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Tag: Tata group

  • The three firms in the running for Tata Group's global advertising pitch

    Y&R, JWT & TBWA in running for Tata’s global creative pitch

    By Pritha Mitra Dasgupta

     

    Two WPP agencies, Y&R and J Walter Thompson, and Omnicom shop TBWA Worldwide are in the final rounds of the first ever Tata Group global advertising pitch, currently underway. These three agencies will make their final presentations next week to the Tata team which is being led by Mukund Rajan, Brand Custodian and Member – Group Executive Council, Tata Sons. Atul Agrawal, vice-president, Group Corporate Affairs & Media, Tata Services is also a key decision-maker, said two senior officials familiar with the pitch process.

     

    Two other agencies in the fray – Interpublic Group’s FCB Ulka and McCann WorldGroup – were eliminated after preliminary rounds of presentations. In response to a mail sent by ET, a Tata Sons spokesperson declined to comment, stating, “This is internal to the company.” However, a senior Tata official, on condition of anonymity, confirmed that both WPP and Omnicom have reached the final round of the pitch process.

     

    The agencies are flying in global pinch hitters for this business, estimated at Rs 100-200 crore. “Teams from JWT New York and Y&R New York are a part of the pitch process,” said a source. Several senior WPP India officials also said that Martin Sorrell, CEO, WPP made a one-day visit to India to meet key Tata officials when the pitch began in the first week of April. When we contacted Sorrell to comment on the teams that will represent JWT and Y&R in the final round of presentations, the brief given to the agencies by Tata Group and if he at all came to India when the pitch process started. But he declined to comment and he said, “Obviously I couldn’t possibly answer any of those questions”.

     

    An email written to Tom Carroll, president and CEO TBWA Worldwide, did not elicit a response. Tata Group had given the agencies a formal brief, for an advertising mandate that would cover four key international markets including the US, the UK, Africa and China.

     

    The mandate is to create a global corporate campaign for the Tata Group as the company is looking to reposition itself globally. “In each market the company’s positioning is different. For instance, it is the largest employer in the manufacturing sector in the United Kingdom, which is very different from their positioning in US or even China. So they are waiting to hear from the agencies how best they can build their brands in these highly competitive markets”, said a senior official from one of the agencies still in the fray.

     

    Source:The Economic Times

    Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • The group will also soon unfurl a major corporate campaign to build awareness among investors, consumers and stakeholders on 'Brand Tata' in its major overseas markets.

    Tata group drafts new rules for royalty & ethics

    By Kala Vijayaraghavan & Satish John

     

    The $97-billion Tata Group has started work on an overhaul of its Brand Equity and Business Promotion (BEBP) agreement, an omnibus document that governs, among other things, which group companies use the Tata name and how, and also how much royalty they pay for it.

     

    The agreement, drafted in 1996 and never revisited since, is now being redrawn to reflect the ‘more universal’ nature of its business as 63% of revenues now accrue from overseas. This includes multibillion dollar businesses Jaguar Land Rover, Corus Group and soda ash maker General Chemicals.

     

    “A number of brands in the Tata fold don’t carry the Tata name and, therefore, it is critical that more investors, consumers and stakeholders in international markets are aware of the history and heritage of the group,” said Mukund Rajan, Tata Group’s brand custodian and chief ethics officer, confirming the revamp plan. Asked if this would entail global group companies such as JLR and Corus also paying royalty, Rajan declined comment saying such decisions are yet to be made.

     

    Group firms that use the Tata name directly pay a royalty of 0.25% of respective revenues. Companies such as Titan that don’t use the Tata name directly pay less.

     

    Streamline use of Tata brand

    “We have to streamline the way our companies use the Tata brand,” another official involved in the revamp of the BEBP said. “In the past, we have allowed Tata companies to use the Tata brand and other companies have not. Do we have sufficient clarity in our own minds on how we want to build the brand? It is still work in progress.”

     

    Sources say that top group officials feel the international visibility of the Tata brand is not up to the mark.

     

    The group will also soon unfurl a major corporate campaign to build awareness among investors, consumers and stakeholders on ‘Brand Tata’ in its major overseas markets.

     

    “In some markets, Tata is known as a software company while in some markets as an automobile maker. Our last big brand campaign was done in 2004 and therefore it is critical to ensure that key stakeholders and influencers are aware of our heritage and legacy,” Rajan added. He is also the chairman of the Tata Council for Community Initiatives.

     

    The Tata Code of Conduct, a part of the BEBP agreement, is also being reworked to make it more relevant in “certain jurisdictions” outside India. “We have to see whether it is potentially conflicting with local regulatory requirements.

     

    We want a code which resonates with regulations in different geographies,” the official added. Tata Sons, the holding company of the group, owns the Tata brand and the Tata trademark registered in India and several other countries. Individual companies have signed the BEBP with Tata Sons.

     

    Source:The Economic Times

    Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • Cyrus Mistry spent much of his first year as head of the Tata empire creating a fresh foundation and now plans to fix what isn't working

    Cyrus Mistry: Slow and Steady in Year #1

     

    By Suman Layak

     

    Signals from Cyrus

    Ok guys, it’s time for business: Mistry needs a few of those glamorous multi-billion acquisitions to deliver. Takes the call to abort Indian Hotels’ much-attempted bid for Orient Express.

    Wings for aviation: It was Ratan Tata’s dream, but it was Mistry who was at the forefront of the joint ventures with AirAsia and Singapore Airlines (with Tata’s support).

    Find some friends: Mistry has some 25 years ahead of him as chairman and needs people to grow old with him in the office. Much of the first year was spent in building his A team.

    Manage retirements: Tata Steel managing director HM Nerurkar retired in October. Choosing a successor in TV Narendran was one of Mistry’s key decisions this year.

    Get more women on board: Tata Sons is still a gentlemen’s club. But Mistry is signalling a change in attitude by inducting women on the Tata boards.

    Playing Mr Fix-it: Has identified the problem companies – Tata Motors, Tata Steel Europe, Tata Power – and their problem areas.

    Not yet ready for banking: Took the strategic call to withdraw Tata Sons’ application for a banking licence – for now.

     

     

    The Aviator’s Busy Flight Path

    For Ratan Tata, retirement may not necessarily have translated into less work and for sure has resulted in more than usual travel. A person familiar with his schedule indicates that Tata has been travelling a lot more since he retired. For starters, Tata serves on the Prime Minister’s Council on Trade and Industry, which means he continues to advise the top political leadership of the country.

     

    That apart he is also the president of the Court of the Indian Institute of Science and chairman of the Council of Management of the Tata Institute of Fundamental Research. He also serves on the board of trustees of Cornell University and the University of Southern California. Tata had graduated as a trained architect from Cornell. However, retiring from Tata Group companies - he is now chairman emeritus — is not the end of the corporate innings. For example, even now he continues to serve on the board of American aluminium major Alcoa. He is also on the international advisory boards of Mitsubishi Corporation, JP Morgan Chase, Rolls-Royce, Temasek Holdings and the Monetary Authority of Singapore.

     

    In September Tata also joined the board of trustees of Carnegie Endowment for International Peace. This trust is considered a premier American think tank. However, at the same time Tata has kept himself available to the Tata Group and in the beginning he had committed himself to fortnightly lunch meetings with Cyrus Mistry. Apart from that he is closely involved with the aviation joint ventures of the Tata Group, one with AirAsia and the other with Singapore Airlines. Tata himself had piloted a flight with the AirAsia team on board to Delhi.

     

    It is likely that some of the Tata companies may still consult him for his expertise, in specific areas like automobiles and aviation. He also heads the Tata Trusts which control a two-thirds majority of shareholding at Tata Sons and this must be taking up a lot of his time. He had also registered his own company RNT Associates with RK Krishna Kumar. But not much else is known about its activities. Not yet.

     

    Back in the ’70s, the families of construction magnate Pallonji Mistry and well-known legal luminary Iqbal Chagla were neighbours in Cuffe Parade. A happy consequence was that in 1992 Pallonji’s younger son Cyrus married Chagla’s daughter Rohiqa. On the wedding day, the father of the bride, Chagla raised a toast, starting with these words: “I was determined to dislike anyone who decided to marry my daughter.”

     

    Then he added a truism: “However, once you meet Cyrus, it is impossible to dislike him.” It still holds two decades later; everybody seems to like the 45-year-old Cyrus Mistry. Mr Mistry took over as chairman of Tata Sons on December 28, 2012. Since then, he has made all the right moves. “He has not taken any giant leaps, neither has he shaken the foundations of the group,” says Harsh Goenka, industrialist and chairman of RPG Enterprises.

     

    As Mr Mistry begins his 12th month as chairman of India’s largest conglomerate, in which his family led by father Pallonji Mistry owns an 18.5% stake, it’s time for him and his core team to prepare a rough and ready blueprint for the second year. That plan may call for a few larger leaps, and may indeed shake some parts of the foundation.

     

    Making the multibillion acquisition of Corus (now Tata Steel Europe) viable, for instance is one of them. Downsizing the business by mothballing some of its capacities, reckon analysts, may be the way to go. Back home Tata Motors – excluding the money-spinning Jaguar Land Rover ( JLR) – needs a refreshed portfolio to find its way back amongst India’s top 5 automakers. And the power, telecom and hospitality businesses too are in need of an overhaul.

     

    It’s a daunting task; more so for a man who’s still coming to grips with a 92-company group across 28 diverse sectors, even as it strategizes to enter newer businesses, like aviation. Ashok Basu, former bureaucrat and an independent director on the board of Tata Power, says: “I think he has the most formidable job in the country. But this mantle sits very lightly on his shoulders.”

     

    “Luckily, his health has held up. He has taken on a punishing schedule, whirlwind travel across the world, day trips to the Gulf countries and stuff like that,” says a person who knows Mr Mistry well. And Mr Goenka adds: “He doesn’t look stressed. But I asked him about his work-life balance and he admitted that’s gone for a six.”

     

    First, a Team

    One of Mr Mistry’s immediate priorities after taking over at the helm was to build a team of people who will, like him, be around for some time. Although Mr Mistry was appointed as executive deputychairman of the group in 2011 for five years, and was elevated in 2012, it is likely that Mr Mistry will have this job for more than a quarter of a century.

     

    Before retiring, predecessor Ratan Tata – who had the job for 21 years – had left a clean slate for Mr Mistry, even lowering the retiring age for non-executive directors, to ensure that the old guard goes away in two to three years. Tata’s first few years at the helm were spent consolidating his own position as the undisputed leader of the group and pushing out the veterans. He did not want such distractions for Mr Mistry (after all, Mr Tata had plenty of them when he took over and had to spend at least six of his initial years taking on – successfully – the group’s satraps).

     

    In Madhusudan Kannan, 39, Mr Mistry found his head of business development. Mr Kannan was the first member of team Mistry and joined the group in May 2012, seven months before Mr Mistry finally took over the reins. Mr Kannan is considered closest to Mr Mistry today. Mukund Rajan, 45 – younger brother of Reserve Bank governor Raghuram Rajan – was moved in from Tata Capital as custodian of brands and chief spokesperson as well as chief ethics officer. Mistry also brought in academic Nirmalya Kumar from the London School of Business to help with strategizing and NS Rajan from Ernst & Young as head of human resources. “In many ways it is like Rahul Gandhi’s team” says one uncharitable onlooker from corporate India.

     

    “It has more theoreticians than business managers,” he says. That may be unfair to both Mr Mistry and Mr Gandhi, but one cannot deny that Tata’s own lieutenants were either seasoned veterans from within the group (Syamal Gupta, NA Soonawala, Ishaat Hussain, to name three) or from other large companies (like R Gopalakrishnan from Unilever’s Indian subsidiary). Mistry has chosen his own horses, for surely he has to run on a different course.

     

    The Tata group did not participate in this feature. Also setting himself apart from the Ratan Tata-era is how Mr Mistry has sought to induct more women on the boards of Tata Sons. Vishakha Mulye, managing director of ICICI Venture, was the first woman inducted by Mr Mistry in February. She joined the board of Tata Power.

     

    He followed this up by bringing in Falguni Nayar on Tata Motors’ board and Ireena Vittal, a former McKinsey partner, on the boards of Indian Hotels and Tata Global Beverages (see Diversity Drive). With Vittal, Tata Global now has three women on its board (the other two being Mallika Srinivasan and Ranjana Kumar).</p>

     

    Ms Nayar, who now runs her own e-commerce venture Nykaa.com and a former managing director at Kotak Investment Banking is married to private equity fund KKR’s India chief Sanjay. Mr Mistry  asked Falguni to drop by for an interview and spent considerable time discussing her current venture before requesting her to join the Tata Motors board and bring her I-banking experience to the table.

     

    In May 2012, before he became Tata Sons chairman, Mr Mistry had joined the board of Tata Steel along with another lady, Mallika Srinivasan, chairman and CEO of tractormaker TAFE.

     

    However, these moves are only a beginning in creating gender-diversity at the house of Tatas, whose boards have traditionally been male bastions; for instance, the jewel in the Tata’s crown, TCS, has an all-male board; and even the Mr Mistry-created four-member general executive council is all male.

     

    There was one more quick response by Mr Mistry that pleasantly surprised many people. When a former executive of Tata Steel committed suicide and there were allegations of harassment by former colleagues, a committee was immediately set up with executive and non-executive directors of group companies to probe the allegations

     

    Plumbing the Numbers

    The Tata group today is virtually basking in the glory of a single outperformer – TCS, which accounts for roughly 60% of market value of all listed Tata entities and 80% of profits. To that extent, TCS managing director N Chandrasekaran, 50, stands tall – some observers say nearly as tall as Mr Mistry -in the top tier of leadership in Bombay House, the headquarters of the Tata group.

     

    Tata Sons owns almost 74% of TCS; and since Mr Mistry took over in end-2012, TCS’s market capitalisation has gone up by 58% adding Rs 1.4 lakh crore to the group’s market combined capitalization. The other clear outperformer is JLR, the $2.3-billion acquisition that more than makes up for Tata Motors’ dismal show domestically.

     

    JLR’s revenues in 2012-13 were 2.5 times that of the local operations, profits stood at Rs 10,406 crore as against Tata Motors’ domestic profit of Rs 302 crore, and, for good measure, the UK operation headed by Ralf Speth paid Tata Motors Rs 1,420 crore in dividend in June. Together Tata Motors and TCS account for roughly 80% of the group’s combined market value. The rest of the 26 listed group companies taken together have actually shrunk in combined market capitalization.

     

    The Indian operations of Tata Motors and European operations of Tata Steel may be the larger problems, but Mistry has more fires to douse. Mr Basu, for example, feels the biggest problem is at Tata Power. The company has posted a loss of Rs 39 crore for the first half of 2013-14 after a loss of Rs 85 crore for 2012-13.

     

    “Tata Power is probably his greatest headache – a problem created for no fault of the company. Take Mundra ultra mega power plant, for instance, which is suffering because the price of Indonesian coal has suddenly shot up and the state government cannot buy power at this price.”

     

    Then there is Indian Hotels, which was in the red to the tune of Rs 452 crore for the first half of 2013-14 on revenues of Rs 1,804 crore. The loss in this half year has exceeded the loss of Rs 430.24 crore of the entire previous year. The Tata Group is not a six-course meal but more like a tasting menu and there’s a lot more on Mr Mistry’s plate. The telecom business needs some decisions – especially as Tata Sons may need to buy back the 26% stake of Japanese partner DoCoMo in March 2014.

     

    Vatican Redux

    Clearly, taking charge of an illustrious company incorporated back in 1917 is not easy. In many ways Tata Sons reminds one of the Vatican. If you go through its archives and treasures, you come up with surprises. Like for instance, at Tata Sons, the equity capital with voting rights adds up to only Rs 40.41 crore.

     

    However, there are preference shares without voting rights that account for 100 times the amount at Rs 4,148 crore. These attract dividends at a fixed rate of 7.5% and the subscribers to the preference shares are mostly directors of the company and former directors and sometimes even unrelated professionals. In May 2013, Cyrus Mistry subscribed to preference shares worth Rs 1 crore (10,000 shares). R Gopalakrishnan, non-executive director invested Rs 6 crore in preference shares of Tata Sons in June 2013.

     

    In July Ratan Tata acquired Rs 8 crore worth of preference shares while NA Soonawala (also a former director) picked up Rs 1.5 crore worth of preference shares in July. Let us take the analogy of the Vatican of this day a little forward. The Catholic Christian church has a new Pope today, but the old Pope is not dead – and in fact is living in the vicinity. Mr Mistry heads Tata Sons, but Mr Tata is not very far away. He is available – as he was in the run-up to the aviation joint ventures with AirAsia and Singapore Airlines.

     

    Also, don’t forget that Mr Tata, now chairman emeritus, heads the Tata trusts that control around 65% of the equity shares of Tata Sons and by virtue of that holding controls the group while remaining in the background. Mr Mistry may well be the proverbial chip off the old block. Mr Basu says that while he brings in “youthful energy” to meetings he is very much similar to Tata in his manner, listening carefully and giving his opinion in the end. He has, for instance, suggested strong belt-tightening measures for the group and has also suggested that Tata Power seek a global footprint for itself.

     

    Nayar adds: “It seems right now he is listening and absorbing. I find Mistry to be very open and inclusive. He is also a very good listener and carefully evaluates everything before taking decisions. He also has a vision which he explains.” That is what Tata was known to do. And Mulye points to other similarities with Tata: “He has a unique capability in combining breadth of vision at one end and granularity of detail at the other. The other big quality he has is his sense of humility.” It would then appear that Mr Mistry has moulded himself in the cast of Tata, what with both of them evidently also sharing an aviation dream.

     

    A former senior executive at one of the Tata companies who did not want to be quoted says that the Tata influence on the group is still very strong – along with the influence of RK Krishna Kumar who retired in July 2013. Many of the CEOs of today are former executive assistants of the two senior pros, both of whom are trustees on the Tata Trusts (Mukund Rajan in the GEC and N Srinath, MD, Tata Teleservices aided Ratan Tata, while Avani Saglani Davda, CEO, Tata Starbucks and Govind Sankarnarayanan, CFO, Tata Capital were EAs to RK Krishna Kumar).

     

    But herein may lie the rub, point out analysts. The tough decisions that await Mr Mistry may be construed as going against Mr Tata’s legacy. For instance, what’s the future for the ultra low-cost car, the Nano, which was Mr Tata’s dream (although a few days ago he did clarify that his ambition was not to build a ‘cheap’ car but one that would be a logical step up for the country’s millions of twowheeler riders)? Similarly, the options for Tata Steel Europe – an acquisition that a section of analysts believe was overpriced but which Tata believes had to be made – are grim, with some analysts advocating sales of substantial parts of the business, if not all of it.

     

    Mr Mistry and Mr Tata have been on the same page – even before the former took charge as chairman. For instance, Mr Mistry bought a Nano as soon as it was launched, and apparently said: “It is a damn good car.” The question, of course, is for how long can Mr Mistry be on that same page. At some point he will have to differentiate himself in style and substance from Tata in key strategic decision-making. Mr Mistry has shown he is capable of those tough decisions.

     

    The $1.6-billion write-down of  Corus’ goodwill on Tata Steel books earlier this year – that contributed in a big way to the losses – the recent withdrawal from the race for a banking licence and the recent call to abort Indian Hotels’ bid for Orient Express are three instances. Expect a few more in the second year which, for Cyrus Mistry, will be more important than his first.

     

    Source:The Economic Times

    Copyright © 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • The outlet will make use of UK firm Tesco's retail expertise and back-end support

    Tesco gets closer to propah entry as Tata opens ‘Star Daily’ neighbourhood convenience store in Pune

    By Sagar Malviya

     

    Barely a week after the world’s top retailer Walmart ended its association with Bharti Group, its British rival Tesco has moved a step closer to entering the $450-billion Indian retail market with the Tatas launching a neighbourhood convenience store format modelled on Tesco Express.

     

    Tesco Plc, the world’s third largest retailer, has a partnership with Tata Group’s Trent under which it provides back-end support and retail expertise to the Indian conglomerate’s Star Bazaar hypermarkets.

     

    Tesco Hindustan Wholesaling, the Indian unit of the British retailer, supplies merchandise including some of its own labels, to 15-odd Star Bazaar outlets, sized anywhere between 40,000 sq ft and 80,000 sq ft and selling food and grocery to apparel to consumer durables.

     

    The new format, Star Daily, is completely different. The first Star Daily outlet, opened in Pune last week, is just about 1,800 sq ft in size and stocks mainly fresh foods, groceries and essential items, a person aware of the store launch said. “Similar to a kirana store, Star Daily is kept open almost 15 hours starting at seven in the morning,” the person added.

     

    Both Trent Hypermarket and Tesco did not respond to an email query. Globally, corner shops — such as 7-Eleven in Japan, Taiwan, Thailand and Singapore, Lawson in Japan and Oxxo in Mexico — are among the largest retailers in their respective markets, reflecting the growing business of small outlets in several countries despite the presence of international supermarket and hypermarket chains. Even Tesco runs more than 1,500 convenience stores averaging 2,200 sq ft in small shopping precincts in residential areas and countryside in the UK.

     

    In India, ubiquitous kiranawallahs generate more than 90 per cent sales of consumer products industry.

     

    Analysts say high sales volume will be the key to Trent’s success in the convenience store space. “The newer format can help them (Tatas) penetrate better catchment areas, but volume needs to be maintained to compensate for the higher overhead costs including real estate,” Devangshu Dutta, chief executive at retail consultancy Third Eyesight, said.

     

    So far, Trent Hypermarket has been relatively conservative in its retail expansion despite rivals adding hundreds of stores each year. In fact, it did not open a single Star Bazaar store last financial year, but managed a 21 per cent increase in total revenue to Rs 801 crore.

     

    It reported loss of Rs 72 crore. There are speculations in the market that the Tatas will take the acquisition route to expand its retail business. “There can be a good acquisition opportunity for Tata in the form of Bharti Easy Day, which has a similar format, if they decide to sell it off,” an industry veteran said on condition of anonymity.

     

    Interestingly, Trent is entering the neighbourhood grocery market after some of its rivals have already burnt their hands in this space. Retailers including Reliance Fresh, Aditya Birla More and RPG Group’s Spencer’s Retail started expanding into smaller formats few years only to shut dozens of such outlets and shift focus to big-box stores or hypermarkets.

     

    For instance, Mukesh Ambani-owned Reliance Retail has decided not to expand its 2,000-sq ft Reliance Fresh stores in the neighbourhood and instead focus on 7,000-9,000 sq ft Reliance Super stores. Future Group, the country’s top retailer, has invited kirana store owners and local entrepreneurs to operate its small format KB’s Fair Price stores. “The economics of operating a neighbourhood store is very complicated as real estate and catchment areas in urban areas is pretty complex,” Rakesh Biyani, joint managing director at Future Group, said.

     

    The group plans to scale up from 200-odd stores now to 1,000 in the next two years. Others, too, now plan to return to this market, with some caution. Spencer’s Retail, which was forced to shut over 64 small-format stores in the last three years, had indicated to remodel its existing 105 stores and future ones on the lines of the kiranas and global convenience stores like 7-Eleven.

     

    Similarly Aditya Birla Retail, which has shut more than 100 stores in the last two years, plans to open 100 supermarkets this fiscal.

     

    Source:The Economic Times

    Copyright © 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • Tata Starbucks appoints Manmeet Vohra as Director – Marketing and Category as Sushant Dash takes charge as Global Brand Director of Tata Global Beverages

    Starbucks appoints Manmeet Vohra as Director-Marketing and Category

    By A Correspondent

     

    Tata Starbucks Limited, the 50/50 joint venture between Starbucks Coffee Company and Tata Global Beverages Limited announced the appointment of Manmeet Vohra as its new Director – Marketing and Category. In her new role, Ms Vohra will lead all marketing and category aspects for the company in India. Prior to this, she was the Marketing Director at TAG Heuer and brings with her eleven years of extensive marketing experience in the luxury industry.

     

    Sushant Dash, who has been associated with the Tata Group for close to twelve years and joined Tata Starbucks Limited in August 2012, will continue this association in his new role as the Global Brand Director of Tata Global Beverages Limited.

     

    “Sushant has played an integral role in launching Starbucks in India and delivering the Starbucks Experience to Indian consumers. His commitment and contribution to our business has been invaluable and we wish him the very best in his new endeavour,” said Avani Davda, CEO, Tata Starbucks Limited. “We are extremely pleased to welcome Manmeet to her new role at Tata Starbucks Limited.  Her forward-thinking brand sensibility and cross-channel marketing expertise will continue to push us toward building a strong presence in this dynamic market.”

     

    Commenting on her appointment, Manmeet Vohra said, “This is an exciting time in Starbucks’ journey in India and I am looking forward to bringing my passion for elevating the customer experience to this iconic brand. I am humbled to be a part of Tata Starbucks Limited – a partnership between two strong companies that share common values of responsible business ethics and commitment to community.”

     

  • Launches Lokmat's coffee-table book Business Icons of Aurangabad, which honors 64 eminent Aurangabadkars

    Ratan Tata launches Lokmat tome on Aurangabad icons

    By A Correspondent

     

    It was a proud moment for the business community of Aurangabad when Ratan Tata, Chairman of the Tata Group, lauded their role in the growth and progress of Aurangabad – captured in the coffee-table book Business Icons of Aurangabad, which he unveiled.

     

    Congratulating the business icons of Aurangabad for their proud achievements and prosperity, Mr Tata urged them to “spread this prosperity to the whole country”.

     

    “There are many many people in Aurangabad and in the country who are not as fortunate or lucky as we are. It will thus be a mandate for all us to play a role in spreading the prosperity we enjoy, to others, because a prosperous India will be one whose future will be assured,” Mr Tata said.

     

    Happy with the progress that Aurangabad has made over the years, Mr Tata said: “I remember, as a school student, I used to come to Aurangabad to visit the Ajanta-Ellora caves. There was nothing other than Ajanta-Ellora then in Aurangabad, but today, it is a bustling industrial and tourism city!”

     

    “I wish that in the years to come, Aurangabad would see even better growth, and when Lokmat publishes a new book, it would take many volumes to include the personalities,” Mr Tata added.

     

    Videocon Chairman Venugopal N Dhoot too congratulated the business icons of Aurangabad, saying that it is because of them that Aurangabad has become so prosperous.

     

    Mr Tata unveiled the book – compiled and published by Lokmat Media – in the presence of Guest of Honour Venugopal N Dhoot, Chairman, Videocon, Mr Vijay Darda, MP Rajya Sabha and Chairman Lokmat Media, Mr Rajendra Darda, State Minister for Education, Mr Deven Darda, Director Lokmat Media, and Mr Rishi Darda, Joint MD Lokmat Media.

     

    Also present on the occasion were the business icons honoured in the book, along with several eminent public figures of Aurangabad and Marathwada region.

     

    Mr. Vijay Darda, Rajya Sabha MP and Chairman – Lokmat Media Pvt Ltd, said: “Business Icons of Aurangabad is our salute to the business leaders who have built modern Aurangabad brick by brick. I am grateful to Shri Ratan Tata and Shri Venugopal Dhoot for inspiring these business leaders with their presence here today. It is because of icons like these that this historic city has experienced such phenomenal growth.”

     

    The Business Icons series, introduced by Lokmat to serve as a guide for the future generations of the country, started with the release of Business Icons of Pune, at the hands of Pranab Mukherjee, on November 7, 2011 in Pune.

     

    Rishi Darda, Joint Managing Director – Lokmat Media, revealed that the selection of the business leaders profiled in Business Icons of Aurangabad was made by a distinguished panel of that included social entrepreneurs, presidents of industrial associations, and the senior editorial board of Lokmat.

     

    “Lokmat Media will continue the process of chronicling outstanding economic growth. Nagpur is next on the agenda,” Mr. Darda said

     

    Recognized over the last five decades as a major industrial destination, Aurangabad has been included in the ambitious Delhi-Mumbai Industrial Corridor which is expected to attract major investments. Industrial houses that have created wealth in Aurangabad represent a wide gamut of industry and trade segments such as automobile, education, real estate, white goods, pharma, steel, textiles and agro-products and include such eminent names as Bajaj Auto, Wockhardt, Videocon, Garware, Siemens, Nirlep, SkodaAuto India, RL Steels and many others.

     

    The book, which profiles 64 industrialists who have made major contributions to the spectacular growth story of Aurangabad, is priced at Rs3,000 and will be an immense value-add to any student, researcher or institution of industrial growth in India.

     

  • Starbucks Coffee Co and its Indian joint venture partner Tata Group have plans to open around 40 stores by December

    Starbucks for festive season flag off in Mumbai

    By Arun Kumar & Rasul Bailay

     

    Starbucks Coffee Co and its Indian joint venture partner Tata Group have plans to open around 40 stores by December, half of those in hotels and the rest in high-street malls, a person with the direct knowledge of the plans said.

     

    The person said the 50:50 joint venture, Tata Starbucks, has so far lined up 14 properties in malls and high streets in the New Delhi capital region, Mumbai, Bangalore and Chennai and will make its India debut in September or October from the commercial capital, Mumbai.

     

    The firm will adopt a cluster approach to simultaneously open three to four outlets in each city they initially go to. Mumbai will be followed by the National Capital Region, Bangalore and Chennai. The properties finalised in hotels include the Ambassador and President hotels under the Vivanta by Taj label, a contemporary luxury chain just notch below the super luxury Taj brand of the Tata group.

     

    “We are looking at both Tata properties as well as non-Tata properties and will focus on how we can become part of the local community where we do business,” a Starbucks spokesperson said in an e-mail reply. The alliance is also in talks with non-Tata hotel chains such as Marriott Hotels to open their outlets.

     

    The joint venture will invest Rs100-150 crore this year alone and has a total budget of $100 million (around Rs 550 crore) to invest in India in the next two to three years, the person familiar with the plan said.

     

    He added that the Seattle-based coffee chain – the largest in the world – will manage the business and source many of its staff from the Tata-owned Taj Hotels. All the stores in the initial stage will have a combination of the lounge as well as takeaway facilities, he said.

     

    Starbucks operates more than 17,000 stores in almost 60 countries. The coffee titan has been exploring possibilities to enter India for many years. Earlier it had made an abortive attempt to foray into India before it called off a joint venture involving its Indonesian franchise and Kishore Biyani of the Future Group. In 2007, the joint venture withdrew its foreign investment proposal with the Indian government without citing any reason.

     

    Now, Starbucks is back with a new partner and is bullish on India, a country with one of the lowest rate of coffee per capita consumption in the world.

     

    Local chain Cafe Coffee Day and global chains such as Barista Lavazza, Costa Coffee and Gloria Jeans are among others currently operating around 2,000 outlets in the country.

     

    Industry estimates that the Rs 1,000 crore coffee-through branded outlets sector is growing at an annual rate of 20 per cent. “I don’t see Starbucks as a competition… I see them as a player who will make drinking coffee through outlets a routine business,” said Virag Joshi, chief executive of Devyani International, which operates more than 100 Costa Coffee stores in India.

     

    The company plans to invest Rs400 crore to add 400 more outlets in the next five years. “The market will keep evolving and will keep growing over the years,” he added.

     

    Source: The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

  • Over the last couple of years, India has been seen stamping its presence in the league of global leaders by the strength of its economic power

    Brand India saving grace in time of crisis

    By Namrata Singh & Reeba Zachariah

     

    There’s more to India than just its over-emphasized status of being the most populous democracy in the world. Random economic facts like India being the largest producer of milk, the largest consumer of sugar and spices as also the largest consumer of gold till last year, crop up now and then.

     

    But there have been achievements in the last few years which have put India on the world map. Over the last couple of years, India has been seen stamping its presence in the league of global leaders by the strength of its economic power.

     

    Consider these facts: The Tata Group is the largest manufacturing employer in the UK; Ireland’s richest person — Pallonji Mistry — is an Indian ; Coal India is the single largest coal producer in the world; India is the largest whisky manufacturer in the world and the Taj Group is the largest chain of hotels in Asia.

     

    Despite a generous trickle of negative news, the list of these positives is also getting bigger.

     

    Brand India today is not just about economics. A significant way in which

    India is asserting itself is through its soft power.

     

    According to Bhaskar Chakravorti, senior associate dean of international business & finance, The Fletcher School, Tufts University, this “soft” presence is India’s greatest asset in making sure it counts on the world stage.

     

    Household brand names such as Citigroup, Pepsi and Motorola are associated with an Indian CEO. Clearly, India has moved on from being a nation of snake charmers and appears to be on its way to become an economic power.

     

    Soft power aside, it’s also working its way through innovations. The list includes , Nano, the cheapest car in the world from Tata Motors; Aakash, the cheapest tablet PC in the world, priced at $46; and other cheap tablet PC initiatives by private companies.

     

    However, there are some missing pieces too. “India should surely move forward in the area of innovation where we can capture the value from our intelligent cheap resources from being just a provider of cheap labour. As of today, most companies (Apple, Microsoft, Google, Intel, etc), especially in IT, that generate maximum value from innovation, rely on resources from India and we are clearly not getting the deserved share of the value created,” said Thomas Kuruvilla, MD, Arthur D Little, a consulting firm.

     

    Richard Rekhy, head of advisory practice at KPMG, a global consulting firm, however, believes India has some way to go. “But India, with 100 companies of over a billion dollar market cap, has established its position globally which is why GE set up its first R&D centre outside US in Bangalore. At the same time, Indian banks have only 2 per cent bad loans versus 20 per cent in China,” he said.

     

    In the mid-90 s, on a representation made by Indian exporters, the government had removed the mandatory use of the ‘Made in India’ tag from goods exported. The law still exists on paper. Ostensibly, Indian exporters were embarrassed of using it then. But, today, no one is shying away from using the tag.

     

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

     

  • AIMIA has started managing Taj Group's customer relationships and will soon include other consumer firms of the group to create a unified CRM programme

    Tata group firms to launch common loyalty plan

    By Sagar Malviya

     

    Tata Group’s consumer-centric firms including Taj Hotels, Croma and Westside will soon initiate cross-marketing activities such as promotions and campaigns by sharing customer database and insights.

     

    “What we plan to do is leverage different databases and provide more value to the customers,” says Akash Sahai, managing director, AIMIA India, a joint venture between Tata Capital and Canadian firm AIMIA (formerly Groupe Aeroplan) that will launch a common loyalty card for clients within and outside Tata Group.

     

    “For instance, we are using the database of Taj Hotels to give its customers additional promotions at Tata’s department store Westside,” he says. “Similarly, consumers could use Tata Capital card at Westside and Croma for added benefits and finance schemes.” Most Tata Group companies have been working together in legal, real estate sourcing and IT services among other administrative work, but the conglomerate so far did not have a common customer relationship management (CRM) programme for its half a dozen consumer-centric companies spanning retail, consumer goods, hospitality, financial services and telecom segments.

     

    AIMIA has started managing Taj Group’s customer relationships and will soon include other consumer firms of the group to create a unified CRM programme.

     

    Customer service is clearly emerging as a differentiator for consumer-centric companies as competition increases and consumers become more empowered.

     

    Several global multi-partner loyalty operators have set their sights on the Indian market, valued roughly around $1 billion.

     

    While Tatas roped in AIMIA last year, another Canadian firm, LoyaltyOne, has acquired a stake in local firm Directions. Kishore Biyani’s Future Group, the country’s largest retailer, is partnering German loyalty management firm Payback.

     

    Penetration of loyalty cards in India is just 42% of organized retail consumers with an average of 2.8 cards for each person compared to 74% penetration at an average of 3.8 cards for each consumer in the US.

     

    LoyaltyOne Chief Marketing Officer Rathin Lahiri says loyalty programmes will help marketers leverage consumer insights for developing customised programs. “That will not just impact the way that consumers respond to their brands, but also in the long term will shape their buying patterns,” he says.

     

    AIMIA will launch its multi-party loyalty card later this year. Apart from Tata Group firms, it is in talks with several non-competing brands in the aviation, petrol retailing and financial services space to launch a loyalty card to be used across companies.

     

     

    Source:The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

  • Rediffusion and Edelman announce strategic alliance to form an SBU to service Tata group business

    Rediffusion subcontracts Tata work to SBU with Edelman

    By A Correspondent
    We told you so. Rediffusion-Y&R and Edelman India announced a strategic alliance to take care of the Tata group business that starts today, November 1.

    The alliance brings together ad agency Rediffusion and PR firm Edelman. Edelman India is an independent public relations (as against others like Hanmer, Genesis and Sampark being part of international networks). The alliance will involve the formation of a separate business unit within Edelman to operate as Rediffusion/Edelman. Note: the SBU is part of Edelman. So, for all practical purposes, the Tatas have awarded the PR contract to Rediffusion which in turn has let it out to Rediffusion/Edelman. A spokesperson clarified that although the unit has been set up for the Tata account, in future it could also take on other businesses. A la Vaishnavi, which started out with the Tatas and took on other accounts.

    “The complexity of the Indian market favours an integrated communications approach that needs to seamlessly combine multiple marketing disciplines,” said Arun Nanda, Chairman and Managing Director, Rediffusion-Y&R in a communique. “Our partnership with Edelman allows us to partner one of the world’s finest PR companies and offer our clients the best in class thinking and capability in this area. This will enhance our already existing offerings in Advertising, Direct Marketing through Rediffusion/Wunderman, Media through TME/MPG and Digital. We will be able to add greater value to our clients across all of their marketing and communications requirements.

    “We believe this alliance will further enable us to push the boundaries of how PR is practised in India today” said Robert Holdheim, Managing Director, Edelman India in the statement. “We are seeing a significant shift in strategic stakeholder communications. An integrated marketing approach is crucial in addressing today’s communications challenges.”

    The spokesperson from Edelman was tightlipped about the staffing and who would be incharge of the SBU. It will evolve, he told MxMIndia.