Thursday, 7 February 2013

League of Shadows-Group A3- Source- Business Line


Tata Global Beverages tests waters in functional drink segment
Divya Gupta
Tata Global Beverages Ltd (TGBL) is investing heavily in new-age drinks such as functional and flavoured water. Functional water contains additives that provide extra nutritional value. These are expected to become alternatives for carbonated drinks in the future.
The company, which entered the Indian bottled market in 2007 with Himalayan brand, currently earns about 5 per cent of its total sales from the water business. This is expected to go up to 15 per cent in another 3-4 years, said its Managing Director Harish Bhat.
The growth, Bhat added, is coming as carbonated or soda-based drinks are losing their charm to fruit/vegetable juice and bottled water that contains flavours such as green apple, cranberry, citrus and watermelon, among others.
The company has recently launched ‘water plus’, a nutrient water and ‘gluco plus’ glucose-based flavoured drink in Tamil Nadu and parts of Andhra Pradesh. It will cover the entire Indian market in another 3-4 years.
According to a report by market research firm Euromonitor International, carbonated drinks are losing the appeal to functional drinks, which are seen as healthier alternatives. Even soft drink giants Coca-Cola and PepsiCo have recognized this trend and are strengthening their product offers in fruit/vegetable juice.
Meanwhile, such drinks are gaining popularity in urban areas, where consumers, mainly young working professionals, are becoming increasingly health conscious. Besides, modern retail is also driving the growth as manufacturers showcase their products to capture new consumers and make them aware of various options.

Nestle India picks up 26% stake in Indocon Agro
Nikhil Narayanan                                                                                                     http://www.thehindubusinessline.com/industry-and-economy/marketing/nestle-india-picks-up-26-stake-in-indocon-agro/article4378610.ece
•Nestle India Ltd has acquired 26 per cent stake in a little known dairy company Indocon Agro and Allied Activities Pvt Ltd., which is engaged in milk collection business in western India.
•Nestle India currently has its own manufacturing facilities at Moga in Punjab and Samalkha in Haryana, which largely service the northern market.
•It has contract supply arrangements for the West and South markets with Baramati-based Schreiber Dynamix Dairies Ltd and the Hyderabad-based Heritage Foods for its curd and UHT (ultra-high temperature) milk. Besides, it sources milk powder from domestic players such as Sterling Agro and VRS Foods.
•One possibility could be that this company could be linked to Schreiber Dynamix itself. There has been talk, of late, about Nestle tying up with Schreiber Dynamix to set up a milk powder plant at Baramati.
•A Nestle India spokesperson said the Swiss major’s deal with Indocon was of ‘strategic and long-term’ nature.

TV digitisation: Subscription revenue on the rise
Ranjani Raguraman
•With increase in television digitization the subscription revenue has been on the rise claim broadcasters.
•Though larger viewership should lead to higher advertisement revenue that should help in cutting down the channel subscription rates, but broadcasters and DTH operators ruled out the possibility of the same.
•Shashi Arora, CEO, DTH/Media, Bharti Airtel does not forsee any price revision till broadcasters initiate price revision.
•Nearly 12.5 million cable subscribers switched from analogue to digital mode.
•A second phase of digitization is expected in 38 cities (with a million population in each) by 31 March 2013, thereby bringing a population of about 377million (urban population) under digitization net.
•DTH providers expect the total digital viewership to touch 34 million after March.
•Feedback from MSOs(Multi Service Operators) and broadcasters suggests that the local cable operators never disclosed the existence of four-fifth of subscribers.
•Broadcasters expect an overall 10-12 per cent growth in subscription revenue with cable TV digitization.
•Revenue from advertisements is expected to see single digit growth,claims Ashok Venkatramani, CEO, Television, ABP Group.
•According to current revenue sharing model, broadcasters get 30-35 per of rentals paid by a user.


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