Nirma to de-list for flexibility

         Detergent manufacturer-turned-retail operator, Ahmedabad based Nirma, has decided to de-list its shares from Bombay Stock Exchange and National Stock Exchange. 

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The move is expected to give the management of Nirma, which started with soaps and detergents before diversifying into chemicals,cement ,retail and real estate greater flexibility in operations . The company said in a statement that it will acquire 3.63 crore of its shares not held by promoters, at an offer price of Rs 235 each, a premium of 19 per cent on the average price for the last 26 weeks.

The Board of Directors gave the nod for the proposal on Saturday.

"The promoters believe the profile of the business of the company is likely to further change towards entering into select early stage and capital intensive businesses and the nature and risk profile of these businesses may not be easily understood by and appropriate for non-promoter investors," the company announcement said.

"Such new businesses may also have long gestation periods which are normally not acceptable to public market investors." the company said in the statement. "Therefore, the company is of the view that the next phase of the company's life cycle can be better managed as an unlisted company."

The promoters hold 77.17 per cent of the paid up equity share capital of the company.

Shares of Nirma closed at Rs 224.5, up 3.6 per cent, on Bombay Stock Exchange on Friday 

FMCG brands increase online ad expenditure

   FMCG companies significantly increased their online adspend in the first half of 2010, accounting for £240m of the £2bn spent on the medium between January and June. 
   
    Brands in the sector, which have not significantly invested in the platform in the past, now account for 11.8% of UK online adspend, up from 9.4% last year, according to research from the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).

Marketers invested almost £2bn online between January and June this year, equating to a 10% increase on the same period in 2009.

Online now accounts for 24.3% of total UK advertising expenditure.

• The 10% year-on-year growth rate is a marked improvement on the 4.6% increase recorded in the first half of 2009, when the recession was in full swing.

•   In the first half of 2010, search marketing accounted for £1.2bn, or 60%, of the total spent on online advertising.
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• Paid-search grew by 8.9%, while spending on display ads increased by 6.4% to £381m. The majority of the latter was devoted to embedded formats such as banner ads.

• The total spent on digital advertising by FMCG brands was surpassed only by the expenditure of the media, entertainment and finance sectors.

• Media and entertainment brands contributed 14.4% of total spending online, compared with 13.2% for the same period last year.
• Finance brands, meanwhile, lowered their online adspend and accounted for 13.3% of the total, compared with 14.9% for the first half of last year.
• Jon Ingall, managing director, AIS, said: "Display advertising is getting smarter and, because it can be priced and tailored live, it is now a far more powerful tool than it used to be."
• He cited recent campaigns by Old Spice and Marmite as evidence of established brands directing their advertising online in an attempt to attract new audiences.
• Brands spent £20.7m on pre- and post-roll video advertising in the first half on 2010, an 82% rise on the same period last year. This form of advertising is predicted to continue to grow, if web-based TV initiatives such as YouView and Google TV lure adspend.

• Guy Phillipson, chief executive of the IAB, said: "FMCG brands have taken time to understand the evolution of online advertising, but they are now engaging with the relevant platforms.

• "It was tough for advertisers last year, but they have learned a lot and, now that advertising budgets have returned, it is good to see double-digit growth in online adspend, ahead of overall advertising."