health consciousness consumers are willing to replace butter with margarine. Globally, margarine is supposed to be more popular than butter. It may be just a matter of time before Indian consumers are willing to bite the ‘health’ bait and shift from butter to margarine. The margarine segment in India is estimated at Rs 150 crore, while the size of the butter category is several times bigger at almost Rs 1,200 crore.
Margarine is made out of vegetable fat and is supposed to be cheaper than butter; however margarine is sold at a premium as it is positioned as being lighter than butter, low on calories with no trans-fat and fortified with Vitamin A, D and E. 
With a 55 per cent volume share in the margarine category Zydus (nutralite) is the market leader followed by Ruchi Soya Industries (Nutrela). Amul and Britannia have also entered the segment but are yet to garner a significant market share.

Headline: New Year to see 50 new car models, Dec 31, 2012
A conservative estimate puts the number of new launches and upgrades to over 50 during 2013. These include some cosmetic changes, upgrades — exterior and engine — and more than a dozen new launches and possibly segment definers such as Ecosport.
If all the launches happen as planned, we are in for more than one launch a week during 2013.
Tata Motors is all set to roll out their Safari Storme, a totally redone sports utility vehicle, pitting it against M&M’s Scorpio, Bolero, XUV 500 and the game changer, Renault Duster.
While General Motors will set the tempo with the roll out Sail Sedan and their multi-purpose vehicle Enjoy pitting the latter against Maruti Suzuki’s runaway hit Ertiga, its American rival will unveil Ecosport, also seen as a segment breaker.
While GM will launch Enjoy, Ashok Leyland Ltd plans to roll out MPV Stile, a vehicle built on the lines of Nissan’s SUV Evalia. Ford is set to roll out Ecosport, Force Motors plans to roll out at least two vehicles from its stable — Gurkha Trax and Force MPV — the latter in the Toyota Innova and Tata Aria league.
In the small car segment, Tata Motors plans to bring out a diesel version of its small car Nano. Maruti is set to upgrade its A-Star, Fiat is set to bring a new Punto, and Hyundai gearing up to come out with an all new I-10, which includes a car with a diesel heart. Nissan is also gearing up for Duster type UV.
In the sedan segment, Mahindra & Mahindra will come out with the new sub four-meter Verito before March, to take advantage of the tax structure helping them bring down the cost. Tata Motors is expected to launch a ‘boot-cut’ version of Tata Manza, seeking to replicate the success it had with Indigo CS.
Honda will come out with it’s much talked about Amaze powered by petrol and diesel engines and is also working on bringing out a diesel-powered upgraded popular City sedan.

Headline: Rural consumption, new product launches pumped up FMCG sector, Dec 27, 2012
FMCG sector:
·         The FMCG sector witnessed a growth of 15-20 percent in 2012.
·         ITC, Godrej Consumers and Hindustan Unilever were the star performers.
·         Many companies either increased prices by 4-5 per cent or reduced the gram mage of the products to protect their margins.


PACKAGED FOOD ITEMS:

·         Packaged food that grew at 15-20 per cent in 2011 came down to 0-2 per cent this year.
·         Many consumers cut down on packaged food items such as corn flakes, cereals, noodles, soups and chocolates. They bought cheaper or value-for-money products as slowdown continued to pinch their pockets.

RURAL CONSUMPTION:

·          Consumption in the rural economy picked up at a faster pace.
·         Consumers were seen upgrading themselves to premium categories.
·         Both urban and rural markets witnessed a number of new brands in the personal care categories.

NEW LAUNCHES:

·         Marico entered the breakfast category by launching Saffola oats in various flavours and launched new products in the hair care and skin care segments. The acquisition of Paras Healthcare helped extend into the male personal care business.
·         Godrej - crème-based hair colour and extension of Cinthol into categories such as face wash and moisturisers.

Headline: Bisleri drops making of ‘Mountain’ water variant, Dec 24, 2012
Packaged water major Bisleri International has decided to remove ‘Mountain’ water variant from its portfolio. The company’s roster will now have regular Bisleri and the relatively new natural mineral water brand of Vedica.
Reasons for discontinuing Bisleri Mountain water from the portfolio:
·         Confusion in the minds of the consumers as it looked similar to the original Bisleri.
·          It had limited volumes and distribution
·         Himalaya is a generic name and when Bisleri advertised Bisleri Mountain as being ‘sourced from the Himalayas’, the company got into a legal case with the Himalayan brand from Tata Global Beverages.
Bisleri Mountain was created initially for the export market nearly five years ago. It was launched in India in 2008, and pitted against the Himalayan brand in the natural mineral water category at a premium. Subsequently, Bisleri Mountain water was priced on par with the regular Bisleri and was targeted at ‘health conscious’ consumers.

Headline: Emami Paper puts off mill expansion project in Odisha, Dec 31, 2012
Emami Paper Mills Ltd has shelved the proposed Rs 1,600-crore paper mill expansion project at Balasore in Odisha.
The project could not take off due to failure of the associated social forestry plantations plan leading to uncertainty on availability of feedstock.
Emami Paper Mills is an Rs 500-crore outfit of Kolkata-based Emami Group.
The proposed wood-based pulp and paper mill project, for producing copier paper, could have scaled up the company’s production capacity to 3 lakh tonnes per annum from the current 1.5 lakh tonnes per annum.
Land in Odisha is highly fragmented. So it becomes difficult to achieve the scale of production required to kick-start the project.
A dip in demand in the copier paper segment is another reason for the shelving of the project. There has been a drop in growth rate and demand for copier paper globally posts the onslaught of laptops etc, so it has become difficult to market the product.


Headline: Reliance Digital to increase store count to 500, Jan 1, 2013
·         Reliance Digital, the electronics chain run by Mukesh Ambani-led Reliance Group, is on a massive expansion drive.
·         It plans to increase store count from the current 101 to 500.
·         The company is looking to report a revenue of Rs 40,000 crore in the next 3-4 years.
·         Vijay Nair, Assistant Vice-President of Reliance Retail, noted the company has plans to increase its store count to 500 by March 2014, with a clear emphasis on Tier 2 and Tier 3 cities.
·         The company is also looking to have a warehouse in almost every State, from its current 21 warehouses.
·         The company will roll out new products like tablets by this month-end to hook youngsters to the Web.

Headline: Over half the malls in Delhi-NCR vacant, says Assocham, Dec 30, 2012

·         Over half of the total number of malls in the Delhi-NCR region are vacant due to reasons like economic slowdown, poor designing and lack of robust revenue generation model, a survey by Assocham has said.
·         “The total rate of vacancy in malls in Delhi-NCR is 55 per cent, while in Mumbai it is 52 per cent followed by Ahmedabad (51 per cent), Chennai (50 per cent), Hyderabad (48 per cent), Bangalore (45 per cent),” the chamber said.
·         It said that construction of several malls have significantly been delayed and withdrawn due to lukewarm response from retailers.
·         “Vacancy levels are due to poor location, poor design and poor parking facilities while some are operating at 60 per cent occupancy,” it said.
·         It said the industry is also facing problems like multiple taxes, lack of clarity in policies and shortage of experts in areas such as supply chain and store management.
·         “Biggest shopping mall can feel like a pretty lonely place, majority of retailers said that they are holding back on new store openings and focusing on existing stores,” it added.
·         The sharpest decline in mall rental values are also recorded high in Delhi-NCR followed by Mumbai, Ahmedabad, Chennai, Hyderabad, Bangalore, Kolkata and Pune, it said.
·         Most of the shop owners, who participated in the survey, said that increasing rents will not work because at the end of the day it has to be affordable for retailers to do business.
·         There are about 1,200 shopping malls in India.

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