Ravi Kishan to endorse four FMCG giants

          Ravi Kishan, started his 'filmi career' in Bollywood with the Kajol-starrer filmUdhar Ki Zindagi. Since then, he has done a number of films in Bollywood over the years, but it was the Bhojpuri film industry where Ravi became not just a star, but a superstar! 

         Well, even in mainstream Hindi films, he has done movies that have earned him his place under the Bollywood sun. And now it seems that Ravi is all set to give the Bollywood brand ambassadors a run for their money, as he has been chosen as the brand ambassador for not just one, but four FMCG giants! The brands which have signed him as the brand ambassador include Dabur Chyawanprash, Airtel, Parle Monaco and Marico Thanda Tel. 
         This man surely seems to have all the 'Luck' in the world. We are sure that Ravi Kishan will surely agree with us! 

 

Analyst View: Accumulate Marico: Angel Broking

Angel Broking has suggested Accumulate Call for FMCG major Marico. The company has a market capital of Rs 7988 crore. With a 52-week high of Rs 136, the stock is trading near its yearly highs.

Angel Broking has given the volume growth in hair oil and cooking oil as a major driving factor for the strong future growth at Marico.

The coconut oil brand of Marico, Parachute is expected to grow at 7-8% in terms of volume. As the price has been strong in the recent times, the company is expected to register better margins. 

Marico Gets Hold Of Health Care Brand ‘Ingwe

    Marico Ltd has announced that it has got hold of healthcare brand named 'Ingwe' from South Africa's Guideline Trading.  However, the country's fast moving consumer goods and personal care major has not revealed the sum of investment involved in the acquirement.

Over-the-counter healthcare brand Ingwe has a revenue of Rs 150 million and its array of products consists of immuno boosters. 

 Marico, which possesses hair and health care brands like Caivil, Black Chic and Hercules, forayed into the South African market in the year 2007.

        In a statement, John Mason, managing director, Marico, South Africa, stated, "Ingwe complements the Hercules range. I am confident this acquisition will strengthen our distribution reach and step up our growth momentum." 

     This is Marico's second purchase in the South African market and the seventh internationally since 2005.

As per the company's declaration, Marico's South African business registered a 34% increase during the last financial year (2009-10), with the total biz size being `63.8 crore. 

Sensex marginally up; auto up, FMCG down

    Indian equities opened flat to positive on Thursday, in view of September F&O expiry and ahead of the . The indices dipped briefly due to negative pressure from Asian markets. 
     Leading the gainers were auto shares, followed by metals, power, and healthcare. Losers were from the FMCG and oil & gas space. 

     “Today, the Indian markets could open flat to marginally up and trade in a range ahead of derivatives expiry. 20,100 on the Sensex is a crucial level to breach for further upsides. FMCG, Metals and Oil & Gas stocks could underperform today,” said HDFC Securities 

Tata-Pepsi JV to first focus on affordable packaged water

      The proposed joint venture between Tata Global Beverages (TGB) and PepsiCo, announced this April to develop beverages in the health and wellness space, is likely to begin with developing affordable water.

     Discussions are on, say sources, on the possibility of pricing a one-litre bottle of water below Rs 10, perhaps even around Rs 5. The joint venture may also offer fortified water and low-priced beverages in the earth and wellness space to attract health-conscious customers.   

        The joint venture, say persons in the know, will not develop products related to tea, as PepsiCo already has a tie-up with Unilever on tea beverages across the globe. It is expected to cover areas other than India, too.

           The Indian packaged water market is already worth Rs 1,500 crore to Rs 2,000 crore and constitutes 15-20 per cent of the overall packaged beverage industry, which sees around Rs 12,000 crore of annual sales. The water market is growing at around 20 per cent yearly, but margins are very low, as many companies do heavy discounting in the retail market. The market is divided into two distinct segments, institutional and retail. 

FMCG cos focus on special products for wider rural penetration

In a bid to penetrate deeper into the rural areas, FMCG giants, including Britannia, GSKCH and Nestle are developing specialised nutrient-enriched products to cater to malnourished population. 

"Many people in India lack key nutrients like iron, iodine and Vitamin A...and fortification of food will help in overcoming this problem. It is our clear vision that we want to develop fortified affordable products for Indian consumers," Nestle Global Head (R&D) Klaus Zimmermann said. 


"We have developed an energy snack, which is highly fortified with iron, required to give to those children who are highly deficient in iron," Britannia Industries Managing Director Vinita Bali said. 

Britannia has tied up with the Tamil Nadu and Pondicherry governments to supply these biscuits as part of various mid- day meal programmes in the region. 

FMCG cos hire in small towns to fire up growth

• Small towns are emerging as the new big hiring zones, as consumer goods companies drive deep into the country. Companies are hiring field staff in areas like Kalpa in Himachal Pradesh, Mangaliya in Madhya Pradesh, Kota in Rajasthan and Shirdi in Maharashtra to sell products as diverse as shampoos, edible oil and even pizzas.
• The triggers are a combination of a good monsoon this year, farm-loan waivers, higher disposable incomes in rural India, media penetration, low-priced unit packs of 5 and 10 and government programmes like the Mahatma Gandhi National Rural Employment Guarantee Scheme.
• Consumer goods giant Hindustan Unilever is hiring 25,000 ‘shaktimaans,’ or sales and field staff, to sell its products in nearly 1.5 lakh villages, while Dabur India intends to hire 200 ‘feet on street’ and indirect employees through its stockists in villages and small towns.
• “Our share of top line from semi-urban and rural markets is touching almost 50%. Naturally, we are looking at these consumers very closely,” says Dabur’s vice president-HR V Krishnan.