This story first appeared in DNA Money edition on Thursday, May 23, 2013.
Daiichi Sankyo, the Japanese parent of Ranbaxy Laboratories, is weighing legal options to sue the former promoter-shareholders of the New Delhi-based generics drugmaker.
The Singh brothers -- Shivinder & Malvinder -- had sold Ranbaxy to Daiichi in 2008 for $4.6 billion. Daiichi bought a 51% stake -- including 34.8% that the Singhs held -- in June 2008.
In a statement, the company said it believes “certain former shareholders” of Ranbaxy concealed and misrepresented critical information concerning the US Department of Justice and Food and Drug Administration (FDA) investigations.
“Daiichi Sankyo is currently pursuing its available legal remedies and cannot comment further on the subject at this time,” the company said.
“Daiichi Sankyo continues to support Ranbaxy in its efforts to address and correct the conduct of the past which led to the investigations by the US Department of Justice and the FDA. These efforts include significant changes to Ranbaxy’s management, culture, operations and compliance,” it said.
Arun Sawhney, CEO and managing director, said: “Ranbaxy is a different company today.
The steps we have taken over the recent years reflect the wide-ranging efforts of the current board and management to address certain conduct of the past and ensure that Ranbaxy moves forward with integrity and professionalism in everything we do. We are fully committed to upholding the high standards that patients, prescribers and all other stakeholders expect.”
The comments follow a detailed excoriation of Ranbaxy’s past practices by the Forbes magazine in its latest issue.
“All Ranbaxy products currently in the global market are safe and effective,” Sawhney said.
The company, he said, has made investments of over $300 million (Rs 1,650 crore) in its manufacturing facilities to install state-of-the-art technologies.
“We have also instituted a rigorous new code of conduct for all Ranbaxy employees, with clear accountability for compliance,” he said.
Sawhney said Ranbaxy has successfully launched several new generic equivalents across the world recently, and maintains a robust pipeline of important new products.
“We look forward to continuing to enrich lives globally with quality and affordable medicines.”
Sunday 26 May 2013
Myths make advertising exciting and desirable
These Q&As first appeared in DNA Money edition on Wednesday, May 22, 2013.
Portfolio Night 11, a global event to nurture young talent in the advertising industry by giving them an opportunity to showcase their ideas to creative directors of the country is taking place today evening at the JWT India office in Mumbai. Ashish K Tiwari spoke to four of the 30 jury panelists, who would judge the work at the Mumbai leg of the event which is being simultaneously held in 20 cities globally. JWT, a unit of WPP, the world's biggest communications company, hosting the Mumbai event.
I look for the work, the passion, the hunger, the madness inside, the look in the eyes, the truth about the individual. A portfolio is about the work, but it is also about the person.
What are your views on the various myths people have about advertising and the industry in general?
Myths are important. They play an important role in building an aura around the industry. Myths add to the conversation and make advertising exciting and desirable. We need more myths. Myths are the advertising agency for advertising.
What is the myth that you would like to bust for those waiting to enter the industry?
I'm not in the business of busting myths. I'm in the business of creating them. Myths add sizzle to people, brands and life. It gives people something to share and pass on. All I can say to the newcomers is follow the myths. Think for yourself. Find out for yourself. Seek your own truth. That's the reason you are here in the first place.
Did you have a myth on advertising before joining the industry? What was it and how did you develop that myth?
I was clueless when I joined advertising. I had no myths about the industry. But I had a myth about myself. I thought I was creative. People told me I wasn't. So I spent my early years trying to prove that I am creative. I'm still trying. I have lots more to discover. My myth is my fuel. My myth makes me me.
How did it get busted when you actually got into advertising?
I was fortunate that people didn't believe the myth about me. The myth that I was creative. But then one day I met this amazing man called Suresh Mullick. He publicly acknowledged me as being creative. He called me 'Youth of India'. I tried to live up to his belief about me. In time I lived out my own myth.
Any other observations that you'd like to share with the people looking to make a career in advertising?
I'd ask the freshers one question -- What's the myth you have about yourself? Your myth will give you energy. It will drive you, keep you hungry. And even if the creative directors who are judging you at Portfolio Night don't acknowledge your myth about yourself, it's okay. Go your way. Your myth will take you to where you belong. You can be great if you focus, believe and follow your myth.
The ideation process, the freshness in thinking.
What are your views on the several myths people have about advertising and the industry in general?
The biggest myth is that you can express yourself the way you feel like. In reality there is a method to this madness and yet there is some madness to the method.
What is that myth that you would like to bust for those wanting to enter the industry?
The myth that I want to break is that advertising is not rocket science. End of the day this is serious selling of a product creatively.
Did you have a myth on advertising before joining the industry?
The myth that I had been told about, is that you get to hang out with fancy models. This is definitely not the truth. I've tried to break the myth by telling people that it's sheer hard work but they refuse to believe me.
How did it get busted when you actually got into advertising?
I think it got busted when I found that we spent more time running to client's office, running to media houses to deliver artworks, running to slide makers for big presentations. So I never got to see the fancy models that I could run after.
Any other observations you'd like to share with the people looking to make a career in advertising?
It is an exciting business because you're addressing and solving different things every week. This sheer variety is unlikely to come to you on a weekly basis in any other business. So if you have the passion, this is a great business to be in.
What are the key aspects you would look for in a portfolio?
When I look at a portfolio, I am usually most impressed by great craft, or at least the promise of great craft. At the same time, I look for simple, imaginative ideas that answer a particular need. It’s important that the work is in good taste. Creativity is most important. Yet there shouldn’t be a logical flaw in the way the idea is conceived.
What are your views on the various myths people have about advertising?
Many of the old myths about advertising are not relevant anymore. The world’s more transparent now. People know more about everything. I think people realise that advertising is not like they show it in Mad Men.
What is that myth that you would like to bust for those waiting to enter the industry?
That it’s just about great work. Nothing else matters. And great work requires a tremendous amount work, not just talent.
Did you have a myth about advertising before joining the industry?
I did not have a myth. I wanted to get into architecture. Advertising was the second choice. But that was then.
Any other observation that you’d like to share with the people looking to make a career in advertising?
1. Be nice to others. In today’s collaborative world, you need to be a great team player.
2. Don’t be too disillusioned by your talent. It is only 5% of the reason for your success.
3. Never be attached to your ideas. It is better to pre-empt the death of your favourite idea, and be prolific.
4. Concentrate most on your key craft. But read up, learn and stay interested in other disciplines.
What are the key aspects that you would look for in a portfolio?
First, I would ask every aspiring young chap to showcase only 10 best pieces of work in the portfolio. This would force the candidate to be a judge of their own work first and help understand their point of view on advertising. Next, I would look for original ideas.
What are your views on the various myths people have about advertising and the industry in general?
Creative arts are amplified by mythology and the legends that supposedly live these myths. And this just goes to prove that people are really interested in this profession and the industry by spreading these myths through the oldest form of communication ever -- word of mouth.
What is that myth that you would like to bust for those waiting to enter the industry?
The myth that advertising is rocket science. I believe that common sense and a curious mind is all that you really need.
Did you have a myth on advertising before joining the industry? What was it and how did you develop that myth?
The myth that advertising is difficult if you don’t have training in the visual arts or creative writing.
How did it get busted when you actually got into advertising?
When I started believing in my ideas I lost all unnecessary doubts and just took the plunge.
Any other observations?
Stay hungry. Believe in your ideas. Never give up on an idea. And the best revenge is a better idea.
Portfolio Night 11, a global event to nurture young talent in the advertising industry by giving them an opportunity to showcase their ideas to creative directors of the country is taking place today evening at the JWT India office in Mumbai. Ashish K Tiwari spoke to four of the 30 jury panelists, who would judge the work at the Mumbai leg of the event which is being simultaneously held in 20 cities globally. JWT, a unit of WPP, the world's biggest communications company, hosting the Mumbai event.
Myths make advertising exciting and desirable
Josy Paul, chairman and chief creative officer, BBDO India
What are the key aspects you would look for in a portfolio?
I look for the work, the passion, the hunger, the madness inside, the look in the eyes, the truth about the individual. A portfolio is about the work, but it is also about the person.
What are your views on the various myths people have about advertising and the industry in general?
Myths are important. They play an important role in building an aura around the industry. Myths add to the conversation and make advertising exciting and desirable. We need more myths. Myths are the advertising agency for advertising.
What is the myth that you would like to bust for those waiting to enter the industry?
I'm not in the business of busting myths. I'm in the business of creating them. Myths add sizzle to people, brands and life. It gives people something to share and pass on. All I can say to the newcomers is follow the myths. Think for yourself. Find out for yourself. Seek your own truth. That's the reason you are here in the first place.
Did you have a myth on advertising before joining the industry? What was it and how did you develop that myth?
I was clueless when I joined advertising. I had no myths about the industry. But I had a myth about myself. I thought I was creative. People told me I wasn't. So I spent my early years trying to prove that I am creative. I'm still trying. I have lots more to discover. My myth is my fuel. My myth makes me me.
How did it get busted when you actually got into advertising?
I was fortunate that people didn't believe the myth about me. The myth that I was creative. But then one day I met this amazing man called Suresh Mullick. He publicly acknowledged me as being creative. He called me 'Youth of India'. I tried to live up to his belief about me. In time I lived out my own myth.
Any other observations that you'd like to share with the people looking to make a career in advertising?
I'd ask the freshers one question -- What's the myth you have about yourself? Your myth will give you energy. It will drive you, keep you hungry. And even if the creative directors who are judging you at Portfolio Night don't acknowledge your myth about yourself, it's okay. Go your way. Your myth will take you to where you belong. You can be great if you focus, believe and follow your myth.
Advertising is not just about hanging out with fancy models
Piyush Pandey, executive chairman and creative director-South Asia, Ogilvy & Mather India
What are the key aspects you would look for in a portfolio?
The ideation process, the freshness in thinking.
What are your views on the several myths people have about advertising and the industry in general?
The biggest myth is that you can express yourself the way you feel like. In reality there is a method to this madness and yet there is some madness to the method.
What is that myth that you would like to bust for those wanting to enter the industry?
The myth that I want to break is that advertising is not rocket science. End of the day this is serious selling of a product creatively.
Did you have a myth on advertising before joining the industry?
The myth that I had been told about, is that you get to hang out with fancy models. This is definitely not the truth. I've tried to break the myth by telling people that it's sheer hard work but they refuse to believe me.
How did it get busted when you actually got into advertising?
I think it got busted when I found that we spent more time running to client's office, running to media houses to deliver artworks, running to slide makers for big presentations. So I never got to see the fancy models that I could run after.
Any other observations you'd like to share with the people looking to make a career in advertising?
It is an exciting business because you're addressing and solving different things every week. This sheer variety is unlikely to come to you on a weekly basis in any other business. So if you have the passion, this is a great business to be in.
Never be attached to your ideas
Ravi Deshpande, chairman and chief creative officer, Contract Advertising
What are the key aspects you would look for in a portfolio?
When I look at a portfolio, I am usually most impressed by great craft, or at least the promise of great craft. At the same time, I look for simple, imaginative ideas that answer a particular need. It’s important that the work is in good taste. Creativity is most important. Yet there shouldn’t be a logical flaw in the way the idea is conceived.
What are your views on the various myths people have about advertising?
Many of the old myths about advertising are not relevant anymore. The world’s more transparent now. People know more about everything. I think people realise that advertising is not like they show it in Mad Men.
What is that myth that you would like to bust for those waiting to enter the industry?
That it’s just about great work. Nothing else matters. And great work requires a tremendous amount work, not just talent.
Did you have a myth about advertising before joining the industry?
I did not have a myth. I wanted to get into architecture. Advertising was the second choice. But that was then.
Any other observation that you’d like to share with the people looking to make a career in advertising?
1. Be nice to others. In today’s collaborative world, you need to be a great team player.
2. Don’t be too disillusioned by your talent. It is only 5% of the reason for your success.
3. Never be attached to your ideas. It is better to pre-empt the death of your favourite idea, and be prolific.
4. Concentrate most on your key craft. But read up, learn and stay interested in other disciplines.
A curious mind is what you need
Senthil Kumar, National Creative Director, JWT India
What are the key aspects that you would look for in a portfolio?
First, I would ask every aspiring young chap to showcase only 10 best pieces of work in the portfolio. This would force the candidate to be a judge of their own work first and help understand their point of view on advertising. Next, I would look for original ideas.
What are your views on the various myths people have about advertising and the industry in general?
Creative arts are amplified by mythology and the legends that supposedly live these myths. And this just goes to prove that people are really interested in this profession and the industry by spreading these myths through the oldest form of communication ever -- word of mouth.
What is that myth that you would like to bust for those waiting to enter the industry?
The myth that advertising is rocket science. I believe that common sense and a curious mind is all that you really need.
Did you have a myth on advertising before joining the industry? What was it and how did you develop that myth?
The myth that advertising is difficult if you don’t have training in the visual arts or creative writing.
How did it get busted when you actually got into advertising?
When I started believing in my ideas I lost all unnecessary doubts and just took the plunge.
Any other observations?
Stay hungry. Believe in your ideas. Never give up on an idea. And the best revenge is a better idea.
Zee offers 1:21 bonus of redeemable pref shares
This story first appeared in DNA Money edition on Thursday, May 23, 2013.
Zee Entertainment Enterprises Ltd offered a novel bonus to shareholders as part of its celebration for the completion of 20 years of the Zee brand as it reported a 10.7% year-on-year growth in net profit for the fourth quarter at Rs 180.4 crore.
The Q4 performance was driven by strong advertising and subscription revenues, which grew 15.5% and 13% at Rs 479.2 crore and Rs 454.6 crore, respectively.
Net profit for the full fiscal rose 21.6% at Rs 718.2 crore, while advertising revenues increased 24% at Rs 1,963.9 crore and subscription revenues 22.6% at Rs 1,623.4 crore.
Subhash Chandra, chairman, Zee, said, “The recent policy initiatives by the government and further reforms should help boost business sentiment and improve the investment climate. Despite the backdrop of a slowing economy in the last fiscal, television media industry has continued on its growth path.”
The company’s board has recommended a cash dividend of Rs 2 per share to celebrate the completion of 20 years of brand Zee.
In a unique approach to rewarding shareholders, the company board also announced distribution of Rs 2,000 crore through bonus issue of redeemable preference shares.
Atul Das, chief strategy officer, Zee, said that equity shareholders will be issued 21 preference shares of Rs 1 each for every one equity share held by a shareholder.
“It carries a dividend coupon of 6% per annum, which implies that every year on this amount shareholders will get 6% dividend and it has a tenure of eight years. Fourth year onwards, every year the company will redeem one-fifth of the nominal value of these preference shares,” said Das.
So for instance, taking Rs 2,000 crore as an approximate number, fourth year onwards Rs 400 crore will be paid back to the shareholders.
“It’s a committed pay to the shareholders. It’s basically setting out the agenda that the investor will receive the payouts every year till the tenure of these shares gets over,” said Das.
Consolidated operating revenues for Q4 rose 11% at Rs 964.3 crore. Operating profit for Q4 rose 51.4% at Rs 242.3 crore, while Ebitda margin stood at 25.1%. Operating profit for the full last fiscal rose 29% at Rs 954.3 crore, while total revenues rose 21.7% to Rs 3,699.6 crore.
Punit Goenka, managing director and chief executive officer, Zee, said the fiscal 2013 has been good — both on operating as well as financial parameters.
“Zee gained viewership share with improvement across genres, both in national and regional languages, which led to outperformance in advertising growth relative to industry.
We have also seen steady improvement in our sports business over the last three years.
While investment in sports continues, performance has improved substantially with better monetisation from subscription.”
The company board has also approved enhancement of FII investments in the company beyond the current limit of 49% up to the maximum sectoral limit allowed under applicable foreign direct investment regulations, subject to appropriate approvals.
Zee Entertainment Enterprises Ltd offered a novel bonus to shareholders as part of its celebration for the completion of 20 years of the Zee brand as it reported a 10.7% year-on-year growth in net profit for the fourth quarter at Rs 180.4 crore.
The Q4 performance was driven by strong advertising and subscription revenues, which grew 15.5% and 13% at Rs 479.2 crore and Rs 454.6 crore, respectively.
Net profit for the full fiscal rose 21.6% at Rs 718.2 crore, while advertising revenues increased 24% at Rs 1,963.9 crore and subscription revenues 22.6% at Rs 1,623.4 crore.
Subhash Chandra, chairman, Zee, said, “The recent policy initiatives by the government and further reforms should help boost business sentiment and improve the investment climate. Despite the backdrop of a slowing economy in the last fiscal, television media industry has continued on its growth path.”
The company’s board has recommended a cash dividend of Rs 2 per share to celebrate the completion of 20 years of brand Zee.
In a unique approach to rewarding shareholders, the company board also announced distribution of Rs 2,000 crore through bonus issue of redeemable preference shares.
Atul Das, chief strategy officer, Zee, said that equity shareholders will be issued 21 preference shares of Rs 1 each for every one equity share held by a shareholder.
“It carries a dividend coupon of 6% per annum, which implies that every year on this amount shareholders will get 6% dividend and it has a tenure of eight years. Fourth year onwards, every year the company will redeem one-fifth of the nominal value of these preference shares,” said Das.
So for instance, taking Rs 2,000 crore as an approximate number, fourth year onwards Rs 400 crore will be paid back to the shareholders.
“It’s a committed pay to the shareholders. It’s basically setting out the agenda that the investor will receive the payouts every year till the tenure of these shares gets over,” said Das.
Consolidated operating revenues for Q4 rose 11% at Rs 964.3 crore. Operating profit for Q4 rose 51.4% at Rs 242.3 crore, while Ebitda margin stood at 25.1%. Operating profit for the full last fiscal rose 29% at Rs 954.3 crore, while total revenues rose 21.7% to Rs 3,699.6 crore.
Punit Goenka, managing director and chief executive officer, Zee, said the fiscal 2013 has been good — both on operating as well as financial parameters.
“Zee gained viewership share with improvement across genres, both in national and regional languages, which led to outperformance in advertising growth relative to industry.
We have also seen steady improvement in our sports business over the last three years.
While investment in sports continues, performance has improved substantially with better monetisation from subscription.”
The company board has also approved enhancement of FII investments in the company beyond the current limit of 49% up to the maximum sectoral limit allowed under applicable foreign direct investment regulations, subject to appropriate approvals.
Thomas Cook to put its commercial spaces on sale
This story first appeared in DNA Money edition on Tuesday, May 21, 2013.
Travel and tour operator Thomas Cook (India) Ltd (TCIL) is selling some of its commercial spaces to raise money for working capital requirements.
The company is understood to have roped in international property consultant (IPC) Jones Lang LaSalle (JLL) as advisor for the office space transactions.
“We are always on the lookout for opportunities that may arise due to changes in the market for this domain,” said Madhavan Menon, MD of TCIL.
He, however, did not share details of the office spaces that may be sold and the kind of money that is being sought to be raised.
TCIL is understood to own around 32 properties or 1.26 lakh square feet (sq ft) of office space across the country. In addition, it reportedly owns over 60,000 sq ft and 43,000 sq ft in Mumbai and Delhi, respectively.
According to JLL’s monthly real estate monitor (May 2013), prime office space in a metro like Mumbai would typically cost anywhere between Rs 21,000 and Rs 30,000 per sq foot. In cities like Hyderabad, it is Rs 5,500-6,000 per sq foot. In Pune, it is Rs 4,750-5,000. Office space in Kolkata costs around Rs 18,000 per sq foot. In Delhi, the per sq foot rate is around Rs 31,500.
TCIL’s south Mumbai property itself is estimated to be worth up to Rs 250 crore.
In May last year, Fairbridge Capital (Mauritius) had acquired a 76.69% stake in TCIL from its erstwhile UK-based parent.
In February this year, TCIL diversified into executive search industry by acquiring a 74% stake in Ikya Human Capital Solutions, a staffing solutions company, for Rs 256 crore.
Travel and tour operator Thomas Cook (India) Ltd (TCIL) is selling some of its commercial spaces to raise money for working capital requirements.
The company is understood to have roped in international property consultant (IPC) Jones Lang LaSalle (JLL) as advisor for the office space transactions.
“We are always on the lookout for opportunities that may arise due to changes in the market for this domain,” said Madhavan Menon, MD of TCIL.
He, however, did not share details of the office spaces that may be sold and the kind of money that is being sought to be raised.
TCIL is understood to own around 32 properties or 1.26 lakh square feet (sq ft) of office space across the country. In addition, it reportedly owns over 60,000 sq ft and 43,000 sq ft in Mumbai and Delhi, respectively.
According to JLL’s monthly real estate monitor (May 2013), prime office space in a metro like Mumbai would typically cost anywhere between Rs 21,000 and Rs 30,000 per sq foot. In cities like Hyderabad, it is Rs 5,500-6,000 per sq foot. In Pune, it is Rs 4,750-5,000. Office space in Kolkata costs around Rs 18,000 per sq foot. In Delhi, the per sq foot rate is around Rs 31,500.
TCIL’s south Mumbai property itself is estimated to be worth up to Rs 250 crore.
In May last year, Fairbridge Capital (Mauritius) had acquired a 76.69% stake in TCIL from its erstwhile UK-based parent.
In February this year, TCIL diversified into executive search industry by acquiring a 74% stake in Ikya Human Capital Solutions, a staffing solutions company, for Rs 256 crore.
The Great Summer Escape to 'cool' spots spells travel boom
This story first appeared in DNA Money edition on Monday, May 20, 2013.
Rising mercury levels this summer are bringing glad tidings to the Indian travel and tourism industry. Forget the earlier doom-and-gloom predictions: firms in this sector are now confident of posting a 25% on-year growth this calendar year on the back of people’s penchant to travel to cooler climes to escape the scorching heat.
Citizens are travelling to Indian and overseas destinations far and wide, sources said.
Industry estimates suggest that the number of Indians travelling overseas is set to rise from around 1.5 crore at present to 5 crore by 2020.
A resurgent economy, upwardly mobile lifestyles and increasing discretionary income are driving travel and tourism, said industry experts.
Madhav Pai, director – leisure travel (outbound), Thomas Cook (India), said, “Irrespective of price hikes, Indians are travelling like never before. Clearly, travel is now a ‘must-do’ element in the Indian summer agenda.”
Karan Anand, head-relationships, Cox & Kings, said, “Domestic travel certainly continues to be the mainstay, growing at 30% annually. Outbound is not far behind with an on-year growth of close to 25%.”
Moderate to high growth rates are in evidence everywhere. For instance, Australia’s Tourism Forecasting Council predicts 1.75 lakh arrivals from India in 2013/14, a 9% increase over 2012.
From 41,000 Indian visitors in 2000, Australia received around 1.60 lakh visitors in 2012. Nishant Kashikar, country manager-India, Tourism Australia, said, “Arrivals from India are expected to perform well, with an average annual financial year growth rate of 7.2% through to 2020-21.”
Such figures are encouraging travel and airline companies to offer the world to travellers, in the form of early bird offers, complimentary stays, companion offers, kids-stay-free opportunities, free transfers, discounted sightseeing tours and promotional airfares.
Some of these are for overseas destinations, but they are priced more or less at the same level as that of domestic attractions.
These are driving a good chunk of Indian travellers to short-haul destinations in regions like the South-east Asia, Asia-Pacific and the Middle East.
Other higher priced packages, like the Rs 99,999-per-person week-long tours of Cox & Kings, target destinations like Switzerland, Italy, east European countries, Spain and France.
Of course, there are many takers because such packages include return economy class air ticket, taxes, visa charges, overseas travel insurance, accommodation with breakfast, sightseeing and inter-city train travel on the European Rail Network, said Anand.
If not A, then B, or C – that seems the resolve of Indian travellers these days, said Ashwini Kakkar, executive vice chairman, Mercury Travels. “The recent flash sales announced by a few carriers proved to be a boon for travellers who had already planned their holidays. And, thanks to declining petrol prices, those who were left out are now driving down to the destination with family. They are all holidaying as per their convenience.”
Summer’s momentum is expected to continue beyond the season with a brief pause in June when schools and colleges open. For, a different kind of travellers – double-income-no-kids couples and singles – undertake post-summer journeys. “Monsoon is a time when destinations like Goa and Kerala aggressively promote themselves,” said Pai.
Post-summer airfares are expected to drop, said Anand. “Any such drop would entice consumers to book during the traditional ‘off season’ like the monsoon. Our Drizzlers offering had shown interesting uptake in 2012, and we hope to replicate this success even more emphatically in 2013.”
Within India: Kashmir, Himachal Pradesh, the North East, the Andamans and other hill stations.
Outside India: South Africa, Canada, the Philippines, Australia and New Zealand are catching outbound travellers’ attention.
Europe and the US continue to be preferred destinations for the Indian traveller
Iceland, Greenland, Morocco, Canary Islands, Galapagos and Ecuador are on the travel radar this year.
Singapore, Malaysia, Thailand, Hong Kong, Macau, Dubai and Mauritius remain popular short-haul destinations
Rising mercury levels this summer are bringing glad tidings to the Indian travel and tourism industry. Forget the earlier doom-and-gloom predictions: firms in this sector are now confident of posting a 25% on-year growth this calendar year on the back of people’s penchant to travel to cooler climes to escape the scorching heat.
Citizens are travelling to Indian and overseas destinations far and wide, sources said.
Industry estimates suggest that the number of Indians travelling overseas is set to rise from around 1.5 crore at present to 5 crore by 2020.
A resurgent economy, upwardly mobile lifestyles and increasing discretionary income are driving travel and tourism, said industry experts.
Madhav Pai, director – leisure travel (outbound), Thomas Cook (India), said, “Irrespective of price hikes, Indians are travelling like never before. Clearly, travel is now a ‘must-do’ element in the Indian summer agenda.”
Karan Anand, head-relationships, Cox & Kings, said, “Domestic travel certainly continues to be the mainstay, growing at 30% annually. Outbound is not far behind with an on-year growth of close to 25%.”
Moderate to high growth rates are in evidence everywhere. For instance, Australia’s Tourism Forecasting Council predicts 1.75 lakh arrivals from India in 2013/14, a 9% increase over 2012.
From 41,000 Indian visitors in 2000, Australia received around 1.60 lakh visitors in 2012. Nishant Kashikar, country manager-India, Tourism Australia, said, “Arrivals from India are expected to perform well, with an average annual financial year growth rate of 7.2% through to 2020-21.”
Such figures are encouraging travel and airline companies to offer the world to travellers, in the form of early bird offers, complimentary stays, companion offers, kids-stay-free opportunities, free transfers, discounted sightseeing tours and promotional airfares.
Some of these are for overseas destinations, but they are priced more or less at the same level as that of domestic attractions.
These are driving a good chunk of Indian travellers to short-haul destinations in regions like the South-east Asia, Asia-Pacific and the Middle East.
Other higher priced packages, like the Rs 99,999-per-person week-long tours of Cox & Kings, target destinations like Switzerland, Italy, east European countries, Spain and France.
Of course, there are many takers because such packages include return economy class air ticket, taxes, visa charges, overseas travel insurance, accommodation with breakfast, sightseeing and inter-city train travel on the European Rail Network, said Anand.
If not A, then B, or C – that seems the resolve of Indian travellers these days, said Ashwini Kakkar, executive vice chairman, Mercury Travels. “The recent flash sales announced by a few carriers proved to be a boon for travellers who had already planned their holidays. And, thanks to declining petrol prices, those who were left out are now driving down to the destination with family. They are all holidaying as per their convenience.”
Summer’s momentum is expected to continue beyond the season with a brief pause in June when schools and colleges open. For, a different kind of travellers – double-income-no-kids couples and singles – undertake post-summer journeys. “Monsoon is a time when destinations like Goa and Kerala aggressively promote themselves,” said Pai.
Post-summer airfares are expected to drop, said Anand. “Any such drop would entice consumers to book during the traditional ‘off season’ like the monsoon. Our Drizzlers offering had shown interesting uptake in 2012, and we hope to replicate this success even more emphatically in 2013.”
Popular destinations
Within India: Kashmir, Himachal Pradesh, the North East, the Andamans and other hill stations.
Outside India: South Africa, Canada, the Philippines, Australia and New Zealand are catching outbound travellers’ attention.
Europe and the US continue to be preferred destinations for the Indian traveller
Iceland, Greenland, Morocco, Canary Islands, Galapagos and Ecuador are on the travel radar this year.
Singapore, Malaysia, Thailand, Hong Kong, Macau, Dubai and Mauritius remain popular short-haul destinations
TTK Prestige to enter water purifier mart
This story first appeared in DNA Money edition on Monday, May 20, 2013.
TTK Prestige, the maker of pressure cookers and kitchen appliances, is getting ready to enter India’s Rs 3,200-crore water purifier market where big names such as Aquaguard (Eureka Forbes), Pureit (Hindustan Unilver), Swach (Tata Chemicals) and Kent RO abound.
On Friday, a TTK official confirmed the development during an earnings call. “We will launch the water filter this fiscal.” No further details were divulged.
The TTK move comes amid industry estimates that the segment sales, riding compounded annual growth rate of 25%, will hit Rs 7,000 crore by 2015.
But TTK is facing testing times in the high-end kitchenware segment. Having tested the waters for more than one year, it has now decided not to push ahead with sales and distribution of World Kitchen’s brands “except Snapware” (which is range of spill-proof, nestable and airtight food storage containers made of plastic and glass).
T T Jagannathan, chairman of TTK Prestige, was earlier reported to be looking at Rs 50 crore in sales this year from the February 2012 partnership with the Illinois-based World Kitchen. The latter will now have to set up its own network to market and distribute its brands like Corelle, Corningware and Pyrex cutlery.
For the January-March quarter, TTK’s sales rose 22.3% on-year to Rs 289.46 crore. Operating income went up 32.5% to Rs 43.91 crore and net profit soared 42% to Rs 28.03 crore.
Growth in south India remained flat but rose 70% on-year in the rest of India (10% and 52% for the full fiscal respectively).
So, TTK has earmarked Rs 50 crore for capital expenditure this fiscal, while gross debt of Rs 115 crore is now being sought to be slashed to `60 crore by this fiscal end.
To de-risk, TTK is ramping up its presence in regions other than south India by appointing new distributors and setting up new accounts. This strategy has already helped boost activations 22.3% on-year during the fourth quarter. TTK is also stepping up advertising expenditure.
About future growth, the TTK official said, “Emphasis is being laid on our own brand retail stores focusing on non-south India markets. Currently, 65% of our stores are in south India and one-third elsewhere. That’s something we are planning to correct so that the proportion is in line with our turnover.”
TTK Prestige, the maker of pressure cookers and kitchen appliances, is getting ready to enter India’s Rs 3,200-crore water purifier market where big names such as Aquaguard (Eureka Forbes), Pureit (Hindustan Unilver), Swach (Tata Chemicals) and Kent RO abound.
On Friday, a TTK official confirmed the development during an earnings call. “We will launch the water filter this fiscal.” No further details were divulged.
The TTK move comes amid industry estimates that the segment sales, riding compounded annual growth rate of 25%, will hit Rs 7,000 crore by 2015.
But TTK is facing testing times in the high-end kitchenware segment. Having tested the waters for more than one year, it has now decided not to push ahead with sales and distribution of World Kitchen’s brands “except Snapware” (which is range of spill-proof, nestable and airtight food storage containers made of plastic and glass).
T T Jagannathan, chairman of TTK Prestige, was earlier reported to be looking at Rs 50 crore in sales this year from the February 2012 partnership with the Illinois-based World Kitchen. The latter will now have to set up its own network to market and distribute its brands like Corelle, Corningware and Pyrex cutlery.
For the January-March quarter, TTK’s sales rose 22.3% on-year to Rs 289.46 crore. Operating income went up 32.5% to Rs 43.91 crore and net profit soared 42% to Rs 28.03 crore.
Growth in south India remained flat but rose 70% on-year in the rest of India (10% and 52% for the full fiscal respectively).
So, TTK has earmarked Rs 50 crore for capital expenditure this fiscal, while gross debt of Rs 115 crore is now being sought to be slashed to `60 crore by this fiscal end.
To de-risk, TTK is ramping up its presence in regions other than south India by appointing new distributors and setting up new accounts. This strategy has already helped boost activations 22.3% on-year during the fourth quarter. TTK is also stepping up advertising expenditure.
About future growth, the TTK official said, “Emphasis is being laid on our own brand retail stores focusing on non-south India markets. Currently, 65% of our stores are in south India and one-third elsewhere. That’s something we are planning to correct so that the proportion is in line with our turnover.”
Sunday 19 May 2013
At JWT, focus is on building long-term careers
This Q&A first appeared in DNA Money edition on Saturday, May 18, 2013.
Sapna Srivastava, chief talent officer, JWT APAC, speaks about how the agency sees the Portfolio Night 11 initiative acting as a catalyst for the agency’s soon-to-be-introduced JWT Honours programme that focuses on creating long-term careers in advertising. Edited excerpts:
What prompted JWT to associate with Portfolio Night?
There were two compelling reasons for us take it up. First, to provide the young/ raw students a platform to showcase what they have done and are capable of doing. Secondly, we saw it as a great opportunity to identify bright talent (from the 90 participants) and eventually look into the possibilities of making them a part of JWT. We have always been and want to be known as an agency that helps build careers and hosting an event like this serves that purpose well.
How does the Portfolio Night approach to identifying budding talent?
As an organisation JWT India does not go to campuses as we feel we may not get the best of the candidates as there are many companies vying for the same pool of talent. The difference between campus recruitment and what we are doing through Portfolio Night is that here we’ve got people who are interested in a career in advertising. And while they are participating in the global event, they are actually coming to JWT. So we know these people are serious about a career and not using it as a stepping stone to go elsewhere.
So campus recruitment is not for creative talent and is largely restricted to account management roles for which hiring is done from B-schools.
What is the approach for recruiting creative people then?
There are many colleges that produce really good graduates. However, a lot of candidates write to us about wanting to start their careers and we generally choose from these applications.
Having said that, this year we are proactively launching a programme called ‘JWT Honours’, wherein we will go to colleges and make presentations about careers in JWT.
We will pick about 12 interns in every city, they will come and train with us for 12 weeks and create a book of work which will be evaluated and the best of the lot will be hired.
With this we are creating a whole new platform to help youngsters build their careers and Portfolio Night will act as a catalyst to our JWT Honours initiative, which will focus on creating long-term careers in advertising.
Could you tell us about the profile of candidates who have registered for the Portfolio Night event?
Majority for them are freshers who are either studying or have just passed out of their creative colleges. I think what they are really looking forward to from the event is a feedback on the work they have done while studying. Getting an opportunity to present their book of work to the likes of Prasoon Joshi or Piyush Pandey and getting a comment on what they’ve done is a great thing to have at the beginning of one’s career.
Even if the comment is negative, the young minds will know the direction they have to move thereafter; and if their work is good they will be highly appreciated. In fact, this year Portfolio Night will select the best of the creative minds from across the cities where this event is being hosted and fly them to New York where an All Stars Portfolio Night will be held. So one of the students from the Mumbai event will also go for this event.
Sapna Srivastava, chief talent officer, JWT APAC, speaks about how the agency sees the Portfolio Night 11 initiative acting as a catalyst for the agency’s soon-to-be-introduced JWT Honours programme that focuses on creating long-term careers in advertising. Edited excerpts:
What prompted JWT to associate with Portfolio Night?
There were two compelling reasons for us take it up. First, to provide the young/ raw students a platform to showcase what they have done and are capable of doing. Secondly, we saw it as a great opportunity to identify bright talent (from the 90 participants) and eventually look into the possibilities of making them a part of JWT. We have always been and want to be known as an agency that helps build careers and hosting an event like this serves that purpose well.
How does the Portfolio Night approach to identifying budding talent?
As an organisation JWT India does not go to campuses as we feel we may not get the best of the candidates as there are many companies vying for the same pool of talent. The difference between campus recruitment and what we are doing through Portfolio Night is that here we’ve got people who are interested in a career in advertising. And while they are participating in the global event, they are actually coming to JWT. So we know these people are serious about a career and not using it as a stepping stone to go elsewhere.
So campus recruitment is not for creative talent and is largely restricted to account management roles for which hiring is done from B-schools.
What is the approach for recruiting creative people then?
There are many colleges that produce really good graduates. However, a lot of candidates write to us about wanting to start their careers and we generally choose from these applications.
Having said that, this year we are proactively launching a programme called ‘JWT Honours’, wherein we will go to colleges and make presentations about careers in JWT.
We will pick about 12 interns in every city, they will come and train with us for 12 weeks and create a book of work which will be evaluated and the best of the lot will be hired.
With this we are creating a whole new platform to help youngsters build their careers and Portfolio Night will act as a catalyst to our JWT Honours initiative, which will focus on creating long-term careers in advertising.
Could you tell us about the profile of candidates who have registered for the Portfolio Night event?
Majority for them are freshers who are either studying or have just passed out of their creative colleges. I think what they are really looking forward to from the event is a feedback on the work they have done while studying. Getting an opportunity to present their book of work to the likes of Prasoon Joshi or Piyush Pandey and getting a comment on what they’ve done is a great thing to have at the beginning of one’s career.
Even if the comment is negative, the young minds will know the direction they have to move thereafter; and if their work is good they will be highly appreciated. In fact, this year Portfolio Night will select the best of the creative minds from across the cities where this event is being hosted and fly them to New York where an All Stars Portfolio Night will be held. So one of the students from the Mumbai event will also go for this event.
Colvyn Harris, CEO, JWT South Asia
We look at it as a initiative towards building a sustainable industry and ensuring that JWT continues to be at the forefront of what we do, that's one element of looking at it from a company's stand point.
From a clients' perspective, we always say that client is at the centre and, their brands and business are our primary concern. And if that is our key focus area then we have to have great talent in the industry and our company. When we say, creativity is at the heart of everything we do, then talent has to deliver on that purpose. The Portfolio Night 11 is fairly interlinked and features perspective from the company, industry and client.
We have 30 jury members (creative heads) and they will be meeting 3 participants each so 90 was our cap. We want the jury to have an in-depth look at the works being presented by each of the candidates and not just flip through it. We looked at a combination of space and time and arrived at the 90 number. Registrations have thus been closed for this years Portfolio Night event and we are now gearing up to hold the event next week at our office premises.
With Portfolio Night, ad frat looks to connect with creative minds
This Q&A first appeared in DNA Money edition on Friday, May 17, 2013.
JWT India, a unit of WPP, the world’s largest advertising group, recently unveiled a theme ‘An Eye-Opener’ for Portfolio Night 11 to clear misconceptions aspirants have about the advertising industry and people associated with it. Portfolio Night is a global event that would take place in 20 cities including Mumbai on May 22. Tista Sen, national creative director and senior vice-president, JWT India, speaks on the theme in connection with event. Edited excerpts:
What is the purpose of Portfolio Night 11 in connection with the advertising industry?
I think advertising to a certain extent needs to get back its mojo and Portfolio Night can play a significant role in achieving it. This event is an attempt to establish a dialogue with the young people. It’s also an eye-opener for people within the trade who may have got slightly deviated from the purpose they chose to be in this field. This is also to reinforce our clients’ belief in the work we do — the what, how and why of it — thereby regaining the credibility and authenticity of being a communicator, someone who builds brand value and brand equity so that it connects with consumers.
What went behind putting the theme for the event?
While putting together a theme, we felt it was time to really bring back the glory, prestige and values of what advertising really is. In the last couple of years there has been a huge erosion in terms of the core value of advertising. We wanted to approach it from the youngsters’ point of view — the superficial side — do you speak good English, is your hair long, do you wear earring?, etc.
That’s one part of it. The other part is that being in advertising is as serious as being in any other profession. Attributes like hard work, perseverance, commitment and putting in long working hours are true for advertising as it is in any other industry. So in that sense, the campaign is a real eye opener clearing all the notions in the market place.
How has the initiative been received thus far?
We created the initial buzz and excitement around the campaign on the Twitter platform with a hashtag #WhatIThinkAboutAdvertising. It was decided that as and when thoughts on advertising are shared, we will busts the myths and tell them this is what advertising is all about. We created three campaigns (consist of posters, hoardings, radio spots, social media activities and TVCs) highlighting some of the misconceptions about the advertising industry including ‘Women creatives can’t make it big in advertising’, ‘You cant be creative if you don’t have long hair’ and ‘Copywriters do all the thinking, art directors merely execute’.
How many people have registered for the Portfolio Night 11?
As we speak, there are 88 aspirants who have registered for the event. That’s a fantastic number considering we still have 4-5 days in hand before the event.
JWT India, a unit of WPP, the world’s largest advertising group, recently unveiled a theme ‘An Eye-Opener’ for Portfolio Night 11 to clear misconceptions aspirants have about the advertising industry and people associated with it. Portfolio Night is a global event that would take place in 20 cities including Mumbai on May 22. Tista Sen, national creative director and senior vice-president, JWT India, speaks on the theme in connection with event. Edited excerpts:
What is the purpose of Portfolio Night 11 in connection with the advertising industry?
I think advertising to a certain extent needs to get back its mojo and Portfolio Night can play a significant role in achieving it. This event is an attempt to establish a dialogue with the young people. It’s also an eye-opener for people within the trade who may have got slightly deviated from the purpose they chose to be in this field. This is also to reinforce our clients’ belief in the work we do — the what, how and why of it — thereby regaining the credibility and authenticity of being a communicator, someone who builds brand value and brand equity so that it connects with consumers.
What went behind putting the theme for the event?
While putting together a theme, we felt it was time to really bring back the glory, prestige and values of what advertising really is. In the last couple of years there has been a huge erosion in terms of the core value of advertising. We wanted to approach it from the youngsters’ point of view — the superficial side — do you speak good English, is your hair long, do you wear earring?, etc.
That’s one part of it. The other part is that being in advertising is as serious as being in any other profession. Attributes like hard work, perseverance, commitment and putting in long working hours are true for advertising as it is in any other industry. So in that sense, the campaign is a real eye opener clearing all the notions in the market place.
How has the initiative been received thus far?
We created the initial buzz and excitement around the campaign on the Twitter platform with a hashtag #WhatIThinkAboutAdvertising. It was decided that as and when thoughts on advertising are shared, we will busts the myths and tell them this is what advertising is all about. We created three campaigns (consist of posters, hoardings, radio spots, social media activities and TVCs) highlighting some of the misconceptions about the advertising industry including ‘Women creatives can’t make it big in advertising’, ‘You cant be creative if you don’t have long hair’ and ‘Copywriters do all the thinking, art directors merely execute’.
How many people have registered for the Portfolio Night 11?
As we speak, there are 88 aspirants who have registered for the event. That’s a fantastic number considering we still have 4-5 days in hand before the event.
Ajay Piramal bets Rs 1,652 crore on Shriram Transport
This story first appeared in DNA Money edition on Saturday, May 11, 2013.
Piramal Enterprises has acquired a 10% stake in Shriram Transport Finance Co Ltd (STFC), the country’s largest player in commercial vehicle finance, for Rs 1,652 crore.
Piramal acquired 2,28,47,468 shares from US-based private equity major TPG Capital at a price of Rs 753 per share, making it the largest bulk deal so far this fiscal.
“We see this deal as a beginning of a long-term partnership with Shriram Group as its business is very much in harmony with what we are doing,” said Piramal group chairman Ajay Piramal.
Asked if the group planned to increase stake further in STFC, Piramal said, “There are no such plans as of now.”
Piramal group, with presence in pharmaceutical, financial services and information management sectors, had consolidated revenues of over Rs 3,560 crore last fiscal. In the financial services space, it has a real estate focused PE fund – Indiareit – and a non-banking finance company (NBFC) focused on lending to real estate and education sector with a loan book of Rs 1,000 crore.
The company also makes structured investments in infrastructure projects and has recently struck deals with Hyderabad-based infrastructure company Navayuga Road Projects and renewable energy firm Green Infra.
Earlier reports had said that for the financial services vertical, Piramal was looking to build an asset size of Rs 15,000 crore in the next five years.
The deal between Piramal and TPG also indicates that the latter may have completely exited its investments in STFC, generating near seven times returns in as many years.
Newbridge India Investment II Ltd, a unit of TPG, had in 2006 acquired a 49% stake in unlisted group holding company Shriram Holding Madras Pvt Ltd (SHMPL), which currently holds 41.25% in STFC. When STFC was merged with SHMPL in December 2011, Newbridge got a 20.28% stake in the merged entity.
As per Bloomberg data, the (post-merger) acquisition cost of the 2006 deal for TPG worked out to Rs 112.75 per share.
In a bulk deal on the National Stock Exchange in February, Newbridge had sold 23.15 million STFC shares (or a 10.2% stake) to a clutch of institutional investors for Rs 1,656 crore. That deal is understood to have netted TPG a whopping 450-500% returns, or a cool Rs 1,350 crore in profit.
Shriram Transport, which logged revenues of Rs 7,014 crore and a profit after tax of Rs 1,463 crore last fiscal, had assets of over Rs 52,717 crore under management and is among India’s largest player in commercial vehicle finance with a niche presence in financing pre-owned and small truck owners.
The company has a network of 528 branches and service centres across India and is also one of the largest asset financing NBFCs in the country.
Piramal Enterprises has acquired a 10% stake in Shriram Transport Finance Co Ltd (STFC), the country’s largest player in commercial vehicle finance, for Rs 1,652 crore.
Piramal acquired 2,28,47,468 shares from US-based private equity major TPG Capital at a price of Rs 753 per share, making it the largest bulk deal so far this fiscal.
“We see this deal as a beginning of a long-term partnership with Shriram Group as its business is very much in harmony with what we are doing,” said Piramal group chairman Ajay Piramal.
Asked if the group planned to increase stake further in STFC, Piramal said, “There are no such plans as of now.”
Piramal group, with presence in pharmaceutical, financial services and information management sectors, had consolidated revenues of over Rs 3,560 crore last fiscal. In the financial services space, it has a real estate focused PE fund – Indiareit – and a non-banking finance company (NBFC) focused on lending to real estate and education sector with a loan book of Rs 1,000 crore.
The company also makes structured investments in infrastructure projects and has recently struck deals with Hyderabad-based infrastructure company Navayuga Road Projects and renewable energy firm Green Infra.
Earlier reports had said that for the financial services vertical, Piramal was looking to build an asset size of Rs 15,000 crore in the next five years.
The deal between Piramal and TPG also indicates that the latter may have completely exited its investments in STFC, generating near seven times returns in as many years.
Newbridge India Investment II Ltd, a unit of TPG, had in 2006 acquired a 49% stake in unlisted group holding company Shriram Holding Madras Pvt Ltd (SHMPL), which currently holds 41.25% in STFC. When STFC was merged with SHMPL in December 2011, Newbridge got a 20.28% stake in the merged entity.
As per Bloomberg data, the (post-merger) acquisition cost of the 2006 deal for TPG worked out to Rs 112.75 per share.
In a bulk deal on the National Stock Exchange in February, Newbridge had sold 23.15 million STFC shares (or a 10.2% stake) to a clutch of institutional investors for Rs 1,656 crore. That deal is understood to have netted TPG a whopping 450-500% returns, or a cool Rs 1,350 crore in profit.
Shriram Transport, which logged revenues of Rs 7,014 crore and a profit after tax of Rs 1,463 crore last fiscal, had assets of over Rs 52,717 crore under management and is among India’s largest player in commercial vehicle finance with a niche presence in financing pre-owned and small truck owners.
The company has a network of 528 branches and service centres across India and is also one of the largest asset financing NBFCs in the country.
Godrej Prop readying Rs 700 crore rights issue
This story first appeared in DNA Money edition on Friday, May 10, 2013.
Godrej Properties is planning a Rs 700 crore rights issue to finance its existing and new projects across the country. While the pricing is yet to be decided, the company hopes to wrap up the issue by September. Pirojsha Godrej, managing director and CEO, Godrej Properties, said the board has approved the issue. “This issue will allow us to create necessary funding, thereby growing the portfolio very rapidly without requiring in any way to stretch our balance sheet,” he said. The company’s debt currently stands at a little under Rs 1,500 crore.
The company’s revenues in the January-March quarter of 2012-13 declined 16% to Rs 313.9 crore a year earlier. Operating profit slipped 1.56% on-year to Rs 100.4 crore though net profit grew 33.66% to Rs 53.2 crore. For the full 2012-13, revenues, bookings and net profit went up significantly by 28%, 71% and 41%, respectively, in comparison to fiscal 2012.
“Despite poor macro economic environment and relative underperformance of the real estate sector this year, our Ebitda increased 43%. In terms of bookings, we crossed $500 million in new sales,” said Godrej.
While the last fiscal saw the realtor pull off a total of 13 launches in six cities across the country, the management is confident of rolling out 15-20 new projects this fiscal. The new launches will include phases of existing projects.
Godrej said the company registered good traction in major target markets of NCR-Gurgaon (Summit), Mumbai (Platinum at Vikhroli) and Bangalore this fiscal. “At Vikhroli, we increased prices by around 40% year on year despite the market not being that strong. We sold about 400,000 sq ft during the year at E City Bangalore. Around 1 million sq ft of sales were made at the Gurgaon project in a single day,” said Godrej, who sees prices sustaining due to inflation and rising input costs for real estate companies.
Godrej Properties is planning a Rs 700 crore rights issue to finance its existing and new projects across the country. While the pricing is yet to be decided, the company hopes to wrap up the issue by September. Pirojsha Godrej, managing director and CEO, Godrej Properties, said the board has approved the issue. “This issue will allow us to create necessary funding, thereby growing the portfolio very rapidly without requiring in any way to stretch our balance sheet,” he said. The company’s debt currently stands at a little under Rs 1,500 crore.
The company’s revenues in the January-March quarter of 2012-13 declined 16% to Rs 313.9 crore a year earlier. Operating profit slipped 1.56% on-year to Rs 100.4 crore though net profit grew 33.66% to Rs 53.2 crore. For the full 2012-13, revenues, bookings and net profit went up significantly by 28%, 71% and 41%, respectively, in comparison to fiscal 2012.
“Despite poor macro economic environment and relative underperformance of the real estate sector this year, our Ebitda increased 43%. In terms of bookings, we crossed $500 million in new sales,” said Godrej.
While the last fiscal saw the realtor pull off a total of 13 launches in six cities across the country, the management is confident of rolling out 15-20 new projects this fiscal. The new launches will include phases of existing projects.
Godrej said the company registered good traction in major target markets of NCR-Gurgaon (Summit), Mumbai (Platinum at Vikhroli) and Bangalore this fiscal. “At Vikhroli, we increased prices by around 40% year on year despite the market not being that strong. We sold about 400,000 sq ft during the year at E City Bangalore. Around 1 million sq ft of sales were made at the Gurgaon project in a single day,” said Godrej, who sees prices sustaining due to inflation and rising input costs for real estate companies.
Subscribe to:
Posts (Atom)