This story first appeared in DNA Money edition on Friday, April 19, 2013.
Publicis Groupe, the world’s third largest communications firm, has acquired Bangalore-based technology services provider Neev as part of its plan to beef up digital presence in India.
Financial details were not disclosed.
Publicis plans to align Neev with Razorfish, a group firm, which is one of the largest interactive marketing and technology companies globally.
Kanika Mathur (pictured), managing director, Razorfish and Digitas India, told dna, “Collaboration of Razorfish’s interactive marketing prowess with Neev’s cutting-edge technology capabilities would play a determinative role in our digital leadership positioning here. With this deal in place, we will now be able to offer India, a state-of-the-art technology that is available globally.”
Neev specialises in eCommerce, SaaS (Software as a Service) and cloud applications across web, social media and mobile. The acquisition marks Razorfish’s launch in India, wherein Neev will help strengthen and scale up Razorfish’s expertise.
“It will be aligned with Razorfish and will operate as Razorfish Neev,” said Mathur without sharing Neev’s billing and market share details since its inception in 2005.
About 220 out of the 250 specialists employed by Neev are pure-play technologists with experience / expertise in leveraging cloud, mobile technologies and promoting innovation.
Saurabh Chandra, CEO, Neev, said the company has a track record for cutting edge product innovation and market firsts in areas of video streaming, e-commerce, data visualisation, including patents in cloud and mobility.
“Working seamlessly with the clients’ teams, we serve a growing list of prominent brands and technology companies, mainly in India and the US. The company has increased revenues on average 45% since 2007,” said Chandra.
While the technology centre and hub of Neev will continue to be in Bangalore, the new entity will have a national presence with offices in Delhi, Mumbai and Pune.
The company plans to increase team strength to 350 by the end of this year and double it in a few years.
Sunday 21 April 2013
Worldoo locks brands, kids in digital space
This story first appeared in DNA Money edition on Friday, Apr 19, 2013.
Brands like ZeeQ, Cartoon Network and Amar Chitra Katha that focus on kids aged 6-12 years now have a new online destination to engage in a novel way with their target audiences.
Worldoo (www.worldoo.com), an ad-free online hangout, offers edutainment, socialising and networking opportunities for kids. It also lets brands to reach out to them.
Launched by Focus, an advertising and digital media agency, Worldoo aspires to help children-focused brands make a splash in the digital space.
Monish Ghatalia, MD of Focus, said Worldoo can take brands to a large target audience at one go and help sustain such engagement. “Worldoo is much more than just impressions and clicks.”
Live, express and play — that’s what Worldoo encourages kids to do. Popular content — books, comics, movies and games — is a given. Worldoo also provides engaging experiences for kids by way of activities and interactions with other kids and brands.
From desktops and laptops, Worldoo plans to expand to tablets and mobile devices shortly.
And brands seem to welcome this. Aparna Bhosle, head of programming, ZeeQ, said the explosion in digital equipment has transformed broadcasting. But since kids also access alternatives like the digital medium, it becomes imperative for broadcasters to announce their existence via digital initiatives as well.
This is where partnerships with online destinations like Worldoo acquire significance. For example, target audiences can now sample ZeeQ content via Worldoo.
“Technology is central to how kids consume content these days. Multi-platform systems encompassing TV, internet and mobile phone allow greater opportunities to watch favourite shows at any time,” said Bhosle.
Besides ZeeQ, a host of brands, including gamebox, zapak, JeffCorwinConnect, Warner Brothers, Shemaroo, Sony Pictures, Reliance Big Flix, Crossword, Landmark, Dreamland, Champak and Singapore’s tourist destination Sentosa, have already made Worldoo their partner.
According to Juhi Ravindranath, Turner International India’s vice-president of advertising sales in South Asia, Worldoo is “a unique idea” that “promises to create the right brand experience for consumers”.
Brands like ZeeQ, Cartoon Network and Amar Chitra Katha that focus on kids aged 6-12 years now have a new online destination to engage in a novel way with their target audiences.
Worldoo (www.worldoo.com), an ad-free online hangout, offers edutainment, socialising and networking opportunities for kids. It also lets brands to reach out to them.
Launched by Focus, an advertising and digital media agency, Worldoo aspires to help children-focused brands make a splash in the digital space.
Monish Ghatalia, MD of Focus, said Worldoo can take brands to a large target audience at one go and help sustain such engagement. “Worldoo is much more than just impressions and clicks.”
Live, express and play — that’s what Worldoo encourages kids to do. Popular content — books, comics, movies and games — is a given. Worldoo also provides engaging experiences for kids by way of activities and interactions with other kids and brands.
From desktops and laptops, Worldoo plans to expand to tablets and mobile devices shortly.
And brands seem to welcome this. Aparna Bhosle, head of programming, ZeeQ, said the explosion in digital equipment has transformed broadcasting. But since kids also access alternatives like the digital medium, it becomes imperative for broadcasters to announce their existence via digital initiatives as well.
This is where partnerships with online destinations like Worldoo acquire significance. For example, target audiences can now sample ZeeQ content via Worldoo.
“Technology is central to how kids consume content these days. Multi-platform systems encompassing TV, internet and mobile phone allow greater opportunities to watch favourite shows at any time,” said Bhosle.
Besides ZeeQ, a host of brands, including gamebox, zapak, JeffCorwinConnect, Warner Brothers, Shemaroo, Sony Pictures, Reliance Big Flix, Crossword, Landmark, Dreamland, Champak and Singapore’s tourist destination Sentosa, have already made Worldoo their partner.
According to Juhi Ravindranath, Turner International India’s vice-president of advertising sales in South Asia, Worldoo is “a unique idea” that “promises to create the right brand experience for consumers”.
Cement prices crack as fiscal starts
An edited version of this story first appeared in DNA Money edition on Thursday, April 18, 2013,
If March 2013 was very unlike the business month it generally tends to be for the Indian cement industry, April isn't looking any better either.
Lack of demand, delay in government spend pick-up and weak rural demand have lead to correction in cement prices across some key markets in the country. Feedback from cement dealers indicates continued weakness in demand for the April month leading to price correction in most markets to the tune of 3-6%.
According to JP Morgan analysts, the sharpest decline has been witnessed in Western India -- where demand has also been impacted by the drought situation -- and in Southern India driven by sharply lower prices in the key state of Andhra Pradesh (AP).
Confirming the price correction, Pinakin Parekh and Neha Manpuria, research analysts, J P Morgan India Pvt Ltd, said in a note on Tuesday that cement supply discipline is under pressure as demand remains weak. "We are surprised by the quantum of price correction seen in AP, where prices are down below Rs 200 per bag of 50 kg, as some of the new capacities are selling aggressively. The other interesting feedback we have received is that of higher shipments from AP into neighboring states and this highlights AP’s overhang on Southern and Central India. The price correction has been equally sharp in Western India, with prices down sharply in both Gujarat and Maharashtra. Every single market has seen cement price correction in April," the analysts said.
Industry players are of the opinion that government spending should re-start at some point however, the situation will remain weak till then. At the recently conclude ACC Ltd annual general meeting (AGM), Kuldip Kaura, MD & CEO of the company told shareholders that cement growth is not doing good and is less than expected. "There is normally growth in election year but we are yet to see that trend," he'd said.
Echoing the sentiments, JPM analysts said that election led spending should start at some point over the next few months and government spending should also recover from the current very depressed levels. The analysts however expressed concerns over possibilities of rural demand deteriorating thereby taking away some of the government led incremental demand. "The other issue is the drop in cement prices in the interim. Cost trends continue to inch up especially in energy (diesel) and with lower aggregate demand, there is less supply discipline and hence more price competition," the analysts said in the note.
As for the correction trend in cement pricing is concerned, a dealer check in various regions of India by Anand Rathi Shares and Stock Brokers Ltd (ARSSBL) shows that the western region is expected to see further cuts in cement prices.
Anand Rathi research analysts Jaspreet Singh Arora and Manish Valecha said in a note on Wednesday that prices dipped by Rs 20 in Pune, with retail/wholesale prices at around Rs 275/Rs 245 respectively. "With no improvement in demand foreseen and water-shortage issues escalating in summer, further price cuts may be seen in the current quarter. Nagpur has seen no uptick in demand in April, with retail/wholesale prices hovering around Rs 290 / Rs 270. Mumbai retail prices have been static at Rs 310 even as demand is flat month-on-month," said the analysts.
Prices across various pockets in the eastern region either remained flat -- like in Kolkata -- or down Rs 10 in case of Bhubaneshwar. Though realty sector remained strong, slowdown in infrastructure projects led to poor demand. "Retail/wholesale prices in Bhubaneshwar are Rs 340 / Rs 290. Patna has seen prices dropping by Rs 20 in April due to slack demand -- and current retail/wholesale prices are around Rs 305 / Rs 290," the analysts added.
Cement prices in south India were under pressure mainly due to increased influx of material from AP. Despite good demand, Bangalore saw a correction by Rs 15 per bag of 50 kg and the current retail/wholesale prices stood at Rs 310 / Rs 275. Hyderabad (retail price Rs 200) and Visakhapatnam (retail price Rs 210) continued to suffer from a capacity glut and an increase in supply from JPA and JSW. Retail/wholesale prices in Chennai are around Rs 305 / Rs 265 even as demand continues weak.
A northward trend (increase by Rs 10) was witnessed in cement prices in north India where current retail/wholesale rates are around Rs 260/Rs215 respectively. However, prices remained flat in markets like Delhi and Gurgaon despite attempts by manufacturers to raise prices.
If March 2013 was very unlike the business month it generally tends to be for the Indian cement industry, April isn't looking any better either.
Lack of demand, delay in government spend pick-up and weak rural demand have lead to correction in cement prices across some key markets in the country. Feedback from cement dealers indicates continued weakness in demand for the April month leading to price correction in most markets to the tune of 3-6%.
According to JP Morgan analysts, the sharpest decline has been witnessed in Western India -- where demand has also been impacted by the drought situation -- and in Southern India driven by sharply lower prices in the key state of Andhra Pradesh (AP).
Confirming the price correction, Pinakin Parekh and Neha Manpuria, research analysts, J P Morgan India Pvt Ltd, said in a note on Tuesday that cement supply discipline is under pressure as demand remains weak. "We are surprised by the quantum of price correction seen in AP, where prices are down below Rs 200 per bag of 50 kg, as some of the new capacities are selling aggressively. The other interesting feedback we have received is that of higher shipments from AP into neighboring states and this highlights AP’s overhang on Southern and Central India. The price correction has been equally sharp in Western India, with prices down sharply in both Gujarat and Maharashtra. Every single market has seen cement price correction in April," the analysts said.
Industry players are of the opinion that government spending should re-start at some point however, the situation will remain weak till then. At the recently conclude ACC Ltd annual general meeting (AGM), Kuldip Kaura, MD & CEO of the company told shareholders that cement growth is not doing good and is less than expected. "There is normally growth in election year but we are yet to see that trend," he'd said.
Echoing the sentiments, JPM analysts said that election led spending should start at some point over the next few months and government spending should also recover from the current very depressed levels. The analysts however expressed concerns over possibilities of rural demand deteriorating thereby taking away some of the government led incremental demand. "The other issue is the drop in cement prices in the interim. Cost trends continue to inch up especially in energy (diesel) and with lower aggregate demand, there is less supply discipline and hence more price competition," the analysts said in the note.
As for the correction trend in cement pricing is concerned, a dealer check in various regions of India by Anand Rathi Shares and Stock Brokers Ltd (ARSSBL) shows that the western region is expected to see further cuts in cement prices.
Anand Rathi research analysts Jaspreet Singh Arora and Manish Valecha said in a note on Wednesday that prices dipped by Rs 20 in Pune, with retail/wholesale prices at around Rs 275/Rs 245 respectively. "With no improvement in demand foreseen and water-shortage issues escalating in summer, further price cuts may be seen in the current quarter. Nagpur has seen no uptick in demand in April, with retail/wholesale prices hovering around Rs 290 / Rs 270. Mumbai retail prices have been static at Rs 310 even as demand is flat month-on-month," said the analysts.
Prices across various pockets in the eastern region either remained flat -- like in Kolkata -- or down Rs 10 in case of Bhubaneshwar. Though realty sector remained strong, slowdown in infrastructure projects led to poor demand. "Retail/wholesale prices in Bhubaneshwar are Rs 340 / Rs 290. Patna has seen prices dropping by Rs 20 in April due to slack demand -- and current retail/wholesale prices are around Rs 305 / Rs 290," the analysts added.
Cement prices in south India were under pressure mainly due to increased influx of material from AP. Despite good demand, Bangalore saw a correction by Rs 15 per bag of 50 kg and the current retail/wholesale prices stood at Rs 310 / Rs 275. Hyderabad (retail price Rs 200) and Visakhapatnam (retail price Rs 210) continued to suffer from a capacity glut and an increase in supply from JPA and JSW. Retail/wholesale prices in Chennai are around Rs 305 / Rs 265 even as demand continues weak.
A northward trend (increase by Rs 10) was witnessed in cement prices in north India where current retail/wholesale rates are around Rs 260/Rs215 respectively. However, prices remained flat in markets like Delhi and Gurgaon despite attempts by manufacturers to raise prices.
Tuesday 16 April 2013
JK Lakshmi's Chhattisgarh project faces 3-mth delay
This story first appeared in DNA Money edition on Tuesday, April 16, 2013.
A delay of 2-3 months appears inevitable in the launch of JK Lakshmi Cement’s (JKLC) greenfield project at Durg, Chhattisgarh, following violent disruption of project work by irate local villagers seeking employment for all of them earlier this month.
It is learnt only around five locals lost their land due to the project getting located at Durg. Now, the plant may be commissioned by the first quarter of next fiscal, said a Karvy Stock Broking report written after a meeting with top JKLC officials.
The Durg project is expected to expand JKLC’s clinker capacity by 1.8 million metric tonne (mmt) and grinding capacity by 2.7 mmt. JKLC officials could not be reached for a comment.
The Karvy report said JKLC management expects damage caused to the new plant to be around Rs 150 crore. A precise figure will be arrived at over the next few days when equipment manufacturers and surveyors ascertain the actual damage.
There is low probability that such protests may recur, the management said in an analyst guidance.
Rajesh Kumar Ravi, research analyst at Karvy, said such agitations are mostly politically motivated and are part of business risks associated with large greenfield capital expenditure (capex).
“We do not expect any negative impact in our sales volume assumption for FY15E as we have already modelled this capacity to be effective in the second quarter of fiscal 2015 (2QFY15). With the financial damage covered under insurance, the expected loss of up to Rs 150 crore should not impact its near-term cash flow,” said Ravi.
A Religare Institutional Research note last week said JKLC had estimated an initial loss of Rs 250-300 crore when it first filed the first information report with the police. But this was revised down to Rs 120-150 crore on further examination. The insurance company will take around ten days to determine the actual loss.
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A delay of 2-3 months appears inevitable in the launch of JK Lakshmi Cement’s (JKLC) greenfield project at Durg, Chhattisgarh, following violent disruption of project work by irate local villagers seeking employment for all of them earlier this month.
It is learnt only around five locals lost their land due to the project getting located at Durg. Now, the plant may be commissioned by the first quarter of next fiscal, said a Karvy Stock Broking report written after a meeting with top JKLC officials.
The Durg project is expected to expand JKLC’s clinker capacity by 1.8 million metric tonne (mmt) and grinding capacity by 2.7 mmt. JKLC officials could not be reached for a comment.
The Karvy report said JKLC management expects damage caused to the new plant to be around Rs 150 crore. A precise figure will be arrived at over the next few days when equipment manufacturers and surveyors ascertain the actual damage.
There is low probability that such protests may recur, the management said in an analyst guidance.
Rajesh Kumar Ravi, research analyst at Karvy, said such agitations are mostly politically motivated and are part of business risks associated with large greenfield capital expenditure (capex).
“We do not expect any negative impact in our sales volume assumption for FY15E as we have already modelled this capacity to be effective in the second quarter of fiscal 2015 (2QFY15). With the financial damage covered under insurance, the expected loss of up to Rs 150 crore should not impact its near-term cash flow,” said Ravi.
A Religare Institutional Research note last week said JKLC had estimated an initial loss of Rs 250-300 crore when it first filed the first information report with the police. But this was revised down to Rs 120-150 crore on further examination. The insurance company will take around ten days to determine the actual loss.
Follow Ashish K Tiwari on twitter @ashishktiwari
Broadcasters threaten to snap signals to MSOs
This story first appeared in DNA Money edition on April 5, 2013.
Cable television subscribers may bear the brunt of delays in finalising commercial agreements for Phase II digitisation between broadcasters / aggregators and the multi-system operators (MSOs).
With not much progress happening, some broadcasters may switch off the signals to some MSOs on account of contention over fee amount and piled up dues.
MSOs are large cable operators that distribute channels to local cable operators.
Atul Pande, CEO-sports business, Zee, said that the broadcaster is having issues with Hathway Cable and Datacom Ltd, which is not only refusing to pay them the right fee, but has also not made payments for the last 6-7 months.
"We have no option but to switch off the signal to Hathway or black the screen. Unfortunately, this will lead to a lot of consumer discomfort, but there is no other alternative," said Pande.
As a result, football fans may miss the UEFA Champions League on Hathway network as it faces a blackout of Ten Sports channel, which broadcasts the event.
Despite repeated attempts, Hathway officials did not offer a comment.
Pritesh Mistry, a football analyst, said, "The sporting event has a huge follower base in India and not being able to watch the matches will be very unfortunate thing to happen for the fans."
While commercial agreements between broadcasters and MSOs for Phase I digitisation are being implemented, doing the same for Phase II, which involves digitisation in 38 cities, is turning out to be a huge challenge.
Gaurav Gandhi, chief operating officer, IndiaCast Media Distribution Pvt Ltd, said the delay in commercial deal making for Phase II digitisation is not because of the broadcasters or aggregators.
"There are a few MSOs who are either unwilling to come to the discussion table or are trying their best to let the status quo continue. This is impacting the implementation of Phase II digitisation," he said.
Industry sources said there have been instances of some MSOs trying to use strong arm tactics to pressurise broadcasters in doing deals on lines of the analog regime deals -- both on subscription and carriage.
The MSOs fraternity, however, feels there is no serious disconnect between broadcasters and MSOs over negotiating the deals.
"This is a time for both parties to work together to create a good ecosystem as opposed to behaving like business partners at war. This is first time wherein there is flexibility in terms of options for the customer to choose from. There is real viewership and price to be discovered," said M G Azhar, COO, DEN Networks.
Follow Ashish K Tiwari on twitter@ashishktiwari
Cable television subscribers may bear the brunt of delays in finalising commercial agreements for Phase II digitisation between broadcasters / aggregators and the multi-system operators (MSOs).
With not much progress happening, some broadcasters may switch off the signals to some MSOs on account of contention over fee amount and piled up dues.
MSOs are large cable operators that distribute channels to local cable operators.
Atul Pande, CEO-sports business, Zee, said that the broadcaster is having issues with Hathway Cable and Datacom Ltd, which is not only refusing to pay them the right fee, but has also not made payments for the last 6-7 months.
"We have no option but to switch off the signal to Hathway or black the screen. Unfortunately, this will lead to a lot of consumer discomfort, but there is no other alternative," said Pande.
As a result, football fans may miss the UEFA Champions League on Hathway network as it faces a blackout of Ten Sports channel, which broadcasts the event.
Despite repeated attempts, Hathway officials did not offer a comment.
Pritesh Mistry, a football analyst, said, "The sporting event has a huge follower base in India and not being able to watch the matches will be very unfortunate thing to happen for the fans."
While commercial agreements between broadcasters and MSOs for Phase I digitisation are being implemented, doing the same for Phase II, which involves digitisation in 38 cities, is turning out to be a huge challenge.
Gaurav Gandhi, chief operating officer, IndiaCast Media Distribution Pvt Ltd, said the delay in commercial deal making for Phase II digitisation is not because of the broadcasters or aggregators.
"There are a few MSOs who are either unwilling to come to the discussion table or are trying their best to let the status quo continue. This is impacting the implementation of Phase II digitisation," he said.
Industry sources said there have been instances of some MSOs trying to use strong arm tactics to pressurise broadcasters in doing deals on lines of the analog regime deals -- both on subscription and carriage.
The MSOs fraternity, however, feels there is no serious disconnect between broadcasters and MSOs over negotiating the deals.
"This is a time for both parties to work together to create a good ecosystem as opposed to behaving like business partners at war. This is first time wherein there is flexibility in terms of options for the customer to choose from. There is real viewership and price to be discovered," said M G Azhar, COO, DEN Networks.
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Monday 15 April 2013
Maruti Suzuki in talks with RPG Life Sciences to acquire 3.5 acre in Navi Mumbai
Auto major Maruti Suzuki India is in advanced stage of negotiations to acquire leasehold rights of a part of land parcel held by RPG Life Sciences in Navi Mumbai. The auto company said it has entered into a Memorandum of Understanding (MoU) with RPG Life Sciences Ltd through Deed of Assignment (DoA) in respect of land admeasuring 14,148.90 sq mtr (3.5 acre) out of total land admeasuring 48,632 sq mtr (12 acre) - that's 30% of the total land parcel.
When contacted, RPG Group officials did not share further details on the valuations pertaining to the land transaction or for that matter by when do they intend to close the deal. "Maruti Suzuki is currently in the due-diligence stage and any further information can only be disclosed once the deal has been concluded," said the company official.
The land parcel in discussion is situated at Kopar Khairane in the Trans-Thane Creek (TTC) Industrial Area on the Thane-Belapur Road wherein RPG Life Sciences runs a small facility.
Commenting on the possible valuation of this transaction, industry experts said that since the land parcel is largely for commercial use being in the MIDC area, the deal size may not be very huge. Assuming a floor space index (FSI) of 1:1.75 and FSI cost of Rs 600 per square feet (psf) the cost per acre would come around Rs 50 lakh. Based on this back of the envelope calculations the overall deal size would be around Rs 1.75 crore.
"A lot also depends on the marketability and residual tenure of the lease period among other factors that play a key role in the pricing part," said Pankaj Kapoor, founder and managing director, Liases Foras Real Estate Rating & Research Pvt Ltd.
Follow Ashish K Tiwari on twitter @ashishktiwari
Follow Ashish K Tiwari on twitter @ashishktiwari
Sunday 14 April 2013
Buying hotels to demolish and sell as part of real estate play
An interesting observation was made about property appreciation in
relation to hotel assets, at the recently concluded Hotel Investment
Conference South Asia (HICSA) in Mumbai.
Leading hotelier Arun Saraf, MD, Juniper Hotels and MD, Asian Hotels East Ltd (a BSE listed company), said he is considering buying hotels not to run them as hotels because the real estate value is significantly higher than the built hotel. "It makes a lot of sense to demolish the hotel after a particular period and sell it as a land parcel instead as part of your real estate play," he said.
Saraf's current hotel development pipeline comprises nine upscale and mid-market hotels in various cities such as Raipur, Hampi, Lucknow, Sarnath, Guwahati, Ahmedabad, New Delhi, Jaipur, and Thiruvananthapuram. These projects are being developed by two of his companies viz. Juniper Hotels Pvt Ltd and Chartered Hotels Pvt Ltd.
Asset owners are of the opinion that that property appreciation has got no meaning in hotel industry because when the asset owner wants to sell the hotel, it will never be bought on the land or replacement value. "The kind of business being done by the hotel decides its selling price in the market," added Atul Chordia, CMD, Panchshil Realty.
Industry players were also of the view that if the buyer is a pure institutional ownership company, the company is very likely t see some asset reallocation within portfolio in the long term. "And if the allocation gives the company a higher value than what a public or private market offers then it certainly is time to sell the reallocated asset," stressed Ashish Jakhanwala, managing director and CEO, Samhi Hotels Pvt Ltd.
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Leading hotelier Arun Saraf, MD, Juniper Hotels and MD, Asian Hotels East Ltd (a BSE listed company), said he is considering buying hotels not to run them as hotels because the real estate value is significantly higher than the built hotel. "It makes a lot of sense to demolish the hotel after a particular period and sell it as a land parcel instead as part of your real estate play," he said.
Saraf's current hotel development pipeline comprises nine upscale and mid-market hotels in various cities such as Raipur, Hampi, Lucknow, Sarnath, Guwahati, Ahmedabad, New Delhi, Jaipur, and Thiruvananthapuram. These projects are being developed by two of his companies viz. Juniper Hotels Pvt Ltd and Chartered Hotels Pvt Ltd.
Asset owners are of the opinion that that property appreciation has got no meaning in hotel industry because when the asset owner wants to sell the hotel, it will never be bought on the land or replacement value. "The kind of business being done by the hotel decides its selling price in the market," added Atul Chordia, CMD, Panchshil Realty.
Industry players were also of the view that if the buyer is a pure institutional ownership company, the company is very likely t see some asset reallocation within portfolio in the long term. "And if the allocation gives the company a higher value than what a public or private market offers then it certainly is time to sell the reallocated asset," stressed Ashish Jakhanwala, managing director and CEO, Samhi Hotels Pvt Ltd.
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Apeejay Surrendra Park Hotels launches new brand
As part of brand expansion plan, Apeejay Surrendra Park Hotels has made a new addition to its portfolio of hospitality offerring. Continuing with its design-led philosophy, the company has launched a new brand in the upscale segment called ‘Zone by The Park’.
Speaking on the sidelines of Hotel Investment Conference South Asia (HICSA) 2013, Priya Paul, chairperson, Apeejay Surrendra Park Hotels Ltd, said, though different from The Park, the company wanted to create a brand that would channel its inimitable spirit.
"Zone will cater to the gap in the Indian hotel market for the burgeoning Indian middle class and international traveller looking for budget travel. The hotels will be priced around the $80 - 100 mark," said Paul.
The new brand will primarily be managed properties and four hotels have been signed already. The hotels are expected to come up at Dehradhun, Raipur, Delhi and Coimbatore. A mix of brownfield and greenfield developments, these properties will ideally have 100 rooms and will be developed at a cost of Rs 40 lakh per room.
The first hotel will be operational by the year end. The company is targeting at having 25 hotels under the new brand in the next five years.
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Speaking on the sidelines of Hotel Investment Conference South Asia (HICSA) 2013, Priya Paul, chairperson, Apeejay Surrendra Park Hotels Ltd, said, though different from The Park, the company wanted to create a brand that would channel its inimitable spirit.
"Zone will cater to the gap in the Indian hotel market for the burgeoning Indian middle class and international traveller looking for budget travel. The hotels will be priced around the $80 - 100 mark," said Paul.
The new brand will primarily be managed properties and four hotels have been signed already. The hotels are expected to come up at Dehradhun, Raipur, Delhi and Coimbatore. A mix of brownfield and greenfield developments, these properties will ideally have 100 rooms and will be developed at a cost of Rs 40 lakh per room.
The first hotel will be operational by the year end. The company is targeting at having 25 hotels under the new brand in the next five years.
Follow Ashish K Tiwari on twitter @ashishktiwari
FDA probe cloud clobbers Wockhardt
This story first appeared in DNA Money edition on Saturday, Apr 13, 2013.
Wockhardt is understood to be facing issues with the United States Food and Drug Administration (USFDA), which has sought clarifications on its injectables facility in Aurangabad.
A USFDA team inspected the facility last month.
Wockhardt officials did not share details on the clarifications sought, whether Wockhardt has provided the necessary information to the USFDA and the stage the matter is in now.
“It is a routine matter and there is nothing more to disclose on this as yet,” said a company spokesperson.
But the company’s stock has corrected more than 20% in the last 3-4 days. Market sources attributed the decline to concerns expressed by USFDA on the unit.
According to Bhavika Thakker, research analyst, IIFL, the company has been issued FDA 483 letter, which is generally followed by a warning letter if the agency is not satisfied with the responses.
“However, it’s not something to be worried about as the said unit doesn’t contribute more than 3-4% of Wockhardt’s US revenues,” said Thakker.
To be sure, the Aurangabad unit does not manufacture Toprol XL, Flonase or any other high value product.
Whether a warning letter has been issued to Wockhardt as well is not yet known. But even if it were, it would only affect new approvals in injectables and not the current revenue stream, according to analysts.
“We estimate less than 5% impact to earnings, should this facility get a warning letter, assuming no new launch takes place from the same,” said an analyst. “We believe the sell-off is overdone, especially noting there is still no visibility of an adverse USFDA action as well as limited impact from the unit in consideration.”
Going by the analyst, the management believes the issues can be resolved and there would be clarity post the USFDA’s revert on their responses, expected in 3-4 weeks
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Wockhardt is understood to be facing issues with the United States Food and Drug Administration (USFDA), which has sought clarifications on its injectables facility in Aurangabad.
A USFDA team inspected the facility last month.
Wockhardt officials did not share details on the clarifications sought, whether Wockhardt has provided the necessary information to the USFDA and the stage the matter is in now.
“It is a routine matter and there is nothing more to disclose on this as yet,” said a company spokesperson.
But the company’s stock has corrected more than 20% in the last 3-4 days. Market sources attributed the decline to concerns expressed by USFDA on the unit.
According to Bhavika Thakker, research analyst, IIFL, the company has been issued FDA 483 letter, which is generally followed by a warning letter if the agency is not satisfied with the responses.
“However, it’s not something to be worried about as the said unit doesn’t contribute more than 3-4% of Wockhardt’s US revenues,” said Thakker.
To be sure, the Aurangabad unit does not manufacture Toprol XL, Flonase or any other high value product.
Whether a warning letter has been issued to Wockhardt as well is not yet known. But even if it were, it would only affect new approvals in injectables and not the current revenue stream, according to analysts.
“We estimate less than 5% impact to earnings, should this facility get a warning letter, assuming no new launch takes place from the same,” said an analyst. “We believe the sell-off is overdone, especially noting there is still no visibility of an adverse USFDA action as well as limited impact from the unit in consideration.”
Going by the analyst, the management believes the issues can be resolved and there would be clarity post the USFDA’s revert on their responses, expected in 3-4 weeks
Follow Ashish K Tiwari on twitter @ashishktiwari
Will ad agencies go head to head with IT cos?
This story first appeared in DNA Money edition on Friday, Apr 12, 2013.
IT companies have some serious competition at hand – from advertising agencies.
“We have over 2,000 professionals with skills in web and creative design, content, and front-end development. The designers play an important role in understanding the customers’ brands, and extending their brand values onto the digital channels and experience,” said Sairaj Vaithilingam, assistant vice-president, Cognizant Interactive.
Clearly, the digital space is not just about putting a banner advertisement on a website anymore. Engaging the consumer, developing applications for smart phones have become an integral part of the process. The game could change further as the cost of devices like the iPad and tablets comes down further.
“People earlier did not think that a large set of consumers will transition from desktops to mobile devices and advertisements were never made keeping mobile devices in mind. This is certainly a huge problem for marketers and brand managers. Advertising agencies will thus have to stay ahead of the curve. Their job is never done, as, by the time they've finished, it's already become obsolete,” Bhasin signed off.
IT companies have some serious competition at hand – from advertising agencies.
As ad agencies staff up to deliver
increasingly complex, cutting-edge digital content, they have been
pushing into what has traditionally been the IT players' turf. Going
forward, it isn't entirely unlikely that they will compete for a
piece of the same pie with the likes of TCS, Infosys, Cognizant and
Wipro, feel industry sources.
“The blurring of lines is going to be
a reality, so you might as well be ready for it,” said Madhukar
Kamath, group CEO & MD, DDB Mudra Group.
Ashish Bhasin, CEO -
South East Asia and South Asia and, chairman - India, Aegis Media,
couldn't agree more. “It’s like how the IT majors do tech
development in their areas globally. There is nothing that prevents
advertising companies from doing it as well.”
Aegis Media, for
one, is putting together a large tech team, including the likes of
programmers and net developers.
The agency currently employs 18 people
and plans to at least double that number in the next few months to be
able to efficiently deliver the digital and mobile communication
needs of its existing and future clients.
“If the approach works well, we can
easily look at 200 people in the near future. This team will be doing
just tech and the business vertical will cater to the global market
and not just India,” said Bhasin.
With the digital, social and mobile
space significantly influencing the customer's buying decision,
corporates today are seeking more meaningful – and innovative –
engagement on these platforms.
Ad agencies are therefore required to
offer a better combination of creative minds and effective technology
to deliver the client's message.
“One can conceive and create a great
idea, but delivering it will be impossible if you don’t have an
equally great tech team,” said Bhasin.
But it's not a one-way
street.
Cognizant, for example, has a vertical
called Cognizant Interactive, which, the advertising fraternity
believes, is very close to what they do for meeting the client's
digitial/ mobile advertising and communications needs. The vertical
has three key practices – Web Solutions, eLearning, and User
Documentation.
“We have over 2,000 professionals with skills in web and creative design, content, and front-end development. The designers play an important role in understanding the customers’ brands, and extending their brand values onto the digital channels and experience,” said Sairaj Vaithilingam, assistant vice-president, Cognizant Interactive.
Clearly, the digital space is not just about putting a banner advertisement on a website anymore. Engaging the consumer, developing applications for smart phones have become an integral part of the process. The game could change further as the cost of devices like the iPad and tablets comes down further.
“People earlier did not think that a large set of consumers will transition from desktops to mobile devices and advertisements were never made keeping mobile devices in mind. This is certainly a huge problem for marketers and brand managers. Advertising agencies will thus have to stay ahead of the curve. Their job is never done, as, by the time they've finished, it's already become obsolete,” Bhasin signed off.
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