MxMIndia

Category: NEWS

  • In recent weeks, the retail industry has been abuzz with speculation that the Future Group was in talks with India's richest man Mukesh Ambani to sell stake in its flagship Big Bazaar hypermarket network

    Kishore Biyani not to sell stake in Big Bazaar & Food Bazaar chains

    By Chaitali Chakravarty

     

    Retail magnate Kishore Biyani said that he is not in talks with anybody to sell stake in Big Bazaar and Food Bazaar chains because his Future Group has sorted out its debt crisis after three back-to-back deals in the past one month.

     

    “We are not in discussions with anybody. I don’t want to divest my core retail business now. I want to run it,” Mr Biyani told ET. “Our debt levels are very comfortable and divestment, if any, will only be in non-core assets,” the Future Group chief said.

     

    In recent weeks, the retail industry has been abuzz with speculation that the Future Group was in talks with India’s richest man Mukesh Ambani to sell stake in its flagship Big Bazaar hypermarket network, which contributes almost 65 per cent of revenues of Pantaloon Retail (India) Ltd, the listed entity of Future Group.

     

    Reliance Industries operates a nationwide network of retail chains under Reliance Retail and Mr Ambani sees this segment as one of the engines of future growth for the conglomerate.

     

    A Reliance Industries spokesman denied any negotiations with Biyani. “We deny that Reliance Industries has ever been in talks with Future Group or Mr Kishore Biyani for any stake sale,” he said.

     

    A person aware of developments in Future Group, however, said Reliance Retail and Future Group had explored the possibility of a partnership about three months ago. But the talks did not proceed because the AV Birla Group moved faster and agreed to buy Pantaloons department chain, helping Future Group improve its precarious financial situation.

     

    “At that time the priority was to bring money into the company and the Pantaloons deal addressed that issue,” the person said.

     

    The Future Group, which has been in an aggressive expansion mode, ran into a crisis with consolidated debt of Rs7,800 crore that weighed on its profitability. Pantaloon Retail has been spending more than Rs100 crore in interest over each of the past three quarters. This started to pinch as consumer spending slowed. That was when Mr Biyani started looking to sell assets to pare debt.

     

    Last month, the Future Group sold a majority stake in Pantaloons department chain to AV Birla Group’s Aditya Birla Nuvo for Rs1,600 crore that included Rs800 crore of debt transfer.

     

    Then, last week, the Future Group announced sale of its 53.67per cent stake in Future Capital Holdings to US-based private equity firm Warburg Pincus for Rs4,250 crore, which included Rs450 crore of cash payout and Rs3,800 crore of debt transfer. Pantaloon Retail also raised Rs 200 crore through a preferential share allotment last week.

     

    “In the past one month, Biyani has managed to reduce his debt by Rs 6,000 crore. Now, he is in no hurry to sell any of his core businesses,” the person close to Future Group said. A senior official of a rival retailer, however, said Mr Biyani will ultimately get a partner for his value chain. “The only question is if he will tie up with an Indian company or wait for foreign direct investment to be allowed in the sector so he can find an international partner,” the person said.

     

    Meanwhile, Mr Biyani plans to sell more non-core assets in a bid to make the Bombay Stock Exchange-listed Pantaloon Retail debt-free by March 2013.

     

    He plans to raise Rs1,650 crore by October by offloading shares in his insurance and stationery joint ventures, the consumer electronics chain and home furnishing network. This would include raising Rs1,000 crore by divesting stake in Future Generali insurance. This will help prune Pantaloon Retail’s standalone debt, which stood at about Rs5,500 crore at the end of March.

     

    The group also plans to shed 40 per cent stake in the electronics retailing business eZone when it merges it with Noida-based InTarvo Technologies, which specialises in providing technical support to large corporations and retailers. InTarvo could not be contacted for comment despite repeated attempts.

     

    Mr Biyani also plans to sell a minority stake in home furnishing and do-it-yourself chain Home Town network for about Rs 300 crore in the next two months.

     

    He said his group’s May deal to cede controlling stake in Pantaloons chain to AV Birla Group was a one-off transaction. The company will only sell minority stakes in any future deals in its core retailing business and will maintain majority stake in such ventures, he said.

     

    Mr Biyani added that he doesn’t want to touch Future Value Retail, which operates Big Bazaar and Food Bazaar, as the group’s debt situation can be controlled.

     

    The only way he wants to touch Big Bazaar is by undertaking some tweaking in the profitable 150-strong chain by introducing improved services and consumer-centric approaches, underscoring with a new tagline ‘Aapki Sewa Mein’ (or, ‘At Your Service’). Big Bazaar is changing its tagline months after it adopted ‘New India’s New Bazaar’.

     

    Source: The Economic Times
    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

  • I & B Minister lends a patient ear to industry stakeholders' issues with meeting the digitization sunset date of June 30 for Phase I; timelines to be discussed at the June 15 taskforce meet

    Decision on digitization deferred to June 15

    By A Correspondent

     

    In a closed door meeting between the Information and Broadcasting Ministry officials and industry stakeholders, I&B Minister Ms Ambika Soni is learnt to have given a patient hearing to the various concerns raised.

     

    With just 23 days to go from the notified sunset date of June 30 for Phase I of digitization of cable television, the industry stakeholders confessed to their lack of preparedness and shared individual concerns in great detail with the officials.

     

    MxMIndia has learned that the government made it clear that the purpose of the meeting was to take stock of the situation and not for an adjournment or a postponement. The government it seems wanted to hear the people who actually have to implement DAS.

     

    Sources tell MxMIndia that the Local Cable operators (LCOs) and the Multi System Operators (MSOs) complained about the lack of set-top boxes (STBs) and also informed the government officials that as of today only 20 percent installations (of STBs) have been completed. The LCOs also expressed disconcert with the prescribed revenue share and requested the government to revisit the matter. Broadcasters once again raised their concern over carriage fee. MxMIndia is told that all parties stated their respective concerns with none of them contradicting each other.

     

    While Ministry officials heard all the concerns voiced by industry representatives, there were no formal announcements made by the government on the timelines for digitization.

     

    The Ministry handed out forms to all parties present asking them to duly fill them out with details of the level of preparedness, issues and the time needed to achieve the task at hand. These will be studied by the Ministry and in the next task force meeting scheduled for June 15, there will be a comprehensive discussion on the timeline for Phase I.

     

    Sources tell MxMIndia that the industry was present in full attendance with all sections represented adequately. From the I & B Ministry, apart from the Minister, also present were, Uday Kumar Varma, Secretary, Rajiv Takru, Addl Secy and Supriya Sahu, Joint Secy (Broadband & Policy). Representing Telecom Regulatory Authority of India (TRAI) was Parameswaran N, Principal Advisor (Consumer Affairs/International relations/Broadcasting & Cable Services).

     

  • An exclusive platform which will honor singers and musicians in various categories who crafted the year's super hit numbers

    92.7 BIG FM announces BIG Tamil Melody Awards 2012

    By A Correspondent

     

    92.7 BIG FM recently announced the BIG Tamil Melody Awards 2012, a platform which will honour singers and musicians in various categories who crafted the year’s super hit numbers. Music directors Bharathwaj and James Vasanthan, along with singer Unnikrishnan will be the jury members for the BIG Tamil Melody Awards 2012.

     

    The Award lineup will have a total of 16 categories of awards. 15 popular categories will be nominated by the jury and thereafter decided by listeners through a multi-media voting campaign. The remaining award will be conferred by the honourable Jury directly.

     

    The radio station has put together a package called the ‘BIG Karaoke Station’ for its listeners who will nominate their musicians of the year not by voting, but by singing the year’s super hit songs.

     

    As an added incentive to its passionate listeners, 92.7 BIG FM has provided them an opportunity to sing along with the top singers and music directors at the BIG Karaoke Station, and the top 5 listeners, selected both on-air and on-ground, will get an opportunity to be mentored by the nominee musicians of the year for the music awards. The winner will sing along with the mentors at the BIG FM Studio.

     

    Renowned singer and actor SP Balasubramanian has been announced as the face of the Awards, which are part of the premier radio station’s national initiative across seven regional markets.

     

  • Wins the digital mandate for RC Cola & social media mandate for Zee TV's 'Phir Subah Hogi'

    Brandlogist wins two new mandates

    By A Correspondent

     

    Brandlogist, a boutique digital branding consultancy, has just won the digital mandate for RC Cola and social media mandate, including aspects such as social platforms, Bloggers program , social@mobile and influencers outreach, for Zee TV’s ‘Phir Subah Hogi’.

     

    For RC Cola the Indian market is literally a challenge with a far smaller market penetration, low awareness and smaller budget. They have decided to approach this challenge with an interesting perspective, taking digital as the primary driving platform and have chosen Brandlogist to help them strategize and execute this strategy.

     

    As Saurabh Parmar CEO, Brandlogist said: “That’s where we come in with an active engagement on the digital medium through which the communication extends to consumers across platforms and mediums.”

     

    Commenting on the reason for choosing Brandlogist, Mohit Khattar, Brand Head, Iceberg Foods Limited said: “It was the company’s strategy to build on a wider consumer base with the involvement of its audience and to create an experiential marketing environment by sharing the heritage and essence of the brand RC Cola.  We as a company were looking for young, creative, fresh and intelligent team who are among our target audience and would represent the sentiments and can draft the likes of the consumers. With Brandlogist we ascertained their passion for work, free flow of ideas and a sense of responsibility.”

     

    Phir Subah Hogi, Brandlogist’s second recent win is Zee’s new prime time show. Looking at the nature of the content, social media plays an important role to connect with people around the cause.

     

    Commenting on the two wins, Mr Parmar said: “It’s been 5 months but the idea of communication strategy which is new age yet not constrained by mediums is definitely having an impact. When we go to a client and say that it’s not about having x number of Facebook likes or people filing in a lead generation form without psycho-graphically analyzing that customer set or even getting a certain number of people to tweet your hashtag, but rather about doing something interesting, relevant enough so that they actually connect with you does raise a few eyebrows but has also got us the right accounts where clients have been perceptive enough.”

     

  • With internet users inIndiaat around 121 million, focus is now to create a solution for travellers to plan travel online

    Innovation is the key to enhance online travel & tourism industry

    By A Correspondent

     

    The online travel & tourism industry is set for unprecedented growth, provided payment and logistic issues are resolved. Speaking at the 4th IAMAI Travel & Tourism Summit, Himanshu Singh, Managing Director, Travelocity India & Chairman, Digital Commerce Committee, IAMAI, said: “The total travel market is around $800 billion and the online share is growing rapidly. Payment and logistics still pose a challenge and success parameter of business is about cracking these problems. These problems that we are facing today have to be countered by all players of the industry together, and this will help the market grow exponentially.”

     

    As per IAMAI ‘Internet Economy Watch’ data, e-ticketing continues to grow with irctc.com recording 5.56 million bookings in April 2012 as compared to 2.26 million bookings in April 2011. Airlines recorded 1.92 million bookings in April 2012, as compared to 1.01 million bookings in April 2011. The data for online travel is based on absolute numbers captured from nine websites.

     

    Speakers at the summit were united in their view that while, at present, group travel is the key to growth, the future will be more for the individual traveller. Sharing her thoughts, Swati Moha, Vice Pesident – Programming & Operations, Fox International, said: “While group travel is in vogue, there is a huge spurt in customized individual travel interests. People are looking for less explored destinations than before and with internet penetration on the rise, the industry is set for robust growth.”

     

    Globally travel & tourism market is pegged at about US$ 800 billion but the online market share has not reached its optimal point. With internet users inIndiaat around 121 million, focus is now to create a solution for travellers to plan travel online. “Innovative marketing strategy coupled with value additions will sway travellers to book hotels and tickets online”, said Devdutta Banerjee, Regional Director – Revenue Management, India, Bangladesh and Nepal, Starwood Hotels & Resorts. He added: “Online is the platform for growth. Integration of logistics and services is necessary to fuel further growth.”

     

  • This is the first BBC Knowledge campaign targeted at parents; the campaign will run across mainstream dailies, magazines, outdoors and digital

    BBC Knowledge launches brand campaign that speaks directly to parents

    By A Correspondent

     

    BBC Knowledge has launched a new campaign -‘There’s no telling what knowledge can do’ – directed at parents. The crux of the campaign hinges on the fact that the magazine – with its focus on science, history and nature – gives the child a head-start in today’s competitive world. It has been timed with the reopening of schools in major metros.

     

    This is the first BBC Knowledge campaign targeted at parents; the campaign will run across mainstream dailies, magazines, outdoors and digital. There will be dedicated parent-child contests run by the magazine for this campaign.

     

    “The campaign, which is targeted at parents, reminds them that knowledge is the only edge they can give their kids. And that it’s not an option, but a prerequisite today, when it has become as important to outdo the competition as it has to outdo yourself ,” said Ayesha Bedi, Creative Group Head, DDB Mudra Group.

     

    Soela Joshi, brand publisher, BBC Knowledge said: “Marketing to parents is much more insight-driven. Parents as central role models have the responsibility to bring knowledge into their children’s life. By targeting parents, we are opening doors for their kids too. ”

     

  • In his new role as National Corporate Sales Head, all non-station market sales teams including Mumbai, South,Delhiand government will report to him with immediate effect while he will continue reporting to the CEO, Harrish M Bhatia

    94.3 MY FM elevates Rahul Namjoshi as National Corporate Sales Head

    By A Correspondent

     

    94.3 MY FM has elevated Rahul Namjoshi as National Corporate Sales Head. Mr Namjoshi, who has been associated with MY FM since 2007 as the Regional Head for Gujarat, moved to take the role of Business Head for North, East and South zones last financial year where he has played a critical role in transforming the Delhi region within a short span of time.

     

    In his new role as National Corporate Sales Head, all non-station market sales teams including Mumbai, South,Delhiand government will report to him with immediate effect while he will continue reporting to the CEO, Harrish M Bhatia.

     

    Commenting on the development Mr Bhatia said: “MY FM has created a culture that acknowledges exceptional performers. We are pleased to promote Rahul as the National Corporate Sales Head for 94.3 MY FM. We are sure that with his knowledge of Radio and the brand, Rahul will take MY FM to newer heights, making a positive contribution to the top line of the company.”

     

    Continuing with the restructuring exercise, Harold Paul and Ambika Singh have been elevated to the Station Head level at MY FM’s key station – Ahmedabad. They will look after Corporate Sales and Retail Sales respectively.

     

    Before joining 94.3 MY FM, Mr Namjoshi was leading Reliance Industries Ltd – Textile division as Deputy General Manager.

     

  • Invites readers to vote for their favourite travel experiences and win luxury holiday stays

    Conde Nast Traveller India announces Readers’ Travel Awards 2012

    By A Correspondent

     

    Conde Nast Traveller is inviting its readers to vote for their most memorable and treasured travel experiences by participating in the annual Conde Nast Traveller Readers’ Travel Awards 2012, recognized internationally as a benchmark for excellence in the travel and tourism industry.

     

    Readers can vote for their favourite holiday destinations and travel experiences by filling in the Readers’ Travel Awards questionnaire available in the Conde Nast Traveller June-July 2012 issue or by logging onto www.cntraveller.in. The award winning destinations, hotels, airlines amongst other categories will be announced at an awards ceremony later in the year.

     

    Since their introduction in India last year, Conde Nast Traveller Readers’ Travel Awards have been recognized as the most prestigious travel awards in India.

     

    Divia Thani Daswani, Editor, Conde Nast Traveller India said: “We were overwhelmed by the response the awards received in their first edition in India. The Conde Nast Traveller Readers’ Travel Awards are widely acknowledged as the most prestigious awards in the travel industry, because they are voted for by our discerning readers, who understand, appreciate and ultimately consume luxury travel products and services. We look forward to an even greater response this year, given the increased circulation and reach of the magazine, and the growing appetite for luxury travel.”

     

    Conde Nast Traveller India readers have the opportunity to vote across 22 categories for their favourite destinations, hotels, airlines, spas, airports and more.

     

    Talking about the success of Conde Nast Traveller Readers’ Travel Awards in India, Shri Subodh Kant Sahay, Honourable Minister of Tourism, Government of India said: “Now is the time to properly market India’s tourist destinations and achieve our vision to double the number of tourists to India. Conde Nast Traveller has contributed extensively to the Indian tourism industry since its arrival in India and we believe that the magazine will offer a significant boost to our initiatives thanks to its circulation and credentials – which are tremendous, no doubt.”

     

  • Ms Sharma will be the face of all brand campaigns related to the TVS Scooty brand

    Anushka Sharma to endorse TVS Scooty

    By A Correspondent

     

    TVS Motor Company announced that it has signed on actor Anushka Sharma as the brand ambassador for its TVS Scooty range. Ms Sharma will be the face of all brand campaigns related to the TVS Scooty brand.

     

    TVS Scooty has been one of the most exciting two-wheeler brands for young women. This association with Anushka Sharma only strengthens the brands commitment to its youth target audience and reinforces its positioning.

     

    Commenting on the development, Mr H S Goindi, President Marketing, TVS Motor Company said: “Anushka Sharma was an immediate choice for the TVS Scooty brand. She is well known for being spunky with her distinctive style and is an icon for young girls inIndia. She is seen by young women as one who is living her goals along with being vivacious, independent and successful. We are confident that this association will further enhance the popular TVS Scooty Brand. ”

     

    For Ms Sharma, the association with TVS Scooty dates back to 2005: “It’s almost like ‘homecoming’ for me. As a young woman, I know how important independence and mobility is to me. TVS Scooty has always understood young women ofIndiaand it feels great that I now have an opportunity to be a part of the rich legacy of a brand such as TVS Scooty. It is a breakthrough attitude and style statement that is relevant to today’s young women.”

     

    TVS Scooty has a history of other successful associations with celebrities.

     

  • Leading independent digital marketing agency Webchutney announces key movements within the organization to consolidate diverse client portfolio and propel growth

    Growth in mind, Webchutney rejigs leadership

    By A Correspondent

     

    India’s leading digital marketing agency Webchutney has announced key movements within executive leadership across New Delhi and Mumbai. The move signifies a clear mandate to accelerate growth by forging stronger ties with partners and clients, while streamlining vertical units and fortifying operational efficiency.

     

    Ranked India’s number one digital agency in 2008, 2009 & 2011, Webchutney was co-founded in 1999 by Chief Executive Officer Sidharth Rao, and National Creative Director Sudesh Samaria in New Delhi. The agency has grown to over 200 people across New Delhi, Mumbai and Bangalore with a diverse client portfolio ranging from startups to Fortune 50 companies.

     

    Speaking on the reorganization, Sidharth Rao, CEO, Webchutney said: “The movements reflect our commitment to building internal strength through collaborative growth. The new, dynamic leadership has a proven track record with demonstrated results, valuable experience and seamless operational control achieved consistently. They are strategically positioned to lead the new wave of innovation at a crucial time in the evolution of digital experiences and engagement in India. This also gives us the opportunity to explore new business avenues and evaluate meaningful partnerships that will guide the future of our organization and the digital industry at large.”

     

    Rahul Nanda will don a new role as Partner and President – Mobile Initiatives from his previous role as Chief Operating Officer. The new autonomous division, with focus on product initiatives in the mobile and tablet space is actively building interactive apps and games capabilities. Mr Nanda’s strong credentials backed by 17 years of experience in the digital domain will provide clear direction in cracking the dynamic role agencies and marketers play in monetizing this platform.

     

    Nishi Kant is now Chief Operating Officer – West & South Region from Executive Creative Director at Webchutney.  His outstanding expertise in crafting award winning, interactive digital experiences along with winning digital mandates and building creative portfolios of prestigious Fortune 50 companies like Unilever, Proctor and Gamble among others has received tremendous recognition from national & international quarters.

     

    Saket Vaidya steps up as Chief Operating Officer – North Region from Vice President, Regional Operations. With close to 7 years of technology experience, in his new role, he will broaden the range of specialist services offered by the agency while driving and influencing next-generation digital marketing communication.

     

    Tarana Mehta is the new Chief Strategy Officer at Webchutney from Vice President – Strategy and Business Development. Armed with over 10 years of experience in the advertising /digital industry, she has a proven track record in business development, operational leadership and strategic consulting with a plethora of brands  including HSBC, L’Oreal, Evian, La Roche Posay, Coca-Cola, Kraft, Titan, Mastercard, Barclays & Marico across the Indian and North American market.

     

    Meghana Bhat will move up as Executive Creative Director from Creative Director at Webchutney. A copywriter by skill, & creative strategist by choice, she has helped brands understand and make optimum use of digital media to become more relevant and entertaining to their audience.

     

  • MEC India, a leading media agency, (www.mecglobal.com), announced the appointment of Ritesh Singh as their new digital leader

    MEC India appoints Ritesh Singh as head of Digital

    By A Correspondent

     

    MEC India, a leading media agency, has announced the appointment of Ritesh Singh as their new digital leader. Prior to this, Mr Singh was with Starcom MediaVest Group (SMG) as the Business Head - India, SMG Digital.

     

    Mr Singh joins as National Director, MEC Interaction and will report to T Gangadhar, Managing Director India and Tushar Vyas, Managing Partner, GroupM Interactions -South Asia.

     

    Speaking about the appointment, Tushar Vyas said: “Ritesh comes to MEC with unrivalled pedigree in managing the digital marketing services business and has the right blend of diversified media experience. We are delighted to have Ritesh lead MEC’s digital agenda and help deliver integrated communications planning for our brands.”

     

    Mr Singh has over 13 years of experience handling activation and digital. In his previous role, he led the conception and deployment of digital strategy. His experience spans an array of clients – Samsung, Aircel, Western Union, General Motors, SAB Miller, Himalaya – to name a few.

     

    Mr Singh shared: “I am excited to join MEC and thrilled to have an opportunity to work for some of the best brands in the country. In these exciting times for digital media, I look forward to work with MEC’s talented digital team to create new benchmarks.”

     

    Praval Singh – Co-founder, Media Redefined said: “Ritesh is a seasoned digital media planner. Not just for media buying but his insights on various online-offline engagement and innovative campaigns have been valuable while we worked together for some of the leading brands in the country. I am quite hopeful that Ritesh on board with his rich experience and attitude of achieving excellence would help MEC soar new heights.”

     

    MEC Interaction topped the digital category at Goafest 2012 with the much acclaimed Reliance Ego-Search campaign. This campaign is also one of MEC’s entries to Cannes this year.

     

  • Happy's Design Cell shall focus on offering services in the space of identity creation / Branding / Packaging and some amount of retail / environment design

    Happy launches Design Cell

    By A Correspondent

     

    Bangalore based boutique agency Happy just announced the launch of its Design Cell. This comes post the announcement of their Mumbai operations in January earlier this year.

     

    “We have been offering design services to many from the day we started. We’ve also been fortunate to win a few awards for our work in Design. We took our time to build a body of work and crystallize on a strategic design process that is our own. The design cell shall work as an independent unit with its own business targets and talent pool. We see a huge opportunity in this space and are confident we can inject new energy and excitement in this space” said Kartik Iyer, CEO, Happy.

     

    Happy’s Design Cell shall focus on offering services in the space of identity creation / Branding / Packaging and some amount of retail / environment design. It will be led by Shilpa Colluru in Bangalore and Pallavi Nayak in Mumbai. While business development will driven from these two offices, the objective is to serve clients from across the country with the creative delivery happening out ofBangalore.

     

    “Having a specialized design cell only seemed like a natural progression for us as it allows us to do a lot more for our clients. It also makes more sense for companies and brands that have been newly formed and are preparing for a launch,” said Praveen Das, CCO, Happy.

     

    “Design is more than just making things look pretty. There is science behind effective design.India is at a stage where her people have begun to develop a strong aesthetic sense and appreciation for design. We believe that this will play a strong ancillary role in shaping the way Indian businesses look at branding and design as a key to drive growth,” added Mr Iyer.

     

    Happy’s work in design has been well noticed and appreciated in the past. The Lee Never wasted Bag went on to win many awards including a Cannes nomination. The Skinny jeans packaging they created for Lee also won a D&Ad nomination. Happy was also behind the new logo of online fashion retailer Myntra.com. The agency also created the logo and worked on the store experience of fashion retailer, Basics Life.

     

    Happy’s inner wear packaging design for fashion brand Basics 029 has also been appreciated and featured on most leading design websites in the world. Happy also recently won 2 bronzes in design at Goafest 2012 – one for direct mail and the other for environmental graphics.